PBS NewsHour; February 21, 2012 3:00pm-4:00pm PST

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Brown: PRICES AT THE PUMP HAVE SPIKED UP, FUELING ECONOMIC FEARS AND CAMPAIGN CHARGES. GOOD EVENING. I'M JEFFREY BROWN.

>> Woodruff: AND I'M JUDY WOODRUFF. ON THE NEWSHOUR TONIGHT: WE EXAMINE WHAT'S CAUSING THE HIKE IN GAS PRICES AND ASSESS G.O.P. ACCUSATIONS AND THE OBAMA ADMINISTRATION'S PUSHBACK.

>> Brown: THEN WE LOOK AT THE NEWEST BAILOUT DEAL FOR GREECE AND ASK WHETHER AUSTERITY IS HELPING OR HURTING TROUBLED EUROPEAN NATIONS.

>> Woodruff: MARGARET WARNER GETS A SNAPSHOT OF CAMPAIGN FUNDRAISING AS THE CANDIDATES AND BIG DONORS FILE FINANCIAL REPORTS.

>> Brown: FROM SOUTHERN THAILAND, KIRA KAYE REPORTS ON RELIGIOUS TENSIONS BETWEEN MUSLIMS AND BUDDHISTS. .

>> ONE OF AMERICA'S BIGGEST ALLIES IN SOUTHEAST ASIA, THAILAND HAS SEEN ITS SHARE OF TURMOIL BUT THE CONFLICT IN THE COUNTRY'S SOUTHERN PROVINCES HAS PROVEN THE MOST DEADLY AND PROTRACTED.

>> Woodruff: AND WE TALK WITH AUTHOR ROGER ROSENBLATT ABOUT THE DEATH OF A LOVED ONE AND THE SOLACE OF A "KAYAK MORNING." ERE I REALIZED WHAT A GOOD PLACE IT WAS TO FEEL SECLUDED, SOLITARY, AND IN TOUCH WITH SOMETHING. I NEEDED TO BE IN TOUCH WITH SOMETHING BECAUSE I WANTED TO UNDERSTAND THE NATURE OF GRIEF.

>> Brown: THAT'S ALL AHEAD ON TONIGHT'S NEWSHOUR. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> THE WILLIAM AND FLORA HEWLETT FOUNDATION, WORKING TO SOLVE SOCIAL AND ENVIRONMENTAL PROBLEMS AT HOME AND AROUND THE WORLD.

>> AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Woodruff: THE PRICE OF OIL ON WORLD MARKETS CLIMBED AGAIN TODAY, CLOSING ABOVE $106 A BARREL. THAT AND THE RISING PRICE OF GAS AT THE PUMP PROVIDED POLITICAL FUEL FOR REPUBLICAN PRESIDENTIAL HOPEFULS. JUST AS THE U.S. ECONOMY SHOWS SIGNS OF STRENGTHENING, THE PRICE OF GAS IS STARTING TO HIT AMERICAN DRIVERS WHERE IT HURTS... AGAIN.

>> IT'S CRAZY. IT'S EXPENSIVE. IT'S GOING UP AND UP.

>> IT'S RIDICULOUS.

>> Woodruff: THE AVERAGE PRICE FOR REGULAR REACHED $3.58 A GALLON THIS WEEK, ACCORDING TO THE ENERGY DEPARTMENT. THAT'S UP ABOUT 40 CENTS FROM A YEAR AGO, WITH MOST OF THE INCREASE COMING SINCE NEW YEAR'S. NOT SURPRISINGLY, IT'S BECOMING AN ISSUE AGAIN IN THE PRESIDENTIAL CAMPAIGN, WITH REPUBLICANS BLAMING PRESIDENT OBAMA'S ENERGY POLICY.

>> HE HASN'T TAKEN ADVANTAGE OF OUR OIL RESOURCES AS HE HAS FAILED THE ONLY NO-BRAINER DECISION I CAN RECALL A PRESIDENT FAILING IN QUITE SOME TIME, WHICH IS TO SAY NO TO THE KEYSTONE PIPELINE.

>> I BELIEVE IF WE GO ALL-OUT IN CREATING AMERICAN ENERGY INDEPENDENCE, WE'RE GOING TO GET GASOLINE DOWN TO BETWEEN $2 AND $2.50 A GALLON. IT WAS $1.13 ON AVERAGE THE FOUR YEARS I WAS SPEAKER. IT WAS $1.89 WHEN BARACK OBAMA WAS SWORN IN.

>> Woodruff: OBAMA ADMINISTRATION OFFICIALS CITE AN ARRAY OF CAUSES, INCLUDING IRAN'S DECISION TO CUT OFF OIL EXPORTS TO FRANCE AND BRITAIN; AND WITH IMPROVING ECONOMIES, GROWING INVESTOR SPECULATION ON THE SURGING PRICE OF PETROLEUM. WHITE HOUSE PRESS SECRETARY JAY CARNEY SUMMED UP THE SITUATION AT A BRIEFING TODAY.

>> THERE ARE NO MAGIC SOLUTIONS TO RISING OIL PRICES AND THE PAIN THAT AMERICANS FEEL AT THE PUMP. THIS IS... THE FACT IS, THE PRESIDENT IS VERY AWARE THAT THE... OF THE IMPACT THE GLOBAL PRICE OF OIL HAS ON FAMILIES. THE FACT IS THAT AMERICAN OIL PRODUCTION IS AT IT'S HIGHEST NOW THAN IT HAS BEEN IN EIGHT YEARS. MOREOVER, AND THIS GOES TO OUR ACTIONS, OVER THE PAST THREE YEARS, WE'VE OPENED MILLIONS OF NEW ACRES FOR OIL AND GAS EXPLORATION.

>> Woodruff: FOR NOW, PRICES ARE EXPECTED TO KEEP RISING, WITH THE AVERAGE TOPPING $4 A GALLON AGAIN THIS SPRING. FOR MORE ABOUT WHAT'S BEHIND THE RUN-UP IN OIL PRICES AND THE POLITICAL IMPLICATIONS, I'M JOINED NOW BY: JOHN KILDUFF, AN OIL ANALYST AND FOUNDING PARTNER AT THE NEW YORK-BASED HEDGE FUND AGAIN CAPITAL; AND MICHAEL SHEAR, POLITICAL CORRESPONDENT FOR THE NEW YORK "TIMES" AND CHIEF WRITER FOR THE NEWSPAPER'S POLITICAL BLOG, "THE CAUCUS." THANK YOU BOTH FOR BEING WITH US. JOHN, TO YOU FIRST. WHY IS THE PRICE OF OIL GOING UP RIGHT NOW?

>> AS YOU REPORT... AS YOUR REPORT POINTED OUT, JUDY, RIGHT NOW THE TENSIONS SURROUNDING THE IRANIAN NUCLEAR SITUATION ARE AT THE HIGHEST I CAN REMEMBER THEM BEING, AND THEY'RE FOR REAL. THE RHETORIC ON BOTH SIDES IS SIGNIFICANT. THE SUPPORT THE U.S. IS GETTING FROM THE EUROPEANS WHO EMBARGO IRANIAN OIL TO NOT BUY THAT OIL AND CUT THEM OFF FINANCIALLY IS IS HIGH. THE IRANIANS ARE BEING BACKED INTO A CORNER. ON THE OTHER SIDE OF IT, IF YOU WILL, THE DESIRE BY ISRAEL TO WANT TO ATTACK IRAN'S NUCLEAR FACILITIES ALSO SEEM TO BE AT THE HIGHEST LEVEL THAT I CAN RECALL. WARNINGS FROM THE U.S. AND THE U.K. NOT TO DO IT ANY TIME SOON. EVEN SENATOR McCAIN IN JERUSALEM, HIS STATEMENT HIT THE TAPES IN THE MARKETPLACE SAYING THEY'RE SIGNIFICANT TENSIONS BETWEEN WHAT THE ISRAELIS AND THE U.S. WANT TO DO. THE MARKET IS KEYING OFF THESE SIGNALS AND ARE INTENSELY WORRIED ABOUT REALLY WHAT AMOUNTS TO A THIRD OF THE WORLD'S OIL BEING IN JEOPARDY IF THERE'S A CONFLICT OF ANY KIND.

>> Woodruff: YOU ALSO MENTIONED TO US, FRANKLY, THE FACT THAT THE ECONOMY IS LOOKING UP.

>> THAT IS THE OTHER SUPPORTING FACTOR HERE. THE U.S. EMPLOYMENT PICTURE IN PARTICULAR AND A LOT OF THE CO-INCIDENT ECONOMIC INDICATORS, THE VARIOUS FEDERAL RESERVE REPORTS THAT HAVE COME OUT OVER THE PAST COUPLE OF MONTHS NOW, HAVE ALL INDICATED GROWING U.S. ECONOMY WHICH SPEAKS DIRECTLY TO INCREASED GASOLINE DEMAND. WE ALSO NOW SEE THE CHINESE STEPING IN TO TAKE MEASURES TO BOLSTER THEIR ECONOMY TO MAKE SURE THAT THEIR ENERGY INTENSIVE ECONOMY CONTINUES ON. SO THAT IS ALSO KEEPING OIL DEMAND STRONG GLOBALY AND HAVING SUPPLIES NOW THREATENED ONLY ADD TO THIS $105 BARREL PRICE WE HAVE.

>> Woodruff: ONE HEARS ABOUT THE ROLE OF SPECULATION, INVESTOR SPECULATION. HOW BIG A FACTOR IS THAT?

>> WELL, THERE'S NO DOUBT THAT THERE IS INVESTORS OF ALL STRIPES RIGHT NOW BETTING ON THE FACT THAT THERE'S GOING TO BE A CONFLICT WITH IRAN, THAT THE GLOBAL ECONOMY IS GOING TO OUTPACE AVAILABLE OIL DEMAND IN PUSHING THE PRICE UP AHEAD OF TIME. THESE INVESTMENTS THOUGH YOU HAVE TO REMEMBER ARE MADE TO EITHER HEDGE AN AIRLINES' FUEL COST OR OFFSET THE DAMAGE THAT OTHER PARTS OF THE STOCK PORTFOLIO OR BOND PORTFOLIO ARE GOING TO TAKE FROM A SPIKE IN ENERGY PRICES DUE TO A TIGHT SUPPLY-DEMAND ENVIRONMENT.

>> Woodruff: MICHAEL, THE REPUBLICANS, WE'VE ALREADY HEARD THEY ARE PICKING UP QUICKLY ON THIS. WHEN IT COMES TO THE CANDIDATES, WHEN IT COMES TO THE CONGRESS, IS THERE A UNIFIED THEME? WE DID HEAR FROM ROMNEY AND GINGRICH. BUT IS THERE A UNIFIED THEME TO WHAT THEY'RE TRYING TO GET ACROSS?

