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GLENN BECK

Hillary Caught in Misstatement Over First Lady Trip; Detroit Mayor Pleads Not Guilty to Eight Felony Charges; Are Politicians Disconnected from the Economy?; American Company Censoring Dutch Filmmaker

Aired March 25, 2008 - 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, Hillary under fire.

SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: We just ran with our heads down to get into the vehicles.

BECK: Well, kind of. I mean, either her memory is shooting blanks or that`s the world`s worst sniper.

CLINTON: I remember landing under sniper fire.

BECK: With bogus statements like that, the Clintons never cease to amaze me.

Plus, the scandal involving Detroit`s mayor highlights a crisis in confidence in American. No, I`m sorry, confidence in our politicians. Does the case of the so-called "hip-hop mayor" mirror our disgust with all politicians?

And finding the new bubble. In the `90s, it was the tech stocks. Then, it was housing. I`ll tell you what sectors is ripe and ready to burst next.

All this and more tonight.

(END VIDEOTAPE)

BECK: Hey, everybody. I`m just watching that lineup and saying to myself, I cannot believe they gave me my television show. But here we are. Hello, America.

I don`t want to shock you, so please sit down, because I have some amazing news. A politician named Clinton may have actually told an untruth. Yes. I know it`s hard to believe, but we`re going to try to pull ourselves together and get through it tonight.

Here`s "The Point": politicians, especially those named Clinton, are so used to being dishonest that they`ve forgotten where the lies end and the truth begins. And here`s how I got there.

In a speech last week, Hillary waxed poetic about a March 1996 trip to Bosnia. As Clinton put it, she and her daughter, Chelsea, ran under sniper fire. They had to run with their heads down to get from their plane to the vehicles that were waiting for them.

Trouble is the videotape remembers things quite a bit differently. Here`s Hillary Clinton, setting the scene as she paints the picture during her speech, and the actual footage that, unfortunately for her, CBS News shot at the exact same event. One of these things -- I learned this from "Sesame Street" -- not like the other.

(BEGIN VIDEO CLIP)

CLINTON: There was supposed to be some kind of a greeting ceremony at the airport. But instead, we just ran with our heads down to get into the vehicles to get to our base.

(END VIDEO CLIP)

BECK: Yes. Here`s the really scary part. I mean, I don`t know if Hillary Clinton was lying and hoping that nobody had a camera there or she`s so delusional, that in her mind, there were actual sniper bullets, you know, snapping overhead.

Hillary now says she just misspoke. But I believe that as much as I believe my son, Rafe, when he`s got cookie crumbs all over his mouth, "Do you have a cookie in your mouth that you aren`t supposed to have," and he says, "Huh-unh." Come on!

Tonight, here`s what you need to know. Videotape doesn`t lie, and unfortunately, it lasts forever. Plus, come on, we should have known that Hillary was full of it when we found out who else was on that Bosnia trip. Sheryl Crow went with her and the star of 1977`s "Good Burger," Sinbad.

You know what? If the military doesn`t mind, you know, sending rock stars out and comedians, but they won`t send them into a war zone, you know, even though I don`t hate that idea. You can guarantee that they`re not sending out the first lady.

You know, and the other thing about this story that it just kills me is, I`m not really even sure why this is news. There`s nothing new about it. Is there anybody really surprised? When you first heard this story, did you go, "Shut up! Clinton lied?"

Mort Zuckerman is the editor-in-chief of "U.S. News & World Report."

Mort, I`ve got to tell you. Here`s my real problem on this. The Obama story had a shelf life of about 20 minutes. And that tells us something about him. It tells us what his beliefs are, et cetera, et cetera. This isn`t really a story, is it?

MORT ZUCKERMAN, EDITOR-IN-CHIEF, "U.S. NEWS & WORLD REPORT": If you`re referring to the story about Hillary Clinton, no, I don`t think it is a story but not for the reasons that you do.

BECK: All right.

ZUCKERMAN: I really don`t think that she was out there to deliberately misrepresent what happened. She has just been in and out of so many of those trips so long, I`m sure she just got it confused. And you know, it`s just too obvious that somebody would catch her up on it. And she apologized and said, look, I made a mistake.

BECK: All right.

ZUCKERMAN: I just do not share the same apprehension about this story as do you. It`s a natural instinct among politicians, as you notice, somehow or another all embellish their experiences. They all do it.

BECK: This isn`t embellishment. This is solely -- look at the line. She said, we didn`t -- we didn`t exactly have a tea party. No, you had 8- year-old kids reading poetry to you. So it`s not -- it`s not embellishing. It`s wholly made up. She was there, but it wasn`t anything like that.

ZUCKERMAN: Well, you know, I`ll tell you, I have been on a similar trip with other politicians, and I can tell you that they tended to exaggerate exactly what happened. So I can`t give you a better answer for it than that.

