updated 7/30/2010 2:35:50 PM ET 2010-07-30T18:35:50

Guests: Bernie Sanders, Ernest Istook, Luis Gutierrez, Eric Boehlert, Ron
Christie, Bill Press, Ben Cardin, Jim Moran
ED SCHULTZ, HOST:  Good evening, Americans, and welcome to THE ED SHOW tonight from New York.
These stories are hitting “My Hot Buttons” at this hour.

Big news day today.  Americans are hurting, and Congress needs do something about it.  They‘re getting ready to go on vacation. 
Folks, I think they need to stay in session and finish the job for the unemployed.  The 99ers are the Americans who really need a break right now. 
My commentary on that in just a moment. 
Shirley Sherrod is taking it to right-wing hatchet man and character assassin expert Andrew Breitbart.  Plus, Fox News finally admits they unfairly pushed the doctored tape of Sherrod‘s speech. 
I‘ll get “Rapid Fire Response” on that. 
And presidential wannabe Newt Gingrich is picking up Dick Cheney‘s old line of attack.  He claims President Obama is endangering the nation and willfully blind to the targets we face and the threats we face. 
Newt, I hope you really do end up running in 2012 so we can just watch the president smoke you in those debates. 
But this is the story that has me fired up tonight.  The United States House and the Senate are less than 24 hours away from a month-long August recess as four million American who have exhausted 99 weeks of unemployment are fighting for survival. 
Did you hear me on that?  This is a matter of life and death.
Vice President Joe Biden delivered this message to the unemployed this morning on “The Today Show”—
(BEGIN VIDEO CLIP)
JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES:  My message is keep the faith.  We are moving in the right direction.  We are not going to let you go without food or basic services.  That will not happen in this country and our administration. 
(END VIDEO CLIP)
SCHULTZ:  I was fired up when I heard that.  I mean, I hope the vice president understands that people are going without food and basic services in this country right now.  And I know in my heart if Joe Biden had his way, he would give his shirt off his back to help unemployed wage earners in this country, but there is no way in hell the Republicans will give one more dime to the unemployed. 
It doesn‘t look good right now, but the 99ers might have a ray of hope.  New York Senator Chuck Schumer is now in the mix. 
(BEGIN VIDEO CLIP)
SEN. CHARLES SCHUMER (D), NEW YORK:  There are a number of people who have maxed out.  They‘ve been looking and looking for work but haven‘t found it.  And there is a separate act that would extend the unemployment benefits to them. 
Extending this was really important, but there are some people who go beyond the 99 weeks.  And we‘re going to try do that next. 
(END VIDEO CLIP)
SCHULTZ:  Some people?  That would be four million right now.  This has to be on Schumer‘s radar screen and the Democratic leadership.  But even if they‘ve got something in the hopper, the earliest the 99ers will see any help from Washington is after Labor Day. 
Meanwhile, 50,000 Americans today will join the ranks of the 99ers as Washington politicians are back in their home districts trying to save their own rear ends, their own jobs. 
When John McCain and Mitch McConnell go home, they should look people in the face, man up big time.  The Republicans need to explain, you know, why it was so easy to vote for another $33 billion for Afghanistan, but they don‘t want to give a damn dime to the most desperate Americans on our soil. 
And let us all remember when Haiti and Chile had earthquakes, we did the right thing.  Uncle Sam broke out the checkbook.  When Americans who haven‘t had a job for two years need help, Republicans tell them to suck it up, get off the couch, quit acting lazy and just move on. 
Folks, let‘s call this what it is.  It‘s un-American. 
You know, I can‘t help but think what our old friend Ted Kennedy would have said about this issue.  I think it would have probably sounded something like this -- 
(BEGIN VIDEO CLIP)
SEN. EDWARD KENNEDY (D), MASSACHUSETTS:  What is the price we ask the other side.  What is the price that you want from these working men and women?  What cost? 
How much more do we have to give to the private sector and to business?  How many billion dollars more are you asking, are you requiring?  When does the greed stop? 
(END VIDEO CLIP)
SCHULTZ:  Great question today, and it applies.  When does the greed stop? 
Senator Kennedy was fighting for minimum wage at the time, and this is the moral issue of our time.  The Congress can‘t let Americans become destitute within our borders during this economic crisis. 
Senator Schumer, I applaud you. 
Senator Reid, last week when we were at the Netroots convention, you said we get on your nerves.  How about the nerves of the unemployed?  Do something, Harry.  Delay this August recess.  Stay in Washington and do the job for the 99ers. 
We‘re doing the job for the warmongers.  Let‘s do the job for the 99ers.  Let‘s do the job for the American workers. 
Republicans aren‘t going to help you.  You need 60 votes.  At least try to get it. 
Forget the fund-raising and the campaigning.  That can wait.  Their job is just as important as yours, and your job is no more important than theirs.  It‘s time for the unselfishness to end in this country. 
The Republicans in the last week, what have they talked about?  The estate tax.  Is that selfish?  They‘ve talked about extending the Bush tax cuts for the top two percent.  That‘s all they care about. 
Now, today—and we‘ll have this later on in the show tonight—a very interesting development about the jobs bill and about getting $30 billion to community banks with assets under $10 billion so they can do the lending because the money‘s tight.  I recall a conversation I had with Mr.  Zuckerman earlier this week on money being tight. 
Well, the Republicans, they were against that again today.  The vote wasn‘t there.  We only had 58 votes. 
So, what do we do?  Is this the change, Harry, that we believe in?  No.  This is about getting on the Republicans‘ nerves, not the lefty nerves. 
This is about sticking it to them.  This is about standing up for Americans who have been outsourced by conservative policies. 
