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The Situation Room

Interview With Speaker of the House Paul Ryan; Democrats Stage Sit-In Over Gun Control; Trump Attacks Clinton; Ryan on Trusting Trump: It Depends on the Issue; Clinton Fires Back At Trump's "Outlandish Lies"; North Korea Propaganda Film Backfires on Regime. Aired 6-7p ET

Aired June 22, 2016 - 18:00   ET

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

[18:00:02]

WOLF BLITZER, CNN HOST: Sit-in. Frustrated Democrats stage a protest on the House floor, demanding action on gun control after the terror in Orlando. I will ask the House speaker, Paul Ryan, for his reaction and why he won't allow a vote.

Hillary hits back. Clinton tries to turn the tables on Trump just hours after his speech, accusing him of reckless ideas and outlandish lies. Which candidate is winning the battle of the barbs?

And the real regime. Kim Jong-un tries to show North Korea as a workers' paradise, but his attempt at propaganda back fires big time. We are going to show you embarrassing outtakes of a film project gone wrong.

We want to welcome our viewers in the United States and around the world. I am Wolf Blitzer. You're in THE SITUATION ROOM.

ANNOUNCER: This is CNN breaking news.

BLITZER: The breaking news tonight, Donald Trump delivers his most blistering attack yet on Hillary Clinton' policies, her record and her character.

The presumptive Republican nominee trying to shift the focus to his Democratic rival, as he lags behind Clinton in new polls and fund- raising. In a scripted speech, Trump accused Clinton of being a world-class liar whose foreign policy cost thousands of lies and who perfected the politics of profit.

Tonight, Hillary Clinton says Donald Trump is attacking her personally because he has no solutions or substance, but she also unleashed scathing criticism of her opponent, claiming his policies are reckless and would drive the U.S. economy into recession.

Also breaking, a dramatic protest by Democrats, a sit-in on the House floor. They have been demanding new votes on gun control, chanting "No bill, no break."

Stand by for reaction from the House speaker, Paul Ryan, on these stories and more. It's an exclusive interview. And our correspondents, analysts and guests, they will have full

coverage of all the news breaking right now.

Up first, let's go to our senior White House correspondent, Jim Acosta.

Jim, Donald Trump added a few new attack lines to his familiar criticisms of Hillary Clinton, but he really did not hold back at all.

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: That's right. It was scathing, Wolf.

A top adviser told me the theme of today's speech could be summed up as -- quote -- "Hillary is bad," and to the delight and also relief of his staff and supporters, that's exactly what Donald Trump delivered.

(BEGIN VIDEOTAPE)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: Hillary Clinton, and as you know she -- most people know she's a world-class liar.

ACOSTA (voice-over): With his new team and teleprompters in place, Donald Trump stayed on script and unleashed his most focused and unrelenting attack to date on Hillary Clinton that had even skeptics in the party cheering, not cringing.

TRUMP: Hillary Clinton may be the most corrupt person ever to seek the presidency of the United States.

ACOSTA: Call it operation pivot, as the presumptive GOP nominee made his first real attempt at defining the general election for voters.

TRUMP: Her campaign slogan is I'm with her. You know what my response is to that? I'm with you, the American people.

(CHEERING AND APPLAUSE)

ACOSTA: It's no secret why Trump's assault focused so much on Clinton's character. Just look at the numbers. A new ORC/CNN poll finds more people trust Trump than Clinton, though Americans believe the former secretary of state will make a better commander in chief.

So, Trump tried to chip away at her foreign policy credentials.

TRUMP: Her decisions spread death, construction and terrorism everywhere she touched.

ACOSTA: But in doing so, Trump made statements that were simply not true, like his claim that he opposed the Iraq War.

TRUMP: I was among the earliest to criticize the rush to war, and, yes, even before the war ever started.

ACOSTA: Even though it's been pointed out repeatedly he's on tape voicing support for the 2003 Iraq.

QUESTION: Are you for invading Iraq?

TRUMP: Yes, I guess so. I wish it was -- I wish, the first time, it was done correctly.

ACOSTA: And Trump also blamed Clinton for the American deaths at Benghazi.

TRUMP: Among the victims of our late Ambassador Chris Stevens, I mean, she -- what she did with him was absolutely horrible. He was left helpless to die as Hillary Clinton soundly slept in her bed. That's right. When the phone rang, as per the commercial, at 3:00 in the morning, Hillary Clinton was sleeping.

ACOSTA: That's also wrong. The siege at Benghazi happened at night in Libya, but back in the U.S. it was still in the afternoon, when Clinton was awake. And there were other whoppers.

Trump said he started his real estate business with a small loan. That was $1 million from father. And Trump claimed Clinton wants to abolish the Second Amendment, but fact-checkers have noted that's just not true.

Trump accused Clinton of doing some fabricating of her own.

[18:05:01]

TRUMP: Just look at her pathetic e-mail server statements, or her phony landing in Bosnia, where she said she was under attack, and the attack turned out to be young girls handing her flowers.

ACOSTA: Trump drilled down on that theme, accusing the Clintons of profiting off their ties to the rich and powerful.

TRUMP: They totally own her and that will never, ever change, including if she ever became president, God help us.

MARC CAPUTO, FORMER TRUMP AIDE: I thought Trump's speech today was a sure sign that the changes he made on Monday are moving this campaign in the right direction. He's on message.

