we will have much more on the race for 2012 in a moment, but we begin this hour with a bleak reality for 160 million americans now day closer to having their taxes go up. why? the house of representatives all but killing the effort to extend the payroll tax holiday. partisan politics that moved the president to make a surprise visit to the white house briefing room where he delivered a sober message. >> i saw that one of the house republicans were doing high stakes poker. he is right about the stakes. but this is not poker. this is not a game. it's not a game for the average family who doesn't have an extra 1,000 bucks to lose. not a game for somebody who is out there looking for work right now. he might lose his house if unemployment insurance does not come through. >> it was john boehner's turn

flanked by republican house members and with a challenge of his own to the president and the senate democrats. >> we have done our work for the american people and now it's up to the president and democrats in the senate to do their job as well. i need the president to help out. >> it certainly appeared to be a united front, one inspired minute night when republican members met to rally troops reportedly comparing themselves to the underdog scottish in the war film brave heart and vowing to knock down the senate bill. yes, the saga on capitol hill continues. i am joined by a democrat from maryland. thank you, sir, for joining us. >> good to be with you. >> 160 million americans face the prospect of a sudden increase in their taxes. a closed door meeting, your republican colleagues are comparing themselves to brave heart eating chicken sandwiches.

at this rate, americans won't have turkey at christmas. they only get higher taxes. >> that's right. the only people that are going to be knocked down by what the house republicans did are the american people. they will see a big hike in the payroll taxes. 160 million americans and think every american needs to understand what happened here today in the house of representatives. the republican leadership and the speaker of the house refused to allow an up or down vote on the bipartisan senate compromise bill that would extend the payroll tax cut. they refused to allow a vote on that. they were afraid obviously that it would get bipartisan support in the house as it received bipartisan support in the senate. their answer was you guys don't get to have a vote, but we will kill the senate compromise and the result will be an increase in payroll taxes for the american people. it's a terrible result. i hope the house republicans will stay here as they can do

and just take up the house republican bill. that's what the senate republican democratic compromise which is what the president called for. >> who are is in charge. it's beginning to feel like a shakespearean tragedy as a fellow and the general being repeatedly outmaneuvered by the maccia velian kantor. >> if the speaker were brave and as you said, they are comparing themselves to brave heart, where it's the american people who are going to have to with stand what the house republicans are doing to them. if the speaker were brave, he would be taking on the tea party extremist in his own caucus. what he seemed prepared to do a few days ago when he was working with the senate republican leader, mitch mcconnell and harry reid to come up with what was a compromise. after all the speaker of the house who said that if you are going to do a two-month

extension, you have to do something on the keystone pipeline. that's what they did when it came over here, instead of showing leadership and some bravery to confront the tea party wing of his caucus, the speaker caved and the result is that we don't have what had been a bipartisan compromise bill to make sure that the payroll tax cut remained in place. >> sir, wasn't this also an embarrassing example of the speaker's office not doing the math or simply not bothering to count the votes if on friday he said he supports the measure. is that because he hadn't realized that he didn't have the votes in the house. he hadn't whipped the votes. >> you are right. it was a huge miscalculation. the miscalculation is hurting the american people. what the speaker has an obligation to do is stick with the agreement that he had supported, the compromise that he had support and demonstrate real leadership in persuading

the caucus not to drive the country over the cliff in the sense that if the payroll cut goes away, it will mean fewer jobs for the american people. it will mean that the economy takes a hit. that's not me saying that, that's what bipartisan economists have said. the results of the republican so-called bravery again, their words and not ours, it will mean that the american people see an increase in the 3payroll taxes. they didn't even have the bravery to put for a vote. >> queer anticipate why that happened. your representative said on the floor, we cannot go into this holiday season without helping our unemployed brothers and sisters and keep our seniors from seeing their doctors. we cannot allow taxes to go up for millions of americans. isn't the republican response

here yes, we can. we can do all those things? >> that was their message today. that's the message they sent loud and and clear. let's remember a few months ago that the house republican leadership said they were opposed to any payroll tax cut extension. they didn't want to do it at all. for them to come forward and say we are opposed to this senate compromise version because it's only two months rather than a year is -- it just doesn't stand the smell test given the fact that they opposed doing a payroll tax cut at all a few months ago. >> you are trying to apply logic that defies all of this. i'm sorry to go back over this, but i thought republicans pledged their lives to grover norquist that would sooner burn at the stake than raise taxes. how do they get themselves out of this position where taxes are going to go up unless some