Do not go home, Harry.  Don‘t go home.  You‘ll get plenty of media coverage.  You don‘t have to go home.  Forget about all the town hall meetings in Nevada.  Everybody knows who you are.
Do the right thing.  Do what the Republicans would do if the roles were reversed.  They‘d kick some ass.  That‘s what they do. 
They wouldn‘t take no for an answer.  And that‘s what you need to do. 
Senator Reid, I think this is your wakeup call. 
And there is going to be a political component to all of this.  I‘m saying it tonight, that these four million Americans, if they don‘t get help, the 99ers, don‘t count on them voting for the Democrats in November. 
These folks could swing the election.  And as crass as it might sound, there‘s a political component to everything in Washington. 
The bottom line is, the Democrats can hold the majority.  These people will remember who rallied the cavalry and came to their rescue. 
It won‘t be the Republicans.  It can be the Democrats.  The next 24 hours I think is crucial to the midterms. 
And I ask you, Harry—I know you‘re a boxer and a tough guy—do you have the guts to do it?  Do you really have the guts to do it?  Tell them they‘re not going home.  Tell them it‘s time to talk about the 99ers. 
Get your cell phones out, folks.  I want to know what you think. 
Tonight‘s text survey question is: Do you think Congress should cancel vacation and keep working to help the unemployed in this country? 
Text “A” for yes, text “B” for no to 622639.  I‘ll bring you the results later on in the show. 
Joining me now is Vermont Senator Bernie Sanders, a member of the Senate HELP Committee. 
Senator, would you be willing to stay and work for the 99ers until we get conclusion? 
SEN. BERNIE SANDERS (I), VERMONT:  Absolutely.  I think what we have to do is expose the hypocrisy that‘s taking place in Washington right now. 
You mentioned a moment ago the estate tax.  Let‘s be clear.  The Republicans refused to vote to extend unemployment benefits last week for 2.5 million American workers.  Forget the 99ers and those four million of which they will certainly not vote to help. 
At the same exact time, what they wanted to do is to provide a trillion dollars in tax relief for the top .3 of one percent of the population -- .3 of 1 percent, millionaires and billionaires, by completely repealing the estate tax.  If that‘s not hypocrisy is, I don‘t know what is. 
The middle class in America today is collapsing.  People are growing desperate.  And the Republicans‘ top priority is massive, massive tax breaks for millionaires and billionaires. 
That is outrageous, and I think it‘s certainly appropriate to stay here and keep pounding that message home. 
SCHULTZ:  Now, the folks that are unemployed, their jobs have been outsourced to other countries.  It would seem to me that—I don‘t want to overstate it, I‘ll let you speak for yourself.  I think it‘s a moral issue. 
It‘s about economic patriotism to this country at this point.  And it is a moral issue. 
What do you think? 
SANDERS:  Look, you‘re touching on a huge issue that we don‘t talk about enough.  And I think you were quoting the late Senator Kennedy talking about greed. 
If we do not deal with the issue of outrageous greed in this country, the fact that you have millionaires and billionaires who seem to have an insatiable desire—it‘s like an addiction, it‘s like a drug problem.  They need more and more.  And if they can make five bucks more by shutting down a plant in the United States and moving it to China, or moving it to Vietnam, or moving it to Bangladesh, that is certainly what they will do. 
We are losing, Ed, $100 billion a year because wealthy people are taking advantage of tax havens in Bermuda, the Cayman Islands and other countries.  It is a question of patriotism. 
And I think at the end of the day, what you‘re going to find is these guys don‘t care about America.  They surely don‘t care about the middle class.  The only thing they care about is their bank accounts. 
I think that is the issue of the moment.  And I think we‘ve got to take them on big time.
SCHULTZ:  Senator Bernie Sanders, thanks so much.  That‘s a big comment tonight, they don‘t care about America.
Good to have you with us.
SANDERS:  Good to be with you.
SCHULTZ:  Joining me now is Ernest Istook, former Republican congressman and now a senior fellow at the Heritage Foundation.
OK, Ernie.  I‘m going to give you a chance to get my blood pressure up here.
ERNEST ISTOOK, HERITAGE FOUNDATION:  OK, Ed.
SCHULTZ:  What do we do—honestly, what do we do with Americans, over four million of them, 50,000 a day adding to the rolls here?  They are now statistically out of the equation.
What do we do with them?
ISTOOK:  Well, it‘s a somber statistic.  You‘re exactly right about that, Ed.  And most of them, of course, what they want is not really unemployment benefits.  What they want is a job.
And if we focused just on the unemployment benefits, rather than focusing on the reasons that jobs are scarce and businesses are holding on to $1.8 trillion in assets that they could be using to expand businesses and expand jobs, it‘s the uncertainty knowing that the largest tax hikes ever are coming up in January, that there are killer regulations.  The ability to create jobs is being restricted by government policy.  It‘s being restricted by the uncertainty.  And rather than just addressing the symptom, we ought to be addressing the root cause. 
If you keep expanding unemployment benefits, you know, originally at six months, and then you have multiple extensions to go up to 99 weeks, and then you take it to 129 weeks, and maybe 159 weeks after that, all you‘re doing is addressing the symptoms.  It‘s a dog chasing its tail. 
SCHULTZ:  Well, Ernest, you and I are different on this, no question about it.  The tax cuts aren‘t going to create any jobs.  We had a guy from the Heritage Foundation, who you‘re apart of, the other night admit that on the air.  Economists are now coming out saying -- 
ISTOOK:  That‘s not quite what he said, but I understand your point. 