ACOSTA: Former Trump aide Michael Caputo, who resigned from the campaign this week after celebrating the firing of campaign manager Corey Lewandowski on Twitter, says Trump is positioning himself to win.

CAPUTO: I know people are skeptical about whether or not he can stay on message, whether or not he can stay moving in the right direction after his pivot. And I think Mr. Trump is completely up to the task.

(END VIDEOTAPE)

ACOSTA: Now, Trump's speech is certainly receiving positive reviews inside the GOP, but one Trump source told me there's no way Trump would have won the nomination with scripted speeches.

So, what does that mean? The translation is, to keep his base fired up for the general election, Wolf, Trump will have to lose the teleprompter from time to time to give his crowds what they want -- Wolf.

BLITZER: I'm sure he will.

All right, Jim Acosta in New York, thank you.

Now to breaking news from Capitol Hill on that sit-down by House Democrats to push for action on gun control.

Our senior political reporter, Manu Raju, is joining us now with an update.

What's the latest, Manu?

MANU RAJU, CNN SENIOR POLITICAL CORRESPONDENT: Well, Wolf, the Republicans are actually meeting right now in an unusual meeting downstairs in the House basement with the entire House Republican Conference.

They're trying to figure out what to do about this protest that has been going on all day that House Democrats waged to have demand votes on some sort of gun control bill. Now, Republicans are sort of divided about the strategy going forward.

A lot of them do not want to give Democrats a vote. They don't believe they should reward Democrats for what they believe are -- essentially hijacking the House and upending business on the House floor. Others say that should have -- we can have a vote and vote down what Democrats are proposing and move forward.

So, we will see what comes out of that. Now, on the Senate side, there are negotiations that are happening over a compromise bill by Susan Collins of Maine dealing with how to prevent terror suspects from getting guns. Most -- a lot of Democrats aren't not really excited about it. They think it is too narrow of a bill.

But some Republicans are open to it, and others are violently opposed to it, believe it actually could undermine some constitutional protections. Harry Reid, the Senate minority leader, said he would support that bill, but Republican leaders are still not behind it because the NRA is opposed to it.

It really just shows, Wolf, even with all the things that are happening on the House floor right now, there's really not a lot the two sides can agree with -- Wolf.

BLITZER: Joining us now, the speaker of the House, Paul Ryan.

Mr. Speaker, thanks very much for joining us.

REP. PAUL RYAN (R-WI), SPEAKER OF THE HOUSE: My pleasure. Thanks for having me, Wolf.

BLITZER: You rolled out part of your ambitious legislative agenda today, including repealing and replacing Obamacare. I want to talk to you about that.

I also want to get your reaction to Donald Trump's major speech today. But first I want to ask you about the drama unfolding on the House floor.

The sit-in is because you won't bring this to a vote. House Democrats have tried to force a vote on all of this week on the questioning -- the questioning of how to prevent those on the terror watch list, the no-fly list from purchasing a gun.

Here's a key point. A new CNN poll shows an overwhelming majority of Republicans, look at this, 90 percent of Republicans support that idea. Why won't you at least allow a vote on this on the floor of the House?

RYAN: Well, first, I will tell you, Wolf, this is nothing more than a publicity stunt. That's point number one.

Point number two is this bill was already defeated in the United States Senate. Number three, we are not going to take away a citizen's due process rights. We're not going to take away a citizen's constitutional rights without due process.

That was already defeated in the Senate. And this is not a way to try and bring up legislation. Now, let's focus on the issue at hand here, terrorism, and let's find out what we need to do to prevent future terrorist attacks.

And if a person is on a terror watch list and they go try to buy a gun, we have procedures in place to deal with that. We want to make sure that those procedures are done correctly. And that's something we should be able to do in a calm and cool manner without these dilatory publicity stunt tactics to try and bring a bill that already died over in the Senate to the House floor. That's just not -- that's not any way to bring...

(CROSSTALK)

BLITZER: Why not at least allow a vote up or down?

RYAN: Well, first of all, they know that we will not bring a bill that takes away a person's constitutionally guaranteed rights without their due process. We don't agree with that. And the Senate already doesn't agree with that.

So, I think, look, the point here, Wolf, is this is a publicity stunt. They're trying to get you to ask me those questions for publicity's sake. This is not trying to come up with a solution to a problem. This is trying to get attention.

[18:10:00]

BLITZER: As you know, a lot of the critics are blaming the National Rifle Association. We did some checking. Over your 17 years in the Congress, you have received about $36,800 from the NRA. The NRA clearly doesn't support this legislation. Here's the

question. Is the NRA the key reason that nothing is happening either in the Senate or in the House of Representatives?

RYAN: No, the Constitution is.

BLITZER: Explain.

RYAN: People have a guaranteed right. The Heller case proves it.

People have an individual guaranteed right to Second Amendment rights. We're not going to take away a person's constitutionally guaranteed rights without due process.

You could -- Wolf Blitzer could be thrown on the terror watch list tomorrow, or Wolf Blitzer could be on the no-fly list tomorrow and with no recourse and your rights would be infringed upon. We're not going to take away your rights without your process. That is what the Constitution requires.

And we're going to stick with the Constitution. That's why we conservatives do what we do. We think that there are a lot of issues that need to be dealt with here as it relates to terrorism, radical Islamic jihad, homegrown terrorists who are getting radicalized.

