updated 7/21/2014 10:50:40 AM ET 2014-07-21T14:50:40

THE ED SHOW
July 18, 2014

Guest: John Garamendi, Lawrence Korb, John Goglia, Bob Shrum, Scott Paul,
David Cay Johnston

ED SCHULTZ, MSNBC HOST: Good evening Americans and welcome to the Ed Show.
Live from Washington DC, let`s get to work.

(BEGIN VIDEO CLIP)

BARACK OBAMA, CURRENT PRESIDENT OF THE UNITED STATES OF AMERICA: There has
to be a credible international investigation.

SEN. JOHN MCCAIN, (R) ARIZONA: I don`t understand this president.

OBAMA: The eyes of the world are on Eastern Ukraine. And we are going to
make sure and we are going to make sure that the truth is out.

SEAN HANNITY, CONSERVATIVE POLITICAL COMMENTATOR: What`s next? He`s going
to put golf flags -- since he plays golf 180 times -- at half-mast?

OBAMA: We don`t have time for propaganda. We don`t have time for games.

MCCAIN: I do not understand.

OBAMA: And with you shoulder to shoulder in our grief and in our absolute
determination to get to the bottom of what happened.

UNIDENTIFIED MALE: The spirit of wanting to be in charge doesn`t seem to
be there.

UNIDENTIFIED FEMALE: Again, with the fund raisers.

HANNITY: What`s next?

UNIDENTIFIED MALE: President Obama briefly interrupted his scheduled
transportation speech.

UNIDENTIFIED MALE: That`s absolutely disgraceful -- the president of the
United States at a time like this...

UNIDENTIFIED MALE: After 9-11 President Bush, they`ll criticize him being
in a classroom that he cannot control. But what happens after he finds
something out.

HANNITY: What`s next? He`s going to put golf flags -- since he plays golf
180 times -- at half-mast?

GEORGE W. BUSH, 43RD PRESIDENT OF THE UNITED STATES: Stop these terrorist
killers. Thank you. Now watch it fly.

(END VIDEO CLIP)

SCHULTZ: Good to have you with us tonight folks. Thanks for watching.
What other information do you need?

You give the Republicans and the conservatives just a little bit of
information about an event and they will turn it on President Obama to
their advantage. Anything to destroy the President`s leadership, anything
to created doubt in the minds of everybody not just in the United States.

So, we start tonight with new details on the downed Malaysia airlines
flight 17. It has been confirmed that at least one American citizen was
onboard the aircraft shot down in Eastern Ukraine on Thursday. So, now
we`re going to have an international investigation. You know what I think?

This should the easy and easiest investigation the international community
has even been involved in. Who gave the order? Where did the missile come
from? Who is on site? Give me a name. Give me a unit.

And you know who can answer all those questions? Vladimir Putin. Where is
the outrage in the international community demanding Putin, directly
connected to this as I see it. I`m just guy watching the news and
listening to everybody talk. How can Putin not be directly involved in
this?

Can we answer that? Where`s the outrage? I don`t see enough of it. The
Dutch? No question about it. They had scores of people on that aircraft.
But the fact is -- this is more of an opening to beat up the President than
it is to find out exactly what happened here.

Who gave the order and why did they gave the order? That`s where the
international community needs to be, that`s where the UN Security Council
needs to be. And in the center of all of that is Putin. Now this
afternoon the President of the United States says that the missiles fired
at the plane came from an area controlled by Russian separatist.

(BEGIN VIDEO CLIP)

OBAMA: Evidence indicates that the plane was shot down by a surface-to-air
missile that was launched from an area that is controlled by Russian-backed
separatist inside of Ukraine. We also know that this not first time a
plane has been shot down in Eastern Ukraine. Over the last several weeks,
Russian-backed separatist have shot down a Ukrainian transport plane and a
Ukrainian helicopter, and they claimed the responsibility for shooting down
a Ukrainian fighter jet.

Moreover we know that these separatist have received a steady flow of
support from Russia. This includes arms and training. It includes heavy
weapons and it includes anti-aircraft weapons.

(END VIDEO CLIP)

SCHULTZ: So, what we`re seeing here is there have been other aircraft shot
down. So what do you say we try taking down a commercial airliner and see
what the world community is going to do. I have to bone to pick with the
President on the way he`s handling this because this is an international
crisis no question about it.

But who is going to take the lead to make sure that there is accountability
here? And where is this -- international investigation going to start and
where is it going to end? President Obama made it clear this was an
international tragedy. He called for an immediate ceasefire so an
investigation could take place.

(BEGIN VIDEO CLIP)

OBAMA: There has to be credible international investigation into what
happened. The U.N. Security Council has endorsed this investigation and we
will hold all its members including Russia to their word, in order to
facilitate that investigation. Russia, Pro-Russian separatist, and Ukraine
must adhere to an immediate ceasefire. Evidence must not be tampered with,
investigators need to access the crash site, and the solemn task of
returning those who are lost onboard the planes to their love ones needs to
go forward immediately.

