same cloth. >> there is noplace like home. we begin with president obama delivering a landmark address in his ma turn homeland of kansas and in the same city where teddy roosevelt issued a call for a new nationalism a century ago. there he is with live pictures having just completed his speech and meeting people gathered there. at the center of president obama's speech he made it very plain. the very survival of the middle class in america is now at stake. this is not just another political debate, he said. this is the defining issue of our time. this is a make or break moment for the middle class. while kansas is deep in republican territory, the president chose to challenge the views being espoused by republican opponents and the removal of regulations and reduction of government and

belief that the free market will always prove beneficial. it didn't work when it was tried in the decade before the great depression, the president said and didn't work when we tried during the last decade. the president's speech deliberately echoed teddy roosevelt's call for a square deal for all americans. as he faces the republican challengers and a congress that thwarts his agenda at every turn, is this a unifying message, a new doctrine of fairness that paves his way to reelection in 2012. for much more on the president and the race for 2012, let's bring in our panel. political analyst jonathan alter and with us from washington, msnbc analyst and chairman michael steele. i want to play for you both the sound from the president's speech early today and get your reaction. he laid out what could be his central reelection strategy at the top. take a listen. >> there has been a raging

debate over the best way to restore growth and prosperity and balance and restore fairness. throughout the country it sparked protests and political movements from the tea party to the people who have been occupying the streets of new york and other cities. this is not just another political debate. this is the defining issue of our time. this is a make or break moment for the middle class and all of those who are fighting to get into the middle class. >> jonathan, is it the defining issue of our time? >> no question. i think the president did a good job of laying out the stakes, what it election is about. it's what we owe each other as a people. are we going to continue to be a country with a basic sense of fairness or go back to the cowboy capitalism that got us into the mess? >> the president went on to say

their philosophy, referring to republicans s simple. we are better off when everyone off is left to fend for themselves and play by their own rules. he is right, isn't he? >> that's just silly. the fact that the president is channelling roosevelt or reagan or whoever speaks to the fact that for at least the last two years, nothing has been done with respect to job creation. you go back to the beginning of administration and his folks say let's focus on the job creation rather than health care that is so badly needed. that hasn't happened. i think the reason the president finds himself having to go to kansas to give these kinds of speeches is that he has to try to make up the ground that has been lost in the eyes of a lot of voters. >> jonathan wants to -- >> let me finish the point and you can have all the point you want. it's clear where the american people are and the president is

trying to make up lost ground. the speeches are not going to be enough and he is going to have to put more on the table and not just point fingers at republicans and say you have done or supported wall street, you have to put something on the table. he hasn't yet. >> let me put something on the table. what do you call the jobs bill? he has been putting things on the table for a while new. now. >> let jonathan finish. >> you are insulting the intelligence of the viewers. everybody out there knows that the president has been putting jobs ideas on the table and they have been blocked by the republicans. your party offered nothing except budget cuts to create jobs. budget cuts are necessary long-term, they do not create jobs for the american people. they don't get the economy going again. cutting regulation does not get the economy going. the party -- excuse me.

>> one moment, michael. >> the party is insulting the intelligence of the american people. which side of people on? they are unhappy with obama because the economy is not good, but what does the public favor? do they favor jobs bill and taxing millionaires more? right on down the list. 60 to 70% majorities for the democratic positions. the party is badly out of step. >> when the period was speaking he said this. when president clinton first proposed tax increases, folks in congress predicted they would kill jobs. instead our economy created nearly 23 million jobs and we eliminated the deficit. what happened when the bush tax cuts came in? where is the job creation? >> what happened in the bush years is something that didn't happen in the clinton years and that was spending. you had a congress again and the president working together to

cut spending. you did not have the same level of spending. in the bush years you had the tax cuts, but also an enormous expansion of spending. >> on wars. >> fine. we have to pay for the wars, martin. that's the point. you are spending the money. the fact of the matter whether it's a war or anything else, on health care, or whatever, the fact is that had expansion that led to a lot of problems we have right now today. that's both democrats and republicans in the last or so years engage in this level of spending. it doesn't stop under obama. >> i want you both to listen to what the president said when he gave a critique of what history told us about a so-called theory of trickle down economics. listen to this. >> there is a certain crowd in washington who for the left few

