chris also spoke out to ryan seacrest, he produces a reality show on e! keeping up with the kardashians. she said her dress is going to

i'm erin burnett, "outfront" tonight, iran. we begin with a new report on iran's nuclear program an 11-page release from the international atomic energy agency. the conclusions reveal the doubts and suspicions about what the iranian government the telling the world about its nuclear efforts. iran says its nuclear program is for peaceful purposes including cancer treatment. we read the report and it does not say that iran is making a bomb, but it does say that iran is rapidly expanding its nuclear activity and we consulted experts today including scientists and forler wens inspectors. they say iran has tripled its enrichment of uranium since last year.

they also say tehran continues to block inspectors from getting inside a key nuclear facility. and the report says that 19 .8 kilograms of natural uranium metal is still unaccounted for. the u.s. responded today. it was a scathing response. there is confusion. there is something really important we want to point out and we'll get to that, but first, the iranian side of the story. just a short time ago, i spoke to a nuclear scientist and began by asking him about the ramped up production of enriched uranium. >> i'm proud to say we will continue without interruption. of course we have to make nuclear fuel for tehran's reactor since nobody give us the

fuel and this reactor has to produce radioizer for hospital. millions of pashlts need this -- his support i'm proud to say is clean bill of health. exclusively peaceful nature of nuclear activities in iran. >> it doesn't appear to be that. it does say some activities may be ongoing and you've seen the headlines around the world. the report also says in the section on possible military dimensions to the iranian nuclear program this. and they cite their report from november 2011. they say that there's information available to the agency indicating that iran has carried out activities relevant to the development of a nuclear explosive device. they say that that information has come from a variety of independent sources and is assessed by the agency to be overall credible.

can you say categoically that iran is not developing or is not even planning to develop a nuclear weapon? >> i categorically reject any sort of allegation. i have been involved for almost the last ten years working with inspectors on this issue of allegations. in many cases, there have been allegations about military size. that we do not have any nuclear weapon program. any activities related to nuclear weapon programs. >> one other question. in section k of the report, it ree fers to missing uranium that the iaea says they have been trying to account for for quite some time. 19.8 kilograms. where is that? >> this is a very pity that such information in fact diverted public from the real scientific information. 20 kilogram is just totally

ignorable. they just want to make a noise about something. >> this is crucial from a question of sovereignty for iran. even if iran has no intention of developing a nuclear weapon, do you believe that if iran made that choice, that that is its right its right to make that choice as a sovereign and independent nation? >> i'm sayinging that iran without nuclear power is as strong and power without. this is a tragic mistake for iran to go to nuclear weapon. not only because of religious commitment, but strategically, this is a mistake. without nuclear, we are very powerful. sanctions, which you know that sanctions have had no effect on our activities for nuclear energy because we are in fact self-sufficient in producing all components of centerfuge and only the sanctions are disturbing somehow the public. i assure you all nuclear activities are peaceful.

peace all over the world. >> thank you very much again. >> the united states government responded to the report. and the national security counsel spokesperson said this. quote, when combined with its continued stone walling of international inspector, iran's actions demonstrate why iran has failed to convince the international community that its nuclear program is peaceful. now, this statement was tough. but it seems to contradict some recent iraqs from top officials. the chairman of the joint chiefs of staff said quote, the iranian regime is not decided they will embark on the effort to webbize and today, "the los angeles times" wrote an article saying u.s. intelligence official last year believed that iran was not trying to build a nuclear bomb. what's going on here? our friend tonight, wesley clark.

wonderful to see you, sir. >> thank you very much. >> what is your reaction to this iranian response to the report? the headlines are all talking about the surge in enrichment activity. the report says some of the thuk lehr activities may still be ongoing. what did you take away from what the am bass dor had to say? >> i think this is a standard operating procedure of governments who want to conceal these activities. as you is him, he's all in interest of peace, where's the missing uranium, why aren't inspectors permitted there 24 hours a day? if iran were worried about as it should be, about sanctions and other opgs still on the table and they weren't after a nuclear weapons program, surely they could make a stronger effort to convince the world of their innocence.

