the president among friends and defiant. >> we are all fighting battles but i love fighting these battles. >> blame rudy. shifting stories about paying a porn star. >> how is rudy doing, mr. president? >> he started yesterday. he will get his facts straight. he is a great guy. >> big primaries this week. the big test, the trump effect. >> for the first time in a long time to be the working man. >> "inside politics" the biggest

stories sourced by the best reporters now. welcome to "inside politic" i'm john king. the president is the issue in the 2018 mid term elections and this he hopes is the up side. >> we will call this plan the tax cut plan. tax cut. c-u-t. we are going to dut taxes. >> it is the first time, the biggest in our history. >> the down side was on full display this past week shifting stories about a campaign payment to a porn actress. with the shifts both legal questions and a political credibility crisis. >> i am giving you a fact that you don't know. it's not campaign money. no campaign finance violation. >> so they funneled it through a

law firm? >> and the president repaid it. imagine if that came out on october 15, 2016 in the middle of the last debate with hillary clinton. >> so to make it go away they made this -- >> cohen made it go away. he did his job. >> big primaries showcase the gop's trump effect and test the patience of trump voters. >> you voted for president trump. >> yes. >> still feel good about that? >> it's been an interesting ride. you just never know what to expect. i think some things he is trying to get done are good but there are so many distractions it is hard to stay, you know, follow him and determine is he doing good things or is he so off track. i think deep down he really is for the good of the people. >> with us to share the

reporting and insights this sunday phil mattingly and katherine lucy of the the associated press. the president's story about the stormy daniels hush money payment is changing even though he will insist it isn't. this just last night from the president's new lead lawyer and chaos maker. >> even if it was for campaign purposes if it was to save his family, to save embarrassment it is not a campaign donation. even if it was a campaign donation the president reimbursed it fully and the fact is there is no way this is a campaign finance violation of any kind. it was an ex penditure. >> the feds will get the last words on that and other transactions bike michael cohen. questions about violations of campaign laws could be complicated but this is not.

this hour last sunday the president's position was that he knew nothing about the settlement or the payment to the porn actress. this sunday the president knew about the payment and more than reimbursed michael cohen and fixer for taking care of it. giuliani saying the president knew about the payment. the "new york times" reports he had known for at least several month whz he said last month. in other words, the president of the united states lied last month on air force one and then repeatedly sent out people who work for him and paid by taxpayers to lie, too. we are in a different position this sunday. you asked the president that question on air force one. what do you know about the payment? he said nothing. call my attorney michael cohen. then you tried again the other day. you tried to get the president to clear it up. good luck. >> we're not changing any stories. all i'm telling you is that this

country is right now running so smooth and to be bringing up that kind of crap and bringing up witch hunts all the time, that is all you want to talk about you are going to -- excuse me. >> you said you did not know. >> you go back and take a look. you will see what i said. >> you said no. >> you look at what i said. >> we will look at what he said. he said he knew nothing about the payment, call my attorney michael cohen. now his attorney says he knew about the payment and reimbursed and then the confusion. the president changed his story. >> the story has changed when asked to explain why the change he did not clarify and he also sort of tried to qualify the rudy statement some saying that he doesn't know all the facts yet. when pushed about what did rudy giuliani get wrong he wouldn't

engage. we are left confused. >> what rudy giuliani has tried to clean up is when he said imagine if this came out in the last debate with hillary clinton trying to clean up that it is not a finance violation and it is not a financial disclosure violation because he says it wasn't a loan. we'll leave that to the ethics lawyers. let's start with the credibility crisis. this is the president of the united states. he lied. standing on air force one which i would like to think is a symbol of democracy. >> this is certainly not the first time that the president has boldly stated something that is completely at odds with the facts that are obvious to anyone with eyes and ears. that is something that he does and something that he has always done as president and long before. i do think that it's not so much that he has the credibility to

lose or even about the legal issue which is relatively picking the campaign finance violation even if it is found as rather technical and small. it is more just this ongoing storm, you can say, about the payments, about the method, about the impression that it gives people babout these repeated cover ups. people are paying attention to this story not because they care about whether the paperwork was filed correctly but because of what it says about the president who was allegedly having affairs including one with a porn actress and then paying off women. >> i think there are two broad repercussions. the president and his team are talking about this on a daily basis instead of talking about tax cuts going into pretty nasty mid term season.

