>> a lot of peoplele do not think it was an autntic certificate -- >> how can you say that? >> many people do not think it was authentic. >> this week on "inside washington," money talks and tas loududly as fundraising stores to new heights. >> you can't handle the truth, my friend. quiet down. >> head, h cronies win. tales, the taxpayers lose. >> mitromney clincnches the nomination. wisconsin passed recall ballots

on its governor. in north carolina jury ends deliberations on the john edwards's' case.as >> if i want to find the person accountable for my sins, i don't have to go further than the mirror. captioned by the national captioning g institute --www.ncicap.org-- >> thank you for joining us. i am mark shields, lling in for gordon petson, who has the week of. it seems there is one sector of the economy where money is flowing like never before, from outside political oups interested in influencing this electi. politico got our attention rertinon thehe gop fund- raising goal of $1 billion. >> $1 billion just from the outside groups the chamber of commerce koch broths, various super pac's.

that is where the outer limits know no bounds at thihis point. >> money has always been the mother's milk of politics, evan thomas but is 2002 like something we've not seen before? >> i think so. i used to think thahat money was overrated that in the end it all even out. the super pac's me they get thiss unbelievable amount of money and there has always been at negative advertising, but now there will be a tidal wave of negative advertising. the other thing is that wall street's- they have always been a big donors, but now they are giant donors and they and getting to the point where it they basically it own congress. >> nina totenberg? >> in many ways, the is a for sale sign on the u.s. government.

there are so many loopholes that allow so-called issue groups to spend money and nobody is accountable. it often comes in at the last moment to defeat people. i think it is a kindnd of scary thing for a democracycy. >> colby, from 1976 to 2008 every campaign was essentially controlled by the candite who would abide by limitations on what he could spend an rac. president obama in 2008 blew by that traditional and historical barrier and rode into uncharted territory. he said was raised $1 billion, republicans areoing to raise $1 billion. what is the consequence? >> you are right that money is the lifeblblood of politics, but it can also haveve a corrosive effect on politics. evan mentioned the negative ads ththat are going to be run. we havave already seen some of

them in the washington area. the net effect will be not only to turn off people,ut to have an impact on voter turnout.t. where the money is being used is not enhance the reputation of any of these candidates. >> do we lose a sense of accountability charles when the caidates no longecontrol the narrative of the campaign? >> i think all this lamentntining is a little overblown. sie you insist on starting the showy ignoring the bad on plan members and talking about the two-year-old story -- ignoring the bad unemployment numbers and talking about the 200-year-old story about money in politics with a clever references about the koch brothers, what wee have is an even playing field. obama will raise $1 billion, the republicans s will raise $1 billion. let's get it on. it is an even match.

>> it is the outside stuff, the unaccountable stuff almost seismic activity because the kennedy does not have to takake responsibility for it. -- candidate does not ha to take respoponsibility for it. he can even denounce it, but it is still out there. >> the fact is that it depresses turnout. we have always seen in negative ads, but we will see that on a skill we never have afforded -- on a scale we never have bore. true believers will be excited but the disappearing middle does appear a little bit. >> would you call the days the ad run against barry goldwater in negative ad? >> i sure would, and lbj took the rap for it. >> and he wo in a landslide. >> willie horton worked --

>> so o what is new here? >> what is new here is this -- we have anonymous donors. we don't know who is giving the money, we don't know who told accountable. it is one thing to buy the negative ads. it is another when they are anonyus. >> i would submit that one of ththe reasons that mitt romney appeared with nald trump a controversial and discreted public figure in most eyes, was because of the $2 million. that was the price you pay. the d democrats associating with gibill maher, same thing, on hbo. >> congressman is spent lunchtimes going to some run little rundown -- not just by inflation increases, t she met her increases every time.

-- geometric increases ever time. the fact again, is that wall street has tremendous power -- they have more power than ever. >> in the last election cycle wall street went to obama. i did not hear a l lot of whalining here over that. now that wall street is disgusted with obama because of the way he trashes business, all of a sudden is a big issue. there is a huge amount of leprosy. -- hypocrisy. >> it is notot -- >> of course it is. >> there are people, me included, who criticized obama for jumping out of limits. but every time somebody give money to him, knew who it was. we don't know that now.

