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and the lead economic adviser. and then mark sandy to tell us whether a deal with save the u.s. credit rating, and finally presidential politics. candy crowley in iowa with candidate, tim pawlenty. >> you can be both strong and pleasant and nice. those are not contradictory things. >> i am gloria borger in for candy crowley, and this is st e "state of the union." mitch mcconnell yesterday demanded that president obama get personally involved in the debt talks and he soon got his wish, and now there are reports this morning a plan is near. mitch mcconnell, thank you for being with us....

increases are a job killer, particularly when you have over 9% unemployment. >> norm orn steen, that is disingenuous to say the least, that he realized they were a job killer, why he extended the bush era tax cuts. there's one reason only the president extended those bush era tax cuts and that's because he needed a deal to extend unemployment. this is the kind of misinformation campaign that is continuing on capitol hill. i sent out a tweet a couple of hours ago, i said, could anybody, anybody provide me with research, not opinion, but research that tax increases kill jobs. please se...

bipartisan plan would increase the debt limit through the end of next year, beyond the election. cuts and spending caps are still on the table. and house speaker john boehner apparently is planning a conference call sometime soon with house members. so we have up to the minute coverage of what's happening in washington. cnn's kate bolduan is on capitol hill. dan lothian at the white house. let's begin with you, kate. senate leaders in both parties say they are, quote, very close to a deal. we know they are still negotiating. what have you been able to find out about? what is in this ...

could it still fall apart? we want to welcome our viewers in the united states and around the world. i'm wolf blitzer. you're in "the situation room". it's been a day of dramatic changes in washington's debt crisis. within the past few hours capitol hill's angry partisanship gave way to serious negotiations, and then to predictions of an agreement within the very near future, one top republican, the senator minority leader mitch mcconnell declared and i'm quoting, he's confident and optimistic. moments ago harry reid seemed to throw some cold water on the new found optimism. rets go ...

progress. democratic senate leader harry reid and republican senate leader mitch mcconnell on the senate floor moments ago. look. >> today the speaker republican leader held a press conference to announce they're in talks with the president and that a bargain to raise the debt ceiling is in the works and is close. in president, members of the senate, that's not true. i just spent two hours with the president, vice president, and leader pelosi, and it's fair for me to say that the engagement there is not in any meaningful way. the speaker, republican leader should know that merely say...