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Presidential Candidates Woo Iowa and New Hampshire Voters

Aired January 01, 2008 - 15:00   ET

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


JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: Welcome back to the CNN Ballot Bowl.
I'm Jessica Yellin with the CNN Election Express in Des Moines.

We are just two days away from the Iowa caucuses and all day we are bringing you the candidates unfiltered and in their own words. The candidates are crisscrossing Iowa and New Hampshire as they make their closing arguments to the voters.

This hour, We will go live to Senator Hillary Clinton addressing supporters in Sioux City, Iowa. And we will hear more from Senator John McCain as he speaks to New Hampshire voters at a diner in Tilton, Hampshire.

But, first, strong foreign policy experience, Bill Richardson says it is needed now more than ever in the Oval Office. At a rally in Des Moines the day after Benazir Bhutto was assassinated, he pointed to Pakistan.

(BEGIN VIDEO CLIP)

GOV. BILL RICHARDSON (D-NM), PRESIDENTIAL CANDIDATE: Some of my Democratic opponents have misplaced faith in Musharraf.

Like the Bush administration, they cling to a misguided notion that Musharraf can be trusted as an ally to fight terrorism, but to change his despotic ways. Despite their faith, Musharraf has thumbed his nose at America again and again. How many times does the Washington conventional wisdom need to be proven tragically wrong before Washington insiders give up on it?

Musharraf must step aside now and allow a technocratic caretaker government to lead the country until free and fair collections are held. And those elections should be held very soon. Some say there are risks to Musharraf stepping down, but the risks are greater if he does not.

His inadequate attempts to disrupt terrorist activities on Pakistan's border with Afghanistan have only encouraged tribal leaders to cooperate with the Taliban. Indeed, the border area has been turned into a safe haven for terrorists. And though some stoke the fears of an Islamic takeover of Pakistan, the reality is the vast majority of Pakistanis will vote for mainstream democratic parties, as they always have in the past.

Currently polls show that only -- less than 50 percent of Pakistanis would vote for the Islamist parties -- about 12 percent. But if we continue to support tyranny in Pakistan, that number will only grow, a lesson brought home to us all too painfully by yesterday's violence.

Musharraf's narrow political base plays into the hands of Taliban and al Qaeda. Only a broadly-based democratically elected government will be able to wage what Musharraf promised, but did not deliver, an effective war against al Qaeda and the Taliban.

President Bush faced a choice with Pakistan. He needed to choose whether to support the dictator or the Pakistani people. He chose the dictator repeatedly. And by doing so, he's let down both the American and the Pakistani people. We cannot afford another president who is a foreign policy novice. We cannot afford another president who takes the easiest path rather than the right path, a president who makes wrong choices because he doesn't know how to make the hard but right choices.

The next president must be a leader who has been tested. In the course of this campaign, all the candidates were asked whether there were times when we should put human rights before our security. That question is a symptom of the thinking that's leading us astray, because that is a false choice. Our principles are the backbone of America's security. They give us direction.

They bring us allies. They make us strong. Some of us have always known that. Nearly 10 years ago, al Qaeda first attacked America in East Africa. Months before that attack, I went to Afghanistan to press the Taliban to hand over Osama bin Laden. They refused.

So we imposed tough U.N. sanctions on them and began building a coalition to keep America safe. After my trip to Afghanistan, bin Laden put out a threat on my life. But I knew that we were doing the right thing.

Unfortunately, President Bush reversed force. Until 9/11 he ignored the many experts who warned him that al Qaeda was planning to attack us at home. And then after the Afghanistan campaign, he took his eye off the ball again. He squandered our resources and international support by conducting a disastrous war of choice in Iraq.

Because of his inexperience, he listened to the ideologues. That war has diverted critical intelligence and military resources from the fight against al Qaeda and terrorism. We let up the pressure, and al Qaeda recovered. So the result today is an al Qaeda which is more diffuse and more deadly than ever.

Our intelligence services say it is headquartered in Pakistan along the Afghanistan border and that it is planning and training to attack America at home again. So we need to address the threat of international terrorism with a focus it deserves.

The war against al Qaeda is a tough military fight, but that it is more than just a military fight. It is also a fight for the hearts and minds for the world's Muslims. And the president's botched occupation of Iraq has played right into the hands of the jihadists, bolstering their propaganda that the U.S. wants to kill Muslims and that we invaded Iraq so that we could control the Muslim world's oil.

