REWARD-00
Luxury Hotel Chains Around the World; State Department Admits Deliberate
Edit Regarding Iran Nuclear Deal; Latest on Clinton Email Investigation;
FDA Issues Guidelines for Salt Content in Packaged Foods and Restaurants;
Venmo App Examined - Part 1>
Heath Manning, Howard Krongard, Zane Tankel, Howard Krongard, Roberto
Costales, Bo Dietl, Pablo Rodriguez>
Policies; Technology; Politics; State Department; National Security;
Hillary Clinton>
(BEGIN VIDEO CLIP)
HILLARY CLINTON, (D) U.S. PRESIDENTIAL CANDIDATE: He is not just unprepared, he is temperamentally unfit.
(APPLAUSE)
This is not someone whoever have the nuclear codes. He believes we can treat the U.S. economy like one of his casinos and default on our debt to the rest of the world. We cannot put the security of our children and grandchildren in Donald Trump's hands.
(END VIDEO CLIP)
DEIRDRE BOLTON, RISK & REWARD SHOW HOST: Hillary Clinton taking on Donald Trump, on foreign policy, as House Speaker Paul Ryan says he will vote for Donald Trump.
This is Risk & Reward. I'm Deirdre Bolton.
Speaker Ryan tweeting this, "Just as Hillary Clinton finishing her address. I will be voting for real Donald Trump this fall. I'm confident he will help turn around the house GOP's agenda into laws."
Speaker Ryan's chief communications advisor followed up on that tweet saying, "We can call it an endorsement."
So, we're going to bring you more on that in just a minute. But first on foreign policy. Donald Trump says Hillary Clinton is not qualified to be commander-in-chief.
(BEGIN VIDEO CLIP)
DONALD TRUMP, (R) U.S. PRESIDENTIAL CANDIDATE: She's not qualified because she has bad judgment. Now who said that? Bernie Sanders said it about Hillary. She is not qualified. She's one of the worst Secretaries of State in the history of our country. Now she wants to be our president.
Look, I'll be honest, she has no natural talents to be president. This is not a president. Hillary Clinton, who lies, I mean she lies! You remember that, I started that, she lies! She lies.
She made a speech and she is making another one tomorrow, and they sent me a copy of the speech. And it was such lies about my foreign policy. These are crooked people. These are crooked people. They've been crooked from the beginning.
(END VIDEO CLIP)
BOLTON: Well, Hillary Clinton was speaking, Trump tweeted out, "Bad performance by crooked Hillary Clinton, reading poorly from the teleprompter, she doesn't even look presidential."
Trump's foreign policy advisor Walid Phares is with me now. Walid. Welcome back. Always glad to have you.
WALID PHARES, TRUMP FOREIGN POLICY ADVISER: Thank you.
BOLTON: I want to ask you in a general election, let's assume it's Hillary Clinton versus Donald Trump, you are a foreign policy expert. Both want independent voters. Who made the better case today?
PHARES: Well, look, Secretary Clinton engaged in a massive psychological, quote, unquote, "criticism of Donald Trump." She tried what is known as tantrum mudding. He did this, he did that. He said this, he said that. Don't trust him.
The problem here is that we're not talking about two persons who equally had the chance to govern. We're talking about an opposition leader that, Mr. Trump who is making statements and also delivering foreign policy speeches and a Secretary of State who, for four years who had made decisions on real issues, she talks about Mr. Trump saying, he can't make decisions of these issues, yet, she made those decisions in Libya, in Syria, and Iraq, in Yemen and many other places.
I think Mr. Trump during his debate with her he is going to actually describe what's happening as his response to her personal attacks.
BOLTON: So she says, speaking of which, that Donald Trump is temper mentally unfit to be president and I think the implication was commander- in-chief. She has spoken about him potentially in that role as a loose cannon.
You are working closely with him on foreign policy. What would you tell us for people who are not in the room with him, when you discuss foreign policy strategy with him?
