Updated

This is a rush transcript from "Watters' World," May 15, 2021. This copy may not be in its final form and may be updated.

JESSE WATTERS, FOX NEWS HOST: Welcome to WATTERS' WORLD. I'm Jesse Watters.

There's blood in the water. That's the subject of tonight's Watters' Words. Biden is politically wounded a hundred days in. He made some terrible decisions or his people made the decisions for him, we don't really know, and the results of these decisions have all begun to hurt the country all at once.

The summer is going to be a mess. So prepare yourself because Biden doesn't have a clue how to fix the problems he created. First, Biden kneecaps the recovery, seven million job openings and only about 250,000 people took a job. April was a disaster. Biden created a labor shortage because he gave workers way too much free money. $500.00 a week unemployment plus a $300.00 bonus is 800 bucks a week, just to stay home; $40,000.00 a year. Your husband or wife can pull that in, too, so that's $80,000.00 a year not to work.

But the President doesn't get it.

(BEGIN VIDEO CLIP)

JOE BIDEN (D), PRESIDENT OF THE UNITED STATES: I know there's been a lot of discussion since Friday -- since Friday's report that people are being paid to stay home rather than go to work. Well, we don't see much evidence of that.

(END VIDEO CLIP)

WATTERS: Of course not. Biden who has never run a business his whole life, then tells small business owners just pay your workers more.

(BEGIN VIDEO CLIP)

BIDEN: We also need to recognize that people will come back to work if they are paid a decent wage.

But my expectation is that as our economy comes back, these companies will provide fair wages and safe work environments. And if they do, they'll find plenty of workers.

(END VIDEO CLIP)

WATTERS: So let me get this straight. A restaurant owner who got shut down all last year, barely survived, should start handing out $20,000.00 raises to busboys? That's crazy. So small business owners need to push the politicians hard to drop this $300.00 bonus. We can't make it profitable not to work or there won't be any businesses left.

Now Biden doesn't understand this supply and demand, which brings us to the next problem he created -- inflation. The Democrats pumped $2 trillion into the economy already this year. They just printed it and they want to print $4 trillion more. That weakens the dollar.

You add the unemployment money and the stimulus checks, there is just too much paper chasing too few goods. That sends prices up which are already up because the recovery jacks up demand. Now, the experts so-called, they didn't see that coming.

(BEGIN VIDEO CLIP)

NEEL KASHKARI, PRESIDENT OF THE FEDERAL RESERVE BANK OF MINNEAPOLIS: Inflation continues to be low. Inflation expectations continue to drift lower.

UNIDENTIFIED FEMALE: Now inflation is still pretty low.

UNIDENTIFIED MALE: There's no inflation.

JANET YELLEN, U.S. TREASURY SECRETARY: I really doubt that we're going to see an inflationary cycle.

(END VIDEO CLIP)

WATTERS: They were wrong. Look at this chart. It shoots right up. Prices are jumping at the fastest pace in 10 years.

Going out to dinner and buying groceries, it's just going to get more expensive. Pork bread, eggs, coffee, car prices are up. So are home prices. Lumber is nuts right now. I'd hold off building that deck this summer. Micro chip prices are surging, so electronics are going to cost more.

So budget for this because prices on everything will keep going higher. The Fed is going to have to raise rates to slow things down and that'll move the market lower to impacts your 401 (k)s.

Inflation is like a hidden tax on Americans and the taxman cometh. But the biggest hidden tax, gas prices. Since Biden's election, prices have gone up a dollar a gallon in some states, 50 cents nationally. Now, some of this is natural as travel in demand pick up after COVID. But Biden's war on oil and gas, killing the Keystone pipeline, banning fracking on Federal land and telling the energy companies they're going to be out of business in 30 years when he gets rid of fossil fuels, that forces companies to raise prices.

Gas prices never hit $3.00 a gallon during Trump's term. But we're hovering around $3.00 a gallon already last week. And that's when the Russians hacked the Colonial Pipeline.

The southeast and Mid-Atlantic got rocked. Stations ran out of fuel. Gas lines around the block like the 70s. Seventeen states declared a state of emergency. Prices went sky high in the region, total mess.

The national average at $3.00 a gallon, the highest since 2014. The last time Biden was in the White House, go figure.

Biden's Secretary of Energy said this about the fuel shortage.