There's a lot to do here. Let's focus on this. And, yes, we do believe that if someone is on a watch list trying to buy a gun, that the authorities need to have the procedures in place so that they're notified and they have a chance to do something about it.

We agree with that. And that's what we ought to work on codifying. Instead, we're looking at publicity stunts. We're not looking at solutions. We are not talking about terrorism. We are talking about gun control which goes beyond a person's constitutional rights.

BLITZER: The Senate itself, John Lewis and these other Democrats on the floor, it was really not televised by C-SPAN cameras controlled by you because you called a recess, which shuts off those cameras. Some are suggesting you're trying to censor this protest. Are you?

RYAN: No. Look, this is the way the rules work in the House, and they have ever since we have had TV.

We had a similar protest when we were the minority in 2008. Not only did the cameras not go on. They turned the lights off on us. This is what you do when you go into recess subject to the call of the chair. These are the House rules, and they have been this way for years.

BLITZER: I want to turn to Donald Trump's major speech today. Were you proud of what he said?

RYAN: The fact is, I have been a little busy today. I haven't even seen the speech or read it. I heard it was a very good speech.

That sounds promising, but to be candid with you, Wolf, I have been pretty busy with Zika and many other things that we're trying to work here in Congress. So, I didn't read or see the speech. But I have been told by a number of my colleagues that he gave a very good speech and he gave the kind of speech that you want your nominee to give.

BLITZER: Do you agree with the nominee, the presumptive nominee, that Hillary, his words, is a world-class liar?

RYAN: Yes, I think she has problems and challenges with the truth, that's for sure.

But I do think our nominee needs to focus on the fall. He needs to focus on contrasts with Hillary Clinton. And I think that's the kind of contrast Republicans want to see so that we can have the race we need, which is one we can win.

BLITZER: He also said that Hillary Clinton may be the most corrupt person ever to seek the presidency of the United States. Do you agree with him on that?

RYAN: I don't know.

I would have to look at history, I suppose, but I do think she has a lot to answer for. Look, having a server in your basement, I can go on and on about the Clinton scandals. I think people are a little Clinton scandal fatigued in this country, not to mention the fact that she held herself above the law and above the standards with her e- mails.

So, yes, I think there are legitimate questions about the veracity of her claims and her conduct with respect to ethical standards. I think that is legitimate territory. And like I said, I didn't hear his speech, but I think it is totally fair game that he questions those things.

BLITZER: Do you think Hillary Clinton's -- quote -- "decisions spread death, destruction and terrorism everywhere she touched"?

RYAN: Wolf, I'm not going to give you a tit for tat on a speech I haven't even read or heard. I'm not going to go take things out of context.

My understanding is that he gave a good speech dealing with the race and the person he is running against and that's what he should do. But I am not take little slices of quotes out of a speech that I haven't even seen yet.

BLITZER: He also said adoption of the Trans-Pacific Partnership would cause the United States in his words to lose millions of jobs and our economic independence for good. Do you agree with him on a substantive policy issue like that?

RYAN: Yes. Sure.

BLITZER: Do you agree with him on that?

RYAN: Right. I think TPP has got to get worked out to be better. I think it potentially has great promise, but I do believe the administration screwed up a number of key things in TPP.

I don't think it is ready to go. I don't think it is ready to pass. I think the administration made some critical mistakes in negotiating this trade agreement, but I do hope we can get a good one. I do hope we can get a change this agreement to make it a world-class agreement. He says he wants great trade agreements. I also want great trade agreements that are good for America.

But what's at stake here is whether or not America writes the rules of global economy with our allies, or other countries like China, who do not share our values, whether they write the rules of the global economy. That's what at stake here. But the key here, Wolf, is get it right. And so far the administration has not done that.

[18:15:02]

BLITZER: In almost every speech he has given over the past year, there are three main pillars of the speech.

He says, as president, he wants to build a wall along the U.S.-Mexican border. Mexico would pay for it. He says he wants deport 11 million undocumented people here in the United States. And he wants to temporarily ban Muslims from entering the United States. He says that in almost all of his speeches.

You totally agree with him on all three of these pillars, right?

RYAN: Yes. No, so, I have been pretty clear about this. We obviously don't see eye to eye on everything.

We do agree on securing the border. I would -- I think there's a better way of securing the border. And actually if you look at our better.GOP plan, our Better Way plan, we out a very comprehensive plan on national security which also includes border security, albeit differently than the way he is proposing it.

And I don't agree with the Muslim ban. I don't agree with whatever you call mass deportation, but there are a lot of things we do agree on. Look, no two people are going to agree on things. And there are some big things we have disagreement on. I am not going to sugarcoat this. But there are a lot of areas we do agree.

(CROSSTALK)

BLITZER: You clearly disagree with him on these three main points.

So, here is the question. If he were president, would you try to block these proposals legislatively? You could block them through the appropriations process, for example. Would you take active steps to prevent these three pillars from being implemented?

RYAN: Well, these are things that have to go through Congress.

And I think, look, here's how we see our job in Congress. We are a separate branch of government. We're an equal branch of government. And if you want to change a law, you have to pass a law. Presidents don't write laws. Congress writes laws.

And so if you want to change a policy, you have to change a law, and we will have a say-so here in Congress on how those laws will be written. I have been very clear with my views, and as many of my colleagues are as well, about how laws should change.

Look, the third thing we put out in our plank on A Better Way agenda is, how do we restore the Constitution Article 1 powers so that the legislative branch is the one writing the laws, not the executive branch?

