cleaner, domestic, abundant and creating jobs now. we're america's natural gas. the smarter power, today. learn more at anga.us. >>neil: patrick. paul. perry. gingrich. each upping the ante. this is going to get good. and a major, major, money bomb dropping on the 2012 race. and, now the give dropping it? headlineing our show. welcome, everyone, i am neil cavuto. rick perry is pulling out all the stops is this guy, where all the grass roots money actually starts? and stops? we have fresh numbers showing ron paul bringing in close to ... $3 million in the last five days.

more than 44,000 donations coming in from all 50 states. for critics counseling him out, maybe they should think twice as he just counts the cash? the republican presidential candidate joining us on the phone from texas. congressman, these are off the chart numbers. what makes them striking is largely it is small denominations. thousands. >>guest: it is encouraging because if you got it off of the large donations through bundling by banking and others that is not encouraging to me, but, i think the grass roots are much more aware of what i'm doing than a lot of other people. i was pleased with the fundraising. >>neil: what is interesting, your fellow texan has the flat tax proposal, and he will be a special guest of my concerning it, but while he has in the past raised big money from big donors nothing like what you have been able to do on the small average

american front. is that something you want to try to capitalize on? try to pound in the next debate? >>guest: well, i probably should do more of it. it is natural for what i'm doing to get small donors because over the years i've been in washington for a wheel and the lobbyists don't bother me. they don't come and pester me and i don't get a lot of pac money, so the special interests wouldn't naturally come to me so i am please the but it gives us the strength to build the organization and we have a lot of volunteers and that is, also, very important, and we are doing so much better than we had four years ago but we still know we have a ways to go because sometimes we don't get on the headline news, you might be the only one that will be generous enough to report this today. so i'm very employeesed. >>neil: it is eye popping, i don't care your point of view not media, that is something to report on, per. what i think the media focusing

on, the fact that despite your money making prowess which is never in doubt, it hasn't translated with a better poll position. what do you say to those critics who say you are more a financial flash in the pan? >>guest: we are doing better. will compared to what? compared to four years ago? compared to six months ago? no. we keep going up. we don't surge but we never drop. if we get a supporter, they are loyal. others have surged in the polls and will be top of the pack and suddenly they are dropping off quickly. so, ours is very, very steady, and we haven't lost ground but we do need to prove ourselves and that is why we are work very hard not early stage andian is a big month for us. >>neil: what are you going to do with all this money? >>guest: probably beginning to advertise on fox or something like that. >>neil: that's the curse

getting a lot of money, spending it wisely and a lot of candidates have been known in the past, hillary clinton comes to mind for recklessly wasting it and romney was criticized for essentially wasting the financial advantage he briefly had. how do you get this into the right media at the right time with the right message to counter the perception that you piqued? >>guest: we have had, i think, four or five ads and you have to have the expert help, sometimes i'm the last one to argue about exactly what we should have because i'm so tied into the philosophy and sometimes i suggest other things. we have good people and he have good ads and they go over well and they have to know the markets and that is why we have made progress. >> the flat tack, a simple tax is something you have long championed that our present tax code a nightmare and rick perry

selling the not tax an his own on the heels of herman cain's 9-9-9 campaign and the perry plan is said to be an effort to june start his campaign a little too late. what do you thing of that plan of his? >>guest: well, i don't know. i just think that all the others have talked a lot more about taxes than i do. en knows my position on taxes. they are too hide and i would like to get rid of the income tax. we talk about spending because that is where the problem is. and i think they do this almost to stay away from the difficult choices. how many others have, really, offered any significant cuts? nobody is offering that. no one in washington is offering real cuts. and i think that is where the problem is. our crisis has to do with debt, sovereign debt, worldwide, and the financial conditions are continuing to deteriorate, so, whether you collect the revenues with the sales tax plus a flat

tax, it is academic. >>neil: so, you are saying, his plans on balancing the budget by 2020 and you would get it balanced by your third year. >>guest: but we cut $1 trillion the first year. people's eyes glaze over and say i will balance this in 15 or 20 years! the only thing that counts is one year. the same people are not there after one or two or he years so you have to do it right away but you have to change the appetite for government. the taxes, the tax code is a method of collection will not self the problem. it is not an arithmetic problem but a strategic problem on what we thing our government ought to do and we should protect our liberties and not running our lives and running the economy and policing the world. so there is a big difference. i try to emphasize that.

