Transcripts For MSNBC Morning Joe 20130225

And now for the moment we have all been waiting for and the oscar goes to argo. Congratulations. Well, good morning. Its monday, february 25th, welcome to morning joe. Everyones a little tired here for some reason. With us on set, we have msnbc contributor Mike Barnicle. Wake up, mike. And the president of the council on Foreign Relations you were not up. Richard was. It was so good. How many times have you been now . You havent been. 13th time. Willie, have you been . I have not been to the opera. Its really good. Lincoln center. I walked past the fountain at the lincoln center. You have to go. Im going to force you. On the way to p. J. Clarks. Right across. Obviously, we have a lot to talk about. Coming up, the sequester, of course, is going down to the wire. Robert gibbs had some interesting comments on drones which well talk about. But, of course, it was the big night at the oscars that everyone is probably still talking about this morning. Complete with some redemption for ben affleck. Affleck and the crew of argo beat out films like lincoln and Silver Linings playbook to win best picture. But lincoln had its day in the sun as daniel daylewis earned his Third Academy award for best actor. The most ever in that category. Jennifer lawrence took home the best actress oscar for her performance in Silver Linings playbook. She stumbled a bit on her way to the stage. I hate it when that happens. But shes doing just fine. Absolutely. Oh, dont. Dont loop it. What are you doing . Stop it come on who would do that . T. J. No, hes not here today. No, hes on remote. Some sickos in the booth. Who is it . Its an infection. Alex, whos there . No, come on. Lets keep going. Its t. J. T. J. , you look different. Im going to follow him around with a camera. How exciting for her to win . I loved that movie. And she was fantastic. I kind of had hoped that bradley would win, but at the same time, there were it was a tough crowd. Wow, tough crowd. Go ahead, tell us who else wins and then im going to talk about Seth Macfarlane who got absolutely destroyed on twitter online. Unfairly. Unfairly. Hes a talented guy. Rounding out the Award Winners were Anne Hathaway who won best supporting actress. Also christopher waltz who took home best supporting actor, also life of pi director. Before we get to all the speeches, very exciting, poor Seth Macfarlane who i dont really know. I understand he does family guy. Either you love family guy or i absolutely hate family guy. He did ted. He did ted. You like that. I saw the bear. Was he really that bad . No. I hate the shmaltzy stuff where they get up and play hollywood. Tremendously talented. Very funny jokes. Song and dance, tremendously talented. He reminded me of you. Not the singing, dancing and other talents. You have to remember, everyone hates everything on twitter. Of course. Let me throw that out. I think he was just different. And he was also hes not one of them, do you know what i mean . So he comes into that room, and theyre going, wait a minute. Who is this guy making fun of us . American dud. Come on. Theres the washington post. Hes an oscar guy. We have a lot of news to get to still. Hes from connecticut. Is he really . What part . Kent, connecticut. I love kent. Rhode Island School of design and most interesting, missed because he had a hangover, had a hangover, missed one of the flights leaving boston on september 11th. Youre kidding me. Seth macfarlane . Youre making this stuff up. I dont know why you know all that. Thats pretty good. I dont know. Highlights from last night. Argo tells the previously classified story about an american hostage rescue in postrevolutionary iran. The story was so top secret that the films director is unknown to the academy. Jennifer lawrence has a great attitude about this whole thing. This is a charming, talented woman. I was talking to her backstage. She told me whether she wins or loses, its just an honor that meryl streep wasnt nominated. Django unchanged. Now, that was an intense film. This is the story of a man fighting to get back his woman whos been subjected to unthinkable violence. Or as chris brown and rihanna call it, a date movie. Oh. This is interesting. Daniel daylewis, not the first actor to be nominated for playing lincoln. Raymond massy portrayed him in 1940s abe lincoln in illinois. This is true. I would yeah. I would argue, however, that the actor who really got inside lincolns head was john wilkes booth. Really, 150 years and its still too soon. Yeah, it is. So jimmy kimmel had done a jfk joke at one time, that was the same punch line. Oh, 50 years later. The second he started telling okay, this is all about the too soon . Too soon . Too soon. You still think its too soon. Absolutely. Okay. Whatever. I think most people agree with you, by the way. So he wasnt so horrible, was he . He was just unconventional. Theyre used to more song and dance and its hollywood i told you. I told you. Seth can sing and dance, but he didnt do all that. He didnt give them what theyre used to seeing. It will settle in and theyll like it today. I bet youd be adorable. That shatner stuff was something. Oh, the shatner stuff. I missed that. I was walking out of the room dealing with kids. Okay. All right. Should we do news, please . Begging you. Daniel daylewis was fantastic. And funny in his acceptance speech. Jennifer lawrence. We talk about argo getting best picture rather than lincoln. That was interesting. I thought that was going to be happening. In 10, 20 years people are going to be thinking about argo and not lincoln. This is not being disrespectful of anybody associated with the movie or ben affleck, but i will tell you, town was far superior to argo. Argo was a good movie, but you want to give ben affleck an oscar . All im saying is, it was a really good movie, but i think youre right. I think they felt really bad about snubbing him. So they gave it to him in the end. But lincoln, i think, is a movie thats going to stand the test of time. The argo thing is interesting. If you went back a month, two months ago, it wasnt even mentioned as best picture candidate. He doesnt get nominated for director, so he wins all these other awards and this momentum builds. So in a weird, perverse way, the snub probably helped argo get the best picture. Who knows . Lets not take anything away from him. That was a great movie. You loved the movie. The only point is, its not even the best hes done. But then again, john lennon didnt get a grammy for anything. I swear to god, i thought i just saw louis in that video. Its too soon to make any jokes. Id kill anybody that would make a joke about john lennon. More on the oscars coming up. A couple more stories this morning. Its already nine past the hour. Did you see this . Im very happy about this. I stumbled outside the orphanage and picked up the New York Times and i saw this on the cover of New York Times magazine. Were in for a long day. No, youre in for a long spring. Is that mesquite barbecue chip . You know, i cant just eat one. Seriously, i had two bags yesterday. Because i saw it. And something flew into my head. I had two of those bags. Thank god for this article. Thats all im going to say. Thank god. Stop. By the way, look at this. Is that impressive or not . Minding mika. Thank god for this article. Okay. Be careful. My youngest daughter. Thats norah odonnell. That wasnt you. Looks good, really good. No, really, thats fine. So this article theres got to be one more picture of you. Very excited about it. Im writing a book that comes out in may that i thought you all would think is crazy, but you cant anymore. They basically say the same thing you say. Yeah. I just say it in more of a personal way. Lets go now with news. Well get to that later. Hold on. Were going to talk about the sequester. Stop. Hold on a second. Huh . Sass. There we go. The medium. First communion outfit. Look at this. The first communion outfit. And look at this. Or i could go scrub the floor. For work and play. Thats enough now. Stop it. I think thats a great, great picture. The book. Thats the book about food right there. And the family. Were going to get to the news now. Officials on the state level are trying to prepare for those acrosstheboard cuts set to kick in on friday. Automatic funding reductions known as sequestration that would slash 85 billion in spending. President obama will meet with the nations governors at the white house today after the administration rolled out new details over the weekend describing what impact the cuts will have across the country. According to the report, the effects include tens of thousands of lost jobs as well as fewer resources for education and the environment, but some republicans say the white house is more interested in scaring people than finding a solution. Senator coburn, is the president exaggerating the impact of these cuts . Absolutely. Its a terrible way to cut spending. I dont disagree with that. But to not cut 2. 5 out of the total budget over a year when its twice the size it was ten years ago, give me a break. In politico, by the way, there were tons of Opinion Pieces over the weekend on this. We pulled out a few here that really captured the conversation about this. Rich lowrie writes about the panic. When you have a brzezinski circling one of your columns, you might be making some good points. That doesnt mean i agree with it. He made some great points. You said i cant say this on tv, but this is a really great oped that i agree with 100 . I really didnt say that. Prepare for the end of food safety as we have known it. For a breakdown in public order. For little children languishing in ignorance. If only Edward Gibbon were here to chronicle the devastation. On march 1st, the fabric of our civilization begins to unwind. Thats when the economy begins to stall and we turn back on our values all because the federal government will have to begin to cut a few tens of billions of dollars from the largest budget the world has ever known over the next ten years. The sequester amounts to a 1. 16 trillion cut, or roughly 3 cents on every federal dollar. If we cant squeeze a couple of pennies out of every dollar, we might as well begin our Great National bankruptcy proceedings right now. Its hard to see how a cut of a little more than 40 billion this year can possibly tank a 16 trillion economy. What i do agree with is how can you not cut 85 billion responsibly . How can they not come together and figure this out . And by the way, take what rich said, combine that with what tom coburnsaid, talking about how the budget has doubled over the past decade. So really what were talking about is we cant take 3 cents out of a dollar today, but putting it in historical perspective, thats 3 cents out of a hyper inflated dollar, if that dollar were talking about is federal spending, which has exploded at obscene rates under barack obama and george w. Bush. You can at the macro sense, and its not going to sink again, were talking over ten years. Its a trillion dollars roughly over ten years, 80, 90 billion, this year is will be 45 trillion. Its only on Discretionary Spending. Youre putting off to the side most of the budget, as you know, entitlements and everything else. And even within Discretionary Spending, its quite limited. So depending on, for example, you cant touch personnel accounts and all that. So it will have more impact than it should. Will it sink the economy . No. Is it a smart way to run this airline of the United States . Absolutely not. Absolutely not. Peggy noonan writes also i thought in the wall street journal, i thought it was fascinating. Government by freakout. Republicans on the hill, of course, are being cast as the nihilists in the drama, as the ones who want to blow things up. But is that even remotely fair . They just lost a battle on taxes. They fought and accepted an increase in rates. What they are saying now to the president is okay, we gave you tax increases, dont demand more right now. Work with us on spending cuts and a broad and coherent tax reform plan. Dont do the kind of targeted loopholeclosing thats just meant to torment the dead rich. Do something more solid and comprehensive. And yes, lets move to do what we can on entitlement spending. Willie, as long as the democrats and the National Media had Grover Norquist as their strawman, it is this one man. It is this one terrible, terrible, small, evil man who is stopping goodness and justice from prevailing in americas budgetary wars. When they had him, this worked. Hes no longer on the stage. And this whole tax cuts for the rich boogeyman has also been taken off the stage because we had this battle in december, and republicans, as peggy said, got their hat handed to them. Now the president comes back and says if we could only tax the rich. But these republicans dont want to and by the way, they want to slash and burn the budget. See, democrats are on thin ice, i think personally on this argument to say the worlds Everybody Knows that bush spent way too much. Everybody knows barack obama spent way too much. I dont think they buy this argument. On a gut level. Yeah. I think youre right on most counts on that part of it. Its not going to tank the economy. Its just not. But there are realworld impacts immediately. Some people will be furloughed. Some people will work four days instead of five. There will be things in the short term. Absolutely. In the larger question, its not going to tank the economy. The bigger thing to me is we put this in as something so draconi draconian, something so terrible that theres no way we could ever go there, and it would force the hand of our elected officials to do something about the deficit. Again, if this doesnt do it, and its not, sequester is going to go in some form by the theme we hit friday. What will . If they put in poison pills that wont kill them, what will change anything . How fascinating over the weekend, sort of a subplot going on here was the battle between bob woodward and the white house. Willie just talked about how the draconian cuts were set up. The white house said it wasnt our idea. Bob woodward said, yes, it was. Ive got you guys on the record telling me before that it was jack lews idea aproved by the president. The president came out directly earlier, and woodward wrote this all down this weekend where the president said the debate, oh, the sequester wasnt my idea. It was the republicans idea. This past week woodward coming out, made them back down. This actually was hatched at the white house. But then youve got the white house lobbying rhetorical bombs back at woodward saying hes not telling the truth. A fascinating back and forth there. I think the argument over who came up with it is silly because everyone voted for it, number one. Except for the fact that the president s not telling the truth when he says it wasnt his idea. And thats not is that not is that silly when a president intentionally misleads the American People about who came up with this idea at a president ial debate . I think republicans looking at im just curious. Can you answer that . If george bush didnt tell the truth to the American People on Something Like this, even a small matter, would that be silly . I think the whole thing is silly, yes. The president not telling the truth. I need to talk. Hold on one second. Id like you to answer the question, though. Yes, its silly. Im answering. Now im moving on. The president not telling the truth is silly . Will you let me talk for a second, please . Im just curious. When did we get to a stage that its silly . I said yes. It is silly. The president is not misleading the American People in this important debate, if this is an important debate . I think the republicans yammering away with who came up with it is is a fantastic ploy if you want to be a House Republican forever. So