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Romney Running Strong; Gingrich Touts Achievement; Obama On How To Keep Jobs In U.S.; French Journalist Killed In Syria; Syrian President Attends Rally; Van Der Sloot Pleads Guilty To Murder; Ford Recalls Over 450,000 Vehicles; Ron Paul's Youth Vote; Murderers Freed In Mississippi; Interviews With Romney, Gingrich, Santorum Campaigns

Aired January 11, 2012 - 13:00   ET

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


RANDI KAYE, CNN ANCHOR: And hello, everyone, I'm Randi Kaye. It's 1:00, let's kickoff the hour with a look at the Republic race for the White House.

He is two for two but 10 days ahead of the next contest of the presidential nominating season. Vote totals aren't the only numbers setting Mitt Romney apart. Just hours after his decisive win in the New Hampshire Primary, Romney released his fund-raising figures for the fourth quarter of 2011 and the year. For the quarter, Romney for president took in $24 million, for the year, $56 million. The campaign says it has $19 million cash on hand. A big chunk of which will be spent right here, South Carolina, site of the first southern Primary, a week from Saturday. Today, Romney and the candidates intent on stopping him are tearing up the highways and the airways. Newt Gingrich came in fourth in New Hampshire, but says he is the guy Republicans are looking for.

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: I don't believe any moderate can debate Barack Obama successfully because there's not a big enough gap between the two of them. And I believe if you're going to defeat Barack Obama, you are only going to defeat him with a conservative and that requires South Carolinians to put them together, because I believe I am the only conservative who can actually carry a record of achievement.

(END VIDEO CLIP)

KAYE: A lot can change in ten days, our most recent South Carolina poll shows Gingrich with barely half the support Romney has and the trend for Gingrich is worse. Compared to last month, Romney has almost doubled his support among likely voters, while Gingrich has lost more than half of his. Rich Santorum and Ron Paul also have gained from Gingrich's plunge.

This morning on CNN, Romney stuck to the long view, which for him means sticking it to President Obama.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I have a long way to go before I get the nomination, if I'm lucky enough to get it. But I really think we're best off focusing on the failures of this president, and in my case, I want to demonstrate that I have the capacity to make America, once again, a great place for opportunity for rising incomes, for job growth. I think that's what people want to hear. They want to understand how we're going to lead the country, and that's what I'm going to be talking about.

(END VIDEO CLIP)

KAYE: And right now, we want to talk about what we learned from New Hampshire. Who better to do that with than you? Wolf Blitzer's here with us now. So, let's talk about Mitt Romney last night. I mean, he was pretty dominant. He dominated every subgroup really that was out there.

WOLF BLITZER, HOST, CNN'S THE SITUATION ROOM: It was a very impressive win, 40 percent. That's pretty good. Yes, he's from neighboring Massachusetts and Democrats are saying, spinning it, saying he should have done much better. But look, he did a lot better than number two, Ron Paul. Certainly much better than number three, Huntsman. And the two guys that he fears the most, potentially, Santorum and Gingrich, they came in fourth and fifth which is Mitt Romney going into South Carolina. It's not over with yet.

There could be some surprises a week from Saturday in South Carolina. Who knows if Newt Gingrich from neighboring Georgia can really pick up some steam and do well. He's going to spend a ton of money, millions of dollars, his super pack, which supports him going after -- going after him in South Carolina, trying to do to Mitt Romney in South Carolina what Mitt Romney super pack did to him in Iowa as payback between these guys.

KAYE: Yes, yes.

BLITZER: So, we'll see what happens. It's not over with yet.

KAYE: So, it's not a done deal for Romney then in South Carolina you don't think.

BLITZER: Yes.

KAYE: What's he going to do, do you think, to combat all that negativity?

BLITZER: What he's going to do South Carolina, Mitt Romney, what Newt Gingrich failed to do in Iowa. In other words, when he takes a hit, he's going to hit back. He's got the money, you just reported, Randi, how much money -- he's got $19 million on hand.

He's got these super PACs that support him that have millions of dollars. They're going to saturate the airwaves over there. The anti-Gingrich ads, the anti-Mitt Romney ads. It's going to be a bonanza for all the local T.V. stations in South Carolina because they're going to make a lot of money. They're going to sell out all their advertising inventory between now and January 21st. KAYE: Of the other candidates, who do you think is in the best position to damage Mitt Romney? Is it Newt with the super pack ad? Or --

BLITZER: Probably Newt Gingrich and Rick Santorum will hurt Mitt Romney. Ron Paul, don't count him out. Ron Paul has been impressive in Iowa, very impressive in New Hampshire, I'll assume he'll do well in South Carolina. I don't know why he's going to not necessarily focus on Florida. He says he has limited resources, but he could raise money. Florida -- if you want to be president of the United States, Florida is a very important state in a general election and in the Primary. I don't see how you can ignore Florida. So, maybe Ron Paul will reassess what he told me yesterday about maybe moving, looking ahead into February, some of the caucus states in February and not necessarily devote his resources -- his limited resources, he says, to Florida. That may be a mistake if you're Ron Paul but maybe not.

