wasgoing. >> oil and water and poll tixes and science shouldn't mix. >> that is a good line. >> republicans have the house, and i'm sure they will be investigating this. >> sean: darrell issa, get used to it. hope they're not shredding documents at the white house. 1600 pennsylvania avenue. thank you for being with us. let not your heart be troubled, the news continues. greta is next. see you tomorrow night. >> greta: tonight, are you ticked off? seems like a lot of people are. the debt commission has ideas to lower the nation's debt but the ideas are not pretty. former speaker of the house newt gingrich joins us live. good evening. before we get to the issue of the debt commission, i'm curious what you think about the news tonight that congresswoman michele bachmann is not going to seek leadership role in the republican party in the house. what do you think about that?

>> i think michele bachmann is a national figure in her own right. she represents strong relationship with the tea party and largest fundraiser in the house on the republican side. my guess is she will be a bigger and bigger national figure and her influence in the house will be considerable but the strengths of being great national leader aren't always the same as figuring out how to sit in the back room and work out the legislative processes. this may use her talent as strongest, national communicator and national mobilizer of people, resources and vists and one of the key conservative of her generation. >> greta: i suspect either she did a head count and discovered she wouldn't win, or she got offered something. >> i think that, i think that there is a clear sense she is a great effective outsider and probably in terms of the head

count it might be difficult. i wouldn't under estimate how sharp she is or overestimate with this means for her long-terms influence. he will remain one of the most important articulators across the country, a real rallying point for grassroots conservatives. i think you will hear more and more of her. i have wouldn't be surprised to see her run statewide in the near future. >> greta: wouldn't the tea party movement rather see her, though, since she is leader of the tea party caucus, see her in a leadership role? >> i suggest they would but grassroots don't vote in legislative bodies. that's what makes it frustrating. grassroots have to decide how to organize their leadership. while tea party elect people to the caucus, they don't define it or impact it. i think they have a big

impact. and john boehner said he fully expects to integrate all the freshman to being effective in the house caucus and having a real impact on policy. >> greta: does the party play in its own stereotype? it will be uncontested, four white men leading the house? >> well, this is a republican party which has the largest hispanic delegation in the party's history. it has two brand new elected african-american members. it has a number of women who are going to play key roles. i think you will find when the leadership is fully worked out, that there will be a number of members of the leadership who are women. and a number of members who represent much more than as he he put it four white men. it will also be by the way dramatic younger leadership than pelosi and the democratic leadership. rich gayland estimated yesterday that the house

republican top three leaders are collectively 60 years younger than the three top democrats. maybe we ought to top about ages. >> greta: we moved on to the debt commission. i have didn't see cheering when the news is leaking out as to what the debt commission might be suggesting. how are we doing with the debt commission? >> i'm not going to cheer either. what disappoints me is that there are number of fundamental improvements in government that would save an amazing amount of money. which for some reason, when you get politicians in a room and they close the door they go back to the same old staff reports with the same old bad ideas. i don't get it. recently there was a technology program ibm played a role in and proposed trillion dollars in savings. fun of which would be noted by the american people.

trillion dollars over the next decade, by doing things smarter and more like the private sector, dramatically greater efficiency. we published a book called stop paying the crooks. you had jim on your show. we proved there is between 70 and $120 billion a year in fraud and theft in medicare and medicaid. that's frankly the cost of the health plan. you cannot get the tired worn out paper-based bureaucracies of washington to think about modernizati modernization. you can't get the political figures to slow down to learn how the private sector does things and they have ideas that are going to fly. i'm not going to applaud imposing pain on the american people, because politicians aren't prepared to impose improvement on the government. >> greta: i think that is what is going to set a huge portion of the country on fire. certainly the middle class is

a provision. your home is your equity. that's your nest egg. if they mess with that, they will set people on fire. >> let me say first of all, i have a lot of respect for the two co-chairs. it worked with both of them in a variety of roles. effective working with erskin bowl when he was the chief of staff with bill clinton and we passed budgets and did things we're proud of. i don't mean for it to be negative about either. you can do bold things that people talk at in joernl town cocktail parties and editorial writers say they're heroic when they're baloney. the idea that this level of the economic pain, american people will give up their home mortgage deduction is so out of touch with reality.

