i finally agree with sarah palin. because you know when i look at john mccain and i look at jon kyl and i look at boehner, and i see them getting absolutely nothing done. i am convinced that just permeates another rest of their lives. and i would not be surprised to find out that each day, these gentlemen woke up, they woke up with morning wouldn't. that's what i think, ed. >> lizz winstead, check out lizz's annual year-end review show at the parkway theater in minneapolis. tickets and information are at lizz winstead.com. tonight's text survey question is, i asked do you think the republicans owe president obama for compromising on tax cuts? 86% of you said yes. 14% of you said no. that's "the ed show." i'm ed schultz. "hardball" with chris matthews is next. have a great weekend. i'm going up north to shovel some snow. we'll see you monday. just in time for christmas. let's play "hardball."

good evening. i'm chris matthews in washington, d.c. leading off tonight, the democrats. for two weeks, president obama was taking heat from the democratic left over the tax bill. now, that it's law today, the president sits atop the middle ground. can this give him an advantage as he begins his third year in the presidency? charles krauthammer, a man of the right, says it can and it does. also, the president may be about to chalk up another win that will convince some of those on the left there is now a very real chance that don't ask, don't tell will be repealed this year. the senate may now have the votes to join the house and toss out the law this weekend. was it obama's call on taxes that gave us this chance to end this law? and every year contains a few political whoppers. in year is no different. five biggers according to a read reader's poll from the fact-checkers from polity fact. why would a strip club owner

give vip membership to her club? well it's a weird case of mistaken identity, twice. check out the "sideshow." and let me finish tonight with how the critics may have got ten wrong about the president. let's begin with president obama's big comeback, eugene robinson is a columnist for "washington post." howard fineman is with "the huffington post." both are msnbc political analysts. gentlemen, before we proceed, i just got one of those flash news news flashes that i have to report immediately upon getting it. congresswoman michele bachmann of minnesota has been named to the intelligence committee. what genius, howard, thought this was the perfect match? >> i have no comeback. i just think that that speaks for itself. >> it really does. >> okay let's go to the higher ground. let's go to the president floyd that signing ceremony. i thought it was interesting that speaker pelosi was absent. >> well, kind of interesting. >> what does that tell you, it's low profile on purpose? what would you call it?

>> maybe low profile on purpose. i mean she did it after all in the end facilitate the passage of the compromise. >> she makes the schedule. >> right she sets the schedule. >> but didn't want her -- >> and put her pedal to the metal. >> 1984 when the democrat got wiped out 49 states, remember mondale? speaker o'neill took a backsee the for a couple of months there and even though not his fault sometimes it's smart for leaders after a bad whooping to sort of step down from the profile world for a while, just smart politics. >> nancy pelosi actually was pretty invisible over the last couple of weeks. >> yeah. i think so. >> it's kind of paradox cal she insisted on keeping the role of democratic leader and nobody challenged her in the end. >> that's how she's doing it. >> but as soon as she won it, she disappeared. >> you know she's very smart, politically. whatever her role has been, ideologically, you might question, perhaps, in forcing a lot of those people in tough seats to vote for a legislation, which basically croaked them,

you might say. >> i agree. but more important than what it means about her is what it means about obama. the fact that she wasn't there, the symbolism of it today means that going forward in the next couple of years, all the action, if there's going to be any, is going to be between this sort of freelansing president now who is off on his own. >> transactional president. >> transactional president off of his base trying to deal with the republicans. >> here he is, we will look at president obama just in afternoon at that bill signing. let's watch a bit of it. let's listen. >> now, candidly speaking, there are some elements of this legislation that i don't like. there's some elements that members of my party don't like. there's some elements that republicans here today don't like. that's the nature of compromise. yielding on something that each of us cares about to move forward on what all of us care about. >> well, what's the fred rogers' deal about here? why is he explaining there's such a thing as a compromise. it's like somebody in the modern

