have. we'll see you back here right here on monday. have a great weekend. [ applause ] >> greta: tonight it doesn't get any hotter than this. we're talking about the red hot rumors that former secretary of state condoleeza rice could be the g.o.p. candidate for vice president. he sheet new front runner despite telling us that she doesn't want the job. is she a real possibility? former candidate fred thompson joins us. it's quite a choice. is it a rumor? >> i am always giddy on the

rumor side when it come is to washington. >> greta: it's not unrealistic she may be on the roster. >> no question about it. she is an outstanding person, everybody knows that. one person's opinion doesn't make any sense. from romney's side, doesn't make any sense from her side. don't o spend the next few months talking about the bush administration policies with regard to iron or north korea or anything else that takes the focus off of him. i don't think she wants to get down in the mud in the political arena. she said time and time again, she policy person. this campaign is getting dirtier by the minute. i think that she doesn't want to be used to attack barack obama which is vice president's role would be.

she would be attacked from the black leadership who determines what is popular for black politicians to do and not do, and she knows all this. i don't think she wants to do or spend her life that way. i'm just geflg. >> greta: governor romney has no foreign politics experience. whether you think it's good or bad, she has foreign policy experience. i realize she was in the bush administration which is controversial but the bush administration also had many people who were strong advocates for what was done. she is a woman. energy i'd for a woman on the ticket. she is african-american, maybe get votes from president obama. people would only be talking about the bush administration. i don't think governor romney wants to talk about romney care. he wants everybody to talk about condoleezza rice and iraq than probably about romney care?

>> what is obama want to talk about. you are seeing right now. president of the united states and all the problems going on playing the smallest small ball he can possibly play as when mitt romney left a job years ago and went to do something else. whether or not some company outsourced some jobs. that is all they would be talking about. if you criticize obama with regard to his policies in iran they are getting nuclear weaponry, how much progress did you make condi? it's not a question what romney wants to talk about it. it's a question what obama would be talking about and the comeback. romney is not going to lose this election because of any lack of foreign policy experience. >> greta: who would be, in the universe of choices, would be smart political choice? >> i don't know.

there are several el. i think with all the attributes that condoleezza rice has and not to mention the fact she is pro-choice. i think it's based on federalism. >> greta: not just moderate? >> concerned about the federal government dictating in that area. still, with all of the attributes she has i think she understands basically what her role would be and what she would be required to do and the swings would come her way for a job that might be less are than one she had. >> greta: let's talk about what you wrote about the electoral college. what you wrote, governor romney to win the overall vote, but

president obama would win the electoral college which assault prize. >> i'm concerned about that. it's a nightmare scenario of the week. i've got fred thompson's america where i spout off from these things from time to time. i'm not a political scientist but i take away this. obama is going to have a hard time getting the popular vote, gallup tells us an incumbent president's approval rating in march of the year of the election is pretty much what he winds up with. if he is under 50% he is in trouble. he is at 46% in march, he is at 47 but he is going to lose the popular vote. but you realize that is not what counts. there are eight to ten states where the whole game is played. all the rest of the states are

strongly blue or strong red states. all the money and all the power of the presidency, all of the deals can be cut in certain cities and certain places and a handful of states that i think gives the incumbent president the advantage. it fits with his game plan. she spending with those swing states an unbelievable amount of money attacking mitt romney. he is trying to kill him in the cradle. >> greta: i did a little research. virginia, indiana, colorado, iowa, missouri, new hampshire, pennsylvania and wisconsin are all swing states and florida. florida is not on my list. i'll tell you why under the national unemployment rate. these are all swing states with

unemployment rates below the national level. everybody is saying the economy is so important. i wonder if these states by the virtue they seem to be better economic position than those other states? >> he is targeting those states, spending like i say, a ton of money trying to undermine romney's credibility before he get his legs under him. it might not matter. his strategy is to divide the country and undermine and attack romney. >> greta: is it dirty or fair politics? >> i'm not sake it's dirty but it's real sting but he has a policy for every group he is going after. the blacks, the hispanics, the single women, students public servant employees and with regard to all those groups there is a policy conversion or recent

initiative. he knows what is going on. if you are red state you better double down and for romney and swing state you better workday and night. >> greta: is there something that governor romney could reverse that trend? >> i think that maybe he's got to do something bolder or more dramatic than what he is doing like put something meat on the bones he has been laying out there. explain why we are the most successful nation in the world. explaining why free enterprise is a good thing and brought more prosperity even to the poor than any nation not only in the world but in the history of the world. why obama is appealing to people that divide this nation, the great uniter is spending time

trying to divide the pie instead of making the pie bigger. why his policies are a farce. he is concentrating on things like soaking the rich and buffett rule and things of that nature to soak the rich which would pay for four days of government spending. it's the appeal to lowest common denominator, the darling of the interest electric tuilsz he is appealing to ignorance, appealing to passion. this whole outsourcing business, i know it's difficult to run a campaign and talk about something like that. it's clearly something whose time has come. most companies have to do it. their investigators demand it. consumers demand it. biggest outsourcing, look at the council of economic advisors for the biggest outsourcing.

