>> schieffer: today on "face the nation," the latest on the new terror threat and the countdown to the midterm election. the government is looking for more people in connection with friday's cargo plane terror incident and we'll get an update from john brennan, a white house anti-terrorism pointman. and then we'll turn to tuesday's election. tens of thousands of democrats turned out in washington yesterday, but across the country the political wind seems to be blowing the republican way. are democrats about to lose control of congress or can the president's last-minute efforts safe the day for them? we'll talk to some of the key players. pennsylvania's democratic governor ed rendell, minnesota democratic senator amy klobuchar. new york republican congressman pete king and republican governor tim pawlenty of

minnesota. i'll have some final thoughts on two of my favorite fall pastimes: politics and college football. >> that's a touchdown. >> schieffer: but first the latest on the terror threat on "face the nation." captioning sponsored by cbs "face the nation" with cbs news chief washington correspondent bob schieffer. and now from cbs news election headquarters in new york, bob schieffer. >> schieffer: and we start this morning from washington. john brennan, who is president obama's chief counterterrorism advisor, mr. brennan, there's no other way to put it, the more we seem to find out about these bombs that were found on these cargo planes, the more this sounds like a really close call. how powerful do you think these bombs were? >> with, the investigation is

still ongoing. and the forensic analysis is being done. but i think the british assessment this time as well as the saudis was that it was a very viable ied that could have been detonated aboard that aircraft and could have brought the aircraft down. >> schieffer: do you think that that was the objective? i mean these bombs were addressed to these synagogues in chicago. do you have any idea what the target was for these bombs? >> well, they were addressed to locations in chicago that have been associated with synagogues. we're looking at the potential that they would have been detonated en route to those synagogues aboard the aircraft as well as at the destinations. but at this point we i think would agree with the british that it looks as though they were designed to be detonated in flight. >> schieffer: what was this all about, mr. brennan? is this part of some larger plot? do you think there are more bombs out there? what was going on here? >> well, as you know, al qaeda on the arabian peninsula is a

group we've been following for quite some time. we believe they were responsible for the underwear bomber last christmas. they were responsible for trying to assassinate the prince of saudi arabia. they've been very vocal in their threats against u.s. interests in determination to try to carry out attacks here in the homeland. we've worked very closely with the yemeny officials to go against. we've provided assistance to them. they present a very serious threat. this plot i think is part of that threat. we need to find these individuals who are responsible and bring them to justice as soon as possible. >> schieffer: there have been two women arrested as i understand it. are you looking for other people? i mean do you have specific suspects that you're looking for? >> well, i think these two women who have been arrested are the ones that the yemenis believe were responsible for bringing the packages to the u.p.s. and fed-ex offices. the sophistication of this device requires a number of people who are involved. we are concerned about individuals in yemen who have

very proficient bomb-making capabilities who are very dangerous. i do think there are a number of individuals who are responsible for putting this plot together. >> schieffer: have you been able to link these devices to the so- called underwear bomb that was found on that fellow that they finally arrested in detroit, the christmas day bomber? there was also another bomb that went off i think that injured a saudi official. is there any connection between these bombs and those bombs? >> as i said the investigation is still ongoing but there are very strong similarities of those three events that suggest to me that they are the work of an individual or individuals who are responsible for all three of those devices. four. >> schieffer: do you think that you have foiled this particular plot? >> i think we worked very closely with our yemeny, saudi and british counterparts.