>> I THINK SO. I MEAN THE REPUBLICANS BOTH ON CAPITOL HILL AND ON THE CAMPAIGN TRAIL THINK THEY HAVE A WINNER HERE. THEY THINK THAT, YOU KNOW, THE GAS PRICES BOTH AFFECT PEOPLE IN THE SHORT TERM. IF THEY CAN, YOU KNOW, BLAME PRESIDENT OBAMA FOR WHAT PEOPLE FEEL LIKE WHEN THEY GO AND PAY $60 TO FILL UP THEIR CAR, THAT'S A WINNER. THEY ALSO THINK THAT IT FOLDS INTO THE BROADER NARRATIVE THEY'RE TRYING TO PAINT ABOUT PRESIDENT OBAMA'S HANDLING OF THE ECONOMY WHICH IS LARGELY TIED TO HOW PEOPLE FEEL THEY'RE DOING ECONOMICALLY. WHETHER THEY THINK THINGS ARE GOING IN THE RIGHT DIRECTION OR THE WRONG DIRECTION. AND HIGHER GAS PRICES GIVE PEOPLE A SENSE THAT IT'S JUST NOT GOING IN THE RIGHT DIRECTION. THAT HELPS THE BROADER REPUBLICAN ARGUMENT AGAINST THE PRESIDENT.

>> Woodruff: ARE THEY ALSO BRINGING UP THE IRAN UNCERTAINTY, THE IMPROVING ECONOMY, THE KINDS OF THINGS WE JUST HEARD FROM JOHN?

>> SURE. THEY'LL BRING THAT UP. OF COURSE IT'S IN THEIR INTEREST FROM A POLITICAL PERSPECTIVE TO TALK LESS ABOUT KIND OF THE UNDERLYING ECONOMIC FACTORS THAT ARE MAYBE OUTSIDE OF THE PRESIDENT'S CONTROL AND FOCUS MORE ON WHAT THEY CLAIM THE PRESIDENT COULD DO OR IS NOT DOING TO FIX THIS SITUATION. NOW THE TRUTH IS THAT, YOU KNOW, THE ADMINISTRATION WILL PUSH BACK AND SAY, LOOK, WE'VE OPENED UP A LOT OF AREAS TO DRILLING AS YOUR REPORT POINTED OUT. THE TRUTH IS THAT THE PRESIDENT MAY NOT BE ABLE TO DO ANYTHING IN THE SHORT TERM TO HEAD OFF THESE PRICES BECAUSE THE... THEY'RE BEING DRIVEN BY FORCES THAT ARE GLOBAL IN NATURE AND NOT CENTERED HERE. BUT THE REPUBLICANS AREN'T GOING TO FOCUS ON THAT. THEY WANT PEOPLE TO BELIEVE AND TO UNDERSTAND THAT IT'S THE PRESIDENT AT FAULT.

>> Woodruff: WE DID JUST HEAR SOME OF THE WHITE HOUSE PUSH- BACK THERE FROM JAY CARNEY. WHAT MORE DOES THE WHITE HOUSE HAVE TO SAY TO BACK UP ITS ARGUMENT THAT IT'S NOT THE FAULT OF THE ADMINISTRATION?

>> WELL, THERE'S SORT OF A DUAL TRACK THAT THEY'RE TAKING BOTH DEFENSIVE AND OFFENSEIVE. ON THE DEFENSIVE SIDE YOU HEARD IT FROM JAY CARNEY THAT THE PRESIDENT HAS BEEN DOING A LOT TO KIND OF IT IN PLACE POLICYS THAT WOULD OVER TIME DRIVE OIL AND GAS PRICES DOWN. THAT'S MORE EXPLORATION, MORE PERMITS FOR DRILLING. THERE ARE ALSO THOUGH THE DEMOCRATIC PARTY, YOU KNOW, ON CAPITOL HILL AND THE ALLIES OF THE WHITE HOUSE ARE GOING TO PUSH ON THIS ISSUE OF OIL SUBSIDIES. THE PRESIDENT HAS BEEN HAMMERING THE REPUBLICANS ON THE SUBSIDIES, THE FEDERAL GOVERNMENT SUBSIDIES THAT GO TO THE OIL COMPANY. OF COURSE THE OIL COMPANIES ARE GOING TO BE MAKING RECORD PROFITS BECAUSE OF THE PRICE OF OIL AS HIGH AS IT IS. SO THE DEMOCRATS THINK THEY HAVE A REALLY GOOD ARGUMENT TO TELL PEOPLE, LOOK, AT A TIME WHEN THESE OIL COMPANIES ARE MAKING SO MUCH MONEY, THIS IS THE LAST TIME THAT WE NEED TO BE GIVING THEM MORE SUBSIDIES.

>> Woodruff: MICHAEL, IS IT FAIR TO SAY THAT THE WHITE HOUSE IS FOCUSED ON THIS DEBATE, CLOSELY FOCUSED ON THIS DEBATE THAT IS UNDERWAY?

>> I CAN DEFINITELY TELL YOU HAVING TALKED TO THE FOLKS AT THE WHITE HOUSE THEY ARE CONCERNED. THEY KNOW THIS HAPPENS EVERY YEAR BUT EVERY YEAR IT SEEMS TO SPIKE HIGHER. OF COURSE THIS IS AN ELECTION YEAR. IT'S MR. OBAMA'S RE-ELECTION YEAR. IT'S SOMETHING THEY HAVE THEIR EYE ON CAREFULLY BOTH TO MAKE SURE THAT THEY PUSH BACK AGAINST THE REPUBLICANS AND TO MAKE SURE THAT THE PRESIDENT IS EXPRESSING, AS YOU HEARD JAY CARNEY SAY A FEW MINUTES AGO, EXPRESSING THAT HE GETS IT. THAT HE UNDERSTANDS THAT THIS IS HURTING PEOPLE.

>> Woodruff: JOHN, COMING BACK TO YOU. HISTORICALLY HOW DIFFICULT HAS IT BEEN FOR PRESIDENTS TO DO SOMETHING ABOUT OIL, THE COST OF OIL, THE COST OF GASOLINE IN A WAY THAT HAS A MATERIAL EFFECT ON WHAT PEOPLE SEE, WHAT THEY PAY?

>> WELL, IT SEEMS TO BEDEVIL ADMINISTRATIONS OF ALL STRIPES AND PARTIES. EACH ADMINISTRATION SEEMS TO BLAME THE PREVIOUS ONE FOR A LACK OF AN ENERGY POLICY. I CAN RECALL PRESIDENT CLINTON RELEASED A STRATEGIC PETROLEUM RESERVE IN THE FINAL MONTHS OF HIS ADMINISTRATION BACK AROUND 2000. SO THESE PROJECTS TAKE A LONG LEAD TIME. THE THING... THE COMMODITIES, JUDY, I WOULD LIKE TO POINT OUT THE WAY TO LOWER THE PRICE OF COMMODITIES IS TO PRODUCE MORE OR USE LESS OF IT. THAT'S THE MAGIC FORMULA THERE. THESE PROJECTS REQUIRES HUNDREDS OF MILLIONS IF NOT BILLIONS IN INVESTMENT, REQUIRE A LONG LEAD TIME AND ALSO YOU HAVE TO DEAL WITH THE VAGARYS OF THE BOOM-AND-BUST CYCLE OF ENERGY PRICES. IN 1998 WHEN PRICES GOT DOWN TO $10 A BARREL IT WAS RUINOUS TO OUR DOMESTIC OIL PRODUCTION. TOOK A LONG TIME TO COME BACK FROM IT. WE'RE ONLY COMING BACK TO IT NOW BECAUSE THERE'S A NEW TECHNOLOGY THAT'S EMERGED BECAUSE OF $100 OIL. THAT'S THE SHALE OIL AND THE FRAKING WHICH HAS ITS OWN ISSUES SURROUNDING IT.

>> Woodruff: JUST QUICKLY, FINALLY MICHAEL, HOW IS ALL THAT PLAYING INTO THESE BACK-AND-FORTH ARGUMENTS BETWEEN THE WHITE HOUSE AND THE REPUBLICANS?

>> WELL, I MEAN, I THINK THE WHITE HOUSE IS EAGER TO PUT OUT THE MESSAGE THAT ON THE EFFICIENCY SIDE THEY'VE DRIVEN THE EFFICIENCY FOR AUTOS UP, THAT THEY'RE FOCUSED ON GREEN ENERGY. THAT'S A BIG POINT OF CONTENTION BETWEEN THE WHITE HOUSE AND THE REPUBLICANS. YOU KNOW, THE PRESIDENT LIKES TO TALK ABOUT THIS "ALL OF THE ABOVE" ENERGY POLICY HE HAS TO BOTH INCREASE PRODUCTION AND INCREASE THE AMOUNT OF DOMESTIC THAT'S PRODUCED HERE BUT THEN ALSO TO REDUCE THE DEMAND. YOU KNOW, IT'S NOT SOMETHING THAT IS GOING TO HAPPEN IN A SHORT ORDER BUT IT'S DEFINITELY GOING TO BE A REAL FOCUS OF THE CAMPAIGN IN THE NEXT MONTH.

>> Woodruff: WE THANK YOU BOTH.

>> Brown: AND STILL TO COME ON THE NEWSHOUR: THE RESCUE PACKAGE FOR GREECE; BIG MONEY IN THE PRESIDENTIAL CAMPAIGNS; RELIGIOUS TURMOIL IN THAILAND; AND AUTHOR ROGER ROSENBLATT ON GRIEF. BUT FIRST, THE OTHER NEWS OF THE DAY. HERE'S KWAME HOLMAN.

>> Reporter: THE U.S. SUPREME COURT WILL REVISIT THE ISSUE OF AFFIRMATIVE ACTION IN COLLEGE ADMISSIONS IN ARGUMENTS THIS FALL. THE COURT AGREED TODAY TO HEAR A CASE FILED BY A WHITE STUDENT WHO WAS DENIED ENTRY AT THE UNIVERSITY OF TEXAS IN 2008. SHE CONTENDS THE SCHOOL'S RACE- CONSCIOUS POLICY IS UNCONSTITUTIONAL. THE HIGH COURT LAST RULED ON THE ISSUE IN 2003, WHEN IT UPHELD THE USE OF RACE IN ADMISSIONS AT THE UNIVERSITY OF MICHIGAN LAW SCHOOL. FEDERAL REGULATORS MOVED TODAY TO EASE CRITICAL SHORTAGES OF TWO CANCER DRUGS. THE FEDERAL DRUG ADMINISTRATION ANNOUNCED IT'S ALLOWING TEMPORARY IMPORTS OF A REPLACEMENT DRUG FOR DOXIL, USED TO TREAT OVARIAN CANCER. THE AGENCY ALSO APPROVE NEW SUPPLIERS OF METHOTREXATE, A DRUG FOR CHILDREN WITH LEUKEMIA. AN OFFICIAL WITH THE AMERICAN CANCER SOCIETY SAID PATIENTS NEED THE RELIEF.