And so that's something that we believe in, a robust defense of the separation of powers of the Constitution of government by consent, and not having executives like President Obama is doing unilaterally writing laws, because that's not the job of presidents. That's the job of Congress. And, yes, we will have a strong and huge say-so in how these laws are written.

BLITZER: So, it sounds to me, Mr. Speaker, you would try to prevent those three so-called pillars from being implemented legislatively?

RYAN: Congress will work its will like it does in any situation with any president.

And Congress will make its own decisions, independent of the executive branch. We, however, though, with our nominee, see more eye to eye, have more common ground than we don't. And we have no common ground, virtually no common ground with Hillary Clinton, that's for sure.

BLITZER: Let's talk a little bit about fund-raising right now. What does it say to you that the Trump campaign hasn't been able to raise any real money, only, what, $1.3 million in the back now? Your own fund-raiser has said there's a crisis in effect.

What does that say to you?

RYAN: I will take them at their word, which was, they were just winding down the primary campaign, and they haven't booted up their general election campaign and that they started that in June, they didn't do that in May, which is the reporting period. So, I will just take them at their word on that.

BLITZER: Will you host some fund-raisers for the Trump campaign?

RYAN: I have no plans to, but it's basically because I am helping House Republicans.

I used to be the chairman of the Presidential Trust, which did help the eventual nominee, before I became speaker. Now that I am speaker, my goal and focus here is on House Republicans and keeping a strong majority.

BLITZER: You have also said that the only way your agenda gets passed, if Donald Trump becomes the president of the United States and signs your legislative agenda into law. So isn't it in your best interest that he get elected president?

RYAN: Yes, I don't want Hillary Clinton to be president. I don't know how much clearer I can be on that, because I know one thing for sure.

Hillary Clinton is going to promote a liberal judge to the Supreme Court, which means we effectively lose the Supreme Court for a generation, which means we drift further from the Constitution, point one.

Point two, she is going to continue the Obama policies. She all but doubled down on this and basically promised that. That is a step in the wrong direction; 70 percent of this country doesn't like the direction America is going. We agree with that. We need to go in a different direction. That's why we are offering a very affirmative, specific agenda on how to go in a different direction.

And, yes, I do believe a Republican president, a Donald Trump Republican president is far, far more likely to help us put this country in a better direction than Hillary Clinton is, so yes.

BLITZER: So, if you believe that, why not raise money for his campaign, why not schedule fund-raisers with him?

RYAN: He can do fine on his own.

We are trying to help House Republicans right now. That's traditionally how it goes. I don't think John Boehner did a single fund-raiser that I know of for Mitt Romney and myself. I think you're trying to create an issue where none exists, which is the leader of the House helps the House, just like the leader of the Senate helps the Senate. The nominee is the one who is typically the draw, not the other way around.

BLITZER: I know you have said you will vote for him, you support him.

[18:20:01]

But I want to ask you a more basic question. Do you trust Donald Trump?

(LAUGHTER)

RYAN: Look, Wolf, I know the press likes these kinds of questions.

We have a binary choice in front of us, a liberal progressive Democrat named Hillary Clinton, a Republican named Donald Trump. I prefer the Republican over the liberal progressive Democrat. That's the choice we got. That's the choice the voters in the primary gave us. That is the choice is front of us. It is binary and obvious to me.

BLITZER: But it's a simple question. Do you trust Donald Trump?

RYAN: Like I said, I -- it depends on the issue.

Sometimes, some things, we don't agree on. Some things, we do. We are going to have to learn to work together in divided -- in a separate but equal branch of government to work on these things. And I do know and believe that, yes, he will be more likely to support the things that we believe and the values, the principles, the solutions that we are calling for, and I know for a fact that Hillary Clinton won't.

BLITZER: You said on Sunday, and I'm quoting you now, you said the last thing you would do is tell anybody to vote contrary to their conscience.

As you know, your former running mate, Mitt Romney, he is not going to vote for Donald Trump because he says his conscience doesn't let him. Do you have a clear conscience about supporting Donald Trump?

RYAN: Right.

I do, because I, as speaker of the House, believe that I have an obligation to try and keep my party and my conference unified. I do not think it would be helpful to be the highest elected Republican official in the country leading a split in the middle of our party to divide us in half, and cut our party down the middle, and guarantee the left wins the White House and guarantee left takes the Supreme Court.

Because of the role I have, I believe I have an obligation. And I am being true to that obligation.

BLITZER: Speaking of what you said about not asking people to vote contrary to their conscience, you're the chair of the GOP convention.

Are you signaling to delegates out there that you're open to adding what they call a so-called conscience clause to the convention rules allowing delegates to prevention Donald Trump from becoming the party nominee?

RYAN: No.

The answer -- it was Chuck who asked me this. The answer was about members of Congress and their endorsements and their conscience, about whether they make an endorsement or not. I am not signaling anything to delegates, because I really believe, in my job, which I think is pretty ceremonial, as the chair of the conference, that I should not tell a delegate to do anything one way or the other.

I'm not trying to signal a single thing to a delegate because, honestly, I would see my job as being completely impartial and objective, and not telling delegates to do anything whatsoever. The question was whether or not a member of Congress, Reid Ribble from Wisconsin, whether or not I should hold it against him for speaking his conscience. And, of course, I am not going to do that. That was the answer to that question.

