this is decision day in iowa. just four hours from now, republicans will gather in caucuses across the state and cast the first votes in the 2012 campaign. the candidates have spent months of the trial paving the way with millions in campaign cash. much of that money has gone towards a barrage of negative advertising. now, in a final flurry of appearances, the rhetoric has reached a new peak or maybe a new low. >> you said mitt romney, somebody who will lie to you to get to be president will lie to you when they are president. i have to ask you, are you calling mitt romney a liar? >> yes. >> you're calling mitt romney a liar? >> you seem shocked by it. yes. >> why are you saying he's a liar? >> this is a man who's staff created the pack. his millionaire friends fund the pack. he pretends he has nothing to do with the pack. it's balogna. it's like his pretense that he's a conservative. >> wow. let's go live to our chief political correspondent, candy crowley. she's in des moines. you got a chance to speak to him today. did he react to this very strong akization by newt gingrich? >> this was a progrefession acr the day. this was in the morning. he ignored it when a reporter said, he asked as though the question was not out there. he's quite happy to talk about how he thinks he's going to come in the top three, but totally ignored that question. but on throughout the day, he told one interviewer, well, i don't know why he's so angry. i don't know what he's so angry about. look, i understand that people are going to come after me, i get that. but i've got big shoulders and i can take this. for heaven's sake, you have to be ready for what president obama will unleash. in one interview, he said, listen, it is against the law, election law, for me to have any coordination. people i used to employ are at this pack, but i have nothing to do with them. let me tell you something. this point, it's a lot easier to be mitt romney than it is to be newt gingrich and mitt romney has stuck with a same ammo largely throughout this campaign, for the past year or more. this has been a cautious, a careful campaign. what mitt romney has to do is like a doctor in politics. he has to do no harm to his campaign. there is nothing in it for mitt romney to engage with newt gingrich about who is a liar about what, so he is brushing this off and he is really even on the campaign trial, his rhetoric is sort of months past iowa. it is aimed right at the white house. take a listen. >> the president said he wants to fundamentally transform america. i don't want to transform america. i want to restore the principles that made america. >> it's just very safe stuff as this point. again, mitt romney, they are so hoping to pull this out here today and tonight in the iowa caucuses. they would love a first place win, but they think anywhere in the top three gives them a push into new hampshire. they truly believe inside the campaign that they are sitting right where they need to be sitting at this point. it's why the rhetoric is aimed at the president, because you don't o fenz any other republicans you want to have come on board when this is over. >> yeah, we'll see what happens. if he were to win in iowa tonight, he's almost certainly going to win in new hampshire. that will set the stage for south carolina and florida. we'll see what happens there. candy's going to be with us throughout the night. thank you, candy. ron paul is also hammering mitt romney today. his last minute aid owe ad calls romney a liberal who has supported government bailouts and big government. the ad calls out a recipe for r defeat in november. dana bash is on the campaign trial in iowa. how's the ron paul campaign feeling just hours before these caucuses? >> i can maybe show you an answer as well as tell you. we're here at what will be ron paul headquarters this evening and you can see they're already putting up the balloons. we see that they are getting ready to have what they say, they hope, a celebrate. there's even a camera set up to feature ads of ron paul that they're calling a quote hero camera to get a wide, nice shot of him, they say, being very happy and victorious at the end of the night. now, obviously, what is going to be the big question today is whether or not the gal vonizations they've got, for people who maybe haven't gone off to the caucuses, whether they will go tonight and specifically on the question of young people. earlier today, i was at what they call a rock the boat event and several candidates spoke, including ron paul. there were hundreds of young people there and i talked to several of them and they said they are going to go out and caucus for ron paul. listen. >> i'm supporting ron paul. >> how come? >> he has a lot of experience from congress and i like how he's stood behind his values the whole time. he hasn't flip-flopped on anything and he's a nice guy roefr all. >> who are you going to vote for? >> ron paul. >> how come? >> i like his views on gay marriage. the people's choice. >> he doesn't believe the the government should be involved, which i really like. >> now, one of the questions for the ron paul campaign is whether young people like you, who support him, are going to go and awe caucus. you going to go out? >> it's an assignment for the a.p. government class, so i have to. >> obviously, not everybody is going to go, hoping they're get an a, but that gives you a flavor of some of the new voters at the paul campaign. you and i have been talking about this the past few days. they are very secretive about their organization, but talking to iowa republicans, who are not necessarily involved with the paul campaign, they awe telltel they think the paul campaign has done a good job over the past four or five years. a really good organization. we'll see if it pans out. >> all right, you had a chance to speak to four of mitt romney's five sons. how did that go? >> you played at the beginning of the program, the newt gingrich comment saying that mitt romney is a liar. that was the first question i asked his four sons. newt gingrich called your father a liar. newt's a great guy, but we're here to focus on my dad and talk about my dad and why we think he's the best candidate for the presidency of the united states. >> anyone else? >> josh said it pretty well. >> to hear, especially, look, this is not easy