i think there is repercussion wheres you have new addition to the legal team adding about as much clarity maybe to the outside of a fish bowl that hasn't been washed. talking in an interview that nobody knew about and white house staff flummoxed. i didn't know about any of this. everybody laughs and says this is what the president does. that's running over your staff with a bus, a staff working hard to try to get your message out and convey your wishes to the american people. that is problematic on the long term beyond whatever the story says about the president or the white house. >> if it is about the lunatic lies about my crowd is bigger than your crowd or the long list of things, those are settled in the political market place. this could be settled in court.

you have kellyanne conway saying i didn't know about this and i was campaign manager. it is potentially a matter of campaign finance law. first i want to read from your reporting because we will get to the president's words on rudy giuliani in a minute. he brings in this high profile guy, clearly a guy who likes to be on tv. clearly a guy who also caused a mess. despite fallout giuliani appe appeared to be in good graces. he says he loves me. does he love him? >> it's complicated as anything is. what seems to have happened is on wednesday night rudy giuliani goes on fox news with only the knowledge of the president. sarah huckabee sanders doesn't know. there is a series of startling

proclamation. the president at first seems fairly okay with this. as it plays out where the headlines are the president lied or president said something and rudy giuliani said something different that he could have jeopardized attorney/client privilege by going on national television and describing a conversation with a client and offered new rationale to say comey would not tell the president he wasn't under investigation. you have giuliani who has swagger on tv that the president likes. the president knows rudy giuliani is known as america's mayor and someone who has credibility. and then you have everyone else saying there is a whole problems caused us on television. the president's mood seems to stick with rudy giuliani. inside the white house folks are saying there has to be some coordination here because we are causing more problems than we are solving.

we are going out to solve one campaign finance problem but opening up other doors. >> the president tweeted initially backing up rudy's account which was forget everything we said before. the president knew about it. the president reimbursed michael cohen for it. forget everything we have said in the past and the president knew about the payment. with his money reimbursed. instead the president says this. >> rudy is a great guy but he just started a day ago. he really has his heart into it. he is working hard. he is learning the subject matter. when rudy made the statement, he had just started and wasn't totally familiar with everything. >> key point. giuliani has issued statements to clean things up. all he has cleaned up is he says it wasn't about the campaign but about saving the family from

embarrassment. the key point is he has not said i was wrong and the president didn't know about this. the president knew about this. the president reimbursed this repeatedly which is 100% contradictory. said people were paid by taxpayers. >> one thing we see on this beat is just how hard it is to figure out what is going on. one person will tell you x. one will say y. someone will say z. you go all of these things cannot be true. >> and that's what we have seen this week. >> sarah huckabee sanders saying one thing. the president saying one thing. you have his lawyer talking about north korean hostages freed on television and then sarah huckabee sanders saying we can't confirm that rudy giuliani is saying these hostages are going to be free. the united states cannot confirm. the number of stories you go

through in a period of 36 to 48 hours are head spinning. >> or 36 to 48 minutes. >> in particularly on the stormy daniels part. we have seen so many different stories. >> the legal questions will continue. a few words from your colleague, does it bother anyone? it should. that is the credibility crisis. we will see where the legal questions take us. the trump effect on this week's big primaries and unemployment report. and for politicians say the darnedest things the woman who you might say is the eye of the storm. >> i work in adult films. we are not really known for our acting. >> what do you need for this to all go away? >> a resignation.

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first worry about the base, second worry about the base. third, worry about the base. to that end the president wants you and especially the national rifle association to forget february. >> now thanks to your activism and dedication you have an administration fighting to protect your second amendment and we will protect your second amendment. >> your second amendment rights are under siege but they will never, ever be under siege as long as i'm your president. >> never ever the president said. you might remember just three months ago after the parkland, florida shooting the same president talked about raising the age for gun purchases and mocked lawmakers for being

afraid of the nra. one says the president seems now to be all talk. >> he is a professional liar. if he is around families he might say something in support of common sense gun reform but at the nra will do anything to get a cheer. >> is it as simple as -- then officials came in and talked to him and he realized i'm going back to the base, back to the second amendment? >> i think this is an interesting case study. the president has these instincts that are sort of trans partisan and go against what has been the dogma of the republican party and enforced by groups like the nra. you saw in books that he has written in the past and on the campaign trail he sometimes had this instinct on guns. he is not a gun guy. his son is.