>> THE CURRENT DRUG SHORTAGE HAS BECOME A DAILY NIGHTMARE FOR CANCER PATIENTS, THEIR FAMILIES, AND THOSE WHO TREAT THEM, WITH NO CLEAR UNDERSTANDING OF WHEN DRUGS CURRENTLY IN SHORTAGE WILL BECOME AVAILABLE AND AN UNCERTAINTY OF WHEN ADDITIONAL DRUGS MAY GO INTO SHORTAGE.

>> Reporter: F.D.A. OFFICIALS SAID THERE ARE CURRENTLY 283 PRESCRIPTION DRUGS IN SCARCE SUPPLY OR SIMPLY UNAVAILABLE IN THE U.S. ON WALL STREET, THE DOW JONES INDUSTRIAL AVERAGE BROKE 13,000 FOR THE FIRST TIME SINCE MAY OF 2008, BUT IT COULD NOT HOLD. INSTEAD, THE DOW ENDED WITH A GAIN OF JUST 15 POINTS TO CLOSE AT 12,965. THE NASDAQ FELL THREE POINTS TO CLOSE AT 2,948. A TEAM FROM THE U.N.'S NUCLEAR WATCHDOG AGENCY HELD NEW TALKS IN IRAN TODAY ON THE COUNTRY'S NUCLEAR PROGRAM. THE GROUP IS SUPPOSED TO GAUGE WHETHER IRAN IS GETTING CLOSER TO DEVELOPING A NUCLEAR WEAPON, BUT THE FOREIGN MINISTRY SAID THE U.N. TEAM WILL NOT BE VISITING ANY NUCLEAR FACILITIES.

>> ( translated ): THE TITLES OF THE MEMBERS OF THE VISITING DELEGATION ARE NOT INSPECTORS. THIS IS AN EXPERT DELEGATION FROM THE INTERNATIONAL ATOMIC ENERGY AGENCY, LED BY THE VICE PRESIDENT OF THE DIRECTOR GENERAL OF I.A.E.A. THE PURPOSE OF THE VISIT IS NOT INSPECTION; THE GOAL IS NEGOTIATION AND TALKS ON COOPERATION BETWEEN IRAN AND I.A.E.A. TO CREATE A FRAMEWORK FOR FURTHER TALKS AND COOPERATION.

>> Reporter: ALSO TODAY, THE DEPUTY HEAD OF IRAN'S ARMED FORCES WARNED THE REGIME COULD LAUNCH A PREEMPTIVE STRIKE IF IT FEELS THREATENED. HE DID NOT NAME A TARGET. IN SYRIA, OPPOSITION GROUPS CLAIMED UP TO 100 PEOPLE WERE KILLED IN FIGHTING ACROSS THE COUNTRY. MANY OF THE DEATHS, THEY SAID, WERE IN THE OPPOSITION STRONGHOLD OF HOMS. THERE, THE NEIGHBORHOOD OF BABA AMR CAME UNDER A HEAVY NEW ARTILLERY BARRAGE BY THE SYRIAN MILITARY. REBEL SOURCES SAID SHELLS RAINED DOWN AT A RATE OF TEN PER MINUTE, BUT ACTIVISTS SAID PRESIDENT BASHAR ASSAD'S TROOPS HAD BEEN STYMIED IN EFFORTS TO LAUNCH A GROUND ATTACK. IN WASHINGTON, STATE DEPARTMENT SPOKESWOMAN VICTORIA NULAND APPEARED TO OPEN THE DOOR SLIGHTLY TO ARMING THE OPPOSITION.

>> WE DON'T BELIEVE THAT IT MAKES SENSE TO CONTRIBUTE NOW TO THE FURTHER MILL TARIZATION OF SYRIA. WHAT WE DON'T WANT TO SEE IS THE SPIRAL OF VIOLENCE INCREASE. THAT SAID, IF WE CAN'T GET ASSAD TO YIELD TO THE PRESSURE THAT WE ARE ALL BRINGING TO BEAR, WE MAY HAVE TO CONSIDER ADDITIONAL MEASURES.

>> Reporter: U.S. OFFICIALS ALSO SUPPORTED A CALL BY THE INTERNATIONAL RED CROSS FOR A DAILY CEASE FIRE TO ALLOW DELIVERIES OF HUMANITARIAN AID. PROTESTS ERUPTED IN AFGHANISTAN TODAY AFTER KORANS INADVERTENTLY WERE BURNED LAST NIGHT AT A U.S. MILITARY BASE. MORE THAN 2,000 AFGHANS DEMONSTRATED OUTSIDE THE FACILITY. SOME IN THE CROWD SHOUTED "DIE, FOREIGNERS!" AS THEY SET TIRES ABLAZE AND THREW STONES AT THE MAIN GATE. A WESTERN MILITARY OFFICIAL SAID THE MUSLIM HOLY BOOKS WERE REMOVED FROM A NEARBY JAIL BECAUSE DETAINEES WROTE EXTREMIST MESSAGES IN THEM. THE NATO COMMANDER IN AFGHANISTAN SAID EMPHATICALLY THEY SHOULD NOT HAVE BEEN ADDED TO TRASH MEANT FOR INCINERATION.

>> WE ARE THOROUGHLY INVESTIGATING THE INCIDENT. WE ARE TAKING STEPS TO ENSURE THAT THIS DOES NOT EVER HAPPEN AGAIN. I ASSURE YOU, I PROMISE YOU THIS WAS NOT INTENTIONAL IN ANY WAY. I OFFER MY SINCERE APOLOGIES FOR ANY OFFENSE THIS MAY HAVE CAUSED.

>> Reporter: AFGHAN PRESIDENT HAMID KARZAI DENOUNCED THE BURNING, AND HE ORDERED A SEPARATE INQUIRY INTO THE INCIDENT. SEPARATELY, THREE NATO SOLDIERS WERE KILLED TODAY IN A ROADSIDE BOMBING IN SOUTHERN AFGHANISTAN. 47 NATO SERVICE MEMBERS HAVE DIED SO FAR THIS YEAR. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO JEFF.

>> Brown: AND WE TURN ONCE AGAIN TO EUROPE, STRUGGLING TO AVOID EVEN WORSE DAMAGE FROM ITS DEBT CRISIS. A MAJOR STEP WAS TAKEN THIS MORNING IN BRUSSELS WHERE EURO- ZONE FINANCE MINISTERS ANNOUNCED A $172 BILLION BAILOUT FOR GREECE, THE SECOND BAILOUT PACKAGE FOR THAT NATION AIMED AT HELPING IT AVOID DEFAULT. WE BEGIN WITH A REPORT NARRATED BY RICHARD EDGAR OF INDEPENDENT TELEVISION NEWS.

>> Reporter: TODAY THE GREEK FINANCE MINISTER RETURNED HOME WITH THE NEWS. TODAY'S DECISION IN BRUSSELS, HE SAYS, IN REGARDS TO THE POLITICAL, ECONOMIC AND SOCIAL CONSEQUENCES IS IS PERHAPS THE MOST IMPORTANT OF THE POST WAR ERA.

>> WE AVOIDED THE NIGHTMARE SCENARIO YESTERDAY OR TODAY IN THE MORNING RATHER. WE HAD A POSITIVE OUTCOME WHICH, AS I SAID IN BRUSSELS, WAS NEITHER EASY NOR OBVIOUS.

>> Reporter: THE AIM IS FOR GREEK DEBT TO FALL TO JUST OVER 120% OF THE COUNTRY'S G.D.P., A MEASURE THE SIZE OF ITS ECONOMY IN EIGHT YEARS TIME. BUT THE EUROPEAN COMMISSION'S OWN RESEARCH WHICH EMERGED LAST NIGHT SAYS THE PLAN IS ACCIDENT PRONE AND DEBT COULD SWELL DRAMATICALLY ONLY FALLING BACK TO TODAY'S LEVELS IN 2020 DESPITE THE BAILOUT. IT'S CONCENTRATING ELSEWHERE IN EUROPE. HERE IN THE U.K. MEETING THE SPANISH PRIME MINISTER DAVID CAMERON CALLS FOR FINANCIAL PROTECTION.

>> GREECE HAS MADE ITS CHOICE. WE NOW HAVE TO FOCUS ON THE NEXT STEP WHICH IS CONSTRUCTING A FIRE WALL THAT IS LARGE ENOUGH TO PREVENT CONTAGION WITHIN THE EUROZONE.

>> Reporter: AND SPAIN MAY NEED THAT FIRE WALL. MARKETS ARE TURNING THEIR ATTENTION TO OTHER COUNTRIES IN THE EUROZONE.

>> WHAT WE THINK COULD BE THE NEXT STAGE IS THAT THE MARKET REFOCUSES ON HOW ITALY AND SPAIN IN PARTICULAR RESTORE THEIR ECONOMIC GROWTH SO IT MAY BE OVER THE NEXT COUPLE OF WEEKS THAT WE SEE A RENEWED CRISIS IN THE REST OF EUROPE.

>> Reporter: ON THE STREETS OF ATHENS, THE REALITY OF THEIR SITUATION IS SINKING IN.

>> I BELIEVE THAT GREECE WON'T BEAR THIS BURDEN.

>> I HAVE CHILDREN. I'M JUST SCARED FOR THEM. THEY MAY WANT TO LIVE ABROAD.

>> Reporter: THE FULL CONSEQUENCES OF THIS RESCUE ARE STILL TO BE FELT. THIS IS THE FIRST ACT TO THE GREEK TRAGEDY NOT THE LAST.

>> Brown: SO WHAT DOES IT ALL MEAN? WE'RE JOINED NOW BY: THE EUROPEAN UNION'S AMBASSADOR TO THE UNITED STATES, JOAO VALE de ALMEIDA; AND SCHEHERAZADE REHMAN, DIRECTOR OF THE EUROPEAN UNION RESEARCH CENTER AND PROFESSOR OF INTERNATIONAL FINANCE AT GEORGE WASHINGTON UNIVERSITY. WELCOME BACK TO BOTH OF YOU.