>>neil: you must be doing something right with all the folks giving you checks. $15 at a time, it adds up. be well, congressman. from ron paul to rick perry, the texas governor and presidential candidate will be my special guest. is he waiting too long to balance the budget? is the flat tax that great of an idea? you her the criticism from ron paul. hear from the governor himself on fox business network. my goodness, you don't get it? demand it! >> to a bombshell in congress. the super committee has less than a month to come up with $1.2 trillion in spending cuts but a new plan that could be making its way through that committee ain't sounding that super. it would get rid of the dollar bill and replace it with a dollar coin. bill to coin. the grand savings?

$5.6 billion, baby! over 30 years. i tried. i tried. tried. charles payne, laughing both at that and my impression. of austin powers. >>guest: i'm laughing at that more. >>neil: can you believe this? >>guest: everyone is like there are two schools of thought, we are not hearing from the super committee, that is worry some and the other side, that must mean they are pounding away and there is bipartisan support and they will come up with department. >>neil: nothing of the sort. >>guest: what is that .0003 percent? >>neil: do you personally prefer paper over coin? >>guest: paper over coin. >>neil: in europe they give you you a zillion coins. >>guest: if they hear you pat the pockets, and it should be

not coins. >>neil: i thought this was a one year figure and i thought, well, that is not which were change. so, 35 years, they will save $5 billion. >>guest: this is baby steps. like lacing up your shoes, a silly idea. >>neil: here is what i wary about, if these are the ideas they are coming up, they are being creative to come up with, i guess, less painful ways to address this. >>guest: we're talking paper over plastic? really, the subjects they are coming up with, and i go with paper all the way. i used to pack bags and the paper was easier. so, the reality is, though, i'm not even sure what camp i'm in with this, the nuclear option may go to the fall back issues and they will massively cut

defense and i think that could be where we end up only because i think from the left and right that could be more palatable to the left as it leaves entitlement stuff with the big question mark and take as big chunk from defense. >>neil: but it is changing the measurements we use and we called all 12 of the super committee members, six democrats and six republicans, the reason why they did not respond they heard you were going to be on and it could be that we are not getting at this tit for tat. if this is what they are throwing out a month ahead of the deadline this is the stuff you come up with the night before. you know? so, they are already doing this now? so i am a little worried. >>guest: when they announce add team, it felt like they were announcing a roller derby team because they have becausers on both sides and if they can come up with a bill the market would be very happy because right now

the odds --. >>neil: even though it looks like they are punting. >>guest: coins over dollars, that is a punt but that is a shank, really, so i hope they can come up with something more creative than that. >>neil: you are the man. challengers to the big stores are doing anything. the c.e.o. of toys 'r us is here. and only here. and, sayent ain't so, we told you that she in a heap anger over this exchange with a reporter. remember him? now they have an investigation underway, and is jason worried? >> get it straight, guys, don't screw around with me. let me explain. endless shrimp is ourn

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>>neil: do any of you remember this? >> do you regret using a rape reference to describe republican

opposition so --. >> get it straight, guys. let me explain. listen to me. i said rape was up. they times. there are the numbers. look at the numbers. murder is up. rape is up. burglary is up. >> if the republicans don't pass this bill rape will rise? >> murder will rise. rape will rise. >> is it appropriate for the vice president to use language in such a way? >> we get to go. >>neil: after that he was shot. anyway, a little bit of a dust up after that. and the vice president did not like that little question-and-answering and the staffers are doing an investigation into whether my next guest broke the senate press protocol and we reached out to the vice president's office and now, jason, they said you misrepresented yourself. you came up there and someone who was a continue of the vice

president and wanted to get a picture offer talk to the guy and in fact, you were a reporter. >>guest: well, thank you for having me back on. the vice president is acting like a kid who cannot get into a beiber concert. he is upset and trying to point this at me because i caught him flatfooted and got him in a lie and now the media is taking interest on his rape stat and reporting that he was just dead wrong and, in fact, the "washington post" said the claim that rapes would rise is absurd and half bake sod i'm not surprised they are trying to deflect attention on me but i am a journalist i will ask tough questions. until will but they are saying you did not present yourself as a journalism but as a fan. i think that is what they are saying. >>guest: i took a picture with the vice president and i had my press credentials but they are trying to deflect attention. >>neil: wait, wait, did you ask, jason, i want to take a picture with the vice president?

