that era seems long gone to me to hear senator paul speak. >> eric, that's interesting, i think last week it was said that it's counterconstitutional. the idea that you fight hard for what you believe in but at a certain point when you realize it's not going to happen you have to be willing to compromise. a lot of folks think compromise is a dirty word? >> i think it depends on what you're compromising on. it can be practicality and a lot of other issues but if you compromise your principles, why bother? jesse helms said, if you think freedom is right and tyranny is whong, why are people that support freedom barttering it away? a lot of people believe that. rand paul is one of those. he believes we're going to a bad place in the country economically and he wants to draw a line in the sand and say no further and you and i can

disagree with him but he says we're going to a bad place. >> how does the tea party come out of all of this? >> enormous winners. i have to say, i'm scratching my head in amazement they don't seem to think they won. but senator paul seems to kind of think they did. in the last eight months since they won the november election in the house of representatives, here's what's happened. a massive tax cut. i think way too targeted towards the rich but massive, $858 billion. bigger than the t.a.r.p. bailout and bigger than the obama stimulus package but cutting taxes is clearly a tea party priority. in april, the deal to keep the government functioning cut 35 to $38 billion from this year's budget. now this massive $2 trillion spending cut plan, i think it's a route. i don't support their agenda. but if it's cutting taxes and spending, good, lord, this thing is a route. we haven't seen the democrats get a penny of taxes even from oil companies.

>> eric, you agree with that? >> not necessarily. paul makes a very good case to enrage the democratic base and maybe make the republicans feel good but i'd point out the tax cuts paul is talking about they were extended by a fully democratic congress with a democratic president with a republican minority in the house and senate. but at the same time these tea party activists don't feel like they've won because they see this picture and they'll really believe we're headed down the wrong road and say if this plan goes according to design, anderson, and that's the frustrating part "by design" we'll add $12 trillion. we won't scale back government. they don't view that as a victory. >> eric erikkson and paul begala, appreciate it. all the bitterness on the house floor stopped by an inspiring moment to welcome gabby giffords. she returned for the first time since she was shot in the head seven months ago. i spoke with her friend and colleague, debbie wasserman

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touching on the house floor. had nothing to do with the vote happening and put the whole vote in perspective or the debate that's been so contentious. not about politics but a person. when representative gabby giffords returns to the house floor for the first time since she was shot on that dark day back in january. she was welcomed back and applause, a lot of applause, listen! [ cheers and applause ] >> she looked great. nancy pelosi calls giffords the per son occasion of courage. she was fighting for her life in intensive care. she has a long way to go in her recovery. she wasn't moving the right side of her body and still has trouble standing and speaking more than short phrases. seeing her today on the floor was a bill milestone. this is a triumph for her family and her and her friends. her friend and colleague, debbie wasserman schultz helps her into the house, you see her on the left, that's her husband on the

right, mark kelly. i spoke with congresswoman wasserman schultz a short time ago. just a remarkable moment today. among all this bickering to have a moment like this and see congresswoman giffords there. incredibly close friend of yours, obviously, what was it like for you to have her on the floor? >> absolutely incredible. when i got the call from mark that gabby had been following the negotiations and wanted to be able to be in the chamber to cast her vote, if it was pivotal, she wanted to make sure that she could help stave country from default and make sure that she was there on the most important vote that we'll are probably cast this congress for her constituents. it was the most overwhelming. it would be hard -- my heart -- all of our hearts were so full. you've had some grizled hardened members with very hardened hearts that everybody just melted when she walked in the chamber. it was so incredible.

