updated 10/18/2013 10:59:35 AM ET 2013-10-18T14:59:35

THE ED SHOW
October 17, 2013
Guest: Tim Ryan, Debbie Stabenow, Nancy Giles, James Peterson, Brad
Woodhouse

(BEGIN VIDEO CLIP)

PRES. BARACK OBAMA, UNITED STATES OF AMERICA: Understand how business
is done in this town has to change.

UNIDENTIFIED MALE: We lost the battle but we`re going to win the war.

UNIDENTIFIED FEMALE: It felt like battleship.

OBAMA: Let`s be clear. There are no winners here.

UNIDENTIFIED MALE: There`s going to be an all out revolt in this
country (ph).

UNIDENTIFIED MALE: We indeed will continue to fight. We`re not going
anywhere.

UNIDENTIFIED MALE: The game is flawed.

UNIDENTIFIED MALE: We haven`t given up the fight.

(END VIDEO CLIP)

ED SCHULTZ, MSNBC HOST: Now, let`s look to quick collection of the
last 24 hours. You hear the republicans talking about war. "We lost the
battle but we`re going to win the war." You hear them talking about
revolt. You hear them talking about battles. Only -- can we just help
America just a little bit? This is a night where we should all be
celebrating the fact that people are back to work and their lives are
getting back to normal which is fantastic. The calculations of winners and
losers is there.

But you do you know who lost? You and I lost. The American tax
payers lost. And here they are, right here, these guys. They had all the
cards. They are the party of fiscal responsibility. For years,
republicans have been talking about wasteful spending and getting our
fiscal House in order.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R) OHIO: Our plan would cut wasteful spending .

REP. ERIC CANTOR (R) VIRGINIA: So we can send the signal, we`re going
to get the fiscal House in order.

REP. MICHELE BACHMANN (R) MINNESOTA: This was created by the wasteful
spending ...

BOEHNER: Your winner are ruled (ph) out wasteful spending.

CANTOR: Taking on the wasteful spending .

BACHMANN: Having wasteful federal spending.

BOEHNER: Washington has a spending problem not a revenue problem.

(END VIDEO CLIP)

SCHULTZ: So, there was nothing wasteful at all about what we`ve been
through for the last 16 days? Here`s a wasteful spending number for you,
$24 billion. And I want to know, where`s the march? There should be a
march on Washington. I mean these guys threw billions of dollars around
like they`re $5 bills with absolutely no accountability. This is how much
the republicans cause the American tax payer. And I don`t want to hear
anymore republicans talking about how fiscally responsible they are.

This loss was completely avoidable. You know, I`m just curious if
there was any conversation or any kind of calculation by Boehner, and
Cantor, and Cruz for that matter about what was really going to cost the
American tax payer. You know we could do with $24 billion? It`s amazing.
But of course, they`re all hung up on just too many damn food stamps just
floating around grocery stores in America. They`re hung up about the Farm
Bill. They`re hung up about the fact that healthcare in this country might
actually be something the American people want.

They don`t care what you want. The republicans have caused this
country again, just like they caused us in Iraq and Afghanistan and went on
fool`s arrow (ph) on false intelligence. This is false accounting. Well,
House Democratic leader, Nancy Pelosi slammed Republicans for the economic
consequences of their own shutdown.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D) CALIFORNIA: This has eroded consumer and
investor confidence in our economy while taking $24 billion out of our
economy. My colleagues, do you think that your recklessness was worth $24
billion to our economy? This recklessness is a luxury the American people
cannot afford.

(END VIDEO CLIP)

SCHULTZ: Now, I thought for sure, the right wing talkers of America
today would be all over this $24 billion, because anytime it`s democratic
money, it`s a huge story. Interesting. No conservative commentary
anywhere in the media today about the $24 billion and certainly no
commentary about the 900,000 jobs that we have lost since 2010 because the
way the republicans would run the railroad. It`s estimated republicans
governing by crisis cost this country 900,000 U.S. jobs.

Earlier today, President Obama also called out republicans on the
damage they have done to our economy.

(BEGIN VIDEO CLIP)

OBAMA: These last few weeks have inflicted completely unnecessary
damage on our economy. Many analysts out there believes it slowed our
growth. We know that consumers have cut back on spending and that half of
all CEOs say that the shutdown and the threat of shutdown set back their
plans to higher over the next six months.

We know that just the threat of default of America not paying all the
bills that we owe on time increase our borrowing cost which adds to our
deficit.

(END VIDEO CLIP)

SCHULTZ: Well, where the heck were all these CEOs? Don`t they have
Boehner`s number? Can`t they get these heavyweight CEOs call up Boehner
and say, "You know what, this is going to hurt our business, this is going
to hurt hiring, it`s going to slow the economy." Isn`t there anything you
can do besides shut the government down? We know you hate Obama but
there`s got to be a better way. Lo and behold, they did anyway and of
course, we`re stuck with the bill.