the average american don't trust politicians. that i could have had ten ideas that could have gotten serious attention. if this is where they are going, it will drown in the public dissatisfaction. >> greta: speaker, we expect to be congressman boehner to be the speaker of the house. he said he will fly commercial instead of fly private. is that a stunt or a commitment? if he finds out he is standing if line like the rest of us, he may think again later? >> first, he's been standing in line to go through security. he's been flying commercially. he's out there doing what normal everyday americans do. the fact he is giving up the pelosi airplane will be seen by every tea party member by

every taxpayer and conservative as a totally sound thing to do. i'm proud for him getting rid of it. it found it fundamentally wrong for speaker to have a military aircraft. it should be used by airplane. there are circumstances where you need protection of the speaker but absence of flying back to san francisco is luxury and convenience. it wasn't about national security. i'd like to esee what she says if he was asked to be speaker the he'd ask for it again. >> governor perry told me and he wrote about it in his book, dennis hastert getting $40,000 a month and out of conference.

is he getting money from taxpayers? >> it may be true. i turned it down when i stepped down because i didn't want attacks from the democrats. there is a provision much like there is for the presidential libraries and transitions. it's time limited and i think it's seven years. >> seven years! i mean if we are talking about congressman bainer giving up the private plane what in the world would we pay seven years out for long gone. at least according to governor perry, he's a lobbyist. he's doing quite well. >> nobody needs the money. i'm dubious we do about the

former president and high-ranking officials. we don't need a habit of coddling people above and beyond the practical. if you had been a national leader there is a period where you are getting a lot of corespondents and the official cor spon depts and relates to the job you held. therefore you get help and you can't use it for private purposes and for your private business. it's specifically to take care of public business. for example, archiving your papers. i didn't take it. i decided it was the wrong thing to do. it opened a can of worms. i don't know what speaker pelosi's plans are but i suspect it's useful for the congress to review those things. and really question whether the taxpayers need to pay for any perk of that kind.

if you stand by we have more next. india and pakistan hate each or and both have nuclear weapons. mr. obama said something not received well in pakistan. coming up, pervez musharraf goes on the record. he has stuff words for our president obama. pervez musharraf minutes away. it looks like sarah palin has competition from someone in her own family. we'll let governor palin tell you about it. today we take the fusion proglide challenge to mach 3 users.

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>> greta: we're back with former speaker, and is this the seventh novel you've written? >> this is about the creation of the army and persistence it took to beat army of the british. >> greta: when i first picked this up, i felt lazy. you talk about solutions and i thought don't tell me you're writing another book. that's my first impression. it's astounding. seriously, how do you do this? >> i write on airplanes and i have laptop and i got apad and i write like crazy. i like to read.

calista puts up with me spending whole days sitting staring at a screen and trying to get things done. the stories we've told are things we want to talk about. we think for example, there was a lot for modern america to learn from george washington, if we can bring him alive and we tell you a story in a way you get excited by it, that you decide that this is fun. people will learn about what made america unique and what it takes to be a free country. >> greta: i should add going through the movies and you colista did. the documentaries. the new book "valley forge." now to the economy. are you siding with governor palin against the back-and-forth with what the federal reserve is doing about putting the $600 billion cash in our system? >> it was fascinating that the german economic minister and governor palin made the same point. we've now had several other

countries weigh in. alan greenspan said something today, the former chairman of the fed. i believe that chairman ben bernanke fundamentally misunderstands what is going wrong in america. american corporations have $2 trillion in cash available to invest. they're not investing it because the problem is not capital. the problem is lack of confidence. they don't trust the obama administration. they don't know what the tax code will be. they think the health bill will bankrupt them. they look at the vit roy yollic anti-business language and they ask themselves why would i want to take risks and create jobs in america with this administration? frankly there is a real danger that chairman bernanke extra $this is an extra $600 billion will lead to inflation in a way that is very, very dangerous. >> greta: all right. putting aside the inflation issue and not saying that it's not insignificant, it's huge if we get into inflation. i got that. i realize that.

