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GLENN BECK

What`s Going on With Wall Street?; How Big is the Homegrown Terror Threat?; Hottest Back to School Item: Bulletproof Backpacks

Aired August 16, 2007 - 19:00:00   ET

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


(BEGIN VIDEOTAPE)
GLENN BECK, HOST (voice-over): Tonight, is the housing market on the verge of collapse? I`ll tell you why the current mortgage meltdown may just be the beginning.

And could there be new legal woes for Dog the Bounty Hunter? We sit down with Dog and Beth to take about their latest troubles.

And wondering what this year`s must-have school supply is? Would you believe a bulletproof backpack? Yes, kids going ballistic over these babies.

All this, and more, tonight.

(END VIDEOTAPE)

BECK: Well, hello, America. You enjoying a nice relaxing summer, watching your 401(k) and your home value plummet? Yes, me, too.

Quite a wild day on Wall Street today. The Dow was down over 340 points this morning. And then it recovered, suspiciously, around 3 p.m. in the afternoon. Please go back and see yesterday`s "Real Story".

With the reports that new home construction is now at its lowest level in over a decade, along with continued worries about sub prime loans, there might finally be a realistic sense of fear in the market place.

So here`s the point tonight. If you`re a home owner, or an investor, you should not be living in a state of panic. But you also shouldn`t be living in a state of denial. And here`s how I got there.

I believe to be successful in anything, you just can`t be a lemming that`s just following others off a cliff. You have to stop. You have to look around. You have to be aware of exactly what`s going on. And if things don`t make sense or even seem logical to you, then follow your gut and not the crowd, because something probably is wrong.

On July 16, just three days before the Dow hit its now infamous all- time high, we did a "Real Story" on this program about the stock market. I quoted an analyst that day who was predicting a quick run to Dow 15,000. But something didn`t smell right to me.

How, I asked, could the market be going up every day when nothing feels right? Gas prices are up. The housing market stunk. Everybody from al Qaeda to Iran is threatening us.

The analyst we had said, "Oh, come on, Glenn." He thought I was crazy. "Please, this isn`t 1999. This isn`t Pets.com. These companies," quoting, "have real earnings"

Yes, I get it, Mr. Wall Street. Talk down some more to me.

This may not be 1999. We may not have WorldCom or eToys, but we have something just as bad and perhaps worse: a flaw in the economic fabric of this country called sub prime loans.

Just like back in the Internet age, companies and investors today have once again let greed get in the way of common sense. And now we`re all about to pay the price.

You know, we can talk about how bad it`s going to get, and we will in a second. But first, let me get an update on exactly where we stand.

Susan Lisovicz is at the New York Stock Exchange now.

Susan, what is the mood there and what happened today?

SUSAN LISOVICZ, CNN CORRESPONDENT: Well, it was a wild day even by Wall Street standards.

Mr. Beck, and I might compliment you on your very astute observations about the U.S. economy.

BECK: You`re kidding me.

LISOVICZ: I am not kidding you.

BECK: Wow.

LISOVICZ: It was quite succinct, as well.

Well, you know, Wall Street, Glenn, has never been accused of subtlety. But today the drama was especially rich.

Four weeks to the day that the Dow closed at 14,000 for the first time, the blue chips officially entered into a correction, a decline of 10 percent from recent highs. So did the NASDAQ and the S&P 500.

The Dow`s sixth straight sell-off fueled by more bad news from the housing sector. New home construction in July dropped more than 6 percent, worse than expected, to the lowest level in ten years.

Meanwhile, the nation`s largest mortgage lender, Countrywide Financial, said it was forced to tap into an $11.5 billion line of credit. This is the result of the rising default in delinquencies the company had already disclosed.

But the drama didn`t end there. The Dow, which had plunged as many as 342 points, came back to life. A veteran trader told me earlier today that Wall Street is the only business in the world where you can have a fire sale with no interest for buyers.

Well, clearly some intrepid bargain hunters ventured out late today. The Dow entered into positive territory in the final moments of trading but couldn`t hold it. The blue chips closed down 16. The S&P 500, which yesterday wiped out all of its gains for the year, added 4.5. The NASDAQ repaired most of its losses but still down 8.

And the drama, Mr. Beck, begins all over again tomorrow at 9:30 a.m. Eastern.

BECK: It sure does. Susan, we`ll be watching. Thank you very much for the update.

LISOVICZ: You`re welcome.

BECK: Now, during the Great Depression, my grandfather learned a lesson that he taught me when I was very little. He said the people in the Great Depression who survived, the ones who made money, were the ones who had money to buy when everybody else was losing their shirt and selling. It was one of the greatest lessons he ever taught me. And he taught me a lot.

I understand what we`re seeing right now may be nothing more than a healthy, natural market correction. But I`ve got to tell you, my gut doesn`t tell me that. We have to at least acknowledge that it may be something far worse.