All republicans do is complain about growing deficits. Well, guess
what, republicans holding the debt limit hostage has added to the deficits.
The republican shutdown and the debt limit crisis have seriously damaged
our economy as well documented, few were mortgages have been approved as a
(inaudible), small business loans have been put on hold, new job hiring,
that of course has been delayed, you just heard the president.

Consumers spending fail because things like the National Parks which
we apparently would like to go to, they of course were closed and it`s
increased our borrowing cost which of course increases the deficit. Now,
the republican stunt that we`ve been through has hurt our standing in the
international community as well. All this hardship in ways was caused by
the Republican Party. I don`t know how long the hangover is going to last.
I hope it lasts all the way to next November. November 2014. Maybe we can
straighten things out.

But, this crowd in particular make no mistake and there is a vote
behind it. There`s a number behind it. The Tea Party of the world. The
Michele Bachmann`s, the Steve King`s, the Louie Gohmert`s, and the Ted
Cruz`s of the world. These are the guys, part of the crazy train. This
guy Ted Cruz is probably the worst of them all. I bet he`s so happy `cause
a year ago, nobody knew who the hell he was. He must be just on a huge
stroke (ph) and ego trip right now. He manufactured this crisis for his
own political gain. He fund raised off the shut down. He added, I don`t
know, hundreds of thousands of people to his e-mail list, all of the
expense of the country`s finances. He`s reckless. He is dangerous, and he
is only concerned really about one person, and that`s himself for its own
future.

Meanwhile, not everyone agrees with me. My good friend Laura
Ingraham said she likes to fighting (ph) Ted Cruz.

(BEGIN VIDEO CLIP)

LAURA INGRAHAM, FOX NEWS CONTRIBUTOR: The pressure on the republicans
is going to continue to mount. A lot of conservatives, myself included in
spirit, love to kind of fighting (ph) Ted Cruz.

(END VIDEO CLIP)

SCHULTZ: Is it there something like maybe picking the right fights
when your own party tells you that this is a false errand and it doesn`t
sink in? Laura, maybe you should get Ted Cruz to listen to your show more
often. Certainly, you don`t think that, do you? One thing Laura Ingraham
conveniently didn`t mention was of course the $24 billion that the stunt
caused this economy.

When democrats head to the bipartisan budget conference, they need to
remember this number and they need to stick it to them with that number.
Don`t talk to me about fiscal responsibility. You`ve caused this $24
billion. Oh, what`s that word the canter likes (ph) to use all the time?
Offsets, how are we going to offset this? Let me tell you what the target
is and they will be as ruthless as they can be when they get to that table.
Its going to be social security, Medicare, Medicaid, and those damn food
stamps, and all those takers (ph) just grabbing all the time.

I hope this hangover from this shutdown last all the way through the
midterms. Because, you know what, liberals, we have to think about the
country in 2015, because you see, we have had the White House, the House
and the Senate, and we`re really nice, we really didn`t go for the jugular
legislatively, we were thrown all the branches all over the place. But of
this hangover, on the Republican Party, stays with the American voters.
And if the democrats do get the house in 2014, there won`t be anymore
crisis caucus. And if we can hang on to the senate, 2015 could be a hell
of a legislative year for President Obama because I think the president has
learned that there`s still a bunch in these folks you can`t deal with.
Like the 144 congressional members last night, what did they do? They
voted for default. They wanted this number right here. That`s how many
people are in the house that wanted to see this economy go down.

But even worse than that, 18 republican senators voted for default, 18
of them. This is supposed to be the chamber of debate. This is supposed
to be the chamber of respect and statesmanship. It is a statesman to say,
I think we ought to default on our debts. Last night, Senator Marco Rubio
said, people are going to revolt over ObamaCare.

(BEGIN VIDEO CLIP)

SEN. MARCO RUBIO, (R) FLORIDA: A lot of people are going to wake and
realize, hold on a second, this is not free health insurance, this is not -
- this is something that`s going to cost us something we`re already happy
with. It`s hurt (ph) at work. It`s cost us our relationship with our
doctor, our premiums have gone up, and they are going to be angry about
that. There is going to be an all our revolt on this country over that,
and that is I think the moment to absolutely act and say we`re going to get
rid of this law.

(END VIDEO CLIP)

SCHULTZ: Revolt? Who`s going to be revolting? Ted Cruz? Sarah
Palin? Minorities across America who were going to love ObamaCare? Small
businesses who can`t wait to sign up for it? People who don`t have it,
like 40 million? I mean, is this revolt going to come from 40 million
across America? Is this revolt going to come from people who can actually
not get kicked off the insurance rolls because they got sick? Who`s this
revolt going to come from? Oh, it`s probably going to come from Glenn
Beck.

Yeah, Glenn Beck was in Washington recently trying to rile up all the
veterans. Take a look.

(BEGIN VIDEO CLIP)

GLENN BECK, TELEVISION AND RADIO HOST: Hi everybody. It is a -- it`s
strangely good to be on Washington.