>> THANK YOU.

>> THANK YOU.

>> Brown: MR. AMBASSADOR, HERE WE ARE AGAIN. A NEW ANNOUNCEMENT. A NEW DEAL. WHAT DOES THIS ONE MEAN? DOES IT SIGNAL AN END THE THE BEGINNING OF AN END TO THE TROUBLES IN EUROPE?

>> THIS IS GOOD NEWS. WE'RE TRYING TO ADDRESS A VERY COMPLEX AND DIFFICULT SITUATION IN GREECE. WE'RE TRYING TO PREVENT CONTAGION, AND WE'RE TRYING TOLL BUILD THE CONDITIONS FOR SUSTAINABLE GROWTH IN GREECE. THIS IS WHAT WE'RE TALKING ABOUT HERE. DEALING WITH AN URGENT SITUATION, AN EMERGENCY SITUATION, BUT LOOKING AHEAD TO LONGER-TERM SOLUTIONS FOR GREECE COMPETITIVENESS, CAPACITY TO HAVE SUSTAINABLE GROWTH IN THE FUTURE.

>> Brown: STILL DOUBTS THOUGH? WE HEARD IN THAT PIECE, WE HEAR IT ALL OVER THE PLACE. STILL DOUBTS ABOUT GREECE'S ABILITY TO STICK TO THE DEAL. WHAT DO YOU SEE?

>> I THINK THOSE DOUBTS ARE VERY VERY, VERY REAL. IT SHOWS UP IN THE PLAN IN TERMS OF HAVING THE EUROPEAN CENTRAL BANK AND THE EUROPEAN COMMISSION REPRESENTED ON THE GROUND OVERSEEING THIS NEW BAILOUT PACKAGE. I THINK THERE IS ENORMOUS DISTRESS AND MISTRUST ABOUT WHAT'S GOING TO HAPPEN DOWN THE ROAD. AND IF THE GREEKS ARE GOING TO STICK WITH THE PLAN. THERE'S AN ELECTION COMING IN APRIL. WE DON'T KNOW WHAT THE NEW GOVERNMENT IS GOING TO DO. THERE'S ENORMOUS PAIN ON THE GROUND AT THIS POINT.

>> Brown: THIS IS SORT OF EXTRAORDINARY, I GUESS, PRESENCE NOW OF THE EUROPEAN UNION IN GREEK GOVERNMENT, IN GREEK SOCIETY, A VERY UNUSUAL SITUATION.

>> I THINK WE'RE TALKING ABOUT A SITUATION IN WHICH ONE NEEDS TO FIND THE RIGHT BALANCE. THE BALANCE BETWEEN SOLIDARITY AND RESPONSIBILITY. SOLIDARITY IS WHAT EUROPE IS SHOWING TOGETHER WITH THE I.M.F.TOWARDS COUNTRIES. RESPONSIBILITY IS WHAT GREECE MUST SHOW, HAS BEEN SHOWING, I MUST SAY, AND NEEDS TO CONTINUE TO SHOW IN ORDER TO ENSURE THE CREDIBILITY OF THE PLAN.

>> Brown: WHEN YOU SAY THERE'S STILL THESE DOUBTS, STILL DOUBT ABOUT WHETHER GREECE WILL DEFAULT?

>> I THINK MANY MANY PEOPLE INCLUDING THE MARKETS BELIEVE THAT GREECE WILL DEFAULT AT SOME POINT. WHAT THIS 130 BILLION EURO BAILOUT WAS, WAS BUYING TIME IN ORDER TO HAVE THE EUROPEANS MANUFACTURE SOME KIND OF A STRUCTURED DEFAULT AS OPPOSED TO A DISORDERLY DEFAULT. TO SOME EXTENT SOME OF THE DEBT HAS ALREADY BEEN WRITTEN OFF. MORE DEBT HAS BEEN NOW ADDED ON TO GREECE. AT THIS POINT, I CAN'T SEE HOW THEY CAN PAY THIS BACK GIVEN THE FACT THAT GROWTH AT THIS POINT IS NONEXISTENT. GIVEN THE AUSTERITY PACKAGES.

>> Brown: DO YOU THINK DEFAULT IS STILL POSSIBLE?

>> I'M NOT ABLE TO PREDICT THE FUTURE. I DON'T THINK ANY OF US IS. WE BELIEVE THAT THIS IS THE RIGHT TRACK FOR GREECE. BY THE WAY I DON'T SEE AN ALTERNATIVE TRACK FOR GREECE. LET ME JUST POINT OUT THAT SOMETIMES I LISTEN IN THE DEBATE HERE. FOR US THERE IS NO OPPOSITION BETWEEN AUSTERITY AND GROWTH. THAT'S THE WRONG CHOICE. WE NEED BOTH. WE NEED AUSTERITY NOW IN GREECE BECAUSE THERE IS NO OTHER ALTERNATIVE TO RESTORE CREDIBILITY TO THE PUBLIC FINANCES OF GREECE BUT WE NEED GROWTH SO AT THE SAME TIME WHAT WE'RE DOING IN GREECE OR WHAT THE GREEKS ARE DOING IS IMPLEMENTING STRUCTURAL REFORMS, YOU KNOW, LOOKING AT THE LABOR MARKET, AT THE PENSION SYSTEM, OPENING UP THE ECONOMY. BREAKING DOWN VARIOUS COMPETITION. ALL THESE ARE THE CONDITIONS FOR HOPEFULLY SUSTAINABLE GROWTH IN GREECE. WE DON'T WANT BUBBLES OF GROWTH. WE WANT TO CREATE THE CONDITIONS FOR GREECE TO BE ABLE TO RECOVER ITS PLACE IN THE WORLD ECONOMY.

>> Brown: BUT IS THERE MORE DISCUSSION ABOUT WHETHER THERE HAS BEEN TOO MUCH FOCUS ON AUSTERITY? I MEAN THERE IS MORE DISCUSSION CERTAINLY ABOUT IT. I'M WONDERING WHETHER IN HIGH OFFICIAL CIRCLES THERE IS MORE DISCUSSION NOW ABOUT WHETHER THERE IS TOO MUCH FOCUS ON AUSTERITY MAKING IT IMPOSSIBLE FOR THESE COUNTRIES TO GROW.

>> AGAIN, ONE THING IS NOT OPPOSED TO THE OTHER. AUSTERITY IS NOT OPPOSED TO GROWTH. IF YOU LOOK AT THE LAST EUROPEAN UNION SUMMIT IN JANUARY IN BRUSSELS IT WAS ALL ABOUT GROWTH. IT WAS ALL ABOUT CREATING THE PATH TOWARDS SUSTAINABLE GROWTH IN EUROPE AND REFORMING OUR ECONOMIES AND REFORMING LABOR MARKETS. PENSION SYSTEM. ALL THIS NEEDS TO BE DONE. IT'S NOT ONLY IN EUROPE. ALL INDUSTRIALIZED COUNTRIES HAVE THESE KINDS OF PROBLEMS INCLUDING THE UNITED STATES.

>> Brown: WHAT DO YOU THINK ABOUT THE AUSTERITY VERSUS GROWTH BALANCE.

>> ON THE TOPIC OF GREECE HAVING NO OPTION, AMBASSADOR IS ABSOLUTELY RIGHT. THEY HAVE NO OPTION OTHER THAN TO INSTILL THESE PACKAGES TO REGAIN CREDIBILITY BUT I DO BELIEVE THAT THE AUSTERITY PACKAGE IS BEING PUT INTO PLACE AGAIN IN GREECE AND IN OTHER COUNTRIES IN 2012 WILL DEFINITELY CURTAIL THE GROWTH. I CAN'T FATHOM HOW YOU CAN DO SUCH SEVERE AUSTERITY PACKAGES YET SAY THAT WE'RE GOING TO STIMULATE GROWTH AND CREATE JOBS. THE ONLY RELIANCE ON THAT IS IF FOREIGN MONEY COMES IN.

>> Brown: WHEN THEY TALK ABOUT A NEW FIRE WALL, WHICH WAS A BIG PART OF THE DISCUSSION IN BRUSSELS THE LAST COUPLE OF DAYS, THAT'S A FIRE WALL AGAINST THE POSSIBILITY OF MORE COUNTRIES FALLING INTO TROUBLE.

>> WELL, THE BAILOUT WAS A FIRE WALL TO KEEP GREECE SOLVENT RIGHT NOW BUT THERE IS A FUND, THE EUROPEAN CIVILIZATION MECHANISM, WHICH IS IN PLACE FOR ALMOST ABOUT A TRILLION DOLLARS IF YOU ADD IN ALL THE MONEY, THE FIRE WALLS FOR ITALY AND SPAIN. UNFORTUNATELY I DON'T BELIEVE THAT'S ENOUGH MONEY IF ITALY DOES HAVE SOME SEVERE PROBLEMS.

>> I'D LIKE TO ADD TO WHAT SCHEHERAZDE SAID. SHE'S ABSOLUTELY RIGHT. WE ARE TALKING ABOUT DIFFERENT KINDS OF FIRE WALLS. WE NEED TO ADDRESS THE MORE GLOBAL FIRE WALL. I'M SURE OUR LEADERS WILL BE ABLE TO INCREASE SUBSTANTIALLY TO THE CRITICAL MASS. LET ME GIVE YOU A COUPLE OF EXAMPLES OF MORE POSITIVE ONES. IF I TAKE THE CASE OF ONE OF OUR MEMBER STATES THAT WENT THROUGH A VERY PAINFUL, RIGOROUS PROGRAM, IN 2009 THEY HAD THE CONTRACTION OF THE ECONOMY OF 17%. IN 2012 LAST YEAR, THEY HAD THE GROWTH OF 5%. IN A COUPLE OF YEARS THEY WERE ABLE THROUGH MAJOR SACRIFICE-- I RECOGNIZE THAT-- BUT THEY WERE ABLE TO RESTORE THE CREDIBILITY OF THEIR ECONOMY. IF YOU LOOK AT IRELAND, FOR INSTANCE, IN THE LAST THREE YEARS THEY CAME FROM NEGATIVE GROWTH TO A MINOR BUT STILL RELEVANT POSITIVE GROWTH IN 2011.

>> Brown: TO PLAY DEVIL'S ADVOCATE IN YOUR COUNTRY AND PORTUGAL THE GROWTH IS WAY DOWN.

>> PORTUGAL STARTED THE PROGRAM LAST YEAR. THEY'RE DOING WHATEVER IS NEEDED.

>> Brown: IN SPAIN THE UNEMPLOYMENT IS VERY HIGH. BIG PROBLEMS.