Never has America been as unpopular as it is today. In Iraq and in many other Muslim countries, polls show that our credibility has plummeted. As a direct result of the president's poor choices, large majorities of Muslims around the world now say they distrust America. Such sentiment facilitates jihadist recruitment and boosts their popular support.

And to hear the Republican candidates for president, they would continue this nation on a truly dangerous path. They fail to recognize that the enduring power rests not just in our military strength but in our ideals. We must win the war of ideas with al Qaeda. The people of the world will embrace us if we return to an American foreign policy based not only upon our power, but also upon our values.

I will close...

(APPLAUSE)

RICHARDSON: On my first day as president, I will close Guantanamo and all secret prisons.

(APPLAUSE)

RICHARDSON: We will again honor the Geneva Conventions, and we will require...

(APPLAUSE)

RICHARDSON: And we will require other nations to honor the treaty in protecting our soldiers. And, when I am president, I will put an end to torture, period.

(APPLAUSE)

(END VIDEO CLIP)

YELLIN: That was Bill Richardson speaking here in Des Moines.

And just ahead, as the CNN Ballot Bowl continues, live coverage of Hillary Clinton addressing voters in Sioux City, Iowa. We also expect to hear from former Arkansas Governor Mike Huckabee.

Plus, Barack Obama and his endorsement through a superstar.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: I'm not a book or a hand lotion or something that I can just be marketed like that.

(END VIDEO CLIP) YELLIN: Obama talks about Oprah Winfrey's endorsement of his presidential bid as he meets with voters at a New Hampshire diner -- that and more as the CNN Ballot Bowl continues.

(COMMERCIAL BREAK)

YELLIN: Welcome back to the CNN Ballot Bowl, where we are hearing from candidates unfiltered and in their own words.

We're just two days before the Iowa caucuses and candidates are crisscrossing this state, making their final appeals to the voters of Iowa. Right now we are standing by to hear from Senator Joe Biden. He will be speaking to voters in Indianola, Iowa. And we will take you there live when he begins.

But, meanwhile, every four years like clockwork, the presidential candidates trudge through the snow in New Hampshire to honor a tradition. They meet face to face with the voters at the Merrimack diner in Manchester.

Democrat Barack Obama recently stopped there at the invitation of our affiliate WMUR.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Hey, guys. This is one of the more fun events on my schedule, because what I was told was that we don't have a firm set agenda.

So, we can just talk about anything that you want, except the Red Sox, because I'm a White Sox fan.

(LAUGHTER)

OBAMA: So, you know, I congratulate you, and that's all I want to say about it.

I'm married to Michelle, who is spectacular. When I saw her, I thought, OK, I like this. So, I asked her out.

And she said, well, I can't. I'm your adviser. I said, well, this isn't serious. You are not -- you know, evaluating me or supervising me. We can go out.

She said, no, no, that wouldn't be appropriate.

So, she started trying to set me up with some of her friends, which, you know, none of them were interesting at all to me. And -- but I wore her down.

I have two daughters, Malia and Sasha, 9 and 6 years old. And they are above average.

(LAUGHTER)

(CROSSTALK) OBAMA: Like all...

(CROSSTALK)

OBAMA: It's amazing, isn't it? Yes, exactly. Exactly. And which is, by the way, the hardest thing about running for president. The sad thing is, I used worry about them. Now I realize I'm the one who is in pain all the time.

They are like, hey, daddy. Whatever. We are having a great time here. Sorry you are missing out.

You know, you are in the -- you are in the hotel room eating your little cold takeout food. And so they are having a ball.

UNIDENTIFIED FEMALE: Describe your daughters to us.

OBAMA: Malia, the older one, is -- she is like an old soul. She is one of those kids who from a very early age was just real wise.

The older one's temperament is much more like me, whereas the younger one is more like Michelle. I mean, she is much more stubborn, much more -- you know, Michelle will acknowledge this -- shorter fuse. And so my mother-in-law will say that our younger one is just like Michelle was.

I think, when you grow up without a dad in the house, sometimes you project sort of, OK, what kind of man should I be? And I was lucky enough that my mom, even though they divorced, always told me, you know, how smart he was and how, you know, he had gone back to Kenya and was involved in government.