this is part of a diplomatic stall. ipg what you're seeing in the intelligence reports and the iaea report shows they're moving towards the acquisition of the capacity to develop and field a nuclear weapon. they may not have it yet and when general dempsey says they haven't made that decision, he's looking at it. but our president is looking at all this information. he's doing the best he can to avoid taking us to another military conflict. he says all options are on the table and we think negotiations are still the way to go. the sanctions are having an impact on iran and let's hope that we can dissuade them from moving toward a nuclear weaponization. >> on the issue of sanction, even a year ago when i was there, they were affecting regular people for sure in so far as they were affecting the government's ability to fill subsiies for things like food. you heard the ambassador -- is

that all just sort of bluster? >> well, sanctions have delayed the development of the nuclear program for years. they've had to create shadow corporations and big borrowed steal bits of technology and they've done it despite the sanctions, but it's been much shower. these sanctions are directed against the banking facilities of the iranian government. it's central bank and ability to operate in international kournsy markets with financial institutions and this strikes at their ability to export oil and that's their principle source of earnings before exchange and that is a vital interest and being impacted. >> i wanted to play something for you. last night, rudy giuliani was a guest on this program. here's what he said. >> can't say the word bomb them.

we need a president who can say the words bomb them and actually can do it if he has to in order to protect us from iran becoming a nuclear power and most importantly, they have to believe that our president will do that. >> some might say it's irresponsible to talk about bombing. >> i'm using their administration. they have this case in washington in which the iranian government paid money to have the saudi arabian ambassador killed. >> do you think he's correct or would that be irresponsible? >> well, i think when you escalate the rhetoric, that's not necessarily what's required at this point. but i do hope that the iranian leaders having seen shock and awe in baghdad in 2003, what we did in libya with just a small fraction of u.s. capability, understand there is a military option. it's there. i haven't seen it. i'm sure when general dempsey and our men and women prepare

it, it's going to be devastating and they should understand that. but this is not the time to inflate public fears on a military option, so i wouldn't agree on that point. what's being conveyed to iran is being conveyed in a variety of fact channels to them and i'm sure they understand or having given the information to understand. i think we're on the right track because we don't want to have to use the military option until all alternatives for exhausted. that's been the lesson of the last decade. the lesson of iraq. don't prematurely jump on the military option because it's easy to get into a conflict, but not always easy to see the end of it. and even though there is a very strong capable military option to take out iran's infrastructure, you'd be left

with a nation of 75 million people, which is a huge problem for the international community. you might be left with other regional problems, although i suspect that iranian's bluster is just that. that we could handle all of its regulatory threats, but never the less, you don't want to be left with the aftermath of this and you don't want a lot of innocent people to die. so if there are alternatives, we should ask our leadership to do everything possible to use those alternatives rather than resort to the final option. >> we spoke to a former weapons inspector today and he says iran doesn't have a civilian need for the uranium it's been enriching, which fits with your view. but he said if iran makes this decision, this whole issue f o when they make the decision, it's highlighted as strange by this point. that if they decide to go nuclear, they could be nuclear with weapons grade and rich uranium within six montss, bomb within 12.

but the bottom line as someone who has done what you've done in the u.s. military, are we obsessed over the wrong issue? should they be allowed, that issue of sovereignty, to make their own choice? >> i don't think you could permit them to make their own choice because i don't think we want a nuclear arms race in this region. the region is central to the world's economy. it's very unstablg. look at what's going on in syria. which is more or less a proxy war against iran. if you look at this and think, oh, my goodness, what if each of these states have had nuclear weapons in in addition. this is a very important decision. it is not in iran's sovereign right to make this decision. that's why they're trying to deceive is world on it. what the real issue here is for the leadership is they're going to continue to creep up as close as they can without having to

say or indicate or let people believe they have made a quote decision to make a nuclear weapon. they've reduced this time from years to six months. maybe 12. we don't know. the question will be how close can we allow it to come before we take action and that's this subject of i'm sure that the best minds in washington and probably in tel aviv as well on this issue. >> thank you very much. seven states have filed suit against the federal government on the president's contraception rule. the attorney general from texas. one of the men, comes "outfront." and the producer of amazing grace dead in uganda. one of his close friends. the cadillac cts sport sedan was designed with near-perfect weight balance from front to back... and back to front. ♪ giving you exceptional control