PHARES: That's a great question, Deirdre, because the advisors and the briefers work with him. And I'm talking about many, many months, leading to him becoming the presumptive nominee. You know how many briefings he got, you know how many former generals and people who had been in the real world spoke with him?
Did he ever unleash that information in public? Look at her speech. She was talking about the security arrangement on those ships between Japan and South Korea. She is using the actual information she has been briefed on and she will do more.
So, in times of, you know, controlling yourself, controlling the information that you have, the evidence is here.
BOLTON: So, do you think, Walid, because there are many people who admire Donald Trump's spirit. He is a fighter. People say that's what America needs again. But is he a good listener, two experts on foreign policy such as yourself?
PHARES: Look, we cannot speak, we as advisors, because they're committed not to say anything about our internal operation, but ask anybody who worked with him or who briefed with him on some of the outside and in terms of how many questions he asks? How many times he asks about the alternative of the matter.
He actually asked or asks while he is meeting with people from outside of the campaign as experts, as he sitting in the Oval Office. Of course he need that information, the input is coming from agencies, and when you have that input, what would you do with it?
For example, Madam Clinton received inputs on Libya, what did she do with it, she received inputs on Syria. What did she do with it? So, it's not that you receive the information, what are you going to do with it.
BOLTON: It's an excellent point, Walid. As always we thank you for joining us. I know you called into join us especially, and we appreciate it.
PHARES: Thank you so much.
BOLTON: Walid Phares, with me there. He is Donald Trump's senior foreign policy adviser. Well, Trump did give details on his donations to veterans earlier this week, and as part of that press conference, he gave the microphone to a retired marine sergeant. Here is the sergeant's comment.
(BEGIN VIDEO CLIP)
AL BARDASARO, VETERAN: Stop using veterans as political pawns. You got a guy outside McCoy, go do a Google search on his Facebook. He's out there, his picture's with the Clintons. They are using veterans as political pawns, it must stop.
Donald Trump is doing this from the heart. You're all focused on the way he's raising money, and you're not looking at the 22 veterans that are killing each other every day. You're not concerned about the thousands of veterans that are on wait lists.
Look at his plan on this Trump's web site, he talks about medical cards, he talks about fixing the V.A., he talks about competition. I think the liberal media and I'd been dealing with you a long time, you need to get your head out of the butt, focus on the real issues.
(END VIDEO CLIP)
BOLTON: Sergeant Al Baldasaro is with me now. Sergeant, welcome, we are very glad to have you. I should mention you are a state representative. As a veteran, someone who has been on the front lines, why is Donald Trump your choice for commander-in-chief?
BALDASARO: Well, first of all, I want you to know I'm not just somebody who went to desert storm. I'm a father who sent their son to war. I would never, like I said on TV, I would never put my name on anybody unless I had 100 percent confidence that they are prepared to take on and look out for the veterans because my son is one of them.
And that's why Donald Trump is the real deal. He looked me in the eye, he listened to all the veterans that I brought when I first met him. He tells it like it is. He holds no punches.
BOLTON: So, he, obviously, has consulted with you about your service and speaks to you about your son's service.
BALDASARO: Yes, not only did he consult me about my service. He came into New Hampshire before he even ran and he wanted to see what was going on with the V.A., what's going with the veterans? So I put a meeting together with his manager and we brought in the VFW, the American Legion, DAV, patriot guy, the one called league, combat veterans patriot guy.
We sat at the table and we talked to him one on one, he listened to everyone with the issue specially in New Hampshire and the veterans throughout the country. And he wants to make a difference.
(CROSSTALK)
BOLTON: So sergeant, for people who say he's full of bluster, you say I know from my personal experience, he's a good listener?
BALDASARO: You know, I served five presidents, five commander-in-chiefs, OK? A couple of them were useless on the military. I know what it is for a good commander-in-chief who will build the military and make damn well sure that they're going to protect my children and everyone else's children to be able to take on the American dream.
