with "time" magazine's nancy gibbs and michael duffy and our exclusive guest, house speaker john boehner. i'm candy crowley, and this is "state of the union." mr. speaker, primo view, great digs. nice to see you. >> nice to see you. >> how many days have you thought, did i actually want this job? >> a lot. >> big headaches. mr. speaker, thank you for joining us. let me start right out with the week's story, which is the student loans. the president has issued a veto threat and said if this keeping the student loan rates low comes to me with money paid for by money that comes out of the health care bill, i'm going to veto it. your move. >> this problem was created by a democrat congress in 2007, and democrats and republicans for months have been working together to try to figure out a way to resolve the problem. and for the president to politicize this for his own re-election is picking a fight where one doesn't exist. >> so you're arguing about how to pay for it and he says if it comes paid for by money out of the health care bill, it's not going to happen. >> then why did his budget director and the president put in the budget reductions in spending in this program? why did the president sign into law the payroll tax cut that included $4 billion worth of reductions in the same program? >> taking it out of the same fund that you want to take it out of? >> the same fund. >> perhaps it's gone low enough. i mean let's just talk imagery here. we have nancy pelosi out there saying, well, they want to protect the big oil companies because they want to pay for the student loan interest rates by closing loopholes in the oil industry and we want to protect women's health. we want to prevented breast cancer and cervical cancer and that's what this fund is for. >> that is just nonsense. there's no women's health issue here. >> it's a preventive fund, isn't it? >> i'll guarantee you that they've not spent a dime out of this fund dealing with anything to do with women's health. listen, what we're trying to do here is to deal with this problem in a responsible way. democrats and republicans have been working together to get this resolved, and i believe that we will. if the senate wants to do a different pay for, that will be up to them. but we'll have this issue resolved. but of all the places and all the trillions of dollars that the government spends, for you all to zero in on something in the health care bill, is that not in itself political because you all don't want this health care bill -- >> the president's own budget called for reductions in spending in this fund. so why would they have done that if it wasn't available to use as an offset to make sure the student loan interest rates don't go up? >> i want to ask you. there was a cbs poll this week, and it asked americans, what's the best way to promote economic growth. 56% of all americans said spend more and raise taxes. only 37% said lower taxes and cut spending. have you lost this war? >> no. the american people are still asking the question, "where are the jobs?" and it's clear that the president's economic policies have failed. and as a result, he's turned to the politics of envy and division. the way we help the middle class is we get our economy going again. we develop more american oil and gas so that their gas prices, which have doubled under president obama, are again reasonable. how do we do that? we stop the regulatory juggernaut that's going on downtown here in washington. every federal agency of the federal government scaring every employer to dickens and they're afraid to have left. would you agree that politically, you're losing this battle? >> no. this election is going to be about the president's economic policies. they've failed. i think mitt romney has a tremendous record of economic growth, how to create jobs, and policies that the american people will support. >> i want to remind you of a couple things you've said about the president in the past several days. you seem tougher on the president now than you have in the past. >> this is the biggest job in the world. and i've never seen a president make it smaller. the president checked out last labor day. he lost his courage. >> do you see yourself, vis-a-vis mitt romney's quest for the presidency, as the person that can really go after the president? >> no. listen, the president and i have a very good relationship. >> when did you last talk to him? >> and as a result, you know, i try to avoid personal attacks on the president. but let me say something. the president's getting some very bad advice from his campaign team because he's diminishing the presidency by picking fake fights, going after straw men every day. you know, we had the buffett rule. and it went on for months. even the president admitted it was a gimmick. then we had the rose garden ceremony talking about manipulation in the oil markets without one shred of evidence. and he has an entire administration to go after speculation or manipulation in the oil markets. and then they pick this student loan fight where there is no fight. and the point i've been trying to make here in the last couple of weeks is that the president's bigger than this. the presidency is important. america has big challenges, big fiscal challenges and we've got big challenges for our economy, and the president -- i'll be working with democrats and republicans on capitol hill to address the big issues that affect the american people. >> you don't see yourself as being tougher on him? i mean these are pretty -- i mean you said -- you were talking about his going -- his using the presidency to campaign. you called it pathetic. i mean, these just seem stronger words to me and more like election year verbiage than previously. >> the president's been given bad advice. someone needs to help him out, so i thought i would. >> okay. i'm sure he appreciates it. i want to remind you of something you said to politico, i think, last january, which was i think it will be nearly impossible for the democrats to win back the house in november. now we have you saying maybe they've got a one in three chance. what's changed between then and now? >> nothing. if the election were today, i'm optimistic that we'll hold the majority. but my job is to make sure that even under the worst-case scenario, we'll be able to hold on to the majority. what i'm trying to do is wake some people up and make them realize we've got a challenge here and we've got 242 republicans in congress all up for election, 53 of them in pretty tough races. >> there are a number of ways -- the democrats, by the way, have agreed with your