it is great to have you here. come bacand we will talk more. toight, we thank you for being wi us. wewe will see you tomorrow. good night from new york. neil: goldilocks. one out of 75,000 more last month good enough to sho growths ad wonder today in the stock buying binge, notng but this.

they have been focusing o something annoying and meddlesome. thlatest news today reports the obama administtion is indeed allowing the government to md nine american tec giants le google a facebook that have mo user data. only a day after we discovered discovered that millions of phone records fromorin customers. it was appalli, but it did not put so much of a dent in august. but romney knows why. first, in this friday exclusive with fox, a formerrepublican presidential candidate with the likes cis christie. >> it reads like the ballroom scene star wars. how did you get them all at one pace and templates a one ttime.

>> i wanted to bring together people from both sides of the aisle. so we can hear from them and as a group we can listen to them and say what are the highest priorities and ask ourselves, are we actually addressing the highest priorities or not. the answer turned out to be no a surprise. the priorities are republicans are concerned about, the democrats,hey're not being addressed. instead, washington is eing pulled in a lot of different directions and not doing wha has to be done soon how did ou get david axelrod to appear? >> the mayor of los angeles, the democrat asked them to come. they wergracious and willing to come

they were warmly received ev though we disagreed the seemingly on policy. thfunny thing is that we are all amerans. we don't care about e cout. we get alo on a personal basi we are looking for common ground and common visn for the future. >> debate over. neil: to david axelrod mentions peolating scandals? it appears out of control. >> there are some that ar disconcerting. the s and was certain one of -hose. there other ises are other issues that have been brought to the force of the nsa monitoring. the various data exchanging exchange being also raise questionsnd are not necessarily wrongdoing. have to separate those and look into them. clearly the president's ability to manage the gvernment of the

united states and the trustthat erics have for the government has been verted by the kinds of revelations that have come forward about the irs. >> these privacy trade-offs are relatively modest were his words. this is not big brother. what you thi of hat? >> well, congress will take a look. the present saying that no one is reading e-mails or listening in on phone cas. if that is the case, then it will pretty much be attacked. people will y, tt is a violation of principles and we don't know exactly where that is. everything that is going on in washington, he has a responsibility to care for t safety and surity of this country and our people.

the actice of gathering information, looking for trends, finding things that might suggest soone is going to attack this country is an important part of his presidentialole. at the same ti, he has the responsibility to abide by the constitutton. and i hope he has been doing that. this is an area that will be looked into like many others. areas that we do know that there have been major problems and bad decisions being made. of course to ben bradlee, and i ink franklythat subppoena of reporter records and phone calls is deserving of real concern. a lot of tse are having data from a lot of internet coopanies like google and cebook and apple. asking horizon to hand over the phone records. it actually came after april 16. that was soon after the boston terror attacks.

uld you have advocated trying to get your hands on this type of information? >> well, i really can't respond to that. not without having all the information about what pecisely and how it coud be sed. also with the constitutional quirements. but in a modern age where people are planning attacks, ing the communications vehicles tt w have, including the internet. to look for communication that suggests attacks or taking credit for things that happened in the past. that certainly is a responsibility whichthe president and the government has to assume. you know, i am not going to just attack the president on his. and a lot people are going to be unhappy that i'm not willing to attack him on this. but i'm going o say for the safety of this country, it cos

first. the constitution has to be followed. i don't know that it was ot followed in n is case. before i did into the power of th, i want to learn more about how it was done and how it was used. >> dianne festein says it doesn't rely bother her one bit. harry reidcentcom down when the media was jumping about whether this was overreached. do you think that their response is justifiedhat wasn't a big deal? >> well, i think personal mmunications are being watched by government and is conceing. rticularly when they comon@ the heels of e revelations of theirs. some of the private information that is used forolitical purposes. there is a loss of trust in our government. there has been a breach of significant magnitude and people have a right to be very concerned. i don't thin you can dismiss