(BEGIN VIDEO CLIP)

JENNIFER GRANHOLM, U.S. SECRETARY OF ENERGY: We obviously are all in on making sure that we meet the President's goals of getting to a hundred percent clean electricity by 2035 and net zero carbon emissions by 2050. And, you know, if you drive an electric car, this would not be affecting you clearly.

(END VIDEO CLIP)

WATTERS: What a fool. It's like a politician saying during a heatwave, well, if everyone just owned a pool, the heat wouldn't be affecting you. Except pools are actually cheaper and more accessible than an electric car.

Only two percent of cars are electric. Most dealerships don't even sell them. They're also expensive and small.

Is she new around here?

Summer driving season starts Memorial Day weekend. So what's her boss, Biden, going to do about the gas prices going even higher? Biden has no plan. So you need to plan on paying an extra $20.00 when you fill up the tank this summer, because it's probably going to $3.50 a gallon.

And what's Biden going to do about the Russians? Russian gangsters operating inside Russia hacked our pipeline with Russian computers. Nothing inside Russia happens without the approval of Putin and the Kremlin, by the way. But you're not going to believe this. Biden says Russia isn't involved.

(BEGIN VIDEO CLIP)

BIDEN: So far, there is no evidence based on from our Intelligence people that Russia is involved, although there is evidence that actors, ransomware is in Russia.

(END VIDEO CLIP)

WATTERS: Wait, are you saying Putin has nothing to do with Russians hacking our pipeline?

(BEGIN VIDEO CLIP)

BIDEN: I am confident that I read the report of the FBI accurately, and they say, they were not. He was not. The government was not.

(END VIDEO CLIP)

WATTERS: Let me see if I have this correctly. The F.B.I. just cleared Putin. Russian organized crime from inside Russia knocked our pipeline out, and in less than a week, the F.B.I. determined the Kremlin was clean. The same F.B.I. that accuses everyone of being a Russian agent, took years to figure out that there was no collusion, and in a week, closed the books on the pipeline hack? Something is not adding up here.

The Russians hacked Hillary's campaign manager and the Democrats kicked every Russian diplomat out of the country. Slapped sanctions on every pallet of Putin and launched a two-year witch hunt just over some embarrassing e-mails. And now the Russians launched the biggest cyberattack in history affecting millions of Americans, but not Hillary, and we just dismiss it? And our pipeline pays Russian hackers five mil in ransom?

Did the President tell Colonial to pay the Russians ransom?

(BEGIN VIDEO CLIP)

QUESTION: For more on the ransom, were you briefed on the fact that the company did pay the ransom?

BIDEN: I have no comment on that. Thank you.

(END VIDEO CLIP)

WATTERS: This is a huge story. But the biggest worry for you is that Biden blinked. We paid ransom money to terrorists, bad precedent. So we're going to get hit again. Electric companies, water treatment, everything is a target.

If you operate in any industry that could be a target, harden your defense, because we're in a cyberwar now whether Biden knows it or not.

A hot war is breaking out between the Israelis and Hamas. Weeks ago, Biden lifted Trump's freeze on Palestinian aid, sent them a quarter billion. Then they bought rockets from Iran and fired them into Israel. It's really that simple.

The Iranians bought the rockets from the Russians and sold them to Hamas to shoot at Israel, just as Biden was working to get the Ayatollah back into the nuke deal. You see what's going on here? Biden is getting manipulated and releasing borders again in the Middle East when he needs to police our own borders. And how's it going down there?

(BEGIN VIDEO CLIP)

JEN PSAKI, WHITE HOUSE PRESS SECRETARY: They have continued to convey the message that our border is not open.

BIDEN: We've now gotten control.

ALEJANDRO MAYORKAS, SECRETARY OF U.S. DEPARTMENT OF HOMELAND SECURITY: The border is closed.

(END VIDEO CLIP)

WATTERS: The border is the big lie. We don't have one. Fresh numbers just released and they're going to make you crazy. Biden shattering records down there.

Look at the chart showing border crossing in green for Biden. The last two months in a row, Biden hit a 20-year high for illegal immigration, averaging nearly 180,000 border crossers a month. And those are the ones we're catching, a lot are getting through. And the ones we do catch, of the 180,000, Biden let nearly half stay here.

More records broken with unaccompanied minors, two straight months of all- time highs. Everybody wants to focus on the minors, though, and that's fine, I get it. But it's just a distraction from the real deal.