SCHULTZ:  That‘s exactly what he said.  Well, we‘ve got an economist from Princeton University saying the same thing, that extending the tax cuts is not going to create any jobs. 
But talking about jobs, this is what happened today, what the Republican Party did.  The bill would have created a $30 billion government fund to help community banks increase lending to small businesses.  The Republicans were against that today. 
Ernest, I‘m not trying to pick a fight with you, but can‘t these two parties come together and do something to help Americans?  Are we that divided in this country that we‘re so worried about who‘s going to get the political credit while people are—they‘re shooting themselves?  The suicide rate is going up for the 99ers.  And it‘s not pleasant to say that. 
This is a matter of life and death.  But we‘ve got political wrangling going on in Washington because we‘re concerned about political credit. 
I‘ll let you respond. 
ISTOOK:  Ed, first of all, I totally agree with you that there‘s too much concern in Washington about political credit.  There‘s too much pandering.  There‘s too much not addressing the core issues. 
But the difficulty is, we have—the Heritage Foundation has what‘s called the Dependency Index.  In the last year alone, the quality or quantity of dependence on the federal government has gone up by 13 percent in the country. 
SCHULTZ:  Well, of course it has.  The jobs have been outsourced. 
Damn right it‘s gone up. 
ISTOOK:  It‘s not just out sourcing, it‘s depression. 
SCHULTZ:  But I asked you about the $30 billion that was on the table for community banks, and the Republicans are against that, if you‘re talking about creating jobs.
ISTOOK:  There‘s more than that.  But that‘s small potatoes compared to the $1.8 trillion that is being held close by companies because they‘re fearful of what government is doing to them already and is about to do them again. 
SCHULTZ:  This country—you know what?   
ISTOOK:  That‘s a Federal Reserve figure, $1.8 trillion.
SCHULTZ:  This country is not built on fear. 
ISTOOK:  Right. 
SCHULTZ:  The settlers that came across America did it for the gusto, they did it for the entrepreneurial spirit. 
Where the hell is America right now?  I‘ll tell you where we are. 
We‘re in swamp country in Washington, D.C., up to our neck -- 
ISTOOK:  And too many people are afraid of the government. 
SCHULTZ:  -- not figuring out what the hell to do about all of this.  And we get the bullet points from the right about government regulations and tax cuts.
Ernest, good to have you with us tonight.  Appreciate your time.
ISTOOK:  Hey, thanks, Ed. 
SCHULTZ:  You bet.
ISTOOK:  It‘s an important discussion. 
SCHULTZ:  You bet it is.
Coming up, righty propaganda peddler Andrew Breitbart had better brace himself, because Shirley Sherrod is throwing the book at him.  I love it.  She just announced she‘s going to sue this guy.  While she‘s at it, I hope she goes after Fox News.
“Rapid Fire Response” on that coming up.
“The Newtster” is getting down and dirty in his push for the presidency.  He took the fear mongering, well, to a whole new level today.  And I‘ll show you the tape.  And Congressman Jim Moran will smack him up coming up a little bit later in the program. 
All that, plus Charles not sorry; “The View” crew flusters the president; and Michelle Malkin lands in the “Zone.”  This is her first time.  I‘m looking forward to this on THE ED SHOW on MSNBC. 
Stay with us.
(COMMERCIAL BREAK)
SCHULTZ:  Welcome back to THE ED SHOW and thanks for watching tonight. 
A federal judge has put the worst parts of Arizona‘s anti-immigration law on ice, and today there was reaction.  All hell broke loose in the state‘s capital. 
Police in riot gear were brought in to control the rallies in Phoenix, which included protests on both sides of the issue.  Dozens of opponents of the law were arrested despite the positive ruling.  They held a massive demonstration outside the office of Maricopa County Sheriff Joe Arpaio.
Also today, Republican Governor Jan Brewer filed an appeal asking an appeals court to lift the block and do it quickly. 
For more, let me bring in Illinois Congressman Luis Gutierrez, a member of the Hispanic Caucus. 
Congressman, good to have you with us tonight. 
REP. LUIS GUTIERREZ (D), ILLINOIS:  Thank you.
SCHULTZ:  I know you‘re very involved in this action that‘s taking place across the country. 
Are you concerned in the wake of what happened today that these protests could become elevated? 
GUTIERREZ:  Well, you know, it‘s my hope.  We won in the courts.  We won with our arguments.  We won with our conviction and our support of the Constitution of the United States. 
Let‘s celebrate that victory. 
I call upon everybody to follow the law.  That‘s what we ask the law to do, to protect us.  Now let‘s follow the law. 
And I ask for law enforcement to make sure that they have a steady hand in all of this, too.  People have a right to the First Amendment to express themselves.  And I ask for everyone civil disobedience.
Coming out and speaking against injustice and unfairness is an American tradition.  But we should always do it in a peaceful and meaningful way. 
SCHULTZ:  Well, Jan Brewer, the governor, her actions today, how do you feel about that?  Did you expect it?  And is this inflaming the situation as well? 
GUTIERREZ:  You know what?  Here‘s what we should do.  We should say look, Governor, you said that the reason the 1070 existed was because the federal government did not exercise its responsibility in terms of enforcing immigration law. 
So you know what?  OK.  Let‘s all quiet down.  We won the case.  We stopped the onerous parts from affecting the community in a devastating manner. 
So here‘s what I think we should do now, Ed, is tell the governor, calm down.  You want to send out your fund-raising letters so you can raise money?  Because, really, we know a lot of this is about you were 30 percent in the poll, Governor, and now you‘re at 70 percent and you want to continue to raise money. 
Fine.  You want to do that?
