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MELISSA FRANCIS, AFTER THE BELL SHOW HOST: He tried for everyone.
DAVID ASMAN, AFTER THE BELL SHOW HOST: Yes.
FRANCIS: That does it. Risk & Reward starts now.
DEIRDRE BOLTON, RISK & REWARD SHOW HOST: Donald Trump receiving his first classified intelligence briefing today.
This is Risk & Reward. I'm Deirdre Bolton.
Here is Donald Trump's arrival just moments ago. It is the first in what may be several briefings. So, you're looking at a live shot. This is right outside the FBI building in New York City. We are awaiting his departure.
We will let you know when he does in fact leave the building. But we want to give you some historical context on this process. So, 1952, President Truman started the tradition of providing classified briefings to presidential candidates.
In January of 1945, he was vice president for just 82 days when President Franklin Roosevelt died. President Truman suddenly inherited the presidency in World War II. As vice president he didn't even know that the atomic bomb existed.
So, he put this procedure in place to provide a smooth transition for future presidents. Donald Trump told us that he's not sure that in fact he would be getting solid information. In fact, he told Fox that he doesn't trust the intelligence briefings.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Do you trust intelligence?
DONALD TRUMP, (R) U.S. PRESIDENTIAL CANDIDATE: Not so much from the people that have been doing it for our country. I mean, look what's happened over the last 10 years. Look what's happened over the years. I mean, it's been catastrophic.
And in fact, I won't use some of the people that are setting the standard. You know, just use them, use them, use them. It's very easy to use them but I won't use them because they made such bad decisions.
I mean, you look at Iraq, you look at the Middle East is a total powder keg. It's a -- it would have never touched it. It would have been a lot better. I mean, we would have been much better off on top of which we spent probably $4 trillion.
(END VIDEO CLIP)
BOLTON: Former CIA trained defense intelligence officer, retired lieutenant colonel Tony Shaffer with me now. Colonel, great to see you.
TONY SHAFFER, CIA-TRAINED INTELLIGENCE OPERATIVE: Good to see you, ma'am.
BOLTON: So, what do you think of Donald Trump saying that he doesn't actually trust the information in the briefing?
SHAFFER: I think he is taking very prudent approach to this. Because there's two things recently which indicated the intelligence community is not playing with a full deck.
First, I think very clearly proven by the congressional investigation, the Central Command under General Lloyd Austin and Major General Scott Berrier, the intelligence officer was cooking the books. That's no way to run a war.
(CROSSTALK)
BOLTON: And by that you mean that they were editorializing that the U.S. was doing better in Iraq...
(CROSSTALK)
SHAFFER: That's right.
BOLTON: ... and Libya in Syria against ISIS than in fact we actually were.
SHAFFER: That's right. They were taking what the analyst were saying and manipulating it to say when an analyst said this is we're bad, they're saying, no, no, no, it's not bad, it's really good. And that was -- that's cooking the books.
Secondly, and I'll say it...
(CROSSTALK)
BOLTON: No, I hate to cut you off.
SHAFFER: Yes.
BOLTON: I do want to hear, I just want to say that we have some note that President Obama did not specifically ask for that, but many people with familiarity say the tone set.
SHAFFER: It went...
BOLTON: And then some of the officers felt like this is what people wanted to hear.
SHAFFER: Exactly. And it went to the top of that command. I think it's frankly, that's one of the reasons why General Austin was relieved early. Secondly, going, relating that relationship is James Clapper. James Clapper is completely incompetent to be in the position he is in.
He was part of the scheme of cooking the books. So, while the president did not ask for it, people who President Obama appointed knows what he wants to hear. That's not the way to run intelligence. You have to have people who are steely eyed...
BOLTON: Who will tell you the truth.
SHAFFER: ... willing to tell you the truth whether you want to hear it or not. And I think that's what Donald Trump wants. That's one of the reasons he brought Mike Flynn, with General Flynn, former director of DIA, Mike knows the game.
And I think he will be a good bloodhound to say this is true this is not true. And the bottom line is they don't want to have essentially rehashed New York Times headlines put into a classified environment.
BOLTON: So, people such as yourself who know lieutenant general Mike Flynn think the world of him.
SHAFFER: We do. I do.
BOLTON: Is the fact that he was in the room there today, does that signify that he will have a cabinet position if Trump wins the presidency?
SHAFFER: I can't even speculate. What I can say is the fact that he was an Obama official. He speaks volumes of the fact that he is now coming back and saying look, I think there was some internal problem. I think that frankly that's one of the reasons I think he was relieved as director of DIA.
