about a plan. now, everybody thinks things are going to be good. and they are moving back into the market. it's somewhere in between, people. we may not we may not have a quick solution in europe but you can still make some money. here's what i want to you do, as the week goes on scale out of the high flyers, go after and sell the companies that didn't do that well but whose stocks have gone up anyway because you'll see when starbucks reports they will go right back down. please do that. there's a bull market always somewhere. i'm jim cramer, see you monday! hey larry what are you looking at. >> hope springs eternal but the u.s. stalls badly here at home, uncertainty my watch word. good evening everyone i'm larry kudlow. this is a special live edition of the kudlow report. your money, your vote. this weekend marks 100 days before election. if the election were held today mitt romney would win by five

points. that according to a brand new poll by ace pollster scott rasmussen. this comes as we received yet another abysmal gdp number, 1.5%. businesses cutback on investment. consumers cutback on buying. further proof that the president's policy, the policie. economists call less than 2% a growth recession and any small shock, any small shock can push us over the line. former presidential candidate, former speaker of the house, newt gingrich our special guest for the entire hour. you can ask newt questions about the jobs, economy, politic, right now by tweeting us at #asknewt. we've assembled a special election panel tonight. michelle fields. jennifer rubin. and soon to be democratic

strategist jimmy williams. i think he's already a democratic strategist. also this evening the dow closes up 188 points. that's right. it's over the 13,000 mark. it's up three points in the last three days alone. brian shactman tell us what's cooking? >> positive until the 1:00 p.m. eastern time. that's when headlines crossed about ecb president mario draghi building a consensus for more action to ease the crisis. you see that rip to the upside. factor in the green today with a mixture and defensives up on top. health care and tech and industrials. energy up 1.5%. last sector in the red for the year. it's now positive. all s&p sectors in the green for the year. back to you. >> now, make no mistake about it, any fed stimulus that gets ejected into our economy will be short-lived and probably counter productive. i know this european stimulus thing but they are different than we are. we've already done what they are

going to try. anyway, folks, the main point tonight this election is critical to the future of this country. our health, welfare and prosperity depends on it including our inalienable rights of life, liberty and the pursuit of happiness. in other words freedom. i see it as just that important. now, let's begin with the faltering state of jobs and the economy. let's go the thread of significant tax hikes and the threat of job killing and fiscal bankrupting obama care. over regulation such as the nlrb and epa. department and deficit. and the ever expanding record breaking dole for food stamps and other benefits. there's not a single pro growth supply side policy in this whole list and that's why this is the worst recovery in modern history and that's why obama economics have failed. you know what? give me ronald reagan any time.

this is why this may be the most important election of our lifetime. today's ras muse enpoll, the daily tracking poll shows romney widening the gap with obama up five points, 49-44 which by the way closely matches rasmussen poll on who voters trust more to handle the economy, romney 49, obama 43. but a sharper question i think, with a near recession economy, the worst recovery in modern times according to the joint economic committee, another trillion dollar budget deficit reported today could there be, is it possible that there's a path to victory for obama with all these dismal numbers. i'll start on that track and get to our very special guest my old friend former house speaker, former presidential candidate, newt gingrich and he's the author of the new book "no taxation my misrepresentation." newt, wonderful to have you back on the show.

you know the litany of this anemic economy. first i want to ask you about obama. does obama still have a path to victory given this anemic recovery which is going south not north, newt gingrich? >> well, look, any time you have an incumbent president they have some possibility of winning. as i look at the current situation i would say in 70% of the futures, mitt romney is the next president. in 30% of the futures, barack obama gets re-elected by a very, very narrow margin. but for that to happen romney has to make two or three very big mistakes. something has to happen in the world to change the conversation. and the election would have to be something about other than jobs. if this election continues in the direction it's been in for the last five or six months, this is the worst economy. think of it this way, larry. if you're under 72 years of age,

you have never lived in an american economy with this weak a recovery. not for three quarters of a century. that's a pretty big burden for a president to carry into an election. >> newt, let me just ask you, i'll go to the flip side of this. okay, the economy is a tremendous weight around obama's legs, his re-election legs. but in your judgment, in all honesty, you ran against him, you know him well, does mitt romney have the growth message that is connecting with the voters, the voters know things are bad. does romney have the growth message? does romney have a reagan message? does romney have a jack kemp message? does romney have a tax cutting message. can romney say to folks i can do it better and here's why. your satisfied with romney's message? >> his message is steadily getting better and more focused. but i wouldn't under estimate how well he's done already. if you got a challenger whose up