But look, responsible people like us on talking about this, this evening, you and I, Ed, you know what we should do?  We should say let‘s bring about comprehensive immigration reform.  Let‘s not have 50 policies in 50 states or 100 policies in 100 different cities and counties across this country.  What we should do is have one policy. 
SCHULTZ:  But Congressman, do you think she‘s doing this to raise her position in the polls, that this is all about an election? 
GUTIERREZ:  You know, unfortunately, my only recent experience with this was California, where we had a governor then back in ‘93 who was going down in the polls.  And then he brought about—Pete Wilson brought about Proposition 187. 
It elevated it in the poll.  It got him elected.  But it had devastating long-term effects for the Republican Party when he was subsequently shown for what he was. 
SCHULTZ:  Well, the legal wrangling, this was the second volley today as the appeal was filed.  This is going to go on all summer. 
GUTIERREZ:  Good.  You know something?  Go ahead, Ed.  Sorry. 
SCHULTZ:  Well, I mean, I guess I‘m kind of concerned that today is just the start of what could turn out to be a pretty violent situation.  I‘m not purporting violence here in any stretch of the imagination, but it was almost as if today people weren‘t respecting the court ruling. 
GUTIERREZ:  You know what?  The court ruling is the court of the land. 
This judge was an point by Clinton.  But let‘s remind all your viewers that it was Senator Jon Kyl that  recommended her to Clinton.  So this is really a Republican appointee. 
And she was a strict constructionist.  Right?  She used the Constitution of the United States. 
She didn‘t make stuff up and say, well, I think I can extrapolate from this part of the Constitution.  Not that there‘s something wrong with that, necessarily, but she didn‘t do that. 
She read straight from the Constitution and said the supremacy clause says that the federal government has the right and the exclusivity when it comes to enforcing immigration law.  I hope everybody can respect that law.
Here‘s what I think, Ed, we have to do, though.  We have to say look, let‘s get together, Democrats in the House and the Senate.  Get the president, let‘s get all involved, and let‘s respond seriously to the American people and their cry for a lack of comprehensive immigration reform. 
SCHULTZ:  Yes.
GUTIERREZ:  Let‘s do it, and then we can go, I think the president should call them all up, go down there to the border, and say we‘ve done this, this, this and that.  What do you want to get a secure border?  Because I‘m here—
(CROSSTALK)
SCHULTZ:  You want the president to go to Arizona? 
GUTIERREZ:  I think it would be an excellent idea for him to go right down to the border.  Because you know something?  The president believes in securing that border.  Democrats believe in securing that border.  Let‘s go down there and let‘s have a conversation. 
SCHULTZ:  But in the wake of this decision, you think this would be the right time for the president to engage? 
GUTIERREZ:  I do.  I think because otherwise, it‘s kind of—here‘s what the president said through the attorney general.  Right?  He said hey, I‘m in charge of immigration policy.
SCHULTZ:  He did. 
GUTIERREZ:  That‘s what he said.  That was his argument.  He didn‘t say it was about racial profiling.  He said I‘m in charge. 
Well, then, let‘s take charge, Ed.  That‘s what I think Democrats got to do.
SCHULTZ:  Congressman, good to have you with us tonight. 
GUTIERREZ:  Thank you, Ed.
SCHULTZ:  Thanks for speaking up on a very controversial issue. 
GUTIERREZ:  All right.  Thank you.
SCHULTZ:  Thank you.
Coming up, “Slant Head” and “Mad” Michelle Malkin have just brought a new meaning to saying those in glass houses shouldn‘t throw stones.  These two Fox Newsers shatter their way right into the “Zone” next.
Stay with us. 
(COMMERCIAL BREAK)
SCHULTZ:  And in “Psycho Talk” tonight, Fox News contributor Michelle Malkin. 
Well, she went on “Slant Head” Hannity‘s show last night and got all wound up about the Arizona immigration law.  Michelle urged folks not to worry about the district judge‘s decision to block parts of the law.  She said it was still a great model for other states. 
(BEGIN VIDEO CLIP)
MICHELLE MALKIN, FOX NEWS CONTRIBUTOR:  I think it should be encouraging to citizens all across this country to try and rise up and do what Arizona did, take matters into their own hands, and not be deterred by the racial demagoguery that is embraced by the Democrat Party and the people at 1600 Pennsylvania Avenue. 
(END VIDEO CLIP)
SCHULTZ:  Ah-ha.  So Michelle Malkin is accusing Democrats of playing the race card while she‘s on a network that spawned the Shirley Sherrod debacle and the deep-seated hatred of white people comment. 
And, Michelle, let me remind you of the trumped-up nonsense Fox News has been rabidly covering for the past month. 
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE:  A dramatic interview today alleging politics and race were to blame for the decision not to pursue serious charges against members of the New Black Panther Party. 
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
BILL O‘REILLY, FOX NEWS:  And the Black Panthers show up. 
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
SEAN HANNITY, FOX NEWS:  It‘s the New Black Panther Party. 
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE:  The New Black Panther Party.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE:  An infamous case of voter intimidation. 
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
HANNITY : All right.  Eric Holder‘s Justice Department refused to prosecute the New Black Panther Party. 
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
MALKIN:  We do have not have a Department of Justice anymore.  We have a department of injustice and we have a department of social justice. 
(END VIDEO CLIP)
SCHULTZ:  So, for a Fox News regular to accuse the Obama administration of playing the race card, that is hypocritical “Psycho Talk.”  
Coming up, I‘m so glad that Shirley Sherrod is going for the jugular and suing character assassin expert Andrew Breitbart.  Sherrod isn‘t taking the law into her own hands.  She‘s taking Breitbart to court. 
