to this, that governor palin is being attacked worse? greta: it is not a good record, but we set it. their money or lack thereof, and the word now is that it is trillions. alexis glick is here about that new word, "trillion," and senator lindsey graham is on the record tonight about something he said about judge sotomayor. and, yes, sarah palin has resigned as governor of alaska, but who would she possibly be on the campaign trail with proof there is another embarrassing incident -- but who will she possibly be on the campaign

trail with proo? and there is another in their single incident with another person. plus, the american debt is now over $1 trillion. alexis glick joins us. alexis, $1 trillion. that is so many zeros that it seems like a very big number. what does it mean to us? >> it means that every single tax that you could imagine you will see a high in. i hate to tell you -- you will see a hike in. some projects it could hit $2 trillion in this fiscal year alone. you are going to see taxes go up across the board, tobacco, soda, and the obama administration said they would not raise taxes on the middle- class, over 40 states are

raising taxes. they will raise taxes whether we like it or not, and if you do health care and climate change as well, you will see it across the board. greta: alexis, this did not sneak up, so why is everyone so scandalized? we saw this coming. >> this is not a shocker. this is not a big surprise, but the reality is when you look at the numbers, and you break them down, that is when you see some of the shock and awe. corporate taxes are down, and personal income taxes are down 22%, and these programs, keep in mind, things like unemployment benefits, millions of people are applying for these with claims. that is $80 billion, and interest payments alone?

$150 billion. greta, you add it all up, and what it says is that this economy is in dire straits. we have to do something to play this down, and this could get very sticky, particularly with the chinese. greta: and that will mean that the chinese will not want to buy our dead because they know we cannot pay off, but let me ask you this. why does the dow go up over 100 points with this news today? >> great point. we saw a lot of calls ahead of goldman sachs, which is due to report results tomorrow. they are due to report one of the best quarters of -- they are considered the gold standard. they paid back their tarp funds, and they have gotten access to cheap money that is backed by the u.s. government, and tomorrow is the beginning of the

earnings front, and there is a little bit of euphoria leading into it. we will see intel, google, and some huge pieces of economic data come out this week. i would not get too optimistic yet. tomorrow, we will see the health of the retail sales numbers and whether or not they are holding up well in this economy, but right now, things are somewhat stable, somewhat. greta: all right, somewhat, but i got tipped off about this discussion about another big bailout. who is getting this bailout? >> the largest lender to small businesses -- the small business administration which funds so many small businesses out there, they had been the number one lender for years. they are on the cusp of bankruptcy. they are working out a deal with cit which could be crucial for

millions of small-business owners across the country, and guess what? the tarp repayments could be headed to small business owners very, very said. details not worked out yet. one other thing, it greta. the treasury announces korean won other thing, greta -- one other thing, greta. the treasury announces something dealing with secretary clinton and the chinese. great seeing you. greta: center lindsey graham joins us in washington. that last one, meeting with the chinese -- senator lindsey graham joins us. they should buy more of our debt, unless we raise the interest rates through the sky -- >> that was a very good point. we sell treasury notes, and they are bought by the chinese and

other countries, and they will eventually stop buying our treasury notes. greta: and then we are cooked. >> we are all going to be california. you want to know where america is going to go, you look at california. some people believe that democracies failed because a week, the people, never say no to ourselves -- some people believe that democracies failed because -- fail because we, the people, never say no to ourselves. i never thought i would see our government like this. greta: i am thinking to myself, when he sees these numbers, is he free to? if he has got a solution, i would like to hear it -- is he

freaked? >> a health care system with a government that as $1 trillion more in debt. greta: forget health care. we still have $1 trillion in deficit. we have corporate income down, and we are doing these bailouts, and the economy is sluggish at best. >> generating job creation by spending money. i believe the way you create jobs is to empower people to hire people in the private sector, and this is the root of all evil, the stimulus package. what we talked about on your show has come back to haunt this country. it has created a deep hole, and it has not created jobs. a cap and tax system that would cost the average american $800 additional in additional energy costs and a bankrupt manufacturing. what he is doing is breathtaking, quite frankly.