>> governor romney's plan for america right now is the same one he sold to the people of massachusetts in 2002, less government better business less taxes. the result is the oppite -- more fees, less busess, bigger debt in boston. >> that is an excerpt from the obama caaign's latest assault on mitt romney. governor romney it countered with a tax on the white house's involvement with loann guarantees on the solyndra energy company. >> at this point, ideas of feeling out process. they are trying -- it is a feeling out process pitt they are trying to figure out what works. i don't know what they will be talking about in august -- >> they will be talkingng about what they are talking today, the

unemployment numbers, the creation of jobs. if it continues to slow down, obama will be in more serious trouble. he is alrlready in trouble. he will be in a more serious trouble. >> i want to emphasize t all of our listeners, particularly one of our panelists, that the unemployment rate came out 69,000 jobs created, far below what was needed or eve expecteded. unemployment rose to 8.2%, which i don't think is good news for the obama team. >> no, this really devastating. for the third year in a row they have been talking about the summer recovery. part of the reason there was the uptick in the winter is that the weather was good and it still jobs in b business from the spring and summer and de it look artificially good early. now dating are suffering the consequences. the market at a bad reaction to those numbers. the slowdown in china --

>> slow down all over the world. >> clementi hanging over you. the spanish banks are bankrupt. -- calamit hanging over europe. the spanish banks are bankrupt. >> it is all the bogus and negative argument, because i guess both sides blaming each othe because neither side wants to talk about the only way outt of this, which is a messy tricky complicated short-term stimulus and long-term austerity, some kind of blend of that. nobody wants to be honest about that -- >> what is the ryan plan? >> when you look at thehe employment numbers - -- >> what is the ryan plan? >> it tells you how the business communitity, to this situation. it is right to say that there

is a great deal of uncertainty. the uncertainty is in the united states. if you are running a large business or the small business you let second thoughts about how much you will invest as well when you don'tt know the outcome of the serious issues -- the deficit or even such a thing as raising the debt limit. who wants to invest in that kind of climate? >> to answer the question charles said about the ryan plan the ryan plan n does do some irresponsible stuff on entitlements -- some responsible stuff on entitlements, but it is a hopeless plan because there are no tax increases. no reasonable economist has said that you can get away with cutttting taxes. you have to somehow raise revenues, we cannot get out of this fix. you need people to spend money to aid people don't spend momoney unless an they feel well to the confidedence -- the state

bank feel relatively confident -- unless theyy will have a confident. of course businesses aren' not going to invest. they don't have people buying their stuff at the moment. >> where has austerity worked? what is the laboratory -- where has it worked politically? >> it worked in germany which 10 years ago, began austerity began renegotiating contracts with unions, had cut back in wages, and as a rest has weathered the recession the best. the immediate austerity in europe is hopeless. you guys are talking about stimulus. the cbo c came out with the numbers this week talking about the obama stimulus, $830 billion. do you know how much it estimates was spent per job created? the best estimate is half a

million n dollars, the worst come in the cbo, -- >> charles -- >> the average -- >> those people don't have jobs. >> growth versus bostick is a falslse dichotomy. everybody -- growth at versus austerity isis a false dichotomy. everybody serious knows that it has to be short-term stimulus married with credible -- >> empirical evidence e on the stimulus we just attempted. it cost an average of $2.3 million per jobob. you know what you should do with that money? send a check to the unemployed for million and invest the other in lowering of taxes. >> let's go b back to the problem we're facing with the debt crisis in the developing world.

the prescription of austerity in the sense that you have to get control of your budget and do more investment in the private sector. that word. why did it work? the developed countries industrialized countries, had the leverage to say that if you don't, you don't get more loans or investments. that is what is misissing in the industrialized countries themselves. who has got levererage on us?