resolution occurs before the end of the year? >> that's a very good question. when it comes to closing corporate tax loopholes, they swear allegiance to grover norquist and won't close for the purpose of reducing the deficit. when it comes to ending tax breaks for millionaires, they refuse to do that for the purpose of deficit reduction. that's how we proposed to pay for a full year extension for 160 million americans. apparently when it comes to every working american, that pledge doesn't matter. go ahead and raise taxes on 160 million americans even though they will fight zealously to protect tax breaks for the corporations and very wealthy. >> speaker baner is ending the year as he began the year. in gridlock. we have seen it all year. doesn't this one really -- isn't this the crowning moment of dysfunctionality within the congress?

the fallout will hurt the american people. we saw the republicans walk out of the biden talks. we saw speaker boehner walk away from the talks with the president over the summer. we saw that the republicans in the super committee were unwilling to do the compromise that other groups called for. when there is a senate bill that we have been asking for, republicans and democrats to come together as they did in the senate, 89 out of 100 and 80% of the republicans voting for the bill and in the house they wouldn't even allow an up or down vote on the bipartisan compromise bill. that is a sat state of affairs because the speaker of the house

allowed this congress to be hijacked by the tea party wing of the party. >> next, john boehner may need a job. this speaker may be the loneliest man in washington. [ male announcer ] tom's discovering that living healthy can be fun. see? he's taking his vitamins. new one a day vitacraves plus omega-3 dha is a complete multivitamin for adults. plus an excellent source of omega-3 dha in a great tasting gummy. one a day, gummies for grown-ups.

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we are now two weeks from the warks caucuses and out there in the midwest it's big game hunting season. a slew of elephants aiming to take down a big bear, newt gingrich. the weapon of choice is the super pack. the candidates glad hand their way across early voting states, the irk wa airwaves are tick with ads taking aim.

what ron paul calls the serial pi rock rhysy. look at the heft of the artillery looking to bring down gingrich. $600,000 in anti-gingrich ads in the last days. as you know, the former speaker said he will run a purely positive campaign in the spirit of christmas. that set off a tit for tat over the politics of the pack. >> he ought to be ashamed of himself. take this junk off the air and don't hide behind bologna of the super nabbing had to be run by five of the former staff. that's bologna. >> if we coordinate in any way whatsoever, we go to the big house. we have to let campaigns raise the money they need and get rid of these super packs. >> pretty solid answer for mitt and as for that positive campaigning, wasn't it newt gingrich who released the list of words to describe democrats

like traitor, pathetic and anti-family? as for mitt romney, he hasn't made any charges like that. he merely challenged gingrich's stated positions like arresting judges he disagrees with and bring them before congress. sending the capital to bring in judges and this solution to judges out of control is not to tear up the constitution and say the congress becomes the ultimate power in the country. >> seems like fair game to me, but it's obvious why newt is getting testy. thanks to the attacks, he keeps having to defend himself out on the campaign trail. >> i have written 24 books and seven movies. i didn't try to sit down before running and figure out every possible question somebody could ask me. it would be like wikipedia. the total amount they keep talking about, i probably got

about $35,000 a year. that's less than i was making per speech. >> that freddie mac thing, they won't let it go. if you are still explaining, you are probably losing. even worse, the negative ads appear to be working. a "washington post" poll shows gingrich and romney in a dead heat at 30%. that just on the heels of a cnn poll shows mitt and newt locked in. big bear newt may have started his roll down the mountain. for much more, let's bring in our guests in washington. msnbc analyst david skpoern james peter and associate professor of english with us from philadelphia. i have to start with you. you sold our viewer that is the moment they smell the stench of the past is the moment his poll

ratings would go down. just as he wiped the slate clean, so voters would do the same for him. >> yes. i don't know what he was thinking. i hate being right so often. it's a burden. this is a fellow. i go back and newt gingrich, there is nothing surprising about him. his past is not just an open book, but an open suer. you won't be shocked by his delusions of the moment. this is one of the favorite quotes of all time. he said people like me are the only things standing between us and auschwitz. i don't know what he was talking about. the delusions of grandeur. i said my aim is to shift the