decades have said let's respond to this economic challenge with the same old tune. the market will take care of everything, they tell us. if they cut more regulation and taxes, especially for the wealthy, our economy will grow stronger. that theory fits well on a bumper sticker. here's the problem. it doesn't work. it has never worked. [ applause ] >> jonathan, the president went on to say before the great depression it didn't work and during the 80s and 90s it didn't work and every single republican candidate for the presidency says this is precisely what they believe in. the removal of government and reduction of government and kurtikurt i cutting of taxes. >> what's interesting about this is he is echoing a great

champion of the republican party. he was a republican president and revered at republican conventions. theodore roosevelt. the modern day republican party moved away from roots giving another quick example. abraham lincoln, the founder of the republican party was a strong believer in what were then called internal improvements and today we call it infrastructure in the country and building the railroads and canals and so forth. today's republican party votes again and again and again against infrastructure investments unless they are accompanied by further tax cuts for the wealthy and michael raised the question why not pay for the war? who didn't pay for the war? it was republican who is for the first time in american history did not pay taxes to pay for a war. the history here is very, very important. one of the things the president identified today is we need to see these things in historical

context and understand how the republican party over the last couple of decades is a huge departure from the roots of the department. >> how do you respond that the president was making when you look at the past, the evidence tends to support the argument that when government does invest and does support the middle class, the economy thrives. >> look, i think the reality is there is a combination of forces in any given era that drives the economy and the time the president is talking about was a time where you didn't have the same -- i get back to the role of government in terms of spending. the amount we are spending is out of context of what we have been doing in the past. that had the kind of impact we are seeing when you have a tax cut. you are cutting taxes and reducing the revenues coming in and continue to spend, that is our deficit and debt and the other problems we have.

when you are looking at how we go forward when you have administration coming in and wants to continue spending more money when there is no more to spend and businesses are not generating that kind of revenue. it becomes a bigger and bigger problem. the republicans are saying fine, if you want to extend for the programs and let's find a cost savings whether it's regulatory or in the tax code. >> the president wants those. he wanted $4 trillion. there needs to be -- >> one second, michael. >> he supported an awful lot of simpson bowles. he was on the verge of a deal. we are spending too much. all he was asking was thatard a part of an effort, there be contribution by the wealthy and the people the country has been

so good to. you had all the republican candidate who is raised their hands and say they couldn't accept a 10-1 ratio of spending cuts to tax increases. they believe as a matter of religious doctrine, they believe any tax increase of any kind of terrible for the country. that's a deeply irresponsible view contrary to what abraham lincoln and each ronald reagan believe. >> i wish i had more time. thanks so much for joining us this afternoon. thank you. coming up next, why is lady gaga at the white house today? plus, christmas in hawaii? not so fast, mr. president. [ male announcer ] drinking a smoothie with no vegetable nutrition? ♪ [ gong ] strawberry banana! [ male announcer ] for a smoothie with real fruit plus veggie nutrition new v8 v-fusion smoothie.

could've had a v8. it's 4g, so you can do more faster. so, kathryn, post more youtube videos of your baby acting adorable. baby. on it. matt, ignore me and keep updating your fantasy team. huh? jeff, play a game. turbo-boosting now, sir. dennis, check in everywhere you go on foursquare. that's mayor dennis... of the water cooler. you're the best. liz, rock out to pandora. oh, no i'm an only child. and nick, you shouldn't even be here, you can do everything from the golf course. good? good. [ male announcer ] on at&t, blackberry® torch moves at the speed of 4g. ♪ there's a different cream. i challenge that with olay. i've found one cream with everything i'm looking for... olay total effects. with 7 age defying effects in just one, easy to use cream. i've swapped to all-in-one total effects. why don't you swap too?