BLITZER: All right, Mr. Speaker, I want you to stand by for a moment.

We have to have a quick commercial break. We wild be back with details of your new proposal just released, an alternative to President Obama's health care law that's in effect right now. We will take a quick break. Much more right after this.

(COMMERCIAL BREAK)

[18:27:22]

BLITZER: We're back with my exclusive interview with House Speaker Paul Ryan.

Moments ago, we heard him acknowledge he does have some trust issues with Donald Trump. Tonight, Ryan is also unveiling a new Republican alternative to Obamacare. I'm going to ask him about that in a moment.

Right now, let's bring back our senior political reporter, Manu Raju.

Manu, what's in the new Republican plan?

MANU RAJU, CNN SENIOR POLITICAL CORRESPONDENT: Wolf, this is not legislative text, and there's actually no cost estimates.

We don't actually know a lot of the details. But it is the most detailed blueprint that any Republican has put forward since the Affordable Care Act was enacted, and since Republicans have been saying it is time to repeal and replace the law.

Now, a lot of these ideas are familiar Republican ideas that they have talked about before, including allowing insurance to be purchased across state lines, as well as dealing with things like health savings accounts. But it also a lot of ideas that are fairly controversial, including raising the eligibility age for Medicare and Social Security and turning Medicare into what Democrats call a voucher system, what Paul Ryan -- some of what Paul Ryan has proposed in the past.

Now, this -- they also want to reform other entitlement programs as well, including Medicaid. Now, Paul Ryan is of course trying to push forward an agenda that his party can campaign on, so a very detailed way of how the Republicans could govern. The question is whether or not Donald Trump would accept a lot of these ideas, Wolf.

BLITZER: Manu, thanks very much.

We're back now with the speaker of the House of Representatives, Paul Ryan.

Mr. Speaker, the Affordable Care Act, as you know, was signed back in 2010. It is now six years later. Why did it take so long to roll out this very detailed, lengthy alternative?

RYAN: Well, first of all, we are rolling out a very detailed, lengthy alternative, a comprehensive alternative to Obamacare. That's very important.

And one of the things is, we now have spent six years on this issue, where you had a lot of members of Congress offering alternatives. Tom Coburn and I had a comprehensive alternative. Congressman Tom Price, a physician, Phil Roe, physician, comprehensive alternatives. We now have got all of ourselves on the same page, so we, as a unified

House Republican Caucus, have offered a comprehensive replacement of Obamacare. Obamacare is driving up premiums. It's reducing choice. Health insurance plans are dropping people left and right.

We think the law is failing. It's not working. It is hurting families, and businesses, and jobs. And so we have offered a very comprehensive alternative here. And, yes, this is consensus. This is, we win and we get a president who signs these into law, we can replace Obamacare and get a truly patient-centered health care system that is far, far better than we have got right now.

BLITZER: Your plan, as detailed as it is, does not include any cost estimate or actual legislative language.

[18:30:04] Why not?

RYAN: Because we are not passing a bill this year to have a guy named Barack Obama veto it. This is for 2017. Our entire agenda here is this is our 2017 agenda. That's why we're offering blueprints and not bills that will go nowhere with an Obama presidency.

This is our plan to take to the country to ask for a mandate, for permission to put these in place with a president that can sign these into law in 2017.

BLITZER: What do you say to those Americans currently on Obamacare, they're getting health insurance, who would lose coverage under your plan?

RYAN: I would say to them relief is coming. We're going to give you more choices. We're going to give you access to more affordable health insurance and yes, we're going to give you assistance. You'll have assistance to buy good health insurance. If you have a pre- existing problem, we also believe in making sure you, too, can get affordable health care. We have a better deal coming.

BLITZER: Just today, Donald Trump wants to repeal and replace what he called job killing Obamacare. Obamacare he said is the biggest job killer.

But since 2010 when it went into effect, 10 million jobs have been created in the United States. What he is saying about job killing isn't true, right?

RYAN: I think that's kind of a non sequitur argument. If you ask the CBO, they'll tell you 2 to 3 million hours, job equivalent will not have been worked.

Here's the problem with Obamacare, it disincentivizes work. It basically pays people not to work because as you go to work, or make more money, or get a better job, you lose by going off Obamacare subsidies.

So, Obamacare has this perverse incentive which does actually kills jobs, not to mention the fact huge tax increases killing jobs and things like medical devices, not to mention the fact that cuts to health care providers and rationing that will come down the road will create job loss. It is a job killer in many ways. It's a job killer because it disincentivizes work, it's a job killer because it taxes manufacturers and producers, it's a job killer, because it injects uncertainty in the health care community that they won't hire people as a result.

So, yes, it is a job killer in many different fronts. That's why we think we are offering a better way. Go to better.gop and look at our plan.

BLITZER: And only way if it becomes law is if there's a Republican president.

RYAN: That's right.

BLITZER: With Donald Trump.

I assume he is on board with your plan, because Hillary Clinton if she were president, she would veto it.

RYAN: She would not only veto it, she would double down on Obamacare. That's why we don't support Hillary Clinton. That's one other reasons why we don't support Hillary Clinton.

BLITZER: Is Trump on board with your plan?

RYAN: Yes, he likes the direction we're going. We spent a lot of time talking about this. We are far more comfortable with the notion an idea he will help put this agenda into practice, into law, and we know Hillary Clinton will double down on a health care system that is failing us miserably.