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tonight, the issue of birth control splitting this country down the middle. we have a new poll just out on president obama's rule which requires free birth control coverage for all workers even those employeed by religious institutions. the president announced a compromise by exsemss institutions from offering the coverage and making snurns companies pay. that's not bb enough for the critics. today, seven states filed a lawsuit saying the rules violate freedom of religion. one attorney is greg aabbot of texas.

polls show this issue is divided on whether birth control should be free. you feel you have the mandate to bring this kind of a suit forward at this point? >> first, those polls really wouldn't have any consequence about whether or not a religious liberty or institutional principle has been at risk. if polls mattered, it would mean they would base their stigs to strike down obamacare as a whole because more americans are against it than for it. to your point, the issue that we are filing the lawsuit about is one that protects religious freedom and doesn't have anything to do with regard to whether or not government can or should offer contraceptives. the government is perfectly fine in offering contraceptives to every woman in the entire country. the issue is not whether or not the government offers

contraceptives. it's the pathway they have chosen to get there, which is tramabing the conscious and objectives of religious entities. going back to our general -- >> i want to make sure i understand. you say you don't have a problem with them having birth control offered, but if someone works for a religious affiliated institution, the insurance companies are paying, that you're still not okay with that because of where they work. that that is a violation of the religious institution's rights? >> well, there's all kinds of problems with that. for one, what the president said in his compromise is not what the rule and regulations say. the president saying something different than the final rule that is being imposed. >> so would you be all right if his compromise became the law? >> well, his -- the second thing is that his compromise still does require religious based organizations to provide

contraceptives as well as abortion inducing drugs contrary to the religious faith. the third thing, if the government wants to ensure contraceptives are able to everyone, the government can in other legal ways such as through the tax and spend clause. they don't have to force this down the throats against religious organizations, their faith-based prince p principle. >> i'm still not totally certain how if the compromise would violate that because the insurance company not the religious institution. i understand your point that's not yet law, but i don't understand why that would be a problem. >> let me be clear. >> okay, make it clear, please. >> there are many hospitals for one right here in austin, texas, a catholic hospital, that is self-insured. that hospital is going to have to provide those services for free or come out of pocket and pay for them.

those that are not self-insured are still going to bear the burden in providing the project. >> i understand the self-insurance point. seven attorneys are behind the lawsuit. they're all republican. is this political? >> it is not at all. there are 26 who sued the administration for the lawsuit itself. they happen to be republican because i think the trats are afraid to accept up and challenge the administration. this is about the constitution. it's the reason why we have won twice in two federal courts in our case so far and why the case is going to the u.s. support next month. the same will happen with this lawsuit. this is all about uptolding the united states constitution that is casting aside fundamental institutional principles in order to reach certain conditions. >> six of the seven involved are men. i didn't look at attorneys general across the country. but in this case, are you

worried that creates an image problem? that it is men suing an issue that frankly applies to women? >> right, the issue we're concerned about is the constitutional issue of freedom of religion and women can have full access to contraceptives, health care x across the board in ways that the government can provide in legal way that doesn't trample the constitutional liberties of men and women in this country. and an american reality show producer was in uganda and he died. was found dead late last week on the balcony of his hotel room. police say he died of an apparent cocaine overdose. his wife told fox news it points to him being poisoned. a woman named catherine fuller was found unconscious next to

rice. she's alive and recovering in a hospital, but is alive and not able to speak. was it a drug overdose or did someone poison rice? appreciate you coming in. what is your take on this story so far? this issue of a cocaine overdose. is this something that would fit with the man you knew? >> no, jeff rice was not a drug user. i worked with him as recently as december. for ten days, i never even saw h him get drunk. he's an absolutely professional and works hard all the time. great family man. two beautiful kids. a lovely wife. he's not a habitual drug user. not somebody i've ever seen do drugs. >> had you heard him talking about catherine fuller? did you know anything out her?

