north korea. i'm wolf blitzer. you're in "the situation room." the showdown over the payroll tax cut lasted for weeks, but the stalemate ended in a matter of minutes today after house republican leaders bowed to overwhelming pressure and gave into the democrats. today, the house approved the bill that got almost 90% of support in the senate. president obama signed it into law and the threat of a new year's day tax hire for 160 working americans is over. let's go straight to dana bash who's watching this on capitol hill. must be pretty empty. it was exciting for a few minutes today. >> a few minutes, underline the word minutes. look, there is a lot of relief that this battle that consumed congress in these final days is over. especially for house republicans. >> the house will be in order. >> it was john boehner's decision to back down and he backed it up by presiding over passage of a short-term tax cut that many call a gimmick. >> hr 3765. a bill to extend the payroll tax holiday. >> after taking a bruising political beating for a week over opposing a two-month extension, the house approved it in under five minutes. >> the bill is engrossed, read for a third time and passed. >> across the capitol -- >> the senate will come to order. >> an even shorter session in the senate. >> i now ask anonymous consent that the house pass the bill. >> 65 seconds to keep its end of the bargain, a point negotiator to start work on a year long extension of the payroll tax cut. >> the senate will now stand adjourned. >> until 1:00 p.m. on tuesday, december 27th. >> the if you blinked you missed it end to a rough and tumble year was good news for americans, hoping congress would come together and prevent a tax increase, but left the speaker asking questions about his leadership. >> i'm disappointed in our entire leadership team. >> many freshmen feel sold out by boehner, who announced he was relenting to the democrats on a conference call with house republicans without allowing questions or criticism. >> i'm frustrated, but more importantly, american rs frustrated. a majority in the house, what difference did it make? >> it's been a recuring pickle for boehner. >> what's hard in this town is doing the right thing when the politics are against you. the conference asked mr. boehner to take this stand and he took it. that is exactly the kind of leadership that he provides. it's not a one-man show here. >> as the speaker walked off the house floor, a bipartisan moment. and kind worded from a democrat. >> i feel sorry for john boehner. i'm a democratic of the other party and support nancy pelosi for speaker, but he's a desebt human being and he's got a caucus that's gone south on him. >> now, the chaos that marked this final battle may end up looking tame and orderly by next year. of course, next year is an election year and the party squabbles and bickering, it is bound to escalate because of the fact that 2012 is very important to every single one of those house members. not to mention the guy living down pennsylvania avenue. >> one of the stories you're going to have to cover is the disappointment within republican ranks as far as speaker is concerned because that disappointment is very significant. >> oh, there's no question about it. it has been very hard for him to kind of walk that tight rope, keeping people happy inside his caucus and you know, there certainly was a lot of grumbling and it spilled over and will be very interesting to see how that plays out next year when everybody comes back. >> dana, thanks very much. after signing the bill, president obama appeared in the white house briefing room saying, i'm quoting, this is some good news just in the nick of time. he also noted the pressure house republicans were facing. >> i promise you, the american people, your voices made a difference on this debate. whether you tweeted or called or wrote, you reminded people in this town what this debate and all of our debates should be about. it's about you. your lives. your families. >> your chief white house correspondent, jessica yellin, is joining us with more. a short-term victory certainly for the president, but he's going to try to build on it. >> i think this is more than a short-term victory for the president. because the way that this tax fight unfolded was almost a real life enactment of the campaign narrative his team has been trying to build since september. let's remember the message is president has been delivering since he delivered his jobs speech in september. one, he has been arguing that he is a fighter for the working class. for the middle class, defending working americans. and he repeated that message in his remarks today. listen again briefly. >> we have a lot more work to do. this continues to be a make or break moment for the middle class in this country. and we're going to have to roll up our sleeves together, democrats and republicans, to make sure that the economy is growing. and to make sure that more jobs are created. >> so, one, fighter for the working class. two, he's argued that congress is dysfunctional, standing in the way of policies that could improve the economy. the challenge with that message is he has been locked in battles with congress in which both sides have been to blame. well, that changed that week because house republicans handed him a fight in which clearly, there was a gridlocked congress on one side and he clearly was standing with working americans against the gridlocked congress, so they gave him an opportunity to turn his campaign narrative into a real life drama. it is more than the white house could have hoped for, wolf. >> so, he wins this round, but in the aftermath of this fight, what do we expect from the white house going into the new year? >> expect more of this we can't wait events where he enacts executive actions. expect them to engage in the fight, to figure out how to extend the payroll tax cut for a full year and pay for it in a way that the white house thinks is responsible and expect them also to push for more elements of that jobs package to pass. the white house and president knows he'll ultimately be judged on how well the economy is doing and that to some extent, is out of the president's control and for republicans, that also is what they think is the final, is what he finally also will be judged on and for them, that is in their view, good news. >> a lot of economists say keeping this tax cut going for another year and the unemployment, that will help the economy, which will be important if the president. thanks very much. with the deal wrapped up, the president heading to hawaii right now to join the first family for a little christmas vacation. brianna keilar is already in honolulu. she's ready to receive the president. what awaits president obama once he gets there? >> of course he's going to be having fun, but he'll also be doing work. i have to say pardon the interrupti interruption. the university of iowa marching band is on the beach here and the football team is going to be playing on christmas eve, so of course this is a working vacation for president obama. one of the big concerns always would be some sort of terrorist threat or attack that became a real possibility in 2009 with the attempted bombing on that airliner going into detroit, the so-called underwear bomber and that means that president obama is always village lent, as he is while in d.c. he'll be receiving his national security briefing every day, either in person from a member of his national security team or he'll get it in writing, but also, there's this issue of recess appointments, something that this white house seemed to be considering, but now, we know that congress is in pro forma sessions and that means that he won't be able to do that, wolf, but we also know that president obama has said in particular for the appointment or his nomination of richard cordray to that consumer protection bureau that was recently created, an appointment the president sees as very important, because the financial products can't be regulated, can't do that without a director. president obama has said all options are on the table and some have raised the possibility that maybe as congress goes from its last session into the next, that there would be a way to do some sort of appointment. that may also be on the president's mind during his vacation, wolf. >> love the music. photographer get a shot of the university of nevada marching band? >> i don't know, peter, can you get a shot of the band or is it too far down? i don't know that you can, wolf. i think we're in a place where we're kind of locked down, but a lot of people are here. they're on vacation, they're having a lot of fun and of course, president obama is going to be having some fun as well. he's come out here now for several years, always doing some of the really typical vacation things. he's gone out in the past for a shave ice with his daughters. traditional hawaiian treat and you know of course he'll be golfing. this is where he gree up and learned to golf and he'll be recorrecting with some old friends and playing some golf, although at this point, there aren't any public events on his schedule. we expect to see him doing some of those typical vacation activities. >> thanks very much. brianna keilar on assignment in honolulu for cnn. let's bring in the host of "state of the union," candy crowly. that's a tough assignment to be out in hawaii covering the president. >> big deal, they're out in hawaii, but you're always calling