greta: do you think he is convinced he is on the right track? >> absolutely. greta: so you are not thinking that he is saying, "oh, i should not have done the"? >> ---- should not have done o that"? the insurance companies have been up to their eyeballs. the private sector. i am not saying that the public sector is the answer,qñ but the private sector has not actually -- you have the insurance companies telling peoplelp about health care. there is a problem with that. even before we get to the question of health care, we have such a huge financial problem. that is august, or that is july.

right now, we have a deficit of $1 trillion. >> we are spending $450 billion on interest payments for the debt. we are spending almost the defense budget. this is historic. nobody has ever seen this in american history, and it will have a bad ending if we do not change it. burqa how do you reverse it? >> here is a wild idea -- greta: how do you reverse it? çó>> here is a wild idea. do not spend more money than you make. greta: a lot of people who have no income have to spend more. >> people at home are paying their bills. we are not. weñi are exploding the deficit. this will stop people from creating jobs. we have to control spending and also have problems that will create jobs. we are not jump starting the economy. we are growing the government.

greta: we are back in two minutes. up next, senator lindsey graham goes on the record about judge sotomayor. he said something about her that is making headlines. and sarah palin, when you hear who she may be stumping for, your job may hit the floor -- your jaw may hit the floor. stick around for all of that. i would.

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>> unless you have a complete meltdown, you are going to be confirmed. i do not think you will, but, you know, the drama being

created here is interesting. i will not vote for, and a senator should vote for, anyone who believes it is acceptable for a judge to allow their personal background, gender, prejudices, or sympathy to sway their decision in favor of or against parties. >> i do not believe that supreme court justices are merely umpires calling balls and strikes, but, rather, i believe that they made the decisions of individuals and bring to the court to their own experiences and philosophies. >> from what she believes, she appears her role is not constrained to objectively do this based on the weight of the law but who, in your opinion, should win. the factors influencing decisions include her gender

and other things that she says get heard juices going juices goingher -- other things that she says get her juices going. >> we need justices whose experience comes from life. some of your statements suggest you will invent rights that do not exist in the constitution. >> i believe in judicial restraint. >> in the past month, many have asked me about my judicial philosophy. it is simple. fidelity to the law. the task of the judge is not to make law. is to apply the law. in each case that i have heard, -- it is to apply the law.

>> when it comes to your speeches, that is the most troubling thing to me, because that gives us an indication that when you're able to get outside the court room without a rope and into how you think -- outside the courtroom without a robue -- if i said anything even remotely like that, my career would be over, and it just bothers me that they say that their experience makes them better than somebody else. i do not think it makes you better than anyone else. greta: you just heard senator lindsey graham say that he believes judge sotomayor will be confirmed. >> when you look at your opinions, she is left of center but within the mainstream. the time on the bench does not bother me as much as her speeches, and here is what she said.

the richness of our experience with more likely than not helper to make a better decision than a white male -- the richness of herxd experience. people would be all over me and my career would be over if i said that -- more than likely not help her to make a better decision than a white male. to say that my background makes me wiser than another person is inappropriate. greta: anything in her decisions? >> in the court of appeals, she was mainstream, something i would expect of obama in many ways, but the speeches are troubling in a sense, but when she gets on the supreme court, you know this better than i do,d you sit there, in you have a chance to make the law, literally, legal policy. you have a chance to change presidents, and i hope she does not take what i think is sort of

a chip of -- you have a chance to change presidecident,xd and e she does not take what i think is a sort of chip on her shoulder theire. quite frankly, i want to vote for her, and she is his nominee, but i will not vote for her if i do not think she is there. greta: president obama won the election -- if i do not think she is a fair -- is fair. judge roberts was qualified to sit on the highest court, but it was said that the critical ingredient is what is in the judge's heart. >> he has set a standard that no

one can follow. if you do not allow a low- income woman a federally funded abortion, you are making a slave out of her. that to me is a radical statement. i do not talk about her heart when it comes to the unborn. he wanted to vote no for alito and roberts because he was running for president. quite frankly, i think this is dangerous, and if i followed his rationale, there is no reason i would vote for her or anybody else he picked. greta: a cliffhanger. we sat and listened . >> yes, i would not wish that on the people at gtmo to have to sit there and listen to 19 senators. greta: thank you, senator.