What CNBC`s Jim Cramer tried to do last week was -- well, tell us about this. It was a passionate tirade imploring the Federal Reserve Bank chairman to alleviate the pressure on the lenders by cutting interest rates. Watch this.

(BEGIN VIDEO CLIP)

JIM CRAMER, CNBC: Bernanke needs to focus on this. Alan Greenspan told everyone to take a teaser rate and then raised the rate 17 times. And Bernanke is being an academic. It is no time to be an academic. It is time to get on the Bear Stearns call, listen, open the darn Fed window. He has no idea how bad it is out there! He has no idea! He has no idea!

ERIN BURNETT, CNBC: Cramer.

CRAMER: I have talked to the heads of almost every single one of these firms in the last 72 hours, and he has no idea what it`s like out there! None!

No, we have Armageddon. I wouldn`t try to cause this. We have Armageddon. In the fixed income markets, we have Armageddon.

(END VIDEO CLIP)

BECK: OK. If Cramer is right and if this is Armageddon and nobody will admit it, then this stock market drop and the housing slump may literally be the tip of the iceberg.

So let`s, please, not be lemmings here. Let`s step back and look what it really could mean and what the worst case scenario could really look like.

Peter Schiff is the president of Euro Pacific Capital Inc. He is the author of "Crash Proof: How to Profit -- How to Profit from the Coming Economic Collapse". This is a book -- this guy is not a nut job. This is a book that has basically predicted the current housing and hedge fund disasters.

Peter, give me the big picture here. We`ve got a credit problem.

PETER SCHIFF, PRESIDENT, EURO PACIFIC CAPITAL INC.: You`ve got a pretty good grasp of it. You`ve got to go with your gut, you know. Your gut is right.

And it`s not just sub prime. You know, it`s not just people with bad credit that overpaid for houses and committed to mortgages that they couldn`t afford.

And what we`re seeing right now around the world is the people who have been lending Americans money, whether they`re hedge funds here in the states, or overseas central banks, or foreign banks. They`re discovering now that Americans simply cannot afford to repay these loans.

And they`re also discovering that the collateral behind these loans, residential real estate, is not worth anywhere near the amount of money that they lent out.

BECK: OK. So we`ve got a couple of things going on. First of all, I mean, if anybody remembers back to 9/11, what did the president say we could do as Americans? He said go to the mall. So we`ve got a bogus economy.

SCHIFF: Exactly. You know, that`s why it`s so disingenuous when you see people on Wall Street or the government say that the economy is sound, that what`s happening is not going to impact the economy. Of course, it`s going to impact the economy.

Our whole economy, our artificial bubble economy has been based on consumer spending. And they`ve been spending borrowed money, principally from abroad.

And what`s happening now, as I said, is lenders are losing a lot of money, and they`re not going to lend to Americans anymore. It`s going to be very difficult for Americans to get a mortgage going forward. They`re going to have to put a down payment. They`re going to have to prove that they can pay the loan, not just for a few years, while as a teaser rate, but they`re going to have to prove that they can comfortably handle the payments, even when they reset the higher rates.

And today`s housing prices are completely inconsistent with legitimate lending standards. So the only way anybody is going to be able to buy a house in the future is if the price of houses collapse. And that`s what`s going to happen.

BECK: OK. You actually say that everybody hasn`t caught up to this, that our houses are worth about 30 percent or 40 percent less than we all think.

SCHIFF: Exactly.

BECK: Tell me, is this 1990? Is this 1979? Is this 1929? What`s coming our way?

SCHIFF: Well, I don`t know what it is. It`s going to be pretty bad. I mean -- and you mentioned...

BECK: Forgive me. Are we talking Jimmy Carter years? Are we talking Hoover years?

SCHIFF: Well, it`s going to be worse, certainly, than the 1970s. We -- we`re going to have to pay the price for years of living beyond our means, while we were spending all this money and consuming, our real industrial base was disintegrating beneath our feet. So we`ve been living off of borrowed money and an artificial standard of living, and that`s all going to come to an end.

Just like an individual, if you quit your job and live off of a credit card, eventually, you know, the bills -- the bills come due, and you have to downsize your lifestyle. That`s what`s going to happen. But you know, you talked about the 1930s, where if you were in cash, you did well.

Unfortunately, this time around, our money, the U.S. dollar, is going to collapse, as well. So simply having money in the bank...

BECK: Hold on. Hold on. Hold on just a second. Peter, you honestly are sitting here making the prediction that the U.S. dollar is going to collapse?

SCHIFF: Yes. I think it`s going to lose at least 50 percent of its value, maybe more.

BECK: In what time period?

SCHIFF: It could happen over the course of just a couple of years. Maybe even sooner.

BECK: I`ve got 30 seconds, and we could spend an hour on this. What exactly is the average person supposed to do?