(END VIDEO CLIP)

SCHULTZ: So, I think we`re in a position where we have to answer the
question, what happens if the Russians don`t cooperate? What happens if
someone doesn`t pay attention to the ceasefire?

This is where the international community needs to step up collectively in
a very immediate fashion and answer those questions. Who gave the order?
And why was this civilian flight shot down? Why were these citizens of the
world murdered?

The President went on to say the truth will be uncovered.

(BEGIN VIDEO CLIP)

OBAMA: No one can deny the truth that is reveled in the awful images that
we all have seen. And the eyes of the world are on Eastern Ukraine. And
we are going to make sure that the truth is out.

(END VIDEO CLIP)

SCHULTZ: President Obama also said this should be a wake up call for
Europe.

(BEGIN VIDEO CLIP)

OBAMA: This certainly will be a wake up call for Europe and the world that
there are consequences to an escalating conflict in Eastern Ukraine that it
-- is not going to be localized it is not going to be contained. You know,
what we`ve seen here is -- just in one country alone our great allies, the
Dutch -- a 150 or more of their citizens being killed.

(END VIDEO CLIP)

SCHULTZ: The President as I see it is doing everything he can in handling
the situation to this point. But there are more questions than answer and
starts with who gave the order. This is an international tragedy no doubt.
It means the international community must be responsible for the
investigation, in moving forward and holding people accountable.

Meanwhile, Republicans are already pushing to slam the President over his
handling of flight 17. Missing no political opportunity, Sen. John McCain
wrapped his media tour and that`s exactly what it was, his media tour on
Fox last night. He wasted no time slamming the Obama administration.

(BEGIN VIDEO CLIP)

MCCAIN: It`s just been cowardly. It`s a cowardly administration that
failed to give the Ukrainians weapons with which to defend themselves.
These separatist may not even have occupied and had access to these weapons
which apparently they got an airfield. And by the way it takes weeks of
training to make someone able to use that system. They`re clearly Russian-
trained and these separatist are the leaders of Russians as well.

(END VIDEO CLIP)

SCHULTZ: So, because President Obama is not doing it exactly the way John
McCain wants to see it done, he`s a coward. Not fair commentary. Charles
Krauthammer not to miss the opportunity also came out hammering President
Obama. Krauthammer, he thinks it`s the United State`s job to supply
Ukraine with weapons.

(BEGIN VIDEO CLIP)

CHARLES KRAUTHAMMER, POLITICAL COMMENTATOR: He`s had no reaction. He`s
had no reaction to anything that I can tell in the last six months. Look,
it isn`t as if we`re going to go to war with Russia, but we have denied
Ukraine lethal weaponry on the grounds that we don`t want to escalate the
conflict.

The rebels and the Russians are killing Ukrainians in large numbers by
shooting them out of the sky. The least the president could do is make a
damned decision for once in his life, announce that we are now going to
supply lethal weapons to assist the Ukrainians in defending themselves...

(END VIDEO CLIP)

SCHULTZ: Well, they clearly -- the conservatives are using this as an
opportunity to escalate the situation and pin all the blame on the
President. The President did make a decision. He chose not to escalate an
already dangerous conflict.

Meanwhile Republican thought leader Sean Hannity and compared President
Obama to Ronald Reagan. On September 1st 1983, Korean air flight 007 was
shot down by Soviet jets. Last night brain trust Hannity criticized
President Obama for not being more Reagan-like in his initial response.

(BEGIN VIDEO CLIP)

HANNITY: President Ronal Reagan, he responded with much stronger words
just over three decades ago. This is a good reminder for the White House.

RONALD REAGAN, 40TH PRESIDENT OF THE UNITED STATES: Before you deny about
the Korean airline massacre, the attack by the Soviet Union against 269
innocent men, woman, and children aboard an unarmed Korean passenger plane.
This crime against humanity must never be forgotten here or throughout the
world.

(END VIDEO CLIP)

SCHULTZ: Well, it`s a nice try Hannity. Reagan made that speech, 1, 2, 3,
4 days after the airliner had been shot down. President Obama had similar
words roughly within 24 hours after this Malaysian airlines disaster.

(BEGIN VIDEO CLIP)

OBAMA: Yesterday, the Malaysian airlines flight MH17 took off from
Amsterdam and was shot down over Ukraine near the Russian border. Nearly
300 innocent lives were taken, men, woman, children, infants -- who had
nothing to do with the crisis in Ukraine. Their deaths are a outrage of
unspeakable proportions.

(END VIDEO CLIP)

SCHULTZ: Well, the fact is President Obama is setting the stage to hold
Russia accountable, leading in the international community. These things
take time right? He`s imposing sweeping new sanctions that have been place
-- just put into place the day before this tragedy. And it will impact the
Russian economy no doubt.