Republicans once again prove that they don‘t give a damn about the middle class.  I‘ll get “Rapid Fire Response” on the blockage of a $30 billion package that would have gone a long way to helping small businesses that are suffering. 
And “The Newtster” says President Obama has a blind spot for Islamic terrorists.  Well, I think he has blind ambition for 2012.  We‘ve heard this rhetoric before. 
All that, plus Murdoch is trying to squeeze the White House, and Brett Favre is going gray in the “Playbook.”
It‘s all coming up. 
You‘re watching THE ED SHOW on MSNBC. 
Stay with us. 
(COMMERCIAL BREAK)
SCHULTZ:  Welcome back to THE ED SHOW.  The Battleground story tonight, right wing character assassin expert Andrew Breitbart thinks he can destroy people‘s lives without penalty.  Oh, he better think again.  Shirley Sherrod is taking action, the latest victim of his conservative witch hunt is taking him to court, going to sue him.  Sherrod says, she definitely plans to sue Breitbart over the doctored videotape Breitbart posted taking a speech she gave about racial healing grossly out of context.  That post led to Sherrod being forced to resign from the USDA.  She has since been offered a new job with the organization.  Today on “The View,” President Obama acknowledged that his administration was wrong in its response. 
(BEGIN VIDEO CLIP)
OBAMA:  A lot of people overreacted including people in my administration and part of the lesson that I want everybody to draw is, let‘s not assume the worst of other people but let‘s assume the best.  Let‘s make sure that we get the facts straight before we act. 
(END VIDEO CLIP)
SCHULTZ:  Facts.  That‘s an issue.  Joining me now is an expert on what a fraud Andrew Breitbart is.  Eric Boehlert, senior fellow at “Media Matters.”  Eric, is Mr. Breitbart, is he even an accredited journalist or just a hacker? 
ERIC BOEHLERT, MEDIA MATTERS:  Well, that‘s a good question.  And we might have to deal with that if Shirley Sherrod goes ahead with her lawsuit.  I mean, this is a defamation case most likely.  But I don‘t see how Andrew Breitbart qualifies as a journalist in any of the sort of established shield laws we have.  This was not a case of defamatory reporting.  This was a case of no reporting.  There wasn‘t no journalism.  He got a tape in the mail, he put it on the website and called her a racist.  Where‘s the journalism there?  You know, no attempt to put it in context, no attempt to verify anything.  And really, I think, most telling, no attempt to reach out to Shirley Sherrod to get her side of the story.  My hunch is he knew if he reached out, there will be no story.  She would explain the tape and he would have nothing to post.  I think he was more committed to the smear than he was the truth. 
SCHULTZ:  What do you make of O‘Reilly going on Leno, I think there‘s a legal component there, today FOX News, they finally fess up saying yes, we jumped the gun.  Are there some other backside covering going on here and where is the right wing going to be with Andrew Breitbart?  A lot of times they come up with a legal defense fund for people like this.  
BOEHLERT:  He will have his legal defense fund.  And I‘ll tell you, if Shirley Sherrod does sue, she‘ll have a very vocal backing on the left.  I don‘t know if they‘ll going to be able to come up with this much money but people will be cheering every step of the way.  But you mentioned FOX News.  I mean, people wouldn‘t know who Breitbart was if it weren‘t for FOX News.  I mean, last year, during that ACORN, sort of got you hoax, every night of the week, he was on FOX News.  They made him what he is today.  And now, they have to deal with the consequences, they have egg on their face.  Bill O‘Reilly had to apologize.  They jump the on that story, and as you said, the head of the news said, there was a breakdown within FOX News because they  shouldn‘t have ever touched that story and parts of FOX News definitely push that story before they had any idea of the context, before anyone got a comment from Shirley Sherrod.  
SCHULTZ:  It took them more than a week for them to figure out they professionally screwed it up.  I find that interesting but when you take a look at his pattern of behavior with what he does with his exposure, ACORN, Van Jones, this is all a pattern of what he does and how he operates.  What‘s the culpability of FOX News? 
BOEHLERT:  Well, for FOX News, again, I think they‘ve co-sponsored him but really I think Andrew Breitbart is really the one in the sights here.  I mean, incredibly reckless defamation.  Seemed to go out of his way to sort of conceal the truth.  
SCHULTZ:  Do you think the Newt Gingrich of the world will come to his defense now?
BOEHLERT:  Well, we‘ve seen a split in the right wing head media.  Some of them called out Andrew Breitbart last week saying he should have apologized.  But the right wing blog or the blog spear sphere, they‘re going to rally around him, they‘re going to say, he did nothing wrong.  Brent Bozell who claims, he‘s sort of right wing media prey because he‘s already announced, you know, Andrew Breitbart has nothing to fear if he‘s sued because he‘s done nothing wrong.  So, we‘re going to see the victim card played and played hard.  But it‘s funny.  If Andrew Breitbart is sued, maybe this all could have been avoided with a sincere apology in his part last week.  Maybe, if he had apologize to Shirley Sherrod, or have done anything honorable last week.  He did nothing and, you know, he might end up in court.  
SCHULTZ:  Eric Boehlert, “Media Matters,” good to have you with us tonight.  Thanks so much. 
Now, let‘s get some rapid fire response from our panel on these stories tonight.  Veteran Congressman Charlie Rangel did have not a good day, he is looking to cut a deal after a damning release of documents from the House Ethics Committee.  The committee unveiled 13 serious allegations against Rangel saying that he has shown, quote, “A pattern of indifference and disregard for the law.” 
FOX News finally admits pushing Andrew Breitbart‘s doctored video of Shirley Sherrod‘s speech before she was forced to resign.  Of course, nobody admitted it on FOX but one of Roger Ailes‘ boys in the front office fess up to the unfair coverage.  