>> this is the defining issue of our time. this is a make or break moment for the middle class and all those who are fighting to get into the middle class. what's at stake is whether working people can earn enough to raise a family and build a modest savings and own a home, secure their retirement. >> that was president obama discussing the urgency of congress to come and act in the name of the middle class. if the matter is not resolved quickly, the president's christmas break to hawaii along with a holiday for all members of the house may have to wait. for more let's go to kristen welker at the white house. good afternoon. the president just delivered a landmark speech in which he said this is a defining moment for the middle class. isn't this precisely why he

wants to extend the payroll tax holiday. it will benefit the middle class. >> right. that is the president's argument that if congress passes an extension of the tax cuts, it will benefit the middle class. by our own analysis, if this expires, it could cost the average american family and by average making about $50,000, 1,000 more every year. what you have right now on capitol hill is republicans and democrats saying we need to extend the cuts, but how are we going to pay for it? right now that's the major sticking point. democrats are saying let's tax those making $1 million or more and republicans pushing back and saying even doing that could hurt small business owners as well as adding to the deficit. that's where the push back is coming. as you said, this was really the

the broadest speech as he mapped out the vision of ow to get the economy back on track. >> briefly what is the white house saying about the first family's holiday trip. we had plenty of reports and some of them are erroneous about him planning a lengthy trip in hawaii. is that unless this matter is resolved. >> we haven't had any dates about when they may leave. he made a reference to it when he was there for the conference and said that he and his family will be heading to hawaii for the christmas holiday and he hopes he will make it and only make it if congress gets business done. if history is a guide, martin, it is quite possible this fight over extending the payroll tax cuts and unemployment benefits might go down to the wire. if i had to bet, you might see the first lady and first daughters take off for the

holiday and possibly the president join them a few days later. >> the white house is getting a visit from pop music royalty today. lady gaga herself will be making a visit to 1600 pennsylvania avenue. what's the purpose of her visit? >> lady gaga has already come to the white house and snuck in and snuck by the cameras. she is here to discuss anti-bullying measures, something that she cares a lot about. the white house actually held an anti-bullying conference and she is sheer talking to the office of engagement. she med president obama months ago and discussed anti-bullying in the fund-raiser. >> thanks so much. >> thanks, martin. >> coming up next, it's all about florida in 2012 and we are in a sunshine state of mind. [ male announcer ] tom's discovering that living healthy can be fun.

see? he's taking his vitamins. new one a day vitacraves plus omega-3 dha is a complete multivitamin for adults. plus an excellent source of omega-3 dha in a great tasting gummy. one a day, gummies for grown-ups. oh, there's a prize, all right. [ male announcer ] inside every box of cheerios are those great-tasting little o's made from carefully selected oats that can help lower cholesterol. is it a superhero? kinda. ♪ i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy more than a few times before they're grown. but it's for them,

so i've found a way. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there. [ male announcer ] indulge all you want. now there's no need to hold back. ♪ new revolutionary scope with dualblast technology obliterates strong food odors and kills bad breath germs leaving your breath minty fresh. hey. sorry i'm late, baby. i bet you're starving. [ male announcer ] so there's no trace of evidence... hey, i thought i did the dishes. [ male announcer ] blast away strong food odors and bad breath germs with new scope dualblast. also, try crest complete extra white with scope dualblast.

even if you think you can live with your old mattress... ask me how i've never slept better. why not talk to one of the 6 million people who've switched to the most highly recommended bed in america? it's not a sealy, a simmons, or a serta. ask me about my tempur-pedic. ask me about how i can finally sleep all night. ask me how great my back feels every morning. did you know there's a tempur-pedic for everybody? tempur-pedic beds now come in soft, firm, and everything in between. ask me how i don't wake up anymore when he comes to bed. these are real tempur-pedic owners. ask someone you know. check out twitter or your friends on facebook. you'll hear it all, unedited. tempur-pedic brand owners are more satisfied than owners of any traditional mattress brand. now just in time for the holidays, you have the chance to win the perfect gifts from tempur-pedic-including the bed of your dreams! our snuggle up and win sweepstakes starts soon. enter at snuggleupandwin.com today. tempur-pedic, the most highly recommended bed in america.

the latest polling finds over 83% of americans disapprove of the performance of the current congress. some of you might think that's an underestimate. few politicians are quite as scathing as the former congressman from florida, alan grison who offered this classic rebeaut to republicans during the health care debate. >> if you get sick in america, republicans want you to -- if you get sick the republican health care plan is this. die quickly. that's right. the republicans want you to die quickly if you get sick. >> defeated by a tea party candidate in 2010, gray is running again and if you think he has taken the gloves off, think again. alan grayson joins us from orlando. good afternoon, sir. >> quite an introduction there.