He's the real deal. I have confidence in his fidelities and abilities, and his past years of experience, on what he's done for the veteran community to fulfill his promises.
BOLTON: So, Sergeant, we take your advice and your insight because you have been on the front lines, you have a child there now. Here's Hillary Clinton moments ago on her impression of Donald Trump. Here is what she said.
(BEGIN VIDEO CLIP)
CLINTON: He said you've got to give Kim Jong-un credit for taking over North Korea, something he did by murdering everyone he saw as a threat, including his own uncle which Donald described gleefully like he was recapping an action movie.
And he said if he were grading Vladimir Putin as a leader, he'd give him an a. Now I will leave it to the psychiatrist to explain his affection for tyrants.
(END VIDEO CLIP)
BOLTON: So, Sergeant, I don't know if you listened to Hillary Clinton's speech, but we just played a bit now. What do you think of her comments?
BALDASARO: I would give her an f. First of all, I put her in the category with Jane Fonda. She's got blood on her hands on Benghazi, the way she treated the marines when she was in the White House was terrible. She has no respect whatsoever for the military. She's got these paid vets that are going to Columbia University.
I think they're the second most liberal university in the country, going after Trump and saying that of vets. I'm sorry, she's a disgrace and I wish I -- I'm scared of her as commander-in-chief of my son in the military.
And I'm sure many other moms and dads that their children want to stand up for our country should be nervous after what happened with Benghazi. Where was she? Was she sleeping at 3 o'clock in the morning?
BOLTON: Yes. Well, that is an event that certainly haunts her to this day on the campaign trail. Speaking of, which since you are a state representative, I want to ask you, House Speaker Paul Ryan endorsed Donald Trump. Do you think that is a signal of the party, no matter what the differences are, coming together?
BALDASARO: I think it's awesome that he finally came together because more and more republicans around the country that said they could never vote for Trump. When they wake up and they realized they look at Hillary, crooked Hillary, what she would do to this country, how she would destroy the military? Take away Second Amendment. This is a no-brainer.
People see this here, especially a Supreme Court justice could take away our constitutional rights in the flick of a pen? Thank you, Paul Ryan, for doing the right thing.
BOLTON: Sergeant, we thank you very much. Retired sergeant state representative, Al Baldasaro, we thank you very much, sir, and for your service.
BALDASARO: Well, thank you. That's -- I'm a first sergeant, but thank you.
BOLTON: OK. Fox Business is going to have a live coverage of next Tuesday's contests including California primary. Lou Dobbs kicks off coverage at 7 p.m. Eastern Time.
Well, from domestic politics to international ones, a new study reveals the Chinese government is buying luxury hotel chains around the world, especially in the U.S., to improve on its ability to spy.
Fox news chief intelligence correspondent, Catherine Herridge with me now with the details. So, Catherine, we know that President Obama didn't stay at a very well-known traditional hotel here in New York. We assume for fear of spying, but this is now a widespread practice?
CATHERINE HERRIDGE, FOX NEWS CHIEF INTELLIGENCE CORRESPONDENT: Well, that's right, Deirdre. The report warns of massive campaign by the Chinese government to buy up luxury hotels as part of larger strategy to steal business secrets.
(BEGIN VIDEO CLIP)
EVAN ANDERSON, INVNT/IP DIRECTOR OF RESEARCH: The Chinese are responsible for 95 percent of the economic espionage that we see in American firms. So, rather than describe the hotel as certainly compromised, we're calling it a high-security risk. And in the executive...
(END VIDEO CLIP)
HERRIDGE: The research group INVNT/IP has produced this interactive map showing more than 2700 locations. It says are Chinese government owned, controlled or affiliated hotel properties. It comes down to the fear of bugging rooms and eavesdropping.
While there is no definitive evidence of spying in Western hotels, the Chinese military runs its worldwide hacking operation out of a nondescript Shanghai office building. China has a long history of using hotels for economic espionage, and today, experts warned that internet and Wi-Fi services are especially vulnerable.