>> I'M NOT SAYING, I'M NOT COMPLACENT ABOUT THE DIFFICULTIES. I HAVE ENORMOUS RESPECT FOR THE SACRIFICES THAT THE POPULATIONS OF THESE COUNTRIES HAVE TO GO THROUGH. BUT THERE IS NO ALTERNATIVE TO AN EFFORT NOW IN ORDER TO CREATE CONDITIONS FOR FUTURE GROWTH. HOW LONG IT WILL TAKE, I CANNOT PREDICT. I HOPE IT'S SOONER RATHER THAN LATER. BUT THESE ARE NECESSARY STEPS IN ORDER TO GET TO THAT LEVEL.

>> Brown: DO YOU WORRY AUSTERITY, SCHEHERAZDE, ABOUT A KIND OF CULTURAL RIFT WE'RE SEEING IN GERMANY, GERMANS FEELING LIKE AND MARGARET WARNER FOUND THIS IN HER REPORTING FOR US, FEELING LIKE THEY'RE BEING ASKED TO PAY TOO MUCH. GREEKS NOW FEELING RATHER HUMILIATED IN SOME CASES ABOUT WHAT IS BEING IMPOSED ON THEM.

>> YOU KNOW, I THINK THERE IS SOME TRUTH TO ALL OF THIS. THE AMBASSADOR IS ABSOLUTELY RIGHT. THERE IS NO OTHER ALTERNATIVE OTHER THAN THE STRUCTURAL REFORMS THAT HAVE TO BE PUT INTO PLACE. THE QUESTION IS MOVING FORWARD. WE KNOW THE LAST TWO YEARS FROM HAVE BEEN SOME MANGLING OFF OF HOW THIS WAS ALL HANDLED. THIS IS NOT JUST A STRUCTURAL REFORM HAPPENING. THIS IS A CRISIS HAPPENING. THERE IS VERY LITTLE CRISIS MANAGEMENT. WHAT MY BIGGEST FEAR IS IS THAT THEY STILL HAVE NOT NOT GOT THE TOOLS IN PLACE TO MANAGE THE MARKETS. IT SEEMS TO ME THAT THE MARKET IS A SECONDARY THOUGHT AT LEAST FROM THE OUTSIDE LOOKING AT SOME OF THESE POLICIES AND THESE SUMMIT MEASURES THAT DO COME OUT. THE MARKET NEEDS TO BE MANAGED IN A VERY CLEAR, PRECISE WAY SO THAT THE AND EYE TEEN A THE CONFUSION AND THE CONFIDENCE IS REBUILT BUT NONE OF THAT IS TAKING PLACE IN A MANNER WHICH I THINK WOULD BE MUCH MORE EFFECTIVE.

>> Brown: VERY BRIEF.

>> IT'S ENCOURAGING FROM THAT POINT OF VIEW. IT'S VERY DIFFICULT TO MANAGE THE MARKET. NEITHER EUROPEANS NOR AMERICANS SEEM TO BE ABLE TO DO THAT. MAYBE THAT'S NOT THE PURPOSE. BUT IF I LOOK AT THE LAST FEW WEEKS AFTER WE'VE AGREED ON A NEW TREATY, PROVIDED VERY AMBITIOUS INTERVENTION IN THE MARKET, WHAT I SEE IN THE STOCK EXCHANGES, WHAT I SEE POINTS TO THE RIGHT DIRECTION. I HOPE THIS TREND WILL CONTINUE.

>> Brown: AMBASSADOR JOAO VAE DE ALMEIDA AND SCHEHERAZDE REHMAN, THANK YOU BOTH VERY MUCH.

>> THANK YOU.

>> Woodruff: NOW, THE FINANCIAL STRENGTH OF THE PRESIDENTIAL CAMPAIGNS. THE CANDIDATES AND THE GROUPS BACKING THEM FILED THEIR JANUARY REPORTS WITH THE FEDERAL ELECTION COMMISSION AT MIDNIGHT YESTERDAY. THESE ARE THE FIRST NUMBERS WE'VE SEEN SINCE VOTERS STARTED GOING TO THE POLLS IN EARLY PRESIDENTIAL PRIMARIES. MARGARET WARNER HAS OUR STORY.

>> Warner: IF THERE WAS ANY DOUBT ABOUT THE HEFT OF THE UNAFFILIATED SUPER PAC FUNDS IN THIS YEAR'S CAMPAIGN, THE JANUARY REPORTS LAID THAT TO REST. THE FOUR REPUBLICAN CANDIDATES RAISED $21 MILLION COMBINED, THE SUPER-PACS SUPPORTING THEM RAISED $22 MILLION.

>> RICK SANTORUM IS THE ULTIMATE WASHINGTON INSIDER.

>> Warner: MOST OF THE SUPER-PAC MONEY WENT FOR CAMPAIGN ADS LIKE THESE, MANY ATTACKING RIVALS TO THE SUPER-PAC'S FAVORED CANDIDATE. THE DIFFERENCE IN FIREPOWER WAS MOST STRIKING FOR NEWT GINGRICH. HE RAISED $5.5 MILLION; THE "WINNING OUR FUTURE" SUPER PAC, MORE THAN $11 MILLION. THE DISPARITY WAS LESS IN MITT ROMNEY'S CASE. HE PULLED IN $6.5 MILLION; THE "RESTORE OUR FUTURE" SUPER-PAC SUPPORTING HIM, $6.6 MILLION. RICK SANTORUM, NOW SURGING IN THE POLLS, COLLECTED JUST OVER $4.5 MILLION ON HIS OWN; THE "RED WHITE AND BLUE FUND," A LITTLE LESS THAN HALF THAT. LIKEWISE, RON PAUL RAISED JUST UNDER $4.5 MILLION; THE PRO-PAUL SUPER-PAC, ABOUT HALF THAT. WHAT'S MORE, AT MONTH'S END, THE PRO-ROMNEY AND PRO-GINGRICH SUPER-PACS WERE LEFT WITH MORE CASH ON HAND TO SPEND THAN THEIR FAVORED CANDIDATES. GINGRICH'S BIG BANKROLLER, CASINO MOGUL SHELDON ADELSON, TOLD "FORBES" MAGAZINE: ON "FOX NEWS SUNDAY," GINGRICH OFFERED THIS ASSESSMENT OF ADELSON'S ROLE.

>> WELL, HE'S CERTAINLY HELPING BALANCE OFF ROMNEY'S 16 BILLIONAIRES. HE'S HELPING BALANCE OFF ROMNEY'S WALL STREET MONEY. BUT THE REASON IS VERY STRAIGHTFORWARD: SHELDON ADELSON IS DESPERATELY WORRIED ABOUT AN IRANIAN NUCLEAR WEAPON, AND HE IS DESPERATELY WORRIED ABOUT THE SURVIVAL OF ISRAEL. AND I AM THE STRONGEST CANDIDATE ON FOREIGN POLICY AND THE STRONGEST CANDIDATE IN NATIONAL SECURITY.

>> Warner: MEANWHILE, PRESIDENT OBAMA IS OUTRAISING ALL OF THE REPUBLICANS. HE BROUGHT IN NEARLY $12 MILLION LAST MONTH; THE PRO-OBAMA SUPER- PAC, LESS THAN $100,000. AND FOR A CLOSER LOOK AT THE FUNDRAISING REPORTS AND THE BIG SPENDERS WHO ARE OPENING THEIR WALLETS TO SUPPORT THE REPUBLICAN CANDIDATES, WE ARE JOINED BY JOHN DUNBAR, MANAGING EDITOR OF THE CENTER FOR PUBLIC INTEGRITY'S I-WATCH NEWS.

>> Brown: NEXT, WE TURN TO JOHN, WELCOME BACK TO THE PROGRAM.

>> THANK YOU.

>> Warner: FIRST OF ALL, REMIND US, HOW DID WE GET TO THIS POINT AT WHICH THE SUPER PACs SUPPOSEDLY NOT AFFILIATED WITH THE CANDIDATES HAVE IN ONE MONTH RAISED MORE THAN THE CANDIDATES' TOTAL?

>> WELL, I BELIEVE SOMEONE WHO IS SEEING THE VALUE OF THAT, I THINK IT'S DIRECTLY RELATED TO THE FACT THAT YOU CAN GIVE AS MUCH MONEY TO A SUPER PAC AS YOU WANT. WHEREAS THE CANDIDATE, YOU'RE LIMITED TO $2500 FOR THE PRIMARY.

>> Warner: SO THIS IS WHAT WAS ENABLED BY THE CITIZENS UNITED SUPREME COURT CASE.

>> RIGHT. CITIZENS UNITED AND A LESSER KNOWN DECISION AFTER THAT CALLED SPEECH NOW CREATED THESE SUPER PACs. WHAT THEY ARE IS POLITICAL ORGANIZATIONS THAT CAN ACCEPT UNLIMITED DONATIONS FROM BILLIONAIRES, CORPORATIONS, LABOR UNIONS AND USE THAT MONEY TO TRY TO DEFEAT OR SUPPORT RIGHT NOW IT'S MOSTLY ATTACK A CANDIDATE IN AN ELECTION.

>> Warner: LET'S START WITH GINGRICH WHO AT LEAST THE BALANCE IS THE MOST OFF. TWICE AS MUCH RAISED BY THE SUPER PAC AS HE RAISED HIMSELF. WE JUST SAW SHELDON ADDALSON. IS HE "THE" BIG FUND-RAISER OR ARE THERE OTHER BIG BILLIONAIRES OR MILLIONAIRES? WHAT HAVE THEY THEMSELVES SAID ABOUT WHY THEY'RE GIVING THIS MUCH.

>> ADDALSON IS 80% PLUS. TEN OUT OF THE 11 MILLION THAT WAS RAISED CAME FROM SHELDON ADDALSON. HE HAS A LONG HISTORY WITH NEWT GINGRICH. THEY GO BACK A LONG WAY. THEY BOTH HAVE SHARED VIEWS ON ISRAEL. HE'S A VERY SORT OF STAUNCH ISRAEL SUPPORTER OF ISRAEL AND I THINK THAT'S WHERE THEY SEE EYE TO EYE.

>> Warner: AND THEN SANTORUM, NOW HIS SUPER PAC OR I SHOULDN'T CALL IT HIS, THE ONE SUPPORTING HIM IN 2011, I THINK IT ONLY RAISED $700,000. SUDDENLY $2 MILLION. WHO ARE HIS BIG GIVERS OR THE SUPER PACs' BIG GIVERS.