KAYE: How do you think the Tea Party will play with Mitt Romney in South Carolina, especially given the endorsement from the South Carolina governor?

BLITZER: Nikki Haley was very beloved by the Tea Party movement. She's the governor of South Carolina, she has endorsed Mitt Romney as John McCain who won the South Carolina Primary -- Republican Primary four years ago. He's endorsed Mitt Romney as well. So, I think that endorsement from Nikki Haley will help -- although, I've spoken to a lot of Tea Party activists. They don't like Mitt Romney, they want anybody but Mitt Romney for -- at least some of them do. So, this is going to be a fierce battle. I don't rule out Rick Santorum having an impressive showing in South Carolina. By the way, he's going to be on my show later today, Rich Santorum, in "THE SITUATION ROOM." So, we'll talk to him about all of that.

KAYE: And what time is that on?

BLITZER: That starts at 4:00 p.m.

KAYE: I know. I watch every day. All right, Wolf, thank you very much, nice to see you.

BLITZER: Catch you later.

KAYE: President Obama is talking jobs today. We just heard from him just minutes ago at the White House.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We're at a unique moment, inflection point, a period where we've got the opportunity for those jobs to come back. And the business leaders in this room, they are ahead of the curve, they recognize it. I'll give you just a few examples. After shedding jobs for more than a decade, American manufacturers have now added jobs for two years in a row. That's good news. But when a lot of folks are still looking for work, now's the time for us to step on the gas. So -- (END VIDEO CLIP)

KAYE: The president is taking a look at how the govern in the can help business owners bring jobs back into the country. With employment numbers down to 8.5 percent, he hopes to turn things around in time to save his own job.

In Syria, a French journalist was killed in a mortar attack on a pro-government rally in Hams. The reporter with the Trans Two T.V. network (ph), was part of the trip organized by the Syrian government. A Dutch journalist and nine civilians were wounded.

Meanwhile, Syria's president turned up in a boisterous pro- government rally in Damascus. He strongly defended his government's reforms and blamed the unrest on external conspiracies. The Arab league is on a fact-finding mission to see if the Syrian government is adhering to an agreement to end the violence.

Joran van der Sloot pleaded guilty of all of the charges against him, in the killing of a Peruvian woman. The 24-year-old Dutch national faces a sentence of 30 years in prison, but hope his guilty plea will reduce that term. Van der Sloot was arrested twice but never charged in the 2005 disappearance of U.S. teenager Natalee Holloway.

Ford SUV and minivan owners, you might want to listen up here. The company is recalling 450,000 vehicles, including Ford Free Star and Mercury Monterey minivans made in 2004 and 2005, and Ford Escape SUVs, model years 2001 and 2002. Ford says it needs to fix defects that can cause fires or loss of power.

Your morning glass of O.J. might cost you a little more soon. Orange juice futures are up, after low levels of a fungicide were found in Brazilian oranges. The U.S. imports about 25 percent or oranges used to make juice, with the majority coming from Brazil. The chemical is legal there but not in the U.S. There is no safety risk right now, but if the government bans oranges from Brazil, prices will likely shoot up.

Now back to politics. Mitt Romney squeaked by in Iowa and dominated in New Hampshire. Some say he's paved his way to the nomination. But is he in for a rude awakening perhaps? We'll ask his campaign adviser, next.

But first, some trivia for all you political junkies watching. Since 18980, which presidential candidate, Democrat or Republican, won the South Carolina Primary with the largest percentage of the vote? You can tweet me the answer to @RandiKayeCNN. If you get it right and you're first, I'll give you a shout out, right after this break.

(COMMERCIAL BREAK)

KAYE: Before the break, I asked, since 1980, which presidential candidate, Democrat or Republican, won the South Carolina Primary with the largest percentage of the vote? The answer is Al Gore. He won the 2000 Democratic primary with a whopping 92 percent of the votes. Defeating challenger, Bill Bradley. And a big shout out and congratulations to Andrew for tweeting me the right answer.

No matter where people stand on the issues or the Republican candidates for president, there is pretty broad agreement that South Carolina is not New Hampshire and vice versa. And that's the main reason most of Mitt Romney's remaining rivals are still in the race. They are hoping that what supposedly worked for Romney in New England will work against him in the south. Bay Buchanan thinks that they're wrong. The long-time GOP activist and senior advisor to the Romney campaign joins me now from Washington. Bay, so nice to have you on the program.

BAY BUCHANAN, SENIOR ADVISOR, ROMNEY CAMPAIGN: Delighted.

KAYE: So, what do you think? Has your man, Mr. Romney, has he locked this thing up yet?

BUCHANAN: He certainly has not. The first thing you want to make certain a candidate doesn't do is assume anything in this business, Randi. There's no question that he's done an extraordinary job. He has the momentum, the organization, he's going to go the distance, we'll see what happens next week.

