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The Ed Show for Monday, June 1st, 2015

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Show: THE ED SHOW
Date: June 1, 2015
Guest: Ron Christie, Bruce Bartlett, Craig Varoga, Mercedes Schlapp, Vassy
Kapelo


(BEGIN VIDEO CLIP)

SEN. RAND PAUL, (R) KENTUCKY: Secretly want there to be an attack on the
United States so they can blame it on me.

ED SCHULTZ, MSNBC HOST: Plus, he went there.

UNIDENTIFIED MALE: He recently said you favor rising the retirement age
for social security, to what age?

FRM. REP. JEB BUSH (R) FLORIDA: 65 to 68 or 70.

SCHULTZ: Later, reality check.

UNIDENTIFIED MALE: You had Ed Schultz around and said you were a great
candidate with your experience in business.

UNIDENTIFIED MALE: I tell you, I appreciated what Ed Schultz said and he
happens to be right.

SCHULTZ: And Bernie brings it.

UNIDENTIFIED FEMALE: Nearly 600 plus against (ph) packing in here. So
many crews actually had opened one of these walls and expand the room for
everyone to fit.

(END VIDEO CLIP)

SCHULTZ: So, when do we use the word interesting? I guess right now. The
2016 presidential race is getting interesting. Good to have you with us
tonight folks. Thanks for watching.

South Carolina Senator Lindsey Graham is official often running for
president to the surprise of many. Graham picked off his campaign from his
hometown of Central South Carolina today. The foreign policy War Hawks
started his presidential run with the usual rhetoric.

(BEGIN VIDEO CLIP)

SEN. LINDSEY GRAHAM, (R-SC) PRESIDENTIAL CANDIDATE: I want to be president
to defeat the enemies trying to kill us. Ronald Reagan`s policy of a peace
through strength kept America safe during the Cold War. But I`ve come to
conclude we will never enjoy peaceful co-existence with radical Islam
because its followers intend to destroy our way of life. However, America
can be and will be secure only if we have strength. Security through
strength will protect us.

(END VIDEO CLIP)

SCHULTZ: Well, Senator Graham said that he wants to meet problems honestly
and realistically. That last sound bite my question all of that. But
anyway the senator said he wants to make government work for the American
people again. He then went right back to fear mongering.

(BEGIN VIDEO CLIP)

GRAHAM: Radical Islam is running wild. They have more safe havens, more
money, more capability and more weapons to strike our homeland than any
time since 9/11. They are large, they are rich, and they`re entrenched.
As president I will make them small, poor and on the run. And partnership
with others, we must take the fight to them. Building lives of defenses
over there so they can`t come here.

(END VIDEO CLIP)

SCHULTZ: Should and somebody remind the Senator from South Carolina just
how this Iraq think worked out not long ago. Thousands of lives lost,
trillions of dollars spent. In fact to this day we don`t know exactly how
much we spent on it. But what we did get of it was ISIS. Just when you
thought Graham was done trying to scare votes out of people. This is
happened.

(BEGIN VIDEO CLIP)

GRAHAM: The world is exploding in terror and violence, but the biggest
threat of all is the nuclear ambitions of radical Islamist who control
Iran. There are no moderates in Iran running their government.

If the United States isn`t firm and in our intention to deny them such
weapons, Iran will trigger a nuclear arms race in the least stable region
on earth, and make it more likely that people who aspire to genocide will
have the most effective means to commit it.

(END VIDEO CLIP)

SCHULTZ: No doubt he`s a hawk talker. Now, if you want never ending war
in the Middle East Lindsey Graham I guess is your candidate.

Meanwhile another Republican senator running for president couldn`t be
further away from Graham on National Security. Rand Paul from Kentucky is
against International Intervention. He is also leading the charge against
provisions of the Patriot Act in the Senate.

On Sunday Paul halted key sections of the Patriot Act including Section
215. This program authorize the NSA`s bulk collections of phone megadata
roving wiretaps in the program to monitor lone wolf suspects also expired
at midnight last night.

This is no doubt a win for Rand Paul and his presidential campaign
especially when it comes to fundraising. He turned heads with these
remarks on the senate floor.

(BEGIN VIDEO CLIP)

PAUL: Are we so frightened that we`re going to give up our freedoms. Are
we willing to really trade liberty for security? People here in town think
I`m making a huge mistake. Some of them I think secretly want there to be
an attack on the United States so they can blame it on me.

(END VIDEO CLIP)

SCHULTZ: OK. Paul`s Republican colleagues are furious over this what some
are calling a political stunt. The government claims it has fewer tools
today to stop terrorist. Senate Majority Leader Mitch McConnell had this
to say.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL, (R-KY) MAJORITY LEADER: These aren`t theoretical
threats Mr. President. We have to face up to them. We shouldn`t be
disarming unilaterally as our enemies grow more sophisticated and
aggressive, and we certainly should not be doing so based on a campaign of
demagoguery and disinformation lunched in the wake of the unlawful actions
of Edward Snowden.

(END VIDEO CLIP)

SCHULTZ: So we might as well give everybody a say on this. Former New
York Governor and presidential candidate George Pataki is also slamming the
Senator for Kentucky for the move.

(BEGIN VIDEO CLIP)

FRM REP. GEORGE PATAKI, (R) NEW YORK: So, I think he is wrong. I don`t
understand why if it`s going to happen on Wednesday or Thursday he doesn`t
allow it to happen today.