BECK: All right.

ZUCKERMAN: I`m just telling you, it happens over and over again. And I`m not saying it`s because they lie. I mean, "The New York Times" did a front-page story on how the presidential candidates, both Hillary and Obama, exaggerated their role in the U.S. Senate.

BECK: Sure.

ZUCKERMAN: I mean, could we be surprised? That`s what politicians do.

BECK: No.

ZUCKERMAN: Any time you work for a public figure, whatever staff level job or position you had or advisory position you had, they take all the credit for it, as if they did all the work. It`s just in the nature of the system. When you sell cars, you try and exaggerate the performance of cars. That`s the way it works.

BECK: I think that`s the best thing -- that`s the best way to explain a politician I think I`ve ever heard.

ZUCKERMAN: Yes.

BECK: Car salesman. And don`t we all want to hang out with them? This is not going -- I don`t think this is going to hurt Hillary Clinton. You`re not learning any new information here on this story.

However, again, the black liberation theology behind Barack Obama`s church is disturbing, and yet nobody will cover that one. But I don`t think that is even going to hurt Barack Obama. I don`t think that`s really going to take him down.

Is any story -- could anything be said about a politician people would say, you know what, I don`t think I can vote for him?

ZUCKERMAN: Well, actually, I do think some of these stories can be damaging. I do think there is a sense, over time, that the Clintons have accumulated, which is that there is this tendency to exaggerate their role and their accomplishments. I don`t disagree with that.

There is, I think, an inherent danger to Obama in this whole relationship that he had to his pastor.

BECK: Yes.

ZUCKERMAN: That has yet to be satisfied. He did not really address that in the speech that he gave. And I think it is something that the Democrats may be very wary of using against him.

LEMON: Yes.

ZUCKERMAN: But the Republicans will not be, and they`re going to be able to publish and print out in advertisements, what have you, pictures of what he said. And it`s hard, I think, that people will just be a little bit reluctant to imagine that he was, for 21 years, in that particular church and only denied it when this whole thing blew up in his face.

BECK: You are right on the money on that one. Thank you very much, Mort.

Now let me -- let me move from Hillary Clinton, because she got busted with videotape.

Now, we turn to another politician who`s in trouble for 14,000 text messages. Yes. Detroit Mayor Kwame Kilpatrick arraigned today on felony charges, perjury, misconduct, obstruction of justice.

Authorities say that Kilpatrick fired police officers who were getting a little too close to uncovering his affair. They also accused the mayor of using $8 million of taxpayer money to cover the whole mess up.

Now I want to get right to Steve Henderson. He is with us tonight. And he can tell us the whole story. He`s the deputy editor -- or editorial page editor for the "Detroit Free Press."

Steve. You know what, I`m so far removed from this story, and I think most people are. They just know that it was sex and blah, blah, blah, blah, blah. But they were -- they were like stripper parties involved in this. And that`s how he really kind of got busted, isn`t it?

STEVE HENDERSON, EDITORIAL PAGE EDITOR, "DETROIT FREE PRESS": Yes, well, I mean, that`s -- certainly been alleged that there was a wild party at the Manoogian Mansion, which is where the mayor lives here. And that was the catalyst for all of this.

The party`s never been proven, in fact. And there was an investigation by the state attorney general into whether the party happened, and he said it didn`t. But these -- the consequences of this party and the lawsuit, the firing of the cops, that stuff has all just stayed with us now for six years and resulted in today, where you had the mayor of the city standing up in a court, saying "not guilty" in answer to eight felony charges.

BECK: I understand one of the strippers is dead, and there was maybe a murder or something like that. And the son -- the 14-year-old son said, "Mom told me" -- I don`t -- I don`t have a stripper mom, so I don`t know how much mom shares about her work, but "Mom told me that she was stripping at the mayor`s house and his wife walked in and beat her up" or something like that.

What is that part of the story? Anything to that?

HENDERSON: You know, again, if the party -- no one`s ever been able to prove the party happened. I mean...

BECK: But you have the word of a stripper over the mayor. I`d take the stripper`s word every time.

HENDERSON: I think -- I think there`s a lot of people in Detroit who might be with you on that.

BECK: Yes. I think so, too.

HENDERSON: You know, the party, if it happened again, was the beginning of al this and the stuff that`s happened since, has been much more -- much more consequential and tragic for our city, I think. You know, I mean, we`ve got a mayor facing eight felony charges, refusing to leave office. And, you know...

BECK: OK.

HENDERSON: ... here I am on your show talking about it.

BECK: Yes, but I mean, really. I mean, how much more damage could you do to the city than I swear to you, I read in the "Wall Street Journal" today. The average -- the average home price now in Detroit is $22,000.

HENDERSON: Yes.