on any family member because you guys didn't ask for this. you're not the candidates, but to hear as sons, to hear somebody b call your dad a liar, must not be fun. >> you get thick skin throughout this process. we know what our dad's about. we love him. he's a man of integrity. he's a great example as a father for us. we don't take it personally. >> a lot of time with your dad and with the campaign four years ago and obviously, he finished a disappointing second after spending $10 million and having a really incredible organization. why do you think it's different this time? >> his events we've been going to have been oversold. we're still just hoping for a great finish. >> i also think the most important issue is the economy and there's no question, you can look at all the candidates on the stage, my dad is best equipped to fix the economy and his message resognating with people. he's rising in the polls and i think his message of getting barack obama out of the white house and getting someone who has had a job and run the economy and fix things is resognating with people. >> your dad made a pretty bold prediction last night. he said he's going to win this thing. >> nomination. he's goin to win the nomination. we have lots of past to win the nomination. we're hopeful that that would be a case. >> so, there you see as you said, four out of the five romney sons on the campaign trial. very interesting, wolf. look, this is another part of politics 101 for candidates, to get their fam hi out to humanize them, but we're seeing more of that from the romney campaign than four years ago. his sons have been out and about with him, campaigning for him h. to kind of make it more into a real person because that has been one of the issues, that he seems too stand offish and they're trying to change that. >> that will help and ann romney, his wife, she's been doing the same thing. harsh rhetoric as the campaign winds down in iowa. let's take a closer look at the gingrich claim that romney is a liar. joining us now, gloria borger, also, david gergen. it's amazing how four weeks, things can change. today, newt gingrich says mitt romney is a liar. four weeks ago, when i interviewed newt gingrich in washington, i asked him if he would consider mitt romney as his running mate. listen to this. >> i think there are circumstances where he'd be on the list. whether he'd want to or not. this is a serious man. i would certainly support him if he became the republican nominee. >> what a difference four weeks makes. liar today. very competent man four weeks ago. >> newt gingrich is clearly venting his frustration. he's been attacked with almost $4 million worth of ads, most of it run by romney's super pack, which romney says he cannot control and does not control. that's legal. so, he's frustrated. he feels like his record has been maligned. he is trying to fight back. his problem is that newt has promised to run a positive campaign and now, he's calling mitt romney a liar. i mean, that's even worse than hillary clinton and barack obama, if i recall. >> it's a lot worse than being called a flip-flopper or serial hypocri hypocrite. >> can you trust this person in office, coming from a fellow republican, it's very, very tough. newt told me about four weeks ago, he expected very tough scrutiny from the press. what he did not expect was this onslaugt of adds coming from a fellow republican. the interesting thing to me, this is just the first chapter in what may be a fairly longerish. he is really angry at him. >> it's going to be interesting to see in the next debate how newt gingrich behays because the debates are his forums. they're responsible, i would argue -- and they're responsible for his rise in the polls. now, the question is, will he go on the attack against mitt romney? will he go on the attack against rick santorum. >> are you saying he will? >> i would assume he will. >> he just started. >> i think we saw the -- >> with santorum, he's spent very little money advertising. he's doing well. should we conclude money isn't that important? >> i was talking to one of his advisers this morning and i said, how much money have you spent in iowa? he said, if you count radio, tv and direct mail, $120,000. rick perry, his campaign $3 million. now, this doesn't mean they're not going to need money going forward. if they do well tonight. of course they will, but they have somebody who's a strong alley of theirs who ran a super pack that raised $25 million. or it was just a pack at that point. that raised $25 million. in 2010. against the democrats. that will be very, very useful. >> you can win a primary, a caucus especially, living off the land, but you can't win the nomination. i want to come back to this other point about newt gingrich. the whole flap i think underscores something else we haven't really talked about and that is mitt romney himself has run a high tone campaign, but his hench men have run this tough thing. it shows mitt romney is very ruthless. he's got a ruthless quality to him. >> do you think newt gingrich just cost himself a place, if romney were to win, in the cabinet there, do you think? >> that wasn't going to happen. >> liar's a lot worse than voodoo economics. >> or you're likable enough. >> thanks very much. they're going to be with us throughout the night. jack cafferty's back. he'll join me next with the "cafferty file," then ron paul's son, he's standing by to join us live from iowa where his dad is spending his final hours campaigning before tonight's caucuses and he's not the only candidate's son or daughter making a last ditch effort in ai iowa. how about this pitch from michele bachmann's daughter? watch. >> she's normal. she's an every day mom. 