Isn`t it interesting how the conservatives wanted sanctions put on Iran and
wanted tough sanctions put on Iran, but when the President does it Russia,
he doesn`t seem to get too much Republican support. The president has even
imposed sanctions on Russian missile companies that make long-range
surface-to-air missiles.

President Obama made clear today Vladimir Putin was not happy about the
latest rounds of sanctions. It`s a good thing President Obama is in the
White House, he`s taking a balanced and measured approach to a volatile
situation. If war hungry Republicans were in charge, bomb, bomb, bomb,
bomb Ukraine -- is that what we`d be doing Mr. McCain?

It would be a much different story if the Republicans were in charge. It`s
not shot from the hip but it is time for leadership and accountability.
The first question is, who fired the missile, who gave the order, and why?

Get your cellphones out. I want to know what you think. Tonight`s
question, "Will Republicans ever let politics stop at the water`s edge?"

Text A for yes, text B for no to 67622. You can always go to our blog at
ed.msnbc.com. We`ll bring in the results later on in the show.

For more, let me bring in Congressman John Garamendi of California who sits
in the Armed Services Committee. Congressman good to have you with us
tonight. In your estimation from what you know, what is the proper
reaction at this point?

REP. JOHN GARAMENDI, (D) CALIFORNIA: I think there`s at least two
different ways we need to go. First of all, we need to understand the
human tragedy that`s occurred here, the individuals, the families, the
children, those men and women that were spending their lives fighting HIV
aids. It`s a horrible human tragedy.

The second is, there needs to be thoughtful solution to the Ukrainian
crisis. This is one more escalation -- one more serious incident in what
is becoming an ongoing crisis in the Ukraine. And in order to deal with
that, we`re going to have to rally the European countries, the NATO
countries and others that are concerned about this and seek a diplomatic
solution to what is a problem that has to be dealt with.

Not by war which is the way it`s headed but rather by some sort of a
diplomatic solution in which the government of Ukraine recognizes what has
happened in the Eastern area, the desires of the people in Eastern side of
Ukraine and form a government that is inclusive and deals with the reality
of the multiplicity of ethnicity, languages, and economic interest.

SCHULTZ: Congressman, I think Vladimir Putin is at the center of this.
That`s my opinion. I believe he knows.

GARAMENDI: I agree.

SCHULTZ: You agree with that? I`m not trying to put words in your mouth
but...

GARAMENDI: No.

SCHULTZ: ... I believe I think he`s at the center of all of these. So,
from your perspective, if you believe that, what responsibility does he
bear in the international community as you see it?

GARAMENDI: Well, there`s no doubt that Putin is driving this entire issue.
He may from his perspective have good reason to do so. But inevitable (ph)
or resolve at his reasoning is a tragedy which we just had this last 24
hours, the shooting down of this plane and the deaths.

It`s also an inflamed war in Eastern Ukraine. Are -- there is another way
-- there has to be another way of solving this because this is not going to
be a happy ending if this continues on the path to war. So, yes Putin is
clearly behind this. He may think he has good reasons, but his good
reasons are creating an enormous crisis -- east, west, Western Europe,
eastern -- against the Russian...

SCHULTZ: Yeah.

GARAMENDI: ... interest here. We got to find a way of resolving this
within Ukraine in some political fashion in which the government is
representative of all of the interest and everyone with the eastern -- west
side of this country, have an opportunity to have their peace and their
economic progress.

SCHULTZ: Yes or no Congressman, do you support the President on these
sanctions on Russia?

GARAMENDI: Absolutely.

SCHULTZ: OK.

GARAMENDI: It`s the right thing for him to do.

SCHULTZ: OK. You`re reaction the Republican criticism of the President to
this point, it`s around the clock.

GARAMENDI: It`s so tiresome. If he wakes up in the morning and has
Cheerios rather than Wheaties, they criticize that decision. It`s --
everything he does, no matter what he does they`ll find a way of
criticizing it. It is not helpful at all.

SCHULTZ: OK.

GARAMENDI: And it doesn`t provide any real solutions to the underlying
issues in that country or anywhere else in the world.

SCHULTZ: Congressman John Garamendi, good to have you on the Ed Show
tonight sir. I appreciate your time. Thank you so much.

GARAMENDI: Thank you.

SCHULTZ: For more, let me bring in Lawrence Korb who was a Senior Fellow
of the Center for American Progress Action fund and Former Assistant
Secretary of Defense. And it was back in 1983, Mr Korb that you were of
the Assistant Secretary Defense when Flight 007 was shot down.

Are there any similarities here?

LAWRENCE KORB, CENTER FOR AMERICAN PROGRESS: Well, I think the
similarities are more than people realize because, yes, Reagan did speak
out strongly but didn`t do anything.