because you're thinking that something's going to happen and you'll be silting on the beach. >> i was in hawaii with president clinton and i worked hard even though everybody was making fun of me. i worked pretty hard. let's talk about what's happening in washington. you saw that headline, i'm going to put it up behind you in the "washington post" this morning. house gop survrenders on payrol tax. the headline in the "washington post" today. you don't often see a headline like this. >> no, it's not always as clear cut as it was. one of the things that john boehner said in that press conference when he said, okay, it's done, probably wasn't good politics. and he was right. it was not good politics. this was a loser for them. it really was and you know, the question is do these headlines follow the gop into next year. they're going to have another fight about this same issue. can they turn it on its head somehow. >> you know what? we're going to raise your taxes, even though the economy is in bad shape. >> people have been saying, we're not going to raise taxes and it's the worst thing to do when the economy's in bad shape. so no. i think the bottom line is in doubt. the question is, what's attached to it. one of the ways they got republicans on the senate side on board for this two-month deal it was putting on the pipeline deal that so many of the midwestern senators want. from canada to texas. and forcing the president to make a decision. we'll see how wise a move that was by republicans. none the less, the big battle is going to be how are they going to pay for this and that's where republicans hope to make enroads. >> how much damage has there been to john boehner's reputation, leadership right now? >> one of the things we've known about john boehner is that he has a caucus that didn't listen to him. this is not your grandfather's politics anymore. this is a bunch of people in the -- who have been elected by tea party supporters, most of who the freshmen any way, had previous lives with jobs and they don't as i think somebody b earlier said, they don't follow the regular political pattern such as your speaker. take this one for the speaker. they don't do that. but he also has -- he's made friends up there. he has been up there a long time. he knows how to play this game and he does have friends in that republican caucus. it's damaging. they are angry at him, but what they don't get, and this is what's frustrating to other republicans who knew they were getting bashed, what they don't get is that you can't win with 40 freshman tea party members. you need more than that. >> i remember when tip o'neill was speaker. can you imagine a freshman democrat? criticizing any earmarks she would have been looking for, gone. see you sunday morning, 9:00 a.m., a special "state of the union" this sunday. thanks very, very much. a prediction of a race war and an old solisation. details of a new controversy in his campaign. also, the growing row of candidate's wives in the race for the republican presidential nomination. can they help win votes for their husbands? plus, details of the huge reward the u.s. is offering in the hunt for a terrorist financer hiding in iran. nyquil: you know i relieve coughs, sneezing, fevers? tylenol: me, too. and nasal congestion. nyquil:what? tissue box (whispering): he said nasal congestion... nyquil: i heard him. anncr vo: tylenol cold multi-symptom nighttime relieves nasal congestion... nyquil cold & flu doesn't. it's 4g, so you can do more faster. so, kathryn, post more youtube videos of your baby acting adorable. baby. on it. matt, ignore me and keep updating your fantasy team. huh? jeff, play a game. turbo-boosting now, sir. dennis, check in everywhere you go on foursquare. that's mayor dennis... of the water cooler. you're the best. liz, rock out to pandora. oh, no i'm an only child. and nick, you shouldn't even be here, you can do everything from the golf course. good? 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[ santa ] ho, ho, ho! american authorities are hoping to catch a syrian man they think -- barbara starr is joining us now. what's the latest on the efforts to track down and capture this man? >> the administration is going after this new link between al-qaeda, iran and this syrian born financier, it's a network that the u.s. is making new moves to bust up. the 29-year-old hiding out in iran now has a $10 million bo t bounty on his head. >> locating him and shutting down his operations would eliminate a significant financial resource for al-qaeda. >> he is accused of operating a major network inside iran. the u.s. says he's moving cash from middle east donors through iran and into the hands of al-qaeda in afghanistan and iraq. the u.s. also allegations he transports al-qaeda operatives from the middle east into afghanistan. the u.s. believes iran has sheltered him since 2005 and knows exactly what he's up to. >> he works with the iranian government to secure the release of al-qaeda operatives held in iranian prisons. once released, the iranian government transfers the prisoners, who helps transit to pakistan. >> the $10 million reward matches what the u.s. is offering for the head of the afghan taliban. only the man who replaced osama bin laden as the leader of al-qaeda has a bigger price on his head. for $10 million, the u.s. wants al-suri's location inside iran. >> once we receive information to handle that information and decide how to act. >> the reward is just the latest example of u.s. concerns about iran's interference in pakistan and afghanistan. at a recent breakfast meeting, the u.s. ambassador to afghanistan made clear he's closely watching growing iranian influence. >> the message they're sending to the afghans is watch out. little muscle flexing, but we can do worse. >> crocker again warns iran not to cause trouble. >> they're wise not to do that because i think they'd get a pretty punishing response. >> now, the hope here is by exposing this al-suri network, they cannot only bus it up, but again, at least try and control iran's meddling in pakistan and afghanistan, but wolf, they have tried this before and it hasn't worked. >> thanks very much. after a series of violent protests, thousands more egyptians are taking to the streets. we're going to take you there for an update. also, the vice president, joe biden, moves into his role as obama campaign attack dog. we're going to tell you what he's doing in iowa and several spouses of republican presidential candidates are featured in brand new campaign ads. we're taking a closer look at what they're saying and the unspoken message. >> we grew up in small towns, raised with christian values, values we still believe in. and we know washington d.c. could use some of that. >> i'm rick perry and i really approve this message. t on your . jumper cables, camo anything, a power drill -- ooh! 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[ female announcer ] do you have enough crescents? okay... uhh. the bad news, it's probably totaled. the good news is, you don't have to pay your deductible. with vanishing deductible from nationwide insurance, you got $100 off for every year of safe driving, so now your deductible is zero. the other good news ? i held on to your coffee. wow. ♪ nationwide is on your side ( laughing ) it's actually a pretty good day when you consider. that's great. mary snow is monitoring some of the other top stories. mary, deadly suicide bombings in syria, turning into another flash point between various sides. what's the latest? >> u.s. officials are concerned the attacks will distract arab league observers. they hit in damascus, killing 44 people. the government says the attacks had all the markings of al-qaeda. opposition forces say they were the work of a assad regime, which wants the arab league to believe it's fighting terrorist. thousands are demanding the army give up power to the civilian government. prince phillip, the husband of queen elizabeth, is in a hospital after suffering from chest pains. the duke of edinburgh is undergoing precautionary tests in cambridge according to buckingham palace. >> thanks very much. joe biden on the attack. he's targeting mitt romney in a stinging op-ed and now, romney is firing right back. plus, a woman's touch in this presidential. some candidate's wives are taking on a bigger role. >> from our family to yours, merry christmas and happy new year. his official title as vice president of the united states, but joe biden, also president obama's campaign attack dog, at least on this day and now, the white house is putting him on the candidate they believe is the president's strongest republican challenger, mitt romney. joe johns is working the story for us. what's going on here? this fight today between joe biden and mitt romney? >> very sharp words. you can tell we're getting pretty close to the iowa caucuses. mitt romney had a few hard knocks lately as the lead has changed hands every couple of weeks or so, but as the christmas holidays approaches, he's still a huge factor in the race while some of the others have lost traction. >> we have to grow -- >> now that the newt gingrich boomlet has started showing signs of fading, mitt romney is thrust back into the spotlight. he's getting pressure from all sides. a lot thanks to some powerful newspapers. new hampshire's union leader slammed romney for doing events with seemingly scripted questions, taunting him to debate gingrich, who happens to be the guy the union leader has already endorsed. and in