re-elected, and enact the romney economic plan. which the republicans in the house are proposing. >> are you getting any feedback from the senate republicans, the president is going to have dinner with them again this week, that this will create the possibility of a deal? >> good conversations with them. the white house has been in contact with a lot of those folks, lot of senate republicans, there's an opening there. is it going to be easy? absolutely not. a possibility. it's going to require both sides to compromise. >> what are the odds that there's a deal this year? >> based on my bracket, i don't think i should be in the prediction business. if the republicans particularly in the house, take my way or the highway approach, we're not going to get a deal. >> you're going to have a lot of resistant from democrats and republicans including bernie sanders, he was taking a lot of exceptions. here's his tweet, he said two-thirds of seniors rely on social security for more than half of their income. and we're seeing this problem with the longtime unemployed. they're going to be facing a real squeeze in the next several years, and this will be an additional significant cut. >> a couple of things. one, sanders is a passionate advocate and has been a big supporter of the president. the cpi is something that the president will only change on two conditions, something that speaker boehner and mcconnell asked for on two conditions, one, that it's part of a balanced package. and two, that it has protections for the most vulnerable, including the oldest seniors >> some carveouts there. >> absolutely. look, this is a compromise. some folks on both sides aren't happy. >> this could be a decisive week on gun legislation. already clear that the ban on assault weapons isn't going to get through and the ban on clips is in trouble as well. you have been struggling to come up with a compromise on background checks? it seems like the president's friend, senator tom coburn is no longer part of the compromise, is that true? >> no. they're still talking. folks are still talking. but let's talk -- >> do you think that you're going to get a deal? >> if he was willing to compromise, yes. what the president wants is, to sign a strong, bipartisan bill that has enforceable background checks. some senate republicans are insisting on a filibuster. they're insisting on trying to make it harder to get 60 votes. if you remember during the state of the union, the families of newtown in audience, every member of congress stood up and applauded when the president called for a vote. now, they want to make it harder and filibuster it. we can't have it. >> lot of democrats, though, against the assault weapons ban. and another provisions as well. you talked about enforceable background checks, the issue is recordkeeping. whether records should be kept. the president wants a bill that record records guns sold at stores. the president wants to expand it to gun show. and paper record between private people. >> i'm not going to negotiate the bill right here with you, george. he'll be working with both sides to try to get the strongest bill we can, to ensure that you're going to get a background check. whether you buy it at a gun store or gun show. >> would he sign a bill that wouldn't include that? >> i'm not going to make any predictions here. but we're going to try to get the strokest bill we can. this is a 90% issue here. you can't get 90% of americans to agree on the weather. >> it has been difficult right now, and a lot of gun control advocates are worried that you're waving the white flag when you're saying that the president is going to sign the strongest bill he can. >> the president is trying to make progress here. he's going to push very hard. this is the right thing to do. this is nothing inconsistent between being a strong supporter of the second amendment. and wanting a strong -- these measures like universal background checks. >> wouldn't it be a failure that in the end a bill come to the president that didn't include universal background checks, didn't include a large ammunition magazines? >> it's going to be disappointing to american people. there's absolutely no question about that. the president was in denver last week, meeting with some of the families who were victims in the aurora shooting of last year. and people in the country will not understand why congress would turn its back on a 95% issue. >> the president might sign the bill anyway? >> the president, let's focus on getting the best bill. before you go, let's talk about north korea, how worried is the president, we have seen this escalation of threats and counterthreats. the president and the pentagon have moved assets into the region. how worried is the president? >> this is a concerning situation of concern. this is a pattern of behavior that we have seen from north koreans many times. >> but not from kim jong-un. >> but from north koreans for many years. provocative actions and rhetoric. the key is, for north koreans to stop their actions. and meet their national obligations and put themselves in a position to achieve what is their stated goal, which is economic development. >> does the president believe that kim jong-un is calling the shots here and