trump isn't into guns. he is surrounded on so many issues from trade to spending and everything else that he is surrounded by conservatives. so his circle is all conservatives. it's all republicans. so whenever he does creep up to the edge on polarizing issues like this they are calling him back saying here is what your base thinks about this. here is what your people and he is very attuned. he does care about what his base thinks about things. he is very sensitive to that. i think you have immigration is another issue where you have trump when he is all by himself having these instincts. the people around him will always remind him where his -- >> someone who i think is attracted to the big win or sort of big dramatic move. the idea that he could somehow broker a transformative deal is always important. i think in these moments he did

meet with the families and i think that was appealing the idea that he could succeed. >> and republicans on capitol hill said we will not vote for it. even if you want it you are not going to get it. one of the striking things, number of primaries on tuesday. we will be talking about the impact throughout the week. i was in indiana where you have three republican candidates for a senate seat. the big issue is not taxes. the big issue is not spending or education reform. the big issue is how close you can get to donald trump. >> we are not going to beat joe donelly with a rhino. >> i get teamwork. that's why i back president trump's agenda. >> the u.s. senate is blocking our president. i'm running to shake up the senate. >> we need fewer career politicians in washington, folks

who actually live conservative values who aren't beholdened to special interests and put you first. >> the president carried the state by a ton. the vice president is from there. if you need evidence of the trump effect candidates deciding i'm with trump or with trump or more with trump than the other guy. >> i think that's not in isolation right there. you can go primary through primary people are trying to get as close as possible. will republicans leave trump? the party itself has become the party of trump and all candidates are looking at numbers and people and base is everything in a primary. the interesting element in all of that some point you will hav to pivot back. i think the ability to do that after putting ads out like this will be fascinating to watch if

they try at all or if they decide this is the path. >> democrats have a tendency. this is renee elliot. she worked at carrier in indiana. a lot of jobs were lost and she lost hers. >> i didn't hear anything on attacking the opioid crisis. i didn't hear anything about the plan they had. i didn't hear anything about what jobs they were going to create. they weren't talking about the people. they were talking about how they were going to be better for president trump. what about the voters? >> just one voter. there was a trump supporter who was looking to talk about the issues and she kind of turned off by the idea. >> one of the things we have

seen was the campaign was about blowing up the system and i alone can fix it and you vote for me and everything is going to change. when you have the candidates in 201 who are running and president trump is on the campaign trail. the president wanted to point to unemployment rate and what he is doing in north korea, how the economy is doing in the stock market. there are a lot of people who don't really know if their hyphhas impr hyphhas -- life improved. they can do anything including shooting a man on fifth avenue. for folks on the fence who saw they didn't like either one of them, they are different alternatives and different thinking. >> much like 2016 the two congressmen running that risk because their title as congressmen. saying i'm not from washington. we see this from west virginia where a convicted felon is running for senate nomination against state attorney general

and against a congressman. he says the bigger problem mitch mcconnell is the problem. >> mitch mcconnell has created millions of jobs for china people. mitch has gotten rich. in fact, china family has given him tens of millions of dollars. they are running false negative ads against me. i will ditch cocaine mitch for the sake of the kids. >> it is not terribly refined ad. people say he is moving in the polls because he is saying i don't have a political title and i will get the establishment. >> i think there are two different problems for republicans posed by the whole trump effect. you do see in various races it's almost as if republicans made such a tradition of having messy and divisive primaries that they can't stop doing it. we have seen this every two

years for the past decade. there is this problem for republicans. you need trump to win a primary and then in fact it's not clear if trump is more of a net benefit than a net weakness because he may galvanize your opponents more than he gets your supporters out to vote. then there is the other problem that trump is not on the ballot on november, the republican congress is and republicans running for other offices. and so they are the ones who trump has in many instances blamed for the problems in washington. so that is why you have all of these nonincumbents saying the senate isn't helping president trump enough. you have to send me there to support trump. a lot of republican voters i have spoken to when you ask them about trump they say it is the senate and the house that aren't doing his -- >> they didn't like the

establishment to begin with. trump has just put that on steroids. stay with us. it will be interesting. up next for us, federal judge puts special counsel on the spot suggesting part of an effort to get the president. minutes to yourself. this calls for a taste of cheesecake. philadelphia cheesecake cups. rich, creamy cheesecake with real strawberries. find them with the refrigerated desserts. with real strawberries.