in some ways, you know, it seems like the chinese have been gaming us by keeping their currency artificially low. it seemed to me that it was somewhat of an effort for the united states to get back in the trade game in a sense that by making our trade, our products more attractive. even like in germany, in terms of their export so that instead of them exporting their products to the united states with the dollar lower it might put us back in the game. >> it's worth starting with germans because they have the lowest unemployment rate in 18 years and the most successful exporter in the world outside of china. they're doing a lot of things right. the things that the liberal democrats don't want to do. you have to have tort reform. you have to have a tax change that favored investment and tax change if we followed up with ideas that have been floated and 5% repatriation tax. there is six or $700 billion in profits that are locked up

overseas. that could lead to explosion of investment boom in the united states. we have to look at something like the tax bill congressman jordan of ohio, the economic freedom act which would expand the american economy. problem in the united states are government created. they're not currency problems. if we favored manufacturering and investment and small business we could compete with the chinese tomorrow morning without regard to the value of the dollar. it's bad domestic policy that is killing us. not the chinese. >> greta: we have 30 seconds left. give me a prediction of what is going to happen with the bush tax cuts. will they be extented and for whom? >> i believe there will be no tax increase on any american in this recession. the newly elected republican majority will insist on no tax increase on an american in a recession. in the end, i think the president will sign it because he can't go to country with class warfare with 9.6%

unemployment. >> sean: mr. speaker, thank you. >> thank you. >> greta: next guest is member of the tea party caucus and wants to make big news in the first 60 days of the new congress. president obama won't like this one. stay tuned for that one. rahm emanuel has trouble at home. sort of. it could derail his run for mayor of chicago. this is

>> greta: 60 days of the new congress, barton wants to give obama a major headache. what does he want to do? congressman joins us live. the headache is what are you going to do about the healthcare to give the president a headache about? >> the new republican speaker

to be john boehner says it will be a priority to fulfill the pledge to america to repeal obama care. there are three committees that do the heavy lifting. the committee i hope to chair, energy and commerce, ways and means and education and labor. and it's the speaker's decision about the timetable, but he has indicated he wants to move it fast. i'm prepared if i'm chairman the first day it's sworn in to hold a hearing and bail out a committee within 30 to 45 days. and then let the speaker schedule it on the floor within the first 60. that is his call. how to do it. in all of his private and public statements he wants it to be the top, one of the top priorities. >> greta: do you expect -- if it went to the white house, if it went, if you had the senate sign off and went to the white house it'd get vetoed? >> that depends on how we do it. again, john boehner has said he wants an open transparent process. he has said he wants the committee system to work.

he wants his committee chairman to have a regular order and openness and post bills in a timely fashion. if we do that, greta, and at the same time we're moving the repeal bill, we begin to work with the public, the moderate and conservative democrats on a reform bill. i think we can get a lot of democrats to vote with us to repeal. if we send the bill over to the senate with 280, 290 votes 2k3 senators are up for re-election and they've seen what happened in the last election. you have a good shot to send a bill to the president's desk that he may think twice about vetoing. it's the president's call. but elections have consequences. john boehner, and the new house republican majority mean it when they say in the pledge to america we'll repeal obamacare. we'll do it as soon as we get the gavels.

but we'll do it openly, transapparently and let the public be part of the process>> greta: when you are going to hold hearings who do you footprint to summon to capitol hill to talk about what area? >> we'd summon the secretary of health and human services, secretary sebelius. we would summon some of the white house czars. when i say "summon" we would invite them to testify. in the tradition of the emergency and commerce committee is not subpoena unless absolutely necessary. i have would think that the president would encourage his cabinet secretaries to voluntarily appeal. he's one of the few democrats that campaigned for the new law during this last election. we'll have balanced hearings. former chairman soon to be ranking member henry waxman and congressman polone and markey and dingal. who helped pass it.