up next, the mystery deepens around the resignation of senator palin. she may be hitting the campaign trail, and you have no idea who she may be stumping for. and the teleprompter. you know how some people call xdhim "no dramae1 obama"? we are going to show you what happened. 4lwçñcçñwñ

greta: well, the mystery deepens around sarah palin's bombshell decision to resign as governor of alaska. she will be campaigning, but for politicians you might not expect. a writer joins us. who is she going to stop for -- stump for? >> she laid out this program. i will campaign for any conservative, who is a democrat, republican, or independent, who stands for limited government, spending restraint, energy independence, and a strong

national defense, so -- greta: democrats would say they are for energy independence. >> governor palin has to say energy independence because she is from -- greta: i got it, alaska. but she did not throw out any names? >> it is not wise to. you cannot say that if you have not told me you want me to campaign for you. greta: she is going to write this book. she is going to hit the trail campaigning. i think governor perry of texas. >> there are candidates, those who are eager to have her, and there are other republicans to whom she would be poison, and then there are states and districtst( where they probablyo not want sarah palin.

greta: is there any democrat that would wonder? not true she would campaign for, but what democrat? -- that would want her? not sure who she would campaign for, but what democrat? >> sr she is concerned, the partisanship -- as far as she is concerned, the partisanship she was tired of. çópro-family is tired of it. her son volunteered to bomb -- her whole family is tired of it. qher son volunteered. her husband is registered as unaffiliated. greta: she is going to be an independent thinker? she is going to decide yourself.

she is not necessarily going to go a particular way --ñi she is going to decide herself. >> again, i do not want to speak for her, but i think i know her fairly well, and i think that is where she is. greta: when you saw her, did she seem confident? >> yes, the way i read it, she was a lot better than she has stuck in a long time. greta: liberated? -- than she has felt in a long time. >> that is a good word to use. the toll of this constant rise of ethics -- the constant

ethics issues. greta: that may be a reason why women would not like her, that she is -- >> yes, she is a good woman. greta: anyway. indeed. ralph, thank you very much. >> a pleasure. greta: up next, governor palin's almost son in a l-in-law. and there is breaking news about the health of dear leader kim jong il. who is in control tonight? by joining us for memory walk. [ man ] you invite three people.

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--www.ncicap.org-- greta: levi johnston is the father of gov. sarah palin is grandson's, and he almost became her son-in-law, but now, you can add one more thing toxd his rese -- sarah palin's grandson, and he almost became her son-in-law. >> how did she change? >> she was outgoing, and there was a spark in her eyes about being governor. >> 7/10 republicans would likely vote for her, as was said in a poll last week, if she ran for president. would you vote for her? >> no. i think if you ask me that would have. i do not think she has been the governor she should have for alaska.

she means a lot to me. i would do just about anything for her, but i would not vote for her if she ran for president. greta: center rick santorum joins us. -- senator rick santorum joins us. >> they really must be afraid of this woman. to trot out this woman to beat up on sarah palin as if this is a legitimate criticism, pathetic. ñigreta: an unhappy relative. >> a former boyfriend. come on. leave this woman alone. they are helping her. they are keeping her in the news. the more they attack her, the more the base loves her, the more money she will be able to raise, the more she will be able to get attractive gigs all over

the country, and this is a good thing for her. greta: you know, it is sort of stunning. a well-known writer for "the washington post" came up with something, being supportive of david letterman, saying that even david letterman apologized and that it was only one person left holding onto it. >> and then peggy. i loved peggy -- love peggy. maybe in new york and washington, it is sort of chic to beat up on sarah palin, and it is popular on broadsides of the aisle to be little her -- on both sides of the aisle to be little her -- to belittle her.

