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In massachusetts and george h. w. bush set the stage for a balanced budget in the '90s, not only given up on their old policies but their successful policies, too. >> look, i think that point is inaable. the point i always make, the spectrum has obviously shifted before our eyes. simon, let me ask you about that, you put in civil liberties, too that is even worse. right now, god, we are authorizing dropping bombs on top of united states' citizens without a trial from predator strikes? i mean, if reagan did that, people would have gone ballistic works have been crazy works have been unthinkable...

>> but officials in washington say the attempted negotiations are not bearing any fruit and pakistan is actively trying to undermine them. u.s. drone strikes in the tribal areas resumed with two strikes in the past 24 hours but a recent analysis by the new america foundation found that of the hundreds of militants killed by u.s. drones last year, only two were on the u.s. most wanted list. >> u.s. agencies fired 118 predator missiles into pakistan last year, each missile costs about million dollars. they say focusing on high value targets misses the point, adding that no civilians were killed ...

A balance. >> is the balance okay as far as you can see, or should we draw back? >> as i see it right now the balance is okay. there are a lot of other issues going on in pakistan that are causing distress, not just predator strikes. the rise of islamic extremism in pakistan is disturbing to me. the fact that the government isn't as secure as it ought to be, the fact that the military seems unable to move into these areas and secure them and get rid of the taliban so perhaps these strikes wouldn't be necessary, so it is not just the predator strikes that are causing the trouble in pakistan. it...

Population, and i think our military commanders and our political leaders, our diplomatic leaders, have to make a balance. >> is the balance okay as far as you can see, or should we draw back? >> as i see it right now the balance is okay. there are a lot of other issues going on in pakistan that are causing distress, not just predator strikes. the rise of islamic extremism in pakistan is disturbing to me. the fact that the government isn't as secure as it ought to be, the fact that the military seems unable to move into these areas and secure them and get rid of the taliban so perhaps these st...

>> oh, i think it is. if the war in afghanistan continues indefinitely, if the predator strikes continue, if the pressure continues and the economy continues to decline in pakistan, we could see that country go over in the problem of 100-plus nuclear weapons. >> greg: and the wikileaks, how much damage in your judgment has that done? >> it's done a lot of damage. they named sources. they narrowed it down sources. i think our intelligence is a huge setback. there should be an investigation inside the pentagon, how they got so sloppy to allow this to be copied onto cds and puts on the internet. ...