But South Carolina is a little bit of different -- a little different, but I think the people, once they get a chance to hear Mitt Romney as the people in Iowa and New Hampshire did, they're going to see that he's there for them. That he'll fight to create those jobs they desperately need down there. So much so that he they will even go to China to do it to fight to see that the American workers, the American families, have a fair deal at this game and the Chinese can no longer mess with them.

KAYE: You know, if you look back to 2008, it may feel like a distant memory, but it's not a very good one for Mitt Romney, if you look at this polling that he had then. He got barely 15 percent of the vote in South Carolina. What makes you confident this time around?

BUCHANAN: Well, you know, and he came in 14th -- he came in fourth and so it is tough. It's absolutely tough. But you know, he showed himself out there in Iowa. It was a tough state for him a couple -- four years ago and again in New Hampshire. I think the issues now are perfect for a Mitt Romney candidacy. What are people worried about? What are conservatives across the country worried about? That's who represents the bulk of the Republican vote. They are worried about those uncontrolled spending and reckless deficits. They are worried about someone -- they need someone to help turn this country around, to get the economy going again. No one has the experience, the background of Mitt Romney.

As I said earlier, he will fight for American workers, he'll go to China, make sure that we get fair deals here. And he's excellent on illegal immigration. He's better than the whole -- anyone on that stage next to him. He's the guy that satisfies every single issue that's in best concern -- greatest concern to conservatives, includes the social issues, Randi. Those in Massachusetts who are leaders of the pro-life, pro-family coalitions up there. I understand he was a champion when he was governor of Massachusetts for our causes. All of that will resonate in South Carolina, I believe. I believe he's the strongest -- that's what voters have said so far. I think they -- hopefully South Carolina will agree.

KAYE: The exit polls, Bay, show that he did carry the Christian right in New Hampshire. How do you think his Mormonism will play in South Carolina?

BUCHANAN: Well, I don't believe that should be an issue. I think the people really concerned are can we find somebody that not only understands how to turn this economy around, has the courage to go into Washington and make those tough decisions, but has the ability to beat Barack Obama. That's what we care about. We know -- we love this country and we know that it's not going well. And we need new fresh blood in Washington who knows how to do it. I think an individual's religion is not going to be the issue down there and that's why I believe that he will be strong. It's going to be tough, don't get me wrong, it's going to be very tough.

KAYE: And speaking of an issue, I mean certainly this is not only the first southern primary taking place in South Carolina, but it's also the first to take place in a state with high unemployment. Now, will that come back -- will that come back on Mitt Romney? Does it make him more vulnerable given the whole Bain Capital controversy or you think he'll be able to get past that?

BUCHANAN: You know, I think it makes him stronger because, you know, when people are suffering economically, they're looking for somebody, a real leader who understands the economy, who knows how to turn it around, who knows the kind of decisions that need to be made at the federal level that will help -- you know to turn that -- to turn on the engine again of the free market. And that's what he's done in his life. That's what his greatest experience is. And he's shown himself to be enormously effective there.

He's a true leader when it comes to the economy and he's got the plan out there. So I think those who are suffering out there realize this is a man who's done it in the private sector, understands it, and will allow that private sector to be turned on again. Get those government regulations off it so it can start again creating jobs for American people.

KAYE: All right. Well, we are, what, just about a week and a half away from there. So we'll see what happens.

Bay Buchanan, thank you very much.

BUCHANAN: Thank you.

KAYE: Nice to see you.

BUCHANAN: Sure.

KAYE: Young voters across the country are throwing support behind the number two man, Ron Paul. So, what's the appeal there? His supporters call it the new revolution. I'll talk with one of his young organizers in South Carolina, next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

RON PAUL (R), PRESIDENTIAL CANDIDATE: I sort of have to chuckle when they describe you and me as being dangerous! That's one thing they are telling the truth, because we are dangerous to the status quo in this country.

(END VIDEO CLIP)

KAYE: Maybe Ron Paul is right. Maybe he and his supporters are dangerous to the status quo if by status quo he means the establishment candidate Mitt Romney. And if by dangerous he means he's here to stay. Political analysts, pundits, even some media have repeatedly dismissed Paul as a fringe candidate, calling him unelectable. A joke even. But with strong back to back showings in Iowa and New Hampshire, perhaps it's time all those pundits, analysts, and, yes, even the media, stop asking which anti-Romney candidate will emerge. Maybe Ron Paul is that candidate.

So today we want to go straight to the grounds, specifically to a Ron Paul supporter who is on the ground. Evan Mulch is the organizer of College Call For Ron Paul, a grassroots group spreading Paul's message in South Carolina.

Evan, nice to have you on the show. First, tell me about your group. What specifically are you guys doing there in the coming days?