SCHIFF: Well, I mean, what you could do is get rid of your dollars while you can. I mean, that`s what I`m helping my clients do at Euro Pacific. We`ve been doing that for years. We`re selling dollars, and we`re accumulating foreign assets. We`re investing in Asia and Europe. We`re trying to get rid of a currency that`s on the verge of a collapse.

BECK: Holy cow. Peter, thank you very much.

SCHIFF: Coming up, home-grown terrorists now, who could be in cafes and bookstores. They could just as easily be radicalized in mosques. Really? Thanks, NYPD. Can anybody elaborate on this? When it comes to our safety, sometimes it seems more is less. I`ll explain that in a second.

And it`s back-to-school time. How to make sure your kids are safe. I can`t believe we live in this country in this time period now. How about bulletproof backpacks?

Plus, Duane "Dog" Chapman, a twist to his legal troubles with Mexico. Why the Dog is not out of the pound yet. Mexico says forget about it, but not the U.S. government. Stick around. Dog joins us in the "Real Story".

(COMMERCIAL BREAK)

BECK: Well, coming up, there is a new wrinkle in the Dog the Bounty Hunter legal troubles that you`re not going to believe. The Mexican government has dropped the charges, but now the U.S. government doesn`t want to.

We`re going to talk to Dog about it in just a minute. You don`t want to miss it in the "Real Story."

But first, I told you yesterday about the principal of that New York City new Arab school that quit last Friday. She was replaced by a Jewish woman. Well -- surprise, surprise -- at least one prominent member of the New York Muslim community isn`t happy about this.

Quote, "It doesn`t make any sense. It`s like somebody spit in the face of Arabs."

You`re kidding me, right? Is this how closed-minded and intolerant the idea is behind this taxpayer-funded school really is? I think that man proved my point better than I ever could have.

Now, jurors have reached a verdict on the trial of Jose Padilla. This is a Muslim convert and U.S. citizen who was charged with supporting al Qaeda and other violent Islamic extremist groups overseas.

He was found guilty today on terror charges. He faces life in prison when he`s sentenced in December. More importantly, he is proof positive that home-grown terrorism is a very real threat in this country. It is something that we must begin to take seriously; our very survival depends on it.

But authorities in charge of keeping us safe and informed, I believe, are dropping the ball, because they`re only giving us half the story.

Yesterday, the NYPD released a report on the American-based terror threat. It said that radicalized Muslims are no longer operating solely out of mosques. Instead, New York City Police Commissioner Ray Kelly warned that they now frequent cafes, student associations, butcher shops and bookstores.

Well, guess what, crime fighting super geniuses, I buy lamb chops and magazines like a lot of other people. When you tell us that terrorists are essentially everywhere, that`s not really helpful. It`s confusing. And quite frankly, I think it freaks a lot of people in this country out.

If this is the last step in the police process, reports like yesterday do more harm than good.

Commissioner Ray Kelly also said that potential terrorists are not on the law enforcement radar. And they look, act talk and walk around like everyone around them. Well, based on that criteria, me or Mike the camera guy or the guy in the mail room are all potential terrorists. That kind of information is worse than no information at all. You need to give us more.

I understand that law enforcement is playing a whole new ball game here when it comes to fighting this brand of enemy, but you can`t tell us that everybody with a beard is a potential threat. That`s counterproductive.

However, if it is the beginning of some real work and some real information without the PC crap, and it`s a step towards discovering the truth and talking about the truth, great. Forget the PC consequences. Give us the information that is specific enough and meaningful enough so we can help you find the bad guys.

Brian Ross is the chief investigative correspondent for ABC News. Brian is an amazing guy who is out on the front of this. He has reported now there are two dozen terror clusters in the northeast alone.

Brian, how many people are in had this cluster, or these clusters, and how many clusters are there all across the country?

BRIAN ROSS, ABC NEWS: Well, it`s at least two dozen, Glenn. And we`re told they`re between 7, 8, and 15 what they call clusters, some farther along with the New York Police Department calls the path to terrorism than others. But they`re all on a path that the NYPD says could lead to terror acts.

BECK: OK. Are these -- and I don`t mean to minimize the guys with the Fort Dix case, but that was kind of, you know, a group of guys sitting around their living room going, "Yes, I`m pissed off, too."

ROSS: Right.

BECK: There`s a difference between those and the hijackers that are being recruited and being trained, et cetera, et cetera. Are these kind of guys that have just been disenfranchised or are these organizations?

ROSS: Well, you know, if you read that report, you see that it sort of starts with the disenfranchised guys, the guys sitting around, complaining about life in general. And then the path leads them inexorably to attacks, according to the NYPD.

And so it`s somewhere between Fort Dix and Muhammad Atta. And the problem for law enforcement is trying to figure out when does that time come when they go from gripers to people who are prepared to act.