BECK: And when I read that, I thought to myself, I still don`t think that`s cheap enough. I just don`t think that`s cheap enough.

HENDERSON: I think you might be able to do better than that in some neighborhoods here. You know, we`re having a tough time in Detroit.

BECK: You bet.

HENDERSON: We`re having a tough time in Michigan, and this does not help. This does not...

BECK: He says he won`t -- he says he won`t resign. I`ve got 30 seconds. He says he won`t resign because he can`t get a fair trial. Why can`t he get a fair trial in Detroit?

HENDERSON: Yes. That`s absurd. That`s absurd. His resignation has nothing to do with him getting a fair trial. He can get a perfectly fair trial if he`s not mayor of Detroit. In fact, I think his trial will be much less sensationalized if he is -- if he is the former mayor than if he is mayor. So that`s total B.S.

BECK: Steve, thanks a lot, man. I appreciate it. We`ll stay in touch with you.

Now, coming up, I`ve been telling you about a controversial Dutch film called "Fitna." Love those Dutch movies. This one is not even out yet, but it`s already cause -- creating a firestorm throughout the entire Islamic world. But there are attempts to censor it now by an American- based company. We`ll give you all the details.

And we`ll take a look at how both Barack Obama and Hillary Clinton plan to save the economy. They`re not going to make things much better.

And I`ll tell you why pumping money into the economy is the last thing you want government to do. That`s in tonight`s "Real Story."

And a reminder, tomorrow, in my free e-mail newsletter, the second in our exclusive three-part series on black liberation theology. What does the church that Barack Obama attend for two decades really preach? Find out the disturbing truth in tomorrow`s free e-mail newsletter. You can sign up right now at GlennBeck.com.

(COMMERCIAL BREAK)

BECK: Well, we`ve all heard Barack Obama and Hillary Clinton`s numbers on health care, how they got so many people insured because there are just so many Americans going without insurance right now. And if that`s true, what`s behind the big jump in enrollment in the big government programs like Medicare and Medicaid? Wait until you see the numbers. Blood will shoot out of your eyes.

It seems like people are turning their backs on private insurance. And the reasons and the impact on you, coming up on tonight`s "Real Story." You can`t miss a second of it.

But first, we`re not French. I`d like to say it again. We`re not French. It`s a sentence that I read this morning in the "Wall Street Journal" in a column, and I believe it perfectly summarizes how wrong Hillary Clinton and Barack Obama are when it comes to the economy. We don`t surrender. We don`t lay down. That`s why we`re the lone superpower of the world.

Americans are successful. We want to succeed, not just survive. That could change if the Democratic candidates get their way. Both Clinton and Obama just love to talk about the middle class and bash the rich in the process. The guiding philosophy of both of their economic plans is to establish a safety net, giant government programs, that I think get in the way of recovery and prosperity, and you and me getting business done.

That is the -- that is from this column in the "Wall Street Journal" that suggests that 80 percent of Americans still believe that in this country, you can start out poor and end up rich. And I know it to be true because I`ve done it. And then I became poor again, but that`s a different story.

We all want the economy to turn around and the sooner the better. What we don`t want is to paint ourselves as victims or losers, because we`re neither of those. We`re Americans, and the American dream is alive and well. And anybody who doubts it has no business being our next president.

Steven Rose is the co-author of that "Wall Street Journal" column I`ve been talking about, the author of an upcoming book, "Myth-economics (ph): 10 Things You Think You Know About the Middle Class But Are Wrong."

Steven, let me -- let me start with this. The party of the middle class has lost the six -- six out of the last seven congressional elections. How is that -- how is that possible?

STEVEN ROSE, COLUMNIST, "WALL STREET JOURNAL": Well, that is a big question if you`re a Democrat. One of the problems is that a lot of people have overemphasized the problems of the economy, and therefore, they`ve kind of scared people into thinking that there will be an expansion of government. And so therefore, people are more nervous about the government will be in the way rather than helping them.

BECK: But see, you know what? Everybody is -- everybody -- I mean, if you listen to the candidates, they`re talking about this giant government. Both sides, both parties now are talking about much more regulation, et cetera, et cetera, and yet when you ask the average person, hey, do you want bigger government? They all say no. There`s a disconnect.

ROSE: The disconnect somewhat is this is the silly season of the elections, and people are trying to speak to constituencies. I think what we`ve seen is when Clinton, Bill was in power, that they certainly didn`t expand government. In fact the increase in spending in the Bush administration was greater than the Clinton administration for which I served.

And so in many ways, you promise more in elections. And I think both sides are doing it. And I think they have to be careful with their rhetoric because they`re likely to scare their supporters if they sound like the economy is falling apart and they`re going to help people because everyone is depressed and everyone is going -- isn`t going anywhere.