And so I got this image in my head. It turned out later that the image wasn't really accurate, that he was a troubled man. But -- so, part of my motivation was trying to live up to this image that wasn't around to, you know, where you could dispel the image.

My mom thought I was the greatest thing in the world. And that can make -- that can make up for so much other stuff. If you just get one person who thinks, you know, that you are just the bomb...

UNIDENTIFIED FEMALE: In high school, were you more like Wally Cleaver Cleaver or Eddie Haskell?

(LAUGHTER)

OBAMA: Oh, I was definitely the bad kid.

No, I was -- you know, I was always confident, but I was a goof- off up all the way through high school.

UNIDENTIFIED MALE: How do you stay normal and humble? You have to use little tricks to do it. I know you do.

OBAMA: I'm reminded every day of my imperfections. And, you know, I think that I tend to learn more from -- I'm one of these people who tend to listen more to criticism than I am somebody who laps up the adulation.

You know, I'm always seeing how I could have done this better, or that didn't make sense, and, you know, why did I say that? That was kind of a bone-headed thing to say.

UNIDENTIFIED MALE: My folks over there are Oprah fans.

OBAMA: There you go.

UNIDENTIFIED MALE: They watch Oprah every day, obviously.

OBAMA: So, they have called me a couple of times.

UNIDENTIFIED FEMALE: Are you going to utilize Oprah in the campaign in some way? Is she going to do what she has done, for -- let's say, for example, literacy and books and getting people interested? Because she definitely has that forum.

OBAMA: I'm not a book or a hand lotion or something, that I can just be marketed like that.

UNIDENTIFIED FEMALE: No, I understand.

OBAMA: But I think that one of the things I'm pleased with is that she, I think like a lot of people, haven't been interested in politics.

UNIDENTIFIED FEMALE: That's right. That's right.

OBAMA: And I have been able -- or have been cynical about politics -- and I have been able to maybe make them feel like this might be something worthwhile.

They will not vote for me just because Clooney says, vote for him. But they will come out. See?

(CROSSTALK)

OBAMA: And then I have to get him off stage as quickly as possible because nobody will be listening to me. Yes, I know what's going on with that.

(END VIDEO CLIP)

YELLIN: Senator Barack Obama with voters at the Merrimack diner in Manchester, New Hampshire.

And ahead on the CNN Ballot Bowl, we will go live to Indianola, Iowa, where Senator Joseph Biden is set to address his supporters. We will also hear from former Arkansas Governor Mike Huckabee, as he addresses voters in Pella, Iowa.

Plus, we will get a check of the hour's top stories -- that and much, much more as the CNN Ballot Bowl continues.

(COMMERCIAL BREAK) SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: I'm Suzanne Malveaux with the CNN Election Express in Des Moines, Iowa. Just two days to go until the Iowa caucuses, we are standing by to go live to the candidates as they address voters both here and in New Hampshire. More of the CNN Ballot Bowl coming up, candidates in their own words, but, first, a quick check of today's top stories.

Our own Kyra Phillips is standing by at the CNN Center in Atlanta.

Hey, Kyra.

KYRA PHILLIPS, CNN ANCHOR: How is my little political icicle there? Is it still 12 below zero?

(LAUGHTER)

MALVEAUX: I'm melting. We did six-and-a-half-hours so far.

(LAUGHTER)

(CROSSTALK)

PHILLIPS: And you know what? You keep getting more and more excited. So, you must be warming up. Thanks, Suzanne.

MALVEAUX: I am.

PHILLIPS: All right.

MALVEAUX: Thanks.

PHILLIPS: Well, let's talk about other stories in the news right now.

President Bush offering the nation his New Year's best wishes. He and first lady Laura Bush spent the holiday in Crawford, Texas.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I have just come off the ranch. I had a good rest and good a New Year's with some friends. And I'm looking forward to getting back to Washington to work on policies to keep this country safe and to keep this country prosperous. But I just wanted to stop by and wish everybody a happy 2008.

(END VIDEO CLIP)

PHILLIPS: The president also singled out U.S. troops, saying -- quote -- "This country respects you."

The Bushes arrived back at the White House just a little while ago.