acting rational? >> he believes that north korea needs to stop the actions. we have to protect our allies and homeland. the real focus is to do the right thing. >> possible missile test within days will shay shoot it down? >> i'm not going to get into hypotheticals here. we have seen reports about north koreans moving missiles in, and we wouldn't be surprised if they did a test. as i said, this has been going on for many, many years. >> it wouldn't provoke a military response? >> i'm not going to make any predictions here on sunday, george. it wouldn't be surprise, no. >> dan pfeiffer, thanks very much. >> thank you. the roundtable to talk about north korea is right here. as they take their seats, take a look at martha raddatz on the north korean border with american commander james thurman. an unpredictable and inexperienced dictator. >> what do you think the likelihood is that kim jong-un will act against south korea? >> i don't think we know his true intentions. because he's kind of reckless right now. if they decided to resume hostilities, i think we got to be ready to go. if you ask every one of these soldiers out here tonight, it's about fighting tonight. and that's not a bumper sticker. we got to be able to do that. >> and martha joins us now. welcome back. along with george will, greta van susteren from fox news and david sanger of the "new york times". martha, let me begin with you. you're just back from north korea. we heard the general right there, said they're ready to respond, do they they'll have to? >> i don't think they want to respond. i think they're trying to talk south koreans out of responding if one of those missiles is launched and falls in the water. the biggest fear of the united states right now is that south korea will respond in some way, that they'll be provoked to respond. >> won't south korea have to try to shoot it down? >> not if it goes in the water. that's a perfectly good strategy for kim jong-un, he can say it was just going in the water. we were testing missiles. south korea responded to that without any danger coming their way. they would be the ones accused. >> the best outcome would be a failure of north korea. david, you have a piece coming out in the "new york times" how the u.s. can calibrate their response, there's a plan for all-out war. but it's tricky figuring out how to step-up possible to step-up possible responses. >> 5027 is a very old plan. it's been around for 60 years. it's been updated and updated. so, what we have seen over the years from the north koreans have been provocations like the sinking of a south korean ship three years ago that killed about 46 sailors, the shelling of lightly populated island. i think the big question right now, with the very untested new north korean leader, what do you do when something happens? but as martha points out, a big fear whether the south koreans could go too far. >> and it does seem -- the united states does seem to take some steps to ratchet things down. after putting a destroyer in the region and missile defenses. >> sending that b-2 from missouri. >> they're stopping missile tests. unrelated. i think you'll see in the coming days more defensive measures. the defense secretary may announce more defensive measures. >> the big problem is, no one knows much about kim jong-un. >> when donald rumsfeld was secretary of defense, he had in his pentagon office, on a table under glass, a satellite photograph taken at night of the korean peninsula, it's ablaze of light. right up to the 38th parallel. then it's dark. those two things, first primitive country. can't even have electricity and metaphorically it's dark. we have no idea of what's going on. deterrence determines on a threshold of rationality and the lives of your own citizens. which his regime shows precious little of. >> greta, you're one of the few americans who have been inside north korea. this is a population that's always on war footing. >> absolutely. the whole time we were there, all we saw preparation for war. we tend to look at north korea, as americans, from our viewpoint, why would they do anything, provoke the world? if you go inside, they have been at war with us since the early 1950s. that we're spending every saturday night that we're sitting around, planning how we're going to get them. while we're eating pizza, they think we're getting ready for war. i went to two performances, it's all nationalistic, we're beating the americans, they're coming to us, they'll see those ships as u.s. naval ships as provocation and you got the other problem that april 15th is kim jong-il is his birthday. >> finally calibrated steps up the escalation ladder. next year, we'll commemorate the 100th anniversary of the greatest miscalculation in human history, the beginning of the first world war. when events cascaded out of control, mobilization got started and the railroads couldn't stop them. >> david, isn't that the big concern inside north korea that the new leader gets pushed into a corner and feels that he has to respond? >> that's right. because he has to establish himself with a north korean military leadership that views him as a 28-year-old, 29-year-old kid. don't know exactly how old he is. who himself is untested. he feels as if