school now, now you get to use the toy for ten minutes and then junior, he gets to use it for ten minutes. it's this sort of -- it's basic training in compromise. >> look, the key phrase there in that whole thing was republicans here today, here they are. >> yeah. >> you know the old saying, keep your friends closer and your enemies closer. they're now complicit -- >> therefore? >> well, therefore, it's harder for them to wail on him. it's certainly about tax brackes in the do you like the way that he sort of mobbed them in there by saying, now that you're my partners in this we're going to are some unpleasant things to do next year. cutting taxes, that's easy. reagan used to do that. that make us popular. that puts you up on mt. rushmore. but next year we'll have to deal with i think in like long-term spending problems and you'll be my partners then, aren't. >> you i think that's his goal lere. that's his goal. i think that he's understating the extent of democratic opposition to this and

overstating to some extent republican opposition to this tax bill because it was essentially a republican bill. it was a tax cut and while know how you can tell that? by the vote last night. >> yeah, right. >> it's a republican bill. >> right. >> so it's not quite down the middle but yes it's transactional as you were saying, because the next year's action is all going to be about spending cuts. that's got to be jointly done and he'll try to trap the republicans into -- into honoring their own rhetoric on this. >> well, here he is to make the point. i tried to make a moment ago i think i made. herepse the president talking about down the road ahead, how the bill signing this afternoon may affect future developments. let's listen. >> there will be moments, i'm certain, over the next couple of years in which the holiday spirit won't be as abundant as it is today. [ laughter ] moreover, we've got to make more difficult choices ahead when it comes to tackling the deficit. in some ways, this was easier

than some of the tougher choices that we'll have to make next year. >> you know whenever you say -- i want to talk about the subjective presidency and in your reaction to this. subjectively in his heart he's a happy nan weekend. that smile that cute smile we all love on him that guy that wonderful boy smile of his that he just gave us there after he made his little crack about the holiday spirit, i haven't seen that in months. >> yeah, no. he seemed like a happy guy there. and i think, look, you know, he endorsed this compromise, negotiated, and endorsed it, got it through. he was a happy guy. and he believes the white house certainly believes that of all the potential outcomes to this tends to -- this is best for the economy of anything that was doable. it's more likely to set him up well for 2012. and you know that distance that he's established with the least. >> don't you see alice schwartz is there from the philadelphia suburbs. what an interesting group -- that's the first time that she's

stood next to mcconnell any happy occasion. here's charles kraut hammer a man of the right saying nice things about president obama who having pulled off this compromise, if barack obama wins re-election in 2012 as most not likely not. mr. krauthammer writes. obama is back holding no high cards. he not only managed to resurface suddenly not just as a player but his orchestrator, dealmaker and central actor in a high $1 trillion drama. now, to charles krauthammer unlike most columnists takes two days to write a couple. mr. pulitzer prize winner here. may lack the gift. two days from 1,500 words down to 750. those words were carefully chosen by charles krauthammer. he's anointing man of the center left and a man of the not have a yeah i'm not sure that that's

something nat white house ultimately wants the comfort from. >> from charles krauthammer. >> it's an odd moment where you have two flames a row that charles kraut hammer, he's a very smart guy. first -- >> honest -- guy too. >> honest guy. first he blessed the tax deal last week and anoints obama to be re-elected. i thought so fascinating that that got so much attention and the white house was even in the position of taking note of that guy. >> you notice that the president's left-handed. >> yes. >> bill clinton was left-handed, what does it tell you. >> they're creative. >> it tell me absolutely nothing. what does it tell you? >> that you want to be on the other side of him at lunch so you don't bump -- >> look at that smile. dollar's that happy smile. look at this joe biden there, max baucus the finance committee chairman who still chairman. interesting there. there is jack there the budget director, old pal of mine, current pal as well. interesting. >> if you're a president, you want to sign something and you want to sign something, you want to have bipartisan support and

if you're forced into it especially and you can tell your left wing that you were forced into it you love to give the country $850 billion worth of tax cuts. >> and? >> and you're worried about spending cuts after christmas. >> and after new year's. >> and if this weekend you get don't ask, don't tell. >> yes. >> then you know left wing. >> which got probably if they punched around this through christmas. >> not only that. >> right, isn't that fair. >> organizing for america, which is the president's off the limit -- off the white house organizing group has been working the don't ask, don't tell issue very, very hard. >> what's in group called. >> organize inning for america. >> that guy wrote in "washington post" said the president is not using that group enough. >> successor to his campaign. >> i know. >> my point is he disappointed his left wing of his own party on the taxes here. he's going to give something on the cultural front if he can which is the repeal of don't ask, don't tell. my point is the president's own