on the biggest single issue facing the country by 49-43, despite the elite media, despite an enormous expenditure by obama this summer -- remember the obama campaign was outspending the romney campaign by a huge margin with negative ad after negative ad after negative ad. for romney to be up in this environment says he's doing something right. part of it, ironically something you and i talked about earlier when it didn't work in my campaign and we're watching it didn't work in obama's campaign is bain. what they do is remind independents he's a businessman. so what's happened is all of this is reminding people gee, if this is a terrible economy, who do i think will do a better job? a left wing academic like obama or a businessman? and the country is talking to itself and day-by-day it's coming more to the businessman.

that was compounded by you didn't build it quote from obama two weeks ago. >> i want to come back to that because that may be a campaign game changer. but look newt god bless you i told you the bain attacks you had on romney wouldn't work and they didn't work. but things you did great, newt you called for a flat tax. you were a pro growth guy. you were in the reagan, camp, kudlow zone. you talk about how important energy is to this country with the energy revolution. you talked about how important a sound and strong dollar is. sometimes mitt romney gets around to that stuff but he doesn't have a coherent message on it. how would you improve the message so romney is clearly on the side of economic growth? >> well, first of all, i think he is steadily improving the message. i think you'll get a message out rochl any f-- of romney for a s dollar. one of the things i've seen with

mitt he gets the energy opportunity of north dakota, he gets what's happening with natural gas. he is genuinely on fire about the potential of america to once again be the center of energy in the world and the idea that the north american continent, canada and mexico can be independent of the rest of the world in energy and that would then lead to an enormous renaissance of manufacturing and i think he gets all this. i think you're going see him talking about it more and more in the next few weeks but part of the difference, larry, you got to cover television today. okay. they got to campaign with 100 days to go. and i think part of what i've always warned people, we didn't do the contract with america until late september because we thought it would burn out if we had done it in june, july or august. i think you're going to see more and more vivid romney and a romney who is more telling you about the future and less

telling you about obama. >> look. we just interviewed him this week on monday and he's got really for the first time best i can tell a reagan-like message with four or five bullets. energy, trade, education, balanced budget, economic freedom keep taxes and regulations low. i guess i would like to see him a little bolder, newt. i love the flat tax. controversial as only a few of us left. but i want to see mr. romney really talk about slashing tax rates. i want to see him roll back regulations. i want to see him really talk about slashing government spending, newt. balancing the budget is great. america is going bankrupt. mitt romney has to sell himself. i'm the turn around guy. he's the financial guy. he has to put more oomph into it. this guy has never balanced a

checkbook or employed anybody. >> i think he does. you'll see him by the acceptance speech in tampa in being very direct and emphatic. people come up and say gee i want to know more about romney's plan. if you go to his website he has as much substance as anybody in modern times. he doesn't package it into three or four, five points. as you point out on your show this week he's getting better at it. they know they have a challenge here. i would tell you also, just take one example that paul ryan developed. if we would block grant medicaid, send it back to the states, liberate the 50 states to work on helping the poor, not have a federal massive red tape written bureaucracy, you save billions and billions of dollars over the next ten years. that's the kind of thing romney has embraced and i think it's the kind of thing you'll see him continue to emphasize and embrace. dramatic contrast with the obama big government, washington based

models. >> good to hear you. stay with us. we got to talk about the meeting why you didn't create the business, i want to ask you about how is it possible obama is gutting welfare reform which was your great contribution along with clinton, probably the greatest social policy change in 50 years. folks don't forget we'll get your questions on the air to ne. tweet us at #asknewt. u.s. economy took a turn for the worse today. this presidential election is a referendum on america's economic health and our country's future standing in the world. you need a strong economy to promote a strong defense and national security. later in the show the dow soars past 13,000, on signs that european leaders seem to be getting their act together to take action to bail out their comrades. free market capitalism best path to prosperity our guest newt gingrich is a great example.

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live from cnbc global headquarters your money your vote, a special edition of the kudlow report.