(END VIDEO CLIP)

SCHULTZ: Yeah. Where`s the crowd Glenn? That look like a little
league football crowd just down in the street. Give me a break. Come on,
I thought you used (ph) just draw hundreds of thousands of people. But
wait a minute, there`s going to be a revolt.

Let me talk to you about the Farm Bill for a moment. While we have
spent $24 billion on nothing, we`ve had this huge debate for three years in
this country about $3 billion in the senate bill in the Farm Bill. And
then there was $20 billion in the house bill but they didn`t like that so
they opted to $39 billion. And there`s huge debate about whether we can
even have a Farm Bill in America anymore because it was just to damn
expensive, but in a matter of days, these guys can cause the country $24
billion, and the sad thing about it is, they`re probably going to get away
with it.

We have no recourse. This is why Americans hate Washington. We feel
helpless. $24 billion, gosh, I wonder if Detroit could use some of that
money. I wonder if Chicago might like to help out their public schools.
They`ve only closed 50 of them in the last six months. Distorted
priorities, it`s what the republicans are all about. And just remember,
when you go to conference democrats, they`re still republicans.

Get your cellphones out. I want to know what you think tonight`s
question. Can the republicans still call themselves the party of fiscal
responsibility? Text A for Yes, text B for No to 67622. You can always go
to our blog at ed.msnbc.com. We`ll bring the results later on in this
show.

For more, let me bring in Congressman Tim Ryan of Ohio. OK. The
Buckeyes are good, I know all that, enough of that. Congratulations
Congressman, you`re back to work. You were on the right side of the isle
on this with no question about it. You were all along. But I`m curious
tonight, I`d like to know from you, what`s it like in Ohio? What are
people saying in Ohio? Is this republican hangover going to affect the
midterms in which is such a pivotal state for 2016?

REP. TIM RYAN (D) OHIO: Well, I just got home this afternoon. So I`m
anxious to see the, you know, this weekend while we`re home `cause we`ve
been in D.C. for such a long period of time. But my inclination from the
people I`ve talked to already tired of the Tea Party, Ed. They`re tired of
the irresponsibility, tired of the recklessness. Ohio has always been
democrat or republican pretty pragmatic. Either republicans were never
super conservative, they were always more moderate. Even John Boehner,
before he started getting lead around by the nose by the Tea Party, was
fairly -- he was conservative but he was constructive. He passed bills.
He wouldn`t try to do hostage takings.

And so, my sense is that, there is going to be a backlash against this
Tea Party irresponsibility not by (inaudible) the nail on the head. 140
some republicans last night voted to default on the credit of the United
States and to keep the government shutdown. How irresponsible and reckless
can you be?

SCHULTZ: Well, can the republicans ever say that they are the party
of fiscal responsibility from this point on?

RYAN: No, they couldn`t. They state they haven`t been able to --
from the very beginning, I mean, let`s go back to the 1993 budget with
President Clinton, all democrats. Eight years later, we are in surplus for
four of those eight years .

SCHULTZ: Yeah.

RYAN: . and we have money to pay down social security, the old
lockbox debate that happened in the 2000 election, then the republicans
come in and cut taxes for the wealthiest, we start running huge, huge
deficits again, too worse on the credit card. A prescription drug not only
on a credit card but didn`t allow us to negotiate down drug prices with the
drug companies and then the deregulation collapses the whole economy. We
have -- going to a free fall, we got to do a rescue package for the auto
industry, you have to do a stimulus bill, and they have the audacity to
turn around and say, "What is democrats?" I`ll tell you what, they really
know how to spend a lot of money and we`re still cleaning up their messes
from the last 20 years.

SCHULTZ: Well, I hope that the democrats don`t allow the republicans
to get amnesia when it comes to who`s paying for what in the budget
negotiation. You`re on the house budget committee. I think you know very
well what Paul Ryan is going to be pushing for. There`s going to voucher
talk. There`s going to all kinds of talk about curving social security
benefits and then no revenue. Do you think that this country can
straighten its finances out with no revenue, no new revenue?

RYAN: I don`t think so in the long-term. I think it needs to be a
balance approach. And, there`s a lot of things that we can do smarter with
prevention, wellness, food, nutrition, talk about the Farm Bill. You know,
we subsidized a lot of food that is really, really bad for us.

SCHULTZ: It`s one and a half percent of the federal budget. The Farm
Bill is one and a half percent of the total federal budget, 80 percent of
it goes to nutrition and that`s what the republicans want to cut and they
can`t get it.

RYAN: Sure.

SCHULTZ: It`s amazing. I want to play a clip .

RYAN: Absolutely.

SCHULTZ: . I want to play a clip from President Obama talking about
disagreement versus dysfunction. He addressed this earlier today.

(BEGIN AUDIO FILE)

OBAMA: And we come from different parties, but we are Americans
first. And that`s why disagreement cannot mean dysfunction. It can`t
degenerate into hatred.

(END VIDEO FILE)

SCHULTZ: That is the first time the president has used the word
"hatred" to my knowledge. Did Republicans disagreement turn to hate? I
want your take on that, Congressman.

