a visit by the south korean president overshadowed by the unfolding international drama surround i surrounding an alleged iranian terror plot. for the first time, president obama spoke at length about what the united states maintains was a plan to assassinate the saudi ambassador to the united states here in washington, d.c. let's go straight to jessica yellin. jessica, the president was asked about the links to the iranian government. what did he say today? >> he declined to say the highest levels of the iranian government had knowledge of it. he would not say that the nation's supreme leader or president was aware of it. >> i don't think the problem here jessica is that i have not been unwilling to negotiate with republicans. i've shown repeatedly my willingness to work overtime. to try to get them to do something. he had direct links. was paid by and directed by individuals in the iranian government. now, those facts are there for all to see. and we would not be bringing forward a case unless we knew exactly how to support all the allegations that are contained in the indictment. we believe that -- if even if at the highest levels, there was not detailed operational knowledge, there has to be accountability. with respect to anybody in the iranian government engaging in this kind of activity. >> wolf, he went on to say that the u.s. government is using the evidence it's gathered to talk to international partners, pressure then to ratchet up pressure on and isolate iran. >> we'll have more on what the u.s. is doing towards iran rigts now, but you had a chance and played that clip inadd ver tantly. you asked the president about the jobs bill that he got defeated in the united states senate this week. what did he say? >> he's been saying he's going to ask congress to break up the bill and vote on pieces of it. he declined to say which piece, but i did ask whether he would invite republicans over to the white house for a sit-down with them to negotiate on a bill that they could agree on. on something they could get done to get jobs started now. here's what the president said. >> i don't think the problem here, jessica, is that i have not been unwilling to negotiate with republicans. i've shown repeatedly my willingness to work over time, to try to get them to do something to deal with this high unemployment rate. what we haven't seen is a similar willingness on their part to try to get something done. >> now, senior administration officials have said they expect the likeliest pieces of this package to pass, the extension of unemployment insurance and the payroll tax. >> let's get back to the alleged iranian plot. jill daugherty is over at the state department. the obama administration at least seems to be partially on the defensive in explaining this plot, especially making the case internationally. what do you know? >> we know that the secretary and other top officials here at the state department are on the phones. they've been talking with officials high up officials from other countries, making that case. also, up at the united nations. susan rice, the ambassador to the united states, has been meeting with members of the u.n. security counsel. we understand those meetings are over and she has been doing the same thing. essentially, explaining how serious ly the u.s. the u.s. views this. these are countries that want more information. we're told that the state department offered to do it right from the beginning and several countries have taken them up on id and specifically, we have china has wanted more information on that. you can imagine because china has a lot of trade and economic interest with iran. russia is the next one. ditto on that. they have a lot of economic interests and finally, the last would be turkey, which would be a major player in the world. these teams, we're told are made up of senior officials. how it was supposed to have gone down and how the case was made by the government. >> jill, you know, here's what i don't understand, the target of this alleged plot was saudi arabia's ambassador here in washington and the reaction at least so far from the saudis, they've condemned what's going on. they seem to believe everything that the obama administration is saying, but they have not yet recalled their ambassador from tehran. they still have full normal diplomatic relations. is that about to change? >> you know, they are i think preparing to do something the indications are they will, but specifically, what is not clear, they are studyi ining it very carefully, looking at the evidence and you can imagine they would want to do something, but they have to be very careful. the biggest relationship in that region between saudi arabia and iran and they have to do it correctly, wolf. >> but do they believe the saudis that the iranian government tried to kill the ambassador? >> they're been very careful about what they're saying. they were thankful to the united states. there's been a lot of diplomatic speech on that. but at this point, publicly, at least, they're not saying exactly what they think. they're saying we're going to look at the evidence. >> so, as far as the u.s., what's the next step? >> well, the next wup would be what do you do and that is sanctions. and the united states already has taken sanctions. the next thing and we heard this from the administration today at the senate banking committee. they're making the case that the sanctions that were put in place a year ago are working. let's listen to david cohen, the treasury under secretary, who deals with terrorism and these issues. >> iran's shrinking access to frad finance has made it difficult for iran to pay for i imports and receive payment for exr ports. iran's central bank has been unable to halt the steady erosion in the value of its currency. and iran has been increasingly unable to attract foreign investments. especially in its oil fields. leading to a projected loss of $14 billion a year in oil revenues through 2016. >> so next targets could be the central bank of iran. there are number of senators up on capitol hill who would like to do that. they want to have tripling sanctions to really cut them off and in some cases, they say collapse the iranian currency. the next step is oil. oil is 50 to 75% of the income iran gets and if you target that, pushing other countries to simply do not deal with iran. what specifically they'll do, wolf, they are still planning that you can expect there would be more and wendy sherman, the new under secretary of state was saying nothing should be off the table. >> jill, thanks