iowa, where some of the latest polling suggests romney, gingrich and ron paul are statistically tied for the lead, it was romney who was being singled out for special attention from the democrats. after mostly walking softly on the sidelines of the republican fight, the incumbents in the white house whipped out their big stick, giving a couple of holiday whacks to the main guy they see now as a potential threat next november. the des moines register under the by line of jobz himself, ridiculed romney's vision, charging that romney appears satisfied the settle for an economy in which fewer succeed while the majority of americans are left to tread water or fall behind. romney calling the piece in the newspaper, a joe biden gaffe. >> someone had written at op-ed in the des moines register attacking me. and blaming me for the economy. and i thought, now who would have the -- the chutzpah, there you go. the delusion to imagine that i was responsible for the decline of this economy over the last three years and it was none other that vice president joe biden. and -- another gaffe, exactly right. and you wonder in some respects what fantasy land he lives in. >> this gift of a photo op was the latest opportunity for romney to behave before the cameras as if he's the nominee before the first vote is even cast, but he got even better news from george herbert walker bush, who told a newspaper in texas that romney's the party's best choice. gingrich and president george bush apparently had a disagreement in 1990 over a budget deal the president was supporting while gingrich was in the minority. this was yet another reminder that some of the republicans who shared power in washington with gingrich in the '90s are not exactly clambering to jump on his band wagon. >> thanks very much. let's dig deeper in our strategy session. joininging us, the democratic strategist and the republican strategist. guys, thanks very much for coming in. i was surprised that joe biden, the sitting vice president of the united states, has gone ahead and written this tough op-ed in the des moines register blasting romney. isn't that why god created people like david axelrod? >> i think it makes total sense, wolf, because the vice president from day one has been the head of the middle class tax force. he's sort of acting as the spokesperson for the middle class and fighting for the middle class and then putting them first. actually, that aggressive nature about defining what this next election and what this administration is fighting for has worked for them. the barn storming the president has done on the american jobs act to try to create millions of jobs for americans, we saw it in the payroll tax cut and now, they're going to continue that. especially when you have romney hitting this president over and over on jobs and he's wrong. >> i would assume the vice president would get into the fray later, but it's a little early to do that, don't you think? >> it is. all of us have kind of a quirky relative who shows up at christmas and you're not sure you want them there. it spoils the party. this is a strange move by the democrats and the white house to put joe biden into the iowa caucuses. nobody's going to pay attention to what he's saying. this is a fight among republicans. the race is wide open in iowa, but i don't think joe biden has a chance of becoming the republican nominee. >> those quirky relatives sometimes tell the truth and unfortunately, it's a little uncomfortable. >> to diminish the power of the incumbency of the white house. when the republicans are having an affair of their own in iowa -- >> it does underscore what joe johns just said, that the white house is once again the obama campaign coming under assumption that romney's is most formd formidable challenger and they've got to start beating him right away. >> it is, but you don't attack romney in the middle of the process. you're helping him. >> what's interesting is that romney thinks he is going to be the presumptive nominee. he's acting that way by attacking the president. you have to defend your record. what's interesting about this op-ed, yes, he starts talking about romney, but the fact is, you can paint a broad brush stroke on any of the gop candidates and they will all be failures for this middle class. >> what this does underscore to me, the fact that joe biden has written this op-ed in the des moines register. it sort of underscores to me, he's going to be on the ticket. all this speculation that he's going to be dumped and hillary clinton's going to be brought in, i don't think that's necessarily going to happen. what do you think? >> not a chance. he serves a valuable function. he can say extreme, crazy things. the president can remain presidential. he's there for good. >> i think that's exactly right and again, you see somebody, joe biden, who was so credible when he talks about the middle class. he comes from the middle class. i think what you're going to see is he's going to continue to talk about that. >> did you see the news from donald trump? >> what was that? >> oh, my god. he's no longer a republican. he's unafiltuated, a statement saying he's not sure if he's going to be able to run if he doesn't like the republican nominee. he is no longer affiliated with the republican party. he's an independent. >> that's just too bad. i'm heartbroken, but i can't follow the trump ticker 24/7. every time he makes a statement, it's dramatically different from the last time. >> he's not going to make his mind up until he sees who the republican nominee, but b, until the season of celebrity apprentice is over with in mid may. he wants to make sure there's no conflict there because the broadcast rules. >> but the speculation would be too good for democrats. it would be way too much to give us yet another gift, to this that trump will run as a third party candidate. >> he could join the democratic party and challenge barack obama. >> i don't think so. i don't think that's going to happen. stand by for a moment. we got more to discuss. next week by the way, i'll be anchoring "the situation room" from iowa. we'll have two major interviews lined up. on tuesday, i'll be speaking with newt gingrich. wednesday, mitt romney, as we count down to the january 3rd iowa caucuses. also, six days in north korea, a special edition of "the situation room" coming up at the top of the hour. i'm going to share what i saw there on assignment. but up next, a new controversy facing ron paul. an old direct mail solisation with his signature that talks about a race war and more. and what the wives of the republican presidential candidates are bringing to the campaign. >> from our family to yours, merry christmas and happy new year. i'm calislista gingrich. ♪ ♪ [ male announcer ] everyone deserves the gift of a pain free holiday. ♪ this season, discover aleve. all day pain relief with just two pills. ♪ you want to save money on car insurance? no problem. you want to save money on rv insurance? no problem. you want to save money on motorcycle insurance? no problem. you want to find a place to park all these things? fuggedaboud it. this is new york. hey little guy, wake up! aw, come off it mate! geico. saving people money on more than just car insurance. a race war, a homosexual cover up, a government conspiracy theory. all mentioned in ron paul's newsletters has just come to life. now, his campaign is faye icing new set of questions on what is a sore subject for the candidate. brian, what do you know about this old ron paul mailer? >> wolf, it contains some very, very continroversial lanlguage. again, having to defend himself in a letter written on his behalf. we've reported in previous campaigns how ron paul has disavowed those newsletters with his name on them, with insults towards african-americans and others. paul said he didn't write them, didn't know who did, and that he rarely read them. now we're learning of a solicitation, with what appears to be his signature. it warns of quote, the coming race war in our big cities. it mentioned quote, the federal homosexual cover-up on aids. then in brackets says my training as a physician helps me see this one. it references quote, the israeli lobby, which plays congress like a cheap harmonica. it is an effort to get people to send in money to subscribe to three newsletters, including one which -- but unlike those newsletters, you've got to take a look at this next one. the letter has paul's signature on it, possibly indicating a closer connection. reuters, which reported on this and obtained a copy says it was written around 1993 and got the lerts from contributing editor of "the new republic" magazine. we contacted ron paul's campaign. the chairman said quote, dr. paul did not write this solicitation and the signature is an auto pen. it does not reflect his thoughts and is out of step with the messages. the campaign says paul disavows the letter, he implores that kind of content. there were multiple ghost writers involved in writing all o these letters and that paul does not know who wrote the offensive material, but the campaign says because they appeared under his name, quote, he should have better policed it and he has apologized. >> does the campaign say it will try to find out who wrote the letter? >> i e-mailed the campaign back asking if they will try to find out who it was and if they are going to admonish that person. i have not heard back yet. in 2008, when we reported on the newsletters, the campaign said it would not try to find out who wrote