the next time a republican doesnt tell the truth in the middle of what were told is an important debate and i just want this for the record were going to come back to this tape where you say it doesnt matter whether the president tells the truth or not. I didnt say that. Yes, did you. I said its silly if hes arguing that he didnt come up with this. The bottom line is, the white house came up with the idea. Everyone supported it. The point was to come up with a better plan, and they didnt. And everyone should be ashamed of themselves, and quite frankly, arguing over who came up with it is not where were at right now. We are four days away from cuts that will hurt people, cuts that are maybe not the right cuts, cuts that may impact our national security, and both sides ought to figure out how to cut 85 billion without doing such drastic damage to some peoples lives immediately on friday. And quite frankly, the president does have a plan on the table that involves chain cpi and about, i think, 400 billion in medicare cuts. Thats better than the sequester. It is. So the republicans ought to stop bickering over who came up with this because everyone did, to avoid it. To come up with something better. Its silly. I think those that was my answer. Richard house are very cogent points that i think the American People should consider and listen to and consider. And stop interrupting. What you have here in their minds. Are you two done . Yeah, were good. Everythings fine now. Just having fun. A little fun in the morning. The white house is focusing on who came up with it. The real question here is where we go from here. People want to see when the polls come out. Whichever side gets the preponderance of the blame. Republicans always get the blame. But mikas on to something. Whats so discouraging about this, were talking about a small amount of money in the larger scheme of things. You always have threats to cut fire engines first. Were not going to do that. The society will survive. The u. S. Military will survive. And at the end of the day, were no closer to anything serious on the budget. Were no closer to anything remotely serious on getting this economy growing again. This is such an enormous distraction from what really matters when facing the United States. That is whats truly depressing. Ill tell you, people always get tired of me telling stories about when i was congress. So ill tell a story before i got in congress. The first thing i ever did politically was in 1993, lead a tax revolt, pensacola city hall tried to raise taxes by 65 . And they tried if we dont raise taxes 65 , this was right after the clinton tax increases and the state. And i was saying this is going to be devastating for our economic development. Well, the city every city councilman got up there and councilwoman saying we dont get 65 tax increase, the firefighters arent going to be able to come and rescue your little doggy from the tree. When your children are going to walk down streets that arent going to be and they went on and on, tumbleweeds are going to be rolling guess what . We killed the tax increase. You know what happened . They gave their 11 city managers a 35 pay raise the next week. How many times why do i bring that up . It aint just pensacola. Every time americans hear politicians on any level saying, you know, weve got to spend more money, or else the world comes to an end. They just dont believe it anymore. I have a list of the national horrors that are going to occur when sequestration takes effect according to the administration released last night. Look, they you get the sense they have oversold fear. People are not buying the fear. Whos they . The white house. Theyve oversold fear with regard to sequestration. However you want to pronounce it. The other thing thats going on here and its a pox on both their houses people arent afraid of the dismantling of the economy so much as theyre afraid of who are these people in washington . Yeah. Why can they get nothing done on anything . And to your point, anybody, anybody with a checkbook and children sits there and wonders, they cant take 3 cents out of every federal dollar . They cant do this . After we gave them the money for them to double that dollar, the spending, over the past ten years. They cant do that . They cant make those cuts . Get them all out of there. Recall. I thought your point was made. What i was saying, i was just moving the debate along. Sometimes, you know, i just try to spur debate, right . Thats what you do. Im the stirrer. The pot stirrer . The pot stirs the drink. Thats what i am. Really . Is that what you call that . And i knew if i criticized the president right. That would wake you up, make you angry. Because i love the president. I love them all. You do . I do. I love everybody. Mmhmm. And i just knew that if i criticized president obama, that would wake you up, and youd get really angry and defend your man. And thats exactly what you did. Youre the rodney king of morning television. I get no respect. I stir that drink. Too soon . It is way too soon for a headache. What, to make Rodney Dangerfield jokes . Rodney king jokes. Oh, rodney king joke. Yeah, its way too soon. Totally too soon. Dangerfield. Thats a horse of a different color. Wow Rodney Dangerfield is dead, right . Yes. Okay, its too soon. Too soon. Still ahead on morning joe, transportation secretary ray lahood will be here. Also, hardballs Chris Matthews. Hes a movie buff. Perfect day to have him on. Economist dr. Jeffrey sachs and Legendary Music producer clive davis. Up next, yahoo tells their employees if they cant work in the office, dont work at all. Wow so much for the new economy, right . Okay. The impact of ceo marissa maie maiers decision next. First heres dylan dreyer with a check on the forecast. Keeping an eye on the second blizzard in just a week back through the plains. Blizzard warnings, watches stretching into the great lakes into the chicago area as well. You can see the snow is coming down real heavily through the panhandles of texas into oklahoma moving up into kansas. We also have the potential for very strong storms today down through the gulf coast states and the southeast. Another foot of snow is possible through the plains. And that is going to spread into the kansas city area where a foot of snow is also possible out that way. In the northeast, we actually have a nice day on tap. Lots of sunshine. Temperatures starting to warm up, too. We should actually get into the mid40s in new york city today. Washington, d. C. , about 40 degrees. And up in boston, about 38 degrees later on this afternoon. And then tomorrow, looks okay. A couple of spotty showers in new york city. But new england should top out right around 40 degrees. We are getting to the end of february, starting to turn the corner into march. You are watching morning joe brewed by starbucks. [ man ] ive been out there most of my life. You name it. Ive hooked it. But theres one. One thats always eluded me. Thought i had it in the blizzard of 93. Ha never even came close. Sometimes, i actually think its mocking me. [ engine revs ] what . quattro gives you 1 cash back on all purchases, plus a 50 annual bonus. And everyone but her likes 50 more cash, but i have an idea. Do you want a princess dress . Yes. Cupcakes . Yes. Do you want an etchasketch . Yes do you want 50 more cash . No. You got talent. [ male announcer ] the capital one cash rewards card gives you 1 cash back on every purchase plus a 50 annual bonus on the cash you earn. Its the card for people who like more cash. Whats in your wallet . I usually say that. 29 past the hour. Time now to take a look at the morning papers. From our parade of papers, the chicago tribune. This week marks Pope Benedicts last as head of the Catholic Church. Benedict gave his final sunday blessing to a crowd of 100,000 faithful followers yesterday in st. Peters square, telling them he is not abandoning the church and that he will continue to serve god. Meanwhile, Cardinal Keith obrien, the head of the church in scotland, has announced that he is stepping down amid accusations of inappropriate and intimate behavior with current and former priests. The pope has reportedly accepted cardinal obriens resignation. God, mike, i tell you what. Whoever the next pope is, they need to go on an allout hunt. Just no matter how ugly it gets. That actually could have been Pope Benedicts grand legacy over seven years. And its not going to be. Its not going to be. No. They need to open the windows of the vatican. They need to let a cleansing ear come through, they need to clean out a lot of things. They need to be much more open about the vatican bank and the finances of the vatican and the conduct and behavior of priests and higher ranking members of the hierarchy. If there is one. And theyed that Cardinal Mahoney of los angeles is allowed to vote for the next pope is outrageous. It is outrageous. And the fact is that the church, Catholic Church that i love, im not a catholic. Thats probably why i love it so much, because a lot of catholics say dont cut him so much slack. I love the Catholic Church. I went to a catholic high school. But every year that passes by is a year that damns this Institution Even more. The little boys that were victimized. Just raped whose lives were destroyed. And it is a church that allowed priests to be passed from one parish to another to another. Im not relitigating it. Im just saying whoever the next pope is should go on an allout hunt for these beasts and bring them to justice and just trust catholics across the world to be able to take the horrific news. Because theres so much more bad news out there that they need to reveal. You can make a very strong case, i think, that this is the most critical selection of a pope in the recent history of the Catholic Church. And by recent history, i mean 500 years. Because if they dont select the right person who comes in with the kind of edict that youve described, i think within 50 years, youre going to have a separate american Catholic Church. I think you may. You know, really quickly, you look at penn state. How many hundreds or possibly thousands of penn states were there inside this church . Right. Over the past 50, 100 years. The washington post, after the meteor blast in russia injured nearly 1,000 people, a d. C. Area lab wants to slam a spacecraft into an asteroid to prove we can prevent a potentially catastrophic event. A Johns Hopkins team is writing a 150 Million Program to shoot a rocket at an asteroid as it passes close to earth. If successful, it would be the first time an asteroid would be knocked off its trajectory because of human intervention. This a big story from the San Francisco chronicle. Marissa meyer, president and ceo of yahoo is changing company policy. Shes forcing all employees now working from home to report to the office. As you can imagine, many telecommuters not happy with the move. According to the paper, insiders say it will help cut the companys bloated infrastructure and get rid of employees who are not productive. This is a company that had been known for its culture. A lot of moms liked working there. You could work from home a little bit. Apparently that wont be the case anymore. The deal with too many people on the payroll. The irony of a Digital Company basically telling its people they cant telecommunicate, this makes absolutely no sense whatsoever. A mother actually at the helm telling other mothers, youre actually going to go back to the 1950s and act as if lets rationalize the payroll. Also in this age of concern about climate change, kind of funny to tell everyone to get in their car and commute to yahoo every day. That is bizarre. Yeah, a lot of questions. I want to hear more about that. Well follow up. But its time now, willie, for politico. Chief White House Correspondent is mike allen whos got a look at the playbook. Hey, mike. Hey, good morning, guys. This morning on politico, youve got a piece up, the nations governors have assembled there in washington. Politico reporting many of the top names on the democrats side may be waiting on the sidelines, at least until after 2016. Were talking about running for president here because of one woman and one woman alone. Well, thats exactly right, willie. The hillary factor was huge conversation among the governors themselves as they talked this weekend. Republicans are almost certainly going to go with a new generation, younger candidate in 2016. But for the democrats, the Younger Generation including Martin Omalley of maryland, andrew cuomo of new york, they may have to wait. And they know it because someone who would be the first female president in history who hasek tear clintons amazing resume, if you put that up against a governors record of Health Care Reform or gun control restrictions, theres no comparison. And they know that. Its already starting fast. Look at South Carolina. An early voting state. The first of the democratic states with a significant africanamerican population. In march, just next month, governor Martin Omalley of maryland will be down there for state issues conference. Probably in may, Vice President biden will be at their big Jefferson Jackson day dinner. And look at the clintons. And this is whats inhibiting all those other guys. In april, president clinton is going to be down there in South Carolina visiting some old friends and raising money forrer issy mcauliffe, his friend running for governor of virginia. Mike, if you look at that time line youve laid out, when would she have to start thinking about it and then doing some things behind the scenes to get that rolling . I think were going to see it very quickly. You know, weve talked before about the early steps that shes taken to keep building a list, to keep her Political Organization in place. Shes going to be out there speaking, working on her book. But were going to see signs of whether a Political Organization is coming together. So far all the signs are that theyre going to, but the problem for these other guys and why shes such a colossus over this race is, she can wait longer than anybody. Its like on the republican side. Florida governor jeb bush can wait longer than anyone, and that freezes a marco rubio, inhibits fundraiser staff who might go to work for him. Only three years, eight months until election day. Counting down. Mike, thanks so much. Yall have a good week. Not a great start to spring training for the yankees. Now Curtis Granderson breaks his forearm being hit by a pitch. Well tell you how long hes going to be out and get you some more sports next. For tapping into a wealth of experience. For access to one of the top Wealth Management firms in the country. For a team of Financial Professionals who provide customized solutions. For all of your Wealth Management and retirement goals, discover how pnc Wealth Management can help you achieve. Visit pnc. Com wealthsolutions to find out more. How do you keep an older car running like n . You ask a ford customer. When they tell you that you need your oil changed you got to bring it in. If your tires need to be rotated, you have to get that done as well. Jackie, tell me why somebody should bring theyre car here to the ford dealership for service instead of any one of those other places out there. They are going to take care of my car because this is where it came from. Price is right no problem, they make you feel like youre a family. Get a Synthetic Blend Oil change, tire rotation and much more, 29. 95 after 10. 