he's got to show himself to be the war hero that his grandfather was and you'll notice that even his personal appearance has been changed to look like to his grandfather. does he bear an uncanny resemblance to his grandfather's impulses? in 1950, nobody thought that north koreans would go over the border and attack south korea. it was a series of miscalculations in washington. you could argue for the past 15 years, from the clinton administration, to the bush administration, to now, we have made miscalculations about how far and fast the nuclear program would go. >> adding to the difficulty, you have a new leader in south korea. >> you got these two new leaders. the one thing that you can't lose sight of here, is that everything's different with kim jong-un. he may be trying to be like his grandfather. he had a successful nuclear test, he had a successful long-range missile test. and they believe he has a long-range mobile missile. which general thurman said is a game-changer. it's game-changer because you can hide those missiles. and they believe those could hit the united states. can't follow those and certainly the long-range would be much -- believe that this long-range, if it works, could hit the united states? >> that's what general james thurman. >> the other thing, we are always surprised by everything the north koreans do. we know it afterwards. we don't know it before. our intelligence is very poor. you talk about provocation, from their perspective, they're winning this big war against us. we're terrified of them. we have sent b-2s over there. we have sent the f-22 over there. the south korean president, she probably thinks that she has to do something if there's any provocation. because two years ago, when they sunk that ship, and 46 sailors were lost, nothing was done. south koreans were upset. >> meanwhile, a new leader in china as well, just came in october. china's position on north korea is evolving. if so, pretty slowly. >> yes, it better evolve fast because they're right next door. this is really a test of whether china will be helpful or not. it's in their neighborhood. the evidence is clear. if anyone has leverage over north korea it is china. >> what is your sense? >> i think the chinese would like the north koreans to go back to the status quo, because if north korea collapses, we're right up on their border. at this point, the china's influence on the north koreans is fairly limited unless they decide to use their one true card, which is turn off the oil. they could end this whole thing, sort of, right away. >> they're not going to do that? >> they're not going to do that. kim jong-un knows that. he's playing the chinese very well. and he knows one other thing, while the united states still talks officially about denuclearizing the korean peninsula, he takes a look at the world and he says, gadhafi gave up his nuclear weapon program and look at what happened to him. saddam hussein never had a nuclear weapons program and look at what happened to him. tell me, again, why i'm supposed to give up this small arsenal of nuclear weapons, it's the only thing that's keeping -- >> martha, the nuclear talks with iran basically failed again. you have to believe that iran is watching this as well, and says, he's got nuclear weapons, he has a stronger hand. >> not only watching it, but i think there's cooperation between north korea and iran. in fact that's something else that general thurman and other officials -- >> what kind of cooperation? >> cooperation on nuclear program. north korea wants money and iran wants nukes. >> it could be one of the effects of the iraq war, a lot of people around the world drew the conclusion that had saddam hussein developed nuclear weapons he would still be in power. >> they do not feel that way, they feel that they're on a mission, the people feel they're on a mission. they feel like we're awful people. when i'm there, they get nervous and they shake, because i look different than most of them. they see americans as the worst enemy for 50, 60 years, every single day, they think we're about to kill them. >> martha, test this week from north korea? >> i suspect there will be a military test. midrange missile tests. possibly shorter-range missiles as well. on the 15th. >> i'm going for the 10th. >> that might be the way out. the test that went right into the water would be the best thing that could happen. >> as long as no one responds. >> thank you very much. martha and david, thank you. paul krugman and david stockman debate washington's response to our economic crisis. when we come back. ♪ [ male announcer ] navigating your future can be daunting without a financial plan. at pacific life, we can give you the tools to help you achieve financial independence. for more than 140 years, pacific life has assisted families and businesses in meeting their goals, even in uncertain economic times. let us help protect the things that you work so hard for. to find out how, visit pacificlife.com. ♪ to find out how, visit pacificlife.com. and every day since, two years ago, the people of bp made a commitment to the gulf. we've worked hard to keep it. bp has paid over twenty-three billion dollars to help people and businesses who were affected, and to cover