The vast majority of illegals crossing are single men. Ladies, calm down.

But let's remember, everyone who crosses is controlled by the cartel. And once they get here, they work off cartel debt. What they do for that, it isn't pretty. Crime goes up.

The whole scene isn't pretty. If you're in a border state, contact your congressman and vote like your life depends on it because it does and don't get distracted by the bait the Press slings at you.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Liz Cheney.

CHRIS CUOMO, CNN ANCHOR: Liz Cheney.

ANDERSON COOPER, CNN HOST: Liz Cheney.

JOY REID, MSNBC HOST: Liz Cheney.

ERIN BURNETT, CNN HOST: Liz Cheney.

ALISYN CAMEROTA, CNN ANCHOR: Liz Cheney.

ANDREA MITCHELL, MSNBC HOST: Liz Cheney.

RACHEL MADDOW, MSNBC HOST: As you know, this has been exhaustively covered. The number three Republican leader in Congress, Liz Cheney today was voted out of that leadership job.

(END VIDEO CLIP)

WATTERS: It's so boring anyway, it's just filler, so they don't have to report how badly Biden mismanaged his honeymoon. Biden knew it wasn't working himself, so he announced masks off on Thursday. Perfect timing, wasn't it?

But he is treading water. So let's review.

Major economic tremors are happening. The recovery could be teetering. Labor shortages and illegal immigration are setting us back.

The cost of living is increasing. Gas prices are going up.

And Biden is being tested internationally and he is failing. He is creating problems instead of solving them, so we're in for a rough summer.

There's good news on the COVID front. But remember to stay safe. Crime will continue to go up in major cities. Protect yourself and your family. Budget for what you need, and plan for a little pain. This is looking like a rocky recovery.

Joining me now for reaction, former Speaker of the House and FOX News contributor, Newt Gingrich.

So Speaker Gingrich, I couldn't believe we got into this much trouble so fast. Do you think Joe Biden has the tools in the toolkit to recognize the problems and fix them?

NEWT GINGRICH, FOX NEWS CHANNEL CONTRIBUTOR: No, if you ask it that way. I think that Biden has very limited capacity to understand and to decide and articulate. I mean, just watch him.

But he is also trapped because the left on almost every one of these issues sees the world in a way that doesn't work. I mean, it's as though somebody came rushing in and said, I've got a great new idea for making hot coffee, we'll put it in the freezer. You could figure out pretty soon, that ain't going to work.

WATTERS: Right.

GINGRICH: So, you take crime, we know that Dinkins and liberals failed. We know that Giuliani succeeded. So what's the answer? Well, the answer when New York has a 200 percent increase in crime in one year, is drop everything Giuliani did that worked, and keep everything that Dinkins and the liberals did that failed. And you have to say, what did they think was going to happen?

I think the pipeline problem is a much deeper problem, in that we just paid $5 million to a criminal organization to recruit more people to rob more places, and hacking is really a threat to our entire civilization because the degree to which we all rely now, on things that are more effective. ATM machines are great. What happens if the Chinese closed them down?

It's terrific to be able to go pump gas, what happens if a Russian hacking group just closes off the gas pumps? You can go through all of these things. There is no evidence that anybody in the Federal government has any real appreciation.

We've done little fixes and bandages and what have you. This is a much deeper crisis.

Great hackers don't work for bureaucracies. And so, we have to rethink our entire approach to the hacking question.

As to the economy. I have to say, this feels more like Jimmy Carter than I would have thought possible, and I think maybe it was the gas lines that were the final breakthrough. When you think about it, you're getting stagflation which is what they called it when Carter was President. That's when you have stagnant jobs and inflation at the same time.

Reagan put that together into a misery index. He added the unemployment number and the inflation number. And the underlying inflation numbers are stunning. At a minimum, the highest rate of inflation since 1982, and at a maximum maybe even higher than that because of the way they keep score.

Now, you said something that's really important I want to build on, and that is, inflation is a hidden tax. The real Biden tax is this inflation, and it is making every American poorer. You're about four percent poorer than you were a year ago, because the dollar doesn't buy as much.

And so when Biden says he is not going to tax anybody under $400,000.00. No, as long as you don't buy gasoline, you don't buy electricity, you don't buy food, you don't pay for a house, and you can go down the list of everything you're paying for, because it's all being inflated. And I think that that's a key part of this.