we're very fortunate that the saudis were able to pass us this information so we could find those packages and neutralize them. we're not presuming that we have found all the devices that are out there. i think prudence tells us to make sure that we're doing everything possible to screen cargo coming from that part of the world even more rigorously than we have. we are currently put a hold on cargo that originated in yemen. >> schieffer: do you think yemen is terror central? is this where the focus and the biggest threat is now, mr. brennan? >> i think the president of yemen said it well. they recognize that al qaeda has presented a problem in yemen. it's a serious terrorist organization. they've grown in strength. the yemenis have been fighting courageously against the al qaeda terrorists that are in their country. it is a very active operational franchise of al qaeda. and so this i think just underscores the need for us to work even more closely with the

yemeny counterparts and to be as aggressive as possible in bringing these individuals to justice so that they cannot harm innocents whether they be in yemen, the arabian peninsula or anywhere in the world. >> schieffer: thank you so much for joining us this morning. i want to turn to pete king, a congressman from new york who is the senior republican on the homeland security committee in the house. if republicans do take the house, you'll be the chairman of the homeland security committee. >> i hope so. >> schieffer: i know you're well briefed up on all of this. what do you make of the way this pans out. >> i've had differences with john brennan. let me make it clear. on this particular matter i think the administration has handled it perfectly. they received the intelligence, share it with their allies, did what had to be done. the f.b.i., the tsa especially, they did what they had to do. they shared it with local police like the nypd here in new york. everything was done right. they continue to do it right. i give them full credit. >> schieffer: this was a big one, wasn't it? >> it really was. if we had not gotten that intelligence from the saudis you would have seen two planes go up

over the synagogues. it shows that al qaeda on the arabian peninsula is emerging as the major force in the islamic terrorist world. supplanting in some ways bin laden. they had the plot in detroit last year and now this one and also major ha san at fort hood. yemen was also behind that. that is i believe new major battle ground in the war against terrorism. >> schieffer: well let's talk some politics. that's what i asked all of you to come here to talk about did. governor ed rendell, governor of pennsylvania, it looks like the wind is really blowing the republicans' way this time. what happened? what did the democrats do wrong here? >> well, first, bob, let me just say i slightly disagree. i've sensed and i've been out campaigning the last couple of weeks, i've sensed that if this is a republican tidal wave i've sensed a democratic undertone going against it. democrats are much more fired up in the last two weeks than people would think. african-american voters i was in

a subway station. they're on fire because of the attacks by mitch mcconnell on the president. they know what's at stake here. gay voters. they know that they're in the cross hairs. they're on fire. latino voters in allen town pennsylvania are riled up. i think there's going to be some surprises. i'm not saying we're going to hold on to the house but i think there will be surprises on election day and particularly in pennsylvania. >> schieffer: back to my point though. >> what happened? bad communications. i think this administration has done a great job. you go through the things we've accomplished. more kids... credit card reform, financial reform. college loan reform. the stimulus which according to the cbo has saved a lot of jobs. health care was has done great things this year, five or six great things like people with pre-existing ill illnesses 25 years and younger can't be disqualified for health care. we did just a lousy job communicating it. we let the republicans to their credit outspend us a year-and-a- half ago when we were paying the price. >> schieffer: governor pawlenty

out there in minnesota, you've been out in the country too. i know you're traveling around right now. from your point of view, what is this election all about and why do you... i'm sure you're going to tell me that the wind is blowing the republicans' way. why is that? >> well clearly it is, bob. with all due respect to my good friend ed rendell i don't think it's about communication. i think it's about the product they're trying to sell. they're trying to sell something that isn't any good. what we have is an economy that remains in the doll trums. we have people reacting very negatively to obama care and the overreach of the federal government in that regard. that's just one example of many overreaches. then of course you have a sense of government is out of control as measured by spending and a lot of other measurements so people are angry. they're also worried about the future. and they're saying this is not what we thought we were getting when we elected president obama and the democratic congress. now the pendulum is clearly swinging back towards republicans. >> schieffer: lets see what your colleague from minnesota who comes from the other side of the aisle as it were. what do you think democrats need

to do now? let's get back past these next couple of days because i'm not sure the next couple of days matter very much. there are going to be a lot more republicans in washington whether or not the republicans take the house as many people think they will. what should the stance of the democratic party be right now, senator? >> well, i believe first of all we have to come together on a competitive agenda for this country. with the president in the lead. he's already talked about increasing exports. that's what people need to hear. i was up in northern minnesota just last week. the mines are hiring up there. a guy came up to me and said i've been out of work. i'm finally back at at work. thank you for extending that unemployment or i would have lost my house. you have to look at this time period of governor rendell suggested. is 21 months where we've been stabilizing things. now it's time to move forward. i appreciated congressman king's words about the administration's handling of this latest terror incident because that's what we're going to need going forward. i think courage is not necessarily going to be standing up alone in the coming years.