BLITZER: Mr. Speaker, thanks very much for joining us.

RYAN: All right, thank you, Wolf. Take care.

BLITZER: And just ahead, our political team on Speaker Ryan's issues with Donald Trump and Trump's new tongue-lashing of Hillary Clinton. Which candidate's attacks will hold up under scrutiny of voters and fact checkers?

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESUMPTIVE PRESIDENTIAL NOMINEE: Hillary Clinton may be the most corrupt person ever to seek the presidency of the United States.

HILLARY CLINTON (D), PRESUMPTIVE PRESIDENTIAL NOMINEE: Donald hates it when anyone points out how hollow his sales pitch really is. And I guess my speech yesterday must have gotten under his skin.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[18:38:19] BLITZER: We are back with breaking news.

House Speaker Paul Ryan telling me just awhile ago he has a clear conscience about supporting Donald Trump, even though they have some big disagreements and there's a trust gap on certain issues.

Let's bring in our senior legal analyst Jeffrey Toobin, Lanhee Chen, former policy director for Mitt Romney, CNN political director David Chalian, and CNN chief political analyst Gloria Borger.

Gloria, you heard House Speaker Paul Ryan's response when I asked him if he trusts Donald Trump. He sort of laughed, said it is a binary choice, doesn't agree with Trump on some issues. Does that response instill confidence in Republicans that are grappling with the idea of Donald Trump as the nominee?

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: You know, Wolf, I'm not sure, it inspires confidence but what it does is it shows them a path forward to getting to yes. I was struck about how he kept talking about the binary choice, which means compared to what, OK? And what he kept saying over and overlook, I may disagree with Donald Trump. I think when compared to Hillary Clinton, Donald Trump has a better chance leading this country in the direction I want to take it.

So, he doesn't have to sort of say, look, I agree with him on everything, which he clearly said to you he doesn't, but he kept going back to a notion of, I don't want Hillary Clinton leading the country for a whole host of reasons. And that's why I'm going to be here for Donald Trump.

And talking to Republican strategists, Wolf, I can tell you they tell me the same thing. They are telling their clients, look, you can disagree with Donald Trump as much as you want, but don't cross that Rubicon and say you can support Hillary Clinton -- and this is exactly the strategy that the speaker is laying out to you.

BLITZER: Lanhee, if Speaker Ryan is right when he says Donald Trump is the best option, why won't he go out there and fund raise, campaign for him. Why is he sort of holding back?

LANHEE CHEN, FORMER POLICY DIRECTOR FOR MITT ROMNEY: Because I think Wolf because he can't do it sincerely. The disagreements that Paul Ryan and Donald Trump have are real, policy differences are very real. At the end of the day for Paul Ryan, he is a policy guy at the core.

So, it's going to be very difficult for him to be engaged, involved to raise money to do it enthusiastically. At the end of the day, I do think it's going to be important, though, for Donald Trump and Paul Ryan to be able to get together on a few issues. That will give Paul more comfort as well.

BLITZER: Good point.

David, you heard me ask the speaker if he would block some of Donald Trump's core proposals in Congress. He suggested he would. What does that tell you about the type of relationship the speaker is going to have with a Trump administration? DAVID CHALIAN, CNN POLITICS DIRECTOR: Well, it's certainly not one of

blind faith, that's quite clear and I don't think that's a terrible thing. Give Paul Ryan credit for defending the institutional integrity of Congress and that it is co-equal and separate branch.

I think Washington probably has a chance working better than it does when everybody doesn't put on their partisan jersey blindly, go to partisan corners, whatever the president of their party is doing or the leader in Congress of their party is doing, they just step in line. I think you get probably a more robust conversation and perhaps maybe better results for the country out of Congress if indeed there is a little bit more negotiation.

But what is clear in listening to the interview from Paul Ryan is that he didn't even need to hear Trump's speech today, he said.

BORGER: Right.

CHALIAN: He heard from aides what it was, and it was this take on Hillary o take her down. That was comfort to his ears. This is what Republicans have been wanting to hear, and Paul Ryan didn't need to sit through the speech to know if Donald Trump is focused on Hillary Clinton, he is heading along the right path towards November.

BLITZER: Jeffrey, this is clearly Trump's harshest speech against Hillary Clinton to date. A lot of fact checkers are checking some of those facts in there. They're sort of having a field day right now. But to voters out there, does that really matter?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: I do think it matters to a certain extent if someone has a pattern of telling serial untruths. Now, but I think the core of his speech were statements like world class liar, most corrupt person to run for president. She feels entitled to be president. Those aren't fact checkable assertions, those are opinions. And I think Donald Trump deals mostly in opinion and those people are either going to accept or reject.

BLITZER: Another major development today, Gloria, Senator Marco Rubio of Florida spoke to Manu Raju about his decision to run after all for re-election, this after Rubio repeatedly denied he would run, made very disparaging comments about the Senate. Are we seeing Senator Rubio right now set himself up for a possible re-run, presidential run in 2020?

BORGER: Yes. I think he would have been running in 2020 had he been in the Senate or not in the Senate. I think a lot of people came to him, Wolf, as you know, and said the state of Florida is in danger, they're worried about down ballot, they are worried about keeping control of the Senate.