And the party of Waterloo shows its true colors again.  Today, senate republicans deep-sixed a $30 billion bill that would have boost small business lending in a very tough economy. 
With us tonight, Bill Press, nationally syndicated radio talk show host and Ron Christie, Republican Strategist.  Gentleman, good to have you with us tonight.  Let‘s talk about Charlie Rangel on troubled by this big time.  The two things—there are four basic general areas where the subcommittee found evidence of wrongdoing.  Errors and omissions on Rangel‘s financial disclosure statements.  Another one that jumps out, failure to pay taxes.  Fellows, I don‘t know how you cut it.  He‘s got to step down.  Ron Christie, what‘s your opinion?  
RON CHRISTIE, REPUBLICAN STRATEGIST:  I absolutely agree with you, Ed.  I think if the pattern of behavior that was demonstrated by Congressman Rangel, if me or you or Bill Press had done some of the things that he‘s alleged to have done, they would have arrested us and put us in jail.  The irony over there is that Mr. Rangel was the chairman of the House Ways and Means Committee, the committee that‘s charged with writing tax legislation tax laws.  He should resign for the good of the Congress and the good of the institution.  
SCHULTZ:  Bill, what do you think?
BILL PRESS, NATIONALLY SYNDICATED RADIO TALK SHOW HOST:  You know, this pains me too because Charlie Rangel has been a friend for a long time.  But these are serious charges.  Clearly, he got careless, he got reckless.  He abused his position.  I think for his own good and for the good of the Congress and for the good of the Democratic Party, he ought to do the right thing and get out of the way and step down.  
SCHULTZ:  We‘ll talk about draining the swamp, this is Nancy Pelosi responding to the Rangel situation. 
(BEGIN VIDEO CLIP)
UNIDENTIFIED MAN:  Mr. Rangel‘s going to be going to a hearing where he‘s going to be talking about not paying taxes and he writes the tax code.  So, should voters trust. 
NANCY PELOSI, SPEAKER OF THE HOUSE:  I think, Mr. Rangel has stepped down as chairman of the Ways and Means Committee.  That was a very serious penalty.  Holding high ethical standard is a serious responsibility that we have.  The process will work its bipartisan.  The chips will have to fall where they may.  
(END VIDEO CLIP)
SCHULTZ:  Bill Press, what is she saying there?
PRESS:  I think what she‘s saying, Ed, is that the process—look, there is a process.  The democrats went after this guy.  They went after one of their top democrats.  You got to give them credit for that.  I mean, this is not a John Ensign or David Vitter hanging in there.  They went after him.  I think, what she‘s really telling us within a couple days, Charlie Rangel is going to be out of Congress.  
SCHULTZ:  Ron Christie, it seems to me that she did everything but ask him to leave town.  
CHRISTIE:  Yes.  
SCHULTZ:  And I mean, I think that this is a credibility problem for the democrats.  As much as it pains me to say it, he‘s done a lot for Americans, a lot for the country but this is the swamp the democrats were talking about when it comes to ethical behavior.  
CHRISTIE:  You‘re absolutely right.  And I think that Congressman Rangel has served his country honorably for over 30 years, he‘s a Korean War veteran.  And we should take note of his service.  But in particular instance, the democrats campaign, they said, they were going to drain the swamp, they were going to be a different type of institution.  And I think, he‘s let them down.  Don‘t forget.  
SCHULTZ:  Will it hurt him in the midterms?  What do you think, Ron?
CHRISTIE:  Yes, I think it will.  I think it will, only because Nancy Pelosi said that they were going to be a different type of Congress, they‘re going to bring accountability back.  He will be an albatross around their neck in November.  
SCHULTZ:  All right.  Go ahead.
PRESS:  He‘s going to be out of way before the midterms.  I don‘t think it will impact the midterms.  I think the democrats are in the process of draining the swamp.  Give them a couple more days.  
SCHULTZ:  OK.  You know, I got to stay on the story, gentleman. 
PRESS:  OK.
SCHULTZ:  I agree with you, Bill.  He‘s going to be gone by the midterms but and what not but the appearance can‘t be that the democrats well, just kind of let him go through.  They got to put the hammer down on this.  There are absolutes here.  You can‘t have a million dollars worth of income and just inevitably not report it.  You can‘t do that.  
CHRISTIE:  The rest of us would be in jail, Ed.  You‘re absolutely right.  There has to be accountability, there has to be an equal standard under the law that members of Congress should not be held through a different standard where they can decide to pay or not pay.  It‘s equal justice under the law.  
SCHULTZ:  All right.
PRESS:  I think we all agree here, I think we all agree Charlie Rangel has got to go.  We‘ve all said, he‘s got to step down, all I‘m saying is that republicans can‘t use this and say democrats are not draining the swamp because they‘re draining Charlie Rangel of a job.  
SCHULTZ:  All right.  Speaking of jobs, Ron Christie, what are the republicans thinking?  You got a $30 billion government fund to community banks that would have helped small business out and then republicans are against it today.  They deep-sixed it.
CHRISTIE:  We have a $1.4 trillion deficit for this year.  The republicans are very much in favor of funding small business loans.  They‘re very much in favor of extending unemployment.  The republicans are saying, we have to stop this irresponsible spending.  We need to pay for it first.  That‘s the difference.  
SCHULTZ:  It‘s not spending, though, Ron.  It would be loans.  It would $30 billion of a government fund that would come back to pay it off for creating jobs.  