It is simply putting Americans at risk for a political reason. I think
it`s wrong and I think it`s unfortunate.

(END VIDEO CLIP)

SCHULTZ: So here where we`re. The Senate has advance the version of
Patriot Act called the USA Freedom Act. The bill overwhelmingly past the
House with 388 votes to 88, the bill moves the storage of phone megadata
from being held by the government to being held by the Telecom Companies.
The Senate could vote on a final version of this bill as early as tomorrow.

Get your cellphones out. I want to know what you think tonight. Tonight`s
question, "Should the Patriot Act be reauthorized?"

Go to polls.msnbc.com/ed to cast your vote. We`ll bring the result in the
next segment of the program.

For more let me bring in Kelly O`Donnell NBC News Capitol Hill
correspondent. Kelly thanks for your time tonight. Is it fair to say that
Rand Paul is kind of the lone wolf on the Hill with the political
activities in the last 48 hours?

KELL O`DONNELL, NBC CORRESPONDENT: It has certainly felt that way Ed. And
what we saw even this afternoon was an opportunity to move things along and
for the Senate to consider some changes that you just explained sooner to
do it today. And Mitch McConnell said we already know what the outcome is,
let`s move this along and Rand Paul using his right as any senator has
objected. And so that pushes it in tomorrow. That`s one tiny example of
many where he has been out of step with his own party.

That`s become moments to Bill Galvano for Rand Paul. He believes that he`s
standing up for principles that he`s held for a long time. The libertarian
side every Republican Party where he might have some agreement with some
other members. Not on this. Many of them who I`ve talked to believe he is
going too far and the more hawkish side of the Republican Party is really
fed up, everything from just open frustration to kind of barking at each
other to eye rolling.

They`re tired of Rand Paul using the tools of the Senate, things that he`s
allowed to do as part of procedure for what a number of Senators believe is
a political purpose that he wanted to be able to claim a victory that he
brought the end to the government bulk collection, which is a goal that
many people had shared. But they`ve believe that he has taken it too far.

When I asked him if he was being sort of overtly political and making this
about his presidential campaign he said "No, he didn`t think so" and that
he said "There would always be scenic (ph) who would challenge him on that.
But these are long held views that he`s had. And he`s sticking up for what
he told people he would do when here in the Senate, Ed.

SCHULTZ: What the White House reaction at this hour after all of this
today?

O`DONNELL: Well, the White House is saying that the USA Freedom Act which
is this variation which would shifted from government to Telecom Companies
holding the records is the way to go and that the lapse that we`re in right
now is irresponsible and without naming poll they made a reference to sort
of the partisanship of this, and that the Senate should move without
considering more of this partisan battles.

So the White House wants to see this past, many Republicans and Democrats
want to see it past and most people say it will past even without Rand
Paul`s vote. He`s just getting use every roadblock in the rule book to
slow things down, Ed.

SCHULTZ: All right, Kelly O`Donnell on Capitol Hill tonight. I appreciate
you time. Thanks so much.

For more let me bring in Jonathan Alter MSNBC Political Analyst and Ron
Christie with us tonight, former Special Assistance to President George W.
Bush and Daily Beast columnist, gentlemen great to have on tonight.

JONATHAN ALTER, MSNBC POLITICAL ANALYST: You`re welcome.

SCHULTZ: Let`s backup just a little bit to Lindsey Graham.

RON CHRISTIE, DAILY BEAST COLUMNIST: Right.

SCHULTZ: What`s the mission here Ron.

CHRISTIE: I think what Lindsey Graham is kind of try to do is position
himself as the foreign policy expert. You know he served in the military,
in the United States air force for a long time.

SCHULTZ: In military judge didn`t he?

CHRISTIE: Military judge, he was the former Judge Advocate General. And
his going to go up there on the state and say "I have more foreign policy
experience and everybody else up here I want to put 10,000 more troops back
in Iraq, I`m the guy who can lead America forward post Obama base on the
treat that we have for foreign affairs and national security.

SCHULTZ: Watching his announcement today Jonathan. There weren`t too many
people clapping when he talked about that.

ALTER: Yeah.

SCHULTZ: I mean this is a rather unpopular position isn`t.

ALTER: What it really interesting is pretty clear the Republicans aren`t
going to nominate either of these guys. Rand Paul is too far the
libertarian side and Lindsey Graham and John McCain are out of step with
where the country, where war-weary. We don`t want to fight on all these
countries so their going to nominate somebody who`s in-between the two of
them.

But what`s interesting is whoever they nominate both of these guys are
really changing the party, they are pulling it from different sides and a
different kind of Republican Party will come out of this. So this is a
struggle for power that`s larger than the presidential campaign.

SCHULTZ: Ron, what do you think of that?

CHRISTIE: I think he`s right. I think you`re absolutely right. And I
think what is going to be most interesting is when we get to the South
Carolina Primarily if these two are still on it. You`re going to have
fireworks Ed. You`re going to have such a dynamic between Rand Paul and
Lindsey Graham going at each other base on I want more troops on the
ground. I don`t want any more troops on the ground. And their ideological
philosophies differ so greatly -- what I think might happen is could hurt
someone like a Jeb Bush or Scottt Walker. These guys might knock with the
establishment types and it`s really going to dramatically change certain
nominee we`re going to get.

SCHULTZ: So, what do you think this does Ron to Rand Paul`s campaign? Is
this a fundraising stunt like Kelly O`Donnell pointed out that these are
long held views that she`s had about the constitution, there were a lot of
people that were upset with the collection of data but, are safe or less
safe today because of Rand Paul?