RYAN: I think for some it has, you know, I think for a core group you
can`t help but to watch them on TV. Last night we were coming out after
the vote and we had some Tea Party fans out there on the Capitol Hill steps
screaming that are act our vote, our yes vote was treasonous.

SCHULTZ: Yeah.

RYAN: And then, my buddy Mike Doyle from Pittsburgh looked at me and
said, "Wait a minute. We kept the government open .

SCHULTZ: Yeah.

RYAN: . and we make sure we`re going to pay our bills. Is that your
irresponsible (ph)?" But that`s what you`re (ph) dealing with angry,
hatred, hateful people, who a lot of them hate the president, a lot of them
hate democrats. And they thumb their nose at the constitution, Ed. They
say they`re for the constitution but they thumb their nose at it at the
very process the founding fathers set up for us to follow.

SCHULTZ: Well, we`ll see if they go through a personality
transformation between now, and then the budget negotiations. Tim Ryan,
good to have you with us tonight. Go Buckeyes. I`ll give you that one.
Good to have you with us tonight.

RYAN: Good luck.

SCHULTZ: Thank you so much. Coming up, caught in a web. Anthony
Weiner reveals his deepest regrets. Oh, by the way there`s a full moon
tomorrow night. Plus Chris Christie may think he`s hot stop at New Jersey,
but he had no coattails for Steve Lonegan. Cory Booker goes to the senate.
Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: Time now for the Trenders in the social media. This is
where you can find this Facebook, Twitter and of course our blog and
website ed.msnbc.com. And this is where you can find me on radio, Monday
through Friday, noon to 3 p.m SiriusXM channel 127. Well, the Ed Show
social media nation has decided and we are reporting here our today`s top
Trenders voted on by you.

(BEGIN AUDIO FILE)

MAYOR CORY BOOKER, NEWARK NEW JERSEY: Thank you New Jersey.

SCHULTZ: The number three Trender, Senate Showdown.

UNIDENTIFIED MALE: Newark Mayor Cory Booker wants a seat in the US
senate.

UNIDENTIFIED MALE: And I said to myself, who wants that job anyway?

UNIDENTIFIED MALE: The 44 year old becomes the first African-American
elected to state wide office from the garden state.

SCHULTZ: Cory Booker is the garden states newest senator.

BOOKER: We are here for everyone. Don`t go down there for victories
for a party, or for politics, but go down there to work for people. That`s
why I`m going to watch not to play shallow politics, but to engage in the
kind of heart (ph) humble service. We have work to do. We must do better
because when better is possible even good is not enough.

SCHULTZ: The number two Trender, NET OS.

ANTHONY WEINER, FORMER US REPRESENTATIVE: I have said that other
texts and photos were likely to come out.

(INAUDIBLE)

UNIDENTIFIED MALE: And maybe instead of (inaudible) send a picture of
his (inaudible) but his camera phone auto corrected.

SCHULTZ: Serial Sexter, Anthony Weiner says that Internet cost him
the mayor`s race.

UNIDENTIFIED MALE: He`s just a guy with self control issues
(inaudible).

UNIDENTIFIED MALE: Get them Ed (ph).

SCHULTZ: And today`s top Trender, Back to Work.

OBAMA: We`ll begin reopening our government immediately,

UNIDENTIFIED MALE: The National Zoo is going to need a day to get
things going. The Panda Cam however will be going live this afternoon.

SCHULTZ: Panda Cam`s back up and 800,000 workers are back on the job.

OBAMA: We`ll bounce back from this. We always do.

UNIDENTIFIED MALE: But look no further than the traffic on the
streets going from the heart of the district to know the Nations Capitol is
back in business.

OBAMA: I`ve got a simple message for all the dedicated and patriotic
federal workers, thank you. Thanks for your service. Welcome back.

SCHULTZ: And we welcome Michigan Senator Debbie Stabenow now to the
program tonight. Senator, good to have you with us.

SEN. DEBBIE STABENOW, (D) MICHIGAN: Great to be with you Ed.

SCHULTZ: You bet. Lots of calculation in the coming days about how
harmful the shutdown was to the economy. Your thoughts on this. What`s
your calculation?

STABENOW: Well, Ed thousands has been saying -- I mean $24 billion to
the economy. You know, I chair the agriculture committee. We work really
hard to eliminate subsidies and get $24 billion dollars in savings over the
next 10 years. They did it in just a couple of weeks, $24 billion.

They`re stopping (ph) start crises over the last few years have caused
us 900,000 jobs. And as you know I focus on manufacturing and I can tell
you democrats would rather be focused on manufacturing jobs than another
manufacturing crisis, just manufactured crisis that they`ve been doing is
outrageous. It`s irresponsible. It`s reckless. And I hope they`re not.

SCHULTZ: Senator, 18 of your colleagues in the senate last night
voted for default. I mean, I find that to be a shocking number. I thought
it would have been, you know, at least 90-95 votes or something like that,
but it wasn`t. It wasn`t near that.