he has to come out on that. he has to do the general electionsome primary opponents that worked. >> greta: nice to see you. and let the smearing begin. we don't know governor's choice yet. but the nasty attacks have started and super pacs, trashes people who will not be governor romney's vice presidential pick. but the super pac has a brand-new strategy, trash a lot of people, hopefully one of them will be his choice. abc news was the first to report on the super pack attack and abc news washington editor rick cline joins us. what is this super pac this? >> super pac is put together basically for research purchases. they are compiling information and tracking these candidates

for months and months going back a year in some cases. they have tried to compile the ultimate video archive on each of the candidates that they think mitt romney's list right now. >> greta: but according to abc news, they have a website so it's not just a research vehicle for them. its research vehicle for everybody to look at. this is not sort of like to spread the news for research but to spread the smear? >> hundred percent. they wanted to define mitt romney's choice in first five seconds, treasure trove of documents and be out of box immediately with the story. >> greta: i don't like this. i don't think it's fair to attack the candidates, but here you got people they put up on the website that may not be under any consideration at all. they are going to work on a and

they wake up and find this whole bunch of people are digging up dirt and put things up. but basically to smear them and nothing to put themselves in the game. >> if this isn't going behind the scene, this is what all sides do. but putting it out before the public. most of sit publicly available information twisted in neat ways to try to make a story stick. >> once abc was smart enough to find it first. now, we all know, but anyway, i think it's below the belt. condoleezza rice, your thoughts? >> i think this is distraction. i don't think there is realistic chance she will be picked. i think the abortion issue is the one that mitt romney has said you have to be pro-life if you are going my running mate. there is a lot of daylight, she is mildly pro-choice.

>> greta: what does that mean? >> i don't know. >> she is not fully comfortable with it but shouldn't be a role for federal government. that is non-starter for a large swath of the conservative base. its trial balloon but a distraction technique, look at this thing that happening over here so you are not paying attention the bain story they have been hammered on. >> greta: and it's so interesting the way washington works, last night after we reported the drudge report reported it. i had an e-mail that seemingly in the know, this is serious being considered. she is seriously being considered. this sort of behind the scenes is really unglued all of us with little pieces of information. we don't know what to believe. >> little tidbits come out. usually if they come out it's

meant to come out. campaign wants it to come out. because they want to talk to a certain segment and condi is very popular among independents. but i think mostly though this is just an attempt to say, let's talk about this other thing right now. mitt romney has been using it to a fairly considerable way to try to talk to different people and get some more. >> greta: china story, the olympic uniforms made in china? >> it is remarkable. whether nancy pelosi or harry reid setting them on fire. >> greta: finally. >> the u.s. picked committee should be going with american vendors. even athletes are not comfortable when they walk on stage in london. >> greta: they should get levis

or regular jeans but i found out they are made in mexico. if you go or went to the resale stories where they made blue jeans pre-1960, we could get a bunch of blue jeans made in america. >> one way to do it. but there is a lot of pressure by 2014. >> greta: i think it's possible. if we can gear up to do a lot of things. if this is really appalling the american people i think we could fix it. it's not the most impossible task. >> manufacturers, really ready to fill the orders. >> but bipartisan outrage but a lot of the folks what were you thinking. >> greta: olympic athletes not so pretty uniforms because we had to do it the last two minutes, it would probably draw a lot of attention to the olympics. i'm assuming we could get them.

but what about the rally of lauren logo. >> let's put u.s.a. on them even if you have to write it on with crayon. >> greta: if you think the vp race is getting ugly wait until you hear the latest. who is the nasty attacks help or hurt? also, imagine an unemployment rate of 5.6%. sounds pretty good, right? it's a reality in virginia. what are they doing the rest of the country is not? virginia's governor bob mcdonald goes on the record and who could forget this tom delay and fancy red pants. who is it? we're going to show you building pass, corporate card, verizon 4g lte phone. the global ready one ? yeah, but you won't need... ♪ hajimemashite. hajimemashite. hajimemashite.