100 days until the election. here now is larry kudlow. welcome back to "the kudlow report." it's your money, your vote and the 100 day countdown has gun. here now we have democratic strategist jimmy williams. cnbc contributor jennifer rubin and reporter michelle fields of the daily call. welcome to all of you. here's the part i don't get, jennifer. i don't understand politics so i got to ask you. the economic numbers come in horribly. they have been coming in horribly for months and all i hear from president obama, all i hear is we need to tax rich people, we need to tax assessors, tax successful small business people. that's all i hear from him besides trashing mitt romney. is this a campaign policy? >> i don't get it, larry. this isn't politics this is just plain common sense. you know he likes to analogyize his terms to bill clinton.

this is not what bill clinton practiced. bill clinton cut the capital gains tax. he did not demonize business. he balanced the budget. he negotiated free trade agreements. now obama wants to say this is our plan the way he did at our fundraiser in oakland at the beginning of the week this is not what bill clinton was about. if he wants to become the second bill clinton i'm all for that but that's not what he's been doing or planning on doing. my shell, again, i'll ask you the same question. i don't understand. okay. obama trashing romney at every turn. it's not working at least in the national polls. it may be working a little bit on likability but doesn't show up in the national polls, romney is doing very well. obama has no growth policies except to raise taxes and trash business. i don't understand the guy is in a lot of trouble. a lot of trouble. i don't understand what he thinks he's doing. >> i trashes romney because if people are focused on the economy they will see it's getting worse. consumer spending 1.5% when we

were at 2.4. so it's going so badly and he knows that if voters are concentrated on that they are not going to vote for him so he's trying to distract them and talk about mitt romney and bain capital and taxes. >> it ain't working. >> it isn't. >> jimmy, i'll go to you. your our balance guy. >> all right. >> i'm completely neutral. you have a good sense of humor. the allo the lousy gdp report is the sort of my report tomorrow. barack obama keeps telling us as they did today things are moving in the right direction. the reality is things are moving south. the job story is slower, the retail sales are falling, the business investment is slowing down and the gdp is near recession. how is it that obama thinks things are getting better is going to sell?

>> well, the day barack obama was inaugurated stock market was at 1,000. today what is it? 13,000. >> back to 13,000. >> that's a 5,000 point up. that's not slow. that's not a small number. that's a decent number. designee trashes investors. you got a good point, by the way. >> that's a fact. >> but he's always trashing investors and telling them how he's got to tax them. i like your stock market point. i would do that if i were he. he just wants to tax investors. >> investors don't care what he thinks because they keep investing. good for them. that's a huge part of that 1.5% of gdp growth. listen we had 28 straight months of growth not recession. not one single month in 28 months has the economy contracted. not once. >> this is not the standard, jimmy. look at the reagan recovery and look at this recovery. people who are old enough as we are -- >> that's the three of us. >> to recall the reagan

recovery, that was a boom. when you look at the comparison, reagan recovery, obama recovery. this is not where we're supposed to be. the fact that we're no longer sliding downhill is not an advertisement for his continued presidency. >> that's a good point but if you're going to hold obama that he cannot have the same standard clinton had you can't say obama has to have the same kind of recovery ronald reagan had. we're talking about two different kinds of economies. we've seen a market change in the economy in the size and depth and what it's doing overseas here than it was during the reagan years. that's a fact. >> but michelle, in many ways the reagan recession was worse than this recession. i mean i was there in many ways because you had 20% interest rates and 15% inflation and the banking system didn't totally collapse but it was in bad shape. what i want to know is how do you keep telling people when the numbers come in worse, jimmy you're right, the trouble is it doesn't matter because the trend

line is all wrong four. that's the part i don't make. when the unemployment rate is high, when the job totals keep coming lower and lower, again retail sales falling, business investment falling, it's like nothing is working for this guy -- >> exactly. >> -- all he can do is say i'll tax rich people. >> your point won't come across to voters. what they will vote is how their personal financial situation is. that's not going to matter. the stock market is not going to matter. to me am i better off than i was four years ago and the answer will be no. >> i just want to say, i think this stock market point is a reasonably good point. but the problem is -- >> but voters are going to vote according to their economic picture. >> the investor las is very important. they are among the likeliest to vote. the trouble is, kids, i say it to all of you, here's a president who ignores the stock market, he ought to listen to

you, and loves to trash investors. he wants to raise the tax rates on millionaires who make their money on wall street or in the stock market or private equity. the whole bain capital attack which is a personal attack is also a financial attack, it's also a stock market attack. so this guy doesn't that have political acan yumen the best c he's not playing. >> i'll side with michelle because so many people are investors these days. people have 401(k)s. they are individual contributors and participants in the market these days. it does matter to them. if i were giving advice to barack obama and i'm the last person, literally the last person he would take advice from i would say why don't you come, bring everybody together, make a deal, avoid the fiscal cliff, agree to hold the tax increases in abeyance. the market would give you a big bump for that. >> this is great.