CHRISTIE:  The federal government, when have you loan guarantees like that, the taxpayers are on the hook for this.  Let‘s look no further than Fannie Mae and Freddie Mac.  Those are government.  
(CROSSTALK)
SCHULTZ:  So, our economy is not worth doing this.  This is too much of a risk.  
CHRISTIE:  Excuse me, Ed.  The democrats rammed through an $862 billion stimulus bill that didn‘t stimulate anything.  
PRESS:  Oh, get out.  
SCHULTZ:  Is lending tight, Ron?  
CHRISTIE:  Lending is very tight. 
SCHULTZ:  OK.  Then the president tries to do something about it.
CHRISTIE:  The president actually needs to pay for what the things he‘s trying to do.  
PRESS:  Hey, come on, Ed.  This is pure double talk.  This is pure hypocrisy.  The republicans are always talking, we love small business, yes, we love extending unemployment benefits.  It comes time to walk the walk, they won‘t do it.  This is a good program.  These loans would be paid back with interest.  They would help small business.  And I don‘t know what the Republican Party is for.  They‘re against extending unemployment benefits.  They‘re against extending the tax cuts for the middle class.  They‘re against the Wall Street reforms.  Now they‘re against giving loans to small banks for small business.  
SCHULTZ:  Ron, it had $12 billion of tax cuts and credits in there.  I mean, out of your own playbook you‘re against it.  
CHRISTIE:  No, my playbook says this, look, the republicans and democrats should come together in a bipartisan fashion and say, we‘re not going to raise taxes on anybody in a recession.  We need to actually.  
PRESS:  These are tax cuts, Ron.  Tax cuts. 
CHRISTIE:  Excuse me.  We need—free trade agreements with Panama, Columbia and South Korea, so that we can actually export American products and create jobs here.  
SCHULTZ:  Export American jobs.  
CHRISTIE:  See again, you guys—you guys are all about redistribution of wealth.  
(CROSSTALK)
SCHULTZ:  I tell what we‘re going to do.  One of these nights, I‘m talking to the front office.  The three of us are going to get a full hour. 
(CROSSTALK)
SCHULTZ:  Great to have you with us.  Coming up, “The Evil Empire” is at it again, Rupert Murdoch has found a brand new way to stick it to the White House and he wants American taxpayers to pick up the tab.  I‘ll show you how the White House plans to fight Uncle Rupert.  Next on THE ED SHOW.  Stay with us.
(COMMERCIAL BREAK)
SCHULTZ:  And it‘s not too late to let us know what you think.  Tonight‘s text survey question is, do you think Congress should cancel vacation and keep working to help the unemployed?  Text A for yes, text B for no to 622639.  We got the results, coming up.  Stay with us. 
(COMMERCIAL BREAK)
SCHULTZ:  And in my Playbook tonight, as the Bush tax cuts approach their expiration date, I expect the righties are going to try to help out their wealthy buddies by pushing for an extension.  But what really disgusts me are the weak need democrats who want to let the top two percent folks in this country get away with more tax cuts.  
(BEGIN VIDEO CLIP)
SEN. KENT CONRAD (D), CHAIRMAN OF THE SENATE BUDGET COMMITTEE:  We‘ve got to be very careful with the timing of what we do.  There‘s no question in my mind that taxes have to go up on the wealthiest among us.  The question is when, I don‘t think this is the moment.  
UNIDENTIFIED MALE:  Many of the people in that top bracket happen to be small business people or they‘re the people who are making the investment decisions, making the hiring decisions.  The last thing we want to do right now is to reduce their confidence and make them fearful for the future. 
UNIDENTIFIED MALE:  Senator, you know, listening to you talk about this, you don‘t sound like a democrat. 
(END VIDEO CLIP)
SCHULTZ:  No kidding.  Evan Bayh is practically reading out of the Republican playbook.  The mentality of protecting the rich while hanging the middle class out to dry has got to end in this country. 
Joining me now is Democratic Senator Ben Cardin of Maryland.  Ben, I‘ve got to ask you, thanks for joining us tonight.  
SEN. BEN CARDIN (D), MARYLAND:  My pleasure.  
SCHULTZ:  Are Democrats just concerned about going home and facing the commercial that they let taxes go up?
CARDIN:  No, I think we understand that we‘ve got to be serious about this deficit.  And we‘ve got to make some tough decisions.  It‘s very difficult to understand why we would extend the tax cut for the wealthy.  It makes no sense, it doesn‘t help our economy and we need that revenue to help balance the budget.  Let me just underscore the point you had in the last segment.  We can help small business by passing the bill that was on the floor earlier today.  That was fully paid for.  There was no addition to the deficit in that bill and would  have provide some tax relief for small businesses and yet the  republicans, not one was willing to vote for that.  So, there are things we can do to help our economy but extending the tax cuts for the wealthiest won‘t help our economy and will add to the deficit.  
SCHULTZ:  What do you make of Senator Conrad, the chairman of the Senate Budget Committee?  He‘s been a deficit hawk, a budget hawk, all along.  All of a sudden, he wants to favor the top two percent. 
CARDIN:  Well, I listened to it very carefully.  He was talking about a matter of timing.  For me, the timing has don‘t extend the tax cut.  But I think that‘s something we need to talk about and Senator Conrad has been a very strong advocate of reducing the deficit.  And that‘s something we have to do.  
SCHULTZ:  Is this a problem in the democratic caucus?
CARDIN:  Well, I don‘t know.  We don‘t know how this is going to be given to us.  We‘re going to have to take it up prior to the November elections.  I think some of us want to make sure that we‘re very careful not to do things that were part of the Bush economic policies that got us into this mess. 
SCHULTZ:  Yes.