>>guest: someone actually offered, i can take a picture with the vice president and i said, yeah, i took my picture and that is the perfect opportunity to ask him a question that the drones in the media for an entire wake failed to ask, and that is, did he think it was represent to use a rape reference to justify another --. >>neil: i know the exchange was riveting and maybe i can see the argument, that the ends justifies the means but they are coming back and saying, well, any reporter at any time could misrepresent him or herself, and say this is something else and sand bag any candidate. >>guest: i didn't say i was somebody else, i did identify myself as human events when they asked me to do so. >>neil: when did they ask you to do so? >>guest: they said who are you with, and department. >>neil: did you have a press badge? >>guest: i did, but, again

they are trying to focus the criticism on the tactic. do not forget this faking outrage is funny to watch because abc, and cbs, and "60 minutes," does ambush interviews all the time and is considered great journalist and they are going after private citizens. i am going after politicians who use their office and i think abusing their office for push legislation, lying to the american people and journalists should take note, that is the type of question you ask, that is how you are tough with the politician and if the vice president wants to investigate me, go ahead. >>neil: but, jason, you are right, what is if for the goose should be good for the gander but you are an identifiable face and i am sure they have your picture posted at rallies, now. so was its like a one shot deal? you will never be able to get close to the figures again? >>guest: no, i have been going

after politicians and supposing their corruption for years now. vice president biden was not the first one. i was the first one to go after charlie rangal and bring attention to his corruption and there is a long list of characters. >>neil: i got you. when they talk about an investigation from the vice president's office, i don't know what that means but has anyone from that office talked to you? talked to your magazine? anyone? >>guest: no, no one from the senate press gallery has called up. but the senate press gallery should send a note back to the vice president highlighting the first amendment and tell them to butt out of press business and be prepared to ask questions. >>neil: what if the gallery kicks you out? >>guest: they are not going to do that. >>neil: you don't know these guys? >>guest: they will not do that. >>neil: no one has called you or followed up with any questions? none of that. >>guest: no, no, the only thing i am to violation of is

asking a question and i posed with the vice president for a picture, and i asked him a question but this is what the vice president wants is to put attention on the tactic and not on his response after. the vice president, biden is hiding right now. you don't hear him talking about rain anymore in support of the president's job bill. that is because the, we brought attention to this issue and the media has latched on to it. they are late latching on to it but it is because of the video. this is journalism in practice. >>neil: jason, good to see you again. let us know if you get calls from people. thank you. stocks are tank asking here is why, a time bomb ticking in europe as the debt deal that was supposed to be hours away now we are hearing, well. it may not be hours away. in america, we believe in a future

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>>neil: what happens in europe doesn't stay in europe. stocks tumbling in the united states after the finance minister scrap a powwow to fix the debt hoping by tomorrow morning, and now time is ticking to what was supposed to be a high profile meeting to sign the deal hours from now. maybe it is the loud big clock that was messing them up. silvio berlusconi struggling to get the cabinet to go along with cuts. and france's sarkozy sniping at both, and chancellor merkel is moving along and ashley, what the heck is going on over there? >>reporter: no much.

just a lost squabbling. a summit tomorrow of the finance economy ministers has been scrapped because they don't have the fine details of the debt ceiling planned. now, a meeting of eu and eurozone leaders will go ahead but all we will get is broad framework ideas for how to address three main things: we have the bank refinancing, recapital savings of the banks, and, also, boosting the firepower of the eu bailout fund. how is that bailout fund going to be used and funded in the first place? and of course we have what about the people holding the greek debt. they have to take a hair cut. in july it could have been 21 percent and now it could be 50 percent or 60 percent. but this still has to be decided. the devil is in the details and as we have seen on and on and on and on and on they cannot agree

