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he has three words of advice today for the obama white house to try to salvage the party's chances of victory in 2012. those words, "fire, indict and fight." james carville is joining us now. james, you created quite a stir in this article you've written for cnn.com. let me read a couple of lines. among other things you say, "what should the white house do now? one word came to mind, panic. this is what i would say to president barack obama. the time has come to demand a plan of action that requires a complete change from the direction you are headed." what are you talking about? >> ...

>> reporter: congressman, i have two, i want to follow up on something you said. so medicare, more than jobs is the defining issue of the next election, or is this specifically for house races? and second, can we ever expect medicare reform ever to happen if no matter what party tries to deal with it, it's going to get demagogued by the other side? doesn't this mean that basically both parties will throw up their hands over time and say, well, we can't touch it because no matter what, it cost democrats congress, and you guys clearly believe it's going to cost republicans. >> chuck, on your sec...

In we all agree that is the reality on the ground. it is one thing when mid-level diplomats say that quietly behind the scenes and that is the assumption. it is quite another when a commander in chief talks about pre-1967 boundaries. those words from a commander in chief have consequences and that is now america's starting position. i don't think anybody in aipac was shocked by the realities of what the president said, i think they were shocked that he said it. and would have wished he had not. >> i understand after the joint press conference the president and netanyahu had, the white house, t...

You are sort of hard pressed to say are what's been the big explosion in spending here? this is what the republicans jump on, the reality was, there was an increased spending associated with the recession, unemployment benefits and programs like that because of the recession. there hasn't been this crazed rush of spending. there certainly are areas we could cut, and i would highlight the military budget. that's in the area, and president obama did propose some cuts, i would like to see more there. but the idea that you have to have $3 cuts in spending for every $1 in taxes, that has us all wor...

Every $1 in tax increase. you are sort of hard pressed to say are what's been the big explosion in spending here? this is what the republicans jump on, the reality was, there was an increased spending associated with the recession, unemployment benefits and programs like that because of the recession. there hasn't been this crazed rush of spending. there certainly are areas we could cut, and i would highlight the military budget. that's in the area, and president obama did propose some cuts, i would like to see more there. but the idea that you have to have $3 cuts in spending for every $1 in ...