BECK: But you know what? That`s exactly what they`re doing. I mean, look, both sides are handing out giant sums of cash to bail people out in the banking industry, the financial sector, et cetera, et cetera. Now, they`re talking about people with mortgages.

And you know what? I think the average person says too bad. You screwed up at the banking level. You screwed up and took out a loan you shouldn`t have had in the first place. Too bad. Why is it my responsibility to bail people out? And why does that seem to connect with so many people?

ROSE: Well, people want to help people in need, as long as it`s within reason. It`s, you know -- it`s the Judeo-Christian ethic to help those in need. And that`s the key of what the Democrats should be doing, is trying to show that they are helping people but aren`t overwhelming any problem in all circumstances.

As you said, if you look at what people say, pollsters have this funny thing where they the data seems to say, I`m OK. Two-thirds say that their financial situation is good or excellent. Only 15 people -- 15 percent of people worry about losing their job. Ten percent worrying about being outsourcing. But they`re not. The press runs with the negative story, because good news is boring.

BECK: Right.

ROSE: So we get a lot more bad news than necessarily exists.

BECK: Here`s what I said last night on the program. I made the prediction that we will, within three years, five years, we will be a European socialist state. Because I just don`t think there`s any way of turning this thing around. You`ve got the -- you`ve got the victimhood mentality that is growing in America, especially with our politicians. How do we not become that? I gather by your reaction you disagree?

ROSE: I think there`s a lot more rhetoric than there is reality there, and everything would have to be passed. And of course, there is budgetary constraints. I think there are differences. I think that they promised more than they`ll deliver.

BECK: Yes.

ROSE: And that`s pretty standard in a political season.

BECK: Steven, I don`t know if you`ve noticed this, but we keep three sets of books now. I mean, they don`t understand spending restrictions.

ROSE: Oh, come on.

BECK: We do.

ROSE: No.

BECK: Steven, thanks a lot. We do. That is from our own GAO. We have three sets of books.

Now, time for me to celebrate the work of an intolerant blowhard that isn`t me. He`s just our hatemonger of the day. May I quote him? "A wise and frugal government shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take the mouth of labor -- out of the mouth of labor the bread it has earned. This is the sum of good government."

And who`s the hatemonger?

GRAPHIC: Thomas Jefferson.

BECK: Oh, I hate that guy. And I`m glad he`s not the president anymore.

(COMMERCIAL BREAK)

BECK: Well, the Internet is like the Wild West, right? Anything goes. Any extreme idea, man, you can find a home for it. Not so much. The evil specter of political correctness has made its way into cyberspace.

I`ve been telling you about a Dutch film called "Fitna." I hope it`s as good as all the other Dutch films. This one, according to the filmmaker, is critical of extremist Islam and now, as a result, is having trouble finding someone to air it or even distribute it.

The director decided to put the film online. But now, that great U.S. company, Network Solutions, the company that was supposed to host the site has suspended it, investigating whether the site`s content is in violation of its acceptable use policy.

Brad Thor is here, best-selling author, worked with the Department of Homeland Security. His forthcoming book, "The Last Patriot," I believe, is going to get him killed, and that`s why we`re having him on tonight, because he`s still alive.

How are you doing, Brad?

BRAD THOR, AUTHOR, "THE LAST PATRIOT": I`m doing well, Glenn. Thank you.

BECK: I would just like to say, in fact, by the way, before we start this, what is the film-maker`s name, Brad?

THOR: Geert Wilder.

BECK: Yes. Conway, I`d like to offer that guy, Geert What`s-His- Face, a place to air that film here. I don`t even know what`s in it.

Do you even know what`s in it, Brad?

THOR: You know what? All I know is what Geert has said is in it. Now, there`s over 100 violent chapters in the Koran that enjoin Muslims to wage horrific warfare on non-Muslims. And what Geert said he was going to do was take you through all those violent passages but use modern-day documentary footage to show how that stuff is still being done today.

That this isn`t just some 1,400-year-old book. This is stuff that -- there are a lot of Muslims out there, not the majority, of course, that there are Muslims out there that take this stuff seriously and believe it`s what they should be doing.

BECK: How -- how is it anyone is censoring this movie when no one knows what`s in it? Nobody`s seen it.

THOR: It doesn`t make any sense. And that`s where Network Solutions, who I pulled my business from them over the weekend, by the way. I don`t want to do business with them. And I think Americans who care about free speech should be very concerned about this.

But all he had was a parking place on their server that said "`Fitna: The Movie` coming soon." They had so many complaints from Muslim people and people who were angry about the movie that they said, "Well, we`re going to investigate this." And they said it`s not a censorship thing. It`s totally a censorship thing.

BECK: Bull crap.

THOR: This is preemptive censorship.

BECK: What is Network Solutions -- what did he violate? What exactly?

THOR: There was no content.