political organization is working on this very hard. they were silent on the tax bill. >> suppose -- >> but they're working very hard on this. >> super-man movies roll back history in time for 24 hours. >> super-man flies. >> exactly the point. >> if the left, the progressive left, would they -- had he said, i'm with you guys, had he gone right to the mat with them, right through christmas and new years, no tax cut, the taxes' going up next january, no dadt, no new s.t.a.r.t., no dream act, would they have said hooray or would they have blamed him for that? that's my question about critics per se. are they always critical? >> a lot of them. >> yeah. >> a lot of them. >> no matter what do you? >> some of them would have -- >> said that was good. >> of what i think would had been a pure victory but the time to go to the mat was before the election, frankly. >> nobody in the -- >> he didn't do many months. one other thing, chris is this, lots of signs that the economy is in fact improving now. >> that's some good news. >> on the top level not for the

unemployed that the point. and the fact that -- >> when are the $2 trillion getting spent by corporate america that they're sitting on right now there is. >> that's why the president was talking to the ceos at the blair house the other day. they needed this, the white house wanted and needed this bill, so as not to get in the way of whatever movement that's going to. >> i remember that the other morning on "morning joe" said the best meeting with business people that there's been in two years now. the second honeyknow. >> it's a pretty low bar because not any good ones until. >> you okay, grinch. thank you. anyway, thank you, howard fineman. trying to put the fine point. there eugene robinson. gentlemen, have a nice holiday. coming up it turns out that the repeal of don't ask, don't tell could become reality. after all -- who would have believed this one was going to happen? all of those three new republican senators have seen the light. sometimes debate matters. sometimes you have relatives, friends turn out to be gay. you're looking out for people that you never thought that you'd look out for. i think that human development's going on here on this issue of dadt. the one thing in my life they

have seen change their minds on for open service, people are changing their minds. anyway that gives the democrats the 60 votes that they need. it's another big victory for the president, if it happens, and it looks like it will. you're watching "hardball" only on msnbc. ♪ ♪ ♪ [ crowd groans ] ♪ [ crowd cheering ] [ male announcer ] at&t, the nation's fastest mobile broadband network. period. the plan we worked on for your retirement makes sense. just stay on track. what is... that's the guidance you get from fidelity. thanks.

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welcome back to "hardball." after 15 republicans helped house democrats pass the repeal of don't ask, don't tell this week the senate appears to have the 60 votes now necessary to end that 17-year-old ban on open service by gays in the u.s. military. a senate vote is expected this saturday, that's tomorrow, is this finally going to get done? with us now democratic senator kirsten gillibrand. we are so lucky to have one of the real stars of the united states senate from the empire state herself. senator gillibrand, it's so great to have you on, on an issue, which i think, is going to make you happy. is this going to be history that you'll be part of this weekend? >> definitely. i am so excited about this vote. because fundamentally, chris, this is one of the most corr corrosive policies as a government. it fundamentally undermines our integrity as armed service and as a nation it really goes to the heart of who we are, because in this policy, we've lost 13,000 personnel, we've lost more than 10% of our foreign language speakiers and lost more than 00 in mission critical areas that we cannot easy asly

replace. so these are the men and women that we need and we need all of our best and brightest fight below we have two wars and we have terrorism you know all around. and this is something that we really need to repeal. >> speaking of best of brothers you have about four republicans joining you now all at the last minute. the two senators up on maine. susan collins, olympia snowe. lisa murkowski who just won that write-in race. turn something into a bipartisan push and i'm also hearing this rumor i love it if you could tell me it's true, the word's out that once this comes to a vote and you pass the 60 mark for getting it to a vote you know getting cloture and then you'll have a lot of republicans jump on the bandwagon at the last. >> that would be fantastic. i'd be delighted to welcome all of those republicans to be among those who believe this is a corrosive policy that has to be repealed. i think it's just a generational issue, chris. i think over time people's views have changed and people realize now that this is also about military readiness. that fundamentally we need all of these men and women serving