00 rebate. If you take care of your car your car will take care of you. Time for some sports. And we start on the racetrack. Nascar beginning its season, as it always does, with the biggest race of the year. It was Jimmie Johnson taking the checkered flag at the daytona 500. His first win at the Great American race since 2006. Hes just the tenth driver in history with multiple wins at daytona. He won his first in 2006. Johnsons win i wont say was overshadowed by complemented by Danica Patrick who became the first woman ever to lead a lap at the 500. She actually was in third place on the last lap. Was she really . Oh, man. So exciting. She raced really well. She finished eighth. She said she was disappointed. Shed replay that last lap in her mind. She started on the pole, the first woman to do that. Thats a great weekend for her and for racing. What a game changer. Cool. Absolutely. Turning to baseball, bad news for Richard Haass and me yankee fans taking on the blue jays in spring training in tampa. Curtis granderson facing j. A. Happ drilled in the right forearm, tried to shake it off, but xrays reveal a fractured right arm. Hell be on the shelf for at least ten weeks. That puts him out until early may. Early candidates to replace him in the lineup, matt diaz and juan rivera. Weve got jeter with the ankle. Weve got arod, now granderson. Were getting a little old, arent we . The yankees are going to be sponsored by the aarp this year. I know. Were looking for a catcher, too, with about a month ato go. Alfonso soriano. The cubs will pick up his entire paycheck. How about a couple College Baseball teams brawling it after a rundown in the base paths. Thats ucriverside and sacramento state. Oh trading punches. Legitimate punches during fridays game. That was a real punch. The guy, of course, didnt move when he got hit. Three players ejected, all players suspended for four games apiece. Can we see that again . That was unbelievable. Why . Theres just a little push. I mean, why . He pushed him a little bit. Then there was some chatter. Wow a little rundown. Oh, he pushes him. A little push. Slight push. Dude, youve got to lean in. I mean, come on. Marco rubio going after the water. If youre going to do it, do it. He didnt even faze the guy who took the punch. It was almost like arod trying to knock a ball out of somebodys hand going down the first base line. You know . No, dont do that. Turn around and keep going. I was just making a joke. Chris matthews, political wiz, but also movie guru. Well get his take on the oscars and everything else. And the new yorkers david rennick. I know what youre thinking. Transit fares as in the 37 billion transit fares we help collect each year. No . Oh, right. Youre thinking of the 1. 6 million daily Customer Care interactions xerox handles. Or the 900 Million Health insurance claims we process. So, its no surprise to you that companies depend on todays xerox for services that simplify how work gets done. Which is. Pretty much what weve always stood for. With xerox, youre ready for real business. Which is. Pretty much what weve always stood for. And didnt know where to start. Used a contractor before at angies list, youll find reviews on everything from home repair to healthcare written by people just like you. No company can pay to be on angies list, so you can trust what youre reading. Angies list is like having thousands of close neighbors where i can go ask for personal recommendations. Thats the idea. Before you have any work done, check angies list. From roofers to plumbers to dentists and more, angies list reviews you can trust. I love you, angie. Sorry, honey. Picasso painted one of his master works at 56. Doris taerbaum finished her first marathon at 50. Not everyone peaks in their twenties. Throughout their lives. Passion keeps them realizing possibilities. An ally for real possibilities. Aarp. Find tools and support at aarp. Org possibilities. As your life and career change, fidelity is there for your personal economy, helping you readjust your Retirement Plan along the way. Rethink how youre invested. And refocus as your career moves forward. Wherever you are today, a fidelity ira has a wide range of Investment Choices to help you finetune your personal economy. Call today and well make it easy to move that old 401 k to a fidelity nofee ira. They hatin patrolling they tryin to catch me ridin dirty tryin to catch me ridin dirty tryin to [ woman ] hi there. Why do we always have to take your moms car . [ male announcer ] the security of an iihs top safety pick, the 2013 volkswagen tiguan. Thats the power of german engineering. Right now lease a 2013 tiguan for 219 a month. When i went through the process of becoming press secretary, one of the things one of the first things they told me was, youre not even to acknowledge the Drone Program. Youre not even to discuss that it exists. Heres whats inherently crazy about that proposition. Youre being asked a question based on reporting of a program that exists. This is my opinion. Yeah, yeah. I think what the president has seen is our denial of the existence of the program, when its obviously happening, undermines peoples confidence overall in the decisions that their government makes. Wow. That was robert gibbs talking about the administrations decision to keep quiet on americas Drone Program until only recently. We have some mustreads. Its Like Fight Club rules, mika. You know what the first rule of fight club is, dont you . No. Of course you dont. Yeah. One of the great movies of our time. Sorry. Richard, what do you think . Robert gibbs saying i was being asked a question about a program that i was told to say didnt exist. People are talking about it more now. I think whats happening with the brennan confirmation and all that is two issues. What is the criteria by which we decide when to use drones . I think the general sense that the criteria arent right, theyre a little too loose. And second of all, whats the process by which we decide particularly when americans are the target. And i think people there feel theres got to be more of a process since obviously due process is not being provided. So i think whats happening is the administration now is going to have to open up this policy, both to get brennan confirmed, and more broadly, theres a lack of congressional and public support. The feeling is its just gone a little too far. No ones talking about shutting it down but dialing it back. An overreach. My dad writes in the financial times, the cyber rage demands new rules of war. Today the interstate rules of the game are degrading, highly sophisticated capabilities for inflicting violence on remote targets as well as crossborder, statesponsored terrorism are undermining the clear demarcation of what is is permissible and what is not. Indeed, the World Community is witnessing an increasing reliance by states on covert acts of violence without declarations of war. Leaders can now use longdistance air drones for lethal strikes across National Borders against targeted individuals occasionally killing civilians, too. Calm and determined deterrence including intensified efforts credibly to identify perpetrators as well as readiness in effect to retaliate in kind must be the point of departure for new and genuinely reciprocal rules of the game. The need for such rules is becoming urgent. And richard, weve been talking around this table for a couple of years now about the dangers of going into countries where you havent declared war and killing not only targets but also civilians. Weve got to tighten these rules. We do. One of the problems, though, is the technology has so far outpaced the rules and laws. We see it with cyber. We see it with drones. Theres a gap or a lag thats grown up. The other thing is youre right. Sovereignty, had it came around literally in the 17th century was a big innovation. The idea was to keep the kingdoms from constantly going to war with one another. What were now doing is we live in a different world where we say sovereignty is no longer than absolute. Its conditional. Again, theres a lag. We havent quite figured out what we want to preserve and where we want to open things up. I wonder what would happen if an american went into mexico, and lets say theyre involved in a drug war and killed a mayor on the mexican side of the border, and the mexicans decided ten years from now to drop a drone over the guy in dallas suburbs. I wonder how wed react. A number of years ago there was a case of a dea going into mexico going after somebody. These are real issues. This is the question we have to ask. So if we drop drones in neighborhoods in countries where we havent declared war, whats our response when the mexicans drop drones in dallas suburbs . Of course, they would never do that. Because, of course, we live by double standards. And if they did that, our tanks would be to mexico city by nightfall. But if we want to see how the rest of the world looks at us in these drone wars, maybe we should start thinking about how we would look at other countries if they did the same to us. It ought to be an exceptional instrument. The truth is were going to live in a world of proliferated drones where dozens of countries are going to have them. Before we go, i grabbed a mustread out of the New York Times magazine. Thats exciting. Not from this piece, dont worry, although this was amazing. This is by gretchen reynolds, and its about exercising because a lot of people are on treadmills right now. Ive been exercising indoors. Its great. Its changed my life. Just wait. Y you stride differently when running outdoors. Outdoor exercise tends, too, to be more strenuous than the indoor version. In studies comparing the exertion of running on a treadmill and the exertion of running outside, treadmill users expended less energy to cover the same distance as those striding across the ground outside, primarily because indoor exercisers face no Wind Resistance or changes in terrain no matter how subtle. In virtually all of the studies and i thought this was interesting the volunteers reported enjoying the outside activity more and on subsequent psychological tests, scored significantly higher on measures of vitality, enthusiasm, pleasure and selfesteem and lower on tension, depression and fatigue after they walked outside. And i just started running o outside again. Yeah. Its true. It makes a big difference. I get distracted, mike, when i run outside. You know, you pass all those convenience stores. A lot of times i go in for a beer, a pack of cigarettes. I can run and smoke and drink at the same time. Hardballs Chris Matthews. What about you . Theres nothing more exciting than being out in central park. Please come help me. If youthen this willbrids arbe a nice surprise. Meet the 5passenger ford cmax hybrid. Cmax come. Cmax go. Cmax give a ride to everyone it knows. C max has more passenger volume than competitor prius v and we havent even mentioned. Cmax also gets better mpg. 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Choose double miles or 2 cash back on every purchase every day. Whats in your wallet . [ crows ] now wheres the Snooze Button . I juwant to acknowledge sten spielberg who i think is a genius. I want to thank canada, our fans in iran. I want to thank my wife. I want to thank everyone who worked on the movie. He may have been snubbed for best director, but ben affleck had plenty to say when his film argo took home the top big prize at last nights oscars. How great. Well talk about that. How great and much more when Chris Matthews and David Remnick join us. Remnick, what part did he play in grease . Tax refund time is here. Im with malcom and kelly who are looking for a great new smartphone. You think you can find one at walmart . Maybe. Lets go see. Alright. Let him tell you about sprint. Weve got the Samsung Galaxy s iii on the sprint 4g lte network for just 148 nice wow. And you get a 50 gift card. Awesome. We can split it. I dont think so. Okay. [ earl ] see for yourself. Get a 50 walmart gift card when you buy any Samsung Smartphone on the sprint 4g lte network. Now through march 2nd. Walmart. Humans. Even when we cross our ts and dot our is, we still run into problems. Namely, other humans. Which is why at Liberty Mutual insurance, auto policies come with new car replacement and accident forgiveness if you qualify. See what else comes standard at libertymutual. Com. Liberty mutual insurance. Responsibility. Whats your policy . To help protect your eye health as you age. Would you take it . Well, there is. [ male announcer ] its called ocuvite. A vitamin totally dedicated to your eyes, from the eye care experts at bausch lomb. As you age, eyes can lose vital nutrients. Ocuvite helps replenish key eye nutrients. Ocuvite has a unique formula not found in your multivitamin to help protect your eye health. Now thats a pill worth taking. [ male announcer ] ocuvite. Help protect your eye health. [ male announcer ] ocuvite. Do we hano. A mower . A trimmer . No. We got nothing. We just bought our first house, were on a budget. Were not ready for spring. Well lets get you ready. Very nice. You see these various colors. We got workshops every saturday. Yes, maybe a little bit over here. This spring, take on more lawn for less. Not bad for our first spring. More saving. More doing. Thats the power of the home depot. Get ready for spring with this ryobi 18volt trimmer, just ninety nine bucks. [ construction sounds ] [ watch ticking ] [ engine revs ] come in. Got the coffee. That was fast. Were outta here. [ engine revs ] ramble on i thank everyone in the movie, on the movie, worked on the movie, did anything on this movie gets thanked. I want to thank canada, our friends in iran living in terrible circumstances right now. I want to thank my wife who i dont normally associate with iran. But i want to thank you for working on our marriage for ten years. It is work but its the best kind of work. Theres no one id rather work with. And i just want to say, you know, i was here 15 years ago or something. You know, i had no idea what i was doing. I stood out here in front of you all. Really just a kid. And i went out, you know, and i never thought that i would be back here. And i am. And it doesnt matter how you get knocked down in life. Because thats going to happen. All that matters is that youve got to get up. Violet, sam and sara, i love you. This is for you. All right. Welcome back to morning joe. Mike barnicle is still with us. And joining us on set, the host of msnbcs hardball and author of jack kennedy elusive hero, Chris Matthews. Also on board this morning, the editor of the new yorker, David Remnick. The latest issue of the magazine is now out on newsstands. David, good to have you here as well. Good to be here. So what . Nothing. Lets go through it real quickly. I cant wait to hear about everything. Ben affleck and the crew of argo beat out films like lincoln and Silver Linings playbook to win best picture at the Academy Awards. Lincoln had its day in the sun as daniel daylewis earned his Third Academy award for best actor. The most ever in that category. He even flashed a sense of humor during his acceptance speech. Its a strange thing because three years ago before we decided to do a straight swap, i had actually been committed to play margaret thatcher. And meryl was stevens first choice for lincoln. Id like to see that version. Pretty good. You know, those two, though, theyre the two greatest actors we have right now. You get the feeling they could pull it off. Meryl streep as lincoln would be brilliant. Id go to that movie. Daniel daylewis and meryl streep, without a doubt, are in a class by themselves. Absolutely. As larry bird once said in the threepoint contest, everybody else is playing for second. It was great seeing those two together last night. Mmhmm. It was a nice moment. Rounding out the top awards, Jennifer Lawrence took best actress for her performance in Silver Linings playbook. I was really happy to see that. Anne hathaway won best supporting actress. Christoph waltz took home best supporting actor. There were lots of dresses. I dont know how to talk to you all about dresses. I know youre going to Say Something lewd. This is Charlize Theron, thats beautiful. Anne hathaway had a beautiful dress on. Well, me and Jessie Rodriguez were on the phone when she came out. We didnt agree. You disagree. But shes fantastic. And it was fun to watch. My daughters were watching the red carpet while i was working upstairs, and i could hear howls when they didnt like someones dress. Theres halle berry. Im sure no one here will argue with that. Except for george. Judging from the response, Charlize Theron won the red carpet with her Harry Winston jewels. No response whatsoever. This is a situation, whatever you say, is going to go terribly wrong. Yes, exactly. Why dont you just do news. I did think that Jennifer Aniston in that red looked great. Oh, yeah. I think she didnt try to compete. Shes just naturally great. I like her, always have liked her. Were you surprised that lincoln didnt win best picture . No. I think all these movies are about today. I think movies are always about today. Not just casablanca. Movies are made for the audience today and they react to it today. When people saw argo they applauded like mad at the end. People dont applaud at Movie Theaters. The excitement in seeing america, to cooperate with another country, to do it without bloody, killing everybody and to actually end up getting away from a place like iran we dont want to be in, it had all the messages of today. Just like m. A. S. H. Was not really about korea. It was about vietnam. And i think movies are about today always. And i think it captures something. I also thought my other First Impression was Jennifer Lawrence. When i saw i didnt know what to expect with Silver Linings playbook. When i saw her, i walked out of that theater and said that is the best actor of her generation, bar none. I had never seen a performance like that. So First Impressions are very helpful. 