My question to you is how do you plan to move forward in this
environment, when you have ideologues who have no problem causing the
taxpayer $24 billion, yet they fight to the (ph) nail over $3 billion in
the senate over food stamps?

STABENOW: Well, you know, first of all we`ve got to bring together
the middle, the people that do govern. In my judgment, some of those folks
were just never going to be able to talk to them, you know, what they
honestly want to say .

SCHULTZ: What do you think the middle thinks to this?

STABENOW: . makes no sense.

SCHULTZ: What do you think the middle thinks to this?

STABENOW: Well, I know in the senate, when we were coming to the
floor and saying, "We need to resolve this. We need to come together." We
were joined by republicans like John McCain, like Susan Collins, Lisa
Murkowski, others who were embarrassed and angry at what was being done to
their party and so .

SCHULTZ: They were embarrassed by Ted Cruz?

STABENOW: Oh, there`s no question about it. No question about it.
When Ted Cruz is on the floor speaking, you normally see no other
republican in the room. And so we`re going to move forward whether it`s
focusing on the budget, I`m a senior member (ph) of the budget committee
and we`ve got a very tough road to go here in terms of trying to put
together a balance budget whether it`s the farm bill. I also have my
confidence going on now. We`re going to find that reasonable middle that
moves things forward, but .

SCHULTZ: What is the reason -- Senator, I have great respect for you,
what is the reasonable middle when they want to cut social security? When
they want to .

STABENOW: Well, that`s not reasonable.

SCHULTZ: OK, all right.

STABENOW: No, no, no. Let me say, first of all, you know what the
hardest about all of this is -- there`s two things I would say in terms of
going into this budget. First of all, they won`t acknowledge that we
already have put in place $2.5 trillion in deficit reduction.

SCHULTZ: Yes.

STABENOW: You know, Simpson Bowles said four trillion. We`ve put in
place two and a half, and the yearly deficit has been pack in (ph) half.
So that`s one thing. The second thing is and as you know, we start from
saying, "Yes, we`re getting older, demographics are changing, how do we
strengthen Medicare and social security for the future?" They say, "How do
we eliminate it?" So we are in very different spot and the only way we
come together is if we -- together, if they decide that social security and
Medicare are here to stay .

SCHULTZ: Yes.

STABENOW: . and that we need to find things that will strengthen it
for the future.

SCHULTZ: And what are the chances of us going through this exercise
again in your opinion?

STABENOW: You know, I don`t know. I really don`t know. I do know
that the majority of members in the senate, the majority of republicans do
not want to go through this again. I`m sure that Ted Cruz does. But in
the House of Representatives, it`s hard to know.

SCHULTZ: Well, that`s 144 .

STABENOW: It`s really hard to know.

SCHULTZ: . of them last night that voted for default. I think that`s
an awfully .

STABENOW: Right.

SCHULTZ: . an awfully strong statement about how united these Tea
Partiers or whatever .

STABENOW: Right.

SCHULTZ: . they call themselves, how crazy they are to shut down the
government and then take us to the edge of default. Well, we know what
moves republicans and that`s near crisis and collapse. So we did burn the
.

STABENOW: Well, as I said again -- you know, as I said again, we want
manufacturing jobs not manufacturing crisis. So we are .

SCHULTZ: All right, Senator .

STABENOW: . going to pivot it back to jobs.

SCHULTZ: Senator Debbie Stabenow of Michigan, good to have you on the
Ed Show. Thank you so much.

Coming up, a house stenographer gets kicked out. Nothing happens when
elected officials make bizarre ransom (ph), I add. And still ahead, a
right wing conspirator thinks President Obama wanted the shutdown? But
next, I`m taking questions, Ask Ed Live stay ahead right with us on MSNBC.

(COMMERCIAL BREAK)

SCHULTZ: Keep those questions coming. Love this segment. Love to
hear from our viewers here on the Ed Show tonight in our Ask Ed Live
segment. Our first question comes from Lisa Hall. Tea Party is talking
impeachment of the President, why can`t we talk treason for Boehner and the
Tea Party?

Well, I actually, I did talk about treason with Boehner and connected
it to him last week on this program and of course all the conservatives,
they just loved it. Look, if they have the opportunity they will do
everything they can to impeach the President of the United States. But why
can`t we talk treason for Boehner and the Tea Party? We have bigger fish
to fry like running the country. Why would we want to waste time on that?
The main thing is we have to stay engaged, activists need to move forward
we`re a year from owning the House after this fiasco.

Our next question is from Hank Melton. He wants to know, when will
Ted Cruz learn that the American people are more important than his Twitter
followers? Easy answer. Never. Stick around, Rapid Response Panel is
next.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show and thanks for watching tonight.
Last night we witnessed a bizarre outburst at the end of the 16th day of
the government shutdown, as lawmakers finish voting the stenographer and
the house started shouting had to be dragged from house floor.