BECK: Let me ask you this. Network Solutions, what did he violate that the al Qaeda Web site and the Hezbollah Web site that you used to give space to didn`t? Can you help me out with that one?

THOR: There`s no question. And they`re taking a lot of heat for their DNS server pointed to Hezbollah, and they`ve now shut that down. But this is ridiculous. This is preemptive censorship. There was no content there. And they`re saying, "Well, Geert, if you share with us what your movie is, we`ll decide then." This is crazy. This is an American company.

And you know what? It makes us as Americans look like idiots and cowards in Europe, because the Europeans are saying, "I thought America stood for free speech."

The problem, Glenn, and you and I talked about the political correctness tyranny in this country. There`s a great British social commentator Named Pat Cundeau (ph) who said the lie of political correctness is that we`re being told that what we should think is more important than what we do think.

BECK: All right.

THOR: And this is a big problem.

BECK: Brad, we`ll talk to you again soon, my friend. Stay safe.

Now, if there`s a bubble, you can burst it. And that is exactly what happens on Wall Street all the time. So what is the new bubble that is growing ready to burst? Find out in tonight`s "Real Story." It`s coming up.

(COMMERCIAL BREAK)

BECK: Welcome to the real story. I want you to look at your newspaper today and you will see all kinds of headlines in there trumpeting the great news that home sales were unexpectedly higher in February. Hey, that`s great, until you start looking under the hood of those headlines, you`ll find a very different story. Yes, sales were up slightly in February, but they were down nearly 24% from last year. And prices, which are now just a little more important are now down 11% from last year, biggest drop in the history of the S & P index. I know, details, details, shut up guy on TV.

The Dow now was up another 180 points yesterday, nearly 8% in the last nine trading days alone. I mean, that`s great. Everybody`s happy, what recession? If I may introduce you, one more time, I`m sorry to do this to Mr. Gloomy Pants. The real story is that we are now witnessing the birth of our next bubble. Just like communists, financial bubbles don`t ever go away, they just change their look.

The internet bubble shaped, shifted into the housing bubble and then the housing bubble has now shifted into something, I`m officially declaring, the nanny state money bubble. For the last few years, America has been, if I may, on a Las Vegas binge. Wall Street would be, were like out with hookers every night, Main Street doing blow and eating caviar off of somebody`s belly and then the bill claim and we just handed over our credit card. You take American Express? Then the party ended and the bills started to come in. And you know, we didn`t go home because the bill collectors were waiting for us at the front door. We just stood there in the bar and now we`re holding our hands out.

You know, looking, hey, Paris Hilton, she by the way in this analogy is playing the federal government, Paris Hilton, you`ll cover us right? Well, for now, Paris Hilton is happy to do that. She is cutting rates. She is bailing out company. She is printing out money in the basement, anything to make us all forget that the open bar is now over. But sooner or later, we`re all going to realize, wait a minute, Paris Hilton is not only unemployed, but her credit is actually worse than ours is. She doesn`t have any cash and more importantly, she has no ability to earn any cash. She`s been paying our tab by borrowing money, in fact, Paris Hilton, I believe, is the perfect analogy for this economy, neither have any real substance and both look far better in night vision, I`m just saying.

Bruce Bartlett this is former U.S. treasury official. Bruce, you`re kind of regretting coming on this program after I just equated the economy to Paris Hilton.

BRUCE BARTLETT, FORMER U.S. TREASURY OFFICIAL: Wow.

BECK: The federal government, aren`t you? You can be honest. That`s OK.

Bruce, tell me, the Fed is printing money, dumping money, the government is. Everybody is doing this. The stimulus package. They`re now looking for more, they`re bailing out companies and now they want to bail out borrowers. How do you -- this is bogus. What`s happening here is bogus money. There`s no real creation of anything here except debt.

BARTLETT: Look, the Federal Reserve, basically, is responsible for all of these bubbles and credit cycles, whatever you want to call them because it always overdoes things. You know, when the economy is hurting, it shovels money out any way it possibly can, and then they just keep shoveling more and more because they`re never sure that they`ve done enough because there`s always enormous political pressure to do something. And then eventually, you get inflation, they start to tighten. They always tighten a little too much. And so you`ve always got this boom and bust cycle that basically, I think, comes back to the Federal Reserves` money creation policy.

BECK: Here`s the problem. It seems to me that we are always popping a bubble. And in retrospect, you always go back and go, yes, $900 a share for pets.com. That wasn`t such a smart idea. It all makes sense after you get past it. How is it that nobody is seeing that the Fed right now is dumping money or shoveling money, as you say, but they`re not paying attention to inflation at all. What they`re doing is going to cause more inflation and then they got a really Sinbad belt tight, you know, tighten the belt on us to the point to where it`s going to hurt the other direction.