planet. this guy is not tethered to reality. i can only take two quotes this afternoon. >> he thinks he transcends reality and he is brought down to earth by not just the super packs, but the facts. usually political negative ads, they have to play with the facts and say things that are not true. with newt gingrich that, is not so. >> professor peterson, your first time on the show and i would like to extend a warm welcome. can you explain how mitt romney can disassociate himself from super packs when they are run by his friends and their purpose is to attack whoever stands in the way of his nomination? >> here can't disassociate himself. the bottom line is he is directly connected to the super packs. it's a ton of money to attack newt gingrich and they are working in two ways.

the ads are changing the minds of caucus goers and voters. it's also forcing newt gingrich to play defense. this is why you say newt gingrich say hey, let's have a nice campaign going forward it. he foresaw this. as part of the calculation, he can't disassociate himself from this. hope flu the viewers and the voters know that. >> i think that was happening. he was asked if he had regrets after saying he was going to be the nominee. take a listen to his response there at the high v grocery. >> it was a mistake. >> he is going to be the nominee. >> part of what i said was to fox. we reported the last one and forget, i'm not an analyst. i'm a candidate. >> he can't break out of the fox mind set. >> that's such a burd tone bear. he can't stop analyzing the fact

that he will be president. he will win and he is better and smarter and brighter than anybody else. he rose because of his self confidence and he came out as abrasive and smart and he came out with factoids and it didn't matter. he had all the confidence. he couldn't stand scrutiny. i said earlier on this show and other shows, you need three things to win. money and organization and you have to survive scrutiny. as soon as people got to looking at newt gingrich rather than the idea of newt gingrich just as they guy in the debate podium. >> gingrich has to panneder and

play to the right, this will be decided by independents. at the same time that romney is criticizing him for being less conservative, he has to push back and be more conservative to win the nomination and at the same time alienate those folks in the middle who are independents. it's a complex calculus and gingrich is great as a sound byte, but i'm not sure if he understands the push-pull dynamics. >> i'm sure he doesn't at the moment. >> how much is this newt hunting helping the president. according to the "washington post," president obama's approval rating has got a bump. it's up to 49%, that's a five-point jump. the president is probably disappointed about trump's cancellation of his debate. every time there is a debate, the president's approval rating goes up. >> the president looks good compared to the republican clown

show. i think my guess is on the bump up in approval he has gotten, it's more a function of how he looks with john boehner and the republican congress. it's now about 11%. soon they will number negative numbers. we should ask the people at gallup about that. the last few months the president is just a good job promoting his vision and values and the payroll tax cut and the american jobs act. the republicans haven't. that's why he is slowly and steadily climbed back up which is the plan for the next year. slow incremental change that you can believe in. >> a final word to you? >> david is right. it's also the fact that we're bringing home the soldiers from i wack. the thing that is the president is doing that are bumping his numbers. the clown show is a distraction. >> absolutely. with his performance of air coming out of newt gingrich. thank you very much. >> my pleasure, martin. >> more on what could be boehner's latest blunder when we

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just an hour ago, dueling press conferences on the house's refusal to allow a vote on the senate plan to extend the tax holiday. president obama offering stern words for house republicans. speaker john boehner putting the challenge back on the white house. at stake, tax swallow 160 million americans when the clock strikes midnight on new year's eve. kristen welker was there and joins us now. the president was serious and almost confrontational in his comments saying that he agreed with those who said two months was too short. this was a short-term measure to prevent a disaster for 160

million americans and the overall economy. who issi telling the truth? >> reporter: senate democrats and republicans and house democrats and republicans said they support a one-year extension of the tax cut. however the president saying that this two-month extension of the payroll tax cut is really the only viable option to actually make sure the taxes are not increased on 160 million americans on the first of the year. why as you point out there seems to be a discrepancy. it comes as you remember that they couldn't agree about how to fund a one-year extension. you had senate democrats say let's increase taxes on millionaires and they wouldn't do that. house republicans suggesting that let's freeze salaries for federal employees and they couldn't come to an agreement. the senate caming to and said here's how we can do this.