>> WHAT'S DISTURB TO GO A LOT OF PEOPLE IS THERE ARE NOT A LOT OF THEM. IN SANTORUM'S CASE THERE WERE TWO. THERE'S A GUY NAMED FOSTER FROOES WHO IS A FORMER MUTUAL FUND MANAGER WHO MADE A LOT OF MEDIA LATELY FOR SOME OFF COLOR JOKES. AND THEN THERE'S SOMEBODY WHO CAME OUT OF NOWHERE WHO IS AN OIL EXECUTIVE FROM LOUISIANA, FROM LAKE CHARLES LOUISIANA NAMED WILLIAM DORE. I BELIEVE THAT'S HIS NAME. BETWEEN THE TWO OF THEM, THAT'S THE VAST MAJORITY OF THE MONEY THAT'S GONE INTO THAT SUPER PAC.

>> Warner: HAVE EITHER OF THEM SAID ANYTHING PUBLICLY ABOUT WHY?

>> FREEZE SAID LOTS OF THINGS PUBLICLY INCLUDING THE BAYER ASPIRIN COMMENT ABOUT CONTRACEPTION. A LITTLE BIT LOWER PROFILE. HE THINKS SANTORUM HAS A BETTER SHOT AGAINST ROMNEY. HE HAS BETTER BLUE COLLAR CREDENTIALS. THEY SEE MORE EYE TO EYE ON RELIGIOUS... HE'S A... SANTORUM IS A DEVOUT CATHOLIC. FREEZE IS A BORN-AGAIN CHRISTIAN.

>> Warner: ON TO ROMNEY, ROMNEY'S SUPER PAC RAISED SOMETHING LIKE $30 MILLION LAST YEAR. AND $6 MILLION LAST MONTH. THAT'S A LOT OF MONEY. HOW MANY BIG GIVERS DOES HE HAVE OR DOES THAT SUPER PAC HAVE?

>> HE'S HAD SOMETHING LIKE A DOZEN OR SO DONORS OF, SEVEN- FIGURE DONORS, ACTUALLY SEVEN SEVEN-FIGURE DONORS PLUS ANOTHER FIVE THAT HAVE GIVEN A COMBINED $1 MILLION. HE HAS A LOT MORE DONORS, AND HE'S RAISED A LOT MORE MONEY.

>> Warner: WHAT SORTS OF PEOPLE ARE THEY?

>> THEY ARE VERY MUCH LIKE HE IS. THEY ARE PEOPLE WHO USE OTHER PEOPLE'S MONEY TO MAKE MONEY. A LOT OF HEDGE FUND PEOPLE. A LOT OF PRIVATE EQUITY PEOPLE, A LOT OF INVESTORS, WHAT I WOULD CALL SORT OF THE INVESTOR CLASS. THEY'RE HIS BIGGEST BACKERS BY FAR.

>> Warner: NOT TO LEAVE OUT RON PAUL. HE RAISED OVER $2 MILLION. THAT SUPER PAC RAISED OVER $2 MILLION.

>> RON PAUL IS INTERESTING TOO BECAUSE THE GUY WHO IS BACKING HIM IS INTERESTING. HE WAS EARLY INVESTOR IN FACEBOOK. HE WAS ACTUALLY PORTRAYED IN THE MOVIE SOCIAL NETWORK AS THE ANGEL INVESTOR IN THAT MOVIE. HE'S A 44-YEAR-OLD GUY, WORTH LOTS OF MONEY. HE'S GIVEN SOMETHING CLOSE TO THREE QUARTERS OF ALL THE MONEY THAT HAS GONE IN TO ENDORSE LIBERTY. HE IS A VERY DEVOUT LIBERTARIAN. VERY MUCH A HANDS-OFF, GOVERNMENT- AND HANDS-OFF BUSINESS KIND OF GUY.

>> Warner: VERY BRIEFLY I THINK IT WAS UNDER 60,000 THAT THE SUPER PAC SUPPORTING OBAMA RAISED. IS THAT EXPECTED TO CHANGE NOW THAT PRESIDENT OBAMA HAS SAID THAT SOME OF HIS CABINET OFFICERS CAN GO TO THEIR EVENT?

>> I THINK IT WILL CHANGE. IT REMAINS TO BE SEEN WHETHER THEY'RE GOING TO BE ABLE TO MATCH THE KIND OF FIRE POWER THAT THE REPUBLICANS HAVE PARTICULARLY AMERICAN CROSS ROADS WHICH IS GOING TO PLAY A MUCH GREATER ROLE ONCE THE....

>> THAT'S THE KARL ROVE SUPER PAC WHICH IS ATTACKING PRESIDENT OBAMA.

>> RIGHT. RAISING EXTRAORDINARY AMOUNT OF MONEY. COMING DOWN THE STRETCH WE'LL SEE THEM KICK IT IN. WE'LL SEE WHAT HAPPENS ON THE OBAMA SIDE AND THE QUESTION IS HOW MUCH THE UNIONS HAVE TO SPEND REALLY.

>> Warner: JOHN DUNBAR, THANK YOU FOR WALKING US THROUGH THAT.

>> THANK YOU.

>> Brown: AND NEXT, WE TURN TO THAILAND. THREE SUSPECTED INSURGENTS WERE SHOT DEAD TODAY IN A FIREFIGHT WITH SECURITY FORCES IN THE SOUTHERN PART OF THE COUNTRY. IT WAS THE LATEST EXAMPLE OF THE SIMMERING RELIGIOUS VIOLENCE THERE THAT'S KILLED MORE THAN 5,000 PEOPLE SINCE 2004. NEWSHOUR SPECIAL CORRESPONDENT KIRA KAY RECENTLY TRAVELED TO THAILAND'S TROUBLED SOUTH AND FILED THIS REPORT.

>> Reporter: EARLY IN OUR VISIT TO THAILAND'S SOUTHERN PROVINCES, WE ARE TAKEN BY MILITARY ESCORT TO THE VILLAGE OF KHOK KRABUE, WHERE A SURREAL SCENE UNFOLDS. SMILING RESIDENTS ARE CELEBRATING NATIONAL CHILDREN'S DAY WITH A DANCE PERFORMANCE UNDER HEAVILY ARMED GUARD. DESPITE ATTEMPTS AT A NORMAL EXISTENCE, KHOK KRABUE IS LIVING UNDER SIEGE, PROTECTED BY VOLUNTEER MILITIAMEN AND PARAMILITARY RANGERS. THE VILLAGE CHIEF, SUPOT PROMPETCH, HIMSELF MANS A CHECKPOINT.

>> ( translated ): IT STARTED WHEN A VILLAGER WENT TO MARKET ON A SUNDAY. ON HER WAY BACK, SHE AND HER CHILD WERE ATTACKED AND KILLED. ABOUT TWO MONTHS LATER THERE WAS ANOTHER INCIDENT. INSURGENTS DROVE INTO THE VILLAGE AND SHOT AND KILLED FIVE PEOPLE WHO WERE STANDING IN FRONT OF THE TEMPLE.

>> Reporter: KHOK KRABUE IS A BUDDHIST VILLAGE, WHICH COLONEL NITI TINSULANONDA SAYS MAKES IT A TARGET FOR A LONG SIMMERING MUSLIM INSURGENCY THAT HAS REEMERGED IN RECENT YEARS.

>> ( translated ): THEY STOKE ANXIETY AND FEAR ON A DAILY BASIS BY AMBUSH SHOOTING OR BOMBING. THEY RESTRICT WHAT PEOPLE DO AND MAKE PEOPLES DAILY LIVES DIFFICULT. THEY WANT TO SCARE THE VILLAGERS SO THEY WILL LEAVE THE AREA.

>> Reporter: ONE OF AMERICA'S BIGGEST ALLIES IN SOUTHEAST ASIA, THAILAND HAS SEEN ITS SHARE OF TURMOIL IN RECENT YEARS-- BLOODY POLITICAL PROTESTS, A COUP AND COLLAPSING GOVERNMENTS, DEVASTATING FLOODS. BUT THE CONFLICT IN THE COUNTRY'S SOUTHERN PROVINCES HAS PROVEN THE MOST DEADLY AND PROTRACTED. 5,000 PEOPLE, MAINLY CIVILIANS, HAVE BEEN KILLED HERE SINCE 2004, WITH SEEMINGLY NO END TO THE VIOLENCE IN SIGHT. THAILAND IS 95% BUDDHIST, BUT ITS THREE SOUTHERN PROVINCES ARE OVERWHELMINGLY MUSLIM AND ETHNICALLY MALAY. THE REGION WAS FOR CENTURIES AN INDEPENDENT ISLAMIC SULTANATE WITH ITS OWN CULTURE AND LANGUAGE, BUT IN THE EARLY 1900s THAILAND TOOK OVER.

>> ( translated ): THE THAI KINGDOM CAME HERE, FOUGHT A WAR AND TURNED THE AREA INTO A PROVINCE OF THE THAI STATE. AND THERE'S BEEN A MOVEMENT SINCE THEN.

>> Reporter: LOCAL ISLAMIC LEADER WAEDURAMAE MAMINGJI SAYS THAT IS ONLY PART OF THE PROBLEM.

>> ( translated ): IN THE LAST 20 OR 30 YEARS, THE POPULATION IN THIS AREA DIDN'T GET JUSTICE IN ADMINISTRATION, POLITICS OR ECONOMY, WHICH MADE PEOPLE IN THE THREE SOUTHERN PROVINCES THINK OF THEMSELVES AS SECOND- CLASS CITIZENS.

>> Reporter: SEPARATIST GROUPS WAGED A GUERILLA CAMPAIGN HERE FROM THE 1960s THROUGH THE 1980s, BUT THEN FALTERED. THEN, IN 2004, A NEW GENERATION TOOK UP THE FIGHT. NOW CAR BOMBS, ROADSIDE I.E.D.s OR POINT-BLANK SHOOTINGS OCCUR ALMOST DAILY. ABDULLAH CLAIMS HE IS A FORMER INSURGENT. WE MET HIM AT AN ARMY RE- EDUCATION PROGRAM HE WAS MADE TO JOIN AFTER BEING ARRESTED, FOLLOWING SIX YEARS AS A WANTED MAN.

>> ( translated ): WHEN I GREW UP, I WAS TOLD THAT WERE MALAYS. THIS LAND WAS OURS. IT WAS THE PATTANI STATE. ALL MUSLIMS HAVE TO FIGHT TO GET PATTANI STATE BACK. I DECIDED TO JOIN THE MOVEMENT BECAUSE THEY SAID IT IS A SIN IF YOU DON'T FIGHT.

>> Reporter: HOW DOES THE RECRUITMENT PROCESS WORK?

