Trump administration takes aim at leakers

This is a rush transcript from "The Five," July 26, 2017. This copy may not be in its final form and may be updated.

JESSE WATTERS, CO-HOST: Hello, everybody. I am Jesse Watters along with Lisa Boothe, Juan Williams, Dana Perino and Tom Shillue. It is 9 o'clock in New York City and this is "The Five."

There is a new multipronged effort to crack down on leaks in Washington. The man tasks with plugging those drips from the White House is coming up on "Hannity" in an hour. Here is a preview clip from Sean's interview with new Communications Director Anthony Scaramucci:


ANTHONY SCARAMUCCI, WHITE HOUSE COMMUNICATIONS DIRECTOR: Some people think that we're naive and what I've said, I'm going to get rid of leaks. I know I am in a cesspool called Washington or a swamp called Washington. So, it will be virtually impossible to get rid of every leak but I think we can take dramatic steps to get rid of leaks.

Now, one of the big problems here that I'm discovering in the Comms Team is that senior people, or really the guys doing the leaking and they ask junior people to leak for them. And so, I am very proud to be reporting directly to the President, so that I can medically seal off the Comms Team from this sort of nonsense.


WATTERS: America's top law enforcement officer Jeff Sessions is also on leak patrol. The AG is expected to announce several criminal leaks investigations very soon. Government leaks of frustrated President Trump immensely through his six months in office. In recent days, he has publicly put pressure on Sessions to get tougher on leaks and other matters.

Newt Gingrich cautions the President against firing him as the Attorney General but does think there needs to be major reform at the DOJ.


NEWT GINGRICH, FORMER SPEAKER OF THE HOUSE: I think the President has every right to be very, very upset. I think that from his perspective, and it happens to be my perspective also, the Justice Department has elements of it that are out of control, that are corrupt, that are very left-wing.


WATTERS: Well, let's start with the leaks first, Dana. Scaramucci says something fascinating to me, that actual communication's guys were telling that junior communication staffers to leak on their behalf. That's nuts.

DANA PERINO, CO-HOST: Okay. But that's actually not what I heard him say just there. What he was saying is that he reports directly to the President.


PERINO: In my experience, all assistance to the President report directly to the President and you coordinates through the chief of staff. So, I don't actually think that that's new unless the current chief of staff was trying to change that when Scaramucci was coming in. That's possible.

Second, what I heard him say is that he is glad that now he can protect the communication staff, and especially those junior staffers from people who were trying to get them to leak on their behalf. To me, that's what he was saying is that, that was coming from outside of the communications jobs. So that he's trying to once, to get some solidarity with his communications team which sounds good. But that sounds pretty juicy.


PERINO: I cannot imagine that actually happening. In my experience, It's like trying to think that if Josh Bolten tried to tell my assistant press secretary without my knowing to leak something in particular about what had just happened in the Oval Office, it is inconceivable.

WATTERS: So, you would take the fall if it hit the fan. That's a bullying tactic. You're not supposed to do that for a junior staffer, I think.

PERINO: Well, absolutely. Especially if he's doing an investigation and he is finding out that these junior staffers are telling them, well, look, I didn't want to leak that but they told me my job was on the line if I did it, I mean, that's just astounding.

WATTERS: Force leaks. Unbelievable. Jeff Sessions also now looking at some of these leaks and he had a list put together by our brain room here at FOX News, all of these National Security leaks. I put that in quotes, I just -- my liberal aunt one time when I told her FOX News has a brain room, she said, that must be a pretty small room, Jesse --


WATTERS: They don't know what the brain room is. It's a great room. But there's so many -- the phone calls Trump made with the head of state. Oval Office conversations he had with the Russians. Flints called the ambassador. The name of the Manchester bombing suspect. I mean, the list goes on and on. Do you think Sessions is going to be able to achieve any results with these leaks investigations?



WILLIAMS: And also, you know, I've been a White House reporter. I know how leaks work. This is not how leaks work. It's not that somebody is putting pressure on a junior guy to go leak, people leak because they have a garage, they have an agenda. They want to get attention. They want float trial balloons. And in this case, there are so many different factions within the Trump White House that everybody is trying to look out for themselves.

And just the dynamic that Dana described to you where most people would come and coordinate through the chief of staff to get to the President, which you hear from Scaramucci -- which struck me in his statement was, he is going directly to the President. So, he's going, he's bypassing Reince Priebus. Not good news, Mr. Priebus.