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important new questions about the special counsel and his mandate including from a federal judge overseeing a high profile case. that judge oversees a bank fraud case the special counsel has

brought against paul manafort who was under investigation. the justice department folded the work into the special counsel's portfolio. still said this friday during a debate. you don't really care about mr. manafort's bank fraud. instead the judge said prosecutors are looking for material that would lead to trump's prosecution or impeachment. interesting warning shot to the special counsel here who there should be scrutiny. what is your evidence for this. the interesting thing is how does mueller respond. in the past when challenged in court that is when we learned he had to file documents, has to explain. how seriously should the special counsel take this? >> extremely. i think to your point it is a brush back pitch but i think anytime prosecution gets that from a judge or defense team gets that you have to take notice. i don't think there is question

about the team that mueller put -- strike that. the team that mueller put together when you talk to people in legal circles recognize there is a lot of talent and lengthy resumes with a lot of experience on that team. the idea that the brushback pitch will throw them off kilter i think is not realistic. does it feed narratives? no question about it. you have heard the president say it i think he said it in a speech about an hour and a half later. the interesting element is how they handle this. the special counsel's team has a lot of experience dealing with things like this. what their next steps are to prove their rationale will be interesting and an important development in terms of -- >> to the political argument point mueller will have to answer this in court. he will look at why is he looking here. the president did mention this on friday. he read from a cnn report when

he was doing that despite what he says we know where he looks when trying to get news. then last night rudy giuliani making the same point. >> maybe they think manafort is somebody they can flip faster. the fact is this all plays into what my client, the president of the united states has been saying for quite some time. the judge said this is a witch-hunt with a tremendous amount of government misconduct attached to it. >> interesting politically but also because rudy giuliani said we don't need a special counsel but if we have one it should be bob mueller. >> the judge gives credence to the argument that this investigation was to find russian metling in the election and to find whether anyone in the campaign colluded with russians to influence the election. and the argument they have been making is it's not about paul manafort's bank records or

lobbying. it's not about obstruction of justice and firing of officials once the president came into office. kind of a fundamental disagreement over what the special counsel should be doing. the special counsel has contended and continues to contend is in the course of this investigation we have seen potential obstruction of justice and seen other climes that need to be probed and we have seen all kinds of activities on the campaign. this investigation has really sprung now. what you have seen rudy giuliani try to do i think is really go to that core message. this was about russian interference. what we are looking at is not russian interference. >> we do not get intellectual consistency. republicans didn't raise these objections when we went to white water. their argument was you find evidence of other crimes. you pursue the evidence.

that was then. this is now. there are questions about mueller. he will have to answer them in court. we don't know and the people challenging mueller don't know. i want to bring in michael caputo. he is saying publically what so many witnesses called before the mueller investigation have told us privately. they go into the rooms thinking this was my meeting. i arranged it. this was my thing and they know more. >> they know more about what i did in 2016 than i knew. i think they are very focussed on russian collusion. i think they believe they will get to something. they are talking about wiki leaks and all things you would expect that they are looking into. i'm concerned for some of my friends who are in peril. >> one thing we learned over the weekend that tom barack who has been involved in the campaign and transition was interviewed by investigators.

as this plays out we are learning more and more about the depth of this investigation. the other thing i wanted to note was that this comes as there is this ongoing debate about whether trump will sit for an interview. that trump on friday said he would love to but will it be fair. these comments then color that process. >> the fairness part he said repeatedly. to the point that the special counsel should be subjected to -- we should all remember the people writing the articles and judges saying these things no so little about what robert mueller knows. don't expect it to come on your time table. when we come back senator john mccain still feisty and still at odds with president trump even from a distance. i learn type s puts me at greater risk for heart attack or stroke. can one medicine help treat both blood sugar and cardiovascular risk?

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cnn learned this reflected as mccain writes the script for his final farewell. the senator does not want president trump to attend his funeral. we hope that day is a long ways off. front page of the "new york times" writing at home will cain shares memories and regrets. it is fascinating tazplas it pl out. john mccain is writing one last book and making a lot of news. part of it is his tone saying i don't like president trump. >> whether we think each other right or wrong on our views of the issues of the day we owe each other our respect as long as our character merits respect and as long as we share for all our differences and debates that demean our politics a mutual devotion to the ideals our nation was conceived to uphold

that all are created equal and liberty and equal justice are the natural rights of all. >> we owe each other respect as long as our character merits respect. >> a statement as gracious as that ought not be a tweet of a political figure much less a sitting president. it is unmistakable who he is talking about. >> you saw when barbara bush died you saw melania trump at the funeral. president trump was not there. it seems hard to believe that the bush family has much love for president trump. same with john mccain. the traditional republican dynasty in death does not want to be associated with president trump. >> there was another moment with ca mccain early. you probably remember when trump spoke about his war record.