EVAN MULCH, ORGANIZER, COLLEGE CALL FOR RON PAUL: Well, I'm actually based in Spartanburg, which is in the out (ph) state (ph) of South Carolina. And what we're doing is, we have a College Call for Ron Paul tomorrow. We're going to various colleges. We're talking about Ron Paul. Trying to get as many volunteers as possible. And we also organized a sign wave for Saturday, where we plan to have close to 100 people doing a sign wave in Spartanburg at one of the most busy intersections in the area.

So we're doing a lot of grassroots, you know, organizing and it seems to be working. I mean, Ron Paul's campaign has taken off. A few months ago, those of us that were doing this, we were not, you know, -- we were laughed at, at times. And, you know, Ron Paul is on his way to probably, you know, being the next president of the United States from the way I can see it.

KAYE: Well, you're young. You're passionate. You're clearly a supporter of Ron Paul. You're very typical of the supporters of Ron Paul. I want to share with you some of the numbers of the youth vote in New Hampshire last night just to give everybody an idea of the support. There you see it, Ron Paul with 47 percent of the youth vote.

So, Evan, to those who many not get it, I mean why are you so passionate and why are you part of this revolution?

MULCH: We understand the message of liberty. We're the ones that are going on the Internet. We're finding out everything we can about Ron Paul. And those of us that do the research, we understand that this message of liberty is for all of us. It doesn't matter if you're Republican, your Democrat, or independent, it's for everybody. And we're glad to be part of it.

KAYE: I want to read you something related to the issue of electability. Something that Ron Paul told CBS News. He said, "I've won 12 elections already and we're doing quite well now. It's amazing that I do so much better than those other candidates that are all electable. They're all in fourth, fifth and sixth, but they're all electable. But I come in second or third and all of a sudden people say, oh, he's not electable. I don't know how that adds up."

So, he does have a point there. But why do you think he's seen by the mainstream at times by some as unelectable?

MULCH: Well, we're up against a lot. I mean a lot of people out there just don't understand the message. And it's all about, you know, going on the Internet, Googling Ron Paul and taking the time to read his brochures that come out in the mail. And that's just really all there is to it. People who don't understand that he's, you know, a -- you know, that he has an opportunity to be president is (INAUDIBLE) doing the research. And that's why those of us that are part of the Ron Paul grassroots movement, we're so passionate about it. Those of us that are part of it, we're -- this is our full time -- you're know, we're not even paid to do this, but this is what we do full time in order to support Ron Paul and the liberty movement.

KAYE: Nice photo with him there, by the way, that we just showed.

But young voters certainly tend to be more liberal when it comes to social issues. So how do you feel about his stance on gay marriage and also his stance on abortion, which are both conservative?

MULCH: Well, the liberty movement, I mean those are particular issues that, you know, all of us, you know, have various, you know, -- you know, we come up to our own decision on what we think about this. But the liberty movement, it's really for everybody. It's not for somebody who's pro-abortion, anti-abortion. It's for anybody who wants to get their rights taken back to the states, just like our Constitution says.

The federal government has way too much power, they're taking our money and we're ready for the economy to get better. And we're not going to have that happen if the status quo president keeps doing everything that he is (ph) to (ph) do. And we need to come back and we need to take our country back. And that's through the Constitution and that's through Ron Paul.

KAYE: And you think that this is the guy? I mean he -- yes?

MULCH: Absolutely. He's the guy for everybody. Everybody who supports what our country is founded on, he is our guy.

KAYE: All right, Evan Mulch, thank you very much. And moving on now, four convicted killers are walking the street. No, they didn't escape. Their door to freedom was opened by the Mississippi governor. How did this happen? And the big question, is there anything anyone can do? A live report straight ahead.

(COMMERCIAL BREAK)

KAYE: Outraged family members and victims are denouncing the pardons of four murders by former Mississippi Republican Governor Haley Barbour. They were among the nearly 200 criminals granted full and unconditional pardons by Barbour on his final day in office just yesterday. The four murders received their pardons last week and were freed on Sunday. After their release, it was revealed that they had worked at the governor's mansion while in custody. David Gatlin shot and killed his wife as she was holding her six week old baby in 1993. Gatlin also shot his wife's friend, Randy Walker, who survived a wound to his head. Joseph Ozment killed a man during a robbery in 1994. He was convicted of murder, conspiracy, and armed robbery. Anthony McCray was convicted of killing his wife back in 2001. The fourth murder freed Sunday by Barbour is this man, Charles Hooker. He was sentenced to live in 1992 for murder.

Ed Lavandera joins us with much more on this story.

Ed, this has a lot of people talking and a lot of people angry. I mean nearly 200 pardons. One hundred and ninety-nine to be exact. It sounds like an unusually high number. Is it?

ED LAVANDERA, CNN CORRESPONDENT: Just going by the history in Mississippi, it seems to be that that's also the case. In addition to the 199, 14 of those, you've profiled a few of them there, 14 of them murders, another 16 were convicted of manslaughter and homicide. And all of this runs a wide range of crimes. Drunk drivers, thieves. Drunk drivers who killed people in their accident. So, you know, devastating news to many people across the state of Mississippi, Randi.