(BEGIN VIDEO CLIP)
TOM KELLERMANN, STRATEGIC CYBER VENTURES CSO: The second you accept that Wi-Fi connection, all of the transmission of data that you leverage from your device, and many times even the device itself and the information held on it can be accessed by that network.
(END VIDEO CLIP)
HERRIDGE: The risk may not be hypothetical. As you mentioned, the U.S. government broke with decades of tradition last year, and abandoned the Waldorf Astoria in New York for the U.N. general assembly meetings. Astoria came under Chinese leadership. Ask about the decision last year, the White House spokesman offered a vague explanation.
(BEGIN VIDEO CLIP)
JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: There are a range of considerations that influence where the president will stay when he is not at the White House. Those considerations include everything from available space to cost and to security.
(END VIDEO CLIP)
HERRIDGE: Fox News reached out to two of the hotels, the major hotels identified in this research and there was no immediate comment. Though I would add that last year, when the issue first arose, the Waldorf Astoria in New York, so they did not see security issues coming out of the Chinese purchase, Deirdre.
BOLTON: Catherine, thank you so much. Catherine Herridge with us there.
Take a quick look at the markets, S&P 500 highest since November. So, this is the seventh day in a row in the green for the NASDAQ. Its longest winning streak in 16 months. Overall, you had two key groups that supported the gains, health care and telecom stocks.
The State Department is admitting a deliberate edit seen here from an exchange with a Fox News reporter doing a 2013 press briefing on the Iranian nuclear deal.
The former State Department spokesperson involved in that exchange, Jen Psaki, denying knowing anything about it. We'll give you her full statement after this.
(BEGIN VIDEO CLIP)
JAMES KIRBY, STATE DEPARTMENT SPOKESMAN: We learned there was a deliberate request, that this wasn't a technical glitch. This was a deliberate request to excise video. And as I said, and I said it this morning to the staff, I don't find that's been an appropriate step to take.
(END VIDEO CLIP)
BOLTON: First it was called a glitch. The State Department admits eight minutes were deleted from a 2013 briefing video. A question from our colleague James Rosen was removed. Now at the time of that exchange, State Department employee, Jen Psaki said this. "I had no knowledge nor would I have approved of any form of editing or cutting my briefing transcripts on any subject while at the State Department. I believe deeply in providing the press as much information on important issues as possible."
That State Department employee is now the White House communications director. Her colleague, current spokesperson for the State Department, James Kirby made this comment on Fox and Friends about the edit.
(BEGIN VIDEO CLIP)
KIRBY: I want to thank James Rosen, your correspondent for bringing this to my attention. Because if he hadn't a couple of weeks ago, I wouldn't have known. We took it seriously and we did talked to the technician who was on duty that day and who was asked to make this cut, and the call that came into her was actually a call from somebody else passing on a request from another official, and that's why it was too removed.
UNIDENTIFIED FEMALE: Did the editor remember who called her and directed her to do this?
KIRBY: She did not. She did not know who to call.
UNIDENTIFIED FEMALE: Does that mean because she gets these calls all the time? There are too many for her to remember this one in particular?
KIRBY: I don't think that's the case, no.
UNIDENTIFIED FEMALE: So why couldn't she remember? If she remembers deleting it, why doesn't she remember who gave her that direction.
UNIDENTIFIED MALE: There's only a few people that could give that, that have the power to edit out the record.
KIRBY: Look, I was as curious about this as you were. I just can't speak for what she remembered or she didn't remember. All she remembered was that it was a request that was passed on -- the caller was passing on the request from somebody else in my bureau, in the public affairs bureau. And again, we don't find that acceptable.
UNIDENTIFIED MALE: I just imagine that you as an admiral, under your command if someone say I forget, that would ever suffice under you?
KIRBY: Well, listen, I did not specifically get involved in this particular line of questioning.