statement. they have been talking bullishly about perhaps their chances of picking up the majority on the house side. why do you think they've raised $10 million more to the dccc as opposed to the rncc, the democratic fund raising group for the white house? >> they clearly have some mail and phone program is churning an awful lot of money. >> why don't you? >> on a net basis, we have many more in the bank than they do because we're not burning through the cash as quickly as they are. it's raising money. it's a difficult challenge in a weak economy. i believe we'll have the resources necessary to fight a real campaign in november. >> what do you think of mitt romney? you know, you come from such wildly different backgrounds that i find it fascinating. what do you think of him? >> listen, i've known the governor for 15 years. he's a very likeable person. and, frankly, he has a very -- has had a very successful career. and i, frankly, i think the governor should be proud of his accomplishments. he and i are both striving for the same thing, to make sure that our kids and grandkids have an opportunity at the american dream like he and i have. every american ought to have this chance. and i think he has a break background where he can go out and talk about how to create jobs, how to turn this economy around, and how to give the american people exactly what they want, more jobs. >> you know, he comes from a privileged background. you did not come from a privileged background. this is a time -- an economic time when people are hurting and have been hurting for quite some time. do you think someone who is as wealthy as he is, has had much privilege as he does, has a hill to climb to overcome that? >> no. the american people don't want to vote for a loser. they don't want to vote for someone that hasn't been successful. i think mitt romney has an opportunity to show the american people that they, too, have an opportunity to succeed. >> would you say you two are working on the election now? >> i have not talked to him. >> really? >> yes. i try to avoid to talking to all the candidates. >> but now he's the guy. >> now he's the guy. he's called. i called him back. we've traded some voicemails. but i expect that i will soon. >> who would you like him to pick as vice president? >> whoever he's happy with. >> do you see anybody around up here that you like? you know portman. he is named a lot. >> there are people i like, but this is a personal choice for governor romney, and i'm confident he'll have a running mate that will be helpful to the ticket. >> and if you had to say, look, my number one, what i would really look for in a vp if i were mitt romney, what is that quality? >> i think the number one quality is are they capable of being president in the case of an emergency? >> does that fit someone like marco rubio? >> it fits a lot of people. >> does it fit him? >> it fits marco, it fits senator portman, governor daniels. i have a long list of people. >> i want to remind something you said in november of 2010. >> the american people are demanding a new way forward in washington. now i'm here to tell you tonight that our new majority will be prepared to do things differently, to take a new approach that hasn't been tried in washington before by either party. >> do you think you've been a successful leader? >> i feel good about that. >> do you think you've done these things? >> no earmarks. who can imagine? we've been through 16 months now. not one earmark. it's made my job more difficult in terms of how to pass important legislation because there's no grease. i've got no grease. so no earmarks. a more open process, allowing democrats and republicans to represent their constituency, to bring their ideas onto the floor. we're making real progress. one of my major roles is to rebuild this institution. if we're serious about tackling america's big problems, you've got to have an institution strong enough to be able to do that. and have them watch what's happened here in this institution over the 21 years that i've been here, we've made positive steps in the right direction. both democrats and republicans are very happy about the progress we've made. they want more, and so do i. >> is this sausage being made? because i don't think that if you went out and asked the average american if they think it's been a great two years, you've done good. you've seen the polling. >> i see the polling. the economy is a big problem. national debt is a very big problem. so i understand their anxiety. but institutionally my job as the speaker of the whole house, my job is to protect the institution and to strengthen the institution of the congress. and while people don't like the congress, i understand that, my job is to try to make it better. >> and you think you've done that? >> making progress. >> mr. speaker, thank you for joining us. nice to see you. >> nice to see you. later, the question you thought i'd never ask. why is the speaker of the house always so neatly pressed? but first, a moment of national unity transformed into a partisan punching bag. >> tonight, i can report to the american people and to the world that the united states has conducted an operation that killed osama bin laden, the leader of al qaeda. [ director ] cut. cut! [ monica ] i thought we'd be on location for 3 days -- it's been 3 weeks. so i had to pick up some more things. good thing i've got the citi simplicity card. i don't get hit with a fee if i'm late with a payment... which is good because on this job, no! bigger! [ monica ] i may not be home for a while. [ male announcer ] the citi simplicity card. no late fees. no penalty rate. no worries. [ man announcing ] penalty rate. what we created here. what we achieved here. what we learned here. and what we pioneered here. all goes here. the one. the accord. smarter thinking from honda. see life in the best light. outdoors, or in. transitions® lenses automatically filter just the right amount of light. so you see everything the way it's meant to be seen. maybe even a little better. experience life well lit, ask for transitions adaptive lenses. receiving a transitions lenses certificate of authenticity is your only guarantee that you're getting the world's #1 recommended photochromic lens. ask for it and register your lenses online today. as the one-year anniversary of the death of osama bin laden approaches, u.s. intelligence agencies put out an alert urging local law enforcement to be vigilant. and the obama campaign put out a political ad suggesting mitt romney would not have gone after bin laden, full of fulsome praise for the