BARTLETT: Well, the problem is what the Fed does to the economy always takes -- there`s always a lagged effect. What the Fed is doing today will ultimately impact on the economy two years from now. But by then, people will have forgotten that that was the root cause. By then, they`ll talk themselves into believing it`s something else all together. Remember, Alan Greenspan gave his famous irrational exuberance speech about the tech bubble in 1996, but it wasn`t until 2000 that the bubble finally burst.

And in the meantime, people talked themselves into believing it wasn`t really a bubble that it was all real.

BECK: I get it.

BARTLETT: And the same thing in the housing sector.

BECK: I have to tell you, it`s like we`re taking political rufies all the time but we just what? I don`t remember that at all. Bruce, thanks a lot.

Officials now here in New York couldn`t be happier that their $47 billion Medicaid program now covers one-third of all New York City residents and it has grown 55% in five years. But has anybody cared to ask the question where are all these new people coming from? Here`s the real story tonight. It`s that New York, in an effort to get more people onto Medicaid, why you`d want to do that is beyond me, has created laws and regulations that are now, according to one analyst, driving people from private insurance to government insurance. It`s perfect.

Where`s Paris and her little dog? It is proof that benevolence through regulation never works. It doesn`t work for poverty. It doesn`t work for the economy and it certainly doesn`t work for health care. We should know now that by making anything mandatory is a recipe for disaster. How do I know this? I`m a parent. You tell your kid, hey, eat your Cheerios, they`re good for you. They throw them. I mean, they`re feeding them to the dog when you`re not looking. Pretend that you don`t care. Oh, whatever, you know what I don`t want you to have some of those, they eat them like they`re Oreo cookies.

California knows this first hand. Like most states, they require all drivers to have auto insurance. But in California, a full 25% don`t. That`s weird. It`s required, you know. In fact, that`s a higher percentage of Californians that have voluntary health care insurance than mandatory auto insurance. If you`re really interested in compassion and benevolence, instead of just the idea of it, consider this, a CATO institute study has actually shown more people die every year from the cost of government health care regulations than from not having health insurance at all.

Wow, how is it we haven`t heard that study before? I`ll tell you why, because you won`t agree to give the government more of your money if you think private markets are more effective than regulations and mandates. It`s simple public relations battle and that`s what`s going on right now. The battle our government is winning and common sense is losing. Michael Tanner is the director of health and welfare studies at the CATO Institute.

Michael, give me that study again. How is it actually causing more deaths?

MICHAEL TANNER, DIRECTOR OF HEALTH AND WELFARE STUDIES, CATO INSTITUTE: Well, because it drives up the cost of health care and often drives healthcare out of the reach of people who would otherwise be able to afford it. And it limits the ability of the private sector to produce new goods and services, bring new drugs on the market. It delays how long it takes to get life saving drugs to the market. It does a number of things which actually adversely impact our health care.

BECK: I believe what`s happening in New York, I mean, I was blown away when I read that stat, but 33% of New York residents, New York City residents are now on Medicaid. They`re expanding it by 55%. You talk to the head of the GAO, he`ll tell you the biggest problem is Medicare and Medicaid and all of that stuff. That`s the monkey on our back, for the country. It`s a microcosm.

New York is a microcosm of what - I think these progressives are cheering when they see this. Oh, yes, we got a 55% increase. Do you think I`m wrong on that?

TANNER: No. You`re absolutely right. New York, look how they set it up. They have an extremely generous Medicaid program, which lures people into the program and they have one of the most onerous insurance regulatory regimes in the country that drives up the cost of private insurance. Because they driving up the cost of private insurance so much, people are dropping out of private insurance markets and they`re all too happy to shift over to the taxpayers in the form of Medicaid.

BECK: Why is it Michael people don`t understand that I mean, I`m a small business owner and I`m doing business in New York because quite honestly I have to because you know, you don`t find this in Omaha, Nebraska, but it`s insane, as a private business owner, the second I can get out of doing business in New York City, I`m out. They tax you, tax you and regulate you to death. And that`s now what we`re talking about doing in Washington D.C.. How does anybody expect private companies to survive?

TANNER: Well, and it`s only going to get worse. I mean, New York is facing a $4.5 billion budget shortfall this year. The largest cause of this is their health care problem, particularly their Medicaid system, and yet they`re going out in advertising to try to get more people onto the Medicaid rolls.

BECK: All right. Michael, thanks a lot. That`s our real story tonight.

Now, let me ask you, who wants good news? OK. I don`t have any good news. So, let me ask you this question. Who`d like a magic trick? I got that. Next.

(COMMERCIAL BREAK)

BECK: Many people ask me, Glenn, what keep yours show in last place? And I say, you know what it is? My ADD. I get distracted sometimes that I think, you know, I can`t take a second more of this Obama-Clinton thing, can`t do it. So, tonight, if you`re with me on ADD, we brought in Wayne Hoffman. He`s a mentalist and illusionist. Yes, who was featured not long ago on the NBC TV show "Phenomenon," who is going to stop by and remind me that I wanted to be a magician when I was a kid. And actually, you started it when you were a kid.