>> i have bad news for tom barrett but good news for wisconsin. as it turns out wisconsin actually gained -- that's right, and gained -- 20,000 new jobs

during my fit year in office. >> that is wisconsin gov. scott walker making thease that he should keep his job in the tuesday recall election. most polls show him with a very slim lead over milwaukukee mayor tom barrett, a democrat, in a ate known for midwestern nice. this campaign has been anything t. what is this and it begins of thisight in 2012, chaes krauthammer -- what is the significance of this fightht in 2012, charles krauthammer? >> some people think iwill have an fect on the presidential. i am not sure, but it will surely have an effect o on the state of unions in america. this is the big one. this is the third shot that unions have taken at walker over the change and the clickin -- change in the collective baaiaining agreements. the democrats failed in the first two, and is the last one. if the unions of this, this will be a huge setback.

-- if the unions lose, this will be a huge setback. up in some of the local public sector unions, half of that membership has disappeared. >> thais why u.s. had a huge influx of conservative money -- >> no union money? >> yes, union money but -- >> interesting, obama himself has not shown up. obama a is worried about losing -- >> they have not put in the town ofof moneyou would have expected. feeling very put out democrats in wisconsin i am not sure that what the efeffect will be beyond wisconsin. gov. kasich in ohio took it will chop on his proposal and he lost. >> ohio has a straight up or

down vote on t referendum. this is recalling the governor. this is six-one, the walalker folks outspending the democrats on this one. the division, the intensity, the passion in wisconsin is likeke nothing people of scene. -- have seen. -->> when you come down to a question of recalling a pular politician, this is 8 was thought the issue. it is not a national issue. passions are inflamed there over something very personal. also the impact that this governor has had on the lives o of people in the state because of his policies. very much wisconsin-centered, not nional. >> but there is huge national issue, and tt is public employee pensions.

over the decades because of uneven bargaining power, republicanans -- the public employee unions, which have been growing wewell entiwhile enrollnt is shrinking, have gotten these sweet peion deals that the states cannot afford. all over the country, the political system has to find a way to step back or it will mean no money for education, no money for the fire department, no money for anybody -- >> each state will handle it differently. >> abolishing collective bargaining? >> i think walker white a bea -- walker went a beat too far. >> obama will be in minneapolis and then in chicago with a few days leading up to this primary. he i not landing in wisconsin. he does not want to be associated with the possible huge embarrassing loss.

>> the democrats have one great circuit, former president bill clinton. this country was built by working people. the economy needs manufacturing. machines, tools people making stuff. companies have to invest in making things. infrastructure construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energygy. we need to get the wheels turning. i'm proud of that. making real things... for

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help u.s. athletes make a difference. together ery step of the way. >> i do not believe in anything illegal -- believe i didid anything illegal. i did an awful lot was wrong. there was no one who is responsible for my -- one se responsible for my sins. >> that is former senator john edwards, accused of using money from his presidential campaign to conceal his extramararital affair the judge declared a mistrial. e verdict on john edwards came in long time a ago. >> it did, bubut i don't know anybody in the legal community conservative or liberal, who thought that this was a good case or unique use of the law.

it was started in the bush administration by an ambitious u.s. attorney who did not get rain i in, and then the obama administration did not have the you know what to say no, we will not go forward with this. it wasted a lot of the gernment's money. >> charles? >> yes, i think nina is 100% right. >> whoo! >> i am equalllly shocked. there is this distinction between bad behavior anillegal behavior. humans want to see peoe punished for sin. there ought to be a distinction between the sinful and the criminal and this should be the line to draw. it was not criminal behavior. it is a goodng he will not go to jail for this, but he certainly will suffer. >> old-fashioned public shaming. this is the way we do it in our

modern litigious society. this is like putting john edwards in the stocks. he truthfully set -- i thought he did a good job of saying i just need to look in the mirror. > colby, his parents, of modest origins, were so proud of him. all he has t to do is look at his father, his heart broken father, standing behind him in that scene. >> johnn edwards' future rests not on his words but on his deeds. nothing he says can change anything. what he does will possibly have some impact. >> the defense minister in britain in the early 1 1960's, terrle sex scandal, and he was completely ruined. then he became a socl worker. he quietly did that for the rest of his life, and the queen gave

him an obe the end of its life in recognition of the good he had died it is possle. >> after the haitian earthquake he went down and nobody knew that. he went to the floor and worked. >> sounds good. tune in again next week. gordon peterson will be back for "inside washington."