5,000 people vote in this. Daniel daylewis, of course, i keep talking about daniel daylewis and lincoln. I left the Movie Theater really moved. I was stunned by that movie. Im not always blown away by spielberg. He find him sometimes mockish. And the very beginning and the very end were kind of syrupy and filmed through gauzy light. I thought that performance and the script by tony kushner, the ability to tell the story and focus on the battle of the 13th amendment, legislative battle. Can you imagine the sequel called sequester. Do you have some of these chapters in your legislative life . You could do a whole hour and a half movie . I agree with you guys. To find that kernel of story. I also liked the debate about the necessity or lack of necessity for voracity for truth in a historical movie when it came to zero dark thirty, argo, when the mission went much more flawlessly in real life than in the movie. And lincoln and the battle in the end in the house. As far as argo, its so funny you say that. There was no chase on the tarm tarmac. That didnt exist. When i talk to friends that knew what happened and were actually around when that happened, they said, actually, it went off without a hitch. It was flawless. You couldnt do a movie. Unfortunately, the much Bigger Mission of that period was the big disaster. Which was the attempt to free the american hostages. The true story was the canadian version, and that was dull as hell. The american version was fun. Its the ultimate reality, the bigger reality was horrendous disaster on every count. So why are movies still you know, weve been talking about how the Great Stories are not being told on television. And yet movies had hollywood had its biggest bx office year, and people are still transfixed. This is one of those few events. And theyre getting fewer and fewer every year, but this is one of those events where most a lot of america still stops and gets in front of the tv set and watches. Why . Well, i think first of all, theyre Great Stories told by terrific storytellers, but were fools if we take it to be journalism or history as such or scholarship. Absolute fools. You know, john ford did a movie on lincoln, we would never substitute that for Doris Kerns Goodwin history on lincoln. These are movies. These are romanticized. Zero dark thirty. There you had the question of torture. You know, the filmmakers were pretending that this was real journalistic reality, real historic reality when, in fact, it was not. And i think they paid a price. I think the people that were voting on the oscars not that this is the most important issue in the world but torture is an incredibly important moral issue for the United States, and i think those filmmakers paid a price. By the way, people in the Intelligence Community that knew what happened, its very interesting, weve heard one side of the story where the left is saying hey, there are parts of this that just around accurate. There are people that were actually involved in the process that say hey, theyve got us carrying people around in dog collars . Theyve mixed what we do, you know, and having them in dark dungeons when actually they were very clean, you know. John mccain is not the left. John mccain had real problems with this. John mccain is another issue altogether on the subject. Im not going to go there. Im just saying, i agree with your point. We havent heard the other side of this also, chris, which is theres some abu ghraib in zero dark thirty. And i think coming both ways, this is a movie that wasnt going to win it at the end because of the backlash. Yeah. I think i think the Academy Awards you were saying is really our second great mood ring, like our president ial elections. They really tell us so much about ourselves. They focus on race in the two big movies. Django and lincoln. All about slavery. The first time ive ever seen a plantation since gone with the wind. This was realistic. I thought Seth Macfarlane brought back the old days of song and dance. And i know im oldtime on this, but i thought bob hope and Johnny Carson were fabulous. I know everybody likes billy crystal. He brought back show biz. He really tried. There were overthetop jokes about getting into lincolns heads. Coming back 50 years later singing goldfinger. I was trying to calculate it. The movie came out no, it was like 65. I saw it freshman year. Im telling you, it was old. 50 years ago. They call her the tom jones of tiger bay. Shes an amazing figure. And Barbra Streisand coming back doing the way we were. What a great tribute that was. I thought it was great hollywood last night. Really rich. And its a great year for movies. Mike was hoping for Ursula Andress to make her big comeback. A tremendous year for movies. Every movie nominated was a terrific movie. The interesting aspect one of the interesting aspects, to your point, david, we got all caught up, a lot of us, over the last five or six months on the historical narratives in the movies. It caused me to think maybe were doing that because we live in a culture and a country now where very few people really pay indepth attention to Current Events in history on many sad occasions is so poorly taught by schools. The height of this kind of debate came with the jfk movie by oliver stone which was lunacy. Conspiracy thinking at the lowest level. And yet theres no doubt about it, oliver stone knows what hes doing as a filmmaker. You couldnt not watch that thing. And i understand we shouldnt get our history there, but unfortunately a lot of people do. This is not only how americans see ourselves sometimes. This is how the world sees america. The impact, the power, the soft power. You want to talk about soft power. All the satellite dishes in the arab world. I think its true. But i dont think we should hold film i think filmmakers should be held to the terms that theyre doing it on. If the filmmakers of zero dark thirty tell us that this is the absolute historical journalistic truth, then their feet ought to be held to the fire. I didnt say it was anybody in particular. They claim that was kennedy. By the way, the best movies ever are not really ak are rccurate. Laurence of arabia is my favorite movie. Tv laurence wasnt even accurate was the basis for that film. You cant improve on that movie. Biographys coming back, i noti notice, jon meachams books, oreillys books, anything on biography now, i think hes going to what do you call it jumping the shark, now were going to killing jesus. I dont think thats going to work. Oh, no, it will work. It will sell. I think its the same oreilly book club. Okay. Shall we try and squeeze a little bit of news in here . I just want to talk about this yahoo story. I love it. This is marissamayer. Did you hear about this . Shes told people who work at home to come back to work or to quit their jobs. Its the bottom line. Insiders say that there are a lot of people who werent productive who were working at home and that shes, you know, taking a look at the company. And i think that theres a lot of people criticizing her, saying, are you kidding me . A mom telling people that they cant work at home . Having said that, how do you take a look at a company and restructure it . People say im going to work at home. Depending on what they do and depending on their circumstances and their the way they run themselves, some people get a lot more im going to ruin the day when i get back to the office today. But some people get a lot more done at home because theyre not schmoozing with their colleagues or going to lunch. And they really come through. Some people hold themselves up at the new yorker and do a piece at home in half the time if they had been schmoozing around the office. Exactly. It depends on the job. Yeah. I think if shes trying to make changes there and make it more productive, she does have to actually meet and see the employees that work for her. It could have perhaps been come in three days a week or started in a little bit more of a phasedin kind of way. But how fascinating. An i. T. Company that was on the cutting edge in the early 1990s are the ones that are that shes actually going against the tide, basically saying this is General Motors 1952. You come to the Assembly Line or you stay home. Absolutely. And when the web began, there was a lot of evangelical thinking about the web. Information wants to be free, for example, in my business. No, no, it really doesnt. It wants to be distributed very quickly, but it doesnt want to be free, because then you get bad information. People want to be paid for good journalism. We could all stay home and commute from wherever and we can all meet on skype in some way. And thats not quite as effective sometimes as getting six actual people in a room and hashing out a problem. Yeah. I dont think youd Want Congress on skype. Youve got to be collaborati collaborative. You have to actually be there to be collaborative. Last night i kept thinking about how people can be creative. You saw it in the film industry. Its all collaborative. And thats why they get that stuff done. Its an incredible effort. I think it depends. And thats whats so interesting is shes having a onesizefitsall approach. I can tell you i can tell you, i create better, i work better, i work longer when i can dress the way i want to dress. When you put me in a coat and a tie and sit me behind a desk all day, i promise you by 2 00, im going to start fading and have to stand up and inspire myself to get up and walk around and come back. I think everybodys different. Look at the movie lincoln. I bet you there were thousands of meetings and maybe effective meetings there. But tony kushner alone in a room. Right. Is the basis thats how things get written. People dont chat their way toward a masterpiece. The guy that did the filming made it look real. It looked real. It looked like it was happening in the 19th century. As they said in the magazine, it looked like an academic painting of the 19th century. Up next, a lot of news to cover. How might the sequestration cuts affect your town . Were going to talk to Oregon Governor about the realworld impact of washingtons latest deadline debacle along with dr. Jeffrey sachs. Youre watching morning joe brewed by starbucks. [ dad ] find it . Ya. Alright, another one just like that. Right in the old bucket. Good toss see thats much better that was good. You had your shoulder pointed, you kept your eyes on your target. Lets do it again watch me. Just like that one. [ male announcer ] the durability of the volkswagen passat. Pass down something he will be grateful for. Good arm. Thats the power of german engineering. Back to you. But at xerox weve embraced a new role. Working behind the scenes to provide companies with services. Like helping hr departments manage benefits and pensions for over 11 million employees. Reducing document costs by up to 30 . And processing 421 billion dollars in accounts payables each year. Helping thousands of companies simplify how work gets done. Hows that for an encore . With xerox, youre ready for real business. There are literally teachers now who are getting pink slips, who are getting notices that they cant come back this fall. Were not making this up, david, and were not making this up in order to put pain on the American People. We are required to cut a billion dollars. Senator coburn, is the president exaggerating the impact of these cuts . Absolutely. Its a terrible way to cut spending. I dont disagree with that. But to not cut 2. 5 out of the total budget over a year when its twice the size it was ten years ago, give me a break. All right. Joining us now from washington, democratic everyone goer from oron, governor john kitzhaber. And here in new york, the director of the Earth Institute at columbia university, economist dr. Jeffrey sachs. Good to have you on board. We have Chris Mathews and david r ech remnick still with us. Governor, the white house is certainly being accused strongly of fearmongering and scare tactics as it pertains to the sequester which i guess goes into effect this friday. What do you think the direct impact will be, and are they scare tactics . Well, first of all, i have to say the very fact that we have a sequester represented smz kind of major failure in governance. I think this rhetoric around the sequester is a diversion from what we really ought to be talking about, which is the longterm debt reduction. And thats being driven largely by medicare and medicaid. I can tell you the growing cost of medicaid for every governor is squeezing out a lot more teachers and a lot more ability to invest in things Like Mental Health and children and families than the sequester is ever going to do. Chris matthews. Well, what do you think is more important, to deal with the longterm health care thing right now, or how do you get to it . How do you force two parties to do what they dont want to do . Democrats say they dont want to do the cleanup in terms of cutting back on the cost curve until the other side does something on taxes. It seems to me theyre both valuable to do in themselves. Why is the other party asking them to do something valuable before they do something valuable . Thats what goes on in this town. Let me tell you about medicaid, the fact is that people who dont have Health Care Coverage end up in the emergency room. Then we end up treating a stroke in the hospital and those costs are shifted right back onto private sector employers. So first, if we dont address it, youre putting an additional burden on employers in a recession which doesnt make a lot of sense. Secondly, with the expansion of boatbody of new money is going to come into states, and those are going to support teachers and have a Ripple Effect in the economy. And most importantly by the way, it improves Peoples Health and reduces absenteeism and increases productivity. Theres a way to dramatically reduce the cost of medicaid without, in fact, dropping people from coverage and actually making them healthier. Thats what we ought to be working on. How much is the Current System crowd out right now investments in education, infrastructure . Im talking for you, for the purposes of this conversation, medicaid. We usually talk about medicare here, but youre exactly right. You talk to any governor, democrat or republican, they will tell you that medicaid is crowding out investment and so many other essential areas. So in oregon, our revenues are growing at about 4 a year. The cost of medicaid at about 5. 