BECK: And Brian, I`ve got to tell you. First of all, let me ask you, why do you think you`re one of the only people in America following this? You`re the only reporter that I see constantly on mainstream television that`s actually doing this. Thank you for that. And why do you think that is?

ROSS: Well, I appreciate that. But I watch CNN all the time, and they`ve got some pretty good reporters there, as do our competitors.

But we are tracking this very closely. We have been really even before 9/11 when my colleague John Miller was off to interview Osama bin Laden. This is something we care about. And we think it`s important. And, you know, I don`t want to become sort of, you know, a professor of terror related events, but we`ve taken a close look at it. We`ve studied it hard.

BECK: Well, here`s my biggest problem is, you know, I hear about -- you know, for instance, Fort Dix, that these guys were -- were caught up with some radical cleric. But I never saw the radical cleric.

I don`t know who the radical clerics are. We`ve got audio and video here coming up in a minute of one of the radical clerics here in America that will melt your brain. This guy has been invited to the White House.

But how come we don`t -- we`re not getting specifics? Where are the mosques? Where are the hot spots? Where are these coffee shops? Is this important information and how come we`re not getting it?

ROSS: I think it is important information. It`s very hard to crack. I think we know the locations of some of the places here in New York City. These are tough places. We try ourselves to sort of go there and have been rebuffed by the people.

I believe that those places are oftentimes infiltrated. Certainly, they`re closely watched. The FBI and the New York Police Department, I think they have a good handle on where some of these -- what the NYPD calls the incubators of radicalization are. And that includes some mosques.

And this presents a problem for police in trying to investigate terrorism without trampling on people`s rights to religion.

BECK: Where do you believe the biggest hot spot is for extremism here in America? Is it Arizona? Is it Dearborn, Michigan? Is it New York? Where is it?

ROSS: Based on what I know, it`s in one of the New York City boroughs.

BECK: Brian, thank you very much. And thank you for all of the work that you do. Appreciate it.

ROSS: That`s very flattering. Thank you.

BECK: Coming up, possibly the most important back-to-school purchase you can make for your kids. Believe it or not, their book bag. Check out the model that stops bullets. Do we really live in this world?

Then Dog the Bounty Hunter, after being cleared of charges in Mexico, new complications from the U.S. government. What is going on with the Dog? We`ll talk to the Dog himself. The "Real Story" coming up.

(COMMERCIAL BREAK)

BECK: Well, the Virginia Tech and Columbine school shootings are a constant reminder that our children, even though they`re at school, are not safe.

On this program, in upcoming weeks, I`m going to bring you a series of stories about what I believe is one of the largest threats to our nation and our schools, the threat of Islamic terrorists in our schools.

Which is precisely why you may want to do the insane, and arm your children, believe it or not, with a bulletproof backpack. Lucky for you they exist. I can`t believe we live in this world.

Joining me now are the creators of the Ballistic Bookbag, Mike Pelonzi and Joe Curran.

First of all, you guys have one of these book bags with you?

MIKE PELONZI, MJ SAFETY SOLUTIONS: We do.

JOE CURRAN, MJ SAFETY SOLUTIONS: We have two.

BECK: Can you show it to me?

CURRAN: Yes.

BECK: OK. So they look like regular backpacks.

PELONZI: Yes. That`s what they are. Regular backpacks with a ballistic panel on them.

BECK: OK. And you -- you look like you could kill me with your bare hands, which isn`t easy. There`s a lot of fat here and not even any bones or airways.

But you designed this, why exactly?

PELONZI: Well, it all started -- we`re two concerned dads. After the 1999 Columbine shooting. We`re both fathers of two. We looked into different products and items out there to keep our children safe in the school environment where they shoot them. And we found there wasn`t anything.

BECK: OK. I -- I`ve got to tell you, first of all, I mean, America, wait until you see this series that we`re going to -- we`re going to show you here in the next couple of weeks.

But there has to be people out there, the majority of people -- I mean, I even think you`re darn near nuts for this. But you`ve put it out on the market, and they`ve actually asked you to speed up production because they believe, whoever the people are that are actually selling this for you, believe there`s going to be a huge demand for this?

CURRAN: Well, it`s just another safety product that`s like anything else, whether it`s a bicycle helmet (ph) or a smoke detector. It`s another device that you give to your kids to help them keep safe.

BECK: But you didn`t see your kids -- do you...

CURRAN: Absolutely. Of course.

BECK: What was the conversation like? Doesn`t this freak them out?

CURRAN: Well, I tell you what freaked them out more was getting them to talk about stranger danger, about some guy trying to grab my daughter and take her away from my family. That was a very scary one.

And this was a little bit easier, because they`re already going through the drills of lockdowns and metal detectors, and checkpoints at school. So they`re already going through the different things. Just another -- another part of society.