Sunday, everything is A-OK from Sesame Street, Muppets to the Queen and her court. It was all smiles and waves at the annual Rose Parade in Pasadena, California. Thousands of people camped out overnight to ensure a good view; 21 bands, 18 equestrian units joined dozens of floats for the 5-and-a-half-mile fiesta.

(WEATHER UPDATE)

PHILLIPS: Well, a new law in Washington State puts the brakes on texting while driving. Motorists face $124 ticket for reading or composing a text message on the go. Later this year, Washington drivers will also be required to use hands-free headsets if they want to talk on their cell phones.

All right, let's take it back to Iowa now and Ballot Bowl '06. I think I said 2006 last time, Suzanne. It's just one of those days, '08, not...

(CROSSTALK)

MALVEAUX: One of those days, Kyra.

I want to show you something. Check this out. You talk about the weather. OK? This is what I was trying to get a sip of Coke here. This took about 20 minutes or so, just frozen. Exploded on us. So, you can only imagine how cold it is out here.

PHILLIPS: Well, Wolf Blitzer isn't out there making hot chocolate for you?

(LAUGHTER)

PHILLIPS: Or John King?

(CROSSTALK)

PHILLIPS: You haven't put John King to work?

MALVEAUX: Maybe "SITUATION ROOM," but not here.

But I'm telling you, it has been a lot of fun. We have talked to a lot of candidates. We have seen a lot of folks here. And, of course, just ahead on the CNN Ballot Bowl, we are going to go live to Indianola, Iowa. And that's where Senator Joe Biden is being introduced. We will also go back to Tilton, New Hampshire, where Senator John McCain will be addressing supporters at the Tilton dinner, and then much more of the candidates. We have seen them unfiltered, in their own words, as the CNN Ballot Bowl continues.

(COMMERCIAL BREAK)

MALVEAUX: Well, welcome back. You are watching the CNN Ballot Bowl, where we are hearing from the candidates unfiltered and raw, in their own words.

We are standing by to go live to hear Senator Joe Biden. He will be speaking in Indianola, Iowa. And we are also going to go back to New Hampshire, where Senator John McCain is set to address supporters at the Tilton diner.

Meanwhile, the nation's security is a key issue in this race for the White House. Republican Mike Huckabee told voters in Pella, Iowa, last week what he would do if he is elected to keep America safe.

(BEGIN VIDEO CLIP)

MIKE HUCKABEE (R), PRESIDENTIAL CANDIDATE: Every day, the president of the United States ought to be asking, what are we going to do to make this world safer, make it more secure?

And there are many things out there that would do it, for one, securing our borders. In light of what happened in Pakistan yesterday, it is interesting that there were more Pakistanis who illegally crossed the border than of any other nationality, except for those immediately south of our border, 660 last year.

That's a lot of illegals from Pakistan who came into our country illegally, because we don't have secure borders. And that's got to stop. And it needs to stop with the next president and it needs to be one of the highest priorities, where we have actual borders that mean something, and that you don't just walk across them, so that it is not at this time more difficult to get on an airplane in your own hometown than it would be to get across the international border.

We have got a plan to deal with that, and we will. As we face these crises of the future, I want to be the president that makes it so that it is safer. In fact, I would like to be the president that makes it so safe that one day your grandchildren laugh at you when you tell them that when you got on an airplane you used to have to put your toothpaste in a plastic bag and take your shoes off before you could go to the boarding area. You know, my kids laugh at me when I tell them about the days of the cold war, when I was in grade school. I tell them about the days we practiced that drill duck and cover.

Remember that one?

Now, for those of you that don't remember --are either too old or too young --let me describe it for you. Back in the days of the civil defense --you're laughing because most of you know you're not that young.

(LAUGHTER)

HUCKABEE: Don't kid me.

And back in those days they would have this drill. And they would say now, look, in case the Soviets attack us with a nuclear device, all of you are to get up under your school desk and cover. That was duck and cover.

And it occurred to me later as I got a little older, did I really believe that if the Soviets were going to launch a nuclear strike on the United States that the most strategic target they could find on all the planet would be at the Brookwood Elementary School in Hope, Arkansas? (LAUGHTER)

HUCKABEE: Somehow the crosshairs were pointed right there. And then even more outrageous was the idea that if, in fact, the crosshairs were pointed at the Brookwood Elementary School in Hope, Arkansas, that somehow I would survive a nuclear device by getting up under a wooden school desk while everybody else was vaporized.