CHRISTIE: Yes, I think that safe to say. I mean intelligence gathering in
dissembling and using intelligence. You don`t want to hit the light switch
to the down position and turn it off the way that he did. I put this at
his feet for at least temporarily suspend on Patriot Act.

SCHULTZ: Your take on that.

ALTER: What`s very interesting about that is that it`s very good news
politically for the Democrats and Hillary Clinton and here`s why. If God
forbid, there is another attack on American soil. It will be harder for
the entire Republican Party to say "See, it`s Hillary Clinton and Barack
Obama they`re the ones who let down our defense, elect us because we`ll
make American strong because the Democrats will be able to say "Hey, no,
it`s Rand Paul. It`s part of the Republican Party.

CHRISTIE: Yeah.

ALTER: That took our defenses. In muddies (ph) any kind of a national
security message, the Republican`s might want to carry in the fall in 2016.

SCHULTZ: Well, with Section 215 gone for awhile anyway are less safe.

ALTER: Couple of days.

CHRISTIE: Couple of days.

ALTER: I don`t think they`re going to be able to, you know, terrorists are
going to be able to get something going and in these couple of days,
because that suggest that Section 215 was what was keeping us safe. And
there`s a lot of controversy about that, about whether it really was
deterring or preventing terrorist attacks. But they very hard seem out.

SCHULTZ: The government can pretty much do whatever it wants to do. And
they have a certain amount of time, hours to connect to the judge.

CHRISTIE: Right.

SCHULTZ: Who`s at department -- or justice department for the FISA Court.

CHRISTIE: Right.

SCHULTZ: So they sure listen to anybody they want to listen.

ALTER: They should use the FISA Court and that`s when Rand Paul is right.
And this debate is healthy because the problem with all of these
limitations on our freedom is when they happen in World War I or in World
War II. You know, we knew there was an endpoint. When the war was over
we`re going to get our freedom back. The problem with these laws is that
they`re permanent. And what Rand Paul is rising. Do we want these
permanent restrictions and our freedom or should we revisit from time to
time to have healthy debates like we`re having.

SCHULTZ: And the other portion of this whole dynamic of the story is Mitch
McConnell.

CHRISTIE: Right.

SCHULTZ: How can you not see this coming?

CHRISTIE: Yeah and you heard the Senate Minority Leader Harry Reid say
just that on the Senate floor the other night. Look, I don`t want to
attack Republican, I don`t want be little the majority leader. But you had
to see this coming, right. I mean you knew that Paul.

SCHULTZ: Was this a Kentucky thing.

CHRISTIE: It could be.

SCHULTZ: You know, I mean Rand Paul goes homes say "You know, I try to do
something about it but Mitch McConnell wouldn`t let me."

CHRISTIE: Yeah, but here`s the thing that I find odd about this.
McConnell was very specific and very personal in his language about Rand
Paul for what he did. But yet McConnell was supporting Rand Paul for
President. You can`t have it both ways.

ALTER: Well, that was because for Rand Paul in account use to be big
rivals.

CHRISTIE: Right.

ALTER: In Kentucky politics. Mitch McConnell supported Rand Paul`s
opponent and the Republican primarily when Paul first run for the Senate.
So there was bad blood to try to get right with Rand Paul when Mitch
McConnell was running for reelection.

CHRISTIE: That`s right.

ALTER: Last time-out. He had, you know, peace deal.

SCHULTZ: Yeah.

ALTER: That`s not been blurted (ph). And obviously can`t stand each
other. And it`s going to be fascinating to watch them like two scorpions
in the battle.

SCHULTZ: So, Rand Paul certainly not a popular position 388 votes over in
the House on "Yes".

CHRISTIE: Yeah.

SCHULTZ: I mean does it makes kind of a tough on the campaign doesn`t it?

CHRISTIE: It does matter.

SCHULTZ: I mean he`s -- I think we got a dose of reality just how far he
away he is...

CHRISTIE: Yeah.

SCHULTZ: ... from the nomination with all of that.

ALTER: Exactly.

CHRISTIE: 388 votes in the House. You have an overwhelming number of
folks in the Senate both parties. President Obama wants to extend this. I
think he made he`s point. I hope it`s not for fundraising purposes, but
there a lot of folks in Capitol Hill today Ed, who`re saying "This look
more about his presidential campaign and keep American safe.

ALTER: He`s going to be in this all the way through the primaries. He`s
unlikely he`ll get the nomination but he`d be like Rand Paul he`s father on
steroids and we will not be done with Rand Paul in our politics for quite a
long time.

SCHULTZ: OK. Jonathan Alter, Ron Christie, great to have you with us
tonight. Thank so much.

Remember to answer tonight`s question at polls.msnbc.com/ed. We`ll have
the results right after this break. Follow us on Facebook, watch my
Facebook featured "Give me a minute", and you can get my video Podcast at
WeGotEd.com.

Coming up, the GOP`s age old attack on retirement continues. We`ll look at
how Jeb Bush he`s comments apply (ph) on the campaign trail.

And later, Democratic challengers chip away at Hillary Clintons lead. The
Rapid Response Panel weighs in on the widely Democratic field.

Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And the numbers are coming in. Here`s where we stand on
tonight`s Bing Pulse poll. Tonight`s question, "Should the Patriot Act be
reauthorized?"