BECK: Right. And so all they do is they just have to hold it up. There`s a shooter there, they just hold it up to themselves?

CURRAN: It depended on the maturity of the child and how old the child is. You can get as expensive as you want with your dialog. And hopefully you have good dialog with your child.

If it`s a smaller child, you don`t need to say, if he comes in with a gun and starts shooting, you can say if there`s a bad man and he`s doing something. You hold this between you and him, that`s all. It depends on how good it is.

BECK: Where do you get -- we only have a couple seconds. Where do you get them and how much are they?

CURRAN: You get them on MyChildsPack.com. They`re $175. And the store that`s selling them now, Mangood (ph) Sports Goods in Davis (ph). They`ve already sold out. And we`ll be resupplying them shortly.

BECK: Are they heavy?

PELONZI: They aren`t any heavier than a regular backpack. The panel, which is the panel, this only weighs 20 ounces. And it`s sewn into the back of the backpack.

BECK: All right. Joe, Mike, thank you very much.

PELONZI: It`s only 20 ounces. That`s all.

BECK: OK.

PELONZI: Thank you very much.

BECK: Coming up, Dog the Bounty Hunter, cleared of all charges brought against him by Mexico. But the U.S. government says, wait, not so fast. The "Real Story," next.

(COMMERCIAL BREAK)

BECK: Well, welcome back, America. This is the "Real Story," where we try to cut through the media spin and try to figure out why a story is actually important to you.

Free at last, free at last, thank God almighty he`s free at last. That is what Dog the Bounty Hunter was thinking until this afternoon. The "Real Story" is, Dog the Bounty Hunter believed that his troubles with the Mexican authorities were finally behind him. That`s why he was coming on this program tonight to talk about moving on with his life and putting more bad guys behind bars. But it looks like that is far from the case.

Last week, the good news came that Mexico was dropping all charges against Dog and his family. They were after him for kidnapping, after they went south of the border to nab convicted serial rapist Andrew Luster that was walking the streets of Mexico. It seemed like common sense was going to prevail and that Dog and his family would finally be able to get back to business and move on from these absurd charges.

But just a few hours ago, Dog and his wife, Beth, received notification that the U.S. government -- not the Mexican government, the U.S. government -- still has a problem with him. Ironically, Dog has just written a new book, "You Can Run, But You Can`t Hide." It seems the final chapter of Dog`s story still is yet to be written.

Joining me now with a full update is the Dog himself, Duane Chapman, and his attorney, Jim Quadra. Dog, first of all, how are you holding up? Better yet, how is Beth holding up under this?

DUANE "DOG" CHAPMAN, BOUNTY HUNTER: Well, Beth is, as you can see, not present right now. She`s not holding up very good. She`s at home very distraught. She`s crying. You know, we`re in Washington, D.C., right now, my brother, and she`s very, very upset.

BECK: And how are you doing? This must have come as a complete shock to you.

CHAPMAN: Well, you know, I`m doing OK. I mean, the faith is in here. You know, that`s all I can say, but absolutely shocked. Mexico did the right thing, dropped completely all charges. Glenn, it says at the very bottom of the 15-page order that "I hereby order absolute freedom for all the Chapmans," my brother, my son, Leland, and I. And now America does not want to drop the charges. I mean, they want to -- I don`t know what`s going on.

BECK: Jim, Jim, what is this all about?

JIM QUADRA, DOG`S ATTORNEY: Well, as you have stated earlier, we obtained an order from Puerto Vallarta dismissing all charges on July 27th. And yesterday, our attorney in Hawaii, Brook Hart, went to the court, presented the order, and talked to the U.S. attorney, and talked about dismissing the charges altogether the extradition petition that is pending in Hawaii in federal court. And the U.S. attorney`s office informed us that they are not willing to dismiss the charges voluntarily, and now we`re forced to file a motion in federal court to bring the authorities before the judge that entitled us to dismissal of the extradition.

BECK: Wait a minute. Wait a minute. I can`t be understanding this right. You need to bring the Mexican authorities in front of...

QUADRA: No, I meant authorities as in points of authority, legal terms. I`m sorry. It means briefing. It`s putting forward the statutes, the cases that apply in this case. And we have that, and we can present it. But our view is, the U.S. attorney`s office had that at their disposal, as well. And before they proceed with this extradition, they should review the materials themselves, review the order in Mexico, review the treaty and the law, and I think, if they did that, they would voluntarily dismiss this case.

BECK: Well, wait a minute. If there`s nobody asking for him to be sent back, why are we wanting to wrap him up in a package? Again, what`s going on with the U.S. government?

QUADRA: Well, you`d have to ask them directly. Our view is the charges have been dismissed in Mexico. That is an immediate order that applies now. They can go to Mexico. They can travel in Mexico. But apparently, in the United States, if Dog wants to travel, he has to inform the federal court in Hawaii where he wants to go.