this. at the same time, you don't claim that there has been a breach of principles until you see what has been done. that is something that investigation will occur. if you will, let's not forge the prosecution ahead of the facts. let's get to the facts and see ther has been some kind of inappropriate gathering of information. >> i menoned harry red. at a time when he stepped onhe floor of the senate to say that he was very well aare it did raise the possibility that your tax return information o or a pt of it was leaked to him. what you think about? >> well, he obiously got thi return and he actually laid out also what i paid in taxes over a

decade. i'd have pai millionand millions of lls in taxes. there was nevea year where i didn't pay a lot of money in taxes. i don't know where the source of data wis. neil: we talked about this, a major donor to your campaign. no feer than three fewer audits. he lives on each anhe had to pay $85,000. >> the idea of an agency that has or most personal information they have used that information to pursue a political agenda. that should be a very frighteninthing to people on

both sides of the aisle. i know that it is. it is a negligent management that has allowed that to occr and it may be worse than negligence. we do not know who know knew about it and who directed it. but it is a violatn of the american people will not soon forg. itas to end. in my view we have to put into place a special prosecutor to understand who knew what and how atnformation was used. we also need to put in place a structure which says that in the future, these audit d these inquiries by the i and other agencies carry out various kindd of audits. these things have to be viewed as a nonpartisan and noolical basis and ensure that these institutions are not pursuing a personal agenda of one kind or another. neil: using this goes beyond? they re involved in targeting these conservative groups and individuals.

you thk it is bigger than that? >> well, if you don't have any process in place that is overseeing what agents are doing, you are opening the door for people to misuse data for their own persona and poliical vendettas or forther vendettas. th is what people acss this country are afid of. big government becoming so large andd ointrusive that o one could stop it from interfering in our lives and punishing pele without being required to go io thepublic anddeman that information on legal basis. homany people knew about this and how far up the ladder goes? we don't ow. that is why we have to have a specialprsecutor appointedo look at is to find out just who knew. >> we do know now that it was conservative efforts and those groups that were arguing on your

behalf. >> is infuriating. i have to tell you that it is not. >> i don't think there is evidence of enough wrongdoing of this stage. >> was so preoccupied wth

the conseatives are defending themselves and getting this irs off their backs? haa chilling fect to tn outvoters were pursue this. the government is not tramplinon our rights as citizens of this country.

>> many. >>ut after hurricane sandy. i know thathat is your iew. >> i can't speak for the members of my family. i ha 21 grand kids. neil: the one i was talking about maybe your wife. >> well, i take responsibility for myself. i know what happens when there has been a natural disaster. you look or help from the federal government. you want other agencies to step in and provide lp and ggrnor christie did what he thought was best f th people ofthis state. i don't blame them forhat at al he was helpful to me in my campgnin every wayossible. i consider him a good friend.

he has a great future. has been a tripth governor. he's dng a great job in new jersey. neil: so you don't agree that he got a little bit too chummy with rack obama. >> well, i can tell you that the hurricane didn't come the right time. at is nobecause of chris christie. that is because one of the vantages of incumbency is because when there is an event like that, you get to see the president in a fatherly role i showing his sympathy for people who were harmed to have been victims of a storm and obviously, it gives a little boost to the president eort and that includes how the system works in the nature of politics. i am not going to go back and try to revisit battered by the right thing for me to do is to look forrd and say how can the things i care about which helps put people back to work, getting america on track.

improving our health care stem and getting the cost down. how can i do those things from where i sit today. neil: do you think that hurrane sandy,ford whatever severity -- icluded the presidents slide ithe pols. looking at your first post debate performance, the felt that yr camign rt of sat that. what do you think? >> well, we went after that first debate as hot and heavy as could and kept promoting that as well as we thought we could. i'm sure people come up with ideas ofhings we ght have done differently and that is always the nature of monay

rning quarterbacking. when you were in the midd of the game figg hard yard by yard, you are doing your very st. i believe that my team was a superb team. i spoke with a leading democrat. i won't mention his name. this was a close race the unemployment rate dropped below 8% for the first time. just weeks before the election. the mediaelebrated that. that made a difference. you are not going to spend our@ time saying what kinds of events could haae happened differentl the president made mistakes in his campaign. no one runs a perfect campaign. the net result is that he won, i lost. you get over that, you learn from the experience. you move on.