cleanup costs. today, the beaches and gulf are open for everyone to enjoy -- and many areas are reporting their best tourism seasons in years. we've shared what we've learned with governments and across the industry so we can all produce energy more safely. i want you to know, there's another commitment bp takes just as seriously: our commitment to america. bp supports nearly two-hundred-fifty thousand jobs in communities across the country. we hired three thousand people just last year. bp invests more in america than in any other country. in fact, over the last five years, no other energy company has invested more in the us than bp. we're working to fuel america for generations to come. today, our commitment to the gulf, and to america, has never been stronger. possibly shorter range missiles around for the powerhouse round i hurt a lot of folks. and all i can say is that i apologize. >> who could forget that press conference. south californian governor mark sanford explaining that his hike on the appalachian state trail was actually a visit to his argentinian girlfriend, now his fiancee, and she's by her -- his side. >> i thank you. to my fiancee who's right here behind me for her long suffering as she put up with me being on the road for more than just a few months. >> it has always been a safe republican feat. but some gop leaders worry that sanford has too much baggage to cover it. and stephen colbert's sister is getting fund-raising firepower. it's a race to watch. and we'll be back with more roundtable right after this. with more roundtable right after this. i'. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ how we get there is not. we're americans. we work. we plan. ameriprise advisors can help you like they've helped millions of others. to help you retire your way, with confidence. ♪ that's what ameriprise financial does. that's what they can do with you. let's get to work. ameriprise financial. more within reach. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ on ♪ i feel so close to you right now ♪ >> vice president biden and i have worked together on so many important issues and i know what a personal victory it was for him to see the violence against women act reauthorized last month. >> there's no woman like hillary clinton. hillary clinton -- and that's a fact -- >> they shared the stage at the kennedy center. will they be sharing a debate stage in just a couple of years? we'll get into that just a little bit. let me welcome back our roundtable, george will again, greta van susteren from fox news, ariana huffington of the huffington post. david stockman, former reagan budget director. and paul krugman. of the "new york times." paul, let me begin with you on these economic numbers. the jobs numbers that came out on friday, only 88,000 jobs created last month. 500,000 people left the work force, is this a sign of one of these another spring swoon? >> it could be. one month's numbers doesn't mean much. it might be revised up. yeah, i mean, what people forget, is two things. one, we say we avoided the fiscal cliff. but to a larger extent we did not. payroll taxes went up. we had a pretty big hit to working people's incomes starting in january. the other thing is sequester is starting to hit and businesses have already been making adjustments in anticipation of that. so, we're actually pursuing a lot of fiscal austerity now. you look at the cbo numbers. we have had a basically contraction of about 3% of gdp since 2011, which is bigger, that's more antistimulus than the stimulus ever was. we're doing a lot of contraction on the fiscal side. why should we surprised if shows up on a economic slowdown? >> david stockman, your book, 734 pages, to sum it up, you believe everything that washington has been doing since the crisis is hurting a lot more than helping, including stimulating the economy. >> i think the machinery of government is failing. that's the problem we face. a real threat to the main stream economy. that's why the numbers are far more serious than what you heard friday than is being suggested by the white house. the truth is, if we were still counting the labor force the way we did in 2000, the last time the stock market was where it was today, the unemployment rate would be 13.1%. we had a massive drop out of employment. it's not from retirement. that we're not even beginning to appreciate the harm and the damage and the hurt going on in the mainstream. we had the lowest economic growth in the last 12 years other than wartime for a century. >> there -- there is a discouraged worker effect. so, the unemployment didn't really go down this month. but, a lot of it is the aging of the workforce. not just -- if you do an age corrected labor force participation rate, it's not looking as bad. about half of the decline that we have seen is just demographics. yet, this is a big problem with lots of stuff. not just people hitting 65. people often tend to retire before then. the numbers aren't that bad. this month is bad. but the numbers actually over the past year and a half have shown significant improvement once you correct for the demography. >> george, the president is already facing feedback for including cutbacks in social security and medicare. >> particularly