According to reports the woman surprise staff and house members which
she took to the microphone and started shouting about God and Freemasons.
In an audio recording the woman can be heard shouting, "We will not be --
he will not be mocked. You cannot serve two masters. And the constitution
was -- this constitution was written by Freemasons, they go against God.
The woman was forcibly removed and interviewed by Capitol police before
being sent to a hospital for a mental health evaluation. I honestly hope
she gets whatever care or treatment she might need, although hearing
religion on the house floor is nothing new. Republican lawmakers who want
to cut food stamps and take away healthcare use religion to gain political
advantage all the time.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Some say that this is nothing more than an effort
to impose mine, or yours, anybody`s religious values and others. This is
not about imposing values because the values don`t work unless you really
believe them. Who`s harmed by these values? Who does -- how does
promoting these values hurt anyone?

REP. TED CRUZ, (R) TEXAS: Each of you was called to be here. Much
like Esther, you were called for a time such as this.

UNIDENTIFIED FEMALE: As people of faith, I`m a born again believer in
Jesus Christ and I believe that it`s part of my duty as a believer in
Christ in what he is done for me that we should do for the least of those
who are in our midst. Let`s repeal this failure before it literally kills
women, kills children, kills senior citizens, let`s not do that, let`s love
people.

UNIDENTIFIED MALE: The way I see it our job is to preserve our values
in the 21st century. We need to apply our principles to the challenges of
today. That means we can never give up on repealing and replacing
ObamaCare.

UNIDENTIFIED MALE: I looked at 2 Thessalonians 3:10, "For even when
we were with you, we gave you this rule. The one who is unwilling to work
shall not eat."

UNIDENTIFIED FEMALE: And I thank God that we finally have the will to
stand up, take on this oppressive president and stand for what is good, and
righteous, and true.

(END VIDEO CLIP)

SCHULTZ: Joining us tonight with the Ed Panel, MSNBC contributor
James Peterson and Nancy Giles Sunday Morning contributor. I want to say
that both of you have been called here.

NANCY GILES, CONTRIBUTOR, CBS, SUNDAY MORNING: Yes I feel it.

SCHULTZ: You have been called here.

(CROSSTALK)

SCHULTZ: . Ed Show tonight.

JAMES PETERSON, MSNBC CONTRIBUTOR: Yeah.

SCHULTZ: Holy smokes. I mean, what is in about republicans they
constantly use the bible to justify cuts to programs that people badly need
in this country?

GILES: I can`t even believe it hearing the clips again, the one of
Michelle Bachmann really pops out the most where she directly goes between,
how she`s been called, and she and God has her told her to. For the least
of (ph) to make sure ObamaCare doesn`t go into place. Yeah, a program of
the American -- the Affordable Care Act by the way, a program that has
extended healthcare to people, the young people, have kept people out of
emergency rooms, has kept who weren`t able to get insurance because of
preexisting health. I mean just on that core.

SCHULTZ: Their method of making the case.

GILES: Yes.

PETERSON: Is contradictory, there`s no way -- there`s no way to make
that case based on Christian principles without contradicting ones up. But
let`s keep in mind the bible in Christianity has been used to protect and
defend homophobia, to protect and defending the intuition (ph) of slavery,
to protect and defend racism and segregation. So, you can use the doctrine
of Christianity. You can manipulate it and use it to say whatever it is
that you want to say but when you think about just the sort of core
Christian principles, what the Affordable Care Act does is a very Christian
kind of law .

GILES: Of course it is.

PETERSON: . an accepted (ph) healthcare to people who can afford it
and you have to think in some kind of absolute sense that that would be
consistent with the teachers (ph) of the Bible.

SCHULTZ: There is also biblical scripture about how you handle your
money. You know, $24 billion at the drop of a hat is thrown away because
of what? A political point?

PETERSON: That`s right.

SCHULTZ: Are they not hypocrites?

GILES: They`re totally hypocrites and I know I`ll getting the hit on
my .

PETERSON: We`ll get them on Twitter (ph) but you can`t claim fiscal
responsibility .

GILES: No, and .

PETERSON: . and be responsible for this.

GILES: Everyday the amount of money that was lost and also you can`t
call yourselves the jobs, jobs, jobs party by laying people off.

SCHULTZ: Right.

GILES: And if the whole -- this whole exercise in stupidity and using
something as beautiful as any kind of scripture, it`s just more proof of
how .

PETERSON: Sad.

GILES: . it can be manipulated to serve anyone`s cause.

SCHULTZ: It is manipulated.

GILES: Totally.

PETERSON: It is.

SCHULTZ: It`s a very profound point and it just permeates throughout
the entire conservative movement with their organizations. Tony Perkins of
the Family Research Council says, "It`s not the government`s job to take
responsibility for the poor."

(BEGIN VIDEO CLIP)

JANET MEFFERD: We`re hearing a lot of rhetoric that, if you really
want to be a faithful Christian, what you really need to do is become a
liberal because they really care about the poor and things like that.