at that cabinet meeting yesterday the first one in six months, okay, after 120 or after how many fundraisers, full extension of the bush tax cuts. never raise taxes in a bad economy. lower the corporate tax rate. and do the keystone pipeline which is at least 150,000 direct and indirect blue collar jobs. just like that. boom, boom, boom. he doesn't do it. he's like boom, boom, boom, i hate bain capital, i hate swiss bank accounts and i want to tax rich people and millionaires. i don't get it. i don't get it. you tell me. i don't understand it. >> he doesn't want to approve the keystone pipeline until after the election because he wants to please the environmentalists. we need to reduce the regulatory burden on entrepreneurs. >> maybe i should interrupt you. >> hold that thought. >> i'll hold my interruption. >> this will be very interesting show. our panel is sticking around.

we'll have much more to say. jimmy williams, good on the stock market. the problem is obama doesn't listen to him. coming up, your money, your vote continues 100 day countdown to the presidential election, former presidential candidate and speaker of the house newt gingrich, an old and wise friend is up next and he's going to answer some of your tweets and some of our questions. please state with us, i'm kudlow, we'll be right back. i'm barack oba

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we're getting fewer tweets coming in, #asknewt. brian shactman is collecting those tweets. brian, what do you have >> some creative people out there. i'll give you three quick ones and then mr. gingrich can answer them as he likes. first one, who would you like to see as the presidential nominee for romney. number one. number two from bob anderson 77 what is the number one surgically precise point you feel mitt should pound home. number three why is compromise a dirty word in congress. cut entitlements, raise revenue, start infrastructure program is a way to prosperity. >> your money, your vote, 100 days and counting, we're back with our special guest former house speaker and presidential candidate newt gingrich. newt, here's an easy one for you who would you prefer to be vice president for romney?

>> i think the people who would do the best job is somebody like either senator rob portman, marco rubio, kelly ayott, bob mcdonnell of virginia, bobby jindal. there are five or six people who each has the ability to be a good president and each of whom will help win election and each of whom will broadly share the values that the republican party believes in. >> another good tweet question. what do you think mitt romney's major hammer point day in and day out should be on the campaign trail? >> it's simple. can your family afford four more years like this? i think when people think about the deficit, the economy, gasoline, jobs, do you really want four more years like this? i think obama's chances of getting re-elected are very small if that's the last question people ask when they go to vote. >> i want to ask you this. i'm going to combine my thought with the tweet.

the tweet question was is compromise a dirty word in washington, d.c.? newt, you're a man of principle but you found common ground with bill clinton. and i want to emphasize one, welfare reform with strict work requirements which worked. all the liberals said it would never work. fewer people stayed on welfare. more of them went back network. it was a phenomenal social and economic triumph. newt that was as a result of a compromise or common ground. now as you well know the obama administration is removing the work requirement from welfare, there by gutting the entire welfare reform. it's part of this government dependency stuff they want. what do you make it and are you as furious about it as i and others are. >> i'm furious what obama is doing on two grounds. first, it's totally unconstitutional. the president of the united states does not have the power to personally revise the law,

this is not venezuela, he's not hugo chavez and can't run around and do stuff like this. he's done it on welfare. he's done it on the whole issue of immigration. he's done it with no child left behind. that violates the whole principle under which our constitution exists and i think obama in that sense, it may well be the most anti-constitutional president in american history. so i'm offended by that. i'm offended because bill clinton and i and a lot of other people fought and worked and negotiated for months and months and months and we hammered out in the best american tradition a bill that we could cooperate on that had very profound changes. two out of three people went to work or went to school. it's the most successful conservative social reform in our lifetime. for some guy to come along and sign a document blowing up years of hard bipartisan work is an

