We sit down with senator john mccain. It is a Fox News Sunday exclusive. Then, with the loom fiscal cliff, is it casting a shadow over shoppers and investors this Holiday Season . Visions of bargains are dancing inned the of consumers but will the possibility of higher tax slow them down . Well talk with matthew shay of the National Retail federation and john sweeney of fidelity investments. Plus the holiday is over and the white house and congressional leaders try to make a deal. Well ask our sunday panel if negotiators can reach a compromise to avoid the fiscal cliff. And a thanksgiving tradition, our power player of the week has me dancing with turkeys. All, right now, on Fox News Sunday. Chris and, hello again, from fox news in washington. On this Holiday Weekend, we are watching several major Foreign Policy developments from egypt, to gaza. To the continuing controversy over the benghazi attacks. Here to talk about it all is senator john mccain, and, senator, welcome back to Fox News Sunday. Thank you, chris, dancing with turkeys . Chris you have to wait until the end of the show to see. I thought we were doing that now chris president mohamed morsi, gave himself almost unchecked powers and sent thousands into the streets, the people who have been helping to topple hosni mubarak, now, who they are calling the new egyptian pharaoh. Are we headed for a you new islamist coup and islamist state in egypt. It could be headed that way and also could be headed back to a military takeover, if things went in the wrong direction. You could also see a scenario where there is continued chaos. Ill never forget, chris, after i was in egypt, i met with the young people who made the revolution in the square, and, a young woman said, senator mccain its not the first election we worry about, its the second. That is what we have to worry about, a repeat of the iranian experience in the 1970s, and but, what should the u. S. Be doing, saying, this is unacceptable and thank mr. Morsi for his efforts in brokering a ceasefire, which is, by the way, incredibly fragile but is not what is acceptable, what the american taxpayers expect and our dollars will be directly related to the progress towards democracy, which you promised the people of egypt, when your party and you were elected president. Chris lets talk about that. Because, morsi took his step hours after secretary of state clinton praised him for helping broker the deal between hamas and israel and so far, at least the administration issued, the state department, a tepid criticism. How tough should they get with them . Directly say pull back, what should our demands an leverage be . Our leverage is obviously, not only the substantial billions in aid we provide, plus, Debt Forgiveness and an i. An imf deal, but the marshalling world publish opinion is against this kind of move by mr. Morsi. We appreciate president morsis action but it always in the past the United States that brokered the deals and there is a clear perception at least amongst hamas that they won on this one. And, unfortunately, the plo has been, Mahmoud Abbas and others have been diminished as a result of the negotiations and the settlement reached, and i predict hamas will continue to test the israelis and how far they can go. And, finally, lets trace some of this back to iran. Where did the missiles come from that were being fired . Iran. Where are the Iranian Revolutionary guard on the ground . Syria, the centrifuges continue to spin in tehran and, we have to start facing up to what is one of the prime reasons why there is the kind of unrest we are seeing throughout the middle east. Chris let me just buttonup the morsi thing. What should our demand be of him . Stop. Stop. Renounce the statement, and the move that he just made. Allow the judiciary to function. If the judiciary is flawed in some way, then, that is an illness that can be cured over time but, absolutely, to assume this kind of power is unacceptable to the United States of america and, then, we can outline what actions might be taken. But, first, condemn it. Chris lets talk a little bit, you already led us in that direction, to the ceasefire, the fragile ceasefire worked out this week between israel and hamas. How fragile is it . What do you make of it . And, you know, we saw the longerrange iranian missiles that had been smuggled into gaza and were fired at tel aviv and jerusalem, which raises the question, if israel takes action against Irans Nuclear program, what is the threat they face from right on their border in gaza . And, from the lebanese border with hezbollah . I think they face a significant challenge, with hezbollah, because of the tens of thousands of missiles that are in southern lebanon. I also think that the iranians will continue unless they see that there is a price to pay, which argues for the United States and israel to establish red lines and say the iranians, you cannot cross that and as a result of the leck and receelec recent events, the president and the Prime Minister of israels relationship dramatically improved and we certainly hope so but it is time we Work Together and recognize it is not just Nuclear Weapons the iranians are doing, i outlined the other things they are