>> i knew katie. she was his production coordinator. worked at his company. she was terrific. really energetic. very straight laced, very sweet girl, yeah. >> again, the question about cocaine involvement, is that something that would be inconsistent with katie, as you call her? >> i've worked with jeff now on two different shows, so i really don't want to speculate about katie. i didn't know her well, but she had worked for jeff for some time and jeff would never have somebody work for him that wasn't a true professional. >> and there's nothing strange in their relationship? >> not that i saw. as recently in december, i spent ten days with him in south africa. i said, jeff, i think it would

be really cool if we had a shark e pert and in 24 hour, he could find me the best in the area to put on camera. he was really knowledgeable and really professional. he's the guy that we show you pictures of his kids not do drug. i've never even seen him drink too much. >> you do interact with a lot of local people, right? not sure what the full nature of the project he was on might have been, but there could have been something else i suppose that would have been involved. >> yeah, absolutely. i mean, what i'd like to see is an independent investigation. all week long, we've gotten these pieces of reports from government there and authorities and first, it's poison. then cocaine in his stomach. now, heroin's found. every day, it gets more ridiculous and extreme. i'm sure the authorities there

are good at what they do, but i would like to see somebody come in and investigate this who has you know, who's completely objective. >> well thank you very much. appreciate your coming "outfront" tonight. we'll keep following that story. very, very strange. gas prices are rising. iran is part of the reason. and mitt romney, his tax plan was a lot shorter than the 500 pages of his tax returns, but we ran all the numbers. and the question is, do they add up or mean more debt and we have an answer cht we start the . peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving.

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second half with stories we care about and to the "outfront 5." first of all, iran. the report says iranian won't let inspectors look at a key facility. and that iran is ramping up production of enriched uranium. iran's permanent representative told me tonight clearly it is for peaceful purposes and that iran has nothing to hide. wesley clark doesn't buy iran ice story. >> i think this is a standard operating procedure of governments that want to conceal these activities. having deny everything and claim he's all in the interest of peace, but as you ask him, he's all in the interest of peace,

where's the missing uranium. why aren't inspectors permitted and allowed 24 hours a day? >> number two, the problems iran and the debate and rhetoric has caused oil prices to rise to $109.70 a barrel. now, the last time oil traded that high was may, 2008. the last time the market was as high as it is. risinging oil prices have meant higher prices at the pump. prices rised three and a half cents overnight. average price now$3.65. and sheldon adelson has made another donation. we don't know the size yet, but the sources said it was made recently. he and his wife have already donated $10 million to newt gingrich's superpac. and they requested hard drives

and financial information dating back to january 199 8. we found federal prosecutor also requested all out of court statements penn state made relating to sandusky. a spokeswoman tells us they are fulling cooperate rating saying quote, the victims, penn state community and the public deserve to know the facts and see that justice is done. it has been 203 days since america lost its top credit rating. what are we doing to get it back? getting over the 13,000 hump would help. mitt romney has been hawking his tax plan in michigan. the plan will lower individual marginal tax rates by 20% and lower the corporate rate to 25%. here's what mitt romney had to say when giving details about the plan in michigan today. >> these changes i will not allow to raise the deficit.

stronger economic growth. spending cuts and broadening the base will off set the reductions. >> is he right? will his plan avoid categorically adding to the deficit? this is going to be a problem here. to be fair, it's going to cost a lot of money, but mitt romney has not really gone into the spending side. he wants entitlement reform and wants to repeal president obama's health care plan, but a lot of money is going to have to come from economic growth. plain and simple. according to an analysis down for "outfront", the plan when you include the bush tax cuts being extended and then the romney cuts, prepare yourself. 8.$2 trillion over the next ten years. economic growth would have to average, get ready for this one, 5.4%.

just for those of you out there who don't track this all the time. i mean, we didn't get that kind of growth in the late 1990s during the internet boom and last year for comparison, 1.7% was the growth. ryan salam, david frum and dave, our democratic strategist. ryan, you have been writing about this all week. even if he has cuts, he is betting on economic growth. >> and a lot of it is cuts to tax expenditures, as well as spending cuts, so it is a real hail mary pass. >> suspending cuts are come on entitlements. >> absolutely. i think a loft lot of those are very sound, very smart. they don't necessarily deliver if you were looking at a cbo analysis, those savings he's going to need.