changing the changed cpi which calculates the cost of living. the fact is, baby boomers are retiring, bless their hearts. the fact is, 496,000 people left the workforce. we have the lowest workforce participation rate since 1979. usually after -- and the average after the 11 recessions, since the second world war, we're back within 24-month of the prerecession high. the recovery will be four years old in two months. >> this is an unprecedented since the depression crisis. >> yes, but what they're saying is absolutely true. this is a real jobs crisis. the urgency of the jobs crisis is not just the budget there's a real disconnect between the real crisis is and what his priorities are. i know that dan said that we can do both. we can reduce the dif it is and grow the economy. we can't. we haven't been able to. and even ben bernanke warned the senate banking committee last month that all of these measures, all of these deficit reduction measures, are having a terrible impact. >> so you agree with david pfeiffer's analysis but not his prescription? >> no. i think his analysis is key. i think there has been a lot of attacks on his book, which i'm missing. the center point of the book is his analysis. at the heart of his analysis is that the disconnect between the real economy and the financial economy. everything we are doing has been good for wall street. quantitative easing. and not good for main street. the president announced that he's going to have this initiative to map the brain, a -- to help this disconnect in the way we're approaching these two issues. >> but the main street is that we're struggling small businesses. i mean, everyone -- no one is paying much attention to these small businesses. the regulations, are somewhat laughable and silly, but they have a profound impact on the job creators. >> there has been ton of work on this. what's holding small business back is not regulations -- >> some of it. >> there's no correlation, looking across, which parts of the economy do small businesses complain about. there's no correlation between that and actual job creation. >> one question. one exception perhaps, on the health care, where, firms that are greater than 50 people, have to pay more and don't you see some firms cutting off at 49? >> you really -- there might be. you can't see that in the numbers. >> talk to them instead of just looking at the numbers. >> the overwhelming fact of the matter is -- >> instead of just looking at numbers. why don't you sit down and talk to these people, lot of them are struggling with this. they don't understand a lot of things that happen. they're very cautious because they see a dismal economy out there. >> i would like to jump in here, you know, we can debate this regulatory issue forever. the thing is, the main thing we're doing is not working and that is the bubble machine coming out of the federal reserve. zero interest rates are basically crucifying the savers of america. all of this money isn't getting out of the cannons of wall street. it's going back to wall street. it's going back to excess reserves. it allows speculators to borrow money for nothing overnight. we get bubble after bubble after bubble. but it's doing nothing for the main street economy. >> part of that quantitative easing -- >> the notion is -- to back up, you really think we should be raising interest rates with high unemployment? >> i think to have zero percent with interest rates when interest rates are the price of money, when our economy has massive amount of debt built up over three decades. we don't need more debt and debt isn't a good thing. i know we owe it to ourselves. still, it's a burden on the people who owe it. that's hurting and making more of it through zero interest rates. >> paul and then george. >> yeah, this is actually part of my problem with david's book. which is, we have huge debt numbers. a huge misunderstanding of what those numbers mean. people say, debt is 3.6 times gdp. we're broke. the country has been living beyond its means. that's not what it means. it's a little known fact that america earns more on its investments overseas than it pays to the foreigners. we have complexified the economic system. now, some mortgage originator makes the loan, borrows the money, using securities, you count the same debt twice. we have this overly complex financial system. we need to bring it back to simplicity. it has nothing to do with excess. it has nothing to do with zero interest rates. the big increase of interest rates took place when rates were reasonably high. do you really want to raise interest rates in a deeply depressed economy? >> david and paul can argue whether we should have zero interest rates now. no one can argue that we will have zero rates forever. when the cost of government borrowing goes back to 4%, 5%, the debt itself will be the big driver of debt. servicing our debt. >> david. >> the cbo projections are a rosy scenario. if you believe over ten years, that we're going to create 16.5 million jobs. when in the last ten years, we have only done 2 million. 