>> i'm sure you will live up to it. the republican appealed to republicans to extend the tax holiday beyond the end of this year and nobody should think about a christmas break until the matter is resolved. do you think this congress is going to end the year in another deadlock debacle? >> it's quite possible. there is party that wants to do something to solve problems and another party that couldn't care less. what i said was that the republican health care plan is don't get sick and if you do, die quickly. i think their plan for the economy to recover is prayer. i don't think they plan anything else. the democrats put forth consistent sound proposals to move the economy forward to get people back to work and the republicans say no, no, no. >> that's not entirely fair since every republican is a

christian. some are atheists i'm quite sure. the president is blamed for not managing this to a successful conclusion sheechl attacked by a number of candidates including one newt gingrich. how are we, sir, to understand mr. gingrich? is he an insider or outsider. a lobbyist or historian. is he corrupt or a pair gon of virtue? >> he's a hateful person who has a history of all sorts of transgressions both political and personal. given his personal life, i would be worried if he were elected president, he would find a way to cheat on the country and look to be prime minister of india or something like that. not somebody who the country could ever trust to do the job properly. he simply wants the job and nothing else. >> you are aware he is the front-runner currently. >> you know, i will you somebody told me recent leahy listened to newt gingrich's speeches in the debate. he said that man sounds craze to

me. he said if you listen to newt gingrich for 68 years as newt gingrich had to do, wouldn't you be craze he? he spews nothing but nonsense and hatred is a stupid person's idea of what a smart person looking like. >> the bum of the month. the alternative to mitt romney. he's ahead. >> we will see what happens. i'm sure that everybody on the democratic side will say hallelujah if someone so unprincipaled and self serving as newt gingrich and unappealing and crotch etty got the nomination, if you were to go to his house and catch him on his lawn, all you would hear and say over and over again is say get off my lawn. that's the theme song. >> you are right there in that part of the world. who will take florida, sir? >> i think the democrats will

take florida. florida is becoming a cosmopolitan state and following the same track that california already has followed. it's become multiracial and multilingual. for the republicans it's multisyllabic and a well-informed intelligent place which by the way by next year or the following year will be majority and minority like california and hawaii and new mexico. >> no one is disputing the fact that mitt romney is clever, he said in a woeful analogy that the president should get a grip on the economy and not his golf clubs. is this the leader that leads this nation to economic recovery? he is an experienced businessman. >> he is an experienced businessman in one thing. laying people off. that's not what the country needs right now. beyond that mitt romney simply doesn't want to do anything. he wants to be something.

he wants to be president of the united states. if you could uncover video of mitt romney in preschool, one child would say i want to be a fireman or astronaut and he would say i want to be president of the united states. it takes more ambition to solve the problems. >> given that you had time to reflect on the outside of congress, how can we improve the functioning of government after a terribly difficult year. you watched the fight over the debt ceiling and we are in the middle of the deadlock over extending the payroll tax holiday. as you look on the outside of congress, is there anything you think that could be done to change the way government functions? >> the answer is that ordinary people have to get involved. as soon as they leave the field, they leave the field to special and corporate interest and people who have nothing at stake except what's good for them.

ordinary people have to get involved. as long as we have more people watching college football than presidential debates, things won't get better. when ordinary people get involved then america will get better. >> what's your favorite college football team as we come to a close? you lost me. >> sorry, i'm having trouble with the audio here. >> i was going to offer you the opportunity. >> i was going to say joe namath's jets. that shows you how old i am. >> former florida congressman alan grayson. thank you very much for joining me. >> my pleasure. thank you. >> up next, lady gaga was there today and plenty of republicans who would like to be in the white house in 2012. today's top lines are just ahead. [ coughs ]

what is this shorty? uh, tissues sir, i'm sick. you don't cough, you don't show defeat. give me your war face! raaah! [ male announcer ] halls. a pep talk in every drop. helps defends against occasional constipation, diarrhea, gas and bloating. with three strains of good bacteria to help balance your colon. you had me at "probiotic." [ female announcer ] phillips' colon health.