they will offer witnesses and question and testify and all of that. republicans have nothing to hide. we're not going to do bills in the dead of night. we're not going to not post things on the internet. so that the public can't see what is going on. i think the more the public sees in the process, the more they're involved in it, and the fairer they see it to be, the more likely we'll get democrats to vote with us. if that happens in the house and the senate, the president is up for re-election, too, in two years. it's a debatable proposition where he vetoes it or not. >> greta: congressman, i hope we get transparency. we've been promised it over a number of years. i hope we get it. thank you, sir. >> john boehner means it and joe barton means it. we'll get it. >> greta: thank you. >> thank you. >> greta: here is a look at what is coming up on the show after -- actually, no. first we have pakistani president pervez musharraf is here to go on the record. he has tough words for

president obama and he has some plans. we'll ask him if he is afraid he is going to be killed. all that and much more. plus, the story about sarah palin that is not about sarah palin and a story about rahm palin and a story about rahm emanuel that is not about [ k. tyrone ] i'm an engineer. my kids say i speak a different language. but i love math and math and science develop new ideas. we've used hydrogen in our plants for decades. the old hydrogen units were veryarge. recently, we've been able to reduce that. then our scientists said "what if we could make it small enough to produce and use hydrogen right on board a car, as part of a hydrogen system." this could significantly reduce emissions and increase fuel economy by as much as 80%. i worry about my son playing football. which is why i'm really excited. because toyot developed this software that can simulate head injuries and helps make people safer. then they shared this technology with researchers at wake forest to help reduce head injuries on the football field.

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>> greta: we don't need to tell you, but pakistan and india are loaded with nuclear weapons and they hate each other. we've taken you to pakistan for months and get ready for an interview we've waited a long time for. former pakistani president pervez musharraf is on the record. he is in washington and gave a lecture hosted by rick santorum the e thicks and public policy center. president musharraf, "on the record." nice to see you, sir. >> thank you. >> greta: welcome to the united states. >> thank you very much. >> it's always nice to see you here. >> our president, you're here in the united states. our president is not in the united states.

president obama went on a trip overseas and one stop was in india, where he said something that's controversial in your home country. he said that he talked about india wanting the permanent seat on the u.n. security council. your thought about that, sir? >> it wasn't well received in pakistan. no pakistani will receive it well, because we have a dispute with india. dispute recognized by the united nations since 1948. without the resolution of that dispute, the country which should not be a member of the security council. >> what is your view of president obama saying i think he said he endorsed it before the problem with independentia. we have a unique relationship with your country as well as with everything.

what do you think of president obama saying that? >> relations with india? >> does it disturb you that president obama is endorsing that? >> i don't believe being too indocentric. i believe in biliteral relationship with countries. the united states with a relationship with india, has implications. defies a relationship --[ inaudible ] in india, but what i get concerned with or any pakistani would get concerned with is the united states relationship with pakistan. then we have concerns. how the united states look at those interests. whether the united states shows sympathy toward our interest and our sensitivities is the question that we are

concerned. with i think president obama's visit to independentia to be frank over the insensitivity with pakistan. >> greta: what will happen here? the united states and relationship, will have a lasting impact. >> well, now, the impact of the visit and the negative feelings develop with pakistan cannot be undone. it's done. however, i would say in the larger context, we must develop total trust and confidence as far as our fight against terrorism and extremism is concerned. in that, sense we are a strategic partner in the war against terror, a requirement of the united states, understanding pakistan requirements. and helping pakistan fight

terrorism and extremism instead of suspecting pakistan, ignoring pakistan. >> greta: what don't americans, or the united states, what don't wes up about pakistan? >> sensitivity of pakistan. history. the strategic partner in 1989. for 42 years, cold war, pakistan was strategic partner of the united states. we fought with you and we won a victory for you. pakista pakistani[ inaudible ] what happened in 1989, we were aband abandoned. totally abandoned. sanctions imposed on pakistan

and the strategic focus shifting. you change your strategy with the orientation of pakistan. it was in the eastern part. to this question you should be asking to your policy makers. what has gone wrong? people of pakistan look at this as they have been betrayed, used and betrayed. then again on 9/11 for 11 years or 12 years from '89 to 2001, you left alone and we were fending for ourselves with 4 million refugees. al-qaeda coming and doing all the fighting in afghanistan, spoiling the environment in pakistan. now we're on 9/11. now again we're a strategic ally. now we the united states is