14 years without a recession. from time we have one every 15 months. if you have done a graph of what we have done, 15 to 20 trillion. we'll have $25 trillion to $30 trillion in national debt. when the interest rate normalizes, the debt will soar. the interest cost will soar. wait a minute. >> hold on. arianna, and then paul. >> the cbo also predicted that another 750,000 jobs lost this year ago because of the sequester. absolutely no plan by the administration to deal with the jobs crisis. i think this is something -- >> they have a congress that's going to pass -- >> they haven't introduced a plan. george, you can't have the first congress isn't going to pass it. >> that's why the economy is failing. >> hold on. let paul come in. >> the administration, they have a difficult choice to make. do they talk about what they should be doing? or do they -- or do they position themselves that nothing is going to happen? they chose not to talk about what's going to happen. they have chosen to do a halfway cut between what's happened and what's going to happen. none of this is real. if you talked to them. >> you're basically saying it's okay for the administration to simply position themselves to -- do something for the real crisis. >> when you talk to them, they understand this. they understand that we should be doing more stimulus. we shouldn't be doing this austerity. >> they know they're not going to get it. >> the concept that nothing is going to happen, it's that nobody is trying. that's the real disconnect between washington and the rest of the country. if the sequester is created this problem, who created the sequester problem in the first place? they did, because they didn't do their job. what are they doing now? most of them are recess. they created a lot of these problems. this happens to be their job. they should at least be working toward -- >> hold on a second. >> they ought to try. they ought to try. >> we need more stimulus. >> taking advice is a better idea than doing nothing. >> george will, you saw dan pfeiffer talk about the common sense caucus. the president is trying to reach out to senate republicans who might be part of the deal. i tend to agree that it will be very difficult to get one. you have the debt limit being hit again in mid-may, some time in the summer, a lot of people believe that might force some kind of compromise. you don't? >> i don't. people on the left has people rejecting to changing the way we calculate the cost of living increases for entitlement programs. on the right the republican position, it's set in stone is that the president got his revenues, end of story. so, when the president comes back for more revenues, all of which is to reduce the deficit, $600 billion over 10 years, that's $60 billion a year, it's a rounding error. >> social security, cpi saves $100 billion over ten years. it's 1% of the problem. the machinery is paralyzed. the republicans can't owen up to the fact that we need major, new revenue services. social security is busted, it's already running a deficit a year, there's nothing in the trust fund. it's confetti. >> i disagree with everything my colleague just said. this isn't about machinery, it's about people and visions. we have two parties who have fundamentally different visions of what america should be. we have democrats, who want the expansion of the safety net and have gotten it in obama care. they want it to be even more. and we have republicans that want to dismantle a lot of the legacy a great deal, the great society and the new deal. of course, it's paralysis because the parties don't agree at all on which direction this country should take. the last election wasn't -- did not resolve it one way or another. >> not true they declared a distinguished vision at the moment. we have 64% increase in suburban poverty. we have a doubling of people on food stamps and disabilities payments. we have millions of people's homes under water. the administration is ignoring their crisis. because they're prioritizing deficit reduction. this is not a right/left point. they're ignoring what's happening in europe. the eurozone has the highest unemployment rate it has had. all the austerity measures haven't worked in europe. they're not working here. yet, the administration is not putting forward a coherent vision that prioritizes jobs and growth. >> the reason we have paralysis is because we don't have the money. and i think people want to take care of people. i don't think people want to take away the safety net. if we didn't have a revenue fight in terms of how much money we have, the condition of the economy, the condition of the national government, we wouldn't be having half these fights. and the two parties might be able to come together a little bit better, if we fundamentally got this country up and running. >> they're glorified concierges that introduce politicians to money. they don't stand for anything. they don't believe for anything. why do we still have too big to fail? we allegedly had a heart attack, the banks are bigger than ever. why don't democrats do something to break them up and cut them down to size? i want to move on. hillary clinton back on the stage this week. we saw her with joe biden. gave another speech at a women's conference here in new york. here was her plea. >> let's keep fighting for full participation. and let's keep telling the world over and over again that, yes, women's rights