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>>. >> greta: it's flying from both sides. presidential campaign trail taking a nasty turn just yesterday. an obama campaign official said governor mitt romney may have committed a felony. romney campaign demanded an apology and today they released the latest eke ad.

>> you don't have any idea, then you use scare tactics to scare voters. if you don't have a record to run on, then you take your opponent painted your opponent as someone should run from. you make a big thing about small things. >> i'm mitt romney and i approve this message. >> greta: so is this good strategy? rnc chair joins us. good evening, sir. so it seems like it's getting rougher since four years ago, but get the other guy. we're not hearing lot what the candidates are going to do for us. your thoughts? >> first of all, what we're doing here is just using barack obama's words four years ago when he promised the american

people he was going to be a president of big ideas and big things. it turns out that he is the same player of small ball and distraction and, yeah, lying, as well. so you can't just allow your opponent to lie over and over again without pointing it out to the american people, that number one, there is not a shred of evidence and called out by every newspaper in america that lying and sit there and allow all these ads get thrown on the tv without showing the american people, look this is not the president that promised to live a different mission four years ago. it turns out his everything he said he wasn't on steroids. i think that is an important thing to point out. >> greta: let me turn to the campaign itself. the swing states, obviously, i was interested because those are the states a question of how

they are going to vote. in looking at so many of them, virginia, indiana, ohio, colorado, iowa, missouri, new hampshire, pennsylvania, wisconsin all very important states, each has an unemployment rate under the national average. how do you run and convince voters to vote republican if 42 are doing the best of the rest of the nation? >> well, i think almost every one of those cases, except maybe one, they are all republican governors. nice thing you are going to have somebody like scott walker or rick snyder or john case itch in ohio standing next to romney, look if i had a partner in the white house, things would be so much better. put that aside for a second. the reality is that people in wisconsin and michigan and ohio don't feel better off today than

they were three or four years ago. while the unemployment may be a tick lower in some of those states, it doesn't make the voters say, hang on a second, servicing great because we're at 7.9 and the rest of the country is 8.2. the people will look at this and say, this president didn't make things better in regard to jobs. didn't make things better in healthcare and all the other promises he made. ultimately this election has to be about whether or not barack obama fulfilled the promises he made to the american people. that is what will be front and center. all this other distraction and all these other things that obama is trying to put forward will all get washed away. in the end, they'll be one or two questions on the ballot in people's minds and revolve around two things, one, whether barack obama fulfilled the mission and two, whether mitt romney is good alternative to this president. those are the only two things

that matter. >> greta: i should tell i to confirm the fact many of the states are republican, most of those states have republican governors. couple of them democrat. and the news of the vice presidential nominee? >> i figured you were going to bring it up. >> greta: does timing make any difference to you or the party? >> i think on the timing front. we differ completely -- we defer to governor romney. they have to do all the vetting and be comfortable. if there is anything i would tell you, it may seem obvious. i know where mitt romney is on this issue. the number one issue is whether or not the person that gets picked can be president on day one. that really is where they are headed at this issue. however, long it takes will be

fine. there are benefits going early. obviously they have joe biden doing fund-raisers across america. you add a vice presidential pick to keep up with team obama, that helps. being at two different places in two different states is important. there are benefits, but at the same time i think you have to be deliberative. that is exactly what they are doing in boston. >> greta: do you think you will know before we in the media will? >> i would imagine, i might know a little bit ahead of time. it really is something that mitt romney is dealing with almost exclusively. all these other rumors and articles is based on nothing. >> greta: it's exciting. we're all giddy about it.

ryan, nice to see you. >> it's very important. >> greta: it's important. i mean how we act is silly. thank you. >> up next, virginia governor bob mcdonald, his state has unemployment rate of 5.6%. what is virginia's secret? ♪ [ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an exceptionally engineered mercedes-benz for an exceptional price. but hurry, this offer ends july 31st.