One last thing, the idiots who think that electric vehicles are a solution to the cost of fuel, forget that at the other end of the line, you have to make the electricity. So you're either going to use coal, which China is doubling down on and building many more coal plants, you're going to use nuclear, you're going to use solar, you're going to use wind, you're going to use oil, you're going to use something.

But it's not like you know, Tesla emerges from heaven and angels drive it around for you. I mean, not only do you have to pay the founder of Tesla, you've got to pay for the electricity every single day.

And I think that that's where you have to wonder, you know, these people -- did the brains all kind of just drip out sometime over the last 20 years? What are we dealing with?

WATTERS: I think we're dealing with people that are irrational and ideological and have a zero connection to the real world.

Newt Gingrich, thank you so much for your insights, that is a lot to chew on.

GINGRICH: Thank you.

WATTERS: And we always appreciate you coming on the show.

GINGRICH: Thank you.

WATTERS: Russia, Russia, Russia. That's what we heard from Democrats for four long years, remember?

But Biden just cleared Russia and Putin in the Colonial Pipeline cyberattack after only a week. They're clear.

Just like I said, the hackers were even paid five million bucks ransom. Now, we're just paying ransom to Russian hackers?

Joining us now to discuss, Stephen Miller, former senior adviser to Donald Trump. When I saw Joe Biden say the F.B.I. cleared the Kremlin, and after we paid the Russian hackers, I imagine your former boss, Donald Trump said, yes, Putin is fine, everyone is fine, you know, we're just going to pay these guys off.

And, now we're going to talk about race in the environment. I mean, you've got to be crazy.

STEPHEN MILLER, FORMER SENIOR ADVISER TO DONALD TRUMP: No, the talking heads in the liberal networks would have literally exploded, the newspapers would have ran with it front page, every single day. Trump administration caves to Putin. Trump administration caves to Russia -- and there would have been a million different conspiracy theories.

But here is I think the most important point: for all the talk about President Trump and Russia, no one was tougher on Russia than President Trump. And the world knows, the world knows that Biden is weak.

And when people know you're weak, that's when they pounce, that's when they attack, that's when they come after you.

This was just the beginning of what will be coming tragically, our way, because people sense that the leader of our country is not a tough person. It's a hard world out there filled with jackals, filled with dangerous people and the guy at the top of the pyramid of our government has to be tough enough to handle them all.

WATTERS: I would have launched a cyber-counterstrike against Rosneft, the Russian oil company, and I would have done it last week and that would have put Putin pals in the corner and they wouldn't have even thought about allowing another hack like that on us.

All right, Stephen Miller --

MILLER: Instead, what's happened, we've paid a ransom.

WATTERS: It is a different world.

MILLER: And when you pay ransom, you get even more of the same.

WATTERS: That's what I said. You're going to see this stepped up all over the country. And it was a bad precedent. We've got to run. Stephen, thank you so much for coming on.

MILLER: Thank you. Thanks.

WATTERS: If you're in the military, or you know anybody in the military, there's something very dangerous going on that we have to warn you about, next.

(COMMERCIAL BREAK)

WATTERS: If you're in the military or have friends or family in the military, we need to look out for this guy. His name is Bishop Garrison and he is in charge of bringing critical race theory into our Armed Forces.

They are calling him the Pentagon's hatchet man because his job is to purge patriots from the ranks. Garrison is now head of Countering Extremism Group. That group is in charge of redefining extremism, could be supporting Trump, the border wall, voter ID, however loosely they want to define it.

Leaked Pentagon documents about the insider threat in the DoD mention a new type of extremism in the military called quote, "patriot extremism."

Bishop Garrison wants the military justice system to deal harshly with whatever this ideology is.

Joining me now Pete Hegseth, "FOX and Friends" weekend co-host.

I would assume we want patriots in the military, Pete. I don't know what patriotism extremism means. What does it mean?

PETE HEGSETH, FOX NEWS CHANNEL HOST: It means you and it means me. This is about, Jesse, as scary as it gets. I mean, really this is -- this truly is a purge of patriots. They're using January 6th as the ultimate justification.