CARDIN:  We don‘t want to go back to those problems.  
SCHULTZ:  Senator, good to have you with us tonight.  Thanks so much.
CARDIN:  Thank you.
SCHULTZ:  A couple of final pages in the Playbook.  Brett Favre thinks he can play until he‘s 50 years old.  I‘m all about.  In a recent interview, the longtime quarterback says, he thinks he‘s ready for retirement but as he always does, he left people wondering saying, I don‘t know.  “Hell, you got to quit sometime.  Then again, maybe I‘ll be doing this when I‘m 50 years old.  Who knows?”  The guy is the king speculation, no doubt.  And Rupert Murdoch finally figured out a way to make the White House pay.  The news corp. owned “Wall Street Journal” has jacked up the rate, it charges the Obama administration‘s news clipping service by $600,000?  A White House official said that they are not going to pay the increase and that they might be forced to drop the journal.  Like a lot of other people.  
Finally, I‘m proud that we‘re taking THE ED SHOW on the road to help some hardworking Americans in need.  On Wednesday, August 4th, I‘ll be broadcasting from a free health care clinic in Washington, D.C.  You can register for care or donate your time by going to freeclinics.us.  Also, we‘re heading down to New Orleans for a free clinic at the convention center next month.  Your donations and all kinds of volunteers are definitely needed.  I hope you can help us out.  Coming up, the noodster is on a nonstop mission to smear the president.  Today, he took it to a new low.  Congressman Jim Moran returning fire next on THE ED SHOW. Stay with us.    
(COMMERCIAL BREAK)
SCHULTZ:  And finally tonight on THE ED SHOW, in the clearest indication yet that Newt Gingrich is serious about a 2012 bid for the White House, he gave a National Security speech today that was full of campaign style shots at the Obama administration.  And classic republican fear mongering. 
(BEGIN VIDEO CLIP)
NEWT GINGRICH, FORMER GOP HOUSE SPEAKER:  America is at risk of a catastrophic disaster here at home, and that is a reality our elites are hiding from.  It‘s pretty clear that the Obama administration is willfully blind to the nature of our enemies and the forces which threaten America.  It is the natural pattern of secular socialist intellectuals to prefer our opponents to us.  And to accept their lies over our truths. 
(END VIDEO CLIP)
SCHULTZ:  For more let‘s bring in Congressman Jim Moran from Virginia for a response on that.  Actually, Jim, I thought he gave that Dick Cheney speech pretty good. 
(LAUGHTER)
REP. JIM MORAN (D), VIRGINIA:  Well, absolutely.  They‘re birds of a feather.  You know, history will record, Ed, that the Bush administration was soft and stupid on terrorism.  When you consider the fact that  we had won the Afghanistan war in the early part of the century, our soldiers had only to lose it because Bush dropped the ball with this singular focus on Iraq which had nothing to do with terrorism, he inflamed anti-American sentiment throughout the globe.  He brought 772 people into Guantanamo only to have to release more than 500 of them because he didn‘t have any charges, only four terrorists have been convicted.  And in the last 15 months, President Obama has eliminated three times more terrorists, Al Qaeda-type terrorists than Bush was able to in eight years.  So, let the facts speak for themselves.  
SCHULTZ:  You have the facts congressman.  Does this make Newt Gingrich a fraud on the issue?
MORAN:  Not just on this issue.  Newt has been a bit of a fraud since he became Speaker of the House closed down the government and then had the scuttle to put it back when seniors were looking for their Social Security payments and people wanted to go into our national parks.  I mean, look at the records.  He was probably one of the worst speakers in American history.  So, if he wants to run for president, you know, as somebody we can recall suggested, bring it on. 
SCHULTZ:  You are very forceful in your comments tonight.  I applaud you for it.  I know a lot of liberals around the country do, too.  I mean, the term willfully blind, how should democrats respond to this collectively or should Newt Gingrich just be ignored?
MORAN:  I think it‘s best to ignore him until he says something that makes some sense.  The fact is that President Obama has a very disciplined pragmatic style of foreign policy.  He‘s not going to go into war with a country that represents no threat to us, has nothing to do with terrorism.  He‘s going to show that we are true to our fundamental principles.  And when we do that, we become stronger.  We will start to diminish people who want to join terrorist groups.  And you know, we stand proud and we lead the rest of the world.  We did just opposite under President Bush and, of course, this is what Newt Gingrich wants us to go back to.  I can‘t imagine the American people would want to repeat the disasters of the last eight years that where everybody was praying that this guy would get out of office and we could get somebody that knew what he was doing into office to lead this great country.  
SCHULTZ:  Congressman, great to have you with us tonight.  I appreciate your time.  And thanks for speaking up.  I agree with you 100 percent.  I think Newt Gingrich is a joke and I think that people have to see what he‘s all about, and you documented it very well here tonight on how we are fighting terrorists and having much more success than the Bush administration did.  And I think, it will be a lot of fun if Newt runs.  Thanks congressman.  I appreciate your time.  
MORAN:  I‘ll be tuning to you, Ed.  
(LAUGHTER)
SCHULTZ:  You bet.  Tonight on our telephone or text survey question, I asked, do you think Congress should cancel vacation and keep working to help the unemployed?  Ninety seven percent of you responding said yes, three percent said no. 
That‘s THE ED SHOW.  I‘m Ed Schultz.  For more information on THE ED SHOW, go to ed.msnbc.com or you can check out my radio website at wegoted.com and you can listen to THE ED SHOW radio show, noon to 3:00 Eastern Time Monday through Friday on XM 167.  Have a great one.  We‘re back tomorrow night.  “HARDBALL” with Chris Matthews is next. 
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