neil: nevertheless, with all of thescandals between benghazi and the justice department and the irs and the large number of groups in all of this occurrg as the health rves department heads up and pushes for health care, if this would've come up last fall, different result? >> you know, there is no way that i can make that calculation. but i can tell you wha made a difference. and that is, again, one of the advantages of the incumbents. but for me, a lot of people are really focused on these scandals, and they are thisirs thing is troubling. the big issue on benghazi is why was there not a rescue mission. anyou might sasay hat we have succeeded. these are real issues and not

the same time, one of my biggest concerns is wh is the president's agenda area. neil: mitt romney has some very serious concerns about what is going on with china. why he says we need to stop letting china were all over it before it is too late. >> this is the time for real babone on the part of our natio come up against china and say that you have to play by the rules. and alec, f this mission i upgraded your smart phone. ♪ right. but the mosimrtant feature of all i.. the capital one purchase eraser. i can redeem the double miles i earned with my venture card to erase recent travel purchases. d with a few clicks, this mission never happened. uh, what's this button do? [ electricity zaps ] ♪ you requested backup? yes. yes i did. what's in your wallet?

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neil: the dow jones industrial today. the federal reserve encouraged to keep doing its thing, which is why mitt romney said that he is not too impressed with this whole rally. governor, what doyou think of the market's reaction and ben bernanke providing all of the fuel for this. what you think? >> well, there is no question. one of the reasons that people are putting money into the stock market as they see that the federal reserve continues to have a monetary policy. money printing. quantitative easing. money is pouring into the stock market. this will t end well.

you cannot keep on, if you wil poing more and more money as a nationand not havingo pay the pipeat some point. bonds are going to continue to be key. prices will go up. you know, it's kind of disconcerting whenn you see the peopleho have stopped making a lot of money, even though you have lots of peopl 7.5% of people that are unemployed. when you consider the other people who have dropped out of the work force. the stimulus and the monetary policy these are tough times. neil: so when you sayhatthis will not end well.

what do you mean? >> well,ou cannot keep on borrowing more than you taken forever. you cannot keep printing money and keeping interest rates near zero for ever. at some point tha has to reverse. the people that were loaning us the money say that i am a little concerned abt the risk and they want higher ierest rates. as they start going up will mean that they will see a lot of money going to pay people around the world. right now we have spent aut $250 billiona yearon interest. as interest rates retur to a normal level, that number wil go to $750 billion a year. that is more than we hae spent on defense. a lot of that will be going to places like china. we will be paying for their schools and research. they will be investing in their fure as we are paying off the sins of the pa. th is not the management than anyone in thir home wou pursue.

instead, you try to live within your means and invest in the future but you do not file and print moey. neil: you mentioned t chinese were they recklessly and repeatedly witout abandon have included everything to defense contractors. how would you and how d you think that this president should respond to . >> you know, i think that we have a mindset the very oor countries try to get on its feet. but th reality is there has to

be consequences. neil: with the idea, what you thk of that? >> there has to beonsequence. clrly trade is one othe places where you have consequence. you cannot allow people to continue to buse yourself without following international norms d lot without there being consequence. >> donald trump said and pardon my french, govrnor, screw them if they are oing to, you know, treat us lik thi

but in a decade or two, will so t only time we ve for levera to make sure that the practices that it exists between two nations that have interest, we wt toee free trade and the rule of law. we have a lot in common in tems of interest and they are taking advantage of us right now. if we donot set those rules and make sure we are abiding b themwe are never going t do it a decade orso from now when they don't need us like they did today. th is the backbone and a part of our nation to come up against china if they didn't have to play by the rules. you cann hack into ur couters or there will be consequence. the kinds of trade relations and other relations that you have.