He was hired by the way after January 6th, Bishop Garrison was. This is an extremist 1619 Project/Black Lives Matter sympathizer type guy, and his job is to define extremism, identify ways in which they can vet candidates who may have been extreme, to look for extremism in the ranks. And then even for veterans, they're asking them to screen their fellow vets and report back to The Pentagon. It's beyond the pale. Here's the thing, you're showing the tweet right now --

WATTERS: That's creepy and look at them here, we've actually just shut up a tweet, right? The guy says, if you support Trump, you're a racist. And he's in charge of purging patriots. So Pete, if you have a tattoo, you probably have a thousand tattoos that are probably deemed extremist patriotism.

HEGSETH: Unacceptable.

WATTERS: Could you get knocked out of the military because of a tattoo or something?

HEGSETH: You probably could. One of the symbols that they put in that leaked document is "Come and take it." I have two of those shirts in my closet. You know, I don't have a tattoo yet, but I might get it in honor of Bishop Garrison.

He is saying that you, there's no room for nuance: if you support Trump, you're extreme. And what does that mean about the future of the military? This is the last true meritocracy place for patriotism.

Listen, listen, if you're watching, if you want young Johnny to be a Staff Sergeant someday, hope he didn't click on TikTok that the election was rigged or MAGA because the military might say, no, we can't accept you.

WATTERS: Everyone has to pay attention to this guy. Keep your head on a swivel. I don't think he's up to any good. Obviously, we're not talking about Aryan Nation. We're just talking about patriotism is now on the chopping block.

HEGSETH: That's already illegal. That's already illegal in the military.

WATTERS: According to this guy.

HEGSETH: White supremacy is already illegal.

WATTERS: Right. Exactly. So watch out for this Garrison guy. Thank you, Pete. Please don't get another tattoo. That's enough.

A coronavirus cover-up. WATTERS' WORLD caught Fauci lying to Congress. We will explain next.

(COMMERCIAL BREAK)

JON SCOTT, FOX NEWS CHANNEL ANCHOR: Welcome to 'FOX News Live." I'm Jon Scott. The 146th Preakness Stakes just finished up in Baltimore and underdog, Rombauer is the winner. Medina Spirit came in third, the same horse that won the Kentucky Derby, but failed a post-race drug test. Rombauer came storming down the homestretch and was able to take the lead from Midnight Bourbon and Medina Spirit at the last second.

Colonial Pipeline says its system is back up and running one week after a cyberattack caused it to shut down. But gas stations in several states are still without fuel as drivers eagerly await deliveries.

Colonial Pipeline warning it could take several days for the supply chain to return to normal.

DarkSide, the group blamed for the cyberattack is reportedly shutting down because of pressure from the United States.

I'm Jon Scott. I'll be back tomorrow for an all new "FOX Report" at 6:00 p.m. Eastern. Now back to WATTERS' WORLD.

WATTERS: Senator Rand Paul caught Dr. Fauci in two big lies this week. Now, why is Dr. Fauci lying? It looks like he is involved in a coronavirus cover-up.

Fauci funded the Wuhan labs, possible ground zero for the pandemic. The question is, does Dr. Fauci support manipulating viruses in a lab to make them more deadly to humans? It's called gain-of-function research. We talked about it before. It's done to get ahead of the virus mutation so vaccines can be manufactured.

It is extremely risky, very controversial in the scientific community. Fauci said he doesn't support it.

(BEGIN VIDEO CLIP)

SEN. RAND PAUL (R-KY): Government scientists like yourself who favor gain- of-function research, maintain that this arose naturally.

DR. ANTHONY FAUCI, DIRECTOR, NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES: I don't favor gain-of-function research in China. You are saying things that are not correct.

(END VIDEO CLIP)

WATTERS: But in a paper published in 2012, Fauci admitted he supports it. He wrote: "Scientists working in this field might say, as indeed I have said, that the benefits of such experiments and resulting knowledge outweigh the risks, and the need to stay ahead of such a threat is a primary reason for performing an experiment that might appear to be risky."

There you have it.

Fauci had to know gain-of-function was going on and Wuhan. It has been well-established that it was happening there at the Wuhan Institute of Virology. They've created coronaviruses to infect human cells, and the National Institutes of Health under Dr. Fauci have been giving money to the Wuhan lab for years.

Take a look at what Fauci had to say about that.

(BEGIN VIDEO CLIP)

PAUL: Dr. Fauci, do you still support funding of the N.I.H. funding of the lab in Wuhan?