(LAUGHTER)

HUCKABEE: I mean it --it absolutely made no sense, but we dutifully practiced that because that's what we were told to do.

Speaking of being told what to do, our government is in trouble because they haven't listened to us. Somehow they forgot who the boss is. They, maybe, have gotten the idea that when we elect them, we elected them to be our bosses. The last time I checked, I think the constitution had it a little differently. They were elected to be the servants and we the people --we're still supposed to be the bosses. We are the ruling class. They're supposed to be the servant class --not the other way around. And the unresponsiveness to many of the issues that we have faced as a country mean that we need some real change and some real leadership in Washington, not people who have lived inside that bubble, not people whose experience is all about Washington, but people whose experience is in places like Pella, and, for that matter, Arkansas, where real people live.

Where they really don't want a whole lot out of their government in the sense they don't want to be told what to do, they don't want to have the government raising their kids. They really want the government to kind of step aside, secure our borders, give us peace, give us safety, so that we can raise our own families. Because we all know that mothers and fathers raise better kids than turning them over to an Uncle Sam any day. And we want to make those decisions about our kids.

(APPLAUSE)

HUCKABEE: And we want to have a country that respects every human life. One of the reasons that I'm pro-life is because I believe it's a matter of conviction and it's a matter of the very essence of our society and civilization. I didn't become pro-life because I decided would run for office. I ran for office because as a pro-life person, I knew that if we lost on this issue, if we missed it, we'll lose on the ultimate future of our civilization. Because at the heart of who we are is this idea that we're all created equal. As the founding fathers said, we hold these truths to be self-evident. In other words, they're so obvious that anybody ought to be able to see them. So I'm wondering why everybody doesn't see it.

And here's what it went on to say. These are self-evident truths that all men are created equal, endowed by their creator with certain inalienable rights, among these, life, liberty and the pursuit of happiness.

Think about that. Our rights don't come from the government, who loans them to us. They come from God, who grants them to us. And it's the government's job to simply make sure that those God given rights are protected by our government. And when our government ceases to protect them it ceases to be a decent government.

(APPLAUSE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: That, Governor Mike Huckabee, speaking in Pella, Iowa last week.

And just ahead on the CNN "Ballot Bowl," we'll go live to Indianola, Iowa. Well, that is where Senator Joseph Biden has just started to speak to supporters there.

We'll also go back to Tilton, New Hampshire, where Senator John McCain will address voters at a local diner. We are inside the diner with them and we are going to bring that to you live.

Much more of the CNN "Ballot Bowl" ahead.

(COMMERCIAL BREAK)

MALVEAUX: Welcome back to the CNN "Ballot Bowl".

We are bringing you the candidates from the campaign trail unfiltered, in their own words, raw and live.

We'll go back to New Hampshire shortly to hear John McCain address his supporters at the Tilton Diner.

But first let's head up to Indianola, Iowa. Now, that is where Senator Joe Biden is speaking to supporters.

Let's take a listen.

SEN. JOSEPH BIDEN (D-DW), PRESIDENTIAL CANDIDATE: ...affects what happens in here -- in America. And ladies and gentlemen, before I can do the things that I want to do as your president, before I can provide for a decent health care system for all Americans, before I can provide for an educational system that leaves no child behind in the literal sense, not this thing we have now, before I can make sure that children don't enter school already with half the education gap in their way, before I can do what I want to do about making sure that every qualified child gets into college and is able to attend college, before we can tackle the environment, before we can tackle the energy crisis, before -- can you hear?

Before we can do any of those things, ladies and gentlemen, we have to deal with the immediate crisis that is sitting in front of us -- Iraq, Afghanistan, Pakistan.

In Iraq, we are shedding our blood and treasure. We are shedding it to the tune of 160,000 troops in harm's way. More amputees in this war than any war since the Civil War. More young women and men coming back with traumatic brain injury than any war since and including, I might add, World War II. And spending $125 billion a year -- a commitment for the future of $800 billion a year as a consequence of this war if we're going to care for the young women and men who we are bringing back who are going to need a lifetime of medical assistance.