insult to president clinton and it's an insult to every democrat and republican who voted for it. half the democrats in the house, 101 to 101, one half voted for welfare reform. it was genuinely bipartisan. >> but the obama left wing of the democratic party, newt, seems at every turn to want more government dependency. food stamps at 46 million. now you got their gutting of the welfare reform. social security disability payments are being used to substitute unemployment compensation and most data shows half or more of american households are now on some form of government funding transfer payments and dependent. these guys want government to run the economy and they want more and more people to be dependent on government. is that not part of their thinking in gutting welfare reform? >> absolutely. barack obama is dedicated to a dependent government dominated

politician defined america that is totally different from the america that we grew up in, totally different from the america, the founding fathers created. you know, we're endowed by our creator with the right pursue happiness. this president wants us not to pursue happiness, he wants us to sit around passively and allow him to give us his definition of happiness. i saw two very funny things this week, one was on youtube and the other was just an e-mail going around. the youtube was two people on an escalator and the escalator breaks and they stand there yelling for help. and the title of the youtube was two democrats on an escalator. here they are they can walk off but they are saying help us we don't know what to do. the other was a black bear sitting at a park picnic table in montana. and the head of it was montana

bears endangered and the whole theme of this e-mail i got was that the montana bears are being trained by the obama administration to be dependent on government. they are registering as democrats and here he is sitting waiting to be fed at this park picnic table. it captured what you're talking about. >> my bride is from montana. we were married in whitefish, montana. our very special guest newt gingrich is staying with us for much more. up next your money, your vote, 100 day countdown, the nature of our economy and future of our country depends on this election. we'll be back with much more with "the kudlow report" after this. i look at her, and i just want to give her everything. yeah, you -- you know, everything can cost upwards of...[ whistles ] i did not want to think about that.

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live from cnbc global headquarters, your money, your vote. a special edition of the kudlow report. 100 days until the election. here now is larry kudlow. all right. welcome back everyone. we're continuing our special coverage of the hundred days before the election. back with us democratic strategist jimmy williams. jennifer rubin. and reporter michelle fields of the daily call. michelle fields i want to go back to you about the question of is compromise dead in

washington? you're in washington, you cover the washington beat. newt talked about gutting welfare refois compromise dead washington? >> yeah. i think right now there's a lot of -- obama is a very polarizing figure and there's a lot of polarization right now in washington, d.c. yes, i would say certainly. >> are you afraid that we're going to wind up again with either a government shut down or the threat of a government shut down. it's been all over the papers in the last 24, 48 hours if we don't have a continuing resolution they are not going around, they will run out of money. >> am i afraid of a shut down. no i think it would be a great thing if the government wasn't doing anything. that would be very good for our country. i think the government is doing too much. >> jimmy williams, all right, what about gutting welfare reform? this sticks in my crow. you heard newt. this was one of the great social reforms, helped the economy,

compromised. the democratic party voted for it and here's obama just willy-nilly on his own signing a piece of paper s no more welfare reform. how do you defend that as a democrat. >> let me be year what the voters don't know i've worked in the senate for seven years for dick durbin and i didn't like the executive branch when bill clinton ran it or when george bush ran it and i'm not the big fan of any president whether he or she is a democrat or republican. i don't like the executive branch. i think they have too much power. let me be clear i don't know the specifics of what the president has signed or not signed. what i can tell you is it was a bipartisan vote when speaker gingrich who by the way just called barack obama the most unconstitutional president in the history of the united states. >> so right? >> but apparently the most unconstitutional president in the history of the united states was bill clinton because he was impeached. i'm not sure exactly what he's talking about. >> comparing apples and oranges.