4 a year. And weve got a huge waiver from the Administration Last july and an investment of about 2 billion to fundamentally change the Business Model, that is reorganized financial incentives in the medicaid program, the estimates are that well save about 7 billion total over the next decade with this new delivery model. If you applied that to the Medicaid Programs across the nation, the decadelong savings are in excess of 1 trillion dollars. If youre looking for a trillion dollars, why dont we do it by making people healthier instead of this approach that everyone apparently says we dont want to do but somehow weve got to do it. It doesnt add up to me. Doesnt make sense. Governor, its jeff sachs. Youve been leading on Health Care Costs for a long time. What about outside of medicare and medicaid, just the Overall Health system . What do you see as the big priority to get the overall costs down . Its the same thing. Weve got a Business Model essentially that was designed back in the mid1960s. Youre rewarded by volume. Youre not rewarded by outcomes. And so you need to change the fundamental incentives in Business Model. Were actually doing that. Weve got 15 new coordinated Care Organizations operating around the state covering 90 of our medicaid population. And were committed to reducing medicaid costs inflation by 2 over the next two years, which translates literally into over 1 trillion in savings if every state did it. And the fact is, every governor in the state is facing exactly the same problem. This is something we actually have in common. You know, one of the things that strikes me about the National Governors association is that when governors get closer to d. C. , they begin to act more like congressmen rather than, you know, governors. We have some common problems that really we have to deal with together. Theres an opportunity here. All right. Governor john kitzhaber, thank you so much. Thank you, governor. You bet. Good to be here. We appreciate it. Jeff, the guy knows what hes talking about. We do. Weve got a 1950s, 1960s model where right now were rewarding volume instead of results. Actually, our Health Care System probably is a 1920s and 1940s model in some way. We never made the Health System work as a system. We dont even have the electronic records that almost all the other highincome countries are developing. Our system is just so overpriced, so inefficient. Medicare, medicaid pay a big price for it. But overall, were spending 18 of our National Income when other countries are spending 12 of their National Income to get the same results. So weve got a Health System that needs pretty deep reform. Thats pretty obvious. And david, obviously, you can get any governor on, whether its jerry brown, whether its rick scott, you can go as liberal or as conservative as you want. They all come to you and they talk about medicaid. Medicaids killing us. Absolutely. And yet washington does nothing on medicare and medicaid. Instead they keep going back, as he said, with a meat ax to Discretionary Spending, which is about 12, 13 of the budget. Havent we been reading stories lately, jeff, about a savings in medicare that have come through . You know, medicare started some ways to cut back on the fee for service. And they said if your patients return to the hospital, for example, within certain number of days, youre not getting twice the reimbursement. All of a sudden hospitals are finding ways to operate the Health System better, to take care that the patients take their medicine, to use Community Workers to improve the health care. So we have a system reform issue here. And i keep stressing, its not just medicare or medicaid. Thats about 5 of the 18 of national or its 5 Percentage Points of gnp, of National Income, compared to a much larger Health System completely out of control. So whats got to be done . What has to be done is that we need a system approach where instead of just paying service by service, test by service, duplication, fraud, doctors that own their mri imaging and just put all their patients through it that in general, you get reimbursed for a coverage of a person over a year or two or three. And then you take care about their health, not about how Many Services youre providing or how many duplicate images youre doing on an mri machine. Chris, were not tackling the central problem thats going to cause the great problems over the next 20, 30 years actually, next 10 or 20 years. Instead, were focusing on Discretionary Spending. Yeah. Because everybodys afraid to touch entitlements and try to reform entitlements in a way that would make a difference. So whos winning and losing this debate right now . Richard haass said he suspected the white house was a bit on the defensive for overreaching. Mike barnicle suggesting theyre using fear tactics. What do you think . Whos winning this . I think in the long run, the people that believe deeply in what theyre doing will win. I think the people on the conservative side, even the far right, the Tea Party People absolutely believe this is one consistent thing. They may be concerned about illegal immigration and defense, but their primary focus is Government Spending. They feel theres a leaky plumbing system. And the moneys just drifting away. Theyre just losing their wealth. What about swing voters . I think they think the conservatives might be right on this. Spending. I think defense the fact that were willing to sacrifice defense spending, in the interest of cutting overall spending, tells you a lot. The New York Times piece this morning is really telling. You and i were talking about it. A real hawk, a real defense contractor kind of guy saying no, ill take the cuts. Because weve got to cut Government Spending. I hear it all the time. I think its the one wellspring of conservative belief, its the one weakness the democrats have. Actually i wrote this back in the washington star in 72. Democrats ignored it, which is Government Spending. Theyve got to do something about it. And you think theyre still doing it . Democrats dont do windows. They dont do spending. Of course, republicans would never invent Social Security. Each party has its strengths. Democrats do not get up in the morning and think how can i save Government Spending . How can i help these old people . How can i help with education money . Thats what they think about in the morning. The trouble is the public goes to. They know who to go to. Go to republicans for tax cuts, democrats to make Social Security benefits all the way to the hill and make sure they get all the tests, mris, go to elm dids for that and go to republicans for tough defense and cutting spending. And they always get what they want. And the overall result is huge debts. But would you agree that the white house has put out a plan that does have cuts in it, or what do you make of these cuts . Zbloo the president has said i will do cuts and reform if you guys do tax reform. Loopholes. Yes. My question is if its a valuable thing to do, medicare, medicaid reform, do it. Okay, but whats hard about loopholes . The republicans dont want to do it. And they control the house. Okay. So you can talk all you want, but they control the house. Theyre not going to do it. I mean, i dont think theyre going to do it. I think theyre playing pretty tough on this. You think boehners going to all of a sudden push his right wing into raising taxes . He wont be there. I think hes holding it hostage right now. If theres a big enough deal, it will get done. But a big deals not going to happen. Nancy pelosi says we dont have a spending problem. She doesnt want to touch medicare. She doesnt want to touch medicaid. And republicans dont want to raise taxes. Until you get both sides deciding that the situation is so dire or Social Security. Or Social Security reform. I think overreaching right now, the thing that really is not credible is that these cuts have been cooked in books for almost two years. And the president s own budget has said, in advance, were going to have these cuts. So kind of the hysteria of the last week doesnt play very convincingly that all of a sudden oh, the new theater. Were going to have no government. Again, the president the president already had cuts going back to 2009. The president has for years had a budget in which Discretionary Spending in my view would cut too sharply. Now that its actually reaching reality, now hes blaming the other side. And thats exactly what chris was saying. Democrats dont do windows. And republicans never believe that proposed cuts four or five years out are ever going to come. You know why . Because when they do come, democratic president s act like Barack Obamas acting right now. That locusts are going to descend from the heavens, eat our flesh from our bones because we are doing what i said we were going to do four years ago. Heres my one deep concern. Its macroeconomic which is that if this happens, and we continue to scare people, like every couple months, the president called a manufactured crises, one after another, it is going to erode confidence by the consumer and by investment, and if we have a second dip and obama has a second term, as the signature of a second dip, nothing else is going to work. So i think if the republicans are into sabotage, theyre doing a good job. Havent we had republicans on our show that say they support closing loopholes and that would be the right thing to do . I thought we had. They say they have done it, raised taxes on the rich. Weve got to go to break. Well continue this conversation with everybody except David Remnick who has to go back to broadway. David, i want you to come back as soon as you can and talk about your trip to russia. Anytime. That would be a fascinating political dynamic. Boy, are they not in love with us. Are you going to write on that . I will. Thanks for having me. Coming, a major shakeup at the Catholic Church. That and much more straight ahead on morning joe. [ lorenzo ] im lorenzo. I work for 47 different companies. Well, technically i work for one. That company, the United States postal service® works for thousands of home businesses. Because at usps. Com® you can pay, print and have your packages picked up for free. I can even drop off free boxes. I wear a lot of hats. Well, technically i wear one. The u. S. Postal service®, no business too small. This week marks Pope Benedicts last as head of the Catholic Church. Benedict gave his final sunday blessing to a crowd of 100,000 followers yesterday in st. Peters square, telling them he will continue to serve god. It was benedicts secondtolast public appearance as pope. He will make his final address on wednesday before stepping down from the papacy thursday evening. The first pope to do so in 600 years. But even in his final days as pope, benedict cannot escape the controversies that have consumed much of his tenure. This morning Cardinal Keith obrien, the head of the church in scotland, has announced he will be stepping down amid accusations of inappropriate and intimate behavior with current and former priests. Chris matthews, a little bit of reaction from you. Its bad. It keeps going, huh . I grew up in the Catholic Church. Me, too. We didnt see any of this. We thought priests had given up on sex as part of the holy orders and gave up on money and sacrificed their lives. Those were the priests we knew, we thought. Now we see nothing but headlines of people who had no intention of doing that. They couldnt have. Coverup. And the coverup and the attempt to make the church look good, and it has made it look terrible. Chris matthews, thank you very much. It was great to have you on to talk politics and oscars. See you on hardball at 5 00 and 7 00 here on msnbc. Coming up, the chairman of the Homeland Security committee, congressman mike mccaul who says Immigration Reform is impossible without Border Security. Hes with us next. More morning joe when we come back. I have low testosterone. There, i said it. How did i know . Well, i didnt really. See, i figured low testosterone would decrease my sex drive. But when i started losing energy and became moody. Thats when i had an honest conversation with my doctor. We discussed all the symptoms. Then he gave me some blood tests. Showed it was low t. Thats it. It was a number not just me. [ male announcer ] today, men with low t have androgel 1. 62 testosterone gel . 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Turn it up [ male announcer ] in a clinical study, over 80 of treated men had their t levels restored to normal. Talk to your doctor about all your symptoms. Get the blood tests. Change your number. Turn it up. Androgel 1. 62 . Here with us now, chairman of the house Homeland Security committee, republican representative from texas, congressman michael mccaul. Good to have you on the show. Good morning. Thanks for having me. The reason hes here is two interesting. Fascinating. Hes a republican from austin, texas. Yes. And hes a texas republican whos also catholic. Oh. I dont know that i met, in my years in congress, a texas republican who is catholic. I just reach out to all walks of life, you know . I just assume, like me, youre southern baptist. Youre a congressman from the south, but not you. Irish catholic like Chris Matthews that just left. Was with the mayor last night, bloomberg. He wanted me to give you two gifts that i actually had for him, but i forgot. I left it in the room. One is a Texas Longhorn coffee mug. Oh, cool. I love the longhorns, especially when we play them in the National Championship game. My home city of austin, this is the big motto, keep austin weird. Its kind of ugly. I cant see joe wearing that. I want you to wear that. Will you, please . I dare you. I actually wrote a song one time called austin, texas. The opening lines were, i met a girl from austin, texas, who turned out to be an l. A. Man. Whats the deal with austin, texas . Please help this redneck understand. So i relate to this. And when i see austin, texas, im going to be wearing that shirt. Wear that baby down there. Thats great. Thank you. For the mug. You get the mug. He gets the shirt. It is a great mug. Seriously, i love when the crimson tide play the longhorns in National Championship games. We want to give a replica of that shirt for mckinnon. He already has one. He is weird. Made out of hemp. Lets talk a couple things. First of all, were talking about the sequester today. You are chairman, obviously, of Homeland Security committee. How would these cuts impact Homeland Security . Well, i think they would have a deep, deep cut. I think that sequester was never supposed to happen. It was the president s idea. We proposed two bills to replace sequester. And the senate has failed to act. I think, you know, the president has a lot of capital now. And i think that he should be coming to the congress and talking about not just a quarter piece of the pie but the three quarters that no ones talking about, and thats the entitlement reforms. This is a major driver of spending. And if were ever going to get this under control, thats what we need to tackle. If theres going to be a big deal, obviously both sides will have to come to the table. Democrats will have to come with entitlement reform. And republicans are going to have to come with tax reform that closes some loopholes. You think you could get enough republicans on board if theres a big enough package . Tax reform, were all for