WAYNE HOFFMAN, MENTALIST & ILLUSIONIST: I did. What happened? I need some competition. Look at that. I don`t even want to look at that picture of me.

BECK: All right. Distract me from the news. What have you got?

HOFFMAN: I tell you what. I`ve actually watched your show many times and always wanted to get in your mind.

BECK: Really?

HOFFMAN: So, now I have the opportunity.

BECK: What a liar.

HOFFMAN: No, it`s the truth.

BECK: Really.

HOFFMAN: I`m going to try something with you and see how well I can do. I tell you what, clear your mind for a second, if it`s possible. I know. I know. Just look at me.

BECK: Yes.

HOFFMAN: And don`t worry, I won`t tell a soul the stuff that I get.

BECK: Right.

HOFFMAN: Let`s just say this. Do me a favor, name a number. Just say a number out loud between 1 and - I`ll give you up to 100, anything that comes to your mind.

BECK: 93.

HOFFMAN: That`s interesting. Because you could have said whatever you wanted. Right. Take a look at what I have there.

BECK: Wow.

HOFFMAN: You will say 93.

BECK: I will say 93.

HOFFMAN: On the dot.

BECK: And I did say 93.

HOFFMAN: It`s in there for some reason.

BECK: That`s weird. Let me ask you about the David Copperfield rape thing.

HOFFMAN: Yes.

BECK: Did you get inside his mind? And go.

HOFFMAN: You know, I`m surprised. Copperfield has it all, he has his Fabio good looks. And I don`t know how he gets caught. Did he do it? I don`t know. That`s.

BECK: He could have really scored really anywhere.

HOFFMAN: I mean, David Copperfield.

BECK: You know what I mean. You don`t have to.

HOFFMAN: He can make women appear.

BECK: Why not. OK. Got anything else?

HOFFMAN: Absolutely. I tell you what. Actually, before we went on air, I said, during the program, you`re going to be thinking of somebody important to you.

BECK: I got it.

HOFFMAN: Think of that person now. OK. You didn`t tell anyone around, did you? And then, you obviously didn`t tell me. Think of it. Think of their name. Just look at me. Let`s try it.

HOFFMAN: ABCDEFGHIJ -- actually, three people crossed your mind in the very beginning. You stuck with one and you changed your mind. You went from a female to a male in your mind. You ended on -- you went from the younger female and went to the older male in your mind. Now, the name you first thought of was the second letter an a?

BECK: Yes.

HOFFMAN: Is it a female?

BECK: Yes. You`re right, I thought of three.

HOFFMAN: You did.

BECK: Yes.

HOFFMAN: The female, second letter an a. Are you married? You married.

BECK: Yes.

HOFFMAN: You are. You weren`t thinking of your wife, were you?

BECK: That`s why I crossed that too easy.

HOFFMAN: Tanya, and you changed it to your dad?

BECK: Exactly right.

HOFFMAN: There you go.

BECK: Yes. And here`s what I -- look. This is it, right?

HOFFMAN: Yes, yes.

BECK: See, I wrote my dad, but I crossed Tanya out.

HOFFMAN: Yes. Good choice.

BECK: Very good.

HOFFMAN: I tell you what. Let`s try one more. And then tell we`ll go from.

BECK: And then tell me who magicians hate. I mean, who is the magician that everybody hates? I mean, it`s always like..

HOFFMAN: Let`s get into that first.

You know, everyone, and the whole magic secrets revealed, everyone thought that guy would be talking -- not really, he helped magic, ever since "Harry Potter" and he came out, my business is booming, everything from corporate events and tradeshows to theatres.

BECK: So you`re turning kids, you`re corrupting kids like "Harry Potter" did, turning them evil?

HOFFMAN: Not evil. No. I don`t know. I really don`t hate anyone. You know.

BECK: But you wouldn`t even tell us -- we have 30 seconds. You wouldn`t even tell us what tricks you were doing.

HOFFMAN: No. Yes, it`s one of those things where magic is a surprise.

BECK: Yes.

HOFFMAN: And mentalism, it`s one of those things.

BECK: You thought, I mean, from what I understood from our producers is you thought we would get online and try to figure out how it was done in advance.

HOFFMAN: You know what, I tell you what, if you should go online and figure out what I do, there`d be more mentalist.

BECK: I know, I was going to say, we`re not that bright, man. Did you hear the nanny state money bubble theory, I just told you. I mean, it`s not going to work. All right. Thank you very much.

HOFFMAN: You bet.