After -- And in fact, he was criticized by George Will back then basically
saying, "We wanted a President who`s tough not a dictionary". You know,
all the words he used.

Reagan`s genius was to be able to convince people, he was tough and he was
stand it up -- and not doing. Obama is much -- does the same thing but he
comes across more reason and -- I think it`s a much better thing.

SCHULTZ: When you hear that there`s going to be an international
investigation, what strikes you about that? What does that mean?

KORB: What it means is -- that we will get the international community
behind the steps that we will take in leading to deal with this as we have
ever since the whole Ukrainian crisis started. Because, you know, what
happened before was kind of us and some of the European is concern about
Ukraine but nobody was, but everybody flies on plane and they say, "My
goodness, you can shot down a plane. We`ve got to put a stop to this".

And the Europeans I think are going to be galvanized to put on tougher
sanctions than they have before because this hit them close to home.

SCHULTZ: What response really do you think Vladimir Putin bears at this
one (ph)?

KORB: Well, his responsibility was putting those weapons into the hands of
people who were not trained to do it. These people didn`t go through West
Point or anything like that or ranger school to learn how to use them.

These are, you know, separatist who kind of -- like militias who joined up
and they thought that they were shooting down Ukraine...

SCHULTZ: But wouldn`t he be the one to find out who gave the order and
how...

KORB: Well, he can now, but I think what`s going to happen he`s probably
talking to his commanders and say, "Well, what you were doing with these --
Ukrainians on the other side of the border?" And they`ll probably say, "We
didn`t tell them to do that". I mean, this is the last thing that they
wanted.

I mean, the great irony is he was calling up Obama to complain about the
sanctions and then somebody must have handed a piece of papers that said,
"Oh, by the way boss, you just shot down, you know, shot down a civilian
airline", which really complicates things for him.

SCHULTZ: Do you think that there`ll be more incidents like this?

KORB: No.

SCHULTZ: You don`t?

KORB: I don`t think so.

SCHULTZ: Why not?

KORB: Well, I think what`s going to happen is the Russians are going to
say, "Hey take", you know, "we`re going to put our guys there and take
these weapons", you know, it sort of like giving a loaded gun to a drunken
person is what you`re doing with this rebels.

They are, you know, because -- and they`re not going to playing people,
they`re not going to want to fly to Russia, you know, I mean -- so, I think
they`re basically -- this is not going to happen again.

SCHULTZ: What about the integrity at the international investigation?

KORB: Well, I think if they don`t -- if they try to undermine this
investigation, it will even turn the international community more against
them.

SCHULTZ: OK, Lawrence Korb, great to have you with us tonight.

KORB: Thank you.

SCHULTZ: Thank you so much. I appreciate your time.

Coming up, President Obama is asking for funding to save lives and create
American jobs on Congress just isn`t listing.

The Rapid Response Panel weighs in on the crumbling of our infrastructure.

But first, more on the investigation into the downing of Malaysian Flight
Airlines 17. Stick around, we`re right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

OBAMA: The United States stands ready to provide any assistance that is
necessary. We`ve already offered the support of the FBI and the National
Transportation Safety Board which has experience in working with
international partners on these types of investigations.

Our mediate focus will be on recovering those who were lost, investigating
exactly what happened and putting forward the facts.

(END VIDEO CLIP)

SCHULTZ: Welcome back to the Ed Show. President Obama doing the
boilerplate stuff, no doubt he says the United States will assist in the
investigation into the downing of the Flight Airlines -- Malaysia Airlines
Flight 17. Now, the UN Security Council is going for a full thorough in
Independent International Investigation into this -- murder is what it is.

Now, world leaders including Russian President Vladimir Putin are calling
for a ceasefire in the region to allow the investigation to take place.

Joining me tonight, John Goglia Former NTSB Board Member. Mr. Goglia, good
to have you with us here on the Ed Show tonight. How difficult is this
investigation going to be to get to the bottom of all of these when there`s
already some restriction for investigators to be there that they`re not the
first on the scene?

JOHN GOGLIA, FORMER NTSB BOARD MEMBER: Well, it certainly going to add
time to the investigation. But, you know, it`s not like we haven`t done
this before. That the tin kicker is that people who do and actually doing
investigation of the air frame, familiar with doing investigations to
airplanes that do not have recorders.

And also we`re in difficult places to investigate. I mean, we`ve had
airplanes on 12-14,000 foot mountains and we have to send the single man up
to -- to try to determine some facts of the accident that was one in South
America, eastern airlines (inaudible).

SCHULTZ: So, that in mind, how difficult is this investigation going to
be?

GOGLIA: Oh, it`s going to be up there in the scale. It`s not -- it`s not
going to be the most difficult but it will be at very high.