WATTERS: You're right.

PERINO: Can I just say something? I do think that there's a distinction here between what Jeff Sessions is looking into and what White House Communications Director Anthony Scaramucci is talking about. The criminal leaks, when you're talking about these National Security issues --


PERINO: That actually, you might be able to track those down and you might be able to do something with those. The leaks are about sort of intrigue within the White House and gossip, like that kinds of leaks?


PERINO: That's not something that Jeff Sessions should even bother looking into but they should try to stop at the White House.

LISA BOOTHE, GUEST CO-HOST: And the National Security leaks are really what is the most concerning here. Because not only do they obviously undermine the Trump administration but they undermine our National Security as well. We saw this play out when the U.K. temporarily paused intelligence sharing with the United States over the Manchester bombing incident and the leaks of that information.

And look, Secretary Kelly said back in April that we are facing terror threats as high as 9/11. So, at a time we are facing such great threats, why would we want to undermine intelligence sharing with our allies that could potentially keep America safe? So, of course, it's an important issue. The Attorney General absolutely should be going after this and trying to find leakers and punish them as well.

WILLIAMS: Maybe we should and visit Donald Trump, who is talking about some of our sources and spy work over in Israel.

WATTERS: Is that what happened, Juan? I missed that leak.


PERINO: That's not on your list.


WATTERS: Well, you are a Democrat president, you are fighting one war, you're fighting war against the Republicans. A Republican president has to fight the Democrats and also has to fight the media. Now, President Trump has a three-pronged war. The media, the Democrats, and people within his own government who are leaking to hurt him. I mean, that's a lot of work this guy's got.

TOM SHILLUE, GUEST CO-HOST: Exactly. I like how Scaramucci described himself as a front stabber.


WATTERS: Not a back stabber.

SHILLUE: He stabs in the front. Trump is a front stabber too. He lashed on you but you know when he's angry with you. You know when he is upset. Obviously we see what he's doing with Sessions. He never hides, you know, behind anything.


SHILLUE: And I think that people appreciate Trump because they are all front stabbers. You know, they don't mind if you stab them but they want to see who is stabbing them. So, the front stabbers, they might be obnoxious.


SHILLUE: But the back staffers, those are the leakers.

BOOTHE: And at least you see it coming.

SHILLUE: Well, it's true. I mean, that is the thing. One, you said there are many factions in the White House. What are there besides anti-Trump and pro-Trump? Those are the only two I can count.


PERINO: Well, I think that these leaks, well --

WILLIAMS: Go ahead, Dana.

PERINO: I just do think there is a distinction between the ones that are actually trying to undermine the President and his policies or to disrupt something in regards of the National Security like the ones Jesse asked the brain room he's talked about. And then there are others that just make the White House look chaotic. And that's actually coming from inside the White House.

SHILLUE: What is their interest, the chaotic ones?

PERINO: Well, it's just contrary to my experience. But let's just say that, you know, reporters call everybody in the White House, there is something in playbook today, political playbook that said, if Scaramucci believes that these leaks are coming from the Communications Department, he's got another thing coming to him. That's not where they're getting illegal from.

BOOTHE: The intrigue story is that even leaks on the personnel level also hurts the Trump administration because it creates this atmosphere. One, it's chaos and destruction internally within the White House and it also changes voters perspective as well about what the White House looks like. Feeling like, maybe it's not operational. Feeling like --

PERINO: I think voters are blowing that off.

BOOTHE: But also even with Republicans on Capitol Hill as well. It could also happen. Republicans feeling that this White House is not --

WILLIAMS: Right. So, just to wrap up, I want to get two points in. And one is, to save you Tom, you have someone let's say, who wants more influence with the President. And you have a division let's say, between this ban, this is all hypothetical, I'm not saying this is real. But let's say, between a Bannon and a Kushner wing of the party, in terms of their political views. And the impact on policy being decided by the President, you can imagine that if they lose out or they are not getting heard, they are going to the press.

SHILLUE: Well, Bannon is a front stabber.

WATTERS: You know, I'm going to go on the record. I am a front stabber and a back stabber as we both at the same time. Other big news in Washington today, a vote on an amendment to repeal ObamaCare without a replacement failed in the Senate. Seven Republicans joined all Democrats earlier in a 45-55 vote, defeating the plan. So, I just want to read the names of the Republican senators who voted against repealing ObamaCare.