He stepped down because he could not tell the truth. Remember, he's the first one to tell Congress about ISIS before ISIS was known as a threat. And he went against the administration to do that.
So, I'd like to believe that his clarity of thought and his willingness to speak the truth it will probably result in some high appointment by president -- a president Donald Trump.
BOLTON: Because as you rightly point out that's pretty tough. I mean, people, it's a clich,, right. Speaking truth to power.
SHAFFER: Right.
BOLTON: Not that he didn't have an amazing man of power himself.
SHAFFER: Correct.
BOLTON: But that's a really tough position and it takes a lot of courage.
SHAFFER: It took a lot of courage. And I've known Mike, I've gone through him since for a while and he is one of the most honest intelligence officers I know, and plus, he's one of the most innovative.
We've had several conversations about some of the concepts which need to be implemented in the current war. And let me say this very clear. And Donald Trump said this. We are not fighting to win against ISIS.
We're, you know, President Obama's policy face a containment. Containing them will get you nothing but more terror attacks. So, I think this is another thing that General Flynn is going to bring to the table.
BOLTON: Yes. Unfortunately, they have proven quite good at recruiting.
SHAFFER: They have.
BOLTON: And they don't need to be in a geographical proximity. It's all online all you need to get.
SHAFFER: Correct.
BOLTON: I want to ask you on this theme of classified information.
SHAFFER: Sure.
BOLTON: The FBI gave Congress the notes from its three-hour interview with Hillary Clinton but the notes were heavily redacted. In fact, Representative Jason Chaffetz made this statement, and I'm going to quote him.
"As the chairman of the chief investigative body in the House, it is significant that I can't even read these documents in their entirety, it shows how dangerous it was to have this intelligence highly classified to this day on the former secretary's unsecured personal server where it was vulnerable."
So, as a former military intelligence officer, I'm assuming you agree with the congressman but I wanted a little bit more context.
SHAFFER: It does. First, let me put it in context of if Tony Shaffer had taken on an unclassified server put it in his house, and put all of the information I deal with as an intelligence officer on a daily basis I would be in jail right now. I would be in a lock up.
There's absolutely no way of explaining it away. So, what the FBI do, is doing right now is trying to have its cake and eat it too. They were trying to say, Mrs. Clinton, you were just careless, really you know, you shouldn't been doing that.
But now everything that was discussed in that meeting is now classified. What does that tell you? It tells you that information was always classified. It still sensitive and that's why they're trying not to let it out.
BOLTON: Colonel, when we went through the hearings...
SHAFFER: Right.
BOLTON: ... she was excused by many as saying there's like a teeny tiny C at the bottom of the page for classified that it wasn't read bar, marked confidential do not share at the top. I just -- I like to people who actually have had high clearance what their opinion is.
SHAFFER: I have a high clearance and you know exactly what the content is when you read it. You know when you put someone's name who's in operative in open traffic, that person may end up dead.
And I think this is where there is a complete just lying about what she did or did not know. You know exactly as a high official especially and you can't have it both ways, Deirdre.
You can say I'm just incompetent, I didn't know what I was doing and I wanted to be the president. Well, you did know what you are doing and you purposely are now trying to explain it away and that's what's going on here.
BOLTON: Lieutenant Colonel Tony Shaffer, wonderful to see you here in New York. Thank you for your time.
SHAFFER: All right. Thank you for having me.
BOLTON: Lending us your expertise, lieutenant colonel Tony Shaffer with me there.
Well, shifting gears away from national security matters to the national economy. Earlier today, Hillary Clinton attacked Donald Trump on his economic plan.
(BEGIN VIDEO CLIP)
HILLARY CLINTON, (D) U.S. PRESIDENTIAL CANDIDATE: He wants to give tax cuts to big corporations, millionaires, Wall Street money managers. He has even created a new tax loophole that we call the Trump loophole because it's really good for Trump. It would let millionaires and billionaires cut their tax rate in half
(END VIDEO CLIP)
BOLTON: Trump's economic advisor, Steve Moore is with me now. Steve, thanks for the time.
STEVE MOORE, DONALD TRUMP'S ECONOMIC ADVISOR: Hi, Deirdre.
BOLTON: What you think of Hillary Clinton's comments and we should note she is herself a millionaire, so personally would be affected as well by the Trump tax plan.
MOORE: I would be able to make $250,000 to give a speech.
BOLTON: Yes.
MOORE: I'd be rich, too. Look, we want to -- this is exactly what we want the discussion on for the next two or three months for people to look side- by-side at what Donald Trump has put forward to liberate the economy from this malaise it's been in for, you know, eight or nine years versus what Hillary is talking about.