what type of day it is let alone on the fine details of a debt crisis manifesto to deal with what is going on. >>neil: do you wonder if this club is unraveling, they are all sniping at each other and they strongly dislike each other lately. what happened? >>guest: well, good point. we have french president sarkozy telling british prime minister cameron, butt out you don't use the euro, doesn't interfere. and chancellor merkel saying eu cannot dictate what the european bank will do and it goes around and around and around. at some point a decision will be made because greece is about to run out of money in the next two weeks and that, this goes on while athens burns so something has to give soon. >> thank you. if the meantime, americans should be quite concerned about what is going on over there, co-founder of investment firm. taking this to the next level,

say they don't have a deal, the thing looks like it is falling apart, and the larger context is the euro and europe. then what? >>guest: well, the sticking clock says et all, investors anticipated and priced in a resolution to the debt ceiling and markets hate uncertainty and we had a big rally in october in anticipation of positive news so any indication this will not happen could create a shock not only in the world financial market but even here at home. we could see investors hearing they will retrace the entire october rally and run for the exit, and investors could be nervous in the domestic market because what doesn't happen in europe and what is more important, to we saw that effect, come back here at home, because of what europe may or may not do, you could prompt our government, our federal reserve, to intervene and step back into the equation, and you can see what has been whispered not

halls of wall street and the halls of washington, that fed stimulus coming back, the quantitative easing, qe3, coming back. in a political cycle, that is very dangerous because if you see qe3 that could mean if you think occupy wall street is mad now, wait until we have more stimulus? if you think the tea party isn't up in arms, wait until we have more stimulus. so it is on both extremes. >>neil: so the occupy guys united with the tea party guys and it could be bedlam. and now, this confuses me capitalists are not fans of government bailouts but we live in an able where this is more accepted and, in fact, endorsed and, in fact, looked forward to. by that, i mean that is what the markets are saying they want did see and if they are not seeing it, katie bar the door but isn't that weird? that we are hinging everything

on whether there is a huge government rescue for institutions that are in deep and if it does not materialize they have a huge problem. >>guest: it is true, you make a good point. clearly the role of government here is what is in question. as a result, as we mention in that political cycle, the r re of government is being reever value -- reevaluated. if you have a disaster you hope fema is there but no one wants to pay for it. that is the issue. in europe right new they are on the edge of a disaster and they may not be close enough to germany and france but they are there for greece. >>neil: how close are we, larry, to greece, for example? everyone says there are a lot of big money centered banks in the united states heavy exposed to greece and they only need to be exposed a little to have an effect. >>guest: the debt downgrade was a shot but a wake up call

for our economy to get our house in order so we did not become greece. we have resources and a growing g.d.p., but it is small but we are not greece and we want to make sure we did not become greece so we need to pay close attention to the events in europe to make sure they do not come in whether through debt or because of the massive debt we accumulate on our own here. >> you are good a this stuff, larry, thank you from boston. the road to the white house government bumpy and gingrich is ready to butch tax plans with rick perry any time, any day. how about this time? this day? on this show? and a plan he says unlike the governor's will work.

>>neil: all right, to colorado where president obama will be swinging in tonight with republicans looking to simplify the tax code. and now, ed is getting press reaction. what do you hear, ed? >>reporter: well, it is interesting because the president is not directly commenting on governor rick perry's plan and has been careful not to weigh in on individual candidates but the spokesman in chicago for obama 2012 put out a statement saying in part and i quote, "governor rick perry and governor romney's tax plans are guided by the same principle, they would shift a greater share of taxes away from large corporations and the wealthiest on to the backs of the middle class." that from a campaign spokesman

for obama, biden 2012. interesting, because this morning, the president in los angeles before he heads to colorado did a pretape with jay leno for tonight, and he what asked and he said he would wait until they are all voted off the island and narrowed counsel to one or two candidates before he engages directly with them. he wants, in colorado, to talk about his own jobs plan and as we have seen the president has been trying to do an end run around congress because he believes they are sitting on his jobs bill, so, yesterday, in las vegas he unveiled a new housing plan with executive action, not congressional action. today the staff is talking about doing executive action to move around some federal money, existing federal money, to hire more veterans returning from iraq and afghanistan, and we are getting new details tomorrow here in colorado the president will announce a new plan to try and help people with student loans. try to get the government to