38 percent of you responding say "Yes". Rand Paul his position popular at
62 percent.

We`re coming right back on the Ed Show. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And we are back on the Ed Show. Thanks for watching tonight.

The attack on social security has started in the presidential race, Lindsey
Graham picking off his campaign today calling for a hike in the retirement
age.

(BEGIN VIDEO CLIP)

GRAHAM: Anybody on social security and Medicare. Anybody wants to be on
social security Medicare one day. All of us and younger people you may
just have to work a little bit longer.

(END VIDEO CLIP)

SCHULTZ: Well, Chris Christie told the New Hampshire voters to raise it up
to 69 the age for retirement. Jeb Bush says he`s running for president but
did say "When seniors should receive benefits"

(BEGIN VIDEO CLIP)

BUSH: We need to look over the horizon and begin to phase in over an
extended period of time going from 65 to 68 or 70. And that by itself will
help sustain the retirement system for anybody under the age of 40.

(END VIDEO CLIP)

SCHULTZ: How about 75, 80 what the heck, 35, 40, 45 year career. All
these reforms wouldn`t affect current senior but would still burden a whole
new generation. Jeb`s brother wanted to undercut the safety net was well.
George W. Bush tried to privatize the system and dump money into the stock
market diverting taxes into private accounts would have drain money from
current retirees. The propose reform was a path to a disastrous benefit
cut raising the retirement age puts benefits on the chopping block again,
raising the eligibility age would mean fewer benefits for lower income
workers who typically die younger than those who make more. Life
expectancy has grown steadily for the rich. Poor people in this country
who typically work more physically demanding jobs get their benefits push
farther away.

Joining me tonight is former Reagan and George H.W. Bush policy adviser
Bruce Bartlett, Mr. Bartlett good to have you with us tonight.

BRUCE BARTLETT, FORMER POLICY ADVISER: Happy to be here.

SCHULTZ: It`s a rather interesting approached. Obviously the Republicans
are concerned about the solvency of social security they couldn`t privatize
it during the Bush years, so now they want everybody to work a little bit
longer and continue to contribute. How do you get senior citizens on board
with that?

BARTLETT: Well, first of all the social security System is not in trouble
to make it last under in exactly it`s current form, virtually forever only
requires small fixes, it doesn`t require increasing the retirement age.
That`s just one of this things that people seem to feel that they have to
say to show that they`re serious the budget and about to deficit. But you
have to remember guys like Jeb Bush are also in favor of huge tax cuts for
the wealthy. For some reason being serious about the budget never seems to
include being serious about revenue.

SCHULTZ: Paralleling life expectancy in this country it seems like this
candidates have come to the conclusion, but what the heck you can work
longer. Again selling this is a popular point with the American people as
you see it.

BARTLETT: Oh, absolutely not there`s a very considerable amount of poll
data showing the people are absolutely opposed to rising the retirement
age. And apparently Mr. Bush is not even entirely clear on what the
retirement age is. It was 65 for most of the of social security history
and in 1983 Congress voted the increase at gradually to age 67 for people
in my generation we have to wait until age 66 as it is, to get full
retirement benefit.

SCHULTZ: Jeb Bush also said he learned a lesson on spending from his
brother. Listen to this.

(BEGIN VIDEO CLIP)

BUSH: I learned also from not having -- keeping the reins on spending. I
mean because of the war and because of the focus on protecting the
homeland, I think he let the Republican Congress get a little out of
control.

(END VIDEO CLIP)

SCHULTZ: What`s your response that Mr. Bartlett?

BARTLETT: Well, I think it`s astonishing. I mean you think his brother
the president was just some guy, you know, who was an innocent bystander
and this, you know, bullies in Congress, you know, force them to accept
higher spending, you know, but the president has a veto, plus he has an
enormous amount of political leverage to utilize through the off-set
management budget and other government agencies to try to keep spending
under control. He never did a single solitary thing.

SCHULTZ: Yeah.

BARTLETT: Spending gross from I believe 17.5 percent of GDP when he took
office to over 20 percent by 2008 even before the deficit, you know, growth
because of the economic collapse.

SCHULTZ: Well is it this someone of a moment Jeb Bush saying, "Hey I`m my
own man, I don`t think just like W."

BARTLETT: Well, perhaps but he was pretty coy about blaming his brother.
And when he`s been ask other questions about for example would he go into
Iraq as his brother did. He sees skirted (ph) the question and it`s not
entirely clear to me exactly what his position on that issue is.

SCHULTZ: All right, Jeb Bush`s said he`s brother is not going to be a
problem. Well, we shall see as time goes on, Bruce Bartlett good to have
you with us tonight. I appreciate your time.

Still to come, Bruce Jenner`s big reveal and a Donald gets ready to jump in
the 2016 race, we think. We`ll look what he brings to the Republican field
if that`s what`s going to happen.

Stay with us we`re right back.

(COMMERCIAL BREAK)

SCHULTZ: Welcome back to the Ed Show. This is news you can`t miss.
Vanity Fair`s newest cover model, posing like you`ve never seen it before.
The magazine`s July 2015 cover story is titled "Call me Caitlyn" it`s the
first photo Caitlyn Jenner formerly known as Bruce. The image was shot by
a celebrity photographer Annie Leibovitz.

This is the first time the former Olympic athlete and reality show father
is speaking publicly since completing her gender transition. In other
celebrity news today, Donald Trump dropped a big hint on social media.