Susan Collins in Maine, Shelley Moore Capito in West Virginia, John McCain Arizona, Rob Portman Ohio, Lamar Alexander Tennessee, Lisa Murkowski Alaska, and Dean Heller of Nevada. I just want to make sure that the audience knows who these people were. Dana, how do we look on health care?

PERINO: I still think that something will pass.


PERINO: They're calling this new rendition of it as a skinny repeal.


PERINO: And like if you're a woman, oh, that sounds --


PERINO: How much is that? Now, I understand that ten governors have just come out with a letter right before we came to air that says, skinnier repeal that is not for us. But I do think that they will be able to get something out of the Senate that will allow them to get the conference. I think about these seven senators that you just read their names about their decision and Peggy Noonan on Saturday on her Wall Street column said something very interesting about how when you are on the ground and in your own state, you are looking at the topography of the politics and that in the last eight years, with President Obama, lots of things changed.

And that people have more anxieties and they don't expect change in Washington to be good for them. And so, I think what we end up with now is that there's really not a strong Republican Party of smaller government. Its variations on the team of bigger government and how government should actually work. And that is disconcerting to a lot of conservatives who think that we should just taken this opportunity to repeal it and move on. That's obviously not going to happen here but I think what they're doing is reacting to their constituents.

WATTERS: And they are. Because some of these states that we name as senators, these are states that are very independent minded states, like in Maine or something like that or West Virginia, Nevada. These states really hang in the balance around election time. So, these aren't really hard- core Republican states.

BOOTHE: I agree with them but I also think there's an element of cowardice and hypocrisy here as well. Because a lot of these senators --

WATTERS: You don't say! And the Republican Party? You don't say.

BOOTHE: Well, a lot of these senators took votes obviously when the bill would not go anywhere, they knew it was going to reach the President's desk when President Obama was in office and now when we actually do have both bodies of Congress, we have the White House, we can actually enact, well, on a party line basis mind you for the reconciliation process to make changes to ObamaCare and attempt to repeal it. And now they suddenly don't have the courage because it's real.


BOOTHE: Because these changes are actually going to be implemented. So, if you're there constituency, I would be pretty darn angry considering the fact that, you know, they lied to you for seven years.

WILLIAMS: Well, clear the children from the room. Close their ears.

BOOTHE: I said darn?

WILLIAMS: Hypocrisy by Republicans.


WILLIAMS: I never heard it.

WATTERS: Yes. They learn that from you guys, Juan.

BOOTHE: You should know well --

WILLIAMS: But I will say this. On the skinny repeal that Dana was talking about, because they've lost now three votes, they just keep losing votes to try to repeal. And the key point is, that they have not come up with something that's better than ObamaCare, something that ensures more people that lessons premiums and they are coming down now to this skinny repeal idea which is, do away with the individual mandate, do away with the corporate mandate for companies with more than 50 employees. Do away with the tax on medical devices.


WILLIAMS: So, what happens? Oh, according to the CBO, you lose 15 million people, 15 lose their insurance. Premiums up 20 percent. Is that better for America?

WATTERS: No one wants that premiums.

SHILLUE: Yes. You lose the 15 million, most of those people, they lose it because they drop it. They don't want it. When you lose that mandate, that's when you lose the millions of people. So, I want the skinny. I'm going to call it the life style lift.


PERINO: Can I say one thing?


PERINO: One thing that's actually working in favor of Republicans that's being done by Democrats. Steve Daines is going to force a vote and Democrats will have to decide about single-payer health care and then they will be on the record supporting --

WATTERS: Brilliant idea.

PERINO: -- single payer healthcare.

WILLIAMS: I think that's a good idea.

PERINO: And I actually think that while he's trying to help Democrats, he's actually helping Republicans.

WILLIAMS: By the way, the most interesting thing today was, so you had President Trump tweeting that Lisa Murkowski, the senator from Alaska let down the country and calling it shameful. Murkowski fired back and said, you know what, every day is not about elections. How about governing the country? Wow.

PERINO: She's a front stabber.

WATTERS: Yes. Lisa could almost get to primary if he keeps that up. So, new twist in the arrest in an aide of a former DNC Chair Debbie Wasserman Schultz, up next.


PERINO: Follow-up now on a story we mentioned last night, it was my "one more thing," actually. There are new developments on the arrest of an aide to former DNC Chair Debbie Wasserman Schultz. He was mad trying to flee the country.