KAYE: And what are you hearing there? I mean what has been the reaction? It certainly hasn't been good.

LAVANDERA: Oh, no. You know, I think a lot of people -- and I've talked to a lot of people in Mississippi. People who say, look, I'm a strong Republican. People who have voted for Haley Barbour twice before in the past. They are perplexed. In the words of -- you mentioned the case there, David Gatlin. He was the man who was -- murdered his estranged wife and then shot that other man, Randy Walker. The prosecutor in that case said that Haley Barbour is insane for letting this man go. Those are his words -- strong words.

Listen to Randy Walker. This is a man who survived the attack on him. They weren't sure he was going to survive. Listen to his feelings and the way he's talked about hearing the news that the man who shot him is being released.

(BEGIN VIDEO CLIP)

RANDY WALKER, SHOT BY DAVID GATLIN: I feel like, you know, my safety is in jeopardy. I feel like we are in jail now and David is out of jail. We will forever be looking over our shoulder wondering if today is the day that David decided that he was going to finish what he started.

(END VIDEO CLIP)

LAVANDERA: And, Randi, what has left a lot of people angry and confused in Mississippi is that Haley Barbour made these decisions and essentially has left the governor's office, has left town without mentioning -- offering any explanation, giving any comment. We have tried repeatedly, his spokesperson, and have gotten no explanation or comment from the governor's office as to why -- to explain what these decisions were based on.

KAYE: And, Ed, where are these freed murders now? And can anything be done to reverse this?

All right, we lost Ed Lavandera there, reporting on this -- the case of these convicted murders, now released, pardoned by Governor Haley Barbour.

All right, Romney has scored two big wins. Will South Carolina be a knockout?

(BEGIN VIDEO CLIP)

NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: His record as governor, I think, makes it very hard for him in South Carolina.

(END VIDEO CLIP)

KAYE: So, what can Mitt Romney do about Newt Gingrich's attacks? And does he need to have a plan to shake off number two, Ron Paul? That's "Fair Game" next.

But first, more trivia for all you political junkies. When was the last time a Democratic presidential candidate won South Carolina in the presidential race. You can tweet me the answer @randikayecnn. I'll give a shout-out to the first person to get it right, right after the break.

(COMMERCIAL BREAK)

KAYE: So what can Mitt Romney but Newt Gingrich ads attacks, and does he need to have a plan to shake off number-two, Ron Paul? That's "Fair Game," next.

But first, more trivia for all you "Political Junkies." When was the last time a Democratic presidential candidate won South Carolina in the presidential race? You can tweet me the answer @randikayeCNN. I'll give a shout out to the first person to get it right, right after the break.

(SINGING)

(COMMERCIAL BREAK)

(SINGING)

KAYE: Before the break I asked, when was the last time a Democratic presidential candidate won South Carolina. The answer is in 1976, Jimmy Carter. Congrats to Zack for tweeting the right answer. A lot of you guys got the right answer but we only had one because Zach was first. Keep on playing, please.

Mitt Romney is two for two in Iowa and New Hampshire, but a fierce negative ad blitz awaits Romney in South Carolina, up to $3 million worth, courtesy of an outside group that supports Newt Gingrich. A so-called super PAC is going to blanket the state with anti-Romney commercials like this one which targets Romney's career as an investor with Bain Capital.

(BEGIN VIDEO CLIP)

AD NARRATOR: Mitt Romney became CEO of Bain Capital the day the company was formed. His mission? To reap massive rewards for himself and his investors.

UNIDENTIFIED MALE: Mitt Romney and them guys, they don't care who I am.

UNIDENTIFIED FEMALE: He's for small businesses? No, he isn't. He's not.

(END VIDEO CLIP)

KAYE: Mitt Romney's record is "Fair Game." So are hard-hitting ads just like tht one.

Let's talk about it with Republicans analyst, Lenny McAllister, in Chicago; and Ed Espinoza, a Democratic political consultant, joining us today from Austin, Texas.

Nice to see you both.

Lenny, I'll start with you here.

$3 million. They've spent a million so far. That will buy a lot of ads in South Carolina. Is this Gingrich's last stand, do you think?

LENNY MCALLISTER, REPUBLICAN ANALYST: It has to be Newt Gingrich's last stand. He's a guy of the south. He's a conservative and he is somebody that has had success within the Republican Party as a leader from the 1990s. If he doesn't remind people about the good things of his campaign and remind people about the Romney nomination possibility, he's going to be out of it by the time he gets through Florida. This is it. He has to have some state that will give him the balance before we go into Super Tuesday. And it's more likely to be South Carolina, from a neighboring state from where he's from, Georgia, than it is Florida at this point. KAYE: You know, these attacks by the GOP, they really sound a lot like the same attacks coming from the Democrats on Mitt Romney. Let's listen to what Mitt Romney said last night.