because we've lost so many and think of the countless number of people who haven't joined the services because of this policy. so i think there's a lot of issues at play here. and from my part i also think that it's the civil rights marm of our generation. it's truly about equality about civil rights and equal rights. and these men and women they want nothing but to serve this country and literally being to hold they can't based on who they love and that's not with we are as americans. >> let's take a lock what the senator john mccain back in 2006 on the "hardball" college tour. a golden oldie speaking of age differences. let's listen. >> the day that the leadership of the military comes to me and says, senator, we ought to change the policy then i think we ought to consider seriously changing it. because those leaders in the military are the ones we give the responsibility to. >> well that may not sound familiar but he actually did say that, senator. he said if the military high-brass thought had changed he'd be with them.

he since demured on that. something that you've been involved with with senator schumer. the first responders' health issue. what is the health crisis facing people bhorp involved in dealing with the initial horror of 9/11? >> well, as you remember, chris, these are our first responders. these are the ones who were running up the towers when everyone was coming down. they're the ones who went to the pile day in and day out, first looking for survivors, then remains, then look the cleanup. and what happened were the toxins released from these towers were so awful and so horrific they're now dying of cancer and other terrible diseases because of the health effects of these toxins and also you have to remember the families that lived at ground zero. a lot of the children who are most vulnerable, they're experiencing asthma and other lung ailments and so we really need to make sure that they have the health care that they need. >> well, what's going to happen? you've got about a few days left of this session. is it going to get done? >> it is going to get done. we're going to have a vote. it'll be an up-or-down vote just on the 9/11 health bill and i think that we'll have the republicans' support that we

need now to pass that bill. what i'm looking for, chris, is a christmas miracle and i really believe that people of goodwill can come together and really stand behind. >> merry christmas to you. >> merry christmas to you. >> and to everybody in the empire state. let's turn now to u.s. congressman gerad polis. a democrat from colorado. congressman, thank you very much for joining us. and people tell me that you're the first openly gay person who's actually been elected as such. you didn't come out afterwards. let me ask you about this whole question of dealing with this issue open service. are we going to get there? >> you know, we absolutely. we should have gotten there 20 years ago. i mean this issue is going to meet with a collective sigh when it's done. the public, the military, they've so moved past this. we're fighting the battles of 20 years ago here. it's time to pass this and move on. >> what do you think it's going to be implementation? look i want this to happen. i'm allowed to have an opinion on this program and i'm for it. i am concerned about the differences that it's going to create.

you don't have to get weird about it but ask them how they will deal with sexual attraction in the military when you have nen close quarters, women in close quarters. used to separate by gender, barracks and all of that stuff. any need for any further rules or just common sense or what? >> nonissue. look i mean we have gays and lesbians living in college dormit ors today. oh gosh, om my what will they do? and firefighters, police forces. >> sure. >> look we have strict rules of behavior. the military members undertake, same sex, opposite sex, around harassment, around fraternization. those rules all hold. all-important rules to have what people do and their conduct is but it's simply a nonissue for this generation. >> well, it is i agree with you and you're a young guy but it's a nonissue. we look at these polls, study them intently here and generally 70% of those serving for military want this changed. all for it. don't see a problem in it. but the guy in the fighting units of the marines and the fighting units of the army, that's where you get that pushback. what do you make of that? boots 50/50. >> yeah part of the reason that

that poll was done so well by the military this research project is not only do they ask what do you think, would you be worried about serving someone when who is gay and are you serving with someone who are gay? many thought they were and didn't have a problem with it. the problems are hiypothetical, they're not real. >> were you surprised by this statement in the polling? i found it wonderful in a way because it showed it's not the caricature people older generation people. 5 out of 6 people serving gay in the military even if they're allowed to come out, if you will, to use the common term, able to serve openly as gay people they wouldn't make that statement in effect. go in effect the way that it is now but voluntarily. they wouldn't make an issue or a statement about their ident snight who goes around making a statement. i mean you don't wear a sign that says you're gay or you're straight everywhere but if it comes up with your friends, your partner happens to be the same sex or the opposite sex, they kind of figure out whether you're gay or not but it's not something that you go in declaring. that's certainly a strange way of looking at it, i certainly