BECK: Dog, let me ask you this. Does this shake your faith -- I mean, here you were on the wrong side of the law for a long time, and you turned your life around. Now you`re on the right side of the law. Does this shake your faith at all in our system?

CHAPMAN: Well, Glenn, you know, something`s going on here. I mean, what have I done that upset them? But I can see, you know -- and I am all for the president, and I am an American, you know, red, white and blue completely through. But if you look at some of the people in his administration, you know, the guy that was supposed to be protecting children were out dating them. You know what I mean? I mean, there`s so many things that have happened in this administration and is falling apart.

And there`s one person, you know, allegedly that doesn`t want to set me free. I can`t believe this. I mean, the Mexico government said, "Case dismissed." Complete freedom, but there`s someone in the United States government that doesn`t like me.

Now, I`m in Washington right now. I`ve met Secret Service, CIA, ATF. There`s no fugitives here, by the way, there are so many cops. But every single one of them are like, "Go get them, Dog, we`re very proud of you." But there`s someone up there in the White House that doesn`t want us free. We didn`t mean to embarrass anybody by catching these fugitives on TV.

BECK: You shouldn`t have to worry about embarrassing -- I mean, for the love of Pete, I learned it from your book that some of the names that we know from the Wild West were bounty hunters, and it was because they didn`t have time and they couldn`t get the job done. You get the job done. That`s not embarrassing. That`s using the system. That`s why we have rewards.

CHAPMAN: Absolutely. And yesterday, Beth and I went to Abraham Lincoln`s statue. And Abraham Lincoln was one of the presidents who signed the bounty hunter bill, if you call it, into effect.

I just don`t know. I have made someone mad up there. You know, remember this, Glenn, remember that the original warrant said "deprivation of liberty." That`s a six-month to four-year sentence. Remember that the feds came in my house with kidnapping and conspiracy.

BECK: The U.S.

CHAPMAN: That`s a 25-year sentence, correct. Now, suing them and all that, I didn`t want to do back then. I said, you know, the janitor misinterpreted it. But, you know, what is wrong? I mean, number one, they took us out wrong, brother. OK, we were not wanted for kidnapping or conspiracy. We were on a $1,500 bond. We`re now on a half-a-million- dollar bond in America. You know how we always say, you know, Mexico is a poor state? Well, who`s making the money here? America.

BECK: Jim, is there a chance that this is just a clerical thing, this is just procedural, or is this something more?

QUADRA: Well, it`s hard to say. Clearly it`s not clerical, because the U.S. attorney`s office has had an opportunity now to review the order we obtained in Puerto Vallarta. We`ve provided a translation of that. It clearly states, as Duane has said, that the Chapmans have absolute freedom. I don`t think it`s hard to misunderstand that, so there`s no clerical error. The U.S. attorney`s office should review the treaty.

BECK: You know, Dog, I`m reading your book, and it was on chapter 15, and it talks about, "My parents fixed up their basement for me to live in when I got back from prison. I spent the first week drunk and high, hardly ever got out of bed except to pee and eat." Your wife had left you for another man, a friend of yours, and you learned something from your mother. What did you learn? What did she say to you?

CHAPMAN: Well, she said, you know, just keep on moving, that you`re not in love with her, you`re in love with the memory. You know, just keep on going, keep on struggling, you`ll make it, son. There`s something else for you in life. You know, son, start practicing your signature because some day you`ll be signing autographs.

BECK: But you wanted to kill the guy that your wife left with.

CHAPMAN: Well, absolutely. I`d just been released from prison where killers are, you know what I mean? So absolutely.

BECK: And your mother said to you, "Vengeance is mine."

CHAPMAN: She said -- correct. She said that, you know, God gives us everything, his house, his son, his love. The one thing in the Bible God does not give, of course, it says "Vengeance is mine," sayeth the lord. So she said, if you go do this, Duane, right now you`re putting a gun to God`s head and robbing him. And right there, that got to me. She was absolutely right. So I forgave the guy.

BECK: I mean, you`re a decent human being. You`re a good guy. But there must be times now through this whole thing where you say, "Man, I`m really angry." And you`re a bounty hunter. You`re a guy that`s used to going out and fixing things. Is there a time, is there a great deal of time in your day that you think, "I`m just going to fix this"?

CHAPMAN: Well, you know, if I was a vigilante, brother, yes, sir, absolutely. It`s more that -- you know, I`m not mad, and I`m not violent. I`m very disappointed. You know, I`m getting more political as it goes. You know, I don`t want to get into the political arena, but now the book is out, you know my past, here I come. It sounds like, you know, we need to wake up America, not by slapping them around, but we need to get into this. I mean, what is going on here? What is going on in our country? What`s really going on? Just because he`s only got 18 months left, brother, please, Mr. President, don`t drop the ball. What is going on here?