doing, plus astraigorchestrating acts terror and attempts to assassinate the saudi ambassador in washington, d. C. We have to develop a strategy to counter that. Chris the director of National Intelligence, now says that he was responsible for watering down, edit ig the talking points that u. N. Ambassador susan rice used when she went on those five sunday talk shows, heres the picture, the famous picture of it. To talk about benghazi, but you say a few days before his office said they were responsible for editing the talking points, in a closeddoor hearing the head of intelligence, james clapper, told you and other senators he didnt know who was responsible. Question two questions where does the investigation stand . And how do you get to the bottom of it . Well, it is like any other assuming the proportions of any other major scandal in this town, there are many layers to the onion and there are all kinds of questions raised, the most recent, the one you mentioned. I saw the director of National Intelligence say he didnt know where the talking points were edited and now hes saying he did it. Well be interested how that transpired. But, the biggest aspect of the whole thing is, it has to be really looked into. Is why there was such a failure on the part of the administration in light of events, the two attacks on our embassy, assassination attempt on the british ambassador. They closed their consul, and all the train of events that made our consulate in benghazi a death trap and during that, why didnt we have military capabilities close by . Especially on september 11th . Chris and all of the hearings so far, and were two months out, do you have any answers to those questions, as to why we werent better prepared for this possibility. And as late as september 25th two weeks liter, the president of the United States, at the united nations, was talking about hateful videos, and there are many things that need to be resolved, four committees in the house and four in the senate and they are holding different hearings and turf fights going on as it usually does in these bodies and we need a select committee in order to sort it out. To find out what happened, but, also, we cant ever again have a tragedy such as took place in benghazi and it could have been prevented in my view. Now we have to make sure that there are ways to make sure it doesnt happen. Chris you say that you will do everything in your power to block susan rices nomination, if the president decides to name her to be secretary of state. She said this week, that all she did was rely on the Intelligence Communitys talking points and then went on to say this about you i do think that some of the statements he has made about me have been unfounded. But i look forward to having the opportunity at the appropriate time to discuss all of this with him. Chris is there anything that ambassador rice can do to change your mind . Sure. She can with everyone, the benefit of explaining their position, and the actions they took. Id be glad to have the opportunity to discuss these issues with her. Why did she say that why did she say that al qaeda has been decimated . In her statement, here, on this program. Al qaeda has not been decimated. They are on the rise. They are all over iraq. Training camps are in libya. They are all overseer ye syria on the rise in the middle east and theres a lot of questions for ambassador rice and im sure ill have the opportunity to discuss these with her. Chris but you are saying that she could conceivably get your vote for secretary of state . I think she deserves the ability and the opportunity to explain herself and her position. Just as she said. But, shes not the problem. The problem is the president of the United States, who, on in a debate with mitt romney, said that he had said it was a terrorist attack and he hadnt and in fact that night on 60 minutes he said they didnt know what kind of an attack it was and continued to say he said in an interview with 60 minutes which we didnt see didnt see until after the election, im sure that it was such an inconsequential statement, it didnt deserve the attention of the American People, before the election. Chris let me pick up on in a more aspect and well move on. House democratic leader James Clyburn said this week, Lindsay Graham and you have used racial code words to go after susan rice. Take a look called her incompetent as well and he told us sarah palin was a competent person, for the Vice President of the United States and that tells you a little bit about his judgment. Chris your reaction . You cant you know, dignify comments like that. I notice in this town if they cant win the argument on the merits, then they resort to those kinds of personal attacks. It goes with the territory. Chris would you agree to raise taxes as part of a solid compromise to avoid a fiscal cliff. I would be very much opposed to raising tax rates. But i do believe we can close a lot of loop hose, the tax code is this high. We can do plenty of things to eliminate these in fact, two other things, one is, things like a limit on the amount of deduction of charitable giving. A limit on the amount you can take on your home loan mortgage deduction. And, obviously, we