intervene and basically try to lower interest rates so there is more money in the pockets of students. there will be republican opposition because they think the president is doing an end run around congress but the bottom line is as the battle is joined the president sees his jobs bill going nowhere fast on the hill and he will try to tinker wherever he can, to try to do some other action. >> i know you are with him every da and his people, what is, i know this sounds cliche, their mood, in the basic constant beating on the issues. how are they handling all of this? >>guest: well, you talk to a senior aide and they say, look, they know that he is in a tough position right now, but going back to the jay leno pretape the president was also asked about congress' standing right now and joe plane pointed out when you look at, for example, fox news polling, congress' approval rating is 13 percent or 14 percent so the president could be an 40 or 44 percent depending

on the poll. but, he is three or four times better than them which is why she beating up on the individual issues picking out these spots. they know she in tough shape, a state like colorado here, he beat john mccain by nine points. but he had the democratic convention in denver with the change message and the approval rating is not too good in colorado because like the rest of the country they struggle with unemployment and foreclosures and the rest. thank you. >>neil: touch times for retailers so deep discounts for you. in los angeles, all without running out of gas.

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to encourage workers to get healthy, to get out there and run or whatever. dave ramsey offers perks but he is a cheap skate. he joins from the hit radio show, also author of runaway best seller where he details the virtues of being a cheap stake. dave, kidding, but good to have you. what do you think of a company incentivizing you to do everything right, eat right and exercise. >>reporter: we do it because there is a rate of return on it, a return on investment. it is very simple: people who are healthy are at work more. how hard is that? and they actually think ate better when they are at work. i'm a runner, the only way i can eat as were food as i eat and stay reasonably smarter than a truck so i ran six miles. i had for good ideas on my run. >>neil: you ran six miles this

morning? >>guest: i did, with blood pumping through your brain instead of other things, you actually get ideas. >>neil: really? >>guest: when you are in better shape you are more creative and happier. >>neil: what did you do? >>guest: well, in our situation we just make it a big team thing and we pay for everything, for instance, the nashville marathon where we are, they have 30,000 runners and we pay for that and donate to a charity if you run as well, to incentivize them further and we pay for the gym memberships and we have all kinds of internal football teams and stuff inside that we do, and we have a lot of fun with it. and the whole idea is, i do the biggest loser, put up $1,000 for over loses the most weight a percent of their body. but people have really changed their lives physically during that time and that is rewarding

as an accomplish. >>neil: but you don't penalize the ones who are not taking advantage of this? >>guest: no, i don't. i don't. when i was completely out of shape i was penalized by being out of shape. it is not as fun. you don't have the energy or the ideas or the stuff flow through your body. all the proteins and stuff. so, i sound like a health nut but there is a return on investment. >>neil: i am glad you are not my boss because i would have been fired in the first ten minutes. always good to see you, and i have seen your staff and you and you practice what you preach. unfortunately. continued success. consumers are not confident but retailers giving them deals they cannot refuse, with toys are up beefing up the incentives and the c.e.o. is here.

.

there is a lot of reaction or warning reaction before christmas, but it comes late this year almost as far away from thanksgiving as you can get, on a sunday. so it is a long way off. walmart came out, yesterday, with this plan, like if anyone could boat us we will give you a gift card. >>guest: at toys 'r us we think every customer should get a great price and not prove it we have been aggressive with positive sales, five straight decembers and we are very aggressive on price. we have among the best assortment in the industry. value is more than price. having said that we are great on price. and it is also what you get for the value. we have tremendous assortment of toys. most of our toys are not

available at what i call the limited mass merchant. >>neil: you have your own propriety toys? >>guest: the biggest is the flying shark, only at toys 'r us. many of the ... we have products like ugly doll, the hottest lines. only at toys 'r us and one other. >>neil: why is that so popular? i looked at it and i thought, what were you thinking? >>guest: it is a product of a couple, american designer and a korean woman wouldally up with this and it is just spark technical particularly different. girls and boy love these ugly dolls. another great product --. >>neil: why? >>guest: it is different. i saw it i wanted three of them. this is a hermit crab and nothing to watch than to play with the hermit crab and their