does obama qualify as an unconstitutional president? >> i would yes for the following reasons. first of all as newt made the good point, he has taken powers unto himself that no president has attempted to do by cutting out congress. we simply don't amend laws by executive order. he's invoked a bunch of really phoney executive privileges to prevent congress to have proper oversight. it's very disturbing. one thing getting back to your point about some compromise. one thing he should do is stop the defense sequestration. woe get points for being tough on defense. it will impact the d. a. send out a bunch of pink slips in the fall. >> obama wants to take out the defense spending. he's a dove. he wants to embellish his credence shows going into the campaign for his far left base which won't be enough to elect

him. doesn't obama want the defense cuts? >> he certainly does. look, like you said he's trying to please some of his constituents. but what it comes down to he's not running with mitt romney. he's running against the economy. so if the economy does bad his poll numbers will do bad as well. >> identify had so much fun, jimmy. i've had an opportunity to ask you the question we asked newt gingrich. how can obama win? what is his path to victory with this anemic economy, the worst in the history of the modern times since 1947? according to the joint economic committee of congress? how can obama win? >> convince the country that mitt romney is not capable of leading the country first and then talk about what he's going to do and if he's smart and does that in ohio, virginia and florida he will win. >> do you think if he really tells us what he wants to do, create more government dependency that will help him? >> it will beat the hell going

to england and saying the olympics are flawed and walking down the downing street. >> to say businessmen didn't build their business. >> i appreciate that ruse. >> thank you very much. up next our special guest presidential candidate, former speaker of the house, newt gingrich. the 100 day countdown returns in two minute. romney five points up in the rasmussen poll right now. [ male announcer ] summer is here. and so too is the summer event. now get an incredible offer on the powerful c250 sport sedan. but hurry before this opportunity...disappears. the mercedes-benz summer event ends july 31st.

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we take it on ours. this summer put your family in an exceptionally engineered mercedes-benz now for an exceptional price during the summer event. but hurry, this offer ends july 31st. we're getting fewer tweets coming in. that's #asknewt. brian shactman is collecting them. brian, what's new? >> some great stuff. start with this one. what would you tell mitt to do in his first 90 days as president. that's the first one. the second one, if the gop doesn't take control of the senate can a president romney get anything done? and the third one is about regulation, larry. what major regulations are critically important to deregulate besides dodd-frank that will have a real impact? over to you.

>> all right, thanks very much. back with our very special guest, former house speaker and presidential candidate beginning begin. he's the author of the book "no taxation by misrepresentation." newt can anything get done if the senate stays in democratic hands even if the house goes to romney? >> i think he gets to be very, very hard. i believe every conservative has to understand we have two jobs. make sure that we defeat obama and elect mitt romney and make sure we win control of the senate. and i think that we're going to keep the house, probably pick up somewhere between seven and 15 seats in the house. but we have to win control of the senate. mitch mcconnell has to be majority leader for us to get anything done. otherwise harry reid will block the new romney administration and make it almost impossible to get anything positive done. >> mr. speaker hang on one moment please. joining us now this special phone call, distinctished

professor ed lazear. thank you for the call. bad gdp number. i couldn't find anything in there that suggests it's going to get better next quarter. what's your take. >> i think you got it right, larry. not only is this a bad number. the problem is that it's not just this quarter, it really reflects the fact that we haven't had a recovery at all. if you look at the turn around since the recession, growth has been at 2.2% since the recession. we should be at 3% or better just in normal times. not only are we not roifrg, we're not even keeping pace with normal things. so the gap is widening, it's not shrinking. of course the big problem is the last year and a half it's been at 1.8% and this quarter 1.5% is dismal. not a lot of encouraging news. i guess if you were looking for something to cheer you up you could look at investment which was pretty good but the big story is really on the

consumption side which grew at a very low pace. that needs to get up to 5% in order for us to get any kind of rough at all. >> ed lazear thank you very much for your timely phone call. we'll go back to former speaker newt gingrich. newt, let me ask you this. you didn't build that business. now obama said that. it won't go away. that statement will not go away. it's alive and well in the press. is it a game changer? does it reveal obama as the anti-business guy that he is and the totally pro government european socialist whatever guy he is. >> larry, you're like me. you've been around a toad while. you'll remember jimmy carter and the killer rabbit and mike dukakis and the tank. this will go down in the history and the romney people have done a brilliant job of picking up and starting an entire i built

it movement with t-shirts and all sorts of things. this is one of those freudan slips where the real barack obama came out. we realize how much he really is a radical, a bill ayres radical and what he said is so infuri e infuriating to every small business owner i know, every professional i know, every successful athlete i know. think about everybody you know who has ever gotten anything done. they worked their tails off. for this guy to come along and say you didn't do it? somebody else did it? you just happen to get lucky. he comes out of a background where he really is a left wing academic and maybe he thinks all of life is an escalate orbut most of us actually have to climb the ladder of success. >> newt one last one from one of our tweet questions. what do you think at this point is the most important deregulation measure that might be taken? >> i think to fundamentally overhaul the environmental