So, let's address for just a minute what Hillary just talked about. It is true that Donald Trump plan will cut the tax rate on businesses in America, the corporate tax on the small business to 15 percent. That's the heart of our plan.
We believe that is going to generate millions and millions of new jobs. We believe that's going to bring companies back to the United States and Donald Trump said look, we, I don't want this just for Microsoft and General Electric and large corporations although we have to cut our corporate tax as you know. I want to be for some small businesses, too. So, every one...
(CROSSTALK)
BOLTON: Steve, it's a great idea. I mean, he also keeps American companies, right, from wanting to buy companies overseas...
MOORE: Of course.
BOLTON: ... and then move their headquarters so that they can pay 13 to 15 percent...
MOORE: You got it.
BOLTON: ... in Ireland versus 35 percent and then with whatever deductions they can cobble together.
MOORE: You're exactly right. And we've seen this happen week after week, month after month for the last five years. So, great American companies like Burger King, Medtronic, and companies like Pfizer, Walgreen is talking about leaving, that's a crisis. That's a crisis.
When major American companies that are iconic for our country are leaving in the United States as you said going to Ireland.
(CROSSTALK)
BOLTON: Well, on the job creation it was elsewhere too.
MOORE: But our point is we also want the small businesses. You know, we talked to a lot of small business owners said wait, if you are going to cut the tax rates for corporations what about us. And Trump said, yes, we want to be for everybody.
So, if that's the charge that Hillary is making that we have a slow tax on business businesses we are -- we stand guilty of that. We want to do that.
By the way, she wants to raise the small business tax up from 40 percent to almost 46 percent, we're at 15, she's at 46. Which is a better small business done that. We think the peak (Ph) of that rate.
(CROSSTALK)
BOLTON: Well, I think the simplification plan that he's talked about...
MOORE: You got it.
BOLTON: ... I feel like every American citizen is like, thank goodness because it's so painful and the current state to figure out for a lot of people their bracket, they don't necessarily want to hire an accountant.
MOORE: Yes.
BOLTON: Almost everyone has been screaming for simplicity for years.
MOORE: So, we estimate under the plan that we put forward that somewhere between 80 and 90 percent of Americans will no longer have to itemize their deductions. They'll no longer have to, you know, I don't know about you, Deirdre. I've shoeboxes in my closet with the other receipts on this and that. You know, you don't have to put on that anymore.
(CROSSTALK)
BOLTON: Know you road trips Steve Moore. All right.
MOORE: You know, I will be able to burn all of those receipts because you want to -- you'll just take a standard itemized deduction that everybody gets and you're not going to have to have all those, the complexity of keeping all of the itemized deductions.
And again, the heart of the plan is how do we make American businesses more competitive, how do we keep them here, how do we allow them to grow.
You've talked about this on your show that the big problem for so many American companies now is that they are profitable and look what's happening with the stock market. They're making a profit but they're not reinvesting that money in the job producing activities and that's what we want them to do.
(CROSSTALK)
BOLTON: Right. You still lack of confidence.
MOORE: Yes.
BOLTON: Steve Moore, he's lucky to have you, so are we. Thank you, sir.
MOORE: Thank you, Deirdre.
BOLTON: Steve Moore with me there.
MOORE: Take care.
BOLTON: Well, security and economic strength are just two of the themes that will be on voters' minds in November. And polling shows a tight race between Hillary Clinton and Donald Trump.
As the election draws closer there has been a major shakeup in Donald Trump's campaign. So, here are the changes. An executive with Breitbart News has been named campaign chief executive, that is Stephen Bannon. Pollster, Trump's senior advisor, Kellyanne Conway will be campaign manager.
Now here she is earlier today on Cavuto Coast to Coast with a reference to campaign chairman, Paul Manafort.
(BEGIN VIDEO CLIP)
KELLYANNE CONWAY, TRUMP'S CAMPAIGN MANAGER: Paul has the exact same title today he had yesterday and many of these responsibilities. I think what Paul Manafort and Rick gates have done over the last five or so months in building up this campaign has been phenomenal. They took us to a place where we need to be in this homestretch.
But you need to add talent. You need to add more people. It's just a very busy time getting to the last 12 weeks of the campaign.
(END VIDEO CLIP)
BOLTON: For their take, I'm bringing in my political power panel. Democratic strategist, Kelly Grace Gibson, conservative commentator, Tammy Bruce, and GOP strategist, Gianno Caldwell. Welcome to you all.
Tammy, Kellyanne Conway's comments implies expansion and not a demotion at all for Paul Manafort. So, he is still there as campaign chairman. What is your opinion on what is going on behind the scenes.