(BEGIN VIDEO CLIP)

MITT ROMNEY, (R), FORMER MASSACHUSETTS GOVERNOR & PRESIDENTIAL CANDIDATE: President Obama wants to put free enterprise on trial. And, in the last few days, we've seen some desperate Republicans join forces with him.

(LAUGHTER)

(BOOING)

(END VIDEO CLIP)

KAYE: So, Ed, let me ask you, are they creating a road map for the Obama administration to follow here?

ED ESPINOZA, DEMOCRATIC POLITICAL ANALYST: Well, what Mitt Romney calls desperate Republicans, everybody else calls 60 to 70 percent of the Republican electorate. If he's going to win the nomination and consolidate his base, he needs to stop calling them desperate Republicans and recognize their conservative Republicans and solidify their credentials with them.

I want to go back to something that Lenny said about South Carolina. And he is right. This is Newt Gingrich's last stand not just for political reasons, but South Carolina may be the last place where Newt Gingrich can afford to run a campaign against Mitt Romney. After that, you go into Florida. Extremely expensive state and then multiple state primaries that get really expensive. The only other state where somebody can legitimately compete in terms of affordable media markets is Nevada, which is an important state, but also has one of the highest Mormon populations in the country. It benefits Mitt Romney.

KAYE: Let me ask you about that, Lenny. Let's talk about religion because 60 percent of the South Carolina primary voters are evangelicals. How do you think that Mormonism will play there?

MCALLISTER: I think that Mormonism will be more of a, quote, unquote, "problem for Mitt Romney" if Rick Santorum and Newt Gingrich weren't Catholic. Catholicism is not the biggest religion down in the southeast. It's the Protestant aspect of Christianity. Therefore, although, they will have that undercurrent message against Mormonism, it's not going to work as much as it might have -- if it was, for example, Herman Cain still in the race. I don't think it's going to be that much of an issue. Like I said previously, folks that are evangelicals on Sunday, still have to go to work on Monday. As long as Mitt Romney sticks to his economic message, he will be OK down there in South Carolina.

KAYE: Ed, what do you think about Ron Paul? He hit that mark, the 20 percent point. He's not seen anymore as the fringe candidate. How much damage do you think he can do to Mitt Romney? Because he's probably going to stay in this for a long time.

ESPINOZA: Well, what Ron Paul has demonstrated is he's got a steady support of 20 percent in the Republican primary. What's also being demonstrated here is there are about 30 percent of hardcore conservatives looking for a place to go? That's 50 percent of your electorate.

What's new in this Republican primary process is we have proportional allocation of delegates. If Mitt Romney cannot win a majority of those delegates in convincing fashion, and if he can't do it any time soon, he runs into problems, up against the Republican National Convention. Now, I'm not saying that there's going to be a brokered convention but what I am saying is there is a possibility that people can second guess where we with the Romney nomination by the time the convention comes into August.

KAYE: Lenny, very quickly, if Ron Paul stays in it, will they have to make a deal with him?

MCALLISTER: They might. But here's the thing. South Carolina is going to be the first place where there's a strong anti-Ron Paul movement. There's a strong anti-Ron Paul movement in the Carolinas. There's a whole lot of hard-core GOP members that are going to be out in force to make sure that Ron Paul does not have that much of an influence in this race. And you see it in the polls already. Ron Paul, who has been second and third place in the first two states is in fourth place in South Carolina. Don't expect him to climb much further up than fourth place in the Carolinas.

KAYE: Lenny McAllister, Ed Espinoza.

That is "Fair Game" today.

Thank you both.

(CROSSTALK)

KAYE: And both Newt Gingrich and Rick Santorum had a weak showing in New Hampshire but they have a plan for South Carolina. We'll talk to their campaign advisers next.

(COMMERCIAL BREAK)

KAYE: Welcome back. This just in. A four-alarm fire in New Jersey. Live pictures coming from our affiliate WABC. You can see the flames shooting through the roof of what appears to be a residential building in New Jersey. We have the hoses out and it's hard to see if there's any people. It looks like we don't se any people there in the building. Boy, look at those flames roar. We'll continue to keep an eye on this and let you know how they are managing it there.

Well, we've talked a lot about the Republican presidential candidates at the top. Mitt Romney is the clear winner in New Hampshire. But the fight heads to South Carolina and it's a different playing field, one that plays right into the conservative appeal and hands of these guys, Newt Gingrich and Santorum. Both of them finished towards the bottom in New Hampshire. That could be a different story in South Carolina. Both men hope to be major road blocks to Romney's advance.

We have both Santorum's South Carolina chairman, Gresham Barrett; and Gingrich's co-chair in the state, John Napier, with us.

I'd like to start with you, Gresham.

Santorum, as you know, he finished just eight votes behind Romney in Iowa. He lost some momentum in New Hampshire but South Carolina provides a different opportunity. Maybe an opportunity to get that back. So what's the plan?