that, too. Closing loopholes. But again, lowering Interest Rates while doing that. I think thats what we would like to do. I know boehners tried to reach this big deal, grand bargain, and he feels like he got rolled under the bus by the president. So you would not be against closing loopholes . No, i think there are many and i think the speaker talked about doing just that. I think, you know, this can be done. This can be done. Those are the two components, entitlement reform, closing loopholes, bring down tax rates. You know, i was reading a book about john kennedy last night, and he advocates cutting taxes to getting the American Peoples economy going again. Rising tide floats all boats. And yet this president just raised taxes. Now he wants to raise them again. I dont think thats where his party should be going. Lets talk also about immigration. Obviously, youre concerned about borders. Were hearing that Immigration Reform is going to pass through. But you dont think it should pass unless Border Security is tightened. We had somebody from bloomberg, speaking of bloomberg, had somebody here last week saying that the crisis along the border is not as bad as it used to be because through attrition, a lot of Illegal Immigrants are going home. Its better. But its not secure. How much better is it . Give me some perspective. I was down there with mccain in arizona. And my counterpart in the senate, senator carper in arizona. Look, its better, but the technology piece is not down there. What i mean by that, the surveillance technology, integrated fix towers, were going to get a lot of equipment from afghanistan and iraq weve already paid for to redeploy to the southwest border. I think thats smart. The more we get that done, the more people on my side of the aisle will be more willing to have that debate about Immigration Reform that we need to have. I think we all recognize that. Knowing whos coming and going is critical if youre going to do a guest worker program. Which by the way right now the unions dont want the guest worker program. I think thats going to be part of the final package. You know whats so ironic, mike, is republicans right now are wary about Immigration Reform for a lot of reasons. They think its going to pass. But you talk to them about what scares them the most. Talk about the plan that reagan passed. Which was amnesty. And it actually attracted even more Illegal Immigrants after the reagan plan passed. He said, listen, if were going to pass reform, lets pass reform. But lets make sure we dont have a repeat of the reagan episode. Yeah. And what kind of a threshold are you looking for that youd feel comfortable with in terms of the technology that you were talking about . Youre going to have cutbacks. Youre going to lose Border Patrol agents. Youre going to lose feet on the ground, arent we . Well, i think a lot of this technology has already been budgeted for, which is the good news. I talked to the people at dhs about this. Those towers will be contracted will be on the ground by next february. These aerostats in afghanistan that weve already paid for, were going to bring them back. These are air assets to see whats going on on the ground. Yeah, we may have to appropriate more for this, but honestly, weve been doing this for too long. Its time to get it done. And i think it will advance the Immigration Reform debate. Congressman mike mccaul, we dont have enough time. He should come back. Come back. Come back. Im here for the 20th anniversary of the World Trade Center bombing. One of the first things i want to do as chairman is to come up to new york, meet with ray kelly, see the counterterrorism operations. And remember that fateful day and make sure that that never happens again. Thank you very much for coming on the show this morning. Thanks for having me. Good to meet you. Up next, mojo Football Frenzy with roger bennett. Youre watching morning joe brewed by starbucks. They see me rollin they hatin patrolling they tryin to catch me ridin dirty tryin to catch me ridin dirty tryin to [ woman ] hi there. Why do we always have to take your moms car . [ male announcer ] the security of an iihs top safety pick, the 2013 volkswagen tiguan. Thats the power of german engineering. Right now lease a 2013 tiguan for 219 a month. Right now lease a 2013 tiguan for 219 a month. Before i do any projects on on my own. St at angies list, youll find reviews written by people just like you. I love my contractor, and i am so thankful to angies list for bringing us together. Angies list reviews you can trust. From capital one. Boris earns unlimited rewards for his Small Business. Can i get the smith contract, please . Thank you. Thats three new paper shredders. [ boris ] put em on my spark card. [ garth ] boris Small Business earns 2 cash back on every purchase every day. Great businesses deserve unlimited rewards. Read back the chickens testimony, please. Buk, buk, bukka [ male announcer ] get the spark Business Card from capital one and earn unlimited rewards. Choose 2 cash back or double miles on every purchase every day. Told you id get half. Whats in your wallet . Told you id get half. Ive always kept my eye on her. But with so much health care noise, i didnt always watch out for myself. With unitedhealthcare, i get personalized information and rewards for addressing my health risks. But shes still going to give me a heart attack. Thats health in numbers. Unitedhealthcare. Welcome back to morning joe. Espn soccer analyst, roger bennett. Roger, how was your weekend . It was a wonderful weekend of football, joe. How did everton do . Joe, apart from everton it was a wonderful weekend. Capital one cup. The league cup final. What happened. It was like the n. I. T. It is a little bit in stages but it was beautiful this year because it was a clash of two cinderella runs. The pride of wales. They are a minor league team. It is like the toledo mud hens getting to the world finals. This was a bridge too far. Nathan dyer. Look at that two through the legs passes allowing british tabloid editors to do that pleased to meet you headline. Swansea city, first trophy in over 100 years of that history. Bradford city, go back to the grim textile town, knowing they are still the curlku second third in the chase after manchester united. Joe hart with the save. Hes a happy man. Manchester city soon capitalized. David silva, the little spanish munchkin working the angles like paing th pythagerus. David silver created the second goal. How about chelsea . It was good if you had the sound off, barnicle. Chelsea falling away. Manchester city 12 points behind. Manchester united. Can they close the gap, joe . 11 games to go. Absolutely not. Rafa is going to be fired. He is just a place holder. He is just a place holder. Talking about place holders, David Beckham, a wonderful moment for fans of the spice boys. Hes like soccers frank lautenberg. He just keeps going and going and going. Oh, my god, i have no idea what just happened. Wait a second. You just combined spice girls and frank lautenberg. What do you get when you mix them together . You get David Beckham. Thats talent. Roger bennett, thank you. Up next, hollywoods brightest stars light up the red carpet at the oscars. Well bring you the big winners next on morning joe. I moved here from russia and i gained weight because the portions were much larger. And i just felt like i needed to eat it all because it was so yummy. 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Suddenly, faraway places dont seem so. Far away. Sudthe people of bp made a doncommitment to the gulf. , and every day since, weve worked hard to keep it. Today, the beaches and gulf are open for everyone to enjoy. Weve shared what weve learned, so we can all produce energy more safely. Bps also committed to america. We support nearly twohundredfifty thousand jobs and invest more here than anywhere else. Were working to fuel america for generations to come. Our commitment has never been stronger. And now for the moment we have all been waiting for and the oscar goes to argo. Congratulations. Good morning. It is 8 00 on the east coast, 5 00 a. M. On the west coast. Do you know that it is time to wake up even if you are on the west coast and you were up very late last night at parties . Take a live look at new york city and have a cup of coffee. Welcome back to morning joe. Back to us on set, Mike Barnicle and richard haas. Obviously we have a lot to talk about. Coming up. The sequester, of course, thats coming down to the wire. But of course, it was the big night at the oscars that everyone is probably still talking about this morning, complete with some redemption for ben affleck. He and the crew of argo beat out films like lincoln and Silver Linings playbook to win best picture. But lincoln had its day in the son as daniel daylewis earned his Third Academy award for best actor, the most ever in that category. Jennifer lawrence took home the best actress oscar for her performance in Silver Linings playbook. She stumbled a bit on her way to the stage. I hate it when that happens but shes doing just fine. Absolutely. Oh, dont. Stop it what is wrong with you . Who would do that . Some sickos in the booth. Thats just mean . B. J. Is an infection. Alex, whos there . Come on. Lets keep going. Its t. J. Im going to fall down in front of the camera. I loved that movie. She was fantastic. I kind of had hoped that bradley would win but at the same time, there were it was a tough crowd. Tough crowd. Can we talk about go ahead. Tell us who wins. Then i want to talk about Seth Mcfarlane who got absolutely destroyed. Rounding up major Award Winners were Anne Hathaway who won best supporting actress and inspired a few new twitter sites last night. Christopher waltz who took home best supporting actor. Poor Seth Mcfarlane who i got to admit i dont really know. Never seen the guy really. I understand he does family guy and either you love family guy or you absolutely hate family guy. He did ted. I saw that bear last night. Was he that bad . I hate the smultsy stuff where they get up and play hollywood. It was edgy. Tremendously talented guy. He had an edge in his monologues. The song and dance, tremendously talented. Reminded me of you. I thought you have to remember, everyone hates everything on twitter. Of course. You can throw that out. I think he was just different and he was also hes not one of them. Do you know what i mean . So he comes into that room, theyre going, who is this guy . Mixed review. American dud. Okay. Lets show some of it because we have a lot of news to get to still. Hes from connecticut. Really . What part . Kent, connecticut. Rhode Island School of design and most interesting missed because he had a hangover had a hangover, missed one of the flights leaving boston on september 11th. Are you kidding me . Honest to god. Youre making this stuff up. I am not. Here are some highlights from last night. Argo tells the previously classified story about an american hostage rescue in postrevolutionary iran. The story was so top secret that the films director is unknown to the academy. Jennifer lawrence has a great attitude about this whole thing. This is a charming, talented woman. I was talking to her backstage, she toll me whether she wins or lose, it is just an honor that meryl streep wasnt nominated. Django unchained. Now that was an intense film. This is the story of a man fighting to get back his woman whos been subjected to unthinkable violence or as chris brown and rihanna call it, a date movie. Oh this is interesting. Daniel daylewis, not the first actor to be nominated for playing lincoln. Raymond massey portrayed him in 1940s abe lincoln in illinois. This is true. Yeah. I would argue, however, that the actor who really got inside lincolns head, a john wilkes booth. Really. 150 years and its still too soon. Huh . Yeah, it is. Jimmy kimmel had done a jfk joke at one time. It was the same punch line. Oh, 50 years later. So the second he started telling i was like okay, this is all about the too soon . Too soon . You still think it is too soon. Absolutely. Okay. Whatever. I think most people agree with you, by the way. He wasnt so horrible . He was just more conventional. They are as used to song and dance and hollywood. Seth can sing and dance but he give them what theyre used to seeing. The shatner stuff was something. Looking to get to the news now. Officials on the state level are trying to prepare for those acrosstheboard cuts set to kick in on friday. Automatic funding reductions known as sequestration that would slash 85 billion in spending. President obama meets with the nations governors at the white house today after the administration rolled out new details over the weekend describing what impact the cuts will have across the country. According to the report, the effects include tens of thousands of lost jobs, as well as fewer resources for education and the environment, but some republicans say the white house is more interested in scaring people than finding a solution. Senate coburn, is the president exaggerating the impact of these cuts . Absolutely. Its a terrible way to cut spending. I dont disagree with that. But to not cut 2. 5 out of the total budget over a year when its twice the size it was ten years ago . Give me a break. In politico by the way, there were tons of Opinion Pieces over the weekend on this. We pulled out a few here that really captured the conversation about this. Rich lowery writes about the great sequester panic. By the way, i said we have a brzezinski underlining and circling one of your columns . You may be making pretty good points. Doesnt mean i agree were it. I vehemently disagree with it. You said i cant say this on tv but this is a really great oped that i agree with 100 . I really didnt say that. Prepare for the end of food safety as we have known it. For a breakdown in public order, for little children languishing in ignorance. If only Edward Gibbon were here to chronicle the devastation. On march 1st, the fabric of our civilization begins to unwind. Thats when the economy begins to stall and we turn back on our values all because the federal government will have to begin to cut a few tens of billions of dollars from the largest budget the world has ever known over the next ten years. The sequester amounts to a 1. 16 trillion cut, or roughly 3 cents on every federal dollar. If we cant squeeze a couple of pennies out of every dollar, we might as well begin our Great National bankruptcy proceedings. Right now. Its hard to see how a cut of a little more than 40 billion this year can possibly tank a 16 trillion economy. What i do agree with is how can you not cut 85 billion responsibly . How can they not come together and figure this out . By the way, take what rich said, combine that with what tom coburn said talking about how the budget has doubled over the past decade. Really what we are talking about is we cant take 3 cents out of 1 today, but putting it in historical perspective, thats 3 cents out of a hyperinflated dollar. If that dollar were talking about is federal spending which has exploded at obscene rates under barack obama and george w. Bush. You can at the macro sense and it is not go to sink the overall economy. Again, over ten years. A trillion dollars roughly over ten years. 