shells change and this is just flying off the shelf. it is amazing. >>neil: how much? >>guest: a little over $10. >>neil: and only bought at toys 'r us? >>guest: now. >>neil: so, can you get these, kind of likes like hannity. kidding, kidding sean. walmart doesn't offer these? >>guest: not today. >>neil: your argument has been. folks will buy for the kids. >>guest: we are first with the hot products to make sure we have them in stock to christmas and most of the toys we carry are not available anywhere else and when someone talks about our price, i am old fashioned i think you ought to get a price just by walking in the store and watching a price means the price was higher to begin with. >>neil: soy are not going tit for tat. >>guest: we have amazing rices and apa mazes sales and year after year people come to toys

'r us and the customer knows where the values are. >>neil: what i see as the future, legos. they are everything. everything. are they a big seller? >>guest: they are great. we are one of the largest customers in the world, but largest in the united states, and we sell them in 34 countries. they have been growing, you know, year after year after year and they have done well. lego, barbie, they have done well. >>neil: you must be doing something right. even though the crazy, ugly dolls but you are right, a huge phenomenon. another increasing phenomenon: nato -- gingrich. at bank of america, we know the impact that local businesses have on communities.

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>> neil: hey, do any of you remember when they said the certain speaker was spinning out of control, going nowhere? you might want to think again. newt is in pursuit. the republican candidate

setting his sights on the granite state. making his candidacy official in new hampshire and rocketing in the polls. while everyone is talking about rick perry flat tax announcement today, newt gingrich wants folks to know he can do better and has been ahead of the curve long before some of the others. the speaker joins me now. thank you for coming. great to have you. >> great talking to you. you have a terrific signing with the secretary of state in new hampshire. it will come together in an exciting and positive way. >> neil: what do you think happened? there was a time the race looked like it was discombobulating and then something happened. what >> i always thought the obituaries were premature. i think substance mattersment

a track record matters. people see what's happened in the last three years and hasn't worked out well. more debates to newt.org to see the sheer depth of thought i put in to more advisors put in to, designing solution for america's problems. getting us back on the right track. every week we gain ground. today we raise more money in october than we did in july, october, december combined. we're excited how it's developing. how rapidly it's accelerating. >> neil: another trend in this campaign, because your surge and the surge with the flat tax plan pushed by perry today. variation, but not the same league of the 9-9-9 plan by herman cain but that is the big theme.

we had ron paul on earlier saying look, the problem isn't what you can do with taxes but what you've got to do is spending. he said perry's plan to try to address getting the budget in balance for the year 2020 is too late. he says he will do it in his third year. what about you? >> i'm wrobel not as confident as ron paul is. it's possible in five to seven years to balance the budget. we did it fastener the '90s. and i remain the only speaker of the house in the lifetime to balance the budget and paid off $405 billion in debt. we did it in part by controlling spending. in part reforming big entitl entitlement, welfare reform. two out of three people went to work or school. medicare where we saved $200 billion. in addition, we dramatically accelerated the economy by cutting taxes for the first

time in 16 years. including the largest capital gains cut. unemployment dropped from 5.6% to 4.2%. if you take people off of unemployment and food stamps and medicaid, get them back to work where they are working for the family, it changes the budget. >> neil: is that what you think resonates? you have debate upcoming like lincoln-douglas deal and many see your chance to knock him out of the way. improve your credentials. oh do you describe it? >> that is wrong. herman cain is a terrific guy, a great talent. a terrific career and good story. he has some ideas i don't agree with, but they're big ideas. 9-9-9 is a big idea. i'm in new hampshire where

there is no sales tax. i think the idea of a federal sales tax won't go over well here. but it's serious. i don't have a goal of knocking anybody out. i am trying to attract people to look at big ideas and solution and real track record and overtime, outgrow my friends. in my mind, my major opponent is barack obama. all the guys are friends of mine and are smart people. there is something you can learn from every one of them. herman andly have a great time in houston on november 5. people will surprise this an interesting and educational but not necessarily hostile. >> neil: that sounds welcoming. good hearing you again. be well. newt gingrich. by the way, rick perry