them. the campaign said what's the point at the time. maybe they were under more pressure. >> even in his response to the reporting on this latest letter, ron paul is going after the news media right now, isn't he? >> that's right. in the e-mail back to us, the campaign says it is legitimate he answer questions, but quote, there is a line being crossed by some in the press by the aggressiveness by which they put the story, so they are attacking the media and others for going after him on these matters, but clearly questions he's going to have answer in the days ahead. >> everything seems to be open for discussion, brian, thanks very much. back to maria, republican sfrat gist, terry. what do you make of this? we reviewed it four years ago, but it's coming back. >> well, it comes back because of a lot of ron paul's appeal is coming from new voters. aggressive, attentive activists that are fairly new to the republican party that don't know a lot about the old ron paul. we've known about a lot of this stuff for a long time. as a libertarian candidate in the '80s and '90s, he had an aggressive fund raising operation. that was why he was able to win a seat in the congress because he had big national money and he was able to carry that race. i think at this point, it's going to be interesting to see what his supporters do. a lot of times, when attacks like this come, the most aggressive activists actually harden their support for their candidate and it might not have that much effect on ron paul's support in iowa, although down the line, i think stuff like this is very damaginging. >> a lot of ron paul supporters have said this is opposition research from republicans because they're scared of him. >> i think terry's right in that this for ron paul supporters is going to make them budge. they're going to see it as a conspiracy, but i will say that this new newsletter with his signature could be a problem. could it be a problem in iowa? probably not. it's the holidays, people aren't really paying attention. but if he comes out of iowa as a more credible candidate, this will hurt him. >> in fairness to ron paul, i've interviewed him many times. he's never suggested anything as occurred in those newsletters or that letter and all the interviews, he's got his on views on foreign policy, but conspirator yal theorys and race wars, he's never spoken about that in resent years. >> because it doesn't match the profile people see of him and as he becomes well-known. he comes across as a soft figure. he's an older guy. he isn't the kind of profile that you would expect of that and the fact that this is direct mail fund raising, it's inappropriate. it's language over the line, and he may be able to separate himself. >> i think you're right, he hasn't said that recently. >> merry christmas. happy new year. we'll be spending a lot of quality time together in the next several weeks. back to the battle of the candidate's wives. several republicans spouses are featured in new campaign ads. we're looking at the scripted words and unspoken messages to voters. mary? >> three spouses are taking the spotlight in new ads. they aim to show the softer sipd of the candidates, there are not so subtle messages behind them. we're used to seeing them by their husband's sides. now, the wives are taking center stage in campaign ads like this one called character for ann romney praises her long time spouse, mitt. >> and if you really want to know how the person will operate, look at how they've lived their life. i think that's why it's so important to understand the character of a person. to me, that makes a huge difference. >> in the ad, you see the romneys. but political watchers say it's not just about them. it's about someone who's not in the ad at all. >> her theme is my husband is trustworthy. newt gingrich is not. it is a very, very clear play here, that they are contrasting his long time, one-woman marriage with newt gingrich's three marriages and his infidelity. >> mitt romney denies the ad is about contrasting anybody. saying it's about personal background. long time marriage is also a theme by rick perry's wife, anita, who speaks glowingingly about marrying her high school sweetheart. >> we grew up in small towns, raised with christian values, values we still believe in and we know washington, d.c. could use some of that. >> then, there's newt and callista's christmas greeting. >> from our family to yours, merry christmas and happy new year. i'm callista gingrich. >> game changers? maybe not. with the iowa caucuses less than two weeks away, candidates are scurrying to reach an audience where family makes a difference. >> they're targeted to families and certainly, they're targeted to women because reassuring voters in iowa that he's a good guy and he's a family man has a lot of resonance for women. >> there are some spouses who are seeking a lower profile. in the case of ron paul, he leaves it to his son, rand paul, to speak for the family in a new ad set to run. >> thanks for that. here's a closer look at some of the other political headlines making news on the cnn political ticker. the republican presidential hopeful, rick santorum, is unveiling a new ad using pop-ups. it like the videos from the 1990s and tells santorum's personal and professional history through the text pop-ups. begins running in iowa next week. here's a preview. ♪ very clever. new polling shows the economy is still the number one issue as we get ready to head into the new presidential election year. a brand new poll shows 57% of americans see the economy as the most important issue facing the country. deficit came in second. most say unemployment is america's biggest problem. for complete political coverage, go to cnn.com/ticker. you probably thought you were safe to talk on the phone while driving as long as you were using a hands free device, but you might be wrong. we have a report on a growing debate. and then, a special situation room documentary chronicaling my extraordinary trip to north korea. "six days in north korea." that's coming up right at the top of the hour. i can't keep a secret, so i'm doing christmas last minute... well, this necklace is awesome. honey, you're getting a necklace! see what i mean? i'll surprise you. please. [ male announcer ] the only place to go for last-minute christmas gifts. walmart. anything? no. ♪ how about now? nope. ♪ [ dog barking ] ♪ ♪ [ male announcer ] the chevy silverado. ♪ [ male announcer ] with best-in-class 4x4 available v8 fuel economy. finally! ♪ [ male announcer ] from getting there... to getting away from there. chevy runs deep. ♪ when your chain of supply goes from here to shanghai,. that's logistics. ♪ ♪ chips from here, boards from there track it all through the air, that's logistics. ♪ ♪ clearing customs like that hurry up no time flat that's logistics. ♪ ♪ all new technology ups brings to me, that's logistics. ♪ as millions of americans hit the highways this holiday, many of them with their cell phones, a new debate is unfolding here in washington over just how dangerous the devices could be even, even when a driver has both hands on the wheel. let's bring in athena jones. what's going on here? >> as you mentioned, aaa says that almost 92 million people will travel 50 miles or more during the holidays. many, that 90%, will be driving and as we see when we're driving in cars, many could be talking on cell phones. the recent announcement recommending a ban on all cell phone use has raised important questions about new hands free technology and whether it is in fact safety. transportation secretary says safety efforts should be focused on hand held phones. cell phones, iphones, blue tooth, ipads, when it comes to distracted driving, the question is where to begin. judy's son joe was killed when a young woman ran a red light. she shared her story as part of the campaign on distracked driving. >> parents don't understand when they hand their kids a cell phone, they're handing them a weapon. >> just how dangerous is hands free technology? plenty, says the national transportation safety boar. they're calling for a complete ban on the use of devices by drivers unless they're built into the car. >> many times, the distraction there is not just one that's about manipulation of something or a visual distraction. it's about a cognitive distraction. it's about not being engaged in the task at hand. we know human beings have a difficult time focusing on one task and maintaining vigilance. >> the transportation secretary says the focus should be on hand held devices. >> the problem is not hands free. that is not the big problem in america. >> according to a 2009 study by the virginia tech transportation institute, drivers who dialed cell phones were nearly three times as likely to have a crash or near crash as nondistracted drivers, but true hands free use is less risky, as long as drivers don't have to take their eyes off the road for long periods of time. some 35 states and washington, d.c. banned texting while driving while nine states and d.c. banned drivers from using hand held cell phones while driving. some states ban devices for young drivers and bus drivers, but no state bans all cell phone use for all drivers. that report is due out late next year. now, the virginia tech transportation institute recommends a ban on all hands free, hand held devices and says true hands free devices are okay for everyone but newly licensed teen drivers. in fact, they recommend a ban on all wireless devices including hands