are human rights and human rights are women's rights. once and for all! >> arianna, she's also announced that she's writing a memoir of her time. chelsea clinton on the cover of "parade" magazine this week. any doubt that she's back in? >> she's obviously running. what i was hoping that she would have taken more time what she herself called untired. that is her term. she wanted to sleep in, to be able to recharge herself, she hasn't given herself that time and i think that's sending a bad message to women, the only way to succeed is to drive yourself to ground. she collapsed. she had a concussion. right now, you see a greater debate among corporations, among individuals, how can we define success? how can we reduce stress and burnout? which is having a terrible impact on our health care system. 75% of health care costs are because of chronic, preventable diseases. many of them brought about by stress. she could be an incredible leader in helping our success. >> hillary hit the mat in december when she got sick. hillary doesn't give up. she's done this for the last 40, 50 years. she's not going to -- >> she's not going to give up. >> i don't think she -- hillary -- she's out there all the time fighting. she can't sit home and do nothing. >> george will, if hillary clinton gets in she clears the field, do you buy that? >> no. the consensus of people who talk about presidential politics, she's the prohibitive favorite. when was the last time that prohibitive favorite for the democratic nomination lost it? you have to go back four years, to 2008, when she lost. >> 50-point lead in the spring. >> things are different now. i watched the whole reaction to hillary. and i think, have i slipped into this dimension, sort of spock with a beard territory, because we have democrats loving this candidate. fractured republicans, disorganized. who switched the labels on the parties? >> i'm under the impression we have much problems of governance in this country. and why are we worried about 2016 election? we ought to focus a year or two on the problems. >> very fair. true enough, it created a controversy, at least online attend of the week. the president going out to california and praises the attorney general of california, kamala harris. from the stump, he said that she's brilliant, she is dedicated and she's tough, and she also happens to be by far the best-looking attorney general in the country. check out the montage of reactions. san francisco chronicle, politico. all kinds of outrage. it seemed. it was all over the twitter sphere. arianna, did the president make a mistake here? >> everybody should relax, lighten up. in our society it's unbelievable. george and i were talking about in the green room, the modern weakening of modern moraless. it's the modern strengthening of minor morals. i mean, i wished there was more outrage about the jobs numbers than we had about kamala harris. >> it's a fun story. i think, it was a social comment. he made a comment about her. although i do think the attorney general of maryland who was an early supporter of president obama, should be offended. he's a pretty handsome attorney general. anyway, it's a social comment. >> finally, a democrat said something accurate. there's no growth industry in this industry of synthetic indignation. thanks to progress, they do it on the internet. it creates this change. >> you're a victim of them on the internet. >> look, it was dumb. it's right to slap him for it. but you know, there's a little bit of pig in all of us. i can speak from personal experience. >> before we go, before we take a break, george, there was one sincere outrage this week, down in atlanta, 35 educators including the former superintendent of schools, have all been indicted on conspiracy charges for trying to inflate the test scores of their students and you're hearing a lot of education experts saying that this is not an isolated problem. >> it is not. they changed the answers on standardized test. when you link teachers' compensation and job progress to the performance of students on standardized tests, you put in a place an incentive to cheat. in 2014, next year, we'll have 100% proficiency in math and reading. the danger is that we will, because we're going so dumb down the standards of proficiency. we put in incentives all linked to standardized tests. >> let me play lawyer at the table. they haven't been found guilty yet. however, and the evidence is quite overwhelming. they have the presumption of innocence. however, if convicted it is absolutely deplorable. >> 30 seconds. >> cheating is symptomatic of a huge cultural problem that we have. in washington, in terms of not being honest. higher taxes for you. big declines in defense, not there. the cheating that's going in terms of the financial system is totally out of kilter. and really needs to be fixed. and wall street isn't being addressed. >> we have to take a quick break. "sunday funnies" and a quick roundtable coming right up. more and more energy.g the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projects in the world. enough power for a city the size of singapore for 50 years. what's it going to do to the planet? natural gas is the cleanest conventional fuel there is. we've got to be