Chief Washington correspondent James Rosen joins us now with the latest. James?

JAMES ROSEN, FOX NEWS CHIEF WASHINGTON CORRESPONDENT: Dana, good evening. A lawyer for Imran Awan, the former IT aide to top House Democrats who was arrested this week before boarding a flight to Qatar is disputing it's false. A Daily Caller story alleging that the FBI seized smashed hard drives from one of Awan's rental properties.

Attorney Chris Gowen also told FOX News that his client seen here with former President Clinton had received a green light to travel abroad from the U.S. attorney's office weeks before. FBI officers, U.S. Capitol police and costumes and border agents swooped down on Awan at Dallas Airport Monday night. Awan was arraigned on and pleaded not guilty to one count of bank fraud charges steaming from home lawn applications seemingly unrelated to the $4 million, an IT work that he and several members of his family performed for leading House Democrats.

"The attacks on Mr. Awan and his family began as part of a frenzy of anti- Muslim bigotry in the literal heart of our democracy, the House of Representatives." A statement issued by Awan's attorneys this afternoon adding, "Now we have the Justice Department showing up with a complaint about disclosures on a modest real estate matter. We are confident" -- "the lawyers concluded -- "that Mr. Awan will soon be able to clear his name and get on with his life," unquote. A hearing is set for next month in federal district court here in Washington -- Dana.

PERINO: Thank you, James. Okay. So, this story has got a lot of threads. And all the threads seem a little vulnerable to falling apart. So, Jesse, you have a House staffer, the former DNC chair. He is wiring money to Pakistan. And he is attempting to flee there. Why is this not a bigger news story?

WATTERS: Because he is a Democrat who works for a Democrat. Big surprise. Listen, when you register, Juan as a Democrat, is there mandatory course on how to destroy evidence?


Because Lois Lerner, she shreds evidence and Hillary bleaches her hard rive --

WILLIAMS: Oh, yes.

WATTERS: This guy smashing hard drives with hammers.

PERINO: Hillary seemed too.

WATTERS: I mean, what is with these people? And I don't like also how these guy plays the victim card saying this is an anti-Muslim jihad here. Democrats want to keep religion out of everything all the time. But then when they use it, they only use it when they want to beat the rat. This guy is innocent until he is proven guilty in the court of law. In understand it but it looks so bad. Especially when you're trying to flee the country. Now, imagine if a Trump staffer was fleeing the country --

PERINO: For Russia?

WATTERS: For Russia, smashing hard drives. And come on, this would be national news.

PERINO: And get this one, and he initially got in trouble back in February. He had been working, he and his whole family working for Democrats doing I.T. stuff. They all, most of the Democrats, Debbie Wasserman Schultz basically cut ties with him in February. And he was on her payroll until Tuesday, the morning after he was arrested. What is that all about?

WILLIAMS: I think she's been very defensive of him. I am not understanding why except to say that what we know about this story is that the head of the Republican National Committee Ronna Romney McDaniel has been pushing this and saying in fact that this deserves more attention because it's potentially a national security issue that Awan had access to Congressional files over the computer and may have been shipping them off to Pakistan or wherever. And she wants to know more about that.

PERINO: In fact, Juan, if you don't mind pausing this for a second because we have that sound and we'll get Lisa's take.


RONNA ROMNEY MCDANIEL, RNC CHAIRWOMAN: Debbie Wasserman Schultz has obstructed at every level something that affects potentially our National Security. And we also need to know why the DNC never turned over their hard drives to the FBI to review it as to their hacking.


PERINO: Lisa, what do you think?

BOOTHE: Well, of course we should be getting to the bottom of this. And Debbie Wasserman Schultz has been obstructing this. She is on camera out of hearing trying to strong-arm the Capitol Police chief into giving her computer back. And there are big questions about this. Because apparently there were data that was transferred to a site server. This guy had access to emails and files of dozens of members of Congress as well as the password to the iPad that Debbie Wasserman Schultz used for the Democratic National Committee business before she resigned as its head in July, 2016.

So, what information were there? What information did Debbie Wasserman Schultz want to get back? We should know. But look, this guy is following the same playbook of Jane Sanders who currently is under FBI investigation for bank fraud. She blamed that investigation on sexism. This guy is blaming it on Islamophobia.