free for drivers under 18. >> a lot of these recommendations are in fact just recommendations. there's no indication any of this is going to become federal law. >> absolutely and there's still a lot of debate. there's a new study coming out next year, so that could come with new recommendations. the real issue in part of this debate is whether you're just as distracted by a phone conversation with someone not in the car as you are with someone in the car and the ntsb arguing that someone in the car is paying attention to the environment, so that's less dangerous than talking on the phone. >> thanks so much. merry christmas to you, to all of our viewers. coming up, "six days in north korea." here. oh, this is a good one. ♪ grandma got run over by a reindeer ♪ really? ken. ♪ walking home from our house christmas eve ♪ ♪ you can say... i had the right of way! oooh...man. turning off the music. sorry, nanna. [ male announcer ] get low prices, every day, on the latest smartphones starting at 97 cents. save money. live better. walmart. britta olsen is my patient. i spend long hours with her checking her heart rate, administering her medication, and just making her comfortable. one night britta told me about a tradition in denmark, "when a person dies," she said, "someone must open the window so the soul can depart." i smiled and squeezed her hand. "not tonight, britta. not tonight." [ female announcer ] to nurses everywhere, thank you, from johnson & johnson. [ female announcer ] --ocaptions by vitace-- www.vitac.com i'm wolf blitzer in washington. we want to welcome our viewers to a special edition of "the situation room." instead of our regular program, we're going to bring you an extraordinary documentary. exactly one year ago, i had a rare opportunity to travel to north korea during a time of grave crisis. tensions were very high and tensions are very high now. that's because of the death of kim jong-il. his youngest son, kim jong-un, is the apparent successor, but he's only in his late 20s and totally untested. at this time, leaders from the united states, south korea, china, japan, russia and so much of the world are watching nervously. they fully appreciate that one miscalculation could trigger all out war. since world war ii, the korean peninsula has been one of the most dangerous spots on earth. not many reporters get a chance to visit north korea. given the current stakes, we thought it would be useful to show you what we experienced. here now, my reporter's notebook, "six days in north korea." this is a place few outsiders have ever seen. at first glance, it looks like any other major city. high-rise buildings. kids playing. couples strolling. people jamming into street trollies, wide roads with traffic o cops, male and female. but this is no ordinary city. this is pyonyang, the north korean capital. and we're heading there during one of the most dangerous times in its history. >> i was an hencive. i felt i would be held hostage or some of our delegation would be hurt. >> i was concerned about whether we would make it out of the country. that would have been a very ironic situation. richardson, having to be rescued. >> i found myself trying to say i love you to everybody i knew as much as possible. >> i called this official at the national security counsel and he said it was dangerous. he said there was no way the u.s. government could help if anything happened, if i were taken hostage or anything like that. for months, the situation on the korean peninsula is getting worse. march, 2010. a south korean warship is hit by a torpedo and sunk. 46 south korean sailors killed. >> the evidence is overwhelming. and condemning. the torpedo that sunk the chinun and took the lives of 46 south korean sailors was fired by a north korean submarine. and the united states strongly condemns this act of aggression. >> north korea denies its responsible, but there's outrage around the world and especially in seoul. november 2010. north korea shells the south korean island, killing two south korean marines and two civilians. north korea says it's in response to south korean ships firing into its waters. there's panic in south korea. and fear that a new war is about to begin. addi adding to the tension, word that the north koreans have improved their capability to make nuclear bombs. >> the size of the enrichment program was stunning. >> even the united states is getting ready for possible conflict. president obama ordered the u.s.s. george washington aircraft carrier to steam toward the korean peninsula. >> what we're seeing is a real display of the fire power that the united states and north korea have. >> this is the environment that bill richardson is entering. he asked me to go with him. >> they invited me because they wanted to send, i believe, a message to the united states and to the world. >> richardson is wrapping up eight years as new mexico's governor, having earlier severed as u.s. ambassador to the united nations and energy secretary. he's been to north korea on several occasions. >> every time i've dealt with them, i try to treat them with respect. i try to be honest with them, but we've had success in dealing with them. we've got an american pilot out. an american prisoner out. we pushed some nuclear negotiations. i got the remains of some of our soldiers out, so every negotiation we've had has worked. and somehow, when ever they have difficulty dealing with either the bush administration, the obama administration, they kind of call me. you know, there's a joke that orrinry people like bill richardson. >> of course, he has to get permission from the obama administration. >> they were a little reluctant. they were a little you know, they want their diplomacy to go through their channels, but they said basically, go. >> we land in beijing on wednesday, december 15th, and i interview richardson live on cnn. >> my main objective is to try to calm down the north koreans. to get them to stop some of these aggressive actions. >> good luck, i say to myself. there are more than a million north korean soldiers just north of the demilitarized zone, armed with thousands of rockets, artillery and tanks. the south koreans just a few miles away op the other side have just as many trained on the north. nearly 30,000 american troops back up the south. >> well, i do believe the korean peninsula is a tinderbox. it's probably the most dangerous spot on earth. >> one miscalculation could trigger all out war. >> in the first 90 days of all out warfare, we would see several hundred thousand casualties. before it's all over, we would see two or three million people dead, including countless numbers of americans. >> and that assumes no nuclear weapons are used. i know the stakes are enormous. on thursday morning, december 16th, we go to the korean embassy and receive the visas. within a few hour, we're on the official north korean airline to pyonyang. we know we're going to have severe restrictions on where we could go and who we could talk with. >> you're constantly watched. your rooms are bugged. your telephone is bugged. they don't let you like leave the hotel. you have to ask your handlers. >> still, we have extraordinary access to a mysterious country that few outsiders have ever seen. what i don't immediately realize is that ooichl about to embark on the strangest journey of my life. >> coming up, inside pyonyang. >> it's like you're stepping into the '50s. >> the first meeting with north korean officials. >> governor, how did it go? >> and a very strange tour of the capital city, when "six days in north korea" continues. at liberty mutual, we know how much you count on your car and how much the people in your life count on you. that's why we offer accident forgiveness, man: good job. where your price won't increase due to your first accident. we also offer a hassle-free lifetime repair guarantee, where the repairs made on your car are guaranteed for life or they're on us. these are just two of the valuable features you can expect from liberty mutual. plus, when you insure both your home and car with us, it could save you time and money. at liberty mutual, we help you move on with your life. so get the insurance responsible drivers like you deserve. looks really good. call us at... or visit your local liberty mutual office, where an agent can help you find the policy that's right for you. liberty mutual insurance. responsibility. what's your policy? we land in north korea late in the afternoon on thursday, december 16th. i have no idea this is going to be the strangest journey of my life. the north koreans take us into a room and confiscate our passports and cell phones. on the trip with me, governor bill richardson and four aides, including his senior adviser on fortune affairs, who's visited the country some 40 times going back to 1990. >> i was born in china to korean parents and raised in japan, going to american school. >> also on board, richardson's energy adviser. we head toward the city center in minivans and get our first glimpse of a huge, but strangely empty city. >> we were one of the few cars on the roads. we were there in the wintertime. it had just snowed the night we got there, so that made a beautiful landscape with all this fresh snow. >> we see people, men and women, shoveling snow by hand. not just the sidewalk, but the streets as well. >> well, it's an eerie feeling. it's like you're stepping into the '50s into a city with old cars, very cold. it's like dr. strangeglove. the buildings are not lit