(BEGIN VIDEO CLIP)

DONALD TRUMP, BUSINESSMAN: June 16 the Trump tower 11:00 major
announcement. Let see what happens.

(END VIDEO CLIP)

SCHULTZ: Is that kind of a launch him invite. Look, if Donald Trump runs
I think he has as good chance as anybody else in the field the presidential
contenders for the Republicans, because unlike Jeb Bush, Trump will not
attack your retirement in social security at least that`s what he said.
Trump is created more jobs and all the other Republican candidates put
together. Now if the Republican loves businesses and he`s the guy? This
would be a candidate who knows a thing about risky business recovering,
building, signing paychecks. Here`s what Trump said when a reporter ask
him about my perspective while at the White House correspondents center
(ph).

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I want to ask you about the election.

TRUMP: Yeah.

UNIDENTIFIED MALE: You had Ed Schultz around and said you were a great
candidate with your experience in business and also social security you or
and I want to cut any entitlements correct?

TRUMP: I`m not going to be cutting social security and I will tell you I
appreciate what Ed Schultz said and it happens to be right.

(END VIDEO CLIP)

SCHULTZ: Still to come, Martin O`Mally hits Hillary Clinton hard on the
first day of campaign trail Rapid Response Panel weighs in on Clinton`s new
Democratic challenger.

And more later, Canadian officials continue their push for the Keystone XL
pipeline.

Stay tune you`re watching the Ed Show in MSNBC. We`ll be right back.

MARY THOMPSON, CNBC CORRESPONDENT: I`m Mary Thompson with your CNBC Market
Wrap.

Stocks begin the week with gain, the DOW adding 29 points, the S&P at 4 and
the NASDAQ rising 12 points.

Intel the worlds largest chip maker is a making deal buying Altera for
$16.7 billion. It`s Intel`s second attempt to buy the company.

Consumer spending was unchanged in April, the flat rating book (ph) that
we`re showing in three months.

And gas price rose as $0.4 over the past two weeks. The $2.84 of gallon,
prices are about 85 percent below or $0.85 below where they were last year.

That`s it from CNBC, first in business worldwide.

(COMMERCIAL BREAK)

SCHULTZ: And we are back on the Ed Show.

Hundreds of supporters gathered at Baltimore to cheer on former Maryland
Governor Martin O`Malley as he launched his presidential campaign on
Saturday.

O`Malley wasted no time taking direct shots to Democratic front-runner
Hillary Clinton.

(BEGIN VIDEO CLIP)

FMR. GOV. MARTIN O`MALLEY, (D) MARYLAND: Recently, the CEO of Goldman
Sachs let his employees know that he`d be just fine with either Bush or
Clinton. I bet he would.

Well, I`ve got news for the bullies of Wall Street. The presidency is not
a crown to be passed back and forth by you between two royal families.

(END VIDEO CLIP)

SCHULTZ: Well, however, Clinton isn`t the only candidate who said to give
O`Malley a run for his money if he mounts a good charge anyway.

Vermont Senator Bernie Sanders is now Clinton`s top rival in early polls in
his drawing overflow audience is to prove it. They`re listing to this guy.

Last week in Davenport, Iowa, Sanders produced a standing-room-only crowd
of 750 people at an event slated to seat just 300.

On Sunday, just yesterday, more than 3,000 supporters gathered in
Minneapolis, Minnesota for a rally for Senator Sanders. Many supporters
stood outside because the hall was absolutely full.

An Ed Show producer was on the ground to ask folks why they were siding
with team Bernie.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I think -- you know, I think he is on the right side
of almost all the issues. I mean that wealth gap is one of his big issues
and of course I think that`s very important.

UNIDENTIFIED FEMALE: I`m a social worker and so I really support his views
on welfare.

UNIDENTIFIED MALE: Both of us are out here because we`re really
appreciative of having someone who is campaigning for President, who
doesn`t bitter on the Bush, someone who seems to not be playing the
political game. We want somebody who is willing to actually fight for the
issues that we care about.

UNIDENTIFIED MALE: I expect him to. You know, challenge Hillary Clinton
and really propose a different voice and one that`s a little more last
president (inaudible).

UNIDENTIFIED MALE: Bernie Sanders does bring a new prospect, but more than
he`s really old.

UNIDENTIFIED FEMALE: I never find this code required by position to make
it. Maybe require and I found some in people (inaudible).

(END VIDEO CLIP)

SCHULTZ: Joining me tonight is NBC News Correspondent Harry Smith with a
lot of connections to Iowa.

HARRY SMITH, NBC NEWS CORRESPONDENT: Oh, you believe.

SCHULTZ: What is happening with Bernie, these crowds at this time? What
do you make of it?

SMITH: Just about unprecedented. It`s been a lot of time covering the
caucuses over the years. I remember being out with Barack Obama seven
years ago in the middle of the summer and they were kind of on fire because
there were 50 or 60 people there, all right? I mean he was doing a lot of
retail, a lot of retail. But this kind of when I take up the paper this
morning, I saw the hundreds of people that showed up for Sanders in Iowa
then the couple of thousand that showed up in Minneapolis. I was blown
away. This kind of stuff does not happen.

SCHULTZ: He is not running any television ad. He doesn`t have a whole lot
of money.

SMITH: No.

SCHULTZ: He just does a message and those folks that he is talking to, he
saying something they want to hear? Is that it?