Some of the things that are going to happen is, we`re not going to get the
recorders. I think it`s accurate that they`re going to Russia. We`re not
going to get them. But we really don`t them. What we really need, it`s
the physical evidence, the metal. A missile that hits an airplane or
explodes next an extraordinary airplane is going to leave signatures on the
metal.

It`s hard to hide those signatures. The sequence of the way the airplane
broke up, some of that`s going to be etched permanently on the edges of the
metal, not on the face of the metal but on the edges that impact. And so,
there`s a lot of evidence that can be taken back.

I mean, basically it`s pretty clear that between the signal intelligence
and the signals that were intercepted that it was a missile. So, now it`s
trying to determine what kind of a missile it was. You know, we already
know to limited extent, an airplane that high. It`s only a certain number
of missiles that can get up there.

It`s not man-portable, they`re all track mounted and they`re big, heavy
missiles and you don`t go out and go the local armory and get those. So,
it`s going to be interesting.

SCHULTZ: Take us some more into the detail of the chemistry of the metal.
You`re saying that this will be not a heavy lift to understand exactly what
residue is on the metal, that investigators should by the crash site really
determined that it was a missile?

GOGLIA: Yes. Well, missiles take the airplanes down in one or two ways.
One is by direct hit which is a very difficult task especially if airplane
that`s up over 30,000 feet moving across to 600 miles on hour. And the
other way which is the one that happens most often is it gets very close to
the airplane and then explodes. And the airplane gets peppered with pieces
from the missile like a shotgun blast.

SCHULTZ: Yeah.

GOGLIA: All these high speed metal penetrates the surface of the airplane.
Some of it gets embedded in it, some of it passes well inside of it and
stays in that -- inside the airplane.

SCHULTZ: So.

GOGLIA: So those (ph) are the things that we`re looking for.

SCHULTZ: So, Mr. Goglia what is there to investigate? If you know it`s a
missile -- obviously it`s a horrific tragedy and a murder, what else is
there to investigate?

There is nothing the pilots could have done. Is there -- I mean, they
can`t dodge something like that.

GOGLIA: No, it`s nothing in the airplane. I think what we need in the
forensic side is -- what the world community needs is clearcut examples, of
a material example that the missile was in fact manufactured by the
Russians.

SCHULTZ: The situation in Eastern Ukraine very unstable. World leaders
are calling for a ceasefire, how credible do you think this investigation
is going to be?

GOGLIA: If they have access -- if the International Community has access
to the wreckage, it will raise the credibility considerably.

SCHULTZ: OK.

GOGLIA: Even though we know that they`re likely doing everything they can
to corrupt the quality of what`s on the ground, they can`t do it all
quickly.

SCHULTZ: John Goglia, Former NTSB Board Member, good to have you with us
and your insight tonight here on the Ed Show. Thank you so much.

Still ahead, Republicans would rather spend money on war than
infrastructure. How else theoretic (ph). The Rapid Response Panel weighs
in.

Plus Rush Limbaugh spends an international tragedy to fit his anti-Obama
narrative.

Pretender coming up, stay with us. You`re watching the Ed Show.

We`re right back.

(COMMERCIAL BREAK)

SCHULTZ: We will continue to follow the latest details on Malaysia flight
17.

Coming up, we`ll have more reaction from around the world and what the
crisis means for the global financial markets and the energy markets.

But first, a story here in the United States that impacts every American,
the threat of crumbling roads and bridges. Why don`t we do something about
it?

And of course Republicans are busy attacking President`s policies and
consistently pushing for increase military spending. American
infrastructure is in dire shape.

Rapid Response Panel weighs in right after this.

JULIA BOORSTIN, CNBC CORRESPONDENT: I`m Julia Boortsin with your CNBC
Market Wrap. Stocks resulting falling yesterday still up. The Dow Jones
Industrials sore 123 points, the S and P 500 adds 20, the NASDAQ Composite
is at 68 -- almost 69 points.

Earning from GE jobs at 13 percent in the most recent quarter. The results
were helped increase sales of jet engines and energy equipment.

And the Amazon.com shares right more than 1 percent today after the company
announced Kindle Unlimited allows unlimited rating of Kindle books for 999
per month.

That`s it from CNBC, first in business world wide.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ALEX WITT, WEEKENDS WITH ALEX WITT HOST: President Obama briefly
interrupted his schedule transportation speech yesterday after the numbers
of people have died on this plane for 38 seconds.

(END VIDEO CLIP)

SCHULTZ: Let me point out profoundly and this is a fact that more people
died on a bridge in Minnesota seven years ago -- 13 to be exact. More
Americans on that bridge than on the airplane that was shot down yesterday.
So, what`s important what do you spend your time on Mr. President? When
does this criticism stop? Never.