because there's little electricity and a lot of military around. a lot of people marching. >> but as depressing as that sounds, it used to be worse. >> compared to say eight years ago when in a typical day, you would experience four to five blackouts. sometimes, you'd be sitting in the dark for two or three hours at a time. clearly, they've made some headway in the recovering their energy supplies. >> one of the first things you can't help but notice, the propaganda murals everywhere. huge pictures of north korea's founder, and his son, the current leader, kim jong-il. all over the place. almost at every corner, but we don't see any pictures of the new heir apparent, kim jong-un. as we drive into the capital, we see impressive looking buildings, including the national sports stadium and ice skating rink, but it's getting late in the day. the hotel was a nice hotel. very clean. not very occupied. the lock by was lovely. the restaurant was nice. rooms were sort of plain. nothing too elaborate. maybe a 1960s or '70s holiday inn in the midwest some place. >> my initial thoughts were wow, this is another trip to north korea. but again, as usual, we don't know what we're getting into. >> i sensed not just from the north koreans, but from the south koreans and chinese as well, that something possibly dangerous was going to happen. >> i was having trouble sleeping that first night and wound up waking up at 4:00 a.m. and turned on the tv. no picture. just some fuzz on the screen. and i said it looks like we're going to war. they've cut off communications with the outside world. i went in the lobby to see what was going on. i say no tv. he takes me outside and shows me this big satellite dish and there was a lot of snow come down. the snow was filling up the satellite dish and he said that's why there was no tv and i was really relieved and i said, what a false alarm that is. we head to the foreign ministry. >> this will be our first meeting where we try to ease tensions. >> ease tensions. easier said than done. that morning, richardson has his first meeting with north korean officials. this one with the new vice minister who's their expert on the united states. >> minister of fortune affairs, but be small to compared to united states state department, but its location is much better than the united states state department. >> they're very proud of everything they show us. cnn is allowed in at the start of the meeting, but then asked to leave. we go outside to get a flavor of pyonyang. here we are. tht the square. as you can see, it's really huge. it's magnificent and they often have events here. which is totally understandable. these are all government buildings over here and this is a magnificent palace right in front of me over here, r if you want to just flip over, you can see the foreign ministry and then you see this marvelous structure over here. this is a brisk, cold day on this friday. here in pyonyang. but it's nice. there's not a whole lot of traffic here. it's icy. the streets are icy. it's snowy. see a lot of people shoveling and there you see the hem on the sickle of this communist government. you see marx. manifestations of the communist philosophy. inside, the talk is tough. in the first of several meetings for governor richardson. >> we're ready for either dialogue or war. that was their standard pitch. >> governor, how did it go? >> well, it was a decent start. both sides are feeling each other out. i express our deep concern and they obviously express concern with u.s. policy, the escalating situation on the peninsula. >> but this journey is nothing if not surreal. in the morning, meetings that could make the difference between war and peace. in the afternoon, our north korean handlers, all of who are very polite and speak english well, take us sightseeing. we're taken to the university, the largest nth country. the men with blazers and ties. the women with proper dresses. >> how do you get into the university here? >> we select high level of students in the secondary school. and then they have a nationwide test, examination. >> we then go to the stone tower. the tallest in the world. >> we're on top of the world's tallest stone tower in pyonyang. it really is majestic to see what's going on. you see the river, the bitter cold, freezing snow. but the buildings are really impressive and they've built this tower to really highlight what they've accomplished over the years. they make the point of pointing out this is taller than the washington monument. and they constantly point out it's the tallest in the world. and then there's the north korean's version of the arc, larger than the one in paris. they're very proud of everything they show us, but we have no way of knowing if what they say is true. >> pyonyang was very surreal. it's a city without much going on. because the economic -- the international trade is just not there. and it's a bit of a -- a sad, yet beautiful place. bittersweet. >> at stores, i see lots of books slamming the united states, including this one. the united states imperialists starting the korean war. our first full day in pyonyang. but the next day will be critical. richardson will be meeting with north korea's chief nuclear negotiator, the man who invited him to visit this country, just as tensions on the korean peninsula are mounting. the whole world is watching right now. one miscalculation could cause a full scale war. >> still ahead, tough talk in the meeting with the north koreans. >> we're ready for either dialogue or war. >> the pressure's on to gloeshuate and -- >> i make my hands warm in front of the fire. >> the glimpse at life in pyonyang. why students wear their coats inside the classroom when wolf blitzer's "six days in north korea" continues. le to wake up in the morning on your own. that's a big 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[ male announcer ] get low prices on the latest 4g phones, starting at $28.88. save money. live better. walmart. it's saturday morning in the north korean capital. we drive back to the foreign min tri for a meeting with north korea's chief nuclear negotiator, the man who invited richardson here. thank you very much. thank you for letting me come here to north korea. >> first, i am very happy to be able to meet you, mr. wolf. i presume, had the same power as the american president. >> thank you very much for that compliment, but i don't think it's true. but it was very nice to hear from you. we hope that cnn will have an opportunity to come visit north korea on many occasions. >> i think you're the only one who has "the situation room" except president obama. >> thank you very much and thank you very much in the hotel where you're staying, you can watch cnn international, which is very nice to be able to see what's happening here in pyonyang watching cnn. >> this time you're here with governor richardson and next time, i'm inviting you to come to pyonyang again. >> thank you very much. i hope either this time or the next time, you and i could sit down for a cnn interview, our viewers in the united states and around the world would be grateful. >> why not. >> thank you. thank you. >> still, after the cameras are gone, the meeting itself is very intense. >> he started out fairly hard lined. basically saying there's an artillery drill that is being performed by the south koreans. united states won't talk to us. we're ready for dialogue or war. but then when i said to them, look, don't respond militarily. be statesmen. give me some arms control concessions such as allowing inspectors to come into the nuclear facility such as selling your fresh fuel rods to south korea to arms control measure, maybe a hot line between the militaries. give me something. give me a signal. he said, well i'm going to study these. >> he had an interesting blend of being able to be stern and serious while being respectful and giving them avenues to find a way through this crisis with some dignity. >> on this day, we again go from serious talks to sightseeing. this time, a visit to the national library. what's called the grand people's study house. i learn that talking with average folks in north korea, even if you speak korean as tony does, is not easy. >> because the people refuse to deal with you. they know that you are not friendly to them and so, they will maybe steal a glance, but they won't engage you. you might go up to somebody with a friendly face and try to strike up a conversation and they simply won't respond. >> at the entrance to the building, a huge statue of north korea's founder. sort of reminds me of the lincoln memorial in washington. we go to the music room where we see lots of old school boom boxes, people listening to music on headphones. we're here in the library and are listening to a beat box over here. ♪ it's a crazy world we're living in. next, a visit to the elite foreign language high school. >> thanks very much. >> we're here at the pyonyang foreign language school. it was really impressive to see these young kids. a lot of them are learning engli english. i was very impressed to see how advanced they are. >> i warm my hands in front of the fire. it means i make my hands warm in front of the fire. >> and because of the shortage of electricity, they're learning in the cold. >> children vus wore their coats. they could see their breath it was so cold, but they're diligent. >> what would you like to study? >> language. >> which language? >> of course, english and chinese. >> which do you speak better, english or