>> ( translated ): THEY RECRUITED ME FROM MY VILLAGE. BACK THEN, THEY DIVIDED INTO TWO GROUPS. ONE WENT TO VILLAGES AND ONE WENT TO RELIGIOUS SCHOOLS. THEY USED DIFFERENT TACTICS TO RECRUIT IN THESE PLACES.

>> THEY ARE ALL OVER. I WOULD SAY, LIKE, 90% OF ALL THE VILLAGES HAS A CELL.

>> Reporter: JOURNALIST DON PATHAN HAS SPENT YEARS COVERING THE INSURGENCY.

>> PEOPLE IN THE VILLAGES KNOW THEM BECAUSE WHEN THEY BURY THEIR BOMBS, THEIR I.E.D.s THAT TAKES OUT THE GOVERNMENT'S HUMVEE OR JEEPS OR WHATEVER, THEY DO IT IN FRONT OF A LOT OF PEOPLE. BUT PEOPLE WONT TALK, YOU KNOW. WHAT DOES THAT SAY ABOUT THE PEOPLE HERE, THE MALAY MUSLIM HERE, THE VILLAGERS HERE, IS THAT THEY SHARE THE SAME SENTIMENT. THEY MIGHT NOT AGREE WITH THE BRUTALITY, BUT I CAN ASSURE YOU THEY HAVE THE SAME SENTIMENT. THE SAME HISTORICAL MISTRUST OF THE THAI STATE.

>> Reporter: THAT MISTRUST WAS FUELED BY THE THAI GOVERNMENT'S EARLY HEAVY-HANDEDNESS. IN 2004, POLICE AND ARMY TURNED ON ANGRY DEMONSTRATORS IN THE TOWN OF TAK BAI, STRIPPING, BEATING AND TYING THEM UP, THEN LOADING THEM INTO OVERCROWDED TRUCKS WHERE 78 SUFFOCATED. VIDEOS LIKE THIS ONE BECAME A RALLYING CALL. WHILE THE THAI MILITARY AND POLICE ARE INSURGENCY TARGETS, THE GREAT MAJORITY OF THOSE KILLED HAVE BEEN CIVILIANS, BOTH ETHNIC THAI BUDDHISTS AND MALAY MUSLIMS WHO ARE SEEN AS SYMPATHETIC TO THE THAI STATE.

>> ( translated ): MY FAMILY HAS LOST FIVE MEMBERS FROM THIS VIOLENT SITUATION. I SAW HOW IT AFFECTED MY MOTHER, MY SISTERS, MY NEPHEWS AND MY NIECES. IN MY FAMILY, WE HAVE 15 ORPHANS FROM BROTHERS AND SISTERS THAT PASSED AWAY BECAUSE OF THIS SITUATION.

>> Reporter: PATIMOH SAW HER BROTHER SHOT TO DEATH ON THEIR DOORSTEP, SHE SAYS, BECAUSE HER MALAY MUSLIM FAMILY WAS SEEN AS COOPERATING WITH LOCAL AUTHORITIES. THEN THE GUNMEN CAME FOR HER.

>> ( translated ): I NOTICED A MOTORBIKE PARKED WITH TWO MEN ON IT. WHEN I PASSED THEM, THEY STARTED THEIR ENGINE AND FOLLOWED ME. THE ONE SITTING ON THE BACK PICKED UP HIS GUN AND POINTED IT AT ME. AT THAT MOMENT, I KNEW I COULDN'T ALLOW THIS BIKE TO GET IN FRONT OF MY CAR BECAUSE IF THEY COULD STOP ME, THEY WOULD SHOOT ME FOR SURE.

>> Reporter: PATIMOH WAS LUCKY AND MADE IT TO A POLICE STATION NEARBY; HER ATTACKERS FLED. BUT OTHER CIVILIANS HAVE NOT ESCAPED. 155 TEACHERS HAVE BEEN KILLED HERE BECAUSE THEY ARE STATE EMPLOYEES AND TEACH IN THE THAI LANGUAGE. AND NOTHING IS MORE EMBLEMATIC OF THIS CONFLICT THAN THE SIGHT OF MONKS COLLECTING THEIR ALMS UNDER ARMY PROTECTION. DOZENS OF MONKS HAVE BEEN KILLED OR INJURED BECAUSE BUDDHISM IS INTRINSICALLY LINKED WITH THE ROYAL THAI GOVERNMENT. TODAY, THE ARMY HAS 30,000 TROOPS AND RANGERS HERE, CHECKPOINTS ARE EVERYWHERE, BASES HAVE BEEN SET UP IN TEMPLES. DOGS SNIFF FOR BOMBS ON CITY STREETS.

>> ( translated ): THEY WANT THE MUSLIMS WORLDWIDE TO KNOW THAT THE THAI AUTHORITIES ARE WEAK AND NOT LEGITIMATE TO GOVERN THE PEOPLE IN THIS AREA.

>> Reporter: MAJOR GENERAL ACRA TIPAROJ SAYS THE STAKES ARE HIGH.

>> ( translated ): THEY ATTACK PEOPLE WHO PRACTICE OTHER RELIGIONS AND ATTACK MONKS SO THAT BUDDHISTS WILL GET ANGRY WITH THE MUSLIMS, AND THAT WILL LEAD TO A RELIGIOUS WAR. IF THAT HAPPENS, THEY WILL HAVE SUCCESSFULLY UPGRADED THEIR BATTLE TO THE INTERNATIONAL LEVEL.

>> Reporter: AND SO, THE GOVERNMENT IS PURSUING A TWO- PRONGED APPROACH, ACCORDING TO LONGTIME REGIONAL GOVERNOR GRISADA BOONRACH.

>> ( translated ): WE USE MILITARY ACTION TO CONTROL THE AREA, TO PREVENT THE VIOLENCE. MEANWHILE, WE USE CIVIL ACTION. FOR EXAMPLE, WE USE PERSONNEL TO COMMUNICATE WITH YOUTH AND COMMUNITY LEADERS, RELIGIOUS LEADERS, TO GET THE RIGHT UNDERSTANDING ABOUT HISTORY AND THE RIGHT PRINCIPLES OF RELIGION TO PREVENT THESE PEOPLE FROM JOINING THE MOVEMENT. I WANT TO SEPARATE THE FISH FROM THE WATER. THIS MEANS SEPARATE THE REAL INSURGENCY FROM THE VILLAGE AND LEAVE BEHIND ONLY NORMAL PEOPLE SO WE CAN DEVELOP AND HELP WITH WHAT THEY REALLY WANT.

>> Reporter: BUT IT'S A DIFFICULT BALANCING ACT, ONE THE THAI AUTHORITIES ARE STILL STRUGGLING WITH ON THE GROUND. THE MILITARY'S PRESENCE HERE IS GUIDED BY SPECIAL EMERGENCY LAWS WHICH HUMAN RIGHTS GROUPS ALLEGE HAVE LEAD TO OVERZEALOUS ARRESTS AND INDEFINITE DETENTIONS, FURTHER MARGINALIZING AN ALREADY SENSITIVE POPULATION. THIS 70-YEAR-OLD SAW HER SON TAKEN AWAY BY THE MILITARY THREE YEARS AGO. SHE INSISTS HER SON WAS NEVER AN INSURGENT AND SAYS SHE WAS NEVER TOLD THE CHARGES. PATIMOH, WHOSE OWN FAMILY SUFFERED SO MUCH, HAS BECOME AN ACTIVIST. SHE IS WORKING WITH THIS WOMAN TO FIND A LAWYER TO HELP UNRAVEL HER SONS LEGAL PROBLEMS.

>> ( translated ): PEOPLE IN THE AREA HAVE BEEN SUFFERING FROM THE VIOLENT SITUATION FOR SEVEN OR EIGHT YEARS NOW, BUT THERE IS STILL NO STRATEGY OR POLICY TO MAKE THE LOCAL RESIDENTS FEEL LIKE THEY CAN TRUST WHAT THE GOVERNMENT IS TRYING TO DO.

>> Reporter: THE ARMY SAYS IT IS AWARE OF ITS POOR REPUTATION AND THAT IT IS MAKING A CONCERTED EFFORT TO IMPROVE ITS PERFORMANCE, BUT MAJOR GENERAL ACRA SAYS THE EMERGENCY LAWS NEED TO STAY.

>> ( translated ): THE SPECIAL LAWS HELP US TO GET TO THE SUSPECTS, ALLOW US TO INTERROGATE THEM, AND ALLOW THEM TO PROVE THEIR INNOCENCE IMMEDIATELY. THE SPECIAL LAWS ALSO IMPOSE AN APPROPRIATE TIME LIMIT TO PREVENT AN ABUSE OF HUMAN RIGHTS. ORDINARY PEOPLE WHO DO HONEST WORK, WHO TAKE CARE OF KIDS AND HUSBANDS, GO TO SCHOOL, LIVE A NORMAL LIFE, DON'T FEEL DISTURBED BY THE SPECIAL LAWS. ONLY THOSE WHO ARE INVOLVED WITH THE VIOLENT GROUPS ARE DISGRUNTLED BY THE LAWS.

>> Reporter: DON PATHAN BELIEVES A SOLUTION WILL REQUIRE EXPANDING DIALOG NOT JUST WITH THE INSURGENTS BUT WITH ALL OF MALAY MUSLIM SOCIETY.

>> THE MALAYS IN SOUTHERN THAILAND ARE WILLING TO BE PART OF THE THAI STATE, BUT IT HAS TO BE ON THEIR OWN TERMS. I THINK THE GENERAL ATTITUDE OF THE THAI STATE IS THAT THESE ARE UNGRATEFUL PEOPLE, THEY ARE THAI CITIZENS AND THEY SHOULD ACT AND BEHAVE THAT WAY. AND THE MALAYS SAY, "WELL, YOUR CITIZENSHIP SHOULD NOT COME AT THE EXPENSE OF MY IDENTITY." I THINK THAT THE CHALLENGE IS TO FIND THAT COMFORT LEVEL BETWEEN THE THAI STATE AND THE MALAY, HOW TO MAKE THE MALAY A THAI CITIZEN WITHOUT HAVING... FORCING THEM TO GIVE UP THEIR IDENTITY.