neil: would you ever run for president again? >> now. i took my chance. i took my message to te american people and i w not successful. it is time for someone else to take their message to the people. >> well, i think what hh was saying is -- and i have said that all this all along, i didn't want to become president for all of the benefits of the ofce and the thrills of being president. looked at its an opportunity to serve.

i wanted the job because i wanted to help the people of america make sure that they and the next generations live in a country that is free and osperous. neil: would you ever want to be a treasury secretary in a future republican administration? >> i'm going back to the same point. i think that people who want a job with government get their priorities wrong. i don't think that the people -- if they feel that they n make a contribution, they somimes have to say yes to something that they want to do is. neil: your son isn't ruling out a political future for himself.

>> i have terrifisons and daughters in law. the politicsn the future. it is a tough road. we are going to have a tough road with the media. if you're not willing to deal with that, don't get into the race. you know that, understood it, i dot have hard feelings. i think it is harder on my sons and daughter in law and my wif to watch their dad than it is for me. i watch my dad and, you know, i was harder on me than it was on him when i watched him in his campaign. that is dissuades going to be.

neil: governor, it is a pleasure. thank you very much, sir. thank you, iis goodo be with you today. neil: all right, wold have, should have, could have. with all of these scandals, nothing is getting done. and that will be harmful for this country whether republin or democrat [ larry ] younow throughout history,

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neil: mitt romney to me that the president promised that unemployment wl go down. is not gong down. we he a former united states senator joining us now. andy, you were with the had an eclectic idea. did they come to this conclusion that this was distracting?

>> it was really more about policy and politic >> what happened? >> i got up on thestage and interviewed at john hickenlooper whis the gernor of colorado and the two of us got along great. they talked about countability, merit pay, tenure. things that you wod not have thought out a republican speaking. we did address issues. but i think we havma some progress. neil: you and i have chatted about this before. one of the thingi always

dmired about your career is how you did try to find a middle ground. we have always said that one side can't get all he or she wants. but that ithe mood right now. senator with the scandals developing, the enormous distractions, it is not asif washingtonan go ahead and multitask here. all scandal, allroblem nothing is going to get dne. >> idoes worry me. we have a system that is dysfunctional with very little ggtting done there's only so much attention to go around. they run the risk of sucking a the oxygen out ofthe room nd further our chance to address the things that mitt romney talked about and that is how do we create this.

>> it ds concern me that this would distract further from focusing on the business at hand neilharry reid said that we are making a big deal out of nothing. >> oka with no on is reading your e-mails, no one is listening toour phone calls unless they get a judicial order a sometime. whathey are doing is keeping a record of all of that. so let's see say that clark also someone and we are able to follow follow-up to trto identify the entire network.

so then we have to have that data so we can follow-up with them. but no one is listening or following the e-mail of t ordinary amercans. >> why did you have so many one calls to dunkin' donuts, but that was another thing. asking you somethi that the governor talked abt. without getting into who is to blame for this vario scdal and invasions. i am paraphrasing here. it gets so big hat this kind of stuff again, i m simplifying he, it is inevitable. you agree that? >> i agree that 100%. like when you run a company. core beliefs as the ceo trickle-down through the ystem. we have a government that is so big that you cannot run it directly.

e govenment should be good. president obama gave a speech at ohio state and p sta. right before all these scandals. it is that idea thatovernment is good d big and ig government is good in a ind of trickles down and empowers people in the bureaucracy to do things they really shouldn't be doing. i think the irs sandal, in my opinion, is the wors of all of them and that really epitomizes what happens when the government is out of control. >> i wonder whether that wilbe the sndal with e issue tat resonates. so many people see this thing growing as an intrusion and coming to lit almost every other day. what do you think? >> i think itis the bigst issue. mitt romney was right to identify this as well. becaeveryone has to deal with the irs. they are gettng out of the wa in doing things they shouldn't be doing, what else e they

doing? e role that they will be pling in health health care law, that has to be concerning. so this is the bggest of all of the different scandals. one other thing, if the mitt romney who appeared on your station had ben the mitt romney running for president, i thought he was incredibly gracious and he was very good. i thout he did realy well. >> you gave him every chance he one you know, i gave him every opportunity to give him the petty small person that i am, and he didn't take the bait. you gentlemen, you arean example of this environment which means you will never have a future in washington. [applause] the magdalen, thank you very much. >> ank you, neil. it is goodo see you, senator. >> so how is it possible that