very much. it will be fascinating to see how far the saudis go in underscoring their anger at iran. we'll see if they recall their ambassador from tehran and sever all commercial ties. we'll see how seriously they take the u.s. allegations against iran. meanwhile, $707 billion is the pentagon's budget this year, considered by some to be a black hole of federal spending. today, leon panetta promised lawmakers to show in detail how those billions are spent. he faces mandatory cuts to his budget if congress can't agree on other cuts before thanksgiving. >> i truly believe that we do not have to make a choice. between fiscal security and national security. but to do that, to do that, will require that we have to make some very tough choices. >> our pentagon correspondent, barbara starr, found the u.s. army already making some tough budget choices. >> everything for war is for sale here. military assault weapons, the latest ammunition rounds, missiles, drones, the newest off-road vehicle for special forces, complete with weapons on board. hundreds of frantic defense contractors are scrambling knowing congress is about to slash military spending in the coming weeks. >> right now, you're tech book is a little thinner than it used to be cht. >> right. >> we spoke to army chief of staff. >> will you be able to deter those or want to do things knowing we wouldn't be able to deploy a large enough army. >> he worries the military faces $600 billion in mandatory cuts that could make the u.s. vulnerable. >> i think it will fundamentally have an impact on all the services, specifically the army, and our ability to provide security. >> business wants to military to keep buying. competition is so tough these days amongst military contractors. this company is keeping some of their best gear behind closed doors. this is their proposed new vehicle to replace the humvee. nothing may be more crucial for saving lives than finding a new humv humvee. replacement vehicles would protect troops better, but it's big money. 50,000 new ones would cost as much as $50 billion. bea systems let us sit in their proposed new vehicle for that contract competition. >> this is already meiered in controversy because of the spending issue right now. and the budget crunch. this is a big program. >> and because of the perceived cost of the program, the question is just one of affordability. >> so, in the case of the hum view, the army may just upgrade the current hum view one more time for about half the cost. kevin of textron systems says saving money is something everyone relates to. >> rather than buy a new utility vehicle, we want to refurbish and improve the ones in the industry. that is remodeling the house twice buying a new house. >> the army has born the brunt of ten years of war. xanders agree, it's time to downsize. time to trim. they just don't want to trim too much. there's an awful lot on that floor they'd like to buy. >> they're going to have to start cutting all throughout the federal budget and the u.s. army is about 20, 21% of the d.o.d. overall. so the navy, is air force, the marine corp., all are going to be cutting assuming the budget constraints continue. thanks very much. a top executive at "the wall street journal's" european edition is stepping down as the scandal heats up. and my interview with rick santorum. i'll ask him about the alleged plot to kill saudi arabia's ambassador to the united states. we'll also talk about the republican race for the white house and much more. there's only one bottle left ! i've got to tell susie ! the vending machine on elm is almost empty. i'm on it, boss. new pony ? sorry ! we are open for business. let's reroute greg to fresno. growing businesses use machine-to-machine technology from verizon wireless. susie ! the vending machine... already filled. cool bike. because the business with the best technology rules. ♪ and the flowers and the trees ♪ ♪ all laugh when you walk by ♪ and the neighbors' kids run and hide ♪ deep inside you, there's a person who refuses to be kept deep inside you. ♪ but you're not ♪ you're the one be true to yourself. what's healthier than that? looking at live pictures of the president of south korea. he's here on official state visit to the united states. the president of south korea formally invited by the president of the united states and estate dinner tonight. now he's addressing a joint meeting of the united states congress, the house and senate underscoring the u.s.-south korean relationship. also, praising the u.s. congress editi decision yesterday to approve a new free trade area agreement. we're monitoring the president's address before a joint meeting of the u.s. congress. we'll bring you some highlights later. meanwhile, another scandal rocking repurt murdoch's media empire. this time, the allegations are against t"the wall street journa journal"'s european edition. richard, this scandal seems to have two parts sh doesn't it? >> it does. and they are connected. the first part wolf concerns "the wall street journal" europe's circulation. and the allegation that the journal paid a third party, a company called executive learning partnership, to take the paper and then sell it at a deeply discounted price of a couple of cents a copy. in other words, the journal was literally paying somebody sto buy the paper thus to boost its circulation numbers. now, related to that allegation is the suggestion that the journal promised elp favorable coverage in a couple of articles for doing this deal, this back scratching deal to boost circulation. as a result of that lack of ethical breach, "the wall street journal" europe publisher has resigned, so you definitely have the sense something was off in the circulation department and that's why the abc is going back to look at the numbers from a couple of yearses ago! what is "the wall street journal" saying about all of this? >> first of all, he's gone and seems to be an admission of the ethical breaches, but on the circulation, the journal says the story from the guardian newspaper which broke it is full of untruths and full of malign interpretation. that's a posh way i think of saying one newspaper beating up on another. >> what are the chances that rupert murdoch himself may have known anything at all about this? >> very slim. "the wall street journal" europe, "wall street journal" is of course the jewel in the news corp. crowd, but the european edition sells less than 100,000 copies a day. it's prestigious. very much part of what they want to be about in europe. but nobody is really frankly suggesting that mr. murdoch himself had any news of this particular allegation, which must be admitted and said. so far, the journal is saying they did nothing wrong. >> richard quest in london for us, thank you. richard, it's the deadliest shooting rampage that ever happened in orange county, california and now, we're learning more. and protesters occupying wall street, they are saying no. no to the new york city mayor, michael bloomberg. what he asked them to do. we'll have details coming up. i'm not a number. i'm not a line item on a budget. and i'm definitely not a pushover. but i am a voter. so washington... before you even think about cutting my medicare and social security benefits... here's a number you should remember. 