again planning to quit. rather to quit before legitimate stable government, before bringing it to pakistan or without? that? without that, then pakistan again has been used. and you quit. again a sense of betrayal and sense of abandonment. i think it falls entirely on the u.s. court, the united states has not been fair with pakistan. >> greta: when i was in pakistan in november of last year, with secretary of state clinton, she brought along an announcement that the united states bringing $7 billion to your country. and i was surprised that it was, it seemed to me correct me if i'm wrong there was recentment from pakistanis against the united states, because pakistanis thought we had strings attached to it that we want to know where the money is going to be spent. it seemed that there was a lot of resentment. am i wrong or right that the

resentment -- >> there was resentment. there was resentment because there were issues, sensitive issues which were part of that bill. trying to get pakistan in the military also how to conduct itself. and that went against the sovereignty of an independent state. it was viewed like that in pakistan. when you give aid, micro managing that aid doesn't go too well. so this has given some effect to extract and make sure that whatever aid has been given to be utilized there, but to

micro manage would not be well-received i think. >> greta: at the time, what was going on, as i understand, india was saying to the united states, a couple of things. one is pakistan takes some of that money and they attack us with it. they are making reference to the 166 killed in mumbai at the hotel. the other thing they were saying is why do you give pakistan that money when they have these terrorist camps that are breeding terrorism against the united states. when we, meaning india don't have that and not giving money. that's what the united states praises. >> i think we should visit the problem over a lack of understanding about pakistan sensitivities. money given and money being used for the attack on mumbai, mumbai you said, where 166 people killed, why is the money used there?

why are we suspecting it's the government? there are extremists, terrorists. in india in the muslim community. in pakistan. in the society. and these kind of attacks, therefore become possibility. i can say with surety in 2001 they was an attack on the indian parliament. now the indians masked forces against the pakistan border. why did they do that? i kept saying that i can assure you that has not been done by the government of pakistan. it doesn't have the backing of pakistan. these are independent groups, which have their own grounds against the indian army. in kashmir. because of the proximity of the indian troops in kashmir. and therefore, the mujahedeen

groups came up and they have developed nexus with the extremists in india. and therefore, these possibilities are there. so therefore, blaming for any terrorist attack on pakistan government i think is a serious matter. it must not be done. >> greta: next, more with president musharraf. will he return to pakistan and return the presidency? benazir bhutto was assassinate and is president musharraf worried about being assassinated as well? does sarah palin get upstaged by a member of her own family? úñ+ó6kñx?

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>> from america's news headquarters, i'm ainsley earhardt. president obama's visit to south korea has failed to clinch a free trade agreement. the president had hoped to clinch a deal in seoul.

both leaders vow to keep working toward a compromise, which could be worth $67 billion in trade. scotland yard revealing a mail bomb from yemen to chicago could have blown up over the northeast. the explosive was found abroad a usr ps cargo plane in england last month. british officials say it was time to go off after the plane entered u.s. air space inform asia, the nikkei is 9861. the hang seng is up at 24767. and dow jones futures at 11287. for more business news, tune to the fox business network, giving you the power to prosper. now back to "on the record." he with greta. >> greta: continuing with former pakistani president pervez musharraf. >> what do you think about iran going nuclear? >> well, plying pakistan against any further country

going nuclear, i think, and then other than that i believe that nuclear potential eight to be held for a reason. basically the reason is a threat. threat perception. pakistan became nuclear and it has a right, i feel it as a right because of the threat posed to it. iran has no threat at the moment. therefore i feel that they should not go nuclear. >> greta: can you understand how it's seen in the united states, where for instance, $7.5 billion last fall of the american people pledged to your government, or to your country. and then we have the horrible floods and we read about the president adarn the floods, he goes to a french chatteau and people in pakistan are suffering and dying and flooding and horrible conditions. and the american people penal more money. meanwhile, the rich and those high up in the government aren't paying taxes.