it's going to be standing next to someone you don't always agree with to work for this country. >> schieffer: do you really think there's any chance of that? i mean, we look back to the clinton administration. bill clinton elected, then he lost the house of representatives two years in. but he sort of regauged, recalibrated and managed to actually get some things done. do you think there's any chance of that? >> i do because i think that's what the american people want right now. they want us to move forward on education reform. they know that we're losing ground internationally and that we have to move forward on getting our university research and turn it into products, turning it into jobs. doing more with innovation. eeey see a path forward. and they expect leaders. i think the president will deal with this because he understands that he needs to buck where we've been and move forward. that's what they want to see. that's what they want to see in congress. i do think there should be shifting of priorities to focus more on the economy and jobs. that's what, when you look at these candidates out there and i agree with the governor rendell, there's three more days here.

the people of this country are going to have to decide do they want to people in that are going to face these problems that are going to face the nation or do they want to see people who are going to throw a bunch of flames in there and divide the nation. >> schieffer: pete king you were around when the republicans took the house the last time around. they started out really well but a lot of people thought they overplayed their hand and gave bill clinton a chance to actually get some things done that was not in that... in their particular interest or not the way they wanted to go. >> the first year in 1995 was a tough year. but i think the republicans, if we do win we'll have a mandate though to start cutting back on spending. if we just come in and start splitting the difference with the president to pee we'll be turning our back on the voters that elected us. we have a mandate to start reducing spending getting spending under control. that right now is the main priority of the american people. that's what john boehner and the republican leadership in the house of representatives absolutely are committed to. we have to get started on that. issues of foreign policy, obviously, education, reform.

there is certainly room for compromise view. not even compromise but working together. i think so basic issues of spending we see it as our mandate to get spending under control. >> schieffer: i just see a man behind you and over your shoulder shaking his head. >> every poll shows that's not the number one priority of american people. the number one priority of the american people is jobs and the economy. that's what we've got to focus on. more than anything else. if it means spending money on infrastructure like the president has proposed and creating thousands of well- paying jobs on construction sites and factories the congress better get to it. >> if i could just getting back to the governor on that. one of the reasons we are right now winning seat after seat it looks like in the house of representatives our candidates are stressing reducing spending. so while the governor may not see that, i think the seats we're going to win if we do win them it will be because we're pledged to cut back on spending. we have reneged on that pledge. then we just look like another group of politicians coming in. we have to make this year different from others. >> there's good spending and bad spending. that's what american people want to see us died. >> the commission is coming out

in december it's going to be really important to look at what they do to move forward. i just don't think the answer is giving millionaires hundred thousand checks. i'm hopeful we're going to come to reduce this deficit. >> schieffer: let's bring governor pawlenty in because i don't want to for get him out there. governor, weigh in here. >> well, bob, of course, the issue is jobs and the economy but that's the great debate. which is the democrats' view of it is to do that through government and more stimulus- style spend to go have government centric approaches to solutions like health care, drag it into washington d.c., top- down command and control government bureaucracies running systems and the republicans and conservatives are making the case that doesn't work. hasn't worked. won't work. we have to stimulate the private economy. we have to do things to encourage investors and small business leaders and people who are going to grow jobs by reducing tax burdens, reducing costs and government spending. it's two very different world views. the american people have heard those arguments and are saying through this election as you'll see on tuesday we agree with the republicans this one.