let's get i less expensive bill compared to $120 billion for that one-year extension. to fund that, they are increasing the fees that they can charge to lenders. that's how they are going to do it. they would all come back after two months. then work out the details of a one-year deal. as of right now, republicans saying they are not going to have it and that this stalemate and standoff continues. >> absolutely and to the detriment of 160 million americans. thanks so much for joining us. >> absolutely. >> stay with us. the day's top lines are coming up. >> the top ten things mitt would like to get off his chest. >> what's up gangstas? it's the mi double 'tisle. just one phillips' colon health probiotic cap a day

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. >> from mitt's muscle to newt's nunlth and ron paul surprise, here are today's top lines. what are you calling conservative? >> i'm not allowed to communicate with a super pack in any way, shape, or form. >> here ought to be ashamed of himself and to take the junk off the air and don't hide behind the super pack that has to be run by five of my former staff. that is bologna. >> check the facts at newt facts.com. >> get rid of the super packs. >> this is good stuff. >> sorry that strong? >> huh all sorts of people and the super packs who have consistently been running negative ads. >> the justices and the congress sending the capital police and to bring in judges. that's not exactly a practical

or constitutional idea. >> freddie mac hired the total contract and i probably got $35,000 a year. that is less than i was making per speech. >> i don't think you have to win anything. >> i'm cautious. i'm not going to say hey, i'm right up there. we are doing better. >> harry truman is runny for reelection, people would yell give them hell, harry. he would yell back i tell the truth and it feels like hell. i probably got $35,000 a year. less than i was making per speech. >> newt gingrich? really? >> let's get to the triple panel here. columnist for the bloomberg view and in washington, "new york daily news" columnist and in atlanta, goldie taylor, ceo of the goldie taylor project. good afternoon to all of you. i can start with you. you heard in the top lines mitt

romney joking about newt gingrich, really? ron paul said he is watching the polls and the "washington post" new poll showing him right up there in the top three. is ron paul's rise newt gingrich's demise or does paul prove spoiler to mitt and newt? >> absolutely. ron paul doing well in iowa would zap some if not all of newt gingrich's momentum going forward to new hampshire. newt gingrich is looking for a big win in iowa. that would carry him a long way. now that the polls have levelled off between gingrich and romney and no longer leading by 18 percentage points, a win for ron paul which is not out of the question would be hurtful. >> do you think that would spell the end for newt? >> it probably should. i frankly can't believe newt has lasted this long.

it's been a really interesting test for mitt romney whose strategy thus far is to not dane to criticize the other candidates. he had to go after newt. the advice could be to keep saying he is a big government republican. it devolved into this who is the more evil capitalist kind of narrative. i don't know that that's been working, but i will certainly be a definitive moment either way for gingrich. >> michele bachmann got into a spat with ron paul. he accused her of being anti-muslim. take a look at what she said about the foreign policy in iowa on monday. listen to this. >> i never want to see kids in grundy center ever wake up and turn on their tv and see a city in the united states wiped out from a nuclear weapon. ron paul would wait until after that horrific tragedy to do

anything. parra are michele bachmann surrounded by children waking up to a nuclear bomb. you don't get more visceral than that, do you? >> no, you really don't. i guess she is trying to master the art of punching up, but she was right to go after newt gingrich and mitt romney in those debates, but to punch on ron paul is simply misplaced. iowa will be a tough place for everybody and this is a fluid race. my good money is ron paul has the organization to pull out, but it resets things. again, i think it's a fluid race and anybody's race. anybody but bachman's. they have been taking about hate rhett or alleged hate rhett of muslims. this comes down to the economy. that's the issue here. >> i don't think it is in iowa.

>> this is what americans call a family values primary. i remember being here in the iowa caucuses in second place ahead of a sitting vice president and pat robertson. these are the kinds of people who vote in the caucuses and you think i'm high, but don't rule out santorum. he broke into double-digits in one poll. >> wow! >> he has been in all 99 counties and he was there early and often. i don't think people will peel away from ron paul. that's why he may well pin this thing. the folks were going to be forum no matter what anybody says. those gingrich and romney votes

could go to rick santorum. >> i wanted to ask you about rick santorum and michele bachmann. you have been impressed with michele bachmann and seen progress in her campaigning and development as a national politician. isn't it true that come january 3rd or 4th, it may well be over for people like michele bachmann and rick perry. >> michele bachmann did well in iowa and no offense to goldie, but it was smart of her to go after ron paul who is likely to do well in iowa and she is turning attention on the guy that everyone is watching in iowa and knows that mitt and newt will take care of each other and go after each other. she really has nothing to lose. it's true that it's still very much a two-person race. but mitt romney as he said earlier on "morning joe." it's still anyone's to win.