80 billion over a year. It is only on Discretionary Spending so you put off to the side most of the budget as you know, entitlements and everything else. Even within Discretionary Spending it is quite limited. Depending on, for example, you cant touch personnel accounts and all that. So it will have more impact than it should. Will it sink the economy . No. Is it a smart way to run this airline called the United States . Absolutely not. Peggy noonan writes also in the i thought wall street journal, i thought it was fascinating. Government by fraekout. Republicans on the hill of course are being cast as nihilists in the drama as the ones who want to blow things up. But is that even remotely fair . They just lost a battle on taxes, they fought, got their heads handed to them and accepted an increase in rates. What they are saying now to the president is, okay, we gave you tax increases, dont demand more right now. Work with us on spending cuts and a broad and coherent tax reform plan. Dont do the kind of small, targeted loophole closing thats just meant to torment us. Do something more solid and comprehensive and, yes, lets move to do what we can on entitlement spending. It is this one terrible, terrible small, evil man who is stopping goodness and justice from prevailing in americas budgetary wars. When they had him, his worked. Hes no longer on the stage and this whole tax cuts for the rich boogie man loopholes. Has also been taken off the stage because we had this battle in december and republicans, as peggy said, get their head handed to them. Out in president comes back and says we can only tax the rich, but these republicans dont want to by the way, they want to slash and burn the budget. See, democrats are on thin ice. I think, personally, on this argument. To say the worlds coming to an end . Everybody knows that bush spent way too much. Everybody knows barack obama spent way too much. I dont think they buy this argument. On a gut level. Yeah. I think youre right on most counts on that part of it. Its not going to tank the economy. Its just not. But there are real world impacts immediately. Some people will be furloughed. Some people will work four days out of the week instead of five. There are things that will happen in the short term but in the larger question, it is not going to tank the economy. The bigger thing to me is that we put this in as something so draconian, something so terrible that theres no way we could ever go there and it would force the hand of our elected officials to do something about the deficit. So again, if this doesnt do it and its not going to do it. The sequester is going to go in some form by the time we hit friday. What will . If they put in poison pills that dont kill them, what will change anything . How fascinating over the weekend. A sort of subplot going on here. It was a battle between bob woodward and the white house. We just talked about these draconian cuts. The white house said it wasnt our idea. Bob booed ward said, well, actually, yes it was, and i have you guys on the record telling me before that it was jack lus idea. Woodward wrote this all down this weekend where the president said in the debate, sequester wasnt my idea, it was the republicanss a idea. This past week woodward coming out, made him back down. This was actually hatched to the white house. Then have you the white house lobbing rhetorical bombs back at woodward. I have a list of the national who are roars that are going to occur once sequestration takes aeffect according to the administration released last night. Look. You get the sense they have oversold fear. People are not buying the fear. Whos they . The white house. Theyve oversold fear with regard to sequestration. The other thing thats going on here it is a pox on both their houses people arent afraid of the dismantling of the economy so much as they are afraid of who are these people in washington . Why can they get nothing done on any thing . Coming up on morning joe, the soundtrack of his life. Legendary recording executive and music producer, clive davis, is here with his new memoir. A cantmiss for all music fans. But first, governor bobby jindal has this advice for the president. Stop the campaigning, stop sending out your cabinet secretaries to scare the American People. Thank you for that. Up next, well bring in transportation secretary ray lahood to scare the American People. He said planes are going to break in half. You take off and it is going to be like hope that Denzel Washington is flying the plane. Arguing that something you agreed to is now scare tactics is very silly. It is a silly lets not set up this. Ray is going to be just fine. Hes coming up here on morning joe. Many cereals say theyre good for your heart, but did you know theres a cereal thats recommended by doctors . Its post shredded wheat. Recommended by nine out of ten doctors to help reduce the risk of heart disease. Post shredded wheat is made with only one ingredient one hundred percent whole grain wheat, with no added sugar or salt. Try adding fruit for more Health Benefits and more taste in your bowl. Its the ideal way to start your heart healthy day. Try post shredded wheat. This has been medifacts for post shredded wheat. Try post shredded wheat. for those nights when its more than a bad dream, be ready. For the days when you get a sudden call from the school, be ready. For the times you need to doublecheck the temperature on the thermometer, be ready. When you have childrens motrin on hand, youre ready. For high fever, nothing works faster or lasts longer than childrens motrin. Be ready with childrens motrin. Ya. Alright, another one just like that. Right in the old bucket. Good toss see thats much better that was good. You had your shoulder pointed, you kept your eyes on your target. Lets do it again watch me. Just like that one. [ male announcer ] the durability of the volkswagen passat. Pass down something he will be grateful for. Good arm. Thats the power of german engineering. Back to you. There are literally teachers now getting pink slips, getting notices they cant come back this fall. Were not making this up, david, and were not making this up in order to put pain on the American People. We are required to cut a billion dollars. What do you make of secretary lahood, a republican, blaming republicans for this . Shame on ray lahood. No. Listen. I understand. But i think theres a bob woodward piece in the post this morning that gives the ticktock about who really the idea for sequestration was. And we know whose now it was. It came from the white house and the president s aides. 19 past the hour. Joining us now from washington, the secretary of transportation, ray lahood. Also with us, assistant editor and columnist for the financial time times, jillian tett. Mr. Secretary, how seriously should we take how were going to feel these cuts if they go into effect . Well, look at when it comes to transportation, we have to cut a billion dollars. 600 million from faa. Thats why we announced there will be a slowdown and delays from flights. Well have to furlough air Traffic Controllers which is the largest number of people at the faa. Were not doing this because we like it, we are doing it because we are required do it. It is in the law so were sending up a warning flare, not to scare anybody but just so that people understand there are consequences to this sequester and it can all be avoided if people in both parties would embrace the president s plan, which is well over 86 billion in savings and take a look at the president s plan. It is a good one. It saves the money that needs to be saved and it doesnt take a meat axe approach. I think some of the republicans dont agree, they have issues with taxes and feel like theyve been rolled on in the past and dont want that handed to them again. Stla a fair argument and that the white house is now using scare tactics to corner them . Were not using scare tactics, mika. Were sending up warning flares to people that these cuts have consequences and heres what the consequences are. Thats what weve put out. Not to scare people, but just as a warning that there are consequences. This all can be avoided the president has a plan. It cuts well over 86 billion. Republicans should take a look at it, move towards it. If they dont like it, sit down and talk about it. Theres still time. We have a week now. All these members of congress are coming back from their districts and they have a chance this week to meet halfway and work this out. The way they did with the financial cliff, by the way. Mike barnicle. Mr. Secretary, your name was on the ballot for many years and im sure you realize that many people in your old district and around this country look at this issue and look at the conversation on both sides of the aisle over the past couple of weeks and wonder about competence and governance and people in washington being consistently unable to get anything done. The larger issue of anybody with a family and a checkbook cant figure out, you people cant take 3 cents out of every federal dollar . You cant do this without gutting Vital Services . Where is the competence here on both sides . Is there any . Of course there is, mike. And look i go back to what i said before. The president has put out a plan and it cuts well over the amount that sequester is requiring. And look at, if republicans dont like that, come to the table. Lets have a discussion the way that we did so we averred the financial cliff. This can be done. Its been done in the past and theres a plan there. Its a pretty good plan. If you dont like some parts of it, then lets talk about it. But there has to be a discussion this week so that people do have the confidence in their leaders that these things can be avoided. You think something as going to get done this week . I do, mike. I really do. Im optimistic about this. I just think there is an lot of share pain thats going to take place starting on march 1st if this sequester goes in. I dont think anybody really wants that to happen. All right, secretary ray lahood, thank you very much. Thank you. Jillian, are we going to have a deal . I think hes overly optimistic. One thing i would say, when you look at this airline issue, it strikes me as a lot of Political Drama and theater involved in this. The thing about airline or queues at airports, theyre very visible. They make great television. Checks going out to the unemployed doesnt actually make great television. But theres nothing like having crowded airports bringing emmemories of 9 11 to get people panic stricken. I think it is 5050 whether they get a deal at the end of the week. I dont know if you saw jeff saxs chart. It is fascinating. The chart actually shows that even with the sequester cuts, Discretionary Spending will be love what the president projected in his own budget in 2009. As a percentage of gdp. Which means that all of this terror that were hearing about, it seems like it is all cooked up. Not to reference another network, but Candy Crowley pointed out in her earlier interview with lahood that even if they cut all the budget theyre still 500 million above they they were four, five years ago. In terms of whether there will be a sequester, my biggest fear is that theyre going to find some sort of deferral agreement and were going to have this conversation multiple times. Even if this goes into sequester, it doesnt solve any of the big problems we have in the macro. Mike, spending is double as tom coburn said over the past decade. Government spending in these areas doubled. 500 million more now spent than we were spending several years ago. And were told this is the end of the world if we cut 3 cents out of every dollar, a dollar that has been hyperinflated over the past decade in Government Spending. What is going to happen, what is going to be the mindset, sequester occurs march 1st and it continues for a period of weeks and months as they argue back and forth and nothing really much happens to daily life in america . Unless we get those airport queues. You really think that would be the catalyst to get this turned around . No. But i think if youre trying to use something to demonstrate call me a cynic. By the way, we have to be really careful about that. Because you know what . Thats the sort of thing that a staffer suggests thats two cubed by half. Then someone starts figuring out how they moved tsa employees around to make lines longer in new york, washington, chicago, los angeles. And then suddenly it blows up on the administration. It will make great tv but i dont think it will have the residual effect that they perhaps diabolically are planning on. Because if youve lost your job, if youre working a job that pays you twothirds of what you were making four years ago and you are you a lucky to have that job, youre not flying anywhere. Youre driving to the Grocery Store and youre damn glad that you can pay the grocery bill. People standing in line to go to orlando or chicago . You say i dont care about them. The other thing to look for right now, apart from these whole Political Drama is what the market is going to do and the rating agencies are going do. It is worth remembering over the weekend we had one shock in europe in terms of rating agencies downgrading the uk. The u. S. Has already been downgraded but there could be a lot more debate on that issue which is going to affect the whole debt dramas, too. All right. So bringing it down to every day life and our wallets, brian, you are looking at a study of habits, spending habits. Bank rate says that 24 of america has more Credit Card Debt than money in the bank and 16 have neither. So basically 40 of the population are in jeopardy of complete failure any moment and 60 are doing just fine. And so thats why i want to bring it full circle to whether it is gas prices coming together with a payroll tax hike, youre not going to know if sequester kicks in and people lose jobs, you wont know exactly where the pain is inflicted so it will be this pointing finger roundtable of whats hurting the consumer. But the irony there is, if you look at Credit Card Debt right now, actually credit card balances overall are back where they were ten years ago because americans have actually paid off a lot of debt already. Many ordinary consumers are saying weve got control of our household finances, why cant congress . Coming up, did the president propose even deeper cuts in his budgets than whats on the table in the sequester . Economist dr. Jeffrey sax rejoins the table with some numbers that could change the budget debate. Also ahead, Legendary Music producer clive davis is standing by in the green room. Hell join the conversation ahead on morning joe. [ male announcer ] you are a business pro. Executor of efficiency. You can spot an amateur from a mile away. While going shoeless and metalfree in seconds. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. Now this. Will work. [ male announcer ] just like you, business pro. Just like you. Go national. Go like a pro. Were dedicated to getting you back on track from identity theft. To protect you from being a victim in the first place, we have specialists for that, too. [ alarm blaring ] [ lasers zapping ] yep. We make a pretty good team. [ male announcer ] call 1800lifelock or go to lifelock. Com today. Welcome back to morning joe. Jeffrey, you brought some charts with you this morning but also some fascinating information about the Hidden History of the budget. Tell us about it. We have these cuts coming on march 1 and theres a lot of hysteria about them. But the point is theyve been cooked in the books for years. This whole decline of Discretionary Spending was part of the first obama budget. It is part of the second one. Part of the 2012 plan. Now that its actually happening, theres a lot of screaming about it. I dont think these wait, wait. So if you look at this chart, actual lit president s plan in 2009 actually had cuts going even lower than the cuts that well have if the sequester goes through. Yeah. This is a chart showing the level of Discretionary Spending measured as a share of National Income. And the president already said back in 2009 that that discretionary budget is a share of National Income would go down sharply. I dont think thats the right policy but that was the policy. The reason it was the policy is the president wanted to campaign on making permanent almost almost of the bush era tax cuts. If you do that, you you cant afford Discretionary Spending. If also you dont solve some of the other problems. So the point is that the cuts that were having have been a little bit preordained. It is not a matter of suddenly waking up and seeing this terrible thing. Weve had we havent had the kind of leadership to get us out of this mess for years. You look at the chart, the president s been planning this for four years. So do you agree with those that would say the sequester is a bad thing, like tom coburn, for instance . But given the choice of having cutting 2 , 2. 