FAUCI: Senator Paul, with all due respect, you are entirely, entirely and completely incorrect that the N.I.H. has not ever and does not now fund gain-of-function research in the Wuhan Institute.

(END VIDEO CLIP)

WATTERS: All right, so, Fauci insists that the National Institutes of Health has never funded gain-of-function research in the Wuhan Labs. But in the very same hearing, he admitted to funding the lab, but said the funding wasn't intended for gain-of-function. Very lawyerly answer. Here's why.

Fauci's grant to a nonprofit called EcoHealth Alliance. EcoHealth Alliance then hired the Wuhan lab to quote, " ... conduct genetic analysis of bat coronaviruses and examine how they spread to humans."

So Fauci just used a broker to fund it, to keep his hands clean. The President of EcoHealth Alliance, Peter Daszak has been working on these bat viruses.

(BEGIN VIDEO CLIP)

PETER DASZAK, PRESIDENT, ECOHEALTH ALLIANCE: You can manipulate them in the lab pretty easily. It's just -- spike protein drives a lot of what happens with the coronavirus, zoonotic risk --

(END VIDEO CLIP)

WATTERS: Manipulate them in a lab pretty easily. Quote, "Daszak worked with bat lady or Shi Zhengli," a head researcher at the Wuhan Institute of Virology. She harvested bats from caves and China for years, bat lady and actually came to America and was trained by Ralph Baric, a COVID, researcher at the University of North Carolina, who guess what -- was also funded by Fauci.

They manipulated bat viruses to attack other species, including humans and bat lady returned to China with greater knowledge.

So follow along. Fauci sent money to Daszak, who sent it to the bat lady at the Wuhan lab. They're all gain-of-function people. They all play with bats. Fauci money behind all of them, including American training.

The grant proposals actually explained exactly what she was planning to do. And it sounds exactly like gain-of-function research.

According to investigative journalist, Nicholas Wade, who we had on last week, the grants from 2018 and 2019 show that she was going to use the money to create novel coronaviruses with the highest possible infectivity for human cells. They would be used to test the jump of coronavirus from bats to people. There it is.

And the bat lady wrote in a 2017 paper that the work they were doing researching bat coronaviruses was funded by the N.I.A.I.D., part of Fauci's N.I.H.

An M.I.T. biologist, Kevin Esvelt reviewed that paper and found that, quote, " ... certain techniques that the researchers used seemed to meet the definition of gain-of-function." Boom.

So there it is. Fauci may have his fingers all over these risky bad experiments that many people believe led to the death of millions. Yet the media is uninterested in this chain of events. Instead, Fauci celebrated, while Donald Trump is scorned. And that was the narrative from the very beginning of this pandemic, which the media has a vested interest in protecting, which is why the media won't ask Fauci about this, even though he is on TV every single day.

Jeffrey Epstein haunting Bill Gates from the grave, a mysterious e-mail sheds light on their situation. We have it.

(COMMERCIAL BREAK)

WATTERS: One of the wealthiest couples in the world, Bill and Melinda Gates filing for divorce after 25 years of marriage. It could be any number of reasons, none of our business. But we just found out Melinda was concerned about Bill's relationship with Jeffrey Epstein, concerns that dated all the way back to 2013 according to "The Wall Street Journal."

She was even said to be 'haunted," quote-unquote, by her husband's connection to Epstein. According to "The New York Times," Gates and Epstein met on numerous occasions, including three times at Epstein's Manhattan town house.

In 2011, Gates e-mailed colleagues saying this about Jeffrey Epstein, quote: "His lifestyle is very different and kind of intriguing, although, it would not work for me."

In March of 2013, according to a flight manifest, Gates flew on Epstein's plane, as you know, dubbed the Lolita Express from New Jersey to Palm Beach, Florida, a plane designed for mid-air sex.

Two members of Bill Gates's inner circle reportedly had close ties to Epstein and worked as middlemen between the two.

What's suspicious about it is that one of the two, Boris Nikolic, who was running a venture capital firm that Gates invested in was named fallback executor on Epstein's will, just days before he hung himself. Hmm. But Nikolic has declined to serve as executor.

And just this week, we learned Gates had a wild side -- who knew -- "The New York Post" quoting a biographer who said, he would throw nude swimming parties at his Seattle home with local strippers.