it's a long season. there is a lot of time left. >> goldie, do you want to respond to that? michele bachmann was right to attack ron paul? >> you know, you go after the candidate where you think you can peel off support and supporters are probably the most solid there is and even mitt romney said when he goes to iowa, all he sees are ron paul signs. you can gain support and traction. i just don't think he gets that with ron paul. he does stand a lot to gain in his credentials if he goes after newt gingrich and she takes on the studio. you are lnching the attacks. >> if romney is launching the attacks. and voters especially in places like iowa have this thing called

iowa nice which a is a factor in that state. they do not like these attacks. often times the candidate who is not attacks comes up from the rear that may not win. >> se cup and goldie taylor in a somewhat altered state. stay with us. we will get more with you after this. >> too late for folks to jump in. ♪ [ male announcer ] when you're a true fan... [ exhales ] ...there are no sick days.

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refusing to support the senate's bipartisan vote. 90% wanted it. what do you think the impact is of this, particularly on the race in 2012? >> it's bad for the republican brand. they look like radicals. radical republicans. that's what they should be called. a lot of what they have been doing since the last election has been radical and it's indefensible in going against senate republicans in calling for attacks on the increase of 160 million americans. they won't increase taxes on billionaires, but will on all working people. that's not where you want to be as a political party. >> how do you dress up the image of the gop worse than what jonathan described it as. >> it's completely defensible. i was here in d.c. for the past week talking to house republicans about this. here's how they break it dun. it's quite simple.

obama and the democrats want to deliver a two-month payroll tax extension and republicans want it for a year. they don't want to come back to the table delaying it and kicking the can. >> that's not what the president said. i'm sorry to intervene, but the president at his press conference said he wanted it for a year, be recognize they couldn't reach an agreement and therefore he did the two months as a gap because he didn't want to see 160 million americans have their taxes go up. he never wanted it to be two months. it wasn't his idea and it never was. >> no. all of the rhetoric from the left will come back right away and will work on the one-year deal. if you want it for two months and a year, do it now for a year. these top gap measures -- >> there is no clean bill. >> for has to stop. >> wow. >> they were more than happy to do it for a year as you mentioned. the problem was the republicans

who were trying to put a bunch of other game killers as attachments. >> and drug testing. >> they wanted a pipeline and to deliver jobs. >> that's exactly right. >> hang on a second. goldie? >> is poppycock one word or two. defense tfs democrats who wanted a year long extension, but they had to break the deal. the deal was for two months and republicans came back and said no, we wanted it for a year. what they are trying to do is kill the extension for a year on working class americans and blame it on the president. that's what this game about and they caught aut to cut it out. $1,000 will do for working class americans or rent or groceries and keep the lies on and i'm sick and tired of the talking points that get pushed out. >> talking points and goldy is very cross.

>> yeah, sorry for the talking points, but it's not that complicated. republicans wanted to compromise and that doesn't mean if accept whatever is on the table. to compromise means both sides get something they want out of this. >> they wanted it to be pate for with the 3.25% sur tax on billionaires and millionaires and refuse on that basis. >> republicans are not stupid. >> they're refused the tax on the 1% in favor of raising taxes on working class americans. that's what they did and that's why we are at this two months and probably the entire thing will be killed because of the gamesmanship happening. >> i wish we had another hour, but thank you so much for joining us coming up, we take you live to cairo and britney sullivan has the market wrap. good afternoon.

>> luckily the markets are able to put aside the political finger pointing in washington. they have written off whatever happens in d.c. because it's a child's game. the average of 343 points and s&p is and the nasdaq is higher as well. you can blame it on blond yields, but that would be boring. there is more optimism that things are indeed getting better slowly with the u.s. economy and the fight is having no impact yet on the u.s. stock market. that's after this short break. let me tell you about a very important phone call i made.