BOOTHE: He put out a statement saying that it's the same ultra-right pizza gate media, anti-Muslim bigotry that is looking into this. As I mentioned, Jane Sanders blaming it on sexism as opposed to, maybe you did something wrong here.

PERINO: Yes. You are the most common sensical of all of us.

WATTERS: Really?

SHILLUE: Look, this is a family values story. I mean, this family, they really know how to work it. Imran, $2 million from the federal government? Avid (ph), 1.5 million in federal pay. Hina (ph), 1 million. Jamal --

PERINO: Between the years of 2003 and now.

SHILLUE: Well, it's plenty of money. Jamal had a yearly salary of $160. I mean, I could enroll my daughters in some I.T. class because this is the way to clean up.


PERINO: Well, that is true. Actually we need more I.T. people.


WILLIAMS: Well, let me just say that when the FBI stopped this man at Dallas airport, they did not arrest him on any National Security charge. It was allegedly for bank fraud that they took out a loan on, that they said for their primary residence in fact, it was for a rental property. The lawyer representing him now says, well, that may be just a placeholder and they do have subsequent charges but so far --

PERINO: Well, that's usually how it works.

BOOTHE: Yes. I can guarantee they didn't arrest him because they were Islamophobic.

WATTERS: I know.

PERINO: That I can assure you.


PERINO: I would agree with that. All right. We're going to move on. There's a big new jobs announcement from President Trump today at the White House, we will tell you all about it when "The Five" returns.


WILLIAMS: President Trump promised on the campaign trail, he would create more jobs for Americans. Today, he proudly announced Foxconn, one of the world's biggest electronics manufacturer has agreed to build a new plant in Southeastern Wisconsin.


DONALD TRUMP, PRESIDENT OF THE UNITED STATES: This is a great day for American workers and manufacturer and for everyone who believes in the concept and the label made in the USA.


Chairman Gou put his faith and confidence in the future of the American economy. In other words, if I didn't get elected, he definitely would not be spending $10 billion.



WATTERS: So, Tom, what we see here is the President saying, I am delivering on my pledge, the critics are saying, big money is going to Foxconn and they made promises before about moving jobs to the U.S. and not kept the pledge. But there's big money going to Foxconn. Three billion dollars in the state of Wisconsin in addition to other tax incentives and the like. What do you make of this?

SHILLUE: Well, the real surprise is look at what block we are in. The see block. There should be number one. And it's Trump's fault that it's not number one on page one because he's talking about Jeff Sessions and he is tweeting about the military. It should have been Foxconn day. He should have told those senators, take the day off. This is stealing jobs from China day in America.

PERINO: You'd be a good Conn's person.

SHILLUE: Exactly. And Anthony Scaramucci is talking about stabbing people from the front.


I'm like, it's Foxconn day in America. It's everything he promised. Wisconsin, which he never stops talking about --

BOOTHE: Good thing you can't reach me.

SHILLUE: Exactly. I'm like a threat. The thing is that it's got everything. You know I am thinking like when he builds the wall, that is going to be buried on page three because --

WILLIAMS: Yes. That was a good point. That was interesting. Dana, when you think about Trump delivering on the promise to bring jobs, the question is, is this a victory or is this more of what we have seen more of before which is like carrier, keeping a thousand jobs and then six months later, they are laying off 632. Caterpillar, shutting down after promising, they are shutting down here and moving to Mexico, the steelmaker, CTF electronics, even Ford is still moving their focus operations to Mexico.

PERINO: Well as a free market conservative, I think those companies should be able to make those decisions. But if President Trump is going to roll out the red carpet like he did today for these guys and shine a light on this, then he should continue to hold their feet to the fire and make sure they follow through on that. It is true that Foxconn has made promises before and those plans did not get billed, but this is all being done in Paul Ryan's district, the town of Janesville and some really good news for Foxconn there. They are some great employees. These guys want to work and because the government has been thinking about this ahead of time, there has already been some worker retraining being done. So this plant apparently won't open until 2020. That means that there is plenty of time to try to get as many workers as possible in that area that they can higher, up to speed, so they can ask to do those jobs.

WILLIAMS: Jesse, do you view with this as a victory in terms of Foxconn, supplies Apple and a lot of those big manufacturers -- those jobs have not been in the United States. They had been leaving United States. The contrary argument is that you heard is that, the government is giving away billions in order to get them to establish factories here.

WATTERS: They are not giving away billions. They are creating tax incentives so they don't have to pay a lot of taxes so they can slaughter it on waste. Trump is making blue states great again, Juan.