>> schieffer: we're going to take a break and come back and talk about this some more in one minute. [ male announcer ] you are a business pro. lord of the carry-on. sovereign of the security line. you never take an upgrade for granted. and you rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above.

and still pay the mid-size price. i deserve this. [ male announcer ] you do, business pro. you do. go national. go like a pro. >> scheiffer: we're back with our round table of elected officials and campaign experts. i want to go to amy klobuchar because one of the things immediately after this election, the president and congressional leaders are going to have to decide do they want to call the congress back for a lame duck session and deal with these extensions of the bush tax cuts? what do you think is going to happen? what do you think ought to happen? >> i think we have to do that. the middle class has to get more than a few tootsie rolls in their treat bag for halloween here. we just can't keep this policy of having the wealthiest get the biggest chunk of these tax cuts. extending the tax cuts to the middle class and then looking at what we should do with the wealthiest when we have trillion some dollar budget deficit.

there's two proposals out there, bob. one is that we could continue the $250,000 and above tax cuts for the bush tax cuts for another year or two. and then phase them out. or we could immediately say for people making over a million dollars, your tax cuts are done. you get them up to a million and go back to the clinton levels. i don't think that that is going to disrupt or economy. things were a lot better when bill clinton was president. those are two compromises that have been out there. clearly we have to have a combination of making sure the middle class gets these tax cuts and then at the same time figuring out how we do it so that we get some money back on the deficit. >> schieffer: do you think they'll act on this after the election? >> i think something has to be done. actually it's only the last few weeks we've heard any talk of compromise at all. i think we should extend the tax cuts. as john kennedy said to good democrats back in 1963 a rising tide lifts all boats. we shouldn't get into class warfare. many million airs are the small businesses that produce many of the jobs that are the engine of our economy. the worst thing we can do is

start to raise taxes on anyone as we come out of this economic recession. >> schieffer: governor, how do you pay for this though? >> you can't. the truth is and americans are going to have to deal with this sooner or later. if you extend all the tax cuts for another ten years it adds $4 trillion to the deficit. everything else all the government spending is miniscule compared to what it would add. what i would if i were king of the world, what i would do is i would extend the middle class tax cuts for two years, eliminate everything else and even phase the middle class tax cuts out and get us back to clinton levels after the economy recovers. it's the only way we're going to get control of the deficit. we have to start talking honestly to the american people. the republicans, no offense to peter who is a very good guy, but the republicans say the deficit is the most important. oh, yeah, except when tax cuts are concerned. we're going to add $4 trillion to the deficit. >> schieffer: governor pawlenty out there, you've been traveling around the country. how concerned are people? do you see that as the number

one issue out there right now? i mean, i think we all agree the economy is in the dump. that's the overriding issue. but this idea of these what to do about these tax cuts? >> well, bob, when you ask the american people, you talk to them in bakeries or hardware stores or in gatherings, what they'll tell you first and foremost of course is jobs as you noted but secondly is government spending. they want it reduced. they want the economy also to move forward positively. in my view, history shows and good economic theory shows if you reduce taxes, you're going to have more economic activity. if you don't extend the bush tax cuts all of them it is going to send a very negative signal to the economy that will be kourpt productive o the spending side we shouldn't just talk about paying for tax cuts. we should also talk about paying for the spending in the federal government that's on auto pilot. we need to have a, as ed rendell said, a very honest discussion. look the american people in the camera and say there's going to have to be, in the eye, and say there's going to have to be some changes particularly in the entitlement programs we're going to have to start bringing up those issues and be open and

transparent and candid it about it. we can't get federal government spending under control unless you're willing to tackle those entitlement programs. that's what's going to cause a problem. >> schieffer: i want to talk a little straight politics here. all of you have been campaigning for one person or another. give me your idea, senator co- buickor of the races we ought to be watching. >> i feel good about the senate right now in terms of what's going to happen at the end of this election. i think we're winning california. i think we're ahead in washington. 75% of the votes have already been cast. you look over in west virginia. where governor man chin has opened up a lead there. then you go across the country. you see things in al alaska where the republican candidate came out in favor of getting rid of the minimum wage. they're going down. my friend michael bennett in colorado is in a tight race in colorado. but doing incredibly well. there's just, you go through and i think people have stepped back and said we want to continue to govern and move forward.