kiss the donald's ring perhaps? answer questions at the donald's debate? perhaps not. here are the top lines. you're fired. >> he was on after my appearance, not before. >> the president of the united states of america is beyond reality shows. this is a joke. >> can you hj if msnbc was hosting and the moderator said i will endorse one of the republican candidates? >> fired. >> i wonder if that is the best use of candidate's time. i think they should be resting up over christmas. >> fired. >> would say this was a circus, but i took my son to see the circus and it was a wonderful thing. >> this is a country that elected a peanut farmer for the presidency and an actor who made two movies with a chimpanzee. >> he has been influencing in washington should tell people

something about the fact that he is no outsider. >> i want to thank speaker pelosi for what i regard as an early christmas gift. that is say fundamental violation of the rules of the house. >> we don't always see eye to eye, do we, newt? >> no. >> newt did not say that because he's a lobbyist for reece's. he is a well-known chocolate historian. >> if you want to talk about a poster child for capitalism, it's newt gingrich because of the consummate influence peddler and mid-romney is cut out of the same cloth. >> whoever's ideas of being hands on is not a better grip on the golf club. >> you're fired. >> let's bring in two of our favorite guests. strategist crystal ball and contributor joanne reid of the grio.com. crystal, you have written for

u.s. news and world report and am quoting your words. if the corrupting intersection of money and politic his a name, that name would be newt. tell us what you really think. >> i was holding back there. >> clearly. >> michele bachmann said it best. he's the poster child for crony capitalism. i believe that republican voters are so desperate to nominate someone other than mitt romney, they decided they would be willing to overlook the baggage. >> i thought the 2010 congressional elections were about getting rid of insiders. these were outsiders. 87 freshmen were meant to bring new thoughts and ideas. the republican party is going to the biggest 68-year-old insider they could find? >> it's a really strange dynamic and a parallel with john mccain and although he had a mavericky image, gingrich because he was

out of office for a number of years has this inside outside dynamic going on. >> joanne, coming to you, the new polls are remarkable. gingrich is surging. iowa is 33%. just 28 days away. he isality 38% in south carolina where the victor has been the nominee since 1980. people talk about him in electability, but that doesn't seem to trouble newt gingrich. >> how sad for the tea party movement. they were this outsider movement and the choices between mitt romney who they don't think is conservative enough. newt gingrich who is the ultimate insider and who represents who they supposed 3 hate in washington. he is the ultimate creature of washington. what he has going for him is these early primaries are in the conservative states. the mormon issue will hurt romney. gingrich is from georgia. he is a man of the south and he

is compatible with what the base wants. iowa wants someone very conservative and overtly christian. despite romney, i think there is a part of that base that doesn't buy him as a christian. >> do you agree? >> i do agree with that and we were talking about this beforehand. the problem is for mitt romney, you could see the republicans nominating a mormon for the candidate, but he comes off as out of touch. he comes off as a little odd and a little outside of the mainstream. the fact that he doesn't share the religion of the majority of the republican primary electorate is an issue for him. one thing i wanted to mention with conservatism, newt gingrich had flip flops as well. he manages to finesse things better than mitt romney. he is more stilled in that way and mitt romney was the governor of a liberal state. newt gingrich has been at the

far right of the party, but it moved progressively to the right over the years. >> in the mash up that we had of various people, you heard discussion about donald trump and a number of figures said this is not a good thing. they said they are having nothing do with it. what does mitt romney do. he was undecided as you expect. what does he choose? does he play or not? does it damage him if he turns off? >> he's a part of the circus and i guarantee he doesn't want to be part of the circus, but he has a problem with the base. the base likes donald trump. they like the birtherism and the attacks on president obama and his scholarship and college greats. they like that juvenile attack, but the base is hungry for somebody who is mean and negative about obama. if you don't show up and you anger the base that doesn't like you, for romney, he is a dammed

if you do and dwamed if you don't position. y he will feel compelled to show up so close to the iowa caucuses. he has a few days out and how do you not show up? >> you have to say newt gingrich made a move by coming out right away and say who would turn down the donald? of course i will be there. >> king rich performed better than anybody else, perhaps apart from mitt romney. he would welcome the opportunity, but it's a problem. >> here could implode because his ego is so huge. >> you never know what she going to say. >> exactly. newt wants to remind the pace o base that he is the guy to go to toe in a debate with barack obama. . >> there was an interesting contrast in the interview with bret behr and the glen beck

interview with newt gingrich. he handled it. he didn't come off as annoyed and he was gracious and sort of got out of the boxes that he was put into. mitt romney on the other hand was thin skin and prickly and had a major problem. newt gingrich in that way is more skilled and more nimble. >> because he's a politician. >> joanne and crystal ball, thank you so much. >> the treasury boss steps into the crisis and the pressure is on. we're kind of a quiet couple.