GRESHAM BARRETT, CHAIRMAN, SANTORUM SOUTH CAROLINA CAMPAIGN: Yes, you're exactly right, Randi. Iowa is so much like South Carolina in a lot of terms. We knew we weren't going to do well in New Hampshire and that's why the Senator limited his time there. But the plan is basically the Iowa plan. Nobody worked harder. It's the same plan here. Nobody went to all of the counties, except Rick Santorum. We're here for the next 10 days. Meetings from small groups to town hall meetings, we're going to press the flesh and use the shoe leather, and do it the old-fashion ways with a little bit of sweat equity.

KAYE: Let's look at the polling, OK? Let's take a look. Unlike Gingrich, Santorum has gained some ground in South Carolina. You can see it there. He was at 4 percent in December and now at 19 percent.

But Gingrich and Rick Perry both are portraying themselves as the true conservative alternative, too. Why would voters choose Santorum over Newt Gingrich or anybody else?

BARRETT: Well, originally if you remember, there were two tiers, the so-called leader group, which was the Paul, Gingrich, Romney group. And then there was a second group, which was more of the evangelical Christian right, so to speak. That was Perry, Bachmann, and Santorum. Bachmann is out. Those people are coming in droves to Santorum because I think it's the natural fit. You think about Perry's performance in Iowa and New Hampshire, I think the governor has been seriously wounded. I'm hearing from a lot of them because they are close friends of mine.

All right, Gresham, thank you very much for your time.

Let's move on to John.

Polls can only tell us so much, but results speak for themselves. Gingrich has placed fourth in both Iowa and New Hampshire. Seems like big losses for Gingrich, considering he was the frontrunner for Iowa and grabbed the New Hampshire "Union Leader" endorsement going into last night. Let me ask you this. So how are you planning to turn this around in South Carolina? What's your strategy?

JOHN NAPIER, CO-CHAIR, GINGRICH SOUTH CAROLINA CAMPAIGN: Our strategy is to look at the issues and go straightforward to the issue that Newt Gingrich is a Ronald Reagan conservative.

KAYE: We talked about the blistering attack ads that's hitting the airwaves in South Carolina against Mitt Romney. How much has the Gingrich campaign spent on these ads and how much of his own money and does that -- I assume that doesn't even account for the money being spent and put into this ad campaign for this PAC that is supporting Newt Gingrich?

NAPIER: I have no idea what the 427 group -- 527 groups have spent. We are prohibited from anything there. And I don't know what we're spending but we're going to spend things for positive advertisement.

KAYE: I want to play a sound bite for you, and tell me if you remember this.

(BEGIN VIDEO CLIP)

NEWT GINGRICH, (R), FORMER HOUSE SPEAKER & PRESIDENTIAL CANDIDATE: We are not going to go out and run nasty ads. We're not going to go out and run 30-second --

We are sick of negative politics. We're sick of cynical consultants by simply refusing to vote for any of the candidates who ran negative ads.

(END VIDEO CLIP)

KAYE: So what happened to playing nice? It seems that Gingrich has ran an aggressive campaign against Romney.

NAPIER: Well, there's a difference. Being aggressive is fine. That's what I just said. We're not running negative, nasty ads. We're going to tell the truth about him being a Ronald Reagan conservative. Governor Romney has disavowed Ronald Reagan conservatism. That's a fact.

KAYE: Let me ask you about the polling in South Carolina just very quickly. If you take a look at it, you can see that Gingrich has taken a pretty big nose-dive from December. What happens if he doesn't finish strong in South Carolina? What happens next?

NAPIER: I don't think there's any question, he will finish strong in South Carolina when we look at the issues and get the message out. And we need to go on very well here.

KAYE: John, thank you very much for your time.

NAPIER: Thank you.

KAYE: Plus, 2012 could get expensive. We have six things that you'll be spending more on this year. Hold on to your wallet and stick around.

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KAYE: Now it's time for a look at stories making news across the country at "Street Level."

And we start in North Bergen, New Jersey. We want to show you some pictures just in to CNN. This is from our affiliate WABC. Four- alarm fire there in North Bergen, New Jersey. We've been following the flames bursting through the windows. You can see the firefighters are on the ground, a couple stretchers coming out of that building. Some heavy smoke. We will continue watching that four-alarm fire in North Bergen, New Jersey.

First, let's get your plastic ready, shall we? We have six items that will cost you more in 2012. Airfare hikes on ticket prices as airlines cut more routes. If you like meat and fish, you'll pay more. That cup of Joe will cost you more, too. Starbuck's has already raised prices. And gas should go up, though there's a chance they could actually go down. Stamps go up to 45 cents. Priority and Express Mail will also cost more. Buy clothes will also hit you hard due to transportation and raw materials.

Next, let's go to San Francisco. The sponsor of a controversial gender-identity bill has pulled the measure, according to the Capital Resource Institute. Assemblyman Tom Amiano pulled the bill today that would have required schools to allow students to play on sports teams according to their general identify and not their biological sex. For example, a boy who claims a female gender identify would be able to try out for a girls' sports team. The bill also would have required opposite sex access to sex-segregated facilities that include locker rooms.