i think that set the tone or revealed a lot about the kind of race that trump was going to run. now you see this call for civility. >> if you know senator camccaine had tough campaigns against barack obama. interesting in the new book he writes he recalls advisers warned him that picking vice presidential candidates would divide republicans. it was sound advice that i could reason but my gut told me to ignore it and i wish i had. he wishes he picked joe lieberman as opposed to pasarah palin. >> that moment in iowa did reveal that republican voters didn't care. republican voters were not attracted to the call for civility and the dynastic and the sort of establishment appeal of people like the bushes, jeb

bush and john mccain that when it came down to it they preferred trump's vulgarity and appeal and his insults and all of that. we are seeing the literal passing of a generation of politicians. >> they are disappointed that anybody with a title has let them down. >> that story that jonathan martin had that was a remarkable story. joe biden, lieberman, all these people paying homage to this cornerstone of american politics and him figuring out his future is really worth reading. >> our reporters share from their notebooks next including a squabble over money. as king midas, i expect things to last a looong time. and so should you. midas has a lifetime guarantee on these parts. that's right. on things like struts, brakes, shocks. all kinds of automobile parts. guaranteed for life. does he turn everything to gold?

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ask great reporters to share something and get you ahead of the political news. >> twice in the last week speaking to supporters president trump has floated the idea of shutting down the government in late september when the new funding deadline comes up. now, on the one hand he sort of cried wolf in this manner many times before repeatedly said every time there was a funding deadline in the past year that he would be willing to shut the government down. if you are a republican in congress you don't need to be reminded that the late september deadline exists and there is again going to be a fight and again this issue of the border wall. the president showing he is well aware of that and he has been listening to some of the freedom caucus members who are still full of angst over the last spending deal that was so generous that they felt like gave too much away to the democrats and didn't fund the border wall. if you are president trump you are reminder supporters that

they didn't get the wall that they were promised. republicans really not looking forward to that. >> september just before the election. >> great timing. >> everything is awesome. >> along those lines one of the best stories in the swirl of huge headlines. spending fight going on behind the scenes between republicans on capitol hill and republicans in the white house. the president making no secret of his disdain for that. his budget chief and republican leader in the house decided they work on something, spending cuts known as rescissions to try to pacify a very angry president. they started with a bold idea. $60 billion in cuts. that has been paired back in a major way because of republicans. they didn't think they could have the votes to get it through the republican-led house. it has been paired back. now i'm told it should arrive on capitol hill at about 11 billion. it won't touch the omnibus at

all. the dynamics you have leadership elections. paul ryan's speakers trying to pair things back and mitch mcconnell saying this is a bad idea. the end result obviously paired back. an interesting fight that under scores the dynamic. >> if the president has such disdain for it maybe he should have not signed it. >> people are watching the nomination fight. there is a major thin majority. a lot of skepticism. a lot of democrats raised questions. white house thinks it can get some democrats on board. president trump and top officials having her confirmed would be a big win. certainly inside the building is not seen as a sure fire thing if

they can not get the cia nominee through the senate. >> amid all the conversation about stormy daniels he says he has a time and place we haven't gotten details yet but previously given hints and suggested interest in doing it in the de-militarized zone and indicated late may or early june. of course, it is important to remember it's amazing that this is happening at all, these conversations. just a few months ago the president was taunting kim jong-un about the size of his nuclear button calling him little rocket man. diplomatic efforts have picked up and we know the president is very eager to make it happen. >> maybe we will get time and

place in the days ahead. democrats are full of optimism and the outlook is pretty good and maybe great. they are fools if they don't recognize longer term warning signs in white working class and rural america. i spent a couple of days in indiana including visit to the lincoln day dinner, pot luck event. candidates get to stand up and say hello and ask for votes. it was striking how many republican candidates for local office introduced themselves as former long time democrats. it was a flashback to travelers across the party switching south in the 1990s. when we tell you who won the house and senate don't forget to take a look deeper down ballot to see if democrats are improving long term prognosis and dealing with their giant bench problem. that's it for us. thanks for sharing your sunday morning. we are here at noon eastern week days. up next "state of the union"

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legal disarray. president trump's new lawyer is facing questions. >> the fact is there is no way there is a campaign finance violation. >> after contradicting the president's own version of events. >> he will get his facts straight. >> is rudy giuliani helping or hurting his new client? we will ask counselor to the president kellyanne conway next. and credibility crisis. a new report reveals president trump knew abo