TONY PERKINS: OK, well, let`s unpack that for just a moment, Janet.
What is that saying? Is that saying then the government has the
responsibility to care for the poor? That`s not what the scripture says.
The scripture handed that responsibility to you and I as members of the
faith of followers (ph) of Jesus Christ. That`s who gave it to, not to the
civil government. He never said to Rome -- to the Romans, "Hey, you guys
need to make sure that you`re taking out of one person`s pocket to put into
another." He said, "No, you sell all that you have and give to the poor.
You take that responsibility."

(END VIDEO CLIP)

SCHULTZ: We are the government.

GILES: We`re the government.

PETERSON: Right, we are.

SCHULTZ: We are -- we all have a voice.

GILES: And that`s exactly right.

PETERSON: Yes, we don`t feel like our government is -- as
representative as it should be right now .

GILES: Of course.

PETERSON: . because of a disconnect between congress and real people.

GILES: Right.

PETERSON: But this is the kind of stuff I think that kind of makes my
blood boil because it`s really -- they`re inverting the principles of
Christianity in the actual comments that they`re making.

GILES: And their showing a real, I`m sorry, lack of understanding .

SCHULTZ: Yes.

GILES: . of basic of what you started by saying, "We`re the
government." So we as Christians are supposed to help our brother, I mean
that`s like .

SCHULTZ: Right.

PETERSON: But there`s -- one other thing here is that what the right
wants to do is they believe in charity. They believe that individual,
wealthy people or churches can help poor people and feed them. They think
that will take care of all the challenges. It won`t, but you can`t bring
that to (inaudible) .

SCHULTZ: Well, that`s what Eric Canters .

PETERSON: . what we need is just as an equity (ph).

SCHULTZ: That`s what Eric Canter said at a Town Hall meeting .

PETERSON: Right.

SCHULTZ: . to a sick woman.

PETERSON: Right.

SCHULTZ: . so we can go out and get some charity. But this neo
conservative movement that has got a grip to the total of 144 in the House
just look at how voted, they want to just exonerate themselves from any
responsibility of any social responsibility whatsoever in America.

PETERSON: Right.

SCHULTZ: That if you don`t have it, that`s too bad. You own on your
own. You own your own attitude. What about the Christians in government?
The Family Research Council has a political action committee, don`t they
have a responsibility?

PETERSON: I think they do. Some (ph) of the mind honestly that we
need less religion in government, we need less Christian and religious
rhetoric on our government. But if you`re going to be Christian and be in
government, you`re going to be a lobbyist organization than be a real
Christian.

GILES: Than be a real Christian. I mean, and it`s not something
that`s subject to discussion. I mean, the waiting and the care and the
charity and the love of people is all there.

SCHULTZ: So all of this rhetoric that`s on the floor about faith,
it`s almost as if we`re better than you.

GILES: Oh, yes.

SCHULTZ: OK, and their trying to divide clearly connect it to the
shutdown on how they really don`t value American families and they have no
problems .

PETERSON: Yes.

SCHULTZ: . spending $24 billion for a political point. How much of a
wake up call is this to the progressive movement and to the center?
Because independents make up the biggest, you know, political block in this
country. The middle class economic block is the biggest voting block in
this country.

PETERSON: Yes.

GILES: Well, I maybe a little too optimistic. We were saying this
outside, but I really think that this has been a wake up call for everyone.
Even though I keep hearing about the different races that could be
challenged from the right (ph), I believe even in some of gerrymandering
districts, they now know how important government is. How essential
government is and that is an inadvertent accident.

PETERSON: And we can hope so. I think progresses are more focused on
pressing the left and it kind of dispense with the right a long time ago.

SCHULTZ: Yes, all right. James Peterson, Nancy Giles congratulations
on your reward.

GILES: Thank you.

PETERSON: Thank you.

SCHULTZ: Thank you so much for joining us. Coming up, now you know
they raised horses in Kentucky, but they also slice hogs and bring home the
bacon. Mitch McConnell loads up the truck on the debt ceiling (ph). Stay
with us.

(COMMERCIAL BREAK)

SCHULTZ: And the Pretenders tonight, radio fraud, Mark Levin. This
right wing conspirator believes the president coordinated the death lock
(ph) in Washington.

(BEGIN VIDEO CLIP)

MARK LEVIN: This president of the United States is threatening to
violate the 14th amendment, if not Article 1, that is to drive this nation
into intentional default. He is prepared to do it. What could be better
than to fundamentally transform America? And it is Obama who is holding
the nation ransom if his demands are not met, and met absolutely.

(END VIDEO CLIP)

SCHULTZ: Levin, you got to get with the program. President Obama
wasn`t holding the nation hostage for personal gain denying paychecks to
hard working government employees and leading the nation to the edge of
fiscal ruling. Mark Levin has got the wrong guy; luckily he doesn`t need
to look too far to find who is responsible for organizing international
harm to our nation.

(BEGIN VIDEO CLIP)

LEVIN: Senator Ted Cruz, how are you sir?

CRUZ: Mark my friend, I`m doing great, it`s good to be with you.

LEVIN: We`re very, very proud of you despite what some of the
mouthpieces are saying out there.