(END VIDEO CLIP)
BOLTON: My power political panel with me now, conservative review chief political correspondent, Deneen Borelli. Democratic strategist Basil Smikle, and Independent Women's Forum senior policy analyst, Hadley Heath Manning. Welcome to you all.
So, Deneen, those eight minutes were removed by someone, the spokesperson at time says she doesn't remember who asked for that edit, why that edit was requested, but clearly that edit was made. What is your take?
DENEEN BORELLI, CONSERVATIVE REVIEW CORRESPONDENT: Yes, Deirdre, this is more lies, propaganda and spin from President Obama and his administration. Clearly, this was done to cover for President Obama because they did lie about Iran. They lied about Iran...
(CROSSTALK)
BOLTON: Meaning to support from the international community.
BORELLI: Yes, and they manipulated the information to Americans as well saying that they were not in talks with them, when, in fact, they were back in 2012, and this came out to light in 2013, excuse me. But as more lies, more lies on an international level, Benghazi, they lied. National level, Obama they lied about ObamaCare. They lied about all kinds of things that Americans are just really tired of.
BOLTON: I want to pick up on the domestic issues. But, Basil, what is your take on this edit, because it's pretty odd?
BASIL SMIKLE, DEMOCRATIC STRATEGIST: It's odd and I think everyone from the admiral to the former spokesperson has said that it's odd. I don't want to throw in the whole kitchen sink of policy issues that some may claim that the president has lied about.
I obviously disagree, but I think if you have the two people who are currently and formerly responsible for what comes out of that department saying they didn't have knowledge of it, that this should not have happened. I think it may be something that was done that sort of a role...
(CROSSTALK)
BOLTON: Is that too easy, though, Basil? It's kind of like you're on my team.
SMIKLE: Yes.
BOLTON: You know, I do something that's not right, and then I just say, well, another team member said it and that person has another job, so it's over.
SMIKLE: No. Listen, I think they should -- they should be responsibility taken for it, there is no question about it. But I don't think that there was something untoward that came from the highest levels of the administration as have been implied.
BOLTON: So, Hadley, do you think this changed the fate of this nuclear deal which many people see as an administrative mistake?
HADLEY HEATH MANNING, INDEPENDENT WOMEN'S FORUM SENIOR POLICY ANALYST: You know, regardless of how you feel about the Iran deal, you have to be troubled by the series of events within the State Department. It's not just odd that the video footage was edited. It's troubling.
Because in order to have a functional and robust democracy, we need an informed citizenry, and that means the citizenry had to know what kind of information they can trust. And right now public trust of government is at a low, at about 19 percent.
So, this is a bigger issue than the Iran deal. This is an issue of can we trust the institutions that provide us with information that we use to make decisions.
BOLTON: All right. Fair enough. Points to you all. Thank you so much. Hadley Heath Manning, Basil Smikle, and Deneen Borelli. Thank you for your thoughts.
We want to let you know that oil broke its four-day losing streak closing at $50 a barrel. Earlier today, prices were down on word of no deal on production from OPEC, but then prices moved higher after that.
There was word of a drawdown in U.S. crude inventories, so otherwise known as less supply pushes up, which is up rather the prices. At the pump, average price $2.33 a gallon, that is up from where it was a month ago at $2.21.
When we come back, a former State Department top watchdog has debunked Hillary Clinton's main claim in the e-mail investigation. Former George W. Bush State Department inspector general is my guest next.
(BEGIN VIDEO CLIP)
CLINTON: I fully complied with every rule that I was governed by.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
BOLTON: Hillary Clinton has said that previous Secretaries of State had private e-mail servers.
A former State Department watchdog debunks that claim. He is with me now, former State Department inspector general of president George W. Bush, Howard Krongard is with me now. Sir, welcome, we are glad to have you with us. To your knowledge, have other Secretaries of State used private e-mail addresses and or servers?