chinese? >> english. >> and what languages to you study besides english? chinese, too, but you're english is better? would you like to visit the united states some day? >> yes, after learning english a lot. i want to go. >> richardson remembers one encounter with a young student. >> when we were at the school, the foreign language school and they were singing and it was a young man who asked me to come in and be photographed with the kids that were singing. and he smiled at me and they sang in english. that was something that drives me the most in other words, friendly towards american. he didn't know i was american. >> but the saber rattling the getting worse. the south koreans are preparing for a live fire exercise. >> there's real fear that a military exercise this weekend could spiral into all out war. our own wolf blitzer is in north korea with an exclusive assignment. >> richardson needs a good night's sleep. he'll be meeting with a top north korean general in the morning. the officer in charge of the dm zrk. if there's war, he'll lead a million man north korean army into battle. we're beginning to think of contingencies to get out fast if we need to. >> i was determined to find some alternate means of transportation out of the country. i thought it was that dangerous. rent a van or suv or truck or something to take us to the china border. >> with the u.n. security counsel about to meet on the crisis, sunday will be a critical day. >> coming up, two koreas on the brink of war. the most critical day yet. meeting with the military. when wolf blitzer's "six days in north korea" continues. ♪ making your way in the world today ♪ ♪ takes everything you've got ♪ wouldn't you like to get away? 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[ man ] still love that wind in my face! talk to your doctor. don't kid yourself about the risk of heart attack and stroke. if lipitor's been working for you, stay with it. lipitor may be available for as little as $4 a month with the lipitor co-pay card. terms and conditions apply. learn more at lipitorforyou.com. sunday morning, december 19th. as the two koreas stand on the brink of war, the units nations security counsel is getting ready to meet for an emergency session in new york. those nights, i wasn't sleeping well. especially this sunday morning. i did not have a good night's sleep. i really feared that this crisis could escalate into an all out war. but even in the depth of crisis, there are light hearted moments. my name is wolf. yeah. >> yeah. >> when i see the north korean girls ice hockey team, i can't help but join them with my hand held camera shooting away. for governor richardson, the much more serious business of meeting with major general, the commander of the north korean forces at the dmz. his job is to ensure the armistice holds. general pac seems to warm to richardson. other north koreans join the meeting. we're politely asked to wait outside. we know the meeting will go on for a while, so we walk down to the river. it's a serene, quiet morning here along the banks of the river in the heart of pyonyang. some kids are playing, couples are walking by. families are having a good time. but it's sort of misleading because it's anything but quiet on the korean peninsula. richardson's meeting with north korea military officers. this may be the most important meeting he's had since arriving. we're watching it every step of the way. the stakes, clearly are enormous. the meeting breaks up. the general is not backing down. he warns that if the south koreans go ahead with their exercise, the north h retaliate. >> it was a tough, sobering meeting and the situation was extremely tense. >> they said we need the world to knee that we're not the provokers and we will respond if this goes on. >> but the general is not closing the door on dialogue. >> he reacted openly to a couple of proposals that i made. one, a hot line between the two countries, north and south. to diffuse kris sis like this. secondly, military commission. united states, north korea, south korea, to monitor the disputed areas on the west sea. to find ways to prevent crisis like this. he was open to them. he didn't accept them. >> at this point, i'm getting very anxious. worried we'll be stranded in north korea. but even an international crisis of this magnitude is not enough to change the north korea's program of sightseeing for us. today's trip takes us into the country side. once again, we're the only car on the road. we're in the vehicle. we've just left pyonyang. we're on the road to an apple orchard. not exactly sure what we're about to see, but supposedly, it's a pretty impressive sight. with electricity scarce, there are no lights in the tunnels except for our car's headlights. it's pitch-black inside. we're here overlooking all of these fruit trees. it's like row after row after row. eventually once the time is right, you'll see a lot of apples and other fruit growing right behind me. >> thank you very much. >> the visit is well choreographed. our guides take us to a little cottage where we meet a woman and her grandson. inside, a picture of her great and dear leaders who we're told had visited this farm. unlike so many homes in north korea, this one has electricity. >> they have these bri quets to put in their furnaces. those are the lucky ones. the grandson was quite curious about our cameras, so i gave him my camera, so he could start taking pictures, which he really liked. >> back in the city, i had another scare. at one point, i go out into the lobby and i see a tv on the screen and i'm with my handler. it looked like they broke away from some oprah and go into some militaristic music. i say, oh, i've been to totalitarian regimes. when they go into that kind of music, that usually is a signal to their people, get ready, we're about to go to war. what if they close the airport? we'll be stuck in north korea. that night, we have dinner with a vice foreign minister. >> i think is a good sign that they are putting people up who are able to engage the world. i was very much impressed with it. >> the next day, richardson will meet with north korea's vice president. he'll get make his case for restraint, but time is moving slowly. i'm at sunday night, we're afraid his efforts will be too late. the clock is ticking toward the start of the south korean live fire exercise. >> ahead, count down to a standoff. >> by that point, i was ready to get out of dodge. >> the world focuses on north korea as the group gets trapped in pyonyang. wolf blitzer's s"six days in north korea" continues in a moment. fantastic. ♪ this holiday, chevy's giving more. now qualified buyers can get 0% apr for 72 months on a 2011 chevy silverado. or 0% apr financing for 60 months plus no monthly payments until spring. ♪ thousand the united nations security counsel the meeting on the crisis. >> south korea has promised to begin military drills at any time and north korea has warned it will retaliate if they do. the u.n. security counsel today seemed powerless to stop it. >> six hours of taubs in new york end without action. >> unable to agree on a security counsel statement regarding hostilities on the korean peninsula -- >> at the pentagon, a state of high alert. any hostilities could quickly involve the 28,000 u.s. military personnel stationed in the south. >> the pentagon is maintaining communications with south korea and ready to weigh in in the hopefully unlike event hostilities break out, but that effort is really aimed at trying to keep south korea and both sides from escalating any action to keep any military hostilities if occurring. several u.s. military analysts say the problem is it's just so hard to read north korea's intentions at this point. >> the defense department, so worried that mike mullen, chairman of the joint chiefs of staff, spend sunday evening in the command center deep inside the pentagon, monitoring the explosive situation. in pyonyang, 14 hours ahead of the east coast, it's already monday morning. as the south koreans prepare for their military exercise, bill richardson prepares to meet with the vice president at the people's assembly. it's really a majestic, huge structure. i get the feeling that the only people inside were the people participating in the meeting with governor richardson and those of us covering the meeting. look at this parking lot. pretty empty. just a few official cars. one thing that was impressive, it was warm. they were heating some of those halls, which is unusual because a lot of times in this huge structures here in pyonyang, it's freezing cold. they don't have a lot of electricity and use it sparingly. but at least this time, it was warm. >> i'm very happy to meet my old friend. >> the meeting is in a huge room. richardson brings gifts from new mexico. five films made there. the dear leader likes movies. the talks last 90 minutes and very soon afterwards, i'm on live with cnn's don lemon. >> wolf, what are you seeing and hearing there? >> the governor just wrapped up a very important meet wg the vice president of north korea. it was over at the people's assemb assembly. i was there and watched him go in. it was a large, north korean delegation. he followed that up with the private meeting with the the vice minister. i don't know what the north koreans are saying, but he seemed to suggest he got some initially positive responses to some of the proposals he's been making. he's been working here for four or five days now to get this thing under control. it's as he says, a