president's decision. >> he took the harder and the more honorable path and the one that produced, in my opinion, the best result. >> seems like only four years ago that hillary clinton questioned then-candidate obama's readiness for office with an ad using a picture of osama bin laden, and the obama campaign accused her of playing the politics of fear. now it's the president running a bin laden political ad, which the romney campaign called sad and president obama's former rival, john mccain, called a cheap political attack ad and a pathetic political act of self-congratulation. it seems like only a year ago, the news of bin laden's death was greeted across the country and across party lines as justice. up next, a man who was in the situation room the night bin laden was killed, the president's top adviser on homeland security and counterterrorism, john brennan. transitions® lenses automatically filter just the right amount of light. so you see everything the way it's meant to be seen. maybe, even a little better. experience life well lit, ask for transitions adaptive lenses. visit your local jcp optical today to learn more about authentic transitions brand lenses that fit your life and start seeing what you've been missing. recently, students from 31 countries took part in a science test. the top academic performers surprised some people. so did the country that came in 17th place. let's raise the bar and elevate our academic standards. let's do what's best for our students-by investing in our teachers. let's solve this. joining me now, the president's adviser on homeland security and counterterrorism, john brennan. good morning and thank you for being here. >> good morning, candy. >> we're coming up on the one-year anniversary of the death of osama bin laden, and i wanted to play you something that defense secretary leon panetta said right after the death of bin laden. >> i was convinced in my prior capacity, and i'm convinced in this capacity, that we're within reach of strategically defeating al qaeda. >> have we strategically defeated al qaeda? >> we're on a path to al qaeda's destruction. and the president has committed that we're not going to rest until al qaeda is destroyed as an organization in the afghan/pak area as well as other regions of the world. it's a murderous organization that has killed many americans as well as many other nationalities over the course of the past decade and more. and so we are determined to make sure that that organization is destroyed. >> so not yet is the answer? they're not yet strategically destroyed? >> we still have work to do. >> and so give it to me on a one to ten. if they were a number ten threat now, have we -- how far have we reduced their ability to harm the u.s. or its citizens? >> we have reduced significantly their ability to carry out attacks against the homeland as well as against u.s. persons of interest overseas. we've taken off of the battlefield their founding leader and many other operatives that they have deployed in many parts of the world. we have taken apart their infrastructure in areas of pakistan and afghanistan. we are determined to continue this effort in places like yemen and in africa. so their ability has been degraded significantly, and our defenses have improved significantly also over the past decade. so their ability to carry out an attack here in the united states now compared to ten years ago is significantly diminished. >> how close have we come? how close are we to getting at the new leader, al zawahiri? >> we're continuing to work with our regional partners, the pakistanis, afghans and others. >> do we think that's where he is? somewhere in pakistan? >> we believe he's in that region of the world as well as other al qaeda leaders that continue to burrow into areas of the fata, the federally administered tribal areas of pakistan. that's why we're working very closely with our pakistani partners. so we're not going to relent until we've brought them to justice one way or the other. we demonstrated the ability to do that with bin laden, and we are in constant consultation with our pakistani partners on a regular basis about how we can do this as soon as possible. >> and he has to go. i mean, this is our number one target now? >> definitely, absolutely. they have to go. it's an organization that's dedicated to murder and mayhem, and we, as well as other countries of the world, are determined to make sure that that happens. >> what accounts for what a lot of people tell us is considerable activity on the part of the u.s. in yemen? we know there have been drones. there certainly is authorization for tomahawk missiles. who are you -- who are you trying -- i know that we got al awlaki not that long ago, i guess, and certainly he is gone, but who are you looking for now in yemen? why all that activity there? >> well, al qaeda in the arabian peninsula, which is located in yemen, is involved in a very active insurgency against the yemeni government, and we're working very closely with the yemeni government, their security, intelligence, and military forces, to ensure that that growth of al qaeda in yemen can be blunted. at the same time, they've demonstrated the intent as well as the capability to try to carry out attacks against the homeland. you know that umar farouk abdulmutallab with the underwear bomber as well as the printer cartridge caper. and so what we're trying to do is make sure that they're not able to carry out those attacks. but we have to work very closely with the yemenis. we're doing everything in yemen in full cooperation with our yemeni partners. we're going to continue to do that. >> no specific -- are there specific people there you're targeting? >> there are leaders of al qaeda in the arabian peninsula that we are focusing on. we're trying to make sure that they're brought to justice. again, one way or the other, we're going to work closely with our yemeni partners. >> let me turn you to the secret service scandal that we've had because there's a lot of concern on capitol hill, as you know, that the security -- the national security as well as the security of the president is thing. national security as well as the security of the president is threatened by this sort of thing. i was struck by something congressman elijah cummings told me last week, which was, listen, we have told the bad guys, we have said to the terrorists there is a way to pierce this shield. do you have concern about that? >> well, first of all, the secret service has done a fantastic job over the course of many decades, protecting the president, the first families, as w