They don't want to have to spend a ton of money in Florida to keep that seat where if they have Marco Rubio there that can spend money in other states where they're going to need to spend it. So, I do think he came under a lot of pressure. I think he was sort of a man struggling to figure out what he was going to do next. I think he is going to run for the presidency, but after criticizing the Senate over and over again, it was kind of interesting to see him say, OK, I'm going to hang around.

And I think what was most notable was the notion that the Senate has to be there to be a check on whomever becomes president, is what something he was talking about. Meaning either Hillary Clinton or Donald Trump and you heard that same argument in a way, Wolf, from Paul Ryan, I think.

TOOBIN: And, by the way, though, Marco Rubio does not have a cake walk to get reelected.

BORGER: No.

TOOBIN: He has a primary and it's a swing state with Democratic turnout, with bigger turnout in a presidential year, so he's going to have to raise a lot more money, he is in debt from his presidential campaign. So, this is not a walk in the park for him to get elected.

BLITZER: Lanhee, when I was in Park City, Utah, you were at the Mitt Romney event he was holding, interviewed him there.

[18:45:01] He told me he can't vote for Hillary Clinton, can't vote for Donald Trump, but will take a closer look at the libertarian party ticket. We've got a town hall later tonight with the two libertarian candidates.

What would -- you know Mitt Romney well. What would it take for him to hear from these libertarian candidates that might sway him?

CHEN: You know, I think it's going to be very challenging, Wolf, for Mitt to be in a place where he feels like he can support them, because the cultural and social issues, the differences there I think are really significant. You know, you brought up marijuana legalization in the interview with Governor Romney. That's one issue he and Gary Johnson are not going to see eye to eye.

Some of the social issues I think are going to be a great concern to Governor Romney. End of the day, one thing that helps is the relationship with Bill Weld. Bill Weld and Mitt Romney know each other, Weld was predecessor of Governor Romney.

BLITZER: Former governor of Massachusetts.

CHEN: That could be helpful. But I just think the social chasm is too wide.

BLITZER: Brent Scowcroft who served as a national security adviser under President George H.W. Bush announced today he is actually going to endorse Hillary Clinton for president. Pretty dramatic move. Could his decision sway other Republicans wary of a Trump presidency?

CHALIAN: Probably not something Scowcroft envisioned in the '90s that he would be endorsing Hillary Clinton for president.

But, listen, I don't think this is some gate opening for a flood of Republicans coming across to support Hillary Clinton. I do think it is illustrative of the more mainstream establishment, pre-neocon national security folks who have expressed concerns about Donald Trump, having his finger on the button. You may see some of these old hands who just have a totally different world view and approach to foreign policy than Donald Trump portrayed so far, perhaps through support to Hillary Clinton.

But I don't think this represents something we should look for Republicans in Congress or active people in the party today just coming across to support Hillary Clinton.

BLITZER: Gloria, I'm curious what you think?

BORGER: You know, look, I think Brent Scowcroft represents a wing of the party that hasn't been well represented in the last decade. I mean, even George W. Bush didn't agree with Brent Scowcroft and his father on a whole host of foreign policy issues. I think he is well- respected, well-regarded and I don't think as David says that it's going to kind of open a door for other people to rush right through.

BLITZER: All right, guys, stand by. There's more coming up, including Hillary Clinton's returning fire to Donald Trump today, preparing to go public with potential running mate as well. We will update you on that.

Stay with us.

(COMMERCIAL BREAK)

[18:52:31] BLITZER: More breaking news tonight in the presidential race. Hillary Clinton responding to Donald Trump's most scathing attack yet.

Here's our senior political correspondent Brianna Keilar.

(BEGIN VIDEOTAPE)

CLINTON: Donald hates it when anyone points out how hollow his sales pitch really is. And I guess my speech yesterday must have gotten under his skin.

BRIANNA KEILAR, CNN SENIOR REPORTER CORRESPONDENT (voice-over): Hillary Clinton firing back, responding to Donald Trump's harsh words this morning.

TRUMP: Hillary Clinton's message is old and tired.

KEILAR: Clinton is focusing on the economy in North Carolina today, where she's hoping a state that President Obama narrowly lost in 2012 after winning it in 2008 will go her way in November.

CLINTON: Maybe we shouldn't expect better from someone whose most famous words are "You're fired!" Well, here's what I want you to know. I do have a jobs program. And as president, I'm going to make sure that you hear, "You're hired!"

KEILAR: Her remarks, one day after a scathing speech on Trump's business record in the battleground state of Ohio. CLINTON: He's written a lot of books about business. They all seem

to end at Chapter 11.

KEILAR: She spent the morning on Capitol Hill. Meeting with House Democrats, telling them her campaign won't just be about vilifying Donald Trump, but promoting their agenda, trying to help Democrats pick up seats in Congress.

CLINTON: We are going to win this election. We're going to take back the House and the Senate.

KEILAR: Democrats are still trying to unify their voters after a fractious primary fight. Maryland Congressman Elijah Cummings, the head of the party platform drafting committee, says they are working to meld Clinton's and Bernie Sanders' positions.

REP. ELIJAH CUMMINGS (D), MARYLAND: It seems we're going to be able to reach an agreement, hopefully by Saturday afternoon.

KEILAR: And Clinton's running mate pick could help that task, as well. If she goes with the liberal who appeals to Sanders' supporters, such as Massachusetts Senator Elizabeth Warren. Warren has become a persistent Trump attacker.

SEN. ELIZABETH WARREN (D), MASSACHUSETTS: Every day it becomes clearer that he is a thin-skinned racist bully.