yes. but lately we've been using k-y® intense™. it stimulates arousal so the big moment is... (announcer) k-y® brand intense™ - intensifies female satisfaction. i'd like a decaf 360 calories please. i'll have a triple iced 410 calories please. you know what... i'll have this instead. [ female announcer ] swap one thing a day for a yoplait light at around 100 calories. it will add up to amazing.

timothy geitner is in germany urging union leaders to resolve differences and stabilize finances. in response, france and germany put forward a proposal for a treaty that would reinforce governance of the euro zone in response to news from standard and poor's it may carry out a

downgrade of the credit ratings of six countries including france and germany. all the while, markets continue to be affected by euro zone fears. for more on this, i am joined by the chief economist. good afternoon, diane. there is widespread anger in europe at this timing and spread from standard and poor's and it puts pressure on the eu summit on friday. do you think this added to fears that the single european currency could be in jeopardy? >> i think standard and poor's, i don't understand all of their positioning with the politics of this. i don't know that they were such good strategists, but beyond that it's facetious on my part. i am not pleased with what they have done. it's important and critical to say that the euro zone and the cost of dismantling is greater than the cost of saving it. we have a vested interested in

this and much more quietly than he was last time. talking about europe doesn't have the political will to do what they need. the pot calling the kettle black. 17 nation who is are trying to give up sovereignty and get their act into we can't do it in the united states of america. i think that is important. tim is much more quiet this time around which i think is the right way to play it. that said, it is important that the euro zone get their act together and whatever they come up with will be a pact, but it will take years to get the resolution through the 17 member countries let alone the european union which is twen countries to provide more support for the euro zone as we go forward. this is one step, a very important step, but a very long road. >> that's why this decision to issue the threat is not good news for america, is it? europe is absolutely essential to the economy of america. >> absolutely. i think people are under stating

both the direct and the indirect effects. china is a major trading partner and the export partner is europe. they are slowing that means they will be buying less machinery and exports in the auto industry. all of these things are intertwined, not to say the full-blown panic blowing up. we have seen guilt by association whether they are in good shape or not. the important week in 2008 between september 14th and 2010. they make money off of the subprime crisis. even good banks fail if we hit a full-blown panic. that's what we are trying to avoid. >> what else can the euro zone countries do? they are cutting back on expenditure. they introduced austerity and trying desperately that claw themselves out of debt. are they missing something?

>> can they come to enough of a pact and enough teeth that the european central bank can act to buy bonds in the region. that's where germany pushed back and it has been an issue for them not wanting to issue euro bonds and has other issues about not creating discipline in the way that germany would like to. the issue is can they put something together which is a pinky swear promise that has enough teeth and process in place that allows the ecb to move more aggressively to help the euro zone and imf involved talking about another funded by the european as a whole. uk may not be part of the euro zone, but they stepped up to bail out ireland when they had their problems. i look at the euro zone as a place like the hotel california. you can check in, but you can't check out. >> being literary and musical.

thank you very much. next, covert operations. is the west already at war with iran? the com pelg evidence straight ahead. financial advice is everywhere. real, objective investing help? that's a little harder to find. but here's what i know -- td ameritrade doesn't manage mutual funds... or underwrite stocks and bonds. or even publish their own research. so, guidance from td ameritrade isn't about their priorities. it's about mine. straightforward guidance. that's what makes td ameritrade different. ♪ [ male announcer ] trade commission-free for 60 days. plus get up to $600 when you open an account. how about the beat of a healthy heart? campbell's healthy request soup is delicious, and earned this heart, for being heart healthy. ♪ feel the beat? it's amazing what soup can do.

see? he's taking his vitamins. new one a day vitacraves plus omega-3 dha is a complete multivitamin for adults. plus an excellent source of omega-3 dha in a great tasting gummy. one a day, gummies for grown-ups.