zmooebt you're so cool. jared polis, thank you for joining us. you're so casual about this. sir, i salute you. thank you very much for your service. up next, what did newt gingrich do to win himself a lifetime membership at a dallas strip club? okay i will admit it was a mistake and although he deserves credit for in mistake. check out the "sideshow" next. you're watching "hardball" only on msnbc. if you live for performance, upgrade to castrol edge advanced synthetic oil. with eight times better wear protection than mobil 1. castrol edge. it's more than just oil. it's liquid engineering. oh, my gosh. oh, my gosh. ♪

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back to "hardball." now to the "sideshow." first, what's the zipper club? well, here's a hint. bill clinton and larry king are both members but don't get the idea or the wrong idea. listen to this unscripted exchange from last night's final edition of "larry king live." >> and i'm really glad to see you here and still up and going. >> we're both in the zipper

club. by the way you look very good last weekend in the briefing room at the white house. by the way the suits wanted me to remind you what the zipper club is, is if you have had open-heart surgery they have to zip ter up. so i thought that everyone in the world knew it but apparently. >> bill and i looked confused. >> we didn't get that. we were wondering. >> i am sure that you did. ryan, do you have any question for the president. >> i'm glad that you clarified that. >> i see what you mean. >> oh. >> oh, oh. >> well, folks, this proves that larry king live really was live. next reality bites. last night bill o'reilly needles sarah palin on her reality show appearance with tlc tabloid regular kate gosselin. watch the mama grizzly hit back at bill. >> is that presidential? you and kate gosselin in a forest, people would say you know what look, it doesn't elevate the governor, the former governor of alaska, and you would say? >> oh, i'm sorry that i'm not so hottie tottie and you know i

don't do this before i make a statement or endorse a person or i'm portray reality. >> point her, gosselin, to a cabinet position if you were in washington or anything, she wouldn't? >> what do you think? >> i'm just giving you a little jazz, governor. you know how i am. >> what i do think? i think that bill o'reilly doesn't think that palin has what it takes to run the most powerful country in the world earn he shows. finally, oops, did it again. last year newt gingrich gave his entrepreneur of the year award, which is really offered to contributors to his pact, to dallas areas don riceos. don riceos is indeed a business woman but also the owner a lodge. a topless strip club. gingrich's team said they didn't realize the nature of her business so they rescinded the award. returned her contribution and disinvited her from the awards dinner. but catch this one year later gingrich's pact sends her a membership card and once again asked her for a political donation. in the show of goodwill she responded by sending a new vip

membership to her strip club and now for tonight's big number, congressman patrick kennedy's retirement. next month will be the end of a huge era in american politics. how long has a member of the kennedy family been in federal office? 63 years, as long as i can remember. 63 years of history leave washington with patrick kennedy. tonight's incredible "big number." up next the five biggest political whoppers of 2010. this is going to be great fun i think except those who committed them as we countdown the biggest ones of the year. you're watching "hardball" only on msnbc. don't forget mrs. collier.

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i'm milissa rehberger. officials in pakistan say three u.s. missile strikes have killed at least 54 suspected

militants along its border with afghanistan this as the cia was forced to recall its top spy in pakistan after his identity was reveal police department a lawsuit over alleged civilian casualties. meanwhile, the house has approved another $160 billion for the wars in iraq and afghanistan. the funding bill also extends restrictions on closing down the detention facility at guantanamo bay. the pentagon is denying accusations that it is mistreating the main suspect in the wikileaks saga by keeping him in consolitary confinement for 23 hours a day. many victims of bernie madoff's fraud scheme will getast least half of their money back after a weddly widow agreed to return more than $7 billion her husband, quote, earned as a madoff client. and only stout-hearted tourists were on hand. as rome endured some unusually cold winter weather. back to "hardball."