>>. >> greta: 5.6%, that is president obama's favorite number. that is the unemployment rate in the state of virginia. will president obama will get virginia's success? bob mcdonald joins us. good evening, governor. >> nice to be on, thanks. >> greta: with the unemployment rate of 5.6% the envy of many other states, how do we know whether or not the president should get credit with his stimulus bill or whether you should get credit for it or legislature or something else? >> success has a thousand fla failures. we're glad to be down to 5.6% since i became governor down from 7.4. it was a bipartisan accomplishment.

we worked together. but i would say if the president stimulus policies and all the other things coming out of washington were working would you see it better nationally. we are over 8.1% for 41 consecutive months. that is not acceptable for the american people. so 5.6% is good, if we had a president mitt romney i think we would be doing a lot better in virginia because the president's policies on debt, regulation, on the energy industry have been harmful to the virginia economy. so we're fighting upstream against washington and these policies. >> greta: how does governor romney sell it to voters in november. if you live in virginia and you are doing so much better than o unemployment than the rest of the country and you look at those numbers. you think, wow, president obama's program works here. it was as high as 7% but i will

note when president obama took office it was at 5.89% and now two ticks down but well below the national average? >> in his first year it went from 35.8 up to 7.4 which i inherited. cnbc came out business ratings. 12 out of 15 states with the most friendly approach to business had republican governors. there is something that republican governors are doing in their states that is making a difference in terms of regulatory and right to work laws and great programs for their university. most importantly very positive can do approach to business. this president is demonizing wall street and undermining entrepreneurship and the epa. these things have been harmful for business. i think governor romney would say, there is still 250,000

people without work in virginia. if you elect me we'll do what republican governors will do and knock that unemployment rate down more because we understand you have to have more support for the entrepreneur if you are going to have access to the american dream. >> greta: you used the term demonize and your thoughts whether it's fair game politically for president obama to explore governor romney's bain, his work at bain capital? >> sure. we ought to talk everybody's record especially the president's. governor romney did a great job as governor of massachusetts cutting debts and deficits and going from 50th to 30 in this job creation. at bain capital, in the american system of free enterprise you have the ability to succeed or fail. when you are a venture capitalist you do a little bit of both.

during his time of chairman of bain, he had 120,000 new jobs created. what president obama is doing, he is using information after governor romney left as chairman of bain and went to romney olympics. things that happened in 2000 and 2001, you have to pull those irresponsible ads. places that president obama, green run in virginia and i lived those places for 20 years. you know what they are interested they are not interested in bain capital. they are interested in taxes and jobs and getting the greatest county country out of debt. this president has failed on that. >> greta: should governor romney release those tax returns and does his reluctance does it sort of cast a mystery so the vacuum gets filled with all kinds of suspicion?

>> he has released more returns she obligated to do by law. what we saw on those returns --. >> greta: he has done nothing unlawful with bain. nothing unlawful but the politics isn't about what is lawful and what is not. so it's perception, when politicians or con city went make demands for documents and someone doesn't, maybe unfair suspicion, people get suspicious. should he release them? >> no. that is up to mitt romney what he wants to do. if he has complied with the law. i would say the tax returns, it's their own tax returns. president obama raising taxes $500 million through obamacare plan and now to raise taxes on everybody that makes $250,000 which is every small business in america which is about million small businesses, that is tax returns that people in virginia

want to hear about. president obama said if you don't have a good record to run on, you basically play small ball and try to scare people. all that hope and change rhetoric from 2008, now it's about fear and division. that is not the kind of leadership we need in america. if mitt romney wants to release it that is fine, the issues is getting out of this $16 trillion crushing debt that president obama has racked up $5 trillion dealt and getting our country back to work. 8.1% unemployment unacceptable. mitt romney can do a lot better. >> greta: i know i'm part of the silly game who is the next vice presidential candidate. we are pounding all the possible people but i can't help myself. can you give me any tips? >> i'm talking, there is one list that matters. i'm chairman of governors

republican association i'm trying to elect 12 republican governors and help win virginia for mitt romney. because if the american story to be alive we need a new president. that is somebody up to somebody else. >> greta: i couldn't resist asking. obviously, it's contagious. governor, thank you. >> coming up, its everybody's big complaint. china are they taking to the united states to the cleaners. should we be routing for china? and justin beiber, female celebrity knocked him off the top spot. what does she do better than the beeb? [ male announcer ] you get in the zone long before the race.

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>> live from america's news headquarters, i'm marianne rafferty. wall street ending a six-day losing streak friday after some of the nation's biggest banks posted strong earnings. j.p. morgan reporting a $5 million profit, despite that disastrous credit bets cost them $5.8 billion, triple the original estimate. and the ceo says there may be more losses to come. the federal aviation administration has proposed fining boeing $thirty13.5 millir failing to meet a deadline to provide airlines with instructions on how to prevent fuel tank explosions. such an explosion destroyed twa flight 800 off the coast of long island, 16 years ago. all 239 people on board were killed. it is the second largest fine ever proposed by the faa. now back to "on the record."