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ne: apparently en pottery company said that they really didn't know that they were getting spied on. the natial security county officials under clinton and george w. bush. lee is 20 now. that is what worri me the most. if mark zuckerberg is posting that he was unaware of this and it was happening, then shouldn't at be concerning? >> it is complex in. i have no problem with the u.s. government analyzing emails and protocol, telephone calls between people in yemen and afghanistan. i'm actually supportive of that. what is a bit unusualis the extent to which the tech companies in the united states knew about this government activity. neil: if they didn't know that, if they are clueless, the

government seems to haveotten far more than these guys were aware of. >> there is an issue with. >> in other words there is technical information about how they collected this. >> internet is like a highway system and there is a possibility that the government was watching what was happenin on the highway. if the government was watching what was hppening, that possibly there was a tech company that would not have known about that. neil: would say ttat unbeknownst to them at some point the government went ahead and got the information they wanteand came back and aske for it. if tt were the ase. >> is happening outside the united states and directing citizens, i don't think that any non-us nationals have any expectations. >> these are the vehicles in the

uned states for which it ws done. >> we don't kn enough to say that. >> but if it were? >> there is an issue about the vernment accessing the property and the servs of u.s. technology companies in the united states. i personally like to know more about that. but this is a perfect understanding. >> that is going on abroad and the government is doing that but they are still doing it inthis way and the entities don know anything about it, they have gone ahead and just raided the house. it depends on how this is being done.

>> i happy they are helping out. >> when they are hap about it, eytake an inch in the mile at the same time. >> you know, we all have to be talking about privacy and protecting our national curity. >> that is the intention of these -security. >> that is the intention f these ograms are it that i true. when we come back, is part of is just a response to the govement. we will have that coming

neil: this may be nothing more than the government getting out of control and a few a eggs would he think of that, let's? >> she touched on the central sphere. the irs people who worked under reagan. many will say thaa this isn't a problem. watch out what they are doing it to you. cause that is so with easy. we are in a whol new world and that is what i think struck a

chord. neil: in case of tis, you are a well-known and espected liberal >> maybe there is something to it. it is too big for even you. >> no doubte would have had we have those resultsith president obama. >> aren't you going to want to do this as well to track this down? >> absolutely he would. >> i jus find it jane marks -- d i do think liberals were

complaining today about reblicans going overeach. >> obviously this is something that has bee there. the irs has a hundred thsand employees. there are a lot of od employees. >> it is t quality of the town and people managing this.

>> here it is, mr. axelrod. obama said the same thing. the government is too big. that is the same complaints that the tea party has been making. >> when i see the smissal this, i have to say wait a second, when you talk to people who ran the irs and they say e same team they have seen it happen, it is so still busy to run a big government and feel powerful at tha. >> i was just going to say the people running the irs, per se. it is quality people. government is going to contie to grow. the economyrows, the population rows.

>> and is o of the things that i have. if we know part of this gowing problem is the birth, then wouldn't you think twice about signing this to the irs when it comes to health care? >> potentially. >> you know, i think that peop are bleeding their fear into their fear of govrnment spying fromhe corporate spying. >> exaly. for me, personally, am more concerned wi consumer privacy wi the iiris. >> google, gmailyou do a search on any medical disease. when you apply for health insurance than they assume that

you ve this with a prr-existing condition. >> the company can't find you for this. they can't baically,ou know, some people after you who are giving you a hard time. i hear what you are aying. neil: should the government be worried abouliz macdonald? 's. [laughter] we have alrey seen cases where the irs takes over healt care. >> i am not afraid. i wanttyou to know that i do think that there are quality people.

>> the irs doesn't want to bea regulatat night and a good

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