I've been to Iraq more than all the other candidates combined. I visit those field hospitals. I've been in every part of that country. Ladies and gentlemen, no matter what you read in the paper and what John McCain and my other friends on the other side say, we are still squandering our blood and our treasure. And we need a president who knows how to stop that. We need a president who can engage in more than bumper sticker slogans and bring the troops home.

We've already passed by over three quarters vote in the House and the Senate -- a majority of Republicans in both party -- in both houses and almost every Democrat in both houses. We've the Biden exit strategy for Iraq -- a way to bring the troops home without leaving chaos behind. It's endorsed by the major world leaders. It's been endorsed by every single solitary Iraqi leader but one -- Sadr. It's able to be implemented tomorrow. The world is ready to assist.

Except I fear this president will not act. So the next president is going to have to. The moment being sworn in, is going to have to turn, turn immediately to end this war in Iraq. The president, the moment he or she is sworn in, is going to have to figure out how, if it hasn't already occurred, to keep Afghanistan from crumbling. And God knows the world is going to have to deal with -- you've heard me like the broken record we've been saying for the last four years -- deal with the most dangerous nation in the world -- Pakistan. Pakistan.

All during all these debates, if you've watched the Democratic Party, the other candidates have been hyping the threat of Iran which, in fact, is not remotely as dangerous to us as Pakistan. Pakistan -- I was the guy in the corner in those debates going no, no, no, Pakistan. Pakistan.

Ladies and gentlemen, it has a population larger than Russia. It is an all Muslim country with 10 to 15 percent of that population radicalized. It's where bin Laden lives. It is where Al Qaeda resides -- not in Iraq, in Pakistan. It is literally where the Taliban is regaining strength and ferocity.

Ladies and gentlemen, it's a state in a state of chaos. Imagine the consequences -- imagine the consequences of the failure of this president or the next president being able to deal with and stabilize that nation. Imagine the consequences of a radicalized Pakistan with jihadis in control= and in control of all those nuclear weapons. They have nuclear weapons that can literally fly because they have the throw weight -- the missiles to send them all the way to the Mediterranean and most of the way to the Straits of Hormuz. And we're worried about Iran by the year 2015 being able to make a single nuclear weapon?

Ladies and gentlemen, it's important you know, it's important we have a president who understands -- I love my colleagues with whom I'm running and they truly are my friends. Chris Dodd is one of my closest friends in life, not just politics. Hillary and I have been each other's confidant for 19 years. Bill Richardson and I have been buddies for over 26 years. But ladies and gentlemen, where have you heard from the Democratic colleagues, without naming any of them?

One of them says the way to deal with the crisis -- and made a major speech in Des Moines about it a week ago -- the way to deal with the crisis in Afghanistan -- excuse me, in Pakistan -- is to send Cheney to meet with...

(LAUGHTER)

BIDEN: I'm not make thing stuff up. To send Cheney to meet with Musharraf. One of my colleagues running laid out and said well, this election is about electing Musharraf. Musharraf is already elected. He's already the president. This -- legally or illegally, he was elected. Ladies and gentlemen, this is about electing the parliament.

Can we afford -- can we afford to turn over -- myself, take me out of the race -- can we afford to turn over at this moment in our history the...

MALVEAUX: He's getting really soft.

BIDEN: (INAUDIBLE) now about this dangerous issue? Ladies and gentlemen, it seems to me -- it seems to me that, without exaggeration, this is the single most important election any one of you ever voted in, in your whole life, whether you're my mom's age or whether you're my granddaughter's age.

(APPLAUSE)

MALVEAUX: Senator Joe Biden addressing supporters in Indianola, Iowa.

Now, just ahead, we'll go back to New Hampshire and hear from Senator John McCain. He is inside the Tilton Diner.

We are also expecting to hear from former Massachusetts Governor Mitt Romney, as the CNN "Ballot Bowl" continues.

(COMMERCIAL BREAK)

MALVEAUX: Welcome back to the CNN "Ballot Bowl" where you have been hearing all the presidential candidates along the campaign trail.

One of those candidates is with our own CNN's John King in the Tilton, New Hampshire Diner -- John, who do you have?

JOHN KING, CHIEF NATIONAL CORRESPONDENT: Suzanne, thanks very much.

We are at the Tilton diner here in Tilton, New Hampshire. And the man many say could pull off another big surprise here in New Hampshire, Senator John McCain.

After a tough summer, big crowds of late.