welcome back to "hardball." election year's always guarantee a good dose of political fudging, i'm using a nice word here, and 2010 was no exception. politifact conducted a reader's poll of the top examples of the year and tonight we bring you the biggest whoppers in the world of politics in 2010. it ain't going to be pretty. joining me on this fun exercise, for some, like us, is former san francisco mayor willie brown and political analyst ron reagan. ron, you're smiling. i'm reading your book. all i can say is, wow. >> oh, well, thank you. >> when that book comes out, wow. it's finally written. it's going to stagger people. anyway, let's go. the fifth biggest whopper of the year, charlie rangel's claim that the house ethics committee report cleared him of wrongdoing. the report itself did on the day report came out in february, he defiantly said quote, i'm glad of the wording of it because it

clearly exonerates me. ron reagan? >> well, we all know charlie, you've got to feel kind of sorry for him but he got caught with his hand in the cookie jar and just dancing as fast as he can to try to put a good spin on it but if we're going to reward that kind of lying we ought to mention john ensign's parrots as honorable mention claiming that they gave $90,000 to his mistress out of goodness of their hearts not to keep them quiet you understand. >> i like the way that you do this, ron. soap you switch to a republican. you don't. let's go to mayor brown. mayor brown, speaker brown. i know, charlie is very lovable and very likable but his spin on this thing is world class, that's all that i can say. your thoughts. >> well i think that he genuinely believes it. he still believes it today. if you notice that when he was finally convicted, when he was finally sensored, he said i'm very pleased with what you've done. i believe i'm innocent. he did not in any way apologize. so he believes it. and frankly, when it comes line

you have to separate the person who's uttering the words, if they really believe it they have a problem. >> i agree with his argument. it should had been a reprimand by the way and i do believe something that was said by chaka fattah here other day the congressman from philly you don't want to be judged by a jury of politicians from a hot political season because every one of them will vote to condemn. that's the way it goes. take a look at this next one the fourth biggest whoer of the year, a frequently circulated conservative talking point, the democrats were going to raise taxes on small business poerns republican congressman randy nucy bauer claimed that 94% of small business will face higher taxes under the democrats' plan this year to limit the tax -- even the tax cuts to $250,000 a year. mayor brown, 94% of small businesses are going to get whacked because the democrats want to limit the additional marginal tax cut to the people who make under $250,000. >> well, that's just an out and out lie. and the man who uttered those words knows it's an out and out

lie but that's not unusual. for those of us who are politicians, we regularly say what we need to say in a situation in order to -- that's just standard politics. >> spoken as a true ex-office holder. ron, you take this one. here is governor-electric scott. he clearly believes in the stimulus and we know that the stimulus has not created one private sector job. there's his statement. rick scott's ridiculous charge about the stimulus bill that he made during his campaign against alex sync. let's listen to him do it here. >> she clearly believes in the stimulus has not been created. >> now had is one real big mistake i think that voters nadyear. mayor brown. i really think a mistake was made by the voters of florida. and i rarely say that, i think that they're disserting. they've generally made smart decisi decisions. here's one. not a single job, we spend a

trillion dollars in stimulus. 1/3 of it cuts tax cuts. and doesn't create a single job, that's his claim. >> go ahead, mayor. i'm sorry. >> he's just out and out wrong. as a matter of fact, i suspect that even his wife probably told him, you can't say that. just think, at goldman sachs they created jobs with that money. at the auto industry they created jobs with that money. so don't say it didn't happen. you can say democrats didn't do enough or they're not -- or they shouldn't get any benefit from it but one job, are you are kidding me? >> well, rick scott is such a trust worthy guy that wasn't it his health care firm that was find over $100 million for defrauding medicare? so this guy you can take what he says to the bank, i'm sure. >> that'll get you elected governor of florida. >> yeah, apparently. >> my hero and heroine michele bachmann who has named today by the way to the intelligence committee, there's a whopper.