>> david frum, what's your take on the plan and on the speech where he promised it will not affect the deficit? >> mitt romney in september released a 59 point plan that you can download on to your kindle. it's available on his website. it's extremely detailed. a preface written by renowned economists. it was a careful piece of work. he's ruled out here, it's a hail mary pass. there are no details. it's now got a big additional tax cut beyond the one he proposed in september. it's impossible to avoid thinking this is about republican primary season politics and since romney since september, he locked himself in december into an endorsement of the ryan plan, which basically says we're going to have big cuts in medicare beginning ten years from now, but we're going to hold harmless the medicare population for the next ten years. that means all of the cuts are going to have to come from programs like food stamps and unemployment insurance at a time

when the recovery remains very, very fragile. so not only is this not a carefully considered piece of work, no real numbers, but a big additional tax cut with most of the off setting savings coming from not the wasteful medicare program, but programs for the neediest as we recover from a recession. >> and that, doug, is not something that will go over with a lot of americans regardless of your political affiliation i would imagine. >> i would agree with everything your two panelists have said. there are two take aways for me from in plan. the first, mitt romney meant it when he said he didn't care about the poor. two, it doesn't really look like he cares about the middle class because a disproportionate about of tax cuts will go to benefit the top 1% and three, it doesn't look like he cares about the deficit. so this really is about winning michigan. it's about win the republican nomination.

nothing more. but in the end, it's going to cause him some real problems with independent voters if he's lucky to be the nominee in the general. >> i don't necessarily agree with all the details of the tax plan, but a president does not unilaterally decide what the tax code looks like. you draw out what are your braud areas, what are the things you want to do. a lot of the broad principles are pretty reasonable. but one thing i want to push back on, david had said he endorsed the ryan plan. he offered his own which said here's the thing. we are going to preserve the basic medicare benefit r for seniors that you have today, but we're going to allow private firms to compete to offer that benefit at lower cost. the good thing there is that you're unleashing the private firms so they can actually offer new ways to deliver care. the problem is it doesn't deliver guaranteed savings and when you're offering a plan like this, you're offering guaranteed savings and sometimes, those are

going to be a losery. that's the attention he has. he has a a really good plan that could deliver big saiings, through there's no guarantee. where as you're having a big tax cut, you might get some loss. >> cutting health care costs is something that if anyone can find a way to do it, please, come forward. thanks to all three of you. bizarre testimony during the day care murder trial. the defendant claims he have told to kill bay demon that looked like barery white. and violence in afghanistan. that's next. to think about your money...r ♪ ...that right now, you want to know where you are, and where you'd like to be. we know you'd like to see the same information your advisor does so you can get a deeper understanding of what's going on with your portfolio. we know all this because we asked you,

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now turning to a bizarre murder trail in georgia. a 49-year-old is accused of shooting his alleged mistresses husband as he was dropping off his kids at day care. a surprising twist in court today. newman's alleged mistress and the wife of the victim was thrown out of court. the judge tossed her out after she hugged and kissed a witness had just testified that schneiderman was having an affair. he admits to the murder, but this is also very strange. he said he did it because he had gone insane, that he was visited

by an angel, olivia newton john, and a demon, barry white, who instructed him to kill. i'm a little confused. does this, is this -- is this -- do you get a sense, how do you know if someone's insane? this is almost so insane as to be fake insane. >> exactly and that's my thoughts. in georgia now, they're standard is could this person dif wrennuate between right and wrong so the mental illness portion is separate. whether the person is mentally ill and in this case, they're saying he's bipolar. you can be bipolar and have delusions, but still know who's right or wrong. >> one of the problems, too, that i think the defense has with that argument, that this guy was guilty by reason of

instanty is that this was a man operating at a high level. he was a high level operations manager at general electic. managed about 5,000 engineers and managed a budget of $800 million, so it's very difficult to have someone come from that back ground, no history of mental illness. >> how do they test someone to be insane? could you fake it? >> well i'll tell you how i can tell. don't you have those clients that come to you and say, oh, i see little green men, then you know they're lying. that's the test right there. no. in all seriousness, what we have gone through as prosecutors and defense attorneys, is that if the defense puts forth the insanity defense, then the defense attorney will have the client interviewed by a psychologist and or a psychiatrist. then the prosecutor gets a chance to have the person interviewed by a psychiatrist and or psychologist.