>> so you found out, what, yesterday, last night? >> yeah. mark called me last night and told megaby had been following the debate and really important for her to be will and she wanted to be sure, especially she was a deciding vote and then she decided that it was important for her to cast her vote and make sure her district had a voice in the chamber. >> how is she doing? she looks good, she looks strong. she looked, you know -- i mean, she looked like she belonged there. >> exactly. she's doing incredibly well. this is the most determined, focused, hard-working person we've said for months. months ago i said that she would make a triumphant return to the chamber and today she did. and, you know, she has a long way to go in her recovery. she still has to work and rehabilitation so she's not ready to come back fulltime but

this was an incredible step for her and a fantastic day. in an otherwise tough few weeks. so gabby giffords is the consummate public service and her district is fortunate as she set the example today for having her represent them. >> you answered my final question which is -- this is not for good. she's not back for good. >> no. she has a lot of work left to do to continue on the road to recovery but she's making remarkable progress. she's very determined to come back and i've been able to visit with her a whole bunch since the shooting. she's made more and more progress each time. it's amazing that america and her colleagues and constituents got to see how much progress she's made. it was something that after such a tough debate, after so much was at stake for us to have gabby melt our hearts a little bit so we can move on and hopefully, start to work together a little bit better.

>> it was certainly one of those moments in the newsroom where everyone just stopped and i'm sure the same thing on the floor of the house and kind of puts things in perspective. >> really, it does. you should have seen -- i was watching the members faces as i was helping to walk gabby into the chamber and it was just jaws dropping and smiles and tears and just -- it was -- i think it was a shot in the arm that the congress and the house needed. the shot in the arm that the country needed after a very tough time. we got a lot in front of us and a lot of work ahead of us, hopefully gabby's return today, even if it's just brief, will help us all come together. that's the civility that i know is so important to her and hopefully, her return sets the tone. >> i hope she got a sense of the outporing and i hope it gave her a shot in the arm as it did everyone else. >> she did. she thought it was incredible. still ahead, new brutality in syria.

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in syria, a bloody 48 hours as president assad escalates his crackdown. the city of hama, a major target. take a look. video reporting to show hama under fire. at least 52 people including four children were killed. dozens more reportedly died in other attacks across the country. hospitals are said to be overwhelmed. video, it was people outside one of them with foreign journalist barred from syria. we can't independently confirm the reports. another video reportedly shot of a group of man trying to recover a wounded man on the street and appear to come under gunfire. watch this. keep in mind, this is the holy month of ramadan.

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tonight, beat the clock. >> the deal negotiated with the leaders of congress is a victory for the american people. >> but is anybody in washington really happy now? >> this process has been messy. it has taken far too long. >> we have been operating under a balanced budget amendment that we never would have gotten ourselves into the mess we are in. >> no one got what they wanted. >> will this make the economy even worse? >> this will cast a long term shadow on the nation's reasonableness and reliability. >> has congress shot itself in the foot?

>> the american people hold us and their low opinion of us, because we are failing to do what they think is our job, and by the way, they are right. >> tonight, i will talk to the white house and members of both sides of the aisle and the man who can answer what may be the biggest and most important question of all, what will all of this cost you? this is "piers morgan tonight." good evening. breaking news tonight the house has passed a debt deal by a vote of 269-161 and next stop is the senate and we expect a vote tomorrow at noon. but tonight, the moment that nobody expected, congresswoman gabrielle giffords casting her very first house vote after she was nearly killed in an assassination attempt in january. her colleagues giving her an arousing and emotional standing ovation, and nancy pelosi honored her, and we will talk about the debt battle next with my colleague wolf blitzer, and

erin burnett. wolf, start with the uplifting there with gabrielle giffords, and nobody expected that and it was not really a dry eye in the house, right? >> it was very emotional, and understandably so, because we really haven't seen much of her and a little bit when her husband took off on the shuttle, but there she was and people could see her and come up to give her a hug and kiss and remember the days and she looks obviously different than she did, and she is coming back. i was frankly surprised to see her on the house floor and she stood up, and it was an emotional moment for everyone, democrats and republicans and liberals an conservatives were thrilled to see her and i know that the constituents back in tucson, arizona, were thrilled she is back in action and she actually cast a vote today. >> and she voted yes obviously for the deal. we are in a situation now where everyone expects the senate to rubber stamp this tomorrow, wolf. where are we in terms of the winners and losers here?