So what exactly was the relationship between Bill Gates and Jeffrey Epstein? We reached out to Gates but haven't heard back. The spokesman says he stands by a 2019 statement where he said, "I met him. I didn't have any business relationship or friendship with him."

Joining me now to break down the Gates-Epstein connection is author of "A Convenient Death: The Mysterious Demise of Jeffrey Epstein," Daniel Halper.

All right, so Daniel, what do you make about this new information?

DANIEL HALPER, AUTHOR, "A CONVENIENT DEATH": I mean, it's pretty stunning. Right? The fact that it is coming -- it seems to be coming from the Melinda Gates side of this divorce does seem to give it legs, right.

Obviously, we don't know the sourcing behind these articles, we don't really know. And, you know, what the motivations are behind the sourcing. I think it's also fair to be perfectly clear that there have been no allegations of impropriety alleged against Bill Gates or anything. So we should get that out of the way and be clear on that.

But just the fact that there were close, I think, and the fact that his own wife is alarmed by it really leads to two theories. One is that they had a much closer relationship than we knew. And we knew some of those things that you mentioned at the start of this segment. The other theory, of course, is that maybe Melinda Gates wants to make a bigger deal out of Bill Gates's relationship, or maybe that side and maybe it's all part of sort of divorce proceedings and perhaps divorce negotiations.

So the fact that this will likely go to court or that there will be court proceedings, that there will be perhaps an uglier battle means that maybe, and as far as the Epstein relationship with Bill Gates, maybe, we will get more and more details, already some of the victims of Jeffrey Epstein are calling for more details to be revealed about Bill Gates's relationship with Jeffrey Epstein.

WATTERS: I agree. It looks like Melinda may be using this whatever it was to squeeze Bill in negotiations and as this divorce proceeding goes on, and it doesn't go her way, she could then use information she has -- potentially maybe not -- to muddy things up in the press in order to turn the screws to build, to get a more favorable settlement.

We don't know. This is a little bit of speculation, but it is very interesting that it's all coming out right as the divorce dropped. Daniel, thanks very much. And again, Daniel wrote a great book about Jeffrey Epstein, everybody go take a look at that.

HALPER: Thanks, Jesse.

WATTERS: Up next, how cancel culture killed a left-wing icon, Ellen DeGeneres.

And the Bill de Blasio eating video that oh my god, I wish we could cancel.

(COMMERCIAL BREAK)

WATTERS: Lame duck Mayor Bill de Blasio bribing New Yorkers to get vaxxed with free fast food.

(BEGIN VIDEO CLIP)

MAYOR BILL DE BLASIO (D), NEW YORK CITY: Did you say free fries when you get vaccinated? Some people love hamburgers, some don't. I really want to respect all ways of life. But if this is appealing to you, just think of this when you think of vaccination.

Mmm vaccinations. I'm getting a very good feeling about vaccination right this moment.

(END VIDEO CLIP)

WATTERS: Joining me now, FOX News 24/7 reporter, Carley Shimkus and host of "Parked" on FOX Nation, Abby Hornacek.

First that was disgusting. We apologize to the audience. But Carley, I have a feeling if you were on the fence about vaccines, it would take a little more than fast food to get you to the clinic. I'm thinking maybe shoes --

CARLEY SHIMKUS, FOX NEWS HEADLINES 24/7 REPORTER: Well, now that a million dollars is on the table, what the heck is a burger and fries? But eating -- if you're a politician, eating on camera never works in your favor and Bill de Blasio should know this because he ate pizza with a fork in 2014 and people are still making fun of him to this day.

So food is politician's kryptonite unless you're Joe Biden and then there will be articles written about you titled, literally, this is an article, "All the times Joe Biden's love for ice cream made our hearts melt," so he's getting a pass on the eating thing and many other things as well.

WATTERS: The hearts melt, I see what they did there. Abby, I don't know we're not a bunch of famished peasants, fries and a burger, you've got to give us more. I'm thinking Knicks playoff tickets, at least.

ABBY HORNACEK, FOX NATION HOST: There you go or Six Flags is offering tickets in Illinois, I want that. But I'm just bummed because the lines at Shake Shack are already so long. Now, they are going to even worse, thanks, de Blasio.

But I just want to make a quick comment on what Carley --

WATTERS: Yes, you look like you eat a lot of Shake Shack.