Are you going to win the State of New Hampshire?

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I think we can, John. But there's a huge number still undecided -- probably bigger than back in 2000. And so I think who -- how they swing, probably in the next few days or in the last couple of days -- New Hampshire is notorious for that. We're obviously pleased with the direction we're headed, but there's still way, way too many undecided for me to have any real confidence.

KING: I want to spend some more time on politics in just a moment. But a policy question. We are told -- CNN is told by sources that Pakistan will delay its elections at least a month because of the turmoil, obviously, after the tragic assassination of Benazir Bhutto.

Is that the right call?

MCCAIN: That, I hope, is being done in consultation with the major parties, particularly PPP. If that's the overall decision that needs to be made, fine.

And I'm -- look, I'm not that much of an expert, although I know a lot about it.

If a month is agreed to by all the parties, then I think that's fine. But let's hold firmly to the date.

KING: Answer the critics, mainly on the Democratic side, who have heard your words about President Musharraf as a person from the United States should support, someone you have said is trustworthy. As you know, Governor Richardson has said he should step down. Other Democrats have said maybe we should put restrictions on the U.S. aid to Pakistan.

John McCain says?

MCCAIN: We're aiding Pakistan because it's in America's national security interests. We have 40,000 brave young Americans in a neighboring country defending the freedom of the Afghan people and Pakistan is obviously critical to that.

Look, I know that Musharraf has made a lot of mistakes. But he, right now, I think, is an important part of this process, as we move forward toward democracy and freedom in Pakistan. Look, this is a very tough situation.

If a nuclear armed failed state controlled by a radical Islamic extremist emerges out of Pakistan, we've got some great challenges.

So I think we have been doing the right thing so far. If they move forward with the elections and you have a functioning government there, then I think America's national security interests are served.

KING: Back to politics.

We are two days from the Iowa caucuses, one week from the first primary here in the State of New Hampshire. Governor Huckabee out in Iowa -- a media veil early today. We just got word from our Dana Bash who says he says he's happy to see that you're leading in the polls here in New Hampshire.

What is with this love fest between Mike Huckabee and John McCain?

And, as you answer, as you know, both of you are being targeted by pretty tough ads by Governor Romney. Governor Huckabee says Mitt Romney is dishonest, and if you are dishonest as a candidate, you are likely to be dishonest as a president.

Does John McCain believe Mitt Romney is dishonest?

MCCAIN: I do not. But I think it's very clear that he has changed his position on almost every major issue. But I don't make that allegation.

Look, I have gotten to know Governor Huckabee. I think he's a -- he's a good man and I think that he's a good and decent person. We may have some disagreements on our issues, but I think he's an honest man and I like him. And we do have that in common in that we are being attacked by Governor Romney's millions of dollars.

And I think that the people of Iowa and the people of New Hampshire will reject that over time, because, frankly, Governor Romney does it quite frequently.

But, look, we're moving forward with our campaign. We have a positive campaign. We like the momentum. But, John, I know that this is going to come down to the wire and people are not going to make up their minds until the very end. And that's why we're out on this balmy Arizona day.

(LAUGHTER)

KING: And let me add -- it is a balmy Arizona day. The snow piling up outside. You had to give up the bus -- it's the Straight Talk SUV today in New Hampshire.

MCCAIN: Right.

KING: So how about a little straight talk in closing, before we let you go to your next event?

If John McCain does not win in New Hampshire, can John McCain go on in the race with any viability?

MCCAIN: John, it depends on win, you know, what win means. We all know about the comeback kid and all that. But, look this is very, very important and we have to do very well here. I'm sure we will win here -- "win" -- but we've got a lot of work to do.

KING: Happy New Year, Senator McCain.

MCCAIN: Thank you, John.

KING: We'll let you get on to that work.

One more week to go here in New Hampshire.

Good luck, Senator.

And we thank the senator for joining us in the closing moments of our CNN "Ballot Bowl". He's here in Tilton, New Hampshire, off to brave the snow and go to Laconia, New Hampshire, up in the Lakes Region.

And we'll go back to Des Moines, Iowa and Suzanne Malveaux.

MALVEAUX: Thanks, John.

And coming up from the campaign trail, Governor Mitt Romney in his own words.

Stay with us as the CNN "Ballot Bowl" continues.