President Obama address the situation in Ukraine while he was in Delaware,
Thursday afternoon talking about infrastructure and of course conservatives
were quick to criticize the president for not being what they say sensitive
to the lost of life and continuing his speech on infrastructure.

Now, Republicans never want to invest in American infrastructure. They
don`t want to do it. And they just -- this is the new age of not doing
anything. But they love to spend your tax dollars on war. They got no
problem with that just to fool accounting here. Iraq war cost the United
States $1.7 trillion, and additional $490 billion in benefits owed to war
veterans. Those expenses can grow more than $6 trillion over the next four
decades accounting interest now.

You`re an average American, fair minded American most of us think that Iraq
was a mistake. Would it be a mistake to put any money in the
infrastructure so bridges don`t fall down and kill anymore?

That was a huge expense at war and republicans had really no problem with
it. They`re all about it. In fact it was off budget until the democrats
came into control in 2006 in the house. Meanwhile, Americans are dying
everyday on roads because our roads and bridges and ports are just simply
insufficient. Crumbling, that is the correct word to use.

August 1st, marks the 7th anniversary to the I-35W bridge collapse in
Minneapolis which did kill 13 people and injured a 145 other Americans.

Now, our nation`s infrastructure is crumbling and republicans just don`t
seem to care.

(BEGIN VIDEO CLIP)

DICK CHENEY, FORMER VICE PRESIDENT OF UNIDED STATES: Absolutely. Turn
around. The whole trend with respect to the United States military that
ought to be our top priority for spending not food stamps, or highways or
anything else.

(END VIDEO CLIP)

SCHULTZ: Not highways? Not highways. That`s what Cheney thinks.

This week President Obama is making stops around the country pushing the
Grow America Act. The $302 billion investment and that`s what it is would
provide four years of transportation funding to fix roads and bridges in
this country. The White House estimates that it would create a million
jobs but of course I`m sure the rightists would say those numbers are
phony.

Republicans are always pressing the president about job creation yet at a
time when we should be investing in our nation`s infrastructure,
Republicans are what -- are only interested in more sorties over Ukraine.
We ought to be just arming everybody who wants to fight. They got money
for all the wrong stuff, don`t they?

Join me tonight in the Rapid Response Panel Scott Paul, President of the
Airlines for American Manufacturing, also with us tonight Bob Shrum,
Professor of Politics at USC and Democratic Strategist, great to have both
of you gentlemen with us tonight. Bob, you first.

How heavy of a lift is this to build bridges that will not fall down and
kill Americans? Why are we are where we are on this issue?

BOB SHRUM, DEMOCRATIC STRATEGIST: Because we`re in the session of total
political deadlock. Every attack it can be made against the president is
being made against him. Anything he proposes, Republicans are going to
oppose. In fact that was on a radio panel earlier today and someone said,
Republican said, look no one is going to give the president credit for
anything. Now, there are two things that bear in mind -- that are
important to bear in mind here.

The first is that what Republicans are talking about, people like John
McCain in terms of Ukraine would significantly raise the risk that we would
have a real confrontation with the Russians that we can end up in a war. I
mean, if you have John McCain and he is better and he sounds like a war
monger, we can have a war without him.

Secondly, because Republicans will now move on infrastructure, they
wouldn`t even approve when John Kerry was in the Senate and Kay Bailey
Hutchinson was a bipartisan bill that create infrastructure bank that would
have leverage the relatively small amount of federal money from major
investments. They wouldn`t do that.

So now the president is going buy executive action trying to get states,
localities and the private sector involve in rebuilding infrastructure.
It`s a bad way to do it but it`s the only way to do it.

SCHULTZ: Since the tragedy seven years ago, coming up on August 1st, there
really has been no extra effort on the national level to make sure that we
do something about our crumbling infrastructure. Scott Paul, what could we
have built in the past 10 years if we didn`t spend so much money elsewhere
around the world? I mean how much money I guess would it really take to
make an impact in secure our infrastructure?

SCOTT PAUL: Well Ed, it`s a good question. And one thing to keep in mind
is that this doesn`t get any cheaper if you let it go. The bridge doesn`t
repair itself. The road doesn`t rebuild itself. And this cause to
accumulate over time. So the earlier you can get out it in an era when
we`re in historically low interest rates this is the time to do it even if
you have to borrow.

This is the time to rebuild our infrastructure and what I wish some of
these folks would understand is that we can`t have a strong country unless
we have a strong economy. And we can`t have a strong economy unless we
have a good way to get our people to work, to get our businesses to be able
to deliver goods and services in their supply chains, to bring goods and
services from other countries and from other countries in the United States
and to export our own. And it takes infrastructure. It takes a modern
infrastructure to do that.

SCHULTZ: Yes.

PAUL: Our own engineers give us a failing grade in some categories and a
barely passing grade in others but that`s not a-- that`s not good enough.
American always showed leadership.

SCHULTZ: Yes.