WILLIAMS: That is true.

WATTERS: I think it's going to be enacted in 2020, the year Trump will win the election.


This salaries, they are not Obama era, burger flipper salary. These are $54,000 a year salaries, this high tech manufacturing. It's everything that people have been talking about wanting to do. Keeping jobs in America is President Trump's core message or one of them, to help him win reelection and I think sometimes these swing state blue state voters that may be lean Democrat a little bit, come election day, maybe they will think Trump is obnoxious and his style is a little annoying into his twitter is out of control -- Russia is crazy but he delivers results that help my family put food on the table and send my kids to college, I think that is going to be the key to his reelection.

BOOTHE: It is going to be the key to his election and announcing just from a purely political lens, 13,000 jobs in a state like Wisconsin that a Republican hasn't won since 1984 the President Trump was able to deliver, that does help it. He did have a strong message to manufacturers in this country. To those workers, that worker base, he was going to help them and get the help that they needed. That was the message and we have signs of optimism, the national association of manufacturers, and a 20 year high in terms of optimism. The most optimism we have seen since July 2007, we saw job growth exceed expectations in July. I think 220,000 jobs -- there are reasons to be optimistic now. If you can just deliver when working with congress on things like tax reform and health care, then I do think he has a strong message for the voters in 2020, particularly in regards to the economy.

WILLIAMS: that would be a strong message with the question that Jesse raised of politics - it is not just about politics or is it really about delivering? It is like to the coal miners, we are going to bring her job back. It's just not realistic.

WATTERS: They just opened a coal mine in Pennsylvania, Juan. What's sad about coal mining? It's sad when you see automation and you see the cheaper sources of energy supplanting our need for coal and here come the President, who is playing on people saying oh, yeah, you will have your jobs back.

WILLIAMS: That is not going to happen.

WATTERS: That is like playing on people's fears that is helping people get work.

WILLIAMS: If it's that, I will bless it. But I don't see that. Why is Rush Limbaugh criticizing Republicans? We will tell you when "The Five" returns.



BOOTHE: last week, Rush Limbaugh went on a terror against the GOP establishment, accusing some Republicans of a silent coup against Trump. Russia's so mad, unleashing more of his fury.


RUSH LIMBAUGH, RADIO TALK SHOW HOST: What Trump is talking about here, why aren't these Republican committees, why aren't these Republican investigators -- why isn't my Attorney General looking into Hillary Clinton's crimes? If we are going to investigate what went on with Russia, how in the world you leave the Democrats out of it and how do you leave Hillary Clinton out of it? The Republicans run the show. It's time for the Republicans to start acting like it. Politics is what it is. The Republicans don't appear to want to play the game.


BOOTHE: Dana, he also talked about Republicans squandering the majority with things like Obamacare. Clearly Republicans can get Obamacare repeal and tax reform done on a reconciliation party line basis. If they don't get these done, are they going to squander the majority?

PERINO: It could be very difficult because it's unlikely, well I actually think the Republicans will be able to keep majority in both house and senate come next year, because I think the senate, that the Republican could pick up a couple of seats there, but still, short of 60, the question is on regular order could they actually do it? At the show they are able to govern. I think one of the reasons that initially at least that the committee did not go after the Hillary Clinton and the Attorney General than is President Trump upon himself upon winning election, when he did his first interview said I don't plan to hurt her.

I think she is gone through enough. He is very magnanimous and everybody thought that was so Presidential. To go back now, maybe it's possible and there is some talk that Bob Mueller's investigation is also bleeding into what the Democrats may have done, and if that happens, basically everyone would say everyone does it and they are dirty or maybe they'd find nothing at all. But I do think if you step back from those investigations, that is most important one. This is the best opportunity to get tax reform so you can get more Foxconn, but actually Americans owned companies wanting to expand in America, but the tax reform piece is the most important thing and it's got to put all their weight behind in September.

BOOTHE: Jesse, did President Trump make a mistake then by saying I'm not going to go after Hillary and I am going to alone? Should Republicans try to move forward on the investigations?

WATTERS: He said that during the transition so that was before all this Russia hysteria. Now I think you can play the Clinton card. What always happens in Washington is Democrats they overreach and then Republicans always seem to under deliver. Right now, Democrats right now want to basically throw Trump in jail. And Republicans won't even look into the Clinton foundation. The Democrats socialize the health care system and Republicans can't even repeal and replace. The Democrats open the border wide open and their people in the house that won't even fund the border wall.