HOWARD KRONGARD, FORMER STATE DEPARTMENT INSPECTOR GENERAL: Well, no one has used the server prior to Secretary Clinton as the I.G. report pointed out, Secretary Powell on limited occasions did use personal e-mail for some business-related purposes.
Secretary Albright stated that she did not use it. And to my knowledge, while I was present and as the inspector general report stated, Condi Rice did not use e-mail for either personal or government purposes.
BOLTON: So, where is the disconnect? Because Hillary Clinton actually named all of those people as people who set a precedent?
KRONGARD: I've asked that question as well, so I don't have an answer for it.
BOLTON: OK. I was just curious, maybe you had more information than we did.
KRONGARD: Nope, nope.
BOLTON: But a Fox News source says the findings in that report that you just referenced to put increased pressure on the Department of Justice to seek criminal charges. Do you agree with that?
KRONGARD: I'd rather not speculate. I really prefer to try and educate as to what has happened rather than try and speculate about what might happen.
BOLTON: So, what sticks out in that contextual point than in your brain about this situation versus any other?
KRONGARD: I'd say two things. One, I think there's been too much focus on the content of the e-mails and not enough attention to the source of the e- mails. What would trouble me is whether e-mail or other information was taken off classified networks and found its way onto an unclassified private server.
And there are, of course reports, they are only reports, I don't have the firsthand information, that information that was on Sipper net, a classified government system was taken off and placed on an unclassified server. That would be a serious matter.
But even beyond that, there are also reports that information came from what is called J-wicks, perhaps the most sensitive classified government communications system. And if, and I say if because I don't know and it hasn't been reported officially yet that that's the case.
But if information came off of J-wicks, was taken from J-wicks and jumped the so-called gap from a classified system to an unclassified system, that really is a very serious matter.
BOLTON: So, you're saying that to this point, the media has been focused on the wrong issues as far as the granular details go.
KRONGARD: Well, I won't say wrong, and Secretary Clinton continually said that she never sent nor received e-mails that were marked classified. That kind of focused the attention on the content of the messages or the information.
And as I'm saying I would rather see and I'm sure the FBI is paying more attention to where it came from.
BOLTON: All right.
KRONGARD: For example, anything that came off of J-wicks and probably Sipper net as well, by its very nature and location it's going to be classified regardless of what it's marked.
BOLTON: OK. That's a great point. Howard, one last question as far as the fact that some of Hillary Clinton's aides said that at various points in communication, her own server, private server went down and she was offered either the .gov through a different device and said no because she didn't want that to be accessed by the Freedom of Information Act, does that stick out as irregular in your mind?
KRONGARD: Well, it does. But if, not to jump, but one of the things that stands out more in my mind is the refusal to cooperate with the I.G.'s investigation. As an I.G. myself, I would be very disheartened if the head of the federal agency did not cooperate with one of my investigations.
And so, I think that that which comes out of I.G.'s report is an important matter. And there's a lot of technical issues, which I can get into if you like, but that to me does stand out.
BOLTON: Come back, because we would like to get into more detail. In the meantime, you helped us reframe the conversation. Thank you, Howard.
KRONGARD: Thank you.
BOLTON: Howard Krongard, with me there former State Department inspector general.
If you take a look at Amazon's stock, you will see a week of wins. Online retail giant hitting yet another lifetime high today, that makes the third in the row, the sixth one this year.
When we come back, a government crackdown on dinner. The FDA is announcing a list of 150 food categories where restaurants should reduce their salt amount. We have a restaurant owner who says the government should butt out.
(COMMERCIAL BREAK)
BOLTON: The Obama administration is going after salt. The FDA has issue voluntary guidelines aimed at limiting salt content in packaged foods and in restaurants.
So, 150 categories of food are targeted including deli meats, bakery products and pizza.
With me now franchise owner Zane Tankel, he owns more than two dozen Applebee's restaurants. Zane, great to see you. Thanks for coming in.