tinderbox and it's a very sensitive situation. everything we've heard from the north korean side points toward a quick response if the drills go ahead. the north korea state news agency has promised quote, brutal consequences beyond imaginatio imagination. >> in our meetings, they promise massive, swift, retaliation on a huge scale. there can be no forgiveness for these exercises, according to the general. the language was very, very tough and so, much tougher than i have ever seen from the north koreans. and so, i was scared, yes. >> it's certainly not a good time to be in pyonyang, but the show must go on. and our host want to show us the subway system. the escalators are so long, you can't see the bottom from the top. but the choice of this sightseeing destination may not be so random. the subway system doubles as a bomb shelter. we're here at the prosperity subway station. it's deep underground. we're really, really deep underground and patriotic pictures all over the place. do people pay? i didn't see -- how much is that? in u.s.? >> oh, it's very little. to a dollar now -- >> five cents. >> but most people use six-month passes, which they buy for about 100. >> a dollar. they can basically ride for six months. a pretty good deal. we're moving now. it's pretty smooth. everybody's well behaved. everything is very cool. after lunch, we go to a factory, where they make silk thread. some 2,000 women work there. only women. no men. after that, we're looking forward to finally leaving north korea. supposed to leave on that monday. by that point, i was ready to get out of dodge because i was afraid if we didn't leave then, who knew what would happen the next day. >> yes, i thought they would cancel the few flights they operated there every kaday. >> but it isn't the threat of war, it's the weather. thick banks of fog roll in and send us back to the hotel once again. there's nothing else to do but sing the night away in the hotel's karaoke bar. ♪ will you still need me when i'm 64 ♪ though in the back of our minds, fear. >> we would have probably had to find somebody and pay through the nose to find somebody to drive us six or seven, eight hours to the china border. >> i thought another way would be to go to the demilitarized zone, from pyonyang, a couple of hours away and seeing if we could leave by vehicle. cross the dmz and into south korea, but that is a very for the north koreans, that is a very unusual way to let individuals leave, especially foreigners, especially americans. >> what would happen next? how would we get out of north korea? >> next, the most frightening day yet. >> all of a sudden, boom, boom. boom. >> the shelling begins and the world waits to see what north korea will do next. 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[ male announcer ] ask your doctor about cymbalta. imagine you, with less pain. cymbalta can help. go to cymbalta.com to learn about a free trial offer. the entire world is watching the korean peninsula as the south koreans begin their promised live fire military drills, involving ships, fighter bombers and shelling into the disputed waters. the shelling continues for 94 minutes. to our who, we can hear some of those it wasn't that far away from that island where we were. and all of a sudden, boom, boom, boom. we started hearing some -- in the distance, not loud, some shells. and i looked at the north korean adviser to governor richardson, he looked at me and we knew what was going on. >> when we heard these booms in the distance, four or five of them, and thought at one point that maybe that was the very shelling that had started. that was the most frightening moment. >> in the south, they're bracing for retaliation. >> the government issued a "take cover" order for five border islands, affecting some 8,000 civilians on those islands, telling them to get into bunkers. bunkers that could withstand any sort of missile attack from the north. >> what was going through my mind were all the kids, the north korean children, the south korean children, the civilians. i really feared that tens of thousands of people were potentially going to be killed. we're sure the north is about to respond to south korea's military drills with firing of its own. i was horrified by that notion. at the same time, even though i suspected if there was an escalation and a war, it would be a good place to be in pyongyang to report on it. but i also immediately suspected i wouldn't be able to get out and they wouldn't let me make any phone calls so i'd have the worst of all situations. a horrible war and not being able to report on cnn what was going on because they would keep me silence. the north koreans are crafting their next move and it's a stunning surprise. late that' evening, the supreme command of the people oes army issued this statement, we felt it was not worth reacting one by one to military provocations, it says, dismissing the south korean drills as childish play by fire. >> and i said, my god, this is great. this is good news. maybe we had an impact. something's happening there. >> at the end of the day, a region that today was poised at a possible miscalculation tipping this country into a war and the region right with it, south korea's president saying the drills were justified, fair and successful. >> we were just so excited. we were high-fiving each other. we were really delighted that it looked like, you know what, this crisis was easing. with the crisis over, we're finally able to head home. coming up, the ripple effect from the tense showdown. and what's next for the korean peninsula? when wolf blitzer's "six days in north korea" continues. , hey, h. i can see who's on my network people! lance? lance? yes, yes you are next. all right. dave, i'm in. ♪ katie! what are you doing, sweetheart? supplementing my allowance. how long have we been gone? 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[♪...] >> male announcer: book now, save up to 65%. call 1-800-sandals. in six days, we just skimmed the surface of north korea. there was so much we were not allowed to see, especially in rural areas much poorer than pyongyang. i'd like to think that richardson's visit had a positive impact. so would he. >> i'm not going to take credit for stopping a war. but i will say that we were at the right place at the right time with the right message. don't react militarily, find ways that you can reengage, make some gestures, here are some that i suggest. and they did it. and ever since our trip, the north korean statements have been towards negotiation, towards engagement. and i believe the united states and south korea are now hopefully going to consider that. >> the way to think of that is that the north koreans used our trip and our extending invitation to visit north korea to have somebody on the scene and then turned it around once the tensions began to escalate and looked like they were going to go out of control, to use our presence to try to make a point, that point being a message to the u.s. that they wanted to talk, they wanted to get back to the table and sit down with the u.s. >> it seems the north koreans had a strategy from the beginning. using the threat of all-out war to reopen the door to negotiations. that's the view of jim walsh, a korea expert at m.i.t. >> i think one of the clues here was that the fact that the north koreans did invite governor richardson and yourself to come to north korea. i think that made it less likely that they were going to do something in the middle of that visit. more importantly as i understand it, governor richardson got some important pledges from the north korean government, not the least of which would be to allow international atomic inspectors back into america. >> he briefed officials from south korea, china and japan. >> my job in our division of labor has been to brief the other governments. >> richardson's bottom line is that north koreans need and deserve to be brought into the world community. >> they're poor and many, they say, in rural areas are starving. and so i think for the sake of humanity, these are people that are not political. they're like the average human being that i think deserves from their government better treatment and deserves from the international community an ability to help, to be fed, to be clothed, to be educated. >> there's no doubt that life there is harsh. the state department says human rights abuses include arbitrary and lengthy imprisonment as well as torture. but tony, who's been there 40 times going back to 1990, says things are changing. >> i would say that the biggest myth out there is that the north koreans are desperate, hungry extortionists in trying to get food and energy all the time and will never change. this is patently absurd. north korea has changed enormously in the 20 years i've been traveling there. not nearly enough. we need to prod it to make further changes. >> we certainly did not have unrestricted access. but we did get a glance into a country that is largely unknown to the outside world. i think we only touched the surface in north korea. we got a glimpse. we didn't get really deep inside because we couldn't. we saw pyongyang. we saw a little bit of the countryside. we met with the top leadership. we got a flavor of what's going on during those six days. i don't want to overexaggerate our access or anything like that. we got a taste of north korea. as i'm leaving the country, i'm told the north korean leadership likes marlboro, camel and parliament cigarettes. goodo