we're trying to fight a couple of wars and can you understand the frustration of the american people feel toward the pakistani government? >> i do understand, yes. corruption. it's terrible. and tax evasion is more terrible, especially in a poor country like pakistan, leads to suffering. if some rich and especially those in charge of the government, it's pathetic. >> greta: do you want to go back to president again? >> i want to go back in politics and that means that my party, my political party i launched about ought to win the election. once it wins the election, i ought to be standing for prime minister or presidentship, or somebody else could run. >> greta: why do you want to

do that? the reason i ask is this. i interviewed prime minister benazir bhutto and a number of times right before she died and one time in the united states before she left for pakistan. it seemed, you know, her life was -- it was obvious her life was at risk. you have had, you know, you've had people try to kill you. you live in london and been successful and raising money to help the flood victims and doing a lot of good. it couldn't figure out why she wanted to go back to pakistan in face of those threats. i assume you'd face them too. why? >> pakistan is suffering and the cause is greater than itself. if i saw today a political alternative, capable of coming to governance and taking pakistan forward and addressing the dispute, the issues that pakistan is facing, maybe i would have relaxed and said the presidency is looking after my interests, my own lecturing

around the world. i have no problem. but as i said, there is a cause greater than self. we only have one state, pakistan for ourselves. we can not let it go. at the moment, there is such disupon densy in the people and hopelessness in the people they lose hope in the country. there is a requirement of doing something there. because i think i may be able to do something, which others can't, that is why i decided to join politics. irrespect of the dangers. one has to take risks. there are risks again proportional to risks. if i go and there is zero risk, the game will also be zero. i will take risks. for more gains. >> greta: you don't fear they'll try to kill you either? >> my wife is more scared. i have faced these dangers.

as i said, i'll have to face dangers. i am prepared to face it for the sake of pakistan. >> greta: mr. president, nice to see you, sir. >> thank you. >> greta: you can see the entire interview with the president on gretawire.com. next, the best of the best. sarah palin wants to talk about the economy but some of her fans want to talk about something else. we'll let sarah palin explain herself. then rahm emanuel could get a challenge from chicago mayor from someone living in his own house. is it his wife? no. you'll never guess who. plus, it's a situation that ever ends in a russian prison, he is in luck.

>> greta: here is the best of the rest. apparently when some people meet sarah palin one specific comes to mind. watch. >> i was giving kids a couple ideas i want to talk about with their parents, probably not too exciting topics. i said ask your parents if they know what quantity ittive easing is, and tighten ing the debt. parents standing nearby looked

like they were interested in what it was i had to say. so i turned to them to make conversation with them about those topics in our economy. and instead, they want didn't want to talk about the economy. you know what they wanted to talk about? how is bristol doing on "dancing with the stars"? [ laughter ] i thought so fun. >> greta: rahm emanuel trying to make a run for his dream job. he could have unlikely competition for his job. his tenant. no ordinary tenant. according to reports when he left washington and came to chicago, he wanted to move to his own house. this tenant refused to leave having signed a new lease with emanuel. now the tenant tells the "chicago tribune" he is thinking about run for mayor. see if he throws his hat in the ring. in united states we tax them. russia, prisoners use them. what are we talking about?

tanning beds, of course. moscow prison is installing tanning beds to improve health of inmates. the prison is notorious for the rough image. snookie and the situation couldn't be reached for comment but there you have it. best of the rest. still ahead, conan o'brien tells tom hanks, you ruined my [ technician ] are you busy? management just sent over these new technical manuals. they need you to translate them into portuguese. by tomorrow. [ male announcer ] ducati knows it's better for xerox to manage their global publications. so they can focus on building amazing bikes. with xerox, you're ready for real business. ♪ an accidental touch can turn rdinary into sething more.

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it's time. last call. conan o'brien landed a great guest on his first week, actor tom hanks. apparently there is a little grudge to settle with tom. >> you ruined my life because you started -- you d you hav have -- now, i have to say sh you started. >> it was a little quip. >> you did it and someone referred to you as coco. >> so you repeated it and got people chanting it. now, my kids... they have little children who call me sometimes coco instead of daddy when enrages me. >> it's a sample of my power. >> i know. >>