who has come out of this well? who has come out of this badly? >> probably the tea party supporters have come out of it pretty well, because they did manage successfully to get this entire issue link reducing the national debt and raising the debt ceiling. that has never been done before. they managed to get it on the agenda, and at the same time they managed to achieve at least in the short term what they wanted to do it without any tax increases. no enhanced revenue from any tax reform or anything along those lines, so i would say that the tea party movement, they come out of this as winners. the president, the republican leadership, and the democratic leadership, they don't necessarily come out successful, big winners politically-speaking, but they did manage to step away from the brink that the united states at least not now the united states will not default on the obligations, the financial obligations. that could have been a disaster, and no guarantee, piers that this is necessarily going to stop the rating agencies from reducing america's aaa rating,

but at least in short term, it moves the united states back from what could have been an economic disaster. the dollar going down in value, interest rates going up, and given the fragile state of the u.s. economy right now, that would have been a huge, huge burden. >> and erin burnett, let me turn to you, because just as an impartial observer watching this slightly aghast might think that the tea party did well politically, but in terms of the behavior and when they shoved the president into the corner and made a crisis out of something that should not have been a crisis in terms of the debt ceiling being raised and pretty much stabbed the speaker john boehner flat in the back, didn't they? >> well, that is a good way to put it. you could say, piers, in a sense, they were playing chicken with the whole situation. if they ended up getting out of it massive cuts that moved the needle which the cuts on the table now do not, and they don't address the major entitlement programs, well, if they had accomplished that, then you could say, well, yes, it was worth it, but all of that storm

for, well, frankly not much. so i would say, yes, not very much was accomplished that was positive from this and now you have great uncertainty about the economy as wolf indicated by far the top story. you saw the market rally on the news of the deal and then terrible data of manufacturing back in recessionary territory and the markets gave it all back. >> yeah, almost every sector in the american economy is floundering, manufacturing, housing, and you look at it and it is going backward and the jobless figures expected to continue to rise, and nobody believes, erin, that anything this the deal will stimulus the american economy and that, in itself, is incredibly serious, isn't it? >> yes, and nothing in the deal will stimulate the economy insofar as you get the certainty which is a good thing, but as far as we don't know the full extent of the cuts, and you want get clarity until november, but economic growth in general, this is the whole debate of spending money and whether we should make significant cuts and some would argue and including som of the

biggest bond investors in the country, and you would think they would be pushing spending cuts, but no, they say we should spend money right now and we should cut when we have economic band width to make those cuts. >> quickly, erin, predictions for the markets? >> well, it is tough. overnight we are seeing the markets in australia open and not gains there, and weakness there we are seeing because of the weak u.s. manufacturing data, and so we will see what will happen tomorrow, an obviously, everyone is expecting the senate to be a rubber stamp as you and wolf were indicating. >> and wolf, quickly from you, has speaker boehner's position been weakened here by the tea party, and could his position be in jeopardy? >> i don't think in jeopardy, but weakened a little bit. he merged victorious and he got the deal through and a lot more than the majority of the republican caucus through, so he is coming out okay on this, and

mitch mcconnell the republican leader in the senate was behind the scenes very instrumental in putting the deal together, and for those who wanted to avoid a default, he has to emerge as one of the unsung heroes of the last minute deal if you like the deal to begin with, and most people know the consequences of failure could have been a disaster so most people like it even though they don't love it. >> wolf, erin, thank you both very much. it seems that the best of the president's own party can say about the debt compromise is that it is not perfect, but is it good enough? joining me right now is white house senior adviser valerie jarrett. interesting comment from nancy pelosi that it was not a satan sandwich you had to eat, but satan sandwich with satan fries on the side. >> well, it was not perfect, but in washington, it was the art of the possible and what is most important is that we protect the united states reputation and full faith and credit that

everyone around the world looks to and prethe aaa rating and appreciatable time, and nobody wanted to go through this debate through the holiday season and continue this cloud of uncertainty having a chilling effect on the economy. that is something that the president was determined to have, and we now have a deal if in fact it is passed be i the senate and signed by the president that will last until 2013. that is certainty that is important. >> and you think that when the american people voted for barack obama in such huge numbers and then when he promised change, they felt they were having to be eating satan sandwiches and doing deals with the devil? i mean, it is not quite what we hoped for, was it? >> well, it is a messy process and the president said it last night, but in the end, the congress acted responsibly and now we can turn the conversation to where it belongs to gaining jobs and preparing the economy to prepare for the future and