HORNACEK: I actually do, all right. But I do want to mention --

WATTERS: Really?

HORNACEK: I think, Carley, gets me on this because we both had to eat food on live television when we do State Fairs. Oh, gosh. Oh, bring it back.

But there's a technique, you guys, I'm not good at the technique. But I will say, de Blasio said "mmm," before he even finished his bite, you have to taste it first. Really let it sit in there, and then say ''mmm." So just -- and you can start chewing.

SHIMKUS: I need to know that technique. It is so awkward to eat on TV. I know, Jesse, you've done this stuff.

WATTERS: What was that by the way that you took a bite off?

HORNACEK: It was a corn dog. It was a corn dog. Best corn dog I've ever had.

WATTERS: Corn dog. Got-cha.

SHIMKUS: Mmm.

HORNACEK: Yes, Iowa State Fair.

WATTERS: All right, So Ellen DeGeneres got canceled, and then she took some time off and then decided to cancel herself, went into retirement. I guess, people that work for her said it was a toxic work environment. Here is Ellen explaining what happened. Go.

(BEGIN VIDEO CLIP)

ELLEN DEGENERES, TALK SHOW HOST: If it was why I was quitting, I would have not come back this year.

I read in the press that there's a toxic work environment, which I mean, I had no idea. I never saw anything that would even point to that.

QUESTION: Did you feel like you were being cancelled?

DEGENERES: I mean, I really didn't understand it. I still don't understand it. It was too orchestrated. It was too coordinated.

(END VIDEO CLIP)

WATTERS: So I don't know, Carley. I feel like these are just the way workers get back at their boss. This is revenge. You know, you're getting yelled at, you're getting -- you're getting, you know, demoted and then you just say, well, we're toxic and she is cancelled.

SHIMKUS: Okay, well, I actually -- I guess, I sort of agree with you because I don't think this has anything to do with her behavior at all. I think there's been a target on her back ever since she sat next to George W. Bush and then defended their friendship.

And she also faced some criticism for having Kevin Hart on her show after he stepped down from doing the Oscars.

WATTERS: Interesting theory.

SHIMKUS: Yes, so I think that this is sort of slow cancellation --

WATTERS: Yes, I haven't thought about that because she really is a liberal icon.

SHIMKUS: Yes, yes. So, I think it is more political.

WATTERS: She's more a trailblazing lesbian, a liberal, who had it all going on, Abby, and then all of a sudden something switched. Maybe it did have something to do with kind of her, maybe reaching across the aisle as Carley said.

HORNACEK: Maybe, I mean, I guess we'll never know if that's the true reason, but I just think that you do have to be receptive to constructive criticism. Now, if that criticism becomes degrading or sexist or racist by any means, and I don't know if people are really accusing her of being that way. I think a lot of people are talking about the top producers there.

WATTERS: Yes, she was just demanding as successful people are and she -- you know, maybe not the greatest dancer as --

SHIMKUS: Are you talking about yourself, Jesse?

WATTERS: I've seen you two guys dance. I've seen you two guys dance.

SHIMKUS: Let's not bring that up.

HORNACEK: Yes, and so has the Twitter world and they don't like it.

WATTERS: That was not -- I think that -- I think you guys created a toxic work environment when you danced for WATTERS' WORLD.

HORNACEK: I did feel a little bit -- yes.

SHIMKUS: I agree.

HORNACEK: A little bit degraded in that.

WATTERS: And we'll leave it at that, ladies. We don't -- oh, that's a harsh word. That's -- I find that disturbing.

SHIMKUS: You're offended.

WATTERS: Thank you guys, very much.

SHIMKUS: Thank you so much.

HORNACEK: Thank you.

WATTERS: Up next, "Last Call."

(COMMERCIAL BREAK)

WATTERS: Why haven't you guys ordered my book? I know who you are. I know some of you have, but what are you waiting for? "How I Saved the World" coming soon, July 6th, but just go to savetheworldbook.com and you can get an autographed copy.

I'm saying things in this book that I haven't told anybody. These are really, really hilarious stories. And really, really embarrassing stories for me. And because I'm so confident, I shared them with you. Because I want to make you laugh and that's what life is about.

So go order the darn book.

That's all for tonight. Be sure to follow me on Facebook, Instagram and Twitter. "JUSTICE WITH JUDGE JEANINE" is next and remember I'm Watters and this is my world.

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