this is the second biggest whopper of the year. predlike wildfire across the conservative tv and radio. president obama's trip to india cost $200 million a day. and the false rumor was picked up and repeated by none other than republican congresswoman michele bachmann. let's listen. >> the president of the united states will be taking a trip over to india that is expected to cost the taxpayers $200 million a day. >> you know you know where they got that, mayor? let's go with ron on this one. you know, they got that from some local indian newspaper. and of course they wanted to believe it so they tran like it was truth. apparently a president does cost money to travel about $5 million a day if you throw in secret service, security, everything on the ground. they did estimate based on clinton's trips and others but they've just come up with $200 million a day. >> based on nothing, as you said, some paper in india throws this figure out there with no atbution whatsoever. and the republican party picks it up and begins to run with it and suddenly it's all over the internet and there are people

who believe this nonsense. it's incredible. >> yeah you know why, i've suggested that michele bachmann does sort of represent sometimes the behavior of a zombie that she does seem somewhat like she's hypnotized. i'm serious. but this is serious business. why doesn't she just mimic something that someone puts in front of her and states it as a fact, mayor? can't she do any sort of discernment? >> you're making an assumption that people who got elected to public office in all cases are people who can think, people who pursue and reduce themselves for sure to qualify for the information. she is not in that category. the voters elected her. and the voters deserve herpidiocacy. >> do you than you're talking about a member of the house intelligence committee, sir? do you know who are addressing here? >> it's a reality. she clearly believes $200 million and if she believes $200 million that doesn't have to be

a factual foundation. shoots just how out to lunch she really is. >> i know she spends a lot of time going through the newspaper acts for the latest news from the indian press, too, i'm sure. >> yeah. >> that's a regular source of information. she reads third world reporters. >> we laugh about her being on the intelligence committee but that's an important sort of post. it's actually a little disturbing that she'll have access to you know to top secret cables and things. she's a loon. >> let's not escalate this. >> she may not be able to find the meeting room. >> anyway, it's guessing worse here i will change the subject. go to politifacts' biggest whopper as they see it. drumroll please. rim shot. the american's attack line the republicans' attack line that the democrats' health care reform was a government takeover. here is a greatest hits lift penn let's listen to this one. >> pushing through a massive government takeover of our health care system was certainly not a good idea. >> this isn't reform, this is government takeover. in is about control. >> all we need is enough

democrats in the house of representatives to do the right thing for the american people and they can be spared this big government takeover of 1/6 of our economy. >> this is not the president's house. this is not the democrats' house. this is the people's house and the american people don't want a government takeover of health care. >> listen, the american people are concerned about the government takeover of health care. >> i want to go and expose to the american people how egregious this government takeover of health care is. >> are we watching a woody allen movie here? the keyword here is government takeover, mayor, the keyword here. do they get all of their talking froints frank luntz. some guy down in the beach in santa monica is knocking out terminology. the lingo in these people. they're recited. don't they know that they sound like parrots? just a thought. >> frank luntz is basically a genius on words. and what he was paid to put these words together, he

deserves literally whatever he was paid because every single solitary republican bought it. not only did they buy it, they sold it to the american people. and the way they got away with selling it to the american people, they were not the clear, outside, uninterested with no agenda to push voice saying, wait a minute. it's a lie. whenever these republicans were interviewed, they got away. because nobody said, what do you mean, takeover? define that word for me. walk through with me. >> i know. >> are you talking about a coupe? something that happened in south america, africa? come on, give it to me. not any one of them would had been able to answer and ralph luntz would had been laughing his rear rear off. >> two guys who lived off in a boat somewhere. they were liberals and used to knock off these fiery fund-raising letters. it's like luntz replaced him on -- turns. >> the guy is really a genius.

>> a government takeover. you know why don't the government get involved with medicare either? that's one of my favorites. the government runs medicare. and by the way you know who took over health care in this health care bill? the insurance companies. they're the ones getting all of the money. the requirement is you buy insurance from an insurance company. there is no public option. this is a private sector approach all of the way. anyway, i don't know. i think that it came from the heritage foundation and they're calling it socialist. anyway, thank you mayor brown, have a nice christmas, you too, ron, good luck on the book. and although i'm telling you i've read enough to know that it's going to be a major, major explosive bit of publication. a hell of a book already. >> well, thank you. >> i'm loving it. i'm stunned by it but i'll tell you anybody who doesn't read it is crazy. a hell of a book coming up. i might data it to 100. thank you, we'll get you on to talk about it when it comes out. republicans warning nat tax cut deal with president obama violates tea party principles. is the relationship between republicans and the tea party who put them in power already on the rocks?