(COMMERCIAL BREAK)

MALVEAUX: Now let's go to "THE SITUATION ROOM" and our own Wolf Blitzer to see what's going on at the top of the hour -- Wolf, what do you have for us?

WOLF BLITZER, HOST, "THE SITUATION ROOM": Thanks, Suzanne.

Excellent coverage out there all day.

Two days to go until the Iowa caucuses. Today, John Edwards is here inside "THE SITUATION ROOM" talking about a new endorsement he's just received from someone who alienates a lot of Democrats. My one- on-one interview with Senator Edwards. That's coming up shortly.

Plus, Benazir Bhutto and a secret file she was planning on handing over to Americans on the day she died. Details on that plus my interview with the top spokesman for the Pakistani president, Pervez Musharraf.

And an American diplomat shot to death in Sudan. We're going to have complete coverage of that and all the day's news.

That's coming up, Suzanne, right here in THE SITUATION ROOM.

MALVEAUX: Thanks, Wolf.

Looking forward to seeing all of that.

Republican presidential candidate Mitt Romney spoke last week in Peterboro, New Hampshire. He touched on the economy, health care and taxes.

Let's take a listen.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: So we face challenges.

And the question is, what course will we take forward?

And you're going to get the chance -- you've had the chance to listen to the Democratic nominees -- potential nominees. They've been here. I'm sure they've been on this very stage, or one like it. And they'll tell you their pathway forward for America. They want to strengthen the economy by raising taxes. They say it in multiple ways.

Unfortunately, raising taxes does not strengthen the economy. Building bigger government with bigger taxes and big brother makes us weaker, not stronger. I think they take their inspiration from the Europe of old, believing in big government and big taxes as the pathway forward. I think they're wrong.

I believe in the pathway that Ronald Reagan championed. Ronald Reagan saw a very different model. He said if you want America to overcome the challenges we face -- and this was in the last century -- you want to see America become strengthened with strong values, strong homes, confidence in ourselves, a strong economy. And he strengthened our economy by keeping taxes down and seeing extraordinary growth. And a strong military -- we simply out competed the Russians. We were just tougher and bigger and stronger than they, and they threw in the towel.

And so as I look at the challenges today, I see some of the same -- some of the same principles as being required -- strengthening America, strengthening our military, strengthening our economy, strengthening our families.

How do you strengthen the military?

Well, I want to add at least 100,000 active duty personnel to our military. I want to give them the equipment that they need to be successful on the battlefield and I want to give our soldiers and our veterans the care they deserve when they come home.

(APPLAUSE)

ROMNEY: I want to strengthen our economy. I'm going to strengthen our economy, first of all, by keeping our tax burden down. In fact, I not only want to keep it down, I want to get it lower. I want to make the Bush tax cuts permanent. That's one of the lessons we learned from Reagan -- Reagan 101 -- you want to see a growing economy, keep taxes down. Lower them.

I want to kill the death tax once and for all. I also

(APPLAUSE)

ROMNEY: I also believe that Americans -- well, then shouldn't have to pay taxes when they earn their money, taxes when they save their money and taxes when they die.

So we'll kill the death tax, but then how about savings?

Here's my view. For people making $200,000 a year and less, I'd put in place a new tax rate on savings. And that means interest, dividends, capital gains. For anybody middle income or modest income, that new tax rate would be zero. Let people save their own money tax- free for whatever they like.

(APPLAUSE)

ROMNEY: Now, I'm sure that the Democrats will get heartburn over this. But we'll -- we'll find a way to blast it forward. And I believe I'll be successful in doing that in Washington. I know that even in our own party, there's a division on this. And you know right now Senator McCain and I are both battling for your support and your vote. He's a good man, but we have differing views on this. He voted against the Bush tax cuts. He voted against eliminating the death tax forever. And so we've got some differing views here. I believe in pushing taxes down.

I also believe in trade around the world...

MALVEAUX: Mitt Romney in Peterboro, New Hampshire.

And with that, the CNN "Ballot Bowl" comes to an end.

We hope you've enjoyed hearing the candidates from across Iowa and New Hampshire as we head toward the Iowa caucuses, just two days away.

For the entire CNN political team, I'm Suzanne Malveaux in Des Moines.

"THE SITUATION ROOM" with Wolf Blitzer starts right now -- Wolf.

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