TAMMY BRUCE, CONSERVATIVE COMMENTATOR: Well, look, this is not as a surprise. Mr. Trump said he indicated that the real campaign for him would begin in late August early September. And suddenly you've got an expansion of the team. Mr. Manafort is not going anywhere. This is obviously added people with titles that no one got fired for them to take.
It's interesting to watch the media look for the scandal or the struggle or this is some kind of problem. You know, look. This is a good sign. He's expanding, you've got ads that are starting on Friday for the campaign.
Hillary spent over $100 million on -- it sounds like an extraordinary number. Is it 100 million? I think it is.
BOLTON: It is.
BRUCE: On ads to elevate herself and to bring down Trump. And they have it budged at all. They are now once again tied. The numbers after the conventions have really collapsed and now once again they are neck and neck.
So, he spent, an outside group spent what, $12 million for him. So, this is what it tells you about the American people. They know that campaign is strong. The media has been trying to tell you it's not.
But this -- but the adding of Mr. Bannon and Kellyanne indicates that he is. Bannon is seen as a street fighter, he's a serious man who will do what it takes to win. Republicans have not seen that way in a very long time. It's a very exciting addition.
BOLTON: Kelly, let me bring you in on one particular point with Kellyyanne Conway. She's been on the show before and she actually told the Trump team you need to be better with women, you need to improve your outreach. Will she be able to help him move the needle in that way?
KELLY GRACE GIBSON, DEMOCRATIC STRATEGIST: Well, I mean, what we know from other polling is that women are gone -- that the amount of women that can vote can win this election this year. So, I mean, let's start by calling them all the same way Ms. Conway not Kellyanne can really reach out.
But I think the bigger thing is that the polls are bigger for Hillary right now. Two swing states come out and she is on the lead. And all of a sudden there's new management on the Trump campaign and he said he doesn't want to change. So, he's finding people that won't change him. And talk about someone who doesn't want to change.
He's flip flopped so much on his policy. He's clearly capable of changing. And he is working stance is...
(CROSSTALK)
BOLTON: Well, I mean, any campaign is dynamic and has to evolve.
GIBSON: Right. But he said on the record he doesn't want to. So, he's finding people that won't make him change and will let him be the extremist he is, which is not going to get the female vote.
BOLTON: All right. Gianno, Hillary Clinton's campaign manager not exactly shy and retiring Robby Mook had a very distinctive take on the shakeup, so here's what he said.
(BEGIN VIDEO CLIP)
ROBBY MOOK, CLINTON CAMPAIGN MANAGER: Donald Trump has decided to double down on his most small, nasty, and divisive instincts by turning his campaign over to someone who is best known for running a so-called new sites that heads all divisive at times racist, anti-Muslim, anti-Semitic conspiracy theories.
(END VIDEO CLIP)
BOLTON: Gianno, what are your thoughts?
GIANNO CALDWELL, REPUBLICAN STRATEGIST: I mean, of course he would say that about Breitbart because they had not -- some of the things that some of these other news networks and publications have done which has praise Hillary Clinton even in spite of her being almost indicted by the FBI, although the FBI director did indict her intelligence character and intelligence I would argue.
I would say in terms of the shakeup, if you would, if you want to even call it that I agree completely with what Tammy said. This was more of an expansion. Hillary Clinton ran a campaign with over 800 people probably close to 900 to a thousand people.
Donald Trump run his campaign like a small business. It was under a hundred people. So, at this time I think that it does add to the seriousness of which his campaign and how he wants to move forward by adding these new voices to the foe.
We're at a time where we have to be very, very serious about what we're doing. And we have to add the capable professionals that have been in this different spaces whether there be in media or politics in of itself.
And I think that's what he's doing right now.
BOLTON: All right. I thank you all. Gianno Caldwell.
CALDWELL: Thank you for having me.
BOLTON: Tammy Bruce, Kelly Grace Gibson, glad to have you here.
Donald Trump receiving his first classified intelligence briefing today. It was supposed to be about an hour long. So, now over. But this is a shot outside the FBI's New York's office.
We will bring you back there and show you live video when Donald Trump leaves the building.
In the meantime, he is calling Hillary Clinton a bigot who is pandering for votes and talking down to communities of color. Colonel Allen West agrees. He is with me in just a minute.
(BEGIN VIDEO CLIP)
CLINTON: While Americans need to do a much better job of listening when African-Americans talk about the seen and unseen barriers you face every day.
My life has been changed by strong black women leaders.
UNIDENTIFIED FEMALE: What's with them that you always carry with you?
CLINTON: Hot sauce.
UNIDENTIFIED MALE: Really?
CLINTON: Yes, yes.