BECK: OK, we will talk to you again. Duane, please pass our love on to Beth. I can`t imagine how broken up she is on this news.

Jim, please let us know how we or anybody in the audience can possibly help. Do you have anybody -- can you still go to the Web site? Is that helpful?

CHAPMAN: Well, yes, you can go to the Web site. What we`d like to do is you to -- all my fans to start writing Ron Johnson out of Hawaii. That`s the prosecuting attorney. And there`s a lady in the statehouse, what is her name?

QUADRA: Mary Rodriguez.

CHAPMAN: Mary Rodriguez. Sounds like Mrs. Mary Rodriguez is making all the decisions, so I wish my fans would start blasting her with letters. Don`t be disrespectful. This is the United States government. Just please ask her to help.

BECK: You got it. Duane, Jim, thanks a lot.

Up next, the shocking story of a radical Islamic preacher and a guy who guarded the president`s plane. Hate speech against America right here in our own backyard. Do not miss this next segment.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BECK: The new "GQ" is out. Look sharp, live sharp. This is the issue where they do an in-depth interview with me. On the cover, "The most annoying man on TV," on the cover. Page 325, 325.

UNIDENTIFIED MALE: What, is it a Harry Potter book?

BECK: It has me on a soapbox in a red, white and blue tie, stars and stripes.

UNIDENTIFIED MALE: Which you wear regularly.

BECK: A flag tie. I wear that all the time, yes. And the headline is, is Glenn Beck the most annoying man on TV or does it only seem that way? There have been more glowing articles. This is probably one of the most accurate articles that has ever come out on me.

(END VIDEO CLIP)

BECK: And you`ll have to decide for yourself if I`m the most annoying or I just seem that way. It blew me away, this last segment with Dog the Bounty Hunter. On Monday, we`re going to stay with this story. And I`m going to try to find those prosecutors that are not giving the Dog the all- clear, the U.S. prosecutors, when the Mexican government has already dropped the charges against him. Again, I ask: When it comes to Mexico, what the hell is going on with our country?

Earlier, I told you about the NYPD`s homegrown terror report and how their broad overgeneralizations are part of the problem, not the solution. One of the many reasons that we need comprehensive and detailed information regarding the terror threat here in America is that it allows us to ask the right questions about the right people.

We know that not every Muslim is out to destroy America; that`s far from the truth. But the recent case involving an Andrews Air Force Base security guard who lied about his connection to an extremist Islamic imam underscores how vulnerable we really are. This is a cleric who said that Muslims should burn America down to the ground. He said it here in America.

The terror threat is real, and we need serious protection from it. Here with an exclusive update on the Andrews Air Force case is Steve Emerson. He is the executive director of the Investigative Project on Terrorism, author of "Jihad, Incorporated," one of the real big experts on this.

Steve, let me start. The case against this security guard at Andrews Air Force Base, he lied on his application, said he didn`t have any other names, but we later found out after he was hired that he had an Islamic name. And where did that lead us?

STEVE EMERSON, TERRORISM EXPERT: That led us to a mosque and the imam, named Abdul Alim Musa, who is one of the most notoriously and rhetorically violent imams in the world today, particularly in the United States, calling for violent revolution, jihad, attacks on Jews, attacks on the United States. He operates in five different mosques across the U.S. and literally preaches violent jihad wherever he goes.

BECK: How is it this guy is not a household name here in America? I want to play just a little bit of what he said. Can we play the audio of the preacher, the cleric?

(BEGIN VIDEO CLIP)

ABDUL ALIM MUSA, IMAM: When men go out and strike at the heart of Zionism, they are not suicide bombers, they are heroes. They are heroes. Isn`t that right? That`s a part of our (INAUDIBLE) that`s a part of our religion.

(END VIDEO CLIP)

BECK: Wow. How is this guy still preaching?

EMERSON: Well, you know, free speech guarantees a lot of freedom in this country. And he claims he knows where to push that line and where to not go beyond it. And he certainly does. He calls for violent attacks on Israelis, on Jews. He calls the United States an evil country that needs to disappear. He calls for the imposition of Islam in the United States.

BECK: I`m telling you, these people are using our own freedoms against us. Now you`ve got the guy who was not just attending a mosque that heard this guy, he provided security at the mosque, so he knew exactly what he was. He gets a job, you know, at the base where we`re guarding the president`s plane. And on his Facebook, he has essays on his Facebook. Have you read these essays, Steve?

EMERSON: Yes, I have, and they call for suicide bombings. And we don`t know whether he wrote them or whether he just posted them, but certainly they reflect his philosophy. And the fact that he was a security -- head of security at the mosque for many years shows incontrovertibly that he was aware and in tune with the philosophy of Abdul Alim Musa.