greta: going after her record as a politician or whatever her platform is, but is is sort of playing to the in crowd? it is weird -- is it sort of playing to the in crowd? hey, nobody is talking about policy. they are talking about her kids. >> she did not ask for this. she did not step out and say, "i want to be vice president of the united states." "i want to be president." john mccain ask terp. -- john mccain asked her. so she was dressed in there and had, what, two days to get ready for a speech -- so she was thrust in there?

greta: quitting the office, resigned in the office -- resigning the office, we have had lots of men resigned. but we told her to a higher standard. -- we have had lots of men resign. but we hold her to a higher standard. >> i think that was the wrong decision politically. i am not sure she cares about her political future. i think she is someone who does things sort of from the hip, and she just felt like "i have had it. i do not want to do this anymore. i am not being effective the governor or taking good care of my children or family."

drag and beat up by the media. it is not a pleasant thing to go home and have to face your family and have to read a nasty things about them in the paper -- dragged and beat up by the media. it is not a pleasant thing to go home and after fischer family and have to read nasty things about them in the paper -- to go home and face your family. greta: she could surprise everybody. >> well, she certainly has surprised people throughout her political career, and i would not count her out. brit: senator, thank you, sir. up next -- greta: senator, thank you, sir. up next, breaking news out of north korea, and the question is who is running north korea tonight?

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makes everything pop. the choice is yours. one hundred these, or one hundred pringles. same cost, but a lot more fun. everything pops with the new pringles super stack can. greta: there is much more "on the record" ahead, but first, we go to our new york newsroom with ainsley earhardt. >> in florida, a short time ago, police announced another arrest in the murder of a couple that had 16 children this is surveillance video -- had 16 children. this is surveillance video. police said robbery was the

motive. 12 of the children were adopted. another launch delay for the space shuttle endeavor. nasa's next attempt would be on wednesday. -- the space shuttle endeav our. this was the fifth try for the departure from the international -- to the international space station. if it does not work this next time, it will have to wait until late july. i am ainsley earhardt. now, back to greta. greta: kim jong il may be close to death. according to one source, he has pancreatic cancer. he looked noticeably thin at a recent public appearance and possibly had a stroke last year. the author of the book "nuclear showdown" joins us. gordon, in reading your book, i

learned much about north korea, including about what happens when kim jong il dies, and who is running the country right now? >> well, i think the military is running the country right now, and we know that because in the past, north korean provocations were once or twice a year, and now, they are coming more frequently. we had the thing in april and the nuclear detonation in may, the renouncing of the korean war armistice, the launching of the missiles, being in defiance of the security council. they are just coming one after another, and that is the military's hand. greta: he came out on the anniversary of his father's death or other event recently, but he never came out much. >> yes, he spent many, many

years in the background, behind the scenes, and he was actually running a lot of stuff in the government, but he never said a word to the north korean people, where he said nine words, which was something mike "hail to the great north korean military" -- which was something like that. he is just a cartoon character to them. greta: when he dies, there is either a military coup, the military takes control, it is his youngest son, or is his brother in law. do you care to guess? -- or it is his brother-in-law. >> his father took more than two decades to groom him. kim jong il has had about two months. if you are not going to have a 85-year-old general salute a kid just because kim jong il said he should.

only if kim jong il lasts more years will his son be in charge. otherwise, the military will be running things. greta: the military is the reason why they did the missiles and nuclear tests and the short- range missiles. what do you see if the military takes over? what happens? >> they become more hostile. the problem is is that there is no pushback from the obama administration in response to all of these provocations, so as the military pushes and pushes and pushes, it will be a real problem for us, and that is why we only have a short window to deal with north korea while kim jong il is still around, because after the takeover, anything can happen. greta: thank you. for more, we are joined live.