are going to have to look at entitlement reform. Entitlement reform is the only way we are going to really get the debt and deficit under control. And we have to take it on. Chris but let me ask you. You say you would consider more revenue but through loopholes and deductions. Let me ask you, you vote against the bush tax cuts, a decade ago, because, and i went back and looked, you said too many of the benefits go to the wealthy, not to the middle class and once they were passed you changed your view and said they have taken effect. I will not oppose them. But, if you could get a solid deal, with, as you call for, spending cuts and entitlement reform and make a major take a chunk out of the national debt, why is the 35 top tax rate which you opposed sacred . Because every economist that i respect says if you raise tax rates at this time, in fact, the president even said a couple of years ago, it harms the economy. We are trying to help the economy. And, so, unless i can be convinced that raising tax rates will be beneficial, then obviously i think theres reason and ground for my position. But, i also believe that we can and must get an agreement, otherwise i think first of all, the markets are going to start reacting. Chris well talk about that in the next segment, and i think it is a real issue. Finally, lets talk about the g. O. P. Republicans, i dont have to tell you, had a really rough night on election night. And lets look at the break down of some of the numbers. You lost unmarried women by 36 points, hispanics, by 44 points. Young people, by 23 points. Does your party need to change, especially, with those groups, on social issues like same sex marriage and Immigration Reform . I think we have to have a bigger tent. No doubt about it. And, obviously we have to do Immigration Reform. There is no doubt whatsoever that the demographics are not on our side. And, we are going to have to give a much more positive agenda. It cant be just being against the democrats. And against harry reid and against obama. You have to be for things, and we have to give them Something Like the contract with america, that we gave them some years ago. We have to give them something to be for. And as far as young women are concerned, absolutely. I dont think anybody like me, i can state my position on abortion, but, to other than that, leave the issue alone. When we are in the kind of Economic Situation and, frankly, National Security situation were in. Chris when you say leave the issue alone, you would allow, you say, freedom of choice . I would allow people to have those popinions and rec those opinions and im proud of my prolife position and record and if someone disagrees with me, i respect your views. Chris senator mccain, thank you as always for coming in today, you will have a busy final weeks here in 2012. We certainly will. Thank you, sir. Chris thank you. Up next tis the season to shop and spend, but the upcoming fiscal clip put a damper on consumers and investors . Were sitting on a bunch of shale gas. Theres natural gas under my town. Its a game changer. It means cleaner, cheaper americanmade energy. But weve got to be careful how we get it. 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The data we have got so far looks like we had a very busy, a very successful weekend. We know a number of retailers opened earlier. The they were open on thanksgiving and retailers have been piloting that the last three years and 24 who went out on the entire weekend were out on thanksgiving by midnight and i think the numbers will show, this year we did better than that. And we are predicting about 4 increase, in sales, over last year. Last year we did 5. 5 actual and that was very good, and, im not sure hell hit the number but when we did the 4 forecast, it was preelection and a lot of uncertainty in the economy and now we are bullish and we think we had a good weekend. Chris Christmas Shopping not just for the first weekend but for the whole season was up 5. 6 last year, do you think youll have that strong of a Christmas Shopping season this year . Well, thanks to an act of the president , 75 years ago, president roosevelt, now we have a very long Holiday Season and this is as long as it can possibly be. Chris briefly explain, thanksgiving was very early. The 23rd it cant be any earlier than that based on the fact it has to be the 4th thursday 22nd, i think. Gives us as many days as we can have and an extra weekend and christmas is on a tuesday and well have a nice, long selling season and well see real growth and i think well go back and look at the numbers in mid december and see whether we need to make an adjustment. But, now, everything we have heard from the ceos and others we have talked to, look like we had a really good weekend and a great way to start the Holiday Season. Chris mr. Sweeney, the numbers for the markets are not as strong. The dow jones average is down 236 points, 1. 8 , since election day and the question, and it gets to the main subject we want to talk about today. How much of that do you believe is investor concern about the fiscal cliff . We surveyed our investors, after the election and found that 83 of them were concerned about the fiscal cliff, 83 of