PAUL: . and it`s been actually Republicans. I mean, Abraham Lincoln, the
transcontinental rail road, Dwight Eisenhower, the interstate highway
system. Even Ronald Reagan expanded transit programs and said that they
have to be made in the United States of American but we`ve seen no
leadership on this over the last decade and it is cost our economy dearly.

SCHULTZ: It has never been a political issue until now because of
President Obama and their flat out hatred for the man. But, Scott, would
$302 billon make an impact. Would it have an impact? Is that a good
start, good number?

PAUL: You know what it would keep our head above water so that the problem
doesn`t get worse.

SCHULTZ: OK.

PAUL: We can rebuild some of the bridges but we need to do a lot more of
them. We got to pay for it too.

SCHULTZ: Bob Shrum, FOX and friends filed on President Obama for attending
his schedule advance instead of going back to the White House and
demonstrating what they say leadership. They cited George Bush is response
in 9/11 attack, I mean is that this really a baseless comparison. I mean
how outranges is this as you see it?

SHRUM: Well, this is totally outranges but the attack about anything, I
mean you have that wonderful piece of film at the beginning of the show
showing Bush saying the terrorist are going pay for this and then turning
to the golf tee and saying that watch the drive.

mean the fact and the matter is, is Barrack Obama said in 2008, a
president has to be able to do more than one thing at a time, and fighting
to invest in our infrastructure, fighting to create jobs, fighting to do
the right things for Americans is actually as Scott points out not just
part of what we have to do here at home it is key to our role in the world.
As JFK used to say, we can`t be strong abroad if we`re weak at home.

Secondly, the president is obviously doing everything he can to deal with
this Ukrainian situation, and right now, the truth and the matter is I
think with the sanctions rapture it up, put and face is a basic choice as
you`re going to find the way to back out, maybe with some face saving
federal arrangements in the Ukraine or and the alternative is you`re going
to go forward, the sanctions will get rapture it up and Russia will get
basically isolated from the global economic system.

SCHULTZ: So, and it is, Bob, instances and tragedies like this that divert
away attention for things that we need to do. I mean, we`re just not
brilliant on the basic. We don`t even do infrastructure as important
anymore at least that there`s a political party in this town that views it
that way.

SHRUM: Well, I think the country does. I think people understand that we
have to fix these roads and bridges. People understand that this would put
folks to work all over the country. People understand that it would
strengthen the economy. Republicans don`t care about any of that. What we
have now is not only a hatred for President Obama but a deeply ideal
logical Republican Party where even a sensible people are afraid of their
own shadows and what they want is a federal government that doesn`t do
anything.

You know Ed, as I think I said here before it`s very hard to run the
government if you hate the government. So these people have a solution.
They don`t want the government to run it all except to build bombs and
missiles and get us involve in wars.

SCHULTZ: Bob Shrum and Scott Paul, good to have you gentlemen with us
tonight.

SHRUM: Thank you.

SCHULTZ: Thank you so much.

PAUL: Thanks.

SCHULTZ: Coming up, stock market reaction in the wake of MH17 disaster.
Keep it here. We`re right back.

(COMMERCIAL BREAK)

SCHULTZ: And in Pretenders tonight obscene, Rush Limbaugh. The radio talk
show host thinks MH17 disaster could help the president`s image. Limbaugh
says the down jet is a convenient opportunity for the media to drop
coverage of the immigration deadlock.

(BEGIN VIDEO CLIP)

RUSH LIMBAUGH: I haven`t had CNN on all day. What do you bet they have
ruined everything? And they are covering wall to wall the Malaysian
Airlines flight shot down by a missile. This is -- I mean you talk about -
- I don`t want to appear to be callous here to folks but you`re talking
about an opportunity to abandon the bad Obama news at the border and no one
not suggesting anything other than how the media operates. Anyway, it`s
theory.

(END VIDEO CLIP)

SCHULTZ: Limbaugh is as screwed as they come, should day?. There is no
bad Obama news at the border. There is a humanitarian crisis in despite in
action from congress. The president is working to fix it. If Rush
Limbaugh thinks that he can spin an international tragedy into a PR move to
the president, he can keep on pretending.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show, news of the down Malaysian Flight MH
17 and shockwaves across the globe and global financial markets. Stocks
worldwide took a hit as investors asses the geopolitical implications of
yesterday`s tragedy. Reports of Israel were launching a ground offensive
against Hamas forces in Gaza only added to the uncertainty.

On Thursday, S and P saw its biggest one day drop since April 10th. The
NASDAQ saw it`s biggest one day point decline since May 15th. The Euro
dipped below a $1.35 for the first time since February.

Different story today. Today is U.S. stocks saw a rebound. President
Obama did his best to reassure the public, the economic impact would be
minimal.