So, right now, I think what you see is Democrats treat politics like life and death and Republicans treat it like a parlor game. At the Democrats will smear and destroy evidence. They will criminalize your behavior. And Republicans will run away from a headline in "the Washington Post" because they are afraid of bad press. They need to stick to our guns. Voters put Republicans in control of the government for a reason. And they want to have the Republican Party to deliver. If they don't deliver, what are they good for? He has a quarterback in Donald Trump. He is got a great arm. He throws a long ball. If you don't have anybody blocking it for him in the house and senate, the guy will get stacked all day. You can't move the football that is what we have here.

BOOTHE: Nicely done.

WATTERS: Did you understand that?

PERINO: I followed the entire thing.

BOOTHE: Dana, it was going through her mind.

PERINO: Also I appreciate the season appropriate sports analogies. You can't do hockey in July. The preseason starts this weekend.

BOOTHE: Juan, is there an element of hypocrisy here? Democrats are talking about obstruction of justice. We know that Loretta Lynch instructed James Comey to call the investigation, the Hillary Clinton Investigation, a matter of opposed investigation, try to downplay it. Apparently we don't know this but allegedly, Loretta Lynch told the Clinton campaign that she wasn't going to go after --

WILLIAMS: That is not true.

BOOTHE: that was being reported. We don't know yet. Allegedly, allegedly, what we do know is -- as they are not an element of hypocrisy here?

WILLIAMS: It's so curious to hear Rush Limbaugh say this, because I think he is talking to Republicans. He is not talking to Democrats. He is talking to Republicans about how Republicans are behaving. I see this in the editorial pages and specifically "The Wall Street Journal," they say this thing about going after Hillary Clinton reminds them of behavior that is practiced in Turkey or the Philippines. This is like third world banana republic stuff. It's just not normal for "The Washington Post" for a country like ours that the custom to the rule of law, you don't go after your political opponent. The decision was made that on Hillary Clinton by the FBI that there is no basis for a prosecution. Nonetheless, we have people saying oh, Democrats don't know how to behave.

BOOTHE: Not necessarily that she did anything wrong. Tom, what do you think?

SHILLUE: When I was in third grade I asked a girl to go see "Star Wars" with me and she said yes and I didn't know what to do. I didn't plan on her saying yes. Do you get that analogy?


WATTERS: It is like the Obamacare repeal.

SHILLUE: They ask for the voters to elect him and now they don't know what to do. There are so used to opposition, they don't know how to govern and be mean. They do have to go after the Democrats but they don't know how to do it. They are like me eighth grade.

WILLIAMS: What happened, did you take her?

SHILLUE: I didn't know if I should take her on my bike. I met her at the movies. I don't think that was a classy move, but I learned.

PERINO: Eighth grade, I think you are allowed to meet at the movies.

SHILLUE: Yes we did.

WATTERS: Be original.

BOOTHE: Rolling Stone taking on President Trump with a provocative new cover that we will show you next.


SHILLUE: "Rolling Stone" magazine is at it again, now setting their sights on President Trump. At their most recent cover features a photo of Canadian Prime Minister Justin Trudeau and asked the question "why can't he be our President?" it was also rolling stone that glamorized the Boston bomber on one of their covers.

BOOTHE: We do more advertising for rolling stone.

SHILLUE: I was going to ask Dana, is this how they get in the headlines?

PERINO: I think in this particular case, they like Justin Trudeau because he is cool and they like a cool President. They liked Obama because he was cool and has a great summer playlist and believes that climate change is the most dangerous thing that we have against humanity.

SHILLUE: He snowboards.

PERINO: It's a matter of style. If you had the same policies as President Trump, they would probably still like him. But he is cool.

SHILLUE: It is style over substance. Lisa, listen to this, his hair is a color found in nature. These are my favorite quotes. Trudeau has a tattoo of a raven inside planet earth.

BOOTHE: He does have great hair and he is handsome, but that is where his good qualifications stop. But I will tell you why he is not going to be President, article two section one, clause five of the constitution. He is not a natural born citizen nor has he been a resident of the United States for 14 years. So that is why. This is the same publication as you mentioned that put the Boston bombers on the front page and also brought us a race hoax as well. Justin Trudeau was horrible, because not only to be seen recently with the pay out to a terrorist at $10.5 million and an embarrassing formal apology and a stupid statement about somehow he is creating a moral society and you have to be a moral society even when things are unpopular. He is also a prolific panderer. We saw him with the rainbow socks for gay pride. Being a feminist on the daily basis, things like being a feminist is wrong. I don't want to be right, things like that, so I'm not a fan of him by any means.