protection agency which is an enormous job killer, enormous imposition of cost on local governments. no single agency does more damage to the american economy every day than the epa. >> if they would leave this energy revolution alone and if we rolled back some of the federal handcuffs on land, this was, i thought, one of your most brilliant points. the growth, the job creation, the energy independence in the middle east giving us foreign policy security. i mean this is truly a revolution. >> that's right. this is one of the great game changers of our lifetime. i talked to some young students who were here as interns at the capitol. i told them today if we can pursue the american energy be opportunity that's sitting out there if we can learn the lesson of north dakota, the lesson of natural gas of passengers ohio, this country is going liberated and their generation will be wealthier, more exciting, greater opportunities and the most competitive manufacturer in the world. >> last one i just got 25

seconds. romney's first action as president what would you have him do? >> i would have him sign the keystone pipeline to rebuild our relationship with canada. >> fabulous. fabulous. speaker newt gingrich thank you ever so much. you look great. you sound great. by the way, thank you to our viewers for their terrific tweeting questions. speaker gingrich's book is called "no taxation by misrepresentation." coming up we're going to do some stock market work. the dow surges past 13,000. investors celebrating signs that europe's leaders finally taking action to curb their debt crisis. market pro from blackrock will help us out up next.

today the dow tacks on 188 points but it was 253 points for the whole week. nasdaq added 65. investors bet on a european bailout. i think some are betting on fed head ben bernanke to the rescue here in the states. my concern, an ultraanemic u.s. economy here, an issue of trust regarding the european leaders over there. all say as investors please keep your eyes open. now let's go to one who always

does. the global chief investment strategist at blackrock. so russ particularly yesterday and today we had phenomenal positive reaction to mario draghi the ecb head. he's going to print money, lower interest rates, buy bonds. today it sounds like angela merkel backed him up. do you buy it? you've been around the international scene for a while. do you buy it? >> you know, i buy that europe is sort of stumbling towards a solution but here's the problem, larry. obviously the politicians in europe are aware of the challenges, mario draghi is well aware of them. it's not year, though, that all of these challenges will be solved in the time frame that the market is looking at. in other words we're talking about fiscal integration on a very large scale, sovereignty issues. these issues are not settled overnight. while it's encouraging mr. draghi will take more aggressive

action the reality we'll see europe as a source of chronic stress for the foreseeable future. >> when you see a big two, three day rally like the one we've just had, obviously because of the european discussions of bailout city, do you buy it or do you sell it, russ? >> this one seems a bit aggressive to me. the last few days the magnitude of the move really without any fundamental news. let's go back to what's happened. no good economic data. no definitive plan. fairly encouraging words from mr. draghi. that's been it. when i look at that and i consider the fact as you point out in your last segment a very anemic gdp report, consumption in the u.s. continues to struggle rally in the last few days seems a little aggressive. >> on top of the allowsy gdp report you still have a tax increase threat, the senate didn't get it done so we'll have to wait until after the election. and even the threat, i've been reading, maybe you have too of a government shut down.

there's a debt ceiling issue later in the year. you have some powerful issues in front of us that are not all that good are they? >> this is a great point. it's funny, this summer we've become amateur experts on greek an spanish politics. most market participants are focused on europe. that will shift as you get into the fall. as you get into the general election season as investors focus on the fiscal cliff and risks the angst will come back to the united states and the challenge is not only are we looking at an enormous amount of fiscal drag if current policy hits on schedule, it's happening in the context of a very weak economy. >> we still have to wait for the outcome of the election. not everybody in the market believes that but i think you follow it. we're not going to know for, you know, 100 days. >> i don't know many investors right now that believe that any of this will be addressed before the election, you know, the betting is if it is fixed and

hopefully it will be it will happen during that lame duck session between november 7th and midnight on december 31st. the challenge is that's a narrow period of time to fix $600 billion. >> thank you very much for your wisdom. that's it for this evening's show. thanks for watching. thanks to the people that tweeted in their terrific questions. thanks to newt gingrich for his patience and wisdom. i'm larry kudlow. i don't spend money on gasoline. i don't have to use gas. i am probably going to the gas station

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