SMITH: Was a couple of different things that play here. I think you need
to remember that in Iowa and in Minnesota, they were actually were prairie
socialist. You know leeway back in the day. There some pretty liberal
roots that run up and down Iowa 35. But at the same time as all those
demographic is changing, all those folks have sort of died away. There
really is a hunger and thirst and people want to get their hands and see
these candidates.

I remember Hillary Clinton seven years ago, got there late. It was just
kind of amazing. People are sort of looking and shaking their heads.
People hard-core female Democrats were already the support what she saying.
What`s the deal here? And there is a little of that now too.

SCHULTZ: She is not holding the kind of events that Sanders is holding.

SMITHL: Wide open town halls. She asked me whatever you want.

SCHULTZ: OK. When does she do that? What do you think?

SMITH: I don`t you know, I`m not on the inside of that. But I was
befuddled by how she performed seven years ago. Another person that comes
into mind when you think about this stuff, who was the guy who campaign
unto Americas, right? John Edwards.

SCHULTZ: John Edwards, yeah.

SMITH: And that first caucus, been held a week later in `04, I promise you
he would a bit in Kerry. He came on so strong and of course he came in
second to Obama seven years ago.

SCHULTZ: So, Sanders is something to really watch here as you see it. I
mean these early crowns. I mean it couldn`t be any better this early,
could it?

SMITH: You know Ed, it is -- you would think of this as there is an "Oh-
wow" moment and I think that if -- I wouldn`t bet that he doesn`t actually
show up. I think there could be a "they`re there" and I think maybe just
about sent (ph). Have you view heard those young people, right? They`re
not -- they don`t want to hear balder, plodder, whatever you want to call
it. This guy is saying "I want to put 13 million Americans to work, fix in
the infrastructure in the country", right?

Everybody knows how bad the roads are and the sewer systems and everything
else. Everybody has been talking about and this guy says, let`s do this
thing.

Maybe it`s something as simple as that. Maybe, you know, one health care
payer, all this other stuff. You look at the suffering that the middle
class, the lower middle class working Americans, the stuff you talked
about. That`s going to have residents with somebody.

SCHULTZ: Well, I think that it`s going to be very, very interesting
according to the latest polls. We`ve got to Democratic caucus-goers.
Sanders has tripled his support in Iowa and I find it interesting.

Hillary is still dominates at 57 percent. Bernie stands at 16 and growing
and of course O`Malley had 2 percent. You know, these are early, early,
early numbers but the crowds. The latest crowds of Sanders tells me that
he double his numbers for a reason.

SMITH: I got it on what you know. We got to watching him as he goes back.
And want to watch these numbers over the next month or two, because when it
gets done.

SCHULTZ: Yeah.

SMITH: This is when people say. Listen, Hillary may even seem inevitable
to them but they may still as Iowans want to make a statement and say "You
know what, you think -- this is a coronation run for you but we have other
things to say here we may want to pull you back in other direction.

SCHULTZ: Harry Smith thanks for your time. I appreciate you coming in
Tonight.

SMITH: Always a pleasure.

SCHULTZ: Thank you so much.

SMITH: You bet.

SCHULTZ: Joining me tonight on Rapid Response Panel, Craig Varoga, also he
is a Founder and President of the Patriot Majority Act and Former Chief
Strategist for Governor O`Malley`s last campaign and Republican strategist
Mercedes Schlapp is with us tonight.

Craig, your thoughts, how does O`Malley get into this race. Obviously, he
is in it. But how does he start gathering his team?

CRAIG VAROGA: Well, I think, you know, the really interesting thing that
here we`re just talking about, is that Sanders is a significant factor.
And O`Malley`s real opponent right now is Sanders, it`s not Hillary
Clinton. And Sanders, you know, by any metrics is doing significantly
well. He has crowds as you said. He has more than a million Facebook
likes.

And for Governor O`Malley, he needs to deal with the Bernie Sanders factor
without getting into a battle of the long shots. Then he needs to raise
money, then he needs to run a perfect campaign and frankly he probably
needs to get lucky in a short term over the next several months.

SCHULTZ: I would think he needs a lot of luck. And he -- of course,
Bernie Sanders as he`s not going to attack Hillary Clinton but of course
Mr. O`Malley did. Mercedes Schlapp, what do you think of that?

MERCEDES SCHLAPP, REPUBLICAN STRATEGIST: Well, you know, I think Governor
O`Malley`s struggling right now because he really in sort of this policy
wonk. He`s not this inspirational figure. And so, I think when you look
at him out on a campaign trail, he comes across a little awkward. And so,
you know, I think after O`Malley. He needs to go ahead and attack Hillary
Clinton. And the one area that he can do that is by saying we shouldn`t
have this political dynasties and he`s trying to work with, you know,
fighting for the American people.

And so, I think for Bernie Sanders what`s so interesting about him is that
he really comes across being this crusader. And he really is just
unfiltered straight shooter really had the vision whether you agree with it
or not. And I think to work its refreshing for does especially the liberal
Democrats, those grass roots folks that are out there saying "You know,
what, I don`t know if I quite trust Hillary Clinton". And so, Hillary
Clinton`s got to be careful because if her numbers start to continue to
drop into the fall and close to the primary season. She can be in a little
bit of trouble there.

SCHULTZ: Well, I think that Republicans who`ve certainly want to see
Hillary Clinton have some trouble. And I think some grass roots Democrats
want issues addressed by Hillary Clinton that Bernie Sanders has already
done.