SHILLUE: Jesse, are you finally going to unsubscribe for this publication.

WATTERS: I told you that in confidence, Shillue. Rolling Stone, they are fake news before CNN, I am surprised they are still in circulation after this guys sued the fence off them. You know, if they like him, I say move the operation to Canada. We won't really miss rolling stone.

PERINO: We will take Foxconn.

SHILLUE: They are fake news but they are cool fake news. Juan.

WILLIAMS: That is so cool. I think this is anti-Trump article. That is what it comes down to. Basically he is so cool and so rational, a centrist as opposed to Trump. One of the interesting things about this is even in the Trump White House they have called on Trudeau to lobby for President Trump. Remember?

PERINO: And it worked.

WILLIAMS: His aides got Trudeau to call and say don't pull back, let's talk about it and reopen negotiations and apparently Trump was impressed. When you get the idea about this article, now Trudeau is the adult in the room. I think it's a putdown Trump article. That is what it is about.

PERINO: Aren't they all?

SHILLUE: "One more thing" is up next, everybody.


WATTERS: Time now for "One more thing." Juan Williams.

WILLIAMS: Guys, check this out. Its dramatic video caught by the coast guard, a scary moment yesterday when a fishing boat capsized in freezing Alaskan waters, one great hero saved the day. The boat was fishing off the coast when it took on water while being towed to shore then it suddenly flipped, throwing the crew into the dangerous seas. That is when the Captain Christian noticed one of his crew missing. Half hour later, he spotted the man floating unresponsive. Dove into rescue him through the six feet frigid waves, got his friend to a rescue boat. Put him in there and then performed CPR, saving his life. He later said later he lost his twin brother to the sea and he wasn't going to lose his friend. Greater love hath no man than this, that he would lay down his life for his friend. Wow.

PERINO: Amazing.

WATTERS: Amazing video, Dana.

PERINO: Jesse, I'm over here.


PERINO: I wrote a little thing today, sharing some experiences and tips from one female White House secretary to another, but it really is meant as advice for any woman trying to make it in her chosen career path. You can check it out. Good advice in here, Jesse, you might even benefit from some of this advice.


WILLIAMS: Oh my god, hey, I am supposed insult Jesse.


WATTERS: Take your turn. Here is mine, the daily show put together a hilarious video. I want to show it to you. It's the real reason that Scaramucci was hired by Donald Trump.





WATTERS: Perfect. They do to get some work. All right, Lisa.

BOOTHE: I don't have anything funny but I do have good news. Majority Steve Scalise is discharge from the hospital after nearly six weeks. As everyone knows, he sustained a single rifle wound in his left hip with an attempted assassination of Republican members in congress as well as staffers. Thank goodness he is ok. He still has a journey with the inpatient rehabilitation facility. But this is after a month of multiple surgeries. Thank goodness he is doing all right, praying for him and his recovery. Apparently he is in good spirits and looking for return of return to work once his rehabilitation is almost complete. Looking forward to seeing him on the House floor, I think Republicans meet him with the votes right now. Hopefully he gets back to work.

WILLIAMS: He called in the other day for the conference. I mean, he is tough.

BOOTHE: What a tough guy.

SHILLUE: John McCain, you know coming back, amazing to me.

WATTERS: Tom Shillue.

SHILLUE: This is a story are proud men in blue. They jump into action when there was an illegal break-in in Lakewood Colorado. Take a look at this.



PERINO: Oh, dear.


SHILLUE: A little fun. Nice catch, right?

PERINO: He is like wait, I can't. He still has his spots.

SHILLUE: Took it out -- those legs, they are tough, right? He still could be dangerous.

PERINO: And I worked on Capitol Hill, the first congressman that I worked for, his district was in Lakewood, Colorado.


PERINO: What a small world.

WILLIAMS: You got to be careful.

WATTERS: Can we just back-up for a second and rewind what Dana just said. A deer walks into the room and Dana said Oh, dear. Everybody laughs and says what? She didn't even get the joke that she made. All right DVR, never miss an episode of "The Five." "Hannity" is up next.

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