BECK: Steve, I have to tell you, we made this mistake when we didn`t shoot al-Sadr in the head. We tried to bring people into the fold. And we`re in some sort of weird P.C. appeasement world, are we not?

EMERSON: Well, would you believe that Abdul Alim Musa himself was invited to an Iftar dinner in the 1990s during the Clinton administration at the State Department, even though he was making claims that the United States should be destroyed?

BECK: Steve, I thank you very much. And we`ll continue to follow this, and hopefully we`ll talk to you some more tomorrow on the radio program.

Time now to turn to tonight`s "CNN Hero." Mining has unfortunately monopolized the headlines recently, drawing attention to the trade and resulting dangers. Today, we want you to meet a West Virginia man who has a very personal reason to care about it. Larry Gibson is tonight`s "CNN Hero."

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: What is the verse?

LARRY GIBSON, DEFENDING THE PLANET: "In his hands are the depths of the Earth and the mountain peaks belong to him," but you won`t find no mountain peaks around here. They`re being taken.

Instead of extracting the coal out of the mountain, they`re extracting the mountain off the coal. My name is Larry Gibson. I am the keeper of the mountain.

The land right here was 300 feet higher than this. Now this cemetery is the tallest point. Around 1993, one vice president of coal fuel production told me that my 50 acres was worth $1 million an acre. I said, "You can have my right arm, but you`ll never get my mountain." I`ve locked the land into a land trust never to be sold, never.

I`ve been shot at a numerous amount of times. I`ve had my cabins burnt. I`ve had my dog shot. I`m just trying to make people in West Virginia stand up and be counted instead of being a part of something that`s destroying it.

UNIDENTIFIED MALE: Larry is such an inspiration of trying to get the communities to put pressure on their elected officials and stop mountaintop removal. He`s not doing it for his self. He`s making a point: Don`t let this happen to your communities.

GIBSON: That`s why I put myself in the positions I put myself in. Sometimes you have to stand up in harm`s way, whether you know what`s coming or not.

The young people should be crying and screaming because they`re going to pay for what these people are doing. I`m here. My feet are planted. I`m not giving up nothing. I`m not back up nowhere. I can`t imagine not fighting.

(END VIDEOTAPE)

BECK: Do you remember about a month ago when all those numbskulls were out there camping in line just to get their hands on a brand-new iPhone? Yes, like -- anyway, I`ve got the feeling that none of them ever bothered to think ahead to the day when you`d be getting an iPhone bill. Apparently iPhone`s not free.

Anyway, the iPhone bills are a little longer than expected. In fact, they`re almost the length of a Harry Potter book. When Justine Ezarik of Pittsburgh opened her first iPhone bill over the weekend, it was nearly 300 pages long. She made a video documenting her first iPhone bill, which of course she has posted on YouTube, which I can download on my iPhone, except it would probably add another page to my bill. I mean, what did we do before iPhones and YouTube?

Joining me now is Justine. Justine, 300 pages?

JUSTINE EZARIK, GOT 300-PAGE IPHONE BILL: Hi.

BECK: I haven`t got my bill yet. What did you say?

EZARIK: Yes, it`s a little under 300, but it was double-sided, so...

BECK: Oh. So it`s almost 600. Yes.

EZARIK: Yes, pretty much.

BECK: How many text messages do you do?

EZARIK: Usually, on average, I`ll do about 35,000 a month, which is absolutely a slow month. I was actually under 30,000.

BECK: You know, we did the math on that. That`s 1,000 text messages a day. If you`re awake for 16 hours, that means you have to average 62.5 messages an hour, which is about one per minute. How do you do that?

EZARIK: Well, I mean, I do text a lot of people, but there`s also this service called Twitter that I use, and it updates me constantly with what my friends are doing. So it`s all through text message-based. And also Facebook, I use their entirely mobile...

BECK: Could you ask the cameraman to pull back? I want to see if you have any legs or anything. Are you confined to a bed? Or do you -- I mean, I`m just wondering. Pull back, please. I`m just wondering, do you have a life? Do you go out and do anything? You seem to have legs.

EZARIK: I do. And I also have my iPhone and my bill.

BECK: And your bill, right. So you have a Web cam, a Web site, a blog, a Facebook, MySpace, Flicker, Tweeter (sic). How do you do all of this? Why do you do all this?

EZARIK: Honestly, I`m not sure. Why? I`m not sure. I think it`s mostly I really love technology, and I love constantly being connected. So all of these things allow me to be connected.

BECK: There you go. Justine, thanks a lot.

And don`t forget, if you want to know what`s on tomorrow`s program, you can Tweeter (sic) me, because I know what`s going on.

A little more in-depth commentary on the news of the day, sign up for my free daily e-mail newsletter. Where do I find the time? At glennbeck.com. From New York, good night, America.

END