pay-go, any time u were to increase snding or cut taxes you had to offset tha >> rose: president obamis favor of that w, isn't he? >>ut there are some conditionalitys of that. and the other one was a cap on mestic discretionarypending which couldn't risabove the rate of inflaon backed upy at the techcrats call a sequesterment meaning if you low spending to go above inflation, there's an automatic acss-the-board cut. those budget rules were straight jacket, they really worked and as someone wh served at that time, th played aig role-- not the only role but a dig one-- in produng those surpluses. that why spending unde president clton rose at0% unr the rate of george w. bush. >> rose: that's why they called you defic hawks, you and bob rubin and others. so now these two last questions. number one, and then george bush comes innd he s the surplus. he also got a... 2001 andlater afghanistan and thenater iraq and all those unexpected expenditur and other thins and ent... had a huge spending program. and redud taxes. >>es. >> rose: ending up wi a huge deficit. >> biggest fiscal swing in the h

kill this proposal that obamis pressing and sta over?" >> well, n in fact. >> not exactly. >> moyers: you're hesitating. >> i'm hesitating,ecause i don't think he's graspedhe nett. and i don't think thatven the best othe proposals th he is considering e going to be effective. ani worry about even the public oion, because... >> moyers: you've be skeptical of t public option. >> i'm skeptical of that, beuse the power of the surance industry is so great that i believe that th would use their clout in coness to hobble the public tion in some y. and ha it become a dumping ground for the sicke patients, anthen cream off the profitablenes for themselves. and then what peop would decide is that theublic option was no good. that the plic couldn't do any...he government couldn't do anything righ and that wou be the wrong lesson to dwl on. >> that's what some peopleear will hapn to medicare. that it wille privatized in some way, to deal wi... >> well, part "d." moyer part "d" is... >> ... and only the siest people will remainn the medicare pool of p

afteter the rst week ofjuly 90% of decrats appre of the job obamis doing, up 1% fromhe month of only.blicans approve of obama whichis down 2%. but the biggest dp in support came from independents which fell 6%rom last month's ting. now, docrats are also beating out repubcans in party support, 49% of those rveyed identify themselves as democrats, only 40% intify as republicans. >>> new is morning the top u.s. command in afghanistan says it's going to take a lot more oops than what the obama administration has planned to withe war in afghanistan. that's aording to a report in "the washington st" toy. joining us now retire army colonel and military analy jack jacobs. colonel, another good morng to you. i know that the president plans toend about 68,000 troops to afghanistasometime this fall. already, there's conrn that's not engh. are u in agreement with that? what do you think is goingon? >> certainly not enough rtainly the diverse nature of the effort in afghistan, how local it's going to ve to be how we're ing to have concentrat forces in a wide variety of plas more or less alat the s

>> they have t president obamis talking about a cyber ar. there's an iniative going on where the spending is creasing. wean't give you what the numbers are. a lot of this is classified. but the thre is the. this is a threathat's more real tn global war on terror, weapons of mass destructio you could wipe outinancial system you could wipe o t pentagon ansteal trade secrets. we d't know necessarily when the money will be spent but it will be spen >> are u.s. compans getting these types of -- >>here a international coanies but i like to follow ones that are pure pla. the ones that alady do it, i know that have been taed, i about, the rl city these guys alreaddo this and they do high-end data mining. they determine trends. and they secure systems. that's what we want to be in. >> ax, tha you for your time >> call it the hanver effect. perhapit's no coincidence that gambling revenues ha made a comeback isin city, just as th bad boy comedy earns $200 million at the box office and the stocks are moving,oo. 'll go trading after darfor your vegas bet

but while presidenent obamis in italaly at the g-8, his domesti agenda c could be falling apapa hehere at home. hihis o party is divided over the need for a seconond stimus and crucucial cmponents of his health care propoposal. >>>>> and thee going feud btween the e speake of the hoe and the cia director boils over on the house floor.. ven members of the house intelligence committttee haveow accusethe cia ofof misading congreress for years. thcia gorously denies it. are the hous democrats justst posturg to protetect the speaker who has been hmered by republicicans fo making simimil accusationons in may?? all tis as th president threatens to veto demratic attemptso rdically change 6 60 yearof the w way the intelligence commumunity h notified congresss of covert actions. three key members joinin us thi hour.. congressman n rush hol congressn anna eshoo, and congressn pete ekstra. >>and also thihis hour, e eric cantor and jimclyburn. plplus, emttled new jersey governor jon cocorzine upor re-election. >>> good day, i'm area mitchehell live in washihington. cia direrector leon panettata rer

in many newspaps all around e country, featured a picture from italy where it appears president obamis checking out a man's rear end. which is surising because ushle only one heas to keep an eye on is joe biden. >> that's just wrg. that was so dumb, by t way. did u guys see that picture er the weekend? oh, whatever. never mind. well, just think newspapers are desperatehen they put a picturin like that. that's all i'm going to say. here with us now chief political correspondent of politico, mike allen. good to see you ismorning. well, welco back, mika thboys were very naughty while you were go. >> they were? >> they were. >> well, why don't you tell m what they d and i'll take ca of it. >> welcome back. >> good to see you. let's start with sotomayor, the hearings startg today. she testifiestoday. what i t white house' strategy as they prepare? >> mika, they want herto come acro as boring as possible. favote aunt is how she's going to come across because, johnas saying earlier, yes, s's liberal, and they don't want th to be what pele take away. so in her opening statement we'll hear a lo