50 million. we are 50 million seniors who earned our benefits... and you will be hearing from us... today and on election day. ♪ [ male announcer ] its design inspires. its power impresses. it's thin, light and built without compromise. but mostly, it acts like my personal assistant on set. unlike my real assistant who isn't quite as thin, light or powerful. ♪ he's right there, isn't he? designed with the 2nd gen intel® core™ i5/i7 processors, performance you need, style you want. visit dell.com this week and check out our october signature event for great offers on our best systems. the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projects in the world. enough power for a city the size of singapore for 50 years. what's it going to do to the planet? natural gas is the cleanest conventional fuel there is. we've got to be smart about this. it's a smart way to go. ♪ wall street protesters say they're not going anywhere. and lisa sylvester is nmonitorig that. >> the occupy wall street movement says it won't believe so that the park can be cleaned up. michael bloomberg has asked protesters to leave the area by tomorrow morning. bloomberg says there is a concern about unsanitary conditions, but the protesters say this is an effort to force them out and they would be willing to clean up the park themselves. the park's owners say protesters can return once it's cleaned if they follow the rules. a custody battle may have led to the deadly shooting in california yesterday. eight were killed. the suspect's ex-wife, a stylist at the salon, is reportedly among the dead. ktia reports the suspect and his ex-wife were involved in a custody battle over their son. and french prosecutors have dropped an attempted rape complaint against dominique strauss-kahn. they say there's a lack of sufficient evidence. a journalist says he tried to rape her in 2003. strauss-kahn had admitted to sexual aggression at the time. he returned to france after charges were dropped against him in new york. >> ktla. don't want to get our affiliates upset. a law that has both families prepared to flee the state of alabama. why the obama administration is trying to block it. also, the surge of republican candidate, herman cain. james carville and david fromme will talk about that and more in our strategy session. exclusive to the military. and commitment is not limited to one's military oath. the same set of values that drive our nation's military are the ones we used to build usaa bank. from free checking to credit cards to loans, our commitment to the military, veterans, and their families is without equal. ♪ visit us online to learn what makes our bank so different. usaa. we know what it means to serve. delivering mail, medicine and packages. yet they're closing thousands of offices, slashing service, and want to lay off over 100,000 workers. the postal service is recording financial losses, but not for reasons you might think. the problem ? a burden no other agency or company bears. a 2006 law that drains 5 billion a year from post-office revenue while the postal service is forced to overpay billions more into federal accounts. congress created this problem, and congress can fix it. i've tried it. but nothing's helped me beat my back pain. then i tried this. it's salonpas. this is the relief i've been looking for. salonpas has 2 powerful pain fighting ingredients that work for up to 12 hours. and my pharmacist told me it's the only otc pain patch approved for sale using the same rigorous clinical testing that's required for prescription pain medications. proven. powerful. safe. salonpas. that's not how successful investing is done. at e-trade it's harnessing some of the most powerful yet easy to use trading tools on the planet to help diversify, identify opportunities, take action. it's using professional grade research and your brain to seek maximum returns to reach your goals. it's investing with intelligence and cold hard conviction. you made the money. you should have everything you need to invest it. e-trade. investing unleashed. according to one poll, herman cain is now the front-runner among the republican presidential candidates. we'll talk about this and more in our strategy session. joining us, the democratic strategist, james carville. david fromme is joining us as well. not necessarily along time friend of the clintons. he does write for frommeforum.com. a former speech writer for president bush. erin burnett had a chance to speak with herman cain. listen to this. >> you talk and money that you haven't raised as much as your rivals. mitt romney said he raised 11 million, rick perry, 17 million. your numbers, can you tell us what they're going to come to? >> r for the quarter, we will report first of all, no debt. you see, i run this very tight like a start-up business because that's my nature as a business man. and we are going to have, we will report at the end of the quarter several hundred thousands of dollars of cash on hand. within the last few weeks, our fund raising has really picked up. >> the interview later tonight, 7:00 p.m. eastern. james, how important or not so important is money in a republican contest or democratic contest even? >> it really doesn't matter between now and iowa. herman cain is not going to be the republican nominee. this is not about herman cain. it's about mitt romney. it was about michele bachmann. this is all about a lot of the republican -- he doesn't have any intention, headquarters and that kind of stuff and i respect him for that. by the way, so far, it's working pretty good for him. >> it is pretty amazing, david, when you think about it, look how well he's doing in this new pol poll. >> he's occupy iing the donald trump memorial chair. the real story of this race has been as james said, there are a lot of republicans who want somebody more radically cons