UNIDENTIFIED MALE: Really?
CLINTON: Now, listen, I want you to know people are going to see this and say, OK, she's pandering the black people.
CLINTON: OK. Is it working?
(END VIDEO CLIP)
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
TRUMP: Law and order must be restored.
(CROWD CHEERING)
To every voter in Milwaukee, to every voter living in the inner-city or every forgotten stretch of our society, I'm running to offer you a much better future, a much better job.
(CROWD CHEERING)
The other party, the Democratic Party nominated the personification of special interest corruption. We reject the bigotry of Hillary Clinton which panders to and talks down to communities of color and sees them only as votes. That's all they care about not as individual human beings worthy of a better future.
(END VIDEO CLIP)
BOLTON: Donald Trump in Milwaukee last night he wanted to send a signal to African-American voters. He slammed Hillary Clinton and democratic leaders of their records in inner cities for years.
With me now, former republican Florida Congressman retired lieutenant colonel Allen West. Colonel, welcome. This is the first time that Donald Trump has specifically addressed the African-American community.
Now he's facing some tough poles with some minority groups. But if he resonates on economic issues, simplification of the tax coder, will that shift his campaign favorably.
ALLEN WEST, FORMER FLORIDA CONGRESSMAN: Well, I think one of the most important things - and it's a pleasure to be with you, Deirdre - is to talk about the history of the Democratic Party with the black community.
The Democratic Party was the party of slavery, the Democratic Party did not support the 13th, 14th, or 15th Amendment when the republicans lost control of the House and the Senate at the turn of the century.
It was the Democratic Party that instituted the Ku Klux Klan, that instituted Jim Crowe laws that enforced segregation. They were the party of Lynching's, they were the party of literacy test and poll taxes, and they were the party that really was not for the 1964 Civil Rights legislation.
If it had not been for Senate republicans every dirt and living dead the Civil Rights legislation would not have passed because Al Gore Sr., and Robert Burr, Jr., who was a grand wizard with the Klan stood against that Civil Rights legislation.
And when you go from the great society programs of Lyndon Johnson, the democrat president to today, you will see the decimation of the family, the black family especially, the rise of the out-of-wedlock birth rates. You don't hear anyone from the Democratic Party talk about better education opportunities in the inner-city nor do they talk about small business entrepreneurship and growth in inner cities.
BOLTON: Well, they're talking about it, but they're talking about, at least Hillary Clinton is by taxing the rich to pay for programs for everyone.
WEST: Yes. That is just the simple mantra of progressive socialism which is the re- distribution of wealth because what they need to do is continue to create and expand a welfare managed state, the independence of society because they don't believe in equality of opportunity which allows someone like me from the inter- city of Atlanta, Georgia to be sitting here talking with you today.
They believe in an equality of outcomes. And they are the ones to determine those outcomes. And I think it's very important that Donald Trump makes that philosophical or principle delineation between who he is and what he believes in and that opportunity instead of the dependency that Hillary Clinton is talking about.
BOLTON: Colonel, thank you for sharing your thoughts on that. We want to hear them. I want you to tap, if you don't mind, your expertise on national security.
NSA web site down for an entire day, just began working. Hackers calling themselves the shadow brokers say they stole some of the NSA's most powerful top-secret hacking tools, posted some of the links online and planned to auction off the rest.
Many believe that the Kremlin have a direct hand in the hack. And it's worth noting the exact sources difficult to prove. But how concerned should we be that hackers for hire is it seems like they are can get into what's supposed to be our most secure agency.
WEST: Well, we should be very concerned, Deirdre, about the fact that we are not able to protect our national security secrets to include a person that had a private e-mail server in the bathroom. And we don't know where those links could end up.
But we have a United States cyber command which is infantile. It would as minuscule. When you think about the efforts that China and Russia and others are putting towards cyber warfare. And if we don't get serious we know that people have hacked into the government agencies previously to this, and we have had many government employee's records being taken.
But for them to be able to tap into our National Security Agency, this is an act of war. And we need to be able to trace these individuals and, you know, punish them to the highest extent.
BOLTON: Lieutenant colonel Allen West, thank you as always.
WEST: Thank you, Deirdre.
BOLTON: The law and order candidate as he describe himself, Donald Trump met with Sheriff David Clarke and other Milwaukee authorities yesterday. He is sitting down with former New York City Mayor Rudy Giuliani and New York security officials today.
Also newly linked Democratic Congressional Campaign Committee papers reveal that party officials were criticizing some candidates for being, quote, unquote, "too pro-police." We will give you more details after this. Former New York City police officer and Secret Service, Dan Bongino is my guest.