smart about this. it's a smart way to go. ♪ it's a smart way to go. welcnew york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. big stories on the radar this week, right after the sunday funnies. in new jersey governor chris christie signed a new law into law, the bill prohibits kids under 17 to tanning. when you're under age in new jersey if you want to get a tan you'll have to vigorously rub up against snooki. it was reported friday that north korea has loaded two missiles on its east coast and is threatening to fire them at the united states. so, let this be a warning to you -- middle of the ocean. i know what you're thinking... transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business. which is...pretty much what we've always stood for. listen, your story line, it makes for incredible tv drama. thing is, your drug use is too adult for the kids, so i'm going to have to block you. oh, man. yeah. [inhales] well, have a good one. you're a nice lady. final roundtable. want to get everyone's pick on a story that caught their eye this week. george will. >> stockton, california, in the midst of one of the largest municipal bankruptcies. we learned last week from the judge that the bondholders are going to take a sizable hair cut in this one. here's why this matters, having made promises to union employees, stockton then sold bonds to get revenues that they would invest riskily to try to get a rapid return to pay for these promises. didn't work, they're bankrupt. from now on, there's going to be huge risk premium built in to municipal borrowing. the sequester has hit these cancer centers that delivers chemotherapy to people who are on medicare. they'll have to stop giving chemotherapy to their medicare cancer patients. congress needs to fix that and fix it now. this is absolutely cruel that this is even happening. they should have been exempted under sequester. >> student loans. set to double this summer. the growing crisis around student loans is incredibly troubling, given, right now, student loans are costing over $1 trillion. this is bigger than the credit card debt, affecting the chances of kids graduating from college. not able to get a job. >> david stockman. >> president's budget is going to arrive two months late, dead on arrival, that's a measure of the paralysis that we have, this little cbi thing, we should do it and a lot more, big revenue increases are needed to pay our bills. that is a measure of washington is, paralyzed, why the budget is a doomsday machine. and you're going to hear this week and the noise. japan. and david will love this. after 20 years after being stuck in a deflationary trap, they're finding get radical. they're doing a big monetary expansion. i think it will work and it's a good idea. it's a tremendous test. lesson for the rest of us. >> it's already fueled the japanese stock market. in the new york times, law mass shooting. -- enforcement experts studying mass shooting. if you're in a situation, the best thing to do is not stand by, not be passive, take action, either against the shooter or to run or hide, don't sit still. i think that's important scholarship. thank you all, for this is a fantastic conversation day. certainly very spirited. appreciate it. and now, we'll honor our fellow americans who serve and sacrifice. this week, the pentagon released the names of two service members killed in afghanistan. wo service members killed in afghanistan. and that is all for us today. thanks for sharing part of your sunday with us. and go to abcnews.com/thisweek for this week's web extra with arianna huffington. david muir will have "world news." on this week's 40th anniversary of martin luther king's death, we leave you with the power voice of nina simone, she sang just two days after that heartbreaking day in memphis. ♪ what's going to happen ♪ now that the king of love is dead ♪ in the news this sunday, an office every-involved shooting in san francisco's mission district sends two men to the hospital. why police say they opened fire. and new developments after hundreds of gallons of fuel leak on to the cal train tracks. what it means for your ride today. and good morning. we're looking live at the bay area san francisco from emoriville. will these clouds bring us a slight chance of good morning, everyone. thanks for joining us. i'm carolyn tyler. let's start with a quick first look at the weather with our meteorologist, frances. >> we haven't found much rain as we sweep around the bay area. there is a chance of rain still during morning hours. mainly cloudy conditions, temperatures in the 50s. temperatures climbing into upper 60s and then it looks like we see a better chance of showers this evening, late this evening. i'll have the timing of that for you and full report and temperatures by 8:00 tonight dropping down into the 50s. carolyn? >> thank you. developing news out of san francisco's mission district, a man who pulled what turned out to be a fake handgun on people was shot by police. abc 7 news reporter kiera clapper is live at san francisco general hospital. the suspect and another wounded man are being treated there right now. >> that's right, carolyn. police tell me the two men are being treated for serious life threatening injuries.