SCHLAPP: That`s right.

SCHULTZ: Now, listening to Mr. O`Malley of the weekend Craig, you know,
he`s going after Wall Street, he`s a big supporter of the middle class,
he`s going to try to out Bernie-Bernie (ph), it seems like and attack
Hillary at the same time. So, how does he go introduce himself in Iowa
when he`s kind of Bernie light? I don`t mean this the guy at all but let`s
face it. He may have some name recognition as used early on.

VAROGA: Well, look, I think that one he is sincerely believes everything
he said. He certainly has a very progressive record or he had a very
progressive record as Governor.

What he needs to do is to go into Iowa and do soma retail politics just the
way that Sanders has done. He needs to also find one or two issues with --
that Hillary Clinton and he disagree on and he needs to emphasize those
issues.

You know, what we heard on Saturday, it was a good speech but it was
systematic. It was an issue driven in the sense that it didn`t show the
specific policy differences that he has with Senator Clinton. So, it`s
like -- I think that`s what he needs to do.

But in order to deal with the Sanders factor, if you can guide with him
directly that`s a problem too, because it`s a battle of the long shots and
that`s not going to help O`Malley in the long term.

SCHULTZ: So, when does Hillary Clinton start doing different types of
campaigning the way the other guys are doing it, Mercedes.

SCHLAPP: Goodness. I don`t even know she`s ever going to get off that
listening tour. It feels like she`s been on the listening tour for years.
You know, I think it`s really to her disadvantage that she`s not being
clear on specific issues like the issue of trade. I think it really does
confused, I think, the Democratic voter to be like well, do we, you know,
do we want to trust her. She says she`s for the working family but then,
she`s dealing with the speaking engagements that are over $300,000. She
still seems very cozy with Wall Street.

And so, I think, it brings up so many questions and if you do have that.

SCHULTZ: Yeah.

SCHLAPP: A little bit about open space. I think Bernie Sanders is, you
know, again, being that straight shooter talking what he believes he should
be the right thing for America. And I think that the Democratic liberals
are listening.

SCHULTZ: Well, I just got word that Bernie Sanders has asked the DNC for
more debates. Mr. Varoga, what do you think of that?

VAROGA: Look, I mean, they`ve already offered six. I think that the
natural, you know, tactic that he would do. I`m sure that O`Malley will
join him and ask him for additional debates. We`ll see whether there are
more. I certainly think that a robust debate and discussion is great not
just for the Democratic Party and those candidates but for the country.

SCHULTZ: All right, Craig Varoga and Mercedes Schlapp, great to have both
of you with us tonight. Thanks so much.

VAROGA: Thank you Ed.

SCHLAPP: Thank you, Ed.

SCHULTZ: Still to come, Hillary Clinton gets a big payday from Canadian
companies promoting the Keystone XL pipeline.

We`ll have the details coming up. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And here are the numbers, the result of tonight`s Bing Pulse
poll. Question, "Should the Patriot Act be reauthorized.

39 percent of you say "Yes", 61 percent of you say "No", that number been
pretty consistent the last half hour. Keep voting until the end of this
hour at polls.msnbc.com.

We`re coming right back on the Ed Show. Stay with us.

(COMMERCIAL BREAK)

SCHULTZ: And in tonight`s two-minute drill, a record setting marathon on
Sunday. 92 year old Harriette Thompson became the oldest woman ever to
finish a marathon. Thompson is a cancer survivor. Good for her. And she
finished the Rock `n` Roll marathon in San Diego, California with the time
of seven hours, 24 minutes and 36 seconds. A big congratulations to
Harriette on record in setting the pace at that way.

And meanwhile, of course, I didn`t run any marathons this weekend but I
sure caught some fish. Here was -- some of the scenes from North Country
Lodge on Saturday.

(BEGIN VIDEO CLIP)

I`m at Wrong Lake in Manitoba Big Eddie`s North Country Lodge. Let me see
that fish, Woody (ph). Look at that, baby. Look at I love (inaudible) got
one on back here. Look at that, he`s fishing over Woody`s (ph) rod now.

UNIDENTIFIED MALE: All right.

SCHULTZ: Look at that son of a gun. Let me see that. How big is that?

UNIDENTIFIED MALE: That`s nice.

SCHULTZ: See if looks that`ll be about 26, 27? 26, 27?

UNIDENTIFIED MALE: 24.5

SCHULTZ: 24.5, just another day. Beautiful day here in the North Country.

UNIDENTIFIED MALE: Yeah, neat.

SCHULTZ: All right. Nice fish right there. Here we got already (ph) got
one over here, right there.

UNIDENTIFIED MALE: Kinds of fish.

SCHULTZ: All right.

UNIDENTIFIED MALE: I get even all the (inaudible) fish, you know.

SCHULTZ: He`s got another one on. Well, look at this. Here we go. Here
we go.

UNIDENTIFIED MALE: Nice fish.

SCHULTZ: Looks we`re catching, we`re catching four fish in a minute.

UNIDENTIFIED MALE: Holy cow.

SCHULTZ: You can`t be is.

(END VIDEO CLIP)

SCHULTZ: So, I think was already storm out of Fergus Falls, Minnesota who
got the big one, 11 pounds. Gosh. I know I could do this everyday of my
life if NBC Sports would just give me a fishing job.

We`ll be right back on the Ed Show, more coming up.