>> greta: you hear it all the time. china's is dominating the u.s. in the global economy but wait? is that really what we should be upset about. should we be worried that china isn't strong enough? what do we mean by. that just released data is that it's expanding the slowest rate in three years. they may not be able to prop up the world's economy. these stories from the. >> okay, how serious is this. we have been pounding china all the time. we don't like the business about uniforms. tell me should we be worried about china? >> china is the big rival. their growth is slowing. it slowed for six consecutive quarters now. this is two reasons behind it. first of all, after the u.s. went into recession, china started to hurt.

th chinese government poured a ton of money into a big stimulus. that stimulus has died out. it's kind of like our stimulus here in the sthuasmt ended and now the u.s. economy is struggling. the other thing we have going on in china is pure and simple growing pains. a lot of businesses moved to china, a lot of people moved over there for the cheap labor, now as the economy has improved the labor is not so cheap anymore. a lot of companies are moving their factories from china or setting up factories in places like in the u.s. because the labor differential, the price for labor there in china versus the west is not the gap as it was in the past. >> greta: starting else about the stimulus parted, when they started to have growth problems, china had the stimulus and it stopped. is that an indeiry of the process of the stimulus. it's not going to be stopped but

it's going to actually rev up and keep going. is that a sign that the stimulus is not an effective means to rev up the economy? >> there is a lot of concerns that the money was misspent. it was not effectively spent. it was supposed to spur investment. you are right. that would be lasting and a lot of it hasn't been. one thing you have to keep in mind, yes, growth is swelling but growth is expected to be about 7.6%. that would be an amazing story for the u.s. so it's still growing a lot but it's slower than it was. >> greta: governor romney has said that he was concerned about the devaluation of the chinese currency. so products are cheaper and have they stopped devaluating their currency or was it happening at all? >> there is very slow thing.

the treasury department has been going back and forth, there the is a big kernz difference that people are concerned about. that is not responsible for the growth figures. these growth figures have far more to deal with the fact that the global economy is struggling. if you think about it, who does china sell all the stuff to? to the united states and europe. u.s. economy is not buying as much made in china or made in anywhere as they used to. europe has a problems with their debt crisis. that is why china's growth is slowing. >> greta: and thinking about those uniforms, those olympic uniforms. right now, it's hard to feel soar for china's economy to be slowing down since we're still buying from them. drunken sailors. i take that back.

louise, thank you. >> straight ahead, tom delay started the trend with his fancy red pants, now another lawmaker trades his suit and tie for fan at this si footwork is caught on camera. also, move over surf dude. now there are surf goats. you will see the surf goats hit the waves at a record setting wedding cost a fortune, wait until you see who the bride and groom are. you do not want to miss this one. chances are, you're not made of money, so don't overpay for motorcycle insurance.

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you've seen the best of rest. on s another politician headed for the "dancing with the stars". he hit the dance floor in a local version of the competition [ cheers and applause ] ♪ ♪ >> greta: definitely had fun and he won the entire contest, it

was for a good cause. part of a national fund-raiser for national kidney foundation. >> swift edging out justin beiber on a new list. swift is the highest earning celebrity under 30 taking in $57 million and beiber the only male celebrity bringing in just $55 million. and rounding out the top five, they are leana, lady gaga and katie perry. and surf is up in southern california, check out who or what is riding the waves. those are goats. they are stung beachgoers with their surfing skills. owner says he loves to surf the goats would, too. they ride the waves together. and from surfing goats to a swimming most. the hot weather is taking a

toll. check out this most in colorado. he is taking a dip in a pond. but one question, where is rocky? and most expensive wedding in history. the bride and groom of two lucky dogs. it was affair at a posh hotel. wore a $6,000 custom wedding dress and 17 meese orchestra. price tag for it was $15,000. everything was donated and fund-raiser for humane society. wedding was forbe yiatd by tramp the insult comic dog that got famous the on the conan o'ryan show. one more round before we turn out the lights. maybe a new front runner for vice president and we're not

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>> greta: 11:00 is almost here, flash studio lights it's time for last call. it's the big national mystery. everyone getting in on the so called beach steaks. >> mitt romney announced he will announce his running mate soon. experts say either rob portman or senator david griffin. how many like rob portman? how many like senator griffin? that shows how little we care about our vice president. there is no senator griffin. i just made that up! some people applauded! you get the government you deserve! >> greta: that is your last call. thank you for being with us tonight. make sure you go to greta wire.com and let us know what you thought about tonight's show. put on your dancing shoes and look at