BECK: Tonight, let`s go to our real America segment, which is brought to you by CSX. We have a story tonight for you. We have a couple of guys in the Bronx doing what they can to keep neighborhood kids in school and out of trouble.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Welcome to reality.

BECK: Hip-hop, I admit, I don`t really get. I can`t rhyme, I can`t rap and I definitely don`t have any rhythm. But for a couple of guys living in the Bronx in New York, hip-hop music is a lot more than mixing beats, it`s about motivating kids to stay in school and out of trouble.

NAMEL "TAPWATERZ" NORRIS, WHEEL CITY: When was 17, I got accidentally shot by my cousin playing with a gun in a room and it was in this building right here where we`re at.

BECK: Namel Norris never expected to end up in a wheelchair, victim of a random and senseless act. After six months in the hospital, he came out an angry 18-year-old in a wheelchair. Then fate intervened and he met Rickfire. They talked about being stuck in wheelchairs. They talked about how they were both victims of violence. And then their talk quickly turned to music. Soon after, 4-Wheelz City was born.

RICARDO "RICKFIRE" VELASQUEZ, 4-WHEELZ CITY: Because I was thinking about my life and I was saying, you know what, I can either be mad everyday or I just change my whole life around and maybe somebody can learn something from me, so negative could be so positive. That`s the music and that`s the reason why I do it and I love doing it. This is bigger than me and Namel. There`s a lot of people with disability.

BECK: Now, 4-Wheel City performs in schools and hospitals spreading a simple message.

NORRIS: That`s 4-Wheel City. Like your will, w-i-l-l. Your with will. (inaudible) educate, advocate and entertain.

BECK: Despite all their success, where their message really hits home is in the very same apartment where they first met, providing a place for all the kids in the neighborhood to go after school, to listen to music, to dance, and most importantly, Namel and Rick, teach them to stay on the right path.

VELASQUEZ: We look at it, that`s like an obligation. It`s not like you don`t have to be there. That`s why a lot of people drop out.

BECK: Telling kids, stay in school, a lesson that both members of 4- Wheel City will continue to give, for as long as people keep enjoying their beat.

I have that CD at home. And it`s great. If you would like to learn more about 4-Wheel City`s music, check out their page at myspace.com/4wheelcity. If you`d like to see more stories like this one, you can always click on cnn.com/glenn. And look for the "Real America" section. That`s tonight`s "Real America," sponsored by CSX, it`s how tomorrow moves.

(COMMERCIAL BREAK)

BECK: All right. Let me ask you a question. Has this ever happened to you? You`re in the kitchen, you`re king of half watching TV, half making a bowl of cereal and you pour the Count Chocula into the bowl. And then you`re kind of sort of not looking as you`re fumbling around the refrigerator for the milk, you grab the carton and you start pouring into the bowl. That`s when you look down and you realized, I just poured orange juice into my Count Chocula. So, now, you`re staring at a bowl of orange- flavored Count Chocula which you`ll eat anyway. I mean, it taste terrible but you`re hopelessly overweight and you have no self control. I know because I`m there, brother. But you know, that`s what you do because you`re you.

Well, the government seems to take this mistake to a new level. Sure, it`s only sometimes cheating on your wife with a hooker or sending 14,000 text messages to your mistress. But occasionally, it can get worse and that`s kind of where we are now. The Pentagon discovered a little bit of an oopsy when they found out what happened today. It was revealed that we mistakenly shipped nuclear triggers to Taiwan. How exactly -- where did I put those nuclear triggers? Why are we shipping them. Who`s shipping them? How did it happen? Sending nuclear triggers to Taiwan. Kind of a big deal because it might piss China off just a bit.

Apparently, we`ve decided antagonizing companies that have 1.3 billion people, not a good idea question was, why do we ship these triggers? The bigger question to me is they`re nuclear triggers. Why would we put them in a box in the first place and then send them to Taiwan. I do have a theory, it`s the only one that makes sense. The Olympics are coming up, right? Nobody seems to care. You know, back in the `80s, when I was growing up in the 70s, we had the Soviet Union, it was fun to root against them. You know, would we boycott those Olympics? No. Would they boycott ours? No.

The miracle of ice happened, right? People cared about the Olympics. It was great, we had an enemy. Well, we`re still acting now like Russia is our friend, they`re not and Al Qaeda doesn`t really have a strong 400-meter relay team despite all the training they seem to produce with the monkey bars. That`s weird but we`ll get into that later. So, why not ignite tension by sending nuclear triggers to China`s enemy. And suddenly, everybody cares about the triple jump again.

Don`t forget, we have special report that ask the question, was Reverend Wright`s outburst just a political tirade or something more. Sign up for my free e-mail newsletter and get our special series on the facts of black liberation theology. It`s the church Barack Obama attended for 20 years. What do they actually believe? Sign up at glennbeck.com. From New York, good night, America.

END