(COMMERCIAL BREAK)

SCHULTZ: And finally tonight, the push for the Keystone XL pipeline
apparently is building north of as border. Calgary Mayor Naheed Nenshi is
here in New York promoting his city to the energies investors. And the
Keystone XL pipeline is certainly a hot topic. He says the pipeline and
the tar sands oil it would transport from Canada have been given a bad
wrap.

(BEGIN VIDEO CLIP)

MAYOR NAHEED NENSHI, CALGARY CANADA: I would argue with (inaudible) dirty
oil. When you look at total emissions from the wellhead to the exhaust
pipe, you don`t have a lot of difference in moving step by tanker which is
how stuff gets to the Gulf Coast now versus shale oil, versus what we`ve
got in Northern Alberta. It`s all oil. And we all have to move to a
little carbon future. We all know that.

But the question is did getting rid of this pipeline actually move you
there any quicker? And I would argue it doesn`t.

(END VIDEO CLIP)

SCHULTZ: As Canadian leaders from Keystone. One of America`s top
Democrats is pretty much silent on the issue. New report shows a
connection between Hillary Clinton and a company`s backing the pipeline.
The Huffington Post reports two Canadian banks with big ties to TransCanada
sponsored speeches given by Hillary Clinton just months before she
announced her presidential campaign, those speeches netted (ph) the former
secretary of state more than a million dollars.

The speeches were paid for either in full or in part by Canadian Imperial
Bank of Commerce and the TD Bank. Both banks have ties to TransCanada that
have been major advocates to the Keystone XL pipeline in addition one of
the CIBC board members as a former TransCanada lobbyist and fundraiser for
Clinton`s 2008 campaign. It`s not clear how the banks money was used that
each event. It also is not clear where Hillary Clinton stands of the
Keystone XL pipeline.

Let me turn tonight to Vassy Kapelos, she is a parliamentary correspondent
for the Global National, great to have you with us tonight. Vassy, is this
an issue with Canadians the support that the in some more seeking of
Hillary Clinton?

VASSY KAPELOS, GLOBAL NATIONAL: I think it`s somewhat of an issue I mean
especially heading into your presidential race down there we`re all sort of
watching to see where Ms. Clinton stand. I think a few years back when she
was secretary of state it was more clear that perhaps she did support, it
was leaning in that direction but that`s support seems to have weigh in or
at least she`s becomes sort of a bit more silent on it and we`re not
hearing a lot from her on it.

SCHULTZ: Now, where to just recent elections in Canada that there was a
big party shift in fact and most those folks who have been elected and the
leadership are against the Keystone XL pipeline, so where is this momentum
coming from just a financial sector?

KAPELOS: Yeah, that`s a really interesting question, your absolutely
right. With that election in Alberta that`s the province here in Canada
where all this oil seats. The new government there is not supportive of
the Keystone XL pipeline they say that a little ship jobs to the U.S. where
we should just be refining that oil here. Momentum has definitely weighed
in over the past few years. I remember when I was working in that province
a few years back the question was more when will it get approved in the
United States now. Then it sort became, if it will be approved and now I
feel like we`re all just waiting for, you know, when it will officially be
tool (ph), you know, we`ll get an official no and we can kind of move on
from there and see it perhaps the next presidency will approve it.

So, I think that you right it`s possibly still coming from companies from
the business sector which is very heavily invested and its approval. But
overall I have a sense that that momentum, you know, in Canada as a whole
has definitely weigh in.

SCHULTZ: Do you think they were trying to buy Hillary Clinton and buy
influence with the financial connections there?

KAPELOS: That`s an interesting question. I`m not sure if I`m not
necessarily equipped to answer and I don`t I -- it wasn`t my report. But I
can tell you that it`s not a surprise hearing that major financial
institutions or, you know big banks with connection to the energy sector
would be trying to influence or garner some support among political
leaders. Nobody has really made a huge secret of that. You know, the
government here, the federal government has even lobby in many, many
industry insiders and many government officials in the U.S. for years on
this issue.

I think the question for many people here is, you know, why hasn`t that
worked to a certain degree. But I don`t think it`s necessarily be in a
secretive as the as the reporting kind of made it out to be in this
particular instance.

SCHULTZ: Who`s willing the environmental argument on this? You just heard
the mayor of Calgary who`s on MSNBC earlier saying that, you know, it`s not
the dirtiest oil. You have others who are against the pipeline and saying
it`s dirties oil in the world and it shouldn`t come to market and it`s not
going to affect gas prices here in America and of course it`s dirtier than
anything else that`s being refined down Texas. So who`s winning that
argument in Canada?

KAPELOS: In Canada that`s an interesting question. I think it`s still a
very viable argument that the argument is being hide here, you know, I
think there`s a reason that, you know, people are sitting back and saying,
why hasn`t this pipeline be improve and we`re very cognizant of the debate
that`s taking place in the United States and where President Obama stands
on it. And the comment he`s made especially in the last 6 months about the
type of oil we have here.

I think there`s a large section of this population that is defensive and
would disagree with the assessment that in such dirty oil. But even the
new government in Alberta is talking about putting carbon tax, what can we
do? We`re very aware that the reputation of our oil.

SCHULTZ: Yeah.

KAPELOS: . is at stake here and it hasn`t been a good reputation for sure.

SCHULTZ: Vassy Kapelos good to have you with us tonight. I appreciate
your time. Thanks so much for your perspective on all of this in your
reporting.

That`s the Ed Show, I`m Ed Schultz.

PoliticsNation 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.
END

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