(BEGIN VIDEO CLIP)

OBAMA: The world`s economy is integrated. Russia is a large economy.
There`s a lot of financial flows between Russia and the rest of the world
but we feel confident that at this point the sanctions that we put in place
are imposing across on Russia that their overall impact on the global
economy is minimal. It is something that we have to obviously pay close
attention to but I think treasury in consultation with our European
partners have done a good job so far on that issue.

(END VIDEO CLIP)

SCHULTZ: The president earlier today and of course the numbers. Here are
the numbers today. The Dow goes up 123, it`s at 17,100.18. S and P moves
20 and of course the NASDAQ goes up 68.70.

The reality the tensions with Russian could have far reaching effects on
the global economy. Well, it did in today. It all comes down to energy
supply. Russia supplies about 30 percent of Europe`s natural gas. More
than half of which is transported through Ukraine. So despite the
sanctions, there`s no doubt Russia still holds a very important card here.

Joining me tonight, David Cay Johnston, contributing editor for News Week
and Pulitzer Prize winning journalist. Mr. Johnston, good to have you with
us tonight. You agree with President Obama`s assessment and your analysis
on why the market bounced back the way it did today in 24 hours.

DAVID CAY JOHNSTON, CONTRIBUTING EDITOR, NEWS WEEK: I didn`t personally
exactly right , Ed. And the reason the market bounced back is you`re
seeing here the effects of all the speculators who dominate the market.
Remember the market is driven today and largely not by investors who are
there for the long hall but speculators who sometimes are in and out of
stock in less than a second.

So they saw opportunity and sold or both as advantage their position and
the market came back today and it`s within an eyelash of it`s all time
hike.

SCHULTZ: So the bottom line here is, there`s plenty of energy in the world
which is a speculator`s dream.

JOHNSTON: Yes. And in fact right now, the most money that`s been
speculating on oil future`s prices is in the market. So the speculators
here want to do whatever they can as speculators to enhance their profits
underlying this though there is no fundamental shortage of energy and
certainly not here in the United States.

SCHULTZ: What do you think these sanctions -- what kind of impact do you
think they`ll have on Russia?

JOHNSTON: Well, you know.

SCHULTZ: If you got banks who were -- or grabbing capital and being tight
with the dollar and not allowing the energy sector and the military arm
sector to do what they normally do -- access to capital and such stuff as
that, frozen assets, what does that mean?

JOHNSTON: Well, we`re trying very hard make it painful for Putin which
he`s obviously up to which is creating or reconstructing an empire. The
Obama administration`s actually been quite smart and effective in how it`s
handled financial tools but those tools have limits.

We certainly do need to be very worried that Putin or we or someone else
will make a fundamental error enrolling up in what we don`t want to be in
unless for some of the crazies that you`ve had clips under your show who
think bombing people in war is a good -- it`s not. It`s very bad for
business as well as everything else.

SCHULTZ: So what kind of effect is this going to have on Europe saying
that their relationship and dependence and access to Russia`s natural gas
supply? I mean this is Russia`s economy. So if they have sanctions, they
may have to maybe even lower the prices of some of that natural gas and
make sure it keeps going to where they`ve been selling it.

JOHNSTON: Well, to maintain his position and expand his empire, Putin
needs the revenues from the natural gas, in particular from oil that
they`re exporting. So he clearly has to play his game that he doesn`t
undermine his own interests.

SCHULTZ: So he becomes somewhat of a desperate supplier then, doesn`t he?

JOHNSTON: Yes. Yes. Absolutely. And he`s a very, very strategic
thinker. So he`s not going to behave in a rash way that some of people you
had clips of honor suggesting that President Obama should. He`s going to
think long-term and strategically, not short-term and politically.

SCHULTZ: And your thoughts on the actions by the Israelis on the military
offensive in the Gaza Strip.

JOHNSTON: Yeah.

SCHULTZ: No effect on the world markets there either.

JOHNSTON: I don`t` think so. I mean I think there`s going to be a huge
effect on the nature of war where we end up with boy`s on the beach playing
soccer being killed despite very advanced technology and weapons. But I
don`t see that unless it erupts in a broad wide war having a significant
impact on markets.

SCHULTZ: And quickly, David Cay Johnston, isn`t this evidence that we`re
really in a bull market. I know its generic talking what not and it`s used
a lot but we just had an international crisis in the last 24 hours and the
markets still rolling.

JOHNSTON: Yeah. There are huge profits being rolled up even laborer and
workers are hurting so there`s no other place for that money to go pretty
much but into the stock market or into inflating housing prices and we`re
seeing a little bit of evidence to that.

SCHULTZ: David Cay Johnston here on the Ed Show. Appreciate your time,
sir. Thanks so much.

That`s the Ed Show. I`m Ed Schultz . Politics Nation with Reverend Al
Sjharpton starts right now. Good evening, Rev.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY
BE UPDATED.
END

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