5 of the budget or doing nothing, it is better to cut 2. 5 of the budget this year . I didnt agree with the deal made on new years day to make permanent tax cuts that we couldnt afford. Once you decided to do that, then you gave up 4 trillion of revenues and then you dont vp money to spend on things we need. Big surprise. So we made decisions that didnt make sense. Dr. Jeffrey sachs, thanks. Well be right back. But we can still help you see your big picture. With the fidelity guided portfolio summary, you choose which accounts to track and use fidelitys analytics to spot trends, gain insights, and figure out what you want to do next. All in one place. Im Meredith Stoddard and i helped create the fidelity guided portfolio summary. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. How do you keep an older car running like new . You ask a ford customer. 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With xerox, youre ready for real business. Welcome back to morning joe. Here with us now, the man behind powerhouse voices like Janice Joplin, Whitney Houston and bruce springsteen, music mogul and chief creative officer of sony music entertainment, clive davis. Also the author of the new book the soundtrack of my life. It is such a pleasure to have you on the show. My daughters an i watch you on idol. Youve reached a new generation of tweens. They may not appreciate this picture as much as mike and i would right here. Three boys from the outer boroughs right there with simon and garfunkel, 1970. But your career is remarkable and it started in a remarkable way. You went to the monterey pop festival where janice and so many others just exploded on to the scenes. And that was your first big find, wasnt it . That was my first test. I came from not a musical background and through a political reorganization i was a lawyer for columbia and i was made president overnight and when you do that thats a good jump, isnt it . You observe, then a year later i thought i was going to be entertained and i found myself in the midst of a musical cultural revolution. Im on those fairground in the midst of haightashbury and Janice Joplin and big brother and the Holding Company holds on. She was this vibrating, electrifying, compelling white soul sister. If the word epiphany is going to mean anything, for me it was i had to make my first creative move. There were no other executives there. I had to sign my first artist. What was your hunch about going to monterey . Everybody talks about woodstock. Yes, that was a watershed event but that really marked the end of an era. Monterey, the festival that you went to i had a record, it was the first record, hit, that i had. If you go to San Francisco, be sure to wear flowers in your hair. That was a hint that what was going on at haightashbury in San Francisco. I really went there expecting to see the mamas and papas, to see simon and garfunkel. I was not prepared for the musical revolution of the electification of the guitar, groups like the electric flag, the who, jimi hendrix and this brandnew group featuring Janice Joplin. So it changed the rest of my life. But, you know, as you indicated, you went to harvard law school. Yes. You grew up probably walking down the street singing frankie valley songs and Frank Sinatra factor in brooklyn. Not just harvard law school. So what is it . What was it within you that youre at the Monterey Music festival and haightashbury and you hear the San Francisco songs and you hear these groups and electric guitars. What was in you that enabled you to say it was an undiscovered gift that was going to prove itself over the years that i saw this artist, and whether its cliche or not, i got this tingle in my spine. I felt it and it was just something that was to come again and again over the years. But she was the first one and i bought her contract. And when she and big brother a year later was making it, by that time i signed blood, sweat and tears, few months later santana, and i started to trust obviously my track record was starting to unfold and you trusted your instincts. You cant buy that. People ask where that comes from. Whether its music, whether its movies, whether its tv. You either have the gut or you dont have the gut. How many executives have we all seen, whether whatever media world it is where they just wring their hands and theyre trying to guess and they spend all their time saying im going to pick this person but if they fail i can blame such and such because they dont have the gut. Thats true. When did you first figure out, okay, i got this. As i was just saying, when a year later i unveiled because i kept it quiet that i had signed blood, sweat and tears and janice and they started to make it more through the fm underground. And then very soon thereafter came carlos, the santana band, and chicago, Johnny Winter and edgar winter and earth, wind and fire so that i felt that i might have an unexplored natural gift. These werent safe picks either. I mean blood, sweat and tears, a band i love. But you wouldnt say, you know what . Thats the next big thing. And when i die, so many great songs. Spinning wheel. Amazing. Look at this picture right here. A young Whitney Houston when shes signing, mika. Tell us about the loss of Whitney Houston. She was quite a superstar. I signed whitney when she was 19. I immediately brought her on national tv on the merv griffin show. I said that for the next generation she would be the big, big new talent. So that from then on, she was just not an artist that i signed in my administration. I found with my staff every song that whitney recorded. So we went through the heights of an incredible career breaking every single record at every stage. Obviously we all know that she fell victim to drugs, powerful, lethal force. I describe in my book how i both approached her, reasoned with her, wrote to her. And you learn, helplessly, that until the subject falls to a certain level, theyve got to help themselves. I was with her two days, three days before she died. We had a fabulous afternoon, playing music as we always did for each other. Neither of us could possibly have comprehended that she was flirting with death. You know, thats whats fascinating. Right . Have you this special ear to recognize a great talent, but there is the whole element of managing and involving yourself with that talent as they go through their careers. Right . Theres two things. Recognizing the greatness, then helping it steward itself through their life. Whats different between the Janice Joplin era and managing that talent and managing talent in 2013 . Because people talk about the entitlement generation and all these other things. But is it really that different . For a record company, im not a manager. Im very involved, more involved if im dealing with entertainers that need me for material as compared to selfcontained orders to write their own material. And there you wait. I had you wait for a patty smith whom i also signed or currently an a alicia keys, a young renaissance great talent so that there isnt difference as i interact with them. I mean you dont get into their personal life unless there is a crisis that develops. So given how the Music Industry has changed, do you have any you may not any advice for parents of struggling up and coming song writers or singers . I speak as one myself. I view music very positively. Youre dwelling on it from a tragedy and i understand that. And there have been a few. But i dont think it is endemic im actually just tryi talkig about trying to break in. How do you tell a child that wants to break in. Lifes been very good to me. Ive endowed a student in my name so students can study music. I always envied those that studies movies at usc or nyu. At nyu there is this institute to train them, to get as much input. If music is part of the passion of your child, let it flow. I mean and see where it takes you. Its been an incredible career for me. On the other hand, if its a mediocre talent thats just ambitious, you youve got to be able to guide that, because music, show business, is very seductive and you can waste an awful lot of your life pursuing something thats just okay for you. So you really have got to be on top and be realistic, not be a stage parent but really see if youve got a gifted child. Fantastic advice. Im going to get serious about tv. I keep thinking im going to break through. I need to go to school. He wants toob songwriter. Ive heard that. Its true. You know what . Im going to get serious and get another career. The new book is the soundtrack of my life. Clive davis. Thank you so much how exciting. Thank you for being here. Great honor. Well thank you so much. Coming up next, oh, god, things go downhill from here. Lewis schmoozes his way on to the red carpet. I dont even want to tell you what he did to get to the red carpet at the Vanity Fair Oscar party. We never got to. My health risks. But shes still going to give me a heart attack. Thats health in numbers. Unitedhealthcare. A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . Ya. Alright, another one just like that. Right in the old bucket. Good toss see thats much better that was good. You had your shoulder pointed, you kept your eyes on your target. Lets do it again watch me. Just like that one. [ male announcer ] the durability of the volkswagen passat. Pass down something he will be grateful for. Good arm. Thats the power of german engineering. Back to you. And as we were looking through the photos i realized there were none of me. And i said something needs to change. Weight watchers gives me everything that i could possibly need to be successful. It teaches you how to live in the real world. I dont feel hungry and deprived on Weight Watchers. People say to me, how can you eat all that and be your size . Ive lost 87 lbs. On Weight Watchers. So i can be the katie that i knew was there all along. Now, she can shine. [ hudson ] introducing the new Weight Watchers 360 program. Built for human nature. Join for free and expect amazing. Because it works. Watch this alakazam [ male announcer ] staples has always made Getting Office supplies easy. Another laptop . Dont ask. Disappear abracadabra alakazam [ male announcer ] and now were making it easier to get everything for your business. And for my greatest trick enough [ male announcer ] because whatever you need, well have it or find it, and get it to you fast. Staples. That was easy. After last nights awards were handed out, the stars were all headed to the Vanity Fair Oscar party and somehow lewis got past security. Hes out of control. Hes out of control. Lewis, what are you doing . Seriously . All right. Heres lewis on the red carpet. Pretty boy lew. Im at the Vanity Fair Oscars afterparty. Most exclusive party in hollywood. And of course, im on the list. Joe and mika, miss you guys. Why arent you out here with us . Theyre not here in. We love morning joe. Mika, the only reason im doing this is for you. We all love mika. Joe, mika, hugs. Hello, morning joe. We won six oscars wait, we won six oscars but we feel like we won six oscars. I watch morning joe every morning. I always liked joe. Hes smart. You can photo bomb any celebrity tonight, who would it be . Thats a really good question. Photo bomb means you stick your head in the back. Liam neesan . Liam neesan . Thats a good one. Jennifer lawrence. Probably daniel daylewis. Daniel daylewis. I already got a good picture of him. I love him. Maybe daniel daylewis if hes dressed as lincoln. We did a little Something Like that. Just like that. You got it. I cried like a baby when ben affleck and argo won. Incredible, incredible speech, ben. I didnt think he had a shot. Id say les mis. I was very moved by ben afflecks last speech. Im going argo, argo, argo, argo. In story sessions for the next decade or so, people are going to be referencing movies. Theyll say remember how they handled that moment in lincoln . Its steve martin. Steve martin is calling. Yeah, steve. Im doing an interview with morning joe. Im on the red carpet. How do you feel to have been innen Anne Hathaways speech . She totally deserves that oscar. I thought you and i could dont be ridiculous. Do a little picture. Oh, my lord too soon . Too soon . Hey, that was a good pack. Talking about the little guy. Lewis, how about our lewis what a great job he did. I want to know how many takes if did he that, i want to know the ratio of people no to yes for pictures. How many autographs do you think he asked for . I dont know but hes still probably trying to follow Allison Williams around this morning. Probably got a cab, followed her, figured out where shes staying. She made a bad mistake talking to him. How bolong does it take to g a restraining order in l. A. County . Brian williams is going to find out right now. Brians calling the lawyers in l. A. Up next, what, if anything, did we learn today . We are looking at another winter storm moving in to the plains. The second one in just a week and we have heavy snow likely across oklahoma and northern texas. That area could end up with about a foot of snow over the course of today and tonight. Elsewhere, boston about 38 degrees today. New york city, 47. Atlanta could see some strong storms later on this afternoon. ] you are a business pro. Omnipotent of opportunity. You know how to mix business. With business. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above. And still pay the midsize price. I could get used to this. [ male announcer ] yes, you could business pro. Yes, you could. Go national. Go like a pro. Many cereals say theyre good for your heart, but did you know theres a cereal thats recommended by doctors . Its post shredded wheat. Recommended by nine out of ten doctors to help reduce the risk of heart disease. Post shredded wheat is made with only one ingredient one hundred percent whole grain wheat, with no added sugar or salt. Try adding fruit for more Health Benefits and more taste in your bowl. Its the ideal way to start your heart healthy day. Try post shredded wheat. This has been medifacts for post shredded wheat. Try post shredded wheat. Peoi go to angies listt for to gauge whether or not the projects will be done in a timely fashion and within budget. Angies list members can tell you which provider is the best in town. Youll find reviews on everything from home repair to healthcare. 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The fall on the way up to the stage. Was that on purpose . Absolutely. What happened . What do you mean what happened . Look at my dress. I tried to walk up stairs in this dress. Thats what happened. What was going through your mind when your foot what went through my mind when i fell down . A bad word that i cant say. That starts with f. Wow. Adorable. Isnt she something . Yeah. How great. Handled it well. What did you learn today . I actually learned that you can use senator lautenberg and David Beckham in the same sentence. That was fascinating. Mix them all together and what do you get . Actually spice girls. Frank lautenberg, put them in a pot, mix them up and you get David Beckham. Mike . I learn that i remain, right now, stunned at lewis piece. Stunned. Stunned. Wasnt it great . He did a great job. The guy had to be doing it all night. 3 00 w4b 00 th 3 3 00, 4 00 this morning