mr. secretary, what is going to happen when kim jong il dies? what do you think? >> well, i have some disagreements with your previous person. i am inclined to think it is going to be another kim, just to keep it in the family, and that probably means the young son, but it probably means that behind the scenes, the military will be there, and they have always been there. it may well be kim's son. largely, if he feels he is on the way out, now is the time to get all of these things out of the way, but whoever it is, i think it is no question. whether it is the military or the son or not, there is no

reason to predict that anything is going to get any better with the north koreans between now and 20 years from now as long as that regime is in place. there is a pusillanimous attitude. thanks to the pusillanimous attitude of that regime and too many regimes in other parts of the world, this has gone on. greta: and you go back to 50 years. i do not know is interesting is the right word, but the people of north korea, not the leader, not the military, they believe that we hate to them. they hate us. they believe that we want to invade them. there are so closed off that they have no idea that we would be interested in talking or trying to make things better, so what would be our strategy in this kind of narrow window when north korea is in transition? what should we do? >> well, there are some things

we should do, but i do not think anything is going to change the attitude of the average north korean. that is the most hermetically sealed country around the world, and they are totally and completely dominated by the government, and the government is dominated by the kings, by and large, and by the military, as well -- is dominated by the kims. frankly, we are between a rock and a hard place now, but ever since we let them build that first nuclear weapon, we have been in a very difficult position to try to do anything with them, because they can hold south korea hostage for anything we do, and if we make any attempt on them at all, we are in danger of them having them wipe out south korea, and that is why we are constrained beyond belief in terms of trying to do anything.

greta: are cooked to? we have to just sit there and wait for the best -- we are cooked? >> well, i am afraid -- there are some things we can do, but they would require the use of force, and you know how popular that is these days, and i would say if we had done this, if we had stopped this nuclear-weapons business before it even got anywhere, we would be in a far easier position to do something that we are. the fact of the matter is that they have nuclear weapons now, and they can use those against south korea because they cannot get to us yet, and they can really why the south korean out with these weapons they have. -- they can really wipe the south koreans out. they can put these weapons into the united states.

i think we have to go to war to clean them out and do it fast, and if we have to do it alone, we have to do it alone. i do not think this regime is up to wit, this administration is up to it, -- i do not think this regime is up to it. so i think they will sit back and watch these people and may be pinched them a little bit with a sanction, but we are not going to do anything -- and maybe pinch them a litltle bit. greta: thank you. up next, the best of the rest. an embarrassing situation for president obama, and a situation involving two penguins. plus coming here is what we need you to do. scream some curse words at the top of your lungs. we are going to tell you why.

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greta: well, you have seen our top stories, but here is the best of the rest. president obama and his teleprompter. >> why we took swift and aggressive action in the first

months of my administration to pull our economy -- sorry about that, guys. [laughter] greta: the sound you heard was the teleprompter crashing over. the machine broke into pieces on the ground. the president, he was calm throughout the whole say. someone always ends up getting hurt. just ask pepper at the zoo. the same-sex couplexd of pengu's nested together and even incubated an egg laied by another ping an -- the same-sex couple of penguins nested together and even incubated an egg laid by another penguin,xd until linda.

and let the swear words fly. it might make you feel better. according to a study done in england, cursing can lessen pain if you get hurt. here is how it worked. they had people put their hands in a tub of ice water while swearing over and over. they repeated the same experiment without cursing. people could keep their hand in the water longer if they were dropping f bombs. and there you have is, the best of the rest. still ahead, last call -- and there you have it, the best of the rest. ñrdo you think conan o'brien polled david letterman? [ female announcer ] which new product do women think is best?

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greta: 11:00 is almost here.

flash the studio lights. last call. sarah palin stepping down. her almost son and law, levi johnston. ken then o'brien notice the irony. -- conan o'brien noticed the irony. >> what are you doing? the premise or sarah palin? bristols palin -- bristols palin -- bristol balin's ewx. -- ex. he made the statement while hosting a party for dark rum. greta: we are closing down shop, greta: we are closing down shop, and go figure why anybody would