we're concerned about the extreme views of some of these candidates. >> schieffer: we're very tight on time here, congressman. >> in new york we can take five or six seats. a race to look at john auch land rhode island patrick kennedy seat. i think we're going to take that back. >> sestak, too manyy in pennsylvania. we're going to hold the senate regardless but if joe sestak wins you'll have a very comfortable margin in the senate. >> schieffer: governor. >> the vice chair of the republican governors association are focused on the governors races, from 24 to 30 and probably well north of 30. going to see a couple surprises there maybe in maine but most of the great lakes states which for mostly blue back to red. that will be a bellwether for things to come. >> schieffer: i want to thank each and every one of you for being with us this morning. it's always fun to talk about politics. of course, the sign of the times. we had to start the broadcast this morning with the latest on terrorism. because it's the issue that hangs over all of this and it is. we just have to recognize that. back with some final thoughts in just a minute.

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system isn't perfect we still finish our elections the right way. we vote. too bad we can't figure out the right way to pick a national champion in college football. instead of a play-off to determine the national champion, which is how the other sports do it, college football has something called the bcs, the bowl championship series. a mysterious organization that feeds statistics and other mumbo-jumbo into computers to determine who plays for the national championship. what the bcs really is, of course, is all about money. it's controlled by the big schools who want only the big schools in the bowl games because they believe they'll get the biggest tv ratings. you're asking now, why is he off on this rant? well, it's very simple. i went to tcu, a smaller school with a very good team this year and we want to play the big guys. but even if we go undefeated we may not get that chance. the computers will decide our fate.

if we did our politics like that, computers would decide who wins our elections. maybe based on the strength of their opponents or their positions. and maybe there would be style points for the best yard sign. but we don't do it that way, thank goodness. so i pass on the advice for my mother that i always pass on before elections. go vote! it makes you feel big and strong. if you can figure out a way to, vote against the bc stchl. back in a moment. back in a moment. i do a lot of different kinds of exercise, but basically, i'm a runner. last year. (oof). i had a bum knee that needed surgery. but it got complicated, because i had an old injury. so i wanted a doctor who had done this before. and unitedhealthcare's database helped me find a surgeon. you know you can't have great legs, if you don't have good knees. we're 78,000 people

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>> scheiffer: that's it for today. we'll be back in washington next week and be sure to tune in tuesday night beginning at 10:00 p.m. eastern for cbs news campaign 2010 election night coverage. thanks for watching. see you next week. captioning sponsored by cbs captioned by media access group at wgbh access.wgbh.org in times like these, you need an experienced partner to look out for you. heads up! and after 300 years we have gotten pretty good at that. captioning sponsored by cbs

captioned by media access group at wgbh access.wgbh.org [ male announcer ] carly fiorina.

she's against banning assault weapons... and that's reckless and dangerous. she's for risky new oil drilling that could threaten our jobs. fiorina's plan would mean slashing social security and medicare, which would devastate seniors. and she'd make abortion a crime. no wonder fiorina is endorsed by sarah palin. carly fiorina. just too extreme for california. [ boxer ] i'm barbara boxer and i approve this message. what are the facts... about jerry brown? fact. as governor, jerry brown supported seven billion dollars in higher taxes. he called prop 13 a "fraud" and a "rip-off." fact. under brown, the unemployment rate nearly doubled, to 11%. fact. last year, brown said taxes should be raised again. in a recession. jerry brown: he failed on jobs before, can we afford to let him fail again?