(END VIDEO CLIP)

SCHULTZ: They just like each other so much. Ted Cruz joined Levin on
a show after the senate deal and was met with praise. Mark Levin is so
proud that the country just blew $24 billion, if he thinks that`s a good
deal, he can keep on pretending.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. This is the story for the
folks who take a shower after work. We talk a lot on this program about
infrastructure, about jobs. Well, this is something that kind of unfolded
in the fight last night.

Senate Minority Leader Mitch McConnell got a pretty nice deal on last
night`s agreement to overt a world economic crisis. The gentleman from
Kentucky has been the biggest single obstructionist in the history of this
country especially when it comes to infrastructure. Last night, the great
state of Kentucky got $2.8 billion investment for a lack in dam project.
Friends across the street, well, they`re not real happy about it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Time now for News By The Numbers, the ear mark
(ph) edition. Here are the extra checks that were written into last
night`s bill to open the government and continue the debt ceiling.

First, $3 billion, that`s how much Senators Harry Reid and Mitch
McConnell had secured for a funding project for a dam in Kentucky. It was
originally allotted at $775 million. It got quite an upgrade.

(END VIDEO CLIP)

SCHULTZ: Now, this must be the new republican infrastructure plan.
The governor -- government needs to be shutdown and negotiations needs to
be in the crisis mode for them to approve legislation which creates any
jobs.

Now, the story here is that the White House wanted this. Harry Reid
said it would have cost the government a lot more, have they had not put
this money in. Flooding on the Ohio River is a big, big deal. When a
flood comes it takes everything. It takes all kinds of relief money. So,
for the long-term this is a good thing.

My issue with Mitch McConnell on this, dude, you`ve been obstructing
infrastructure all over the place, but when it`s in your backyard and you
got a crisis and you know you can choke somebody`s chain to get the money,
you go ahead and do it. That`s how the republicans run the railroad.

Brad Woodhouse joins us tonight. Americans United for Change
President and former Democratic Party Communications Director joins us.
Brad, what do you make of this? Is this is just another Washington two
step?

BRAD WOODHOUSE, AMERICANS UNITED FOR CHANGE PRESIDENT: Well, look,
it`s pretty incredible. Look, I`m like (ph) you, Ed, I support
infrastructure spending. I hope when they meet and talk about a budget and
try to, you know, deal with the government funding for next year, they`ll
talk about infrastructure spending. But I don`t think Mitch McConnell`s
years of obstruction should been rewarded in this case.

SCHULTZ: By the way, he`s got a tough race coming up. What about
that? I mean this something he just had to have.

WOODHOUSE: Well, look, he, you know, he`s kind of squeezed any which
way is going. I mean, that comes with someone who spent all of their time
in Washington looking out for themselves and now he finds that he`s been
challenged by the right of significant primary from Tea Party person who
won`t look to McConnell (ph) and the fact that he came in at 11th hour and
cut the deal.

But on the other hand, Kentuckians know that he`s been the walking-
talking example of dysfunction in Washington. So I think he`s getting
credit for essentially handing the fireman the hose after he set the match.

SCHULTZ: This is a great opportunity for the democrats to come back
and say, "Look, you know this is good for your backyard. You know this is
good to build infrastructure in jobs. Why don`t you do this in all 50
states?" It would seem to me that there would be some other senators who
would be upset about this because a lot of them in their backyard they`ve
got projects that are really, really needed. Not to mention, we could use
$24 billion to fix some bridges on this country.

WOODHOUSE: That`s right. Imagine if we have $24 billion jobs plan, a
$24 billion infrastructure plan. But I think you`re exactly right. The
folks that are sitting down and he`s not actually one of these people at
the table, the folks that are sitting down over the next few months to come
up with a budget should looked at Mitch McConnell and say, "You know what?
We need more of this. This is what the country needs." It`s what we need
to get back on our feet economically. It`s what we need to do create jobs.
And guess what, it`s what government supposed to do, is to invest in
infrastructure and things to help the American people.

SCHULTZ: So, how we`re going to get infrastructure going on in
America if the only way we can move anybody is take us to the edge of a
fiscal cliff?

WOODHOUSE: Well, it shouldn`t come to that. One thing I think they
came out of this that I was happy to see and I know you were with the
democrats and the president were reunited and they stood up. And the
President said today, "You know what? The work that government workers do,
the work that the government does is important. And you should be proud of
it." And the republican just stopped monkeying around with it.

So, democrats stay unified. I think there is hope to get some money
to help create jobs to help invest in infrastructure and to improve the
economy. But, it`s going to be -- the test is going to be whether Mitch
McConnell and John Boehner are more concerned about their reelections or
their positions in leadership than they are in the country.

SCHULTZ: All right. Brad WoodHouse, good to have you with us
tonight. Thanks so much.

WOODHOUSE: Thanks, Ed.

SCHULTZ: That`s the Ed Show. I`m Ed Schultz. Politics Nation with
Reverend Al Sharpton starts right now. Good evening Rev.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY
BE UPDATED.
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