>> Reporter: BUT FOR NOW, THE BRUTAL ATTACKS ON SOCIETY HERE CONTINUE. IN THE WEEK I WAS HERE IN SOUTHERN THAILAND REPORTING THIS STORY, TWO CIVILIANS WERE INJURED BY A CAR BOMB; AN EDUCATION OFFICIAL WAS KILLED ON HIS WAY HOME FROM WORK; THREE SOLDIERS WERE WOUNDED BY AN I.E.D. WHILE ON PATROL; AND, NOT FAR FROM HERE, A POLICEMAN AND HIS TEENAGE SON WERE SHOT AND KILLED WHILE WAITING FOR THE SCHOOL BUS. INTERNATIONAL GROUPS HAVE BEEN TRYING TO BROKER PEACE HERE, BUT THE EFFORTS ARE COMPLICATED BY THE FACT THAT THERE IS NO CLEAR INSURGENCY LEADERSHIP TO TALK TO. AND THE THAI GOVERNMENT, WITH A NEWLY-ELECTED PRIME MINISTER, HAS YET TO PRIORITIZE THE SOUTHERN CONFLICT DESPITE CAMPAIGN PROMISES TO DO SO. AND SO, VILLAGES LIKE KHOK KRABUE LIVE ON UNDER ARMED PROTECTION.

>> Woodruff: KIRA'S STORY IS PART OF A NEW SERIES, "FAULT LINES OF FAITH," PRODUCED IN PARTNERSHIP WITH THE BUREAU FOR INTERNATIONAL REPORTING. FIND A LINK ON OUR WEB SITE WHERE YOU CAN LEARN MORE ABOUT THEIR STORIES.

>> Brown: FINALLY TONIGHT, ON GRIEF AND A MORNING OUT ON THE WATER: A CONVERSATION I HAD RECENTLY WITH AUTHOR ROGER ROSENBLATT. TWO-AND-A-HALF YEARS AFTER OUR 38-YEAR-OLD DAUGHTER AMY DIED OF AN UNDETECTED HEART ATTACK I HAVE TAKEN UP KAYAKING. THAT'S THE FIRST LINE OF A NEW BOOK TITLED KAYAK MORNING, REFLECTIONS ON LOVE, GRIEF AND SMALL BOATS. ITS AUTHOR IS ROGER ROSENBLATT LONG KNOWN TO NEWSHOUR VIEWERS FOR HIS ESSAYS FOR MANY YEARS ON THE PROGRAM AND AMONG OTHER BOOKS FOR HIS MEMOIR MAKING TOAST ABOUT HIS FAMILY'S FIRST WEEKS AFTER THE DEATH OF HIS DAUGHTER. WELCOME BACK.

>> THANK YOU.

>> Brown: MAKING TOAST WAS PARTLY ABOUT THE ORDINARY THINGS, THE MAKING TOAST FOR YOUR GRANDCHILDREN. THIS TWO YEARS LATER IS MORE OF A PERSONAL MEDITATION. WHAT HAPPENED?

>> WELL, FOR ONE THING IT WAS A WAY OF GETTING MY DAUGHTER BACK. WHEN I WAS WRITING ABOUT AMY IN "MAKING TOAST," IT WAS A WAY OF KEEPING HER ALIVE. I COULD KEEP HER ALIVE FOR AS LONG AS I WROTE THE BOOK. THEN I FELT THE LETDOWN ONCE THE BOOK CAME OUT. I GUESS I JUST TOOK UP KAYAKING BECAUSE I'M A LONER. BY NATURE. AND IT WAS PROBABLY THE ONLY SUPPORT AT MY AGE I CAN PLAY ANYWAY OR TAKE UP. SO I DIDN'T REALLY GO OUT IN THE KAYAK THINKING I WAS GOING TO WRITE A BOOK OR EVEN ORGANIZE SOME THOUGHTS. BUT EVENTUALLY WHEN I WAS OUT THERE I REALIZED WHAT A GOOD PLACE IT WAS TO FEEL SECLUDED, SOLITARY, AND IN TOUCH WITH SOMETHING. I NEEDED TO BE IN TOUCH WITH SOMETHING BECAUSE I WANTED TO UNDERSTAND THE NATURE OF GRIEF.

>> Brown: THE KAYAK, OF COURSE, BECAUSE WE TALKED ABOUT WRITING HERE, TOO. THE KAYAK IS A KIND OF METAPHOR THAT YOU CAN GET IN, RIGHT, AND PADDLE ABOUT. IT HAS ITS OWN STRANGE RULES.

>> EXACTLY RIGHT. YOU CAN STAY IN IT LIKE A NOUN. IT IS THE THING ITSELF. SINCE I TALK ABOUT WRITING WITH PRECISION AND RESTRAINT, WHICH I BELIEVE AND WHICH I ADMIRE, YOU CANNOT GO WILD IN A KAYAK. YOU HAVE TO PADDLE A KAYAK WITH PRECISION AND RESTRAINT.

>> Brown: YOU SAY WHEN IT'S TIPPING OVER YOU HAVE TO ACT COUNTERINTUITIVELY.

>> YES. YOU GO IN THE DIRECTION THAT YOU CANNOT BELIEVE WILL SAVE YOU. IT'S THE ONLY DIRECTION IN WHICH YOU WILL BE SAVED.

>> Brown: THE KAYAK MORNING, YOU'RE OUT ON PENNYMAN'S CREEK OFF LONG ISLAND. GROPING FOR SOMETHING. UNDERSTANDING? COMING TO TERMS WITH GRIEF? WHAT?

>> ACTUALLY I MADE IT QUITE SPECIFICMENT I DEVELOPED A CONVERSATION IN THE BOOK THROUGHOUT WITH A THERAPIST. IN WHICH SHE SAYS FINALLY WITH SOME SLIGHT IRRITATION. WHAT DO YOU WANT? AND I SAY YOU WANT HER BACK. THEN SHE SAID QUITE WISELY YOU'LL HAVE TO FIND A WAY TO GET HER BACK. THE VOYAGE I TAKE IN THE KAYAK IS THE WAY I GET MY DAUGHTER BACK IN MY TERMS.

>> Brown: BUT YOUR TERMS HAVE ALWAYS INVOLVED WORDS. THERE'S ANOTHER LINE WHERE YOU WRITE HERE. OLD WORDS OR NEW, NOW THEY DO NOT HELP. I HAD BELIEVED OTHERWISE.

>> IT'S TRUE. WHEN YOU LEAD A LITERACY LIFE AND SEE LIFE THROUGH A BOOK DARKLY, THEN YOU BEGIN TO THINK THAT WORDS WILL DO EVERYTHING FOR YOU. BUT AS MANY PEOPLE KNOW-- AND THIS BOOK IS NOT FOR ME, IT'S FOR EVERYBODY WHO GRIEVES. THERE'S A LINE IN THERE EVERYBODY GRIEVES. FOR THOSE WHO HAVE BEEN FELLED BY ONE INSTANCE OR ANOTHER IN WHICH GRIEF IS THE LOGICAL CONSEQUENCE THEN WORDS CAN'T BE ENOUGH. YOU HAVE TO FIGURE OUT HOW TO LIVE IN THE WORLD OR PADDLE IN THE WORLD OR MOVE ABOUT AND BE USEFUL TO PEOPLE AND USEFUL TO YOURSELF. THIS TINY LITTLE VOYAGE IN THIS CREEK IS AN EFFORT TO DO THAT.

>> Brown: SPEAKING OF EVERYBODY GRIEVES, YOU DO GO BACK HERE TO YOUR OWN EXPERIENCES, REPORTING EXPERIENCES, AROUND THE WORLD. TO SOME HORRIFIC THINGS YOU'VE SEEN THROUGH THE YEARS. IT'S NOT SO MUCH COMPARING TRAGEDIES, I GUESS, BUT LOOKING AT THE IMPACT OF DEATH.

>> YOU KNOW, JEFF, I CANNOT TELL YOU WHY MY MIND WENT TO THESE PLACES. I THINK IT WAS AN IDEA OF PROPORTION. I LOST MY DAUGHTER. YES. IT BROUGHT US TO OUR KNEES. THEN WE STOOD UP AGAIN. IN RWANDA, WE SAW HUNDREDS OF THOUSANDS KILLED. IN SUDAN, THOUSANDS KILLED. IN BAY BEIRUT AND BELL FAST WHEN I WAS DOING REPORTING IN THOSE AREAS, I THINK MY MIND WAS SAYING IN A KIND OF INDIRECT WAY, THIS IS THE WAY THE WORLD TURNS. THERE'S GREAT SADNESS IN IT. IT'S A QUESTION OF HOW YOU LIVE IN A WORLD IN WHICH THERE ARE SADNESS. I WAS DISTANT. I WANTED TO WRITE A STORY ABOUT SOMETHING. THE STORY I WANTED TO WRITE WAS ABOUT SOMEBODY'S GRIEF. NOW WHEN IT'S YOUR OWN GRIEF, YOU BEGIN TO UNDERSTAND THE DEPTH OF IT. AND FRANKLY THE DESIRE FOR SILENCE. ONE OF THE REAL GREAT ADVANTAGES OF BEING OUT IN A KAYAK IS IT'S VERY, VERY QUIET.

>> Brown: YOU SAID THIS IS IN PART FOR OTHER PEOPLE. ARE YOU SURPRISED BY THE STAGES-- BECAUSE WE STARTED TALKING ABOUT MAKING TOAST AND WHAT THAT WAS LIKE, WHAT THAT WAS ABOUT-- TO NOW? ARE YOU SURPRISED BY THE PATH INDIVIDUALLY THAT YOU'VE HAD TO GO THROUGH AND ARE THERE LESSONS FOR OTHER PEOPLE?

>> I HOPE THERE ARE LESSONS FOR OTHER PEOPLE. I HOPE IT IS A USEFUL BOOK FOR OTHER PEOPLE. I WASN'T AWARE OF PARTICULAR STAGES. I THINK I WAS... THERE IS A WONDERFUL REVIEW IN THE SUNDAY TIMES. THE WOMAN WHO WROTE THE REVIEW CAUGHT WHAT I WANTED PEOPLE TO CATCH, THAT I WASN'T REALLY GOING ANYWHERE. IT WAS THE JOURNEY ITSELF, JUST GOING AROUND. THAT WAS THE ISSUE. AND I LAND ON....

>> Brown: YOU MEAN LITERALLY THE KAYAK ISN'T GOING ANYWHERE AND YOU IN YOUR OWN MIND?

>> EXACTLY. I GO TO THE END WHERE THE CREEK EMPTIES INTO THE CANAL, TURN AROUND AND GO BACK AND KEEP GOING AROUND. BUT IN THAT GOING-ROUND, WHICH IS WHAT PEOPLE DO, YOU LEARN SOMETHING OF YOURSELF, SOMETHING OF WHERE YOU ARE IN THE WORLD. AND THE GREAT SYMPATHY FOR THE WORLD. THERE IS ONE QUOTATION FROM PHILO IN THE BOOK