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it seems that change has come to the senate tonight with the death of this $1.1 trillion plan. welcome back to "hardball." that's newly elected senator mark kirk from illinois. in last night's collapse of the trillion-dollar spending bill. the bill was stuffed with earmarks by and rs. howard fineman wrote that the do more republican congress won't arrive in town until next month, but the tea party unofficially began on the hill thursday night. will the tea party and the gop clash? gentlemen, i want you to lay out for me, sharpen the issue, what's the difference between someone who cares about how government is run and someone what's inside it?

it seems to me one of the people inside it, one of their differences is they want to stay inside and they think it helps them pack their bills up with pork. >> the two are not mutually exclusive, but you're right -- and that's kind of what has happened now. and americans have finally gotten tired of it. they're finally saying no, and they're finally saying, hey, you can work inside the system if you want, provided you listen to us. and if you don't, we'll just do like they do at wrigley field and you're out of here. >> i'm older than you, but we grew up thinking that a congress person, r & d likes to write those quarterly updates. these little do dads go on the front page of their newsletters.

do i want to claim particular bennys that they brought from home? >> where politicians got the message, do not spend anymore money. and every republican up on the hill, they have a simple message, cut spending, create jobs. i think that's what the republicans are going to continue to do. >> how did the appropriate fors who have all the clout because they can decide who gets the bennies, how can you beat the appropriate fors? what changed? >> it's fascinating, no one wants to be on the appropriations committee anymore. it's actually a sea change from when you were on the hill and when i was on the hill. they got on the appropriations committee and they stayed on the appropriations committee. now they don't want to be on the appropriations committee. they have a tough time getting re-elected. it's a real sea change and i think you'll see the incorporators are going to change their tune and they're going to fine programs to cut. i think that's a good thing for the country.

>> a pennsylvania moderator all those years, for years, he got re-elected and re-elected because he was on appropriations, he was saying i did this for scranton, i did this for pittsburgh, and it didn't work this-time. >> that's the sea change that john was talking about. >> what about states like west virginia that live completely on pork. >> how many buildings in west virginia are there that are not named after the man. >> he got elected every six years. >> we must not rest, there is more madness to come and they are just waiting for us to go to sleep. we have been vigilant and we will be watching. zealotry by its nation is short lived. you guys are not getting paid. we're kitchen table people. how do you keep them involved

when they're not employed by this business of tea party work? >> there's ups and downs, and we're fixing to go into a lull, with the holidays and everybody leaving washington. we just keep them informed. i know at tea party nation, we send -- >> i know you cut a deal with this president, even though you don't like him, long-term spending cuts. it's a short segment tonight because i don't want to get in the way of my speech that i'm giving in a few minutes. i like you in that crew neck, when we return, let me finish with why president obama did the right thing when he cut this deal politically with the republicans. he's got a lot of things coming his way because of it. [ wind howling ]

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let me finish tonight with our president. some of it brutal toward him of late. they have used terrible words to describe the decision he made about the tax cuts. people that say that he sold out have it wrong. there's a difference between what the french did in world war ii and what the english did. the french sold out. they turned their country proud france into a collaborator with the third lireich. what did the british do? they pulled the greatest strategic retreat of the war. they evacuated and by doing so saved the british army to fight again. they avoided catastrophe. what did obama do?

he knew what was coming. the republicans won the senate election. their first order of business would have been to cut taxes for everyone, to take a storied credit for cutting the taxes on everyone that the democrats let go up. it was as clear as day for anyone willing to look straight ahead and see what was coming. this is what president did and made the best decision, cut the best deal he could. he got a number of democratic measures that avoided ending the decision and avoiding giving the republicans a giant hammer to use against them in 2012 and subsequent elections. today the there's a huge difference between a sellout and a strategic retreat. our president did a good thing for the country, his party and for history. his critics have a right to criticize. he, barack obama has the job to lead. as a result we have got a shot