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gunfire and chaos as egyptian security forces and opponents of army rule are clashing for a fifth day near cairo's tahrir square. at least 14 people have been killed. u.s. secretary of state hillary clinton has called the events of the past few days shocking.

nbc's foreign correspondent, aym ayman moin deen is in cairo. the re-election process has started, and yet the people are still angry. why? what's fueling this? >> well, martin, it's really two fundamental issues. one, it has to do with the long process of democratic transition. people are not satisfied that the election process for parliament and presidency is going to take over the course of eight months. keep in mind, when the military first assumed responsibility, they promised to hand over power within the course of six months. they've already gone beyond that deadline. but more important, it's how the military's conducting day-to-day affairs. keep in mind, 12,000 people, civilians, are being tried in military courts. they feel the military is imposing draconian measures on their civil rights. so people are extremely frustrated with the way the military's conducting day-to-day affairs here. >> secretary clinton pointed out that the country's security forces and extremists are

targeting women. in one case, a woman was dragged on the ground, stripped half naked, and beaten. how are that most vulnerable group, half the population, responding to this? >> reporter: well, today a very strong show of force. one of the largest women protests in recent egyptian history. about 5,000 women took to the streets. they were protected, actually, by men, allowed to walk around tahrir square, and essentially protected from any possible attacks on them, demanding that they have equal right, both in the political process, and that the military council step down. some very disturbing images that go not just beyond the past few days, but how women have been treated once they've been in the custody of men, with allegations of threatening against rape, sexual abuse, many other -- a long list. but for their part, the military, this evening, issued an apology to those women, saying that all those responsible will be held to account. so the military conceding this evening an apology to egyptian

women. >> five days of violence and trouble already. do you expect matters to calm down following this apology by the army? >> reporter: well, this evening, 16 egyptian political forces are calling for a massive 1 million man march on friday. now, that was before the military apology. so whether or not the apology dampens a little bit of that mood, really remains to be seen. but according to the political forces, including the powerful muslim brotherhood, they are calling for this million-man march on friday, because they feel the military has lost credibility in being able to govern the country through this transitional process. friday will be a big test to both the military and the political forces as to who has the upper hand, martin. >> ayman mohyeldin, thanks so much for joining us. and we'll be right back to clear the air. yes. but lately we've been using k-y® intense™. it stimulates arousal so the big moment is...

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it's time now to clear the air. and if the republican nomination process resembles a broadway

farce, then the gop in congress is now a modern adaptation of shakespeare's tragedy "othello." john boehner is a man who's supposedly feared and respected, but like othelll on speaker boehner finds himself in a position of power, but assailed on every side by his so-called friends, all of whom who are much more cunning and machiavellian than his honest soul from ohio. and at the center of the tragedy, is house majority leader eric cantor, a man whose designs desperately conceal his desire to ewe usurp the throne. only to disappear into the night and the grand bargain collapsed.

so when speaker boehner agreed on friday to lead the house in rubber stamping the senate's agreement on a two-month extension of the payroll tax holiday, he clearly believed what he was being told. but now listen to what eric cantor said just a few hours ago, and all in front of the speaker's face. >> mr. speaker, bottom line, a two-month match is irresponsible. that's why the house is taking a stand. >> so now mr. boehner is left to kill the bill. a bill that he previously thought was hill, but like othello he now says, so sweet was never so fatal. of course, it's now too late to go back and stop the hidden hand of eric cantor, orchestrating his own plan while publicly throwing speaker boehner to the wolves. but that's what he's been doing for the last year. this may be a tragedy for john boehner, but in reality, it's

the most terrible tragedy for the american people. and it's them who are being killed by eric cantor, a shakespearean rogue, if ever i saw one. thanks so much for watching. dylan ratigan's here to take us forward. dylan, what you got? >> well, i have some actually very spectacular news for you, martin. >> spectacular news? >> yeah, oh, yeah. i'm going to show you something. so, listen, you know the holiday's coming up, i did not have a christmas card. as you know, i don't have a family, per se. i don't have a wife or children. so i can't put like a cute picture of myself with my wife and babies on the family card -- >> you're now appealing for mpsay,ook a my friend, really, my brilliant friend, martin bashir, who is perhaps one of the most esteemed intellects in the western world, who is with me here. the interesting thing about all of this -- >> the interesting thing about that picture, dylan, is the question, why were you standing on a platform to exacerbate the height di