>> typically, the prosecutors have the burden of proof in criminal trials, but in a case where you're pleaded guilty oi reason of insanity, it's almost a burden shifting and now, the defense has to prove the person was insane at the moment. when you look at the fact of this case where this guy fled from the scene, those are things that point to him knowing what he did was wrong. >> what about the role of the mistress? people have said she didn't have, show remorse when her husband died and people can have all kind of reasons an shock at that moment, but is this something they're going to be per suing? >> i think at this point, it's all about the mistress. she's been banished from the courtroom. when you put forth a defense like insanity, the trial becomes

all put the insanity plea and that's it because then, the defense puts on their experts for the insanity plea and then the prosecution has to rebut with the prosecution experts and they're going to forget about the mistress by then. >> the mistress in this case, the relationship she had with the man who died is what makes this case so interesting and what keeps everybody watching. i was going to say sexy, but i didn't want to, because someone died. that's what draws attention to this case is the mistress and the lack of emotion she displayed when he died is doing to be spg people are going to be watching. >> this is going to be a fascinating one. there's insane people, they can manage whole count tris. let's check in with anderson cooper.

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it just looks like a book a detainee isn't supposed to have. >> you remember embedded with troops in afghanistan. in your most recent book, you talk about the difficulty for the u.s. troops and the frustrations a lot of them feel. >> in "the shadow patrol" i

tried to get a sense of what was going on over there. and there's no question that our guys have an incredibly difficult job. what we're trying to do is convince these villages you shouldn't side with the taliban. you should at least remain neutral if not friendly to us. the problem is we're leaving. they know we're leaving whether it's next year or three years. the taliban are staying. they're afghans. so it's hard for us to win that battle. >> and you talk about in the book, the guy in the cia who is coordinaing with a couple to deal heroin. would it surprise you if something like that were not just fiction? >> it would not. there have been small drug rings. in fact, the british i think it is, started searching their returning soldiers' stuff more

carefully because they were concerned about this. the fact we haven't found a major drug ring doesn't mean there isn't one. it just may mean that the people running it are doing a good job of it. >> you talk about having an expiration date. you think we're really there in afghanistan right now. >> i think after ten years you should be le to pose -- you've probably done all you can, let me put it that way. it's also pretty clear that if obama wins, we're going to be out. aside from the special forces. and probably the cia. we'll probably keep those programs, special forces and drones. but the guys on the ground will be gone. >> what's going to happen when you look at the situation with the korans? i'm curious. someone said to me something like this happens. accidental or not, it sets us back ten years. i'm curious to your perception how much of an event like that does hurt the view of the united states? >> it certainly hurts us. does it set us back ten years? no.

does it undo some of -- we can build a hundred schools, when one koran gets burned, it undoes that. it certainly undoes the soft efforts to build good will that we spend a lot of time and money on. >> all right. well, global steel production is way, way down. but that is good news for the rebel alliance. tonight's number is next. in here, the landscaping business grows with snow. to keep big winter jobs on track, at&t provided a mobile solution that lets everyone from field workers to accounting, initiate, bill, and track work in real time. you can't live under a dome in minnesota, that's why there's guys like me. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪

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so, the world's steel production fell about 8% in january. hardest hit, china and japan. output in each of those countries fell by more than 10%. but not hurting? the united states of america. still production was up 6% which is a good piece of news for this country's economy and apparently for our defense. which brings us to tonight's number. 1 quadrillion. yes, a one and 15 zeros. the star wars super weapon has the same steel density of a modern warship. until you realize there's enough steel in the earth' core to build 2 billion death stars. before you worry one of the empires would start building it before we do, it would take 0,