A news conference is scheduled next hour in Waterville, Maine, where the search for Ayla Reynolds is not in its fourth weeks. Divers have been out today in lakes and ponds and rivers. They're hoping for a break in the case. But they are afraid of what they might find. The 21-month-old girl was last seen at bedtime, December 16. Police say they suspect foul play, but they also say Ayla's parents, who do not live together, have cooperated in the investigation.

A coal mine has settled lawsuits of men killed in an explosion two years ago. They said the final deals were reached just yesterday. The settlement must be approved by the court. The explosion was the worst mining disaster in the United States since 1972. There's been no comment from the new owners of the mine, Alpha Natural Resources. The Mine Safety and Health Administration says the blast was caused by a methane ignition triggering a massive coal dust explosion.

The iced in Alaskan town of Nome may soon be getting the fuel it so desperately needs. Despite delays, the Coast Guard ice breaker and a tanker carrying 1.3 million gallons of fuel are slowly getting closer. This video is from the Coast Guard's ice breaker. They are less than 100 miles away and could make the delivery as soon as tomorrow. The storms iced over the Bering Sea to preventing fuel deliveries in the fall. Nome's mayor tells CNN, if the delivery isn't made, the city of 360 could run out of fuel by March.

Alaska is known for snow but one town is buried under 18 feet, and they are in desperate need of help. A live report next. First, more trivia for all you "Political Junkies." I know you like this. Which Republican presidential candidate dropped out of high school to join a rock band? Wow, that's a tough one. Tweet me the answer. If you get it right, I'll give you a shout-out right after the break.

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(SINGING)

KAYE: Oh, yes, we're getting funky in the CNN NEWSROOM. Before the break I asked which presidential candidate dropped out of high school to join a rock band. The answer? Jon Huntsman. Huntsman quit school to play keyboards in the rock band Wizard. Yes, really, that was the name of the band. Can you spot him? That is him in the upper right. I love this picture. He did go back to school, though, eventually graduating from the University of Pennsylvania. And a big congrats to Kenzie for tweeting me the right answer. Kenzie from North Carolina.

When it's winter and you live in Alaska, you expect to see snow, right? But probably not this much. Look at that pile. It is 18 feet high. Cordova, a little town of only 2,000 people, is digging its way out of the white stuff with the National Guard's help.

Jennifer Gibbins is editor of the "Cordova Times." She's joins us on the telephone.

Jennifer, walk us through what's going on there. Tell me what you see outside your window right now. Can you get outside?

(LAUGHER)

JENNIFER GIBBINS, EDITOR, "CORDOVA TIMES" (via telephone): I see snow, snow and more snow. I can get outside. Fortunately, we're having a little break in the weather, but it's been tough.

KAYE: How bad is it? Certainly winter doesn't come as a surprise in Alaska, but were folks there prepared?

GIBBINS: Well, I think it's not so much that we've had a big snowstorm, it's that we've had continuous snow for weeks on end, and it's gotten to the point where we're exhausted. We couldn't keep up with it and it just kept coming. Then we had another storm that dumped three more feet on us. And, you know, it just keeps coming. Thank goodness the National Guard and the Coast Guard are here. And our city is really going into full emergency operation and doing a great job.

KAYE: How is the National Guard doing? What are they actually working on? I think I read somewhere they're actually trying to melt the snow.

GIBBINS: Well, when the mayor declared a state of emergency, we were able to get some support thanks to the governor. And so some resources were brought into town, heavy equipment, snow melters, things like that. What the National Guard has brought into town and the Coast Guard, too, is, you know, bodies and manpower and some really fresh energy. That's really helped us mentally as much as it has with actually moving snow.

KAYE: Do you have enough shovels, enough snowplows?

GIBBINS: If you have a shovel, you better hold onto it, because they're hard to find right now. And the hardware store is completely sold out.

KAYE: So how many snowmen are out there? I'm just curious. Are people at least enjoying it even though it's difficult?

GIBBINS: No, I think -- I'm pretty impressed with people being able to maintain a sense of humor. But I would say, at this point, it's not a matter of anybody having fun. It's just everybody trying to stay ahead.

KAYE: Yes. Well, has it stopped snowing? You're in good shape?

GIBBINS: Today, it's drizzling and raining. The big concern around here with the snow has been the weight of the snow on buildings. So this drizzling is good news/bad news. It's going to melt a little bit of the snow, but it's going to add to the weight factor, which is a big concern.

KAYE: Jennifer, I certainly hope they get things under control there and dig you out.

Jennifer Gibbins, thank you very much.

GIBBINS: Thank you very much.

KAYE: Thank you, everyone, for watching out there as always. I'd love to know what you think. You can continue the conversation with me on line on Facebook or Twitter @randikayeCNN.

And now to Brooke Baldwin -- Brooke?