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[ male announcer ] new bengay cold therapy. the same technology used by physical therapists. go to bengay.com for a $3 coupon. great news for our viewers. jack cafferty is back and he has the "cafferty file." welcome back. >> thank you, wolf. happy new year to you. rick santorum, the latest candidate to get a surge in iowa says he would bomb iran if it doesn't scrap its nuclear program. says as president, he would insist iran open its facilities to inspectors and dismantle them. he promises to quote -- in other words, bomb them. santorum vows iran will not get a nuclear weapon on his watch. apparently, a little saber rattling couldn't hurt. he has jumped up in the polls. in the latest, he's in third place. santorum says iowa is quote moving his way and that he's very confident he will finish well. the former pennsylvania senator says he has enthusiasm and momentum, which are vital to the caucus process, but how much his tough talk about iran have to do with his iowa surge? iran's been making a lot of noise lately, finishing up ten days of firing missiles. last week, iran threatened to close down the strait. the strategic shipping channel through which one sixth of the world's oil passes. planned sanctions by the west, the sanctions are meant to force iran to cut back its nuclear program, but so far, no dice. iran insists its program is for peaceful purposes and refuses to halt its pr duction of iranian. a watchdog group found credible information that iran is working toward nuclear weapons. will his vow to bomb iran help or hurt him in iowa? go to cnn.com/caffertyfile. post a comment on my blog or go to our facebook page. wolf. >> thanks very much. good to have you back. senator rand paul of kentucky, the son of ron paul, is joining us now live. from iowa. senator, always good to have you here in "the situation room." i just want to be precise on the issue of iran. when it comes to santorum saying he's ready to bomb iran to prevent it from getting a nuclear bomb, your dad has a very different position. just outline his position as far as iran is concerned. >> ron paul doesn't want iran to have nuclear weapons. he thinks it could destabilize the middle east, but should they get nuclear weapons, he thinks there are some choices, that we shouldn't box ourselves into a war. interestingly two days ago, the head of mehsud said the same thing. if we keep saying it's a threat to israel, we box israel and the united states into a cataclysmic war without a choice and i think people like santorum are dangerous in the sense that i don't think they're thinking through the issues of what the unintended consequences of war are and what the people need is you want a commander in chief who's in charge of nuclear weapons who will not use them carelessly, and who also understands that congress gets to vote on declaring war. one man should never decide for our country to go to war. >> when you heard newt gingrich, the former speaker of the house tell me last week that if your dad got the republican presidential nomination, he couldn't get vote for him. what was your reaction? >> i guess the thing is that i'm worried about the rest of the nominees in the sense that i don't want to have a commander in chief who would recklessly take us to war, so when they say ron paul's dangerous, i think the opposite. i think what would be dangerous would be to have a commander in chief who would talk us to war. they try to paint his position as outside the mainstream. the three generals, abazaid and fallon, have warned against an attack. people think israel is this monolithic body of people that all want the same thing. israel has divided opinion on this. two heads of mehsud. the previous head of shinbet, the previous head of the military intelligence. there are a lot of people who have expressed doubt about whether or not it's a good idea to invade or have a war with ir iran. >> stom of theome of these later dad is doing in iowa, one is suggesting mitt romney is a liberal. do you consider romney a liberal? >> you know, i'm unaware of that. i know that the campaign is putting out some things on rick santorum, talking about how he voted to double the size of the department of education, how he voted for no child left behind, medicare part d, the largest entitlement program and how rick santorum has also supported foreign aid repeatedly. i came from the tea party movement. i don't know any conservative republican or any tea party member who thinks foreign aid is a good idea and rick santorum, i don't think has ever voted against foreign aid. >> so you call rick santorum a liberal? >> what i would say is that as you rise to the top, you get more scrutiny and welcome to the top tier, maybe. if he does well here tonight, he's going to have some explaining to do. he's going to have to explain these votes. foreign aid is not something the vast majority of americans support. most conservatives thought medicare part d, the expansion of medicare, wasn't a good idea and most good reagan conservatives think we should be eliminating the department of education, not doubling it in size. so santorum on a lot of economic issues has been described as a moderate, but you could say a moderate to liberal. he supported arlen specter for senate b and president. against pat toomey, who most of us think of as a good conservative. i think these are choices that show that really rick santorum running as a conservative may not be all it's cracked up to be. >> as far as the other six republican candidates out there, as far as you know, you're father would vote for any of them over president, is that right? >> all i can say is that i plen to support the republican nominee. my dad will have to speak for himself on what he's decided. i think he would like if the nominee weren't him, but looks like right now, we have a good chance of winning. but if it weren't, he'd like to see a nominee who wouldn't go to war wrecklessly, that the president needs to arooufl of congress and that most americans or many americans, are growing weary of war and would like to see us begin to come home from afghanistan. so i think if he had a nominee that were willing to accept some of those positions, i think he would consider, but ultimately, we're trying to be that nominee. >> how's he going to look tonight, do you think? what are you internal poll numbers tell you? >> you know, very good. i traveled around the state with my dad yesterday. we made five stops. hundreds and hundreds of people at every stop. every room was overflowing. i mean, the excitement is contagious. we finished up the night last night about 9:00 at our headquarters outside of des moines. over 250 kids, all between the ages of 20 and 30. the excitement is electric. it's amazing that my dad really gets these young people. the young people are really excited over him and i think it's because they see a genuineness. he's not always politically correct. doesn'