KEILAR: Warren is scheduled to join Clinton on the trail in Ohio next week, where she is sure to continue hitting Donald Trump. But some observers say Warren would not help Clinton expand to moderate and independent voters. A new CNN ORC poll shows only a third of Democratic voters say Clinton should pick Warren as V.P., although 51 percent of Democrats do have a favorable opinion of her.

[18:55:10] Brianna Keilar, CNN, Raleigh, North Carolina.

(END VIDEOTAPE)

BLITZER: And please stay with CNN tonight for a town hall featuring the libertarian presidential and vice presidential candidates Gary Johnson and William Weld. Chris Cuomo is the moderator. It all begins 9:00 p.m. Eastern, only here on CNN.

Also tonight, the White House is condemning North Korea's new launch of two missiles capable of carrying nuclear warheads. One test appeared to be successful, raising new fears that Kim Jong-un is making progress towards his threat of being able to strike as far away as the United States.

This as the regime is suffering a new setback in its propaganda war.

Let's bring in Brian Todd.

Brian, looks like there's been a major blunder. What happened?

BRIAN TODD, CNN CORRESPONDENT: There has been, Wolf. And tonight, it is really angering Kim Jong-un's regime. In fact, the

Museum of Modern Art in New York, which was scheduled to show this film in February, cancelled that showing, concerned that the North Koreans might retaliate in some kind of a Sony type cyberattack.

The North Koreans hoped this documentary would glorify them, but there was friction. The project went south. And what the North Koreans didn't count on, was that the director of this film kept rolling during moments they thought were off-camera. (BEGIN VIDEOTAPE)

TODD (voice-over): For Kim Jong-un's regime, it seemed the ideal film project. It's called "Under the Sun," a profile of an 8-year-old girl Zin-mi as she prepared to join the Korean Children's Union.

The North Koreans commissioned Russian filmmaker Vitaly Mansky for the project, which they hoped would depict a worker's paradise.

But tonight, fallout, the project backfired.

UNIDENTIFIED MALE (through translator): Everybody, stand up and loudly say, congratulations. Can you say that? I won't say it again.

TODD: A North Korean minder is filmed, angrily coaching workers how to act during a scene filmed at a clothing factory.

UNIDENTIFIED MALE (through translator): Why was your applause so weak?

TODD: The minders seemingly thought they weren't being recorded. But the director kept his camera rolling.

UNIDENTIFIED MALE (through translator): Zin-mi is sitting with straight legs. Why are you sitting so funny? Like that. Sit like that.

they would come to the scene and tell the people what they have to do. Where they have to sit, how they have to sit, how they have to smile.

UNIDENTIFIED FEMALE: They would come to the scene, and would tell the people what they have to do where they have to sit, how they have to smile.

UNIDENTIFIED MALE (through translator): Try to say more. Let's do it! Don't forget to smile. Smile! Everyone smile while your comrade is speaking.

TODD: And Zin-mi's mother and others at a milk factor appear to do just that. At a dance class, Zin-mi is driven to exhaustion and tears.

UNIDENTIFIED FEMALE (through translator): More, Zin-mi! Do you understand, comrade Zin-mi? Do you understand or not? So, what should we do, Zin-mi, if you can't even learn these steps?

TODD: In scene after scene, minders are shown prodding, scolding film subjects to be more zealous.

UNIDENTIFIED MALE (through translator): When the teacher speaks, repeat after her. Yes. Recover soon. And stop eating.

UNIDENTIFIED MALE (through translator): Still too gloomy. Do it with more joy. You can do it more joyfully.

TODD: The producer says there was constant argument between the director, Mansky, and his minders. The North Koreans eventually scuttled the project, kicked the director out of the country. But the North Korean government made one mistake. They didn't keep full control of his footage.

ROBERT BOYNTON, AUTHOR, "THE INVITATION-ONLY ZONE": I think the biggest fallout would be probably for certainly the people who allowed Mansky to enter the country and secondly to the minders who guided his crew. They might be in trouble.

TODD: At the end, Zin-mi is asked what it means to join the children's union.

ZIN MI (through translator): Now, you feel responsible for your mistakes. And you wonder what else you should do for the respected leader.

UNIDENTIFIED MALE (through translator): Stop her crying.

(END VIDEOTAPE)

TODD: We tried to get North Korean officials at the U.N. to respond to this documentary. We never heard from them. But Zin-mi's mother has expressed her outrage on a North Korean government-run website, saying, quote, "Is Mansky a human being? We thought he was making the documentary for the purpose of a friendly, cultural exchange. I had no idea that he would make my daughter the main character of his anti- North Korea movie," Wolf.

BLITZER: Brian, how did this director get all that footage out of North Korea without the regime catching him?

TODD: One of the producers, Simon Bauman (ph), says Mansky shot each scene with two disks inside his camera. He would always hand the North Koreans one of the disks and he kept the other one. He gave the uncensored disk to a female colleague of his who would take it to a bathroom and stash in her clothing. And then they got those disks out of the country.

BLITZER: Amazing stuff. All right. Brian, good report. Thank you very much.

Remember, you can always follow us here in THE SITUATION ROOM on Twitter. Please be sure to go there. You can follow me @wolfblitzer. Follow the show @CNNSitroom.

Thanks for watching.

"ERIN BURNETT OUTFRONT" starts right now.