are the united states and israel already at war with iran? iran's claim that it shot down a u.s. drone and the explosions outside the british embassy this week have led some to wonder if a covert effort is underway to scuttle iran's nuclear program and push them towards regime change. michael hersch is senior correspondent for the "national journal" and join us now. good afternoon, mike. >> good afternoon, martin. >> just today, the obama administration launched what they're calling a virtual u.s. embassy with iran. as we look at the new website, which the white house says is designed to encourage dialogue with the iranian people, do you believe this is sincere, or is

it just a smoke screen for what's really going on behind the scenes? >> well, fortunately, the virtual embassy probably can't be raided and attacked the way britain's actual embassy was just last week, which i think was, again, part of what we're seeing, which is a covert war and retaliation to increasing degrees by the iranians, the british ambassador himself said that he thought that those iranian student protester attacks were fomented by the government. so i think that to get back to your point, there's no question the obama administration is trying to appeal directly to the iranian people, while isolating or attempted to the iranian regime. >> michael, in your remarkable story, this is what you write about something very ominous. "if iran i know retaliations grow serious enough, they could provide the pretext for a much

larger war in which the israelis, and possibly the americans, launch a full attack on iran." i mean, that is incredible, isn't it? >> yeah. i mean, that gets a little bit into conspiracy theorizing, because we don't even have this covert war acknowledged by the americans or the israelis, so it's difficult to say what the ultimate plan is. but, certainly, there is a fear and has been for some time that if the iranians are led to retaliate in a dramatic enough way, that that could serve as where you see an attack. >> and in that context, republican candidates like mitt romney are demanding tougher sanctions, covert action, and pressure on the international community. in your story, you quote a senior u.s. official as saying those things are already happening. so is it your view that we are essentially in some kind of conflict already?

>> i think the evidence has been growing. and that's what i tried to look at in this article. we have already had over a period of many months now, going back to last summer and before, a lot of tit for tat events. a number of iranian nuclear scientists have been mysteriously killed, assassinated, even in downtown tehran, by men on motorcycles. we have seen the iranian retaliations, which may include this embassy attack against the british, just last week. there was a bomb in bahrain that exploded right near the british embassy. the british, by the way, have been cited along with the israelis as having been involved in this covert war. so i think the evidence, you know, is now just too obvious to ignore. that what we're seeing here is a long, concerted effort by, probably, the u.s. and israel,

and these officials i spoke to on the u.s. side, you know, effectively acknowledged that they would not deny that such a campaign was underway. >> michael hersch of the "national journal," disturbing story. thanks so much. >> thank you. and we'll be right back to clear the air. the best approach to food is to keep it whole for better nutrition. that's what they do with great grains cereal. they steam and bake the actual whole grain while the other guy's flake is more processed. mmm. great grains. the whole whole grain cereal. ♪

♪ [ male announcer ] everyone deserves the gift of a pain free holiday. ♪ this season, discover aleve. all day pain relief with just two pills. how did i get here? dumb luck? or good decisions? ones i've made. ones we've all made. about marriage. children. money. about tomorrow. here's to good decisions. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there.

it's time now to clear the air. and today's award for fabricated nonsense, labored repetition, and vacuous comparison goes to mitt romney, who clearly spent an immense amount of time preparing his latest attack on the president. this one centered on mr. romney's claim that president

obama will be spending 17 days on holiday over christmas playing golf. a suggestion that mr. romney has clearly exaggerated, because there's no official commitment to such a lengthy vacation, we checked with the white house, and the president has made it clear that he will not be leaving washington until there's some resolution over extending the current payroll tax holiday and unemployment benefits. but this wasn't going to stop mitt romney, because he'd come up with a fantastic analogy. that the president, who he says should have a grip on the economy, is really only concerned about gripping his golf clubs. brilliant! >> his idea of a hands-on approach to the economy is getting a grip on his golf club. >> give that man the shakespeare award for combining economic downturn with the swinging of a golf club. genius. but as with everything that mr. romney says, there is never any consistency to his position. even when it comes to gulf.

because this is what he said a year ago. >> i think the country's probably better off when he's listening to his advice from his caddie, rather than from his economic advisers. so then the president should be playing golf, but now he shouldn't. say whatever you like about mitt romney, he is always shamelessly inconsistent. but getting back to his latest attack, and mr. romney was in full flight, so to speak, and he couldn't resist driving home his spectacular allegory with some artful representation. >> i just think it's time to have a president whose idea of being hands-on does not mean getting a better grip on the golf club. >> there it is again, beautifully delivered. he states his case, he repeats his case, and all within a perfectly timed sound bite. and when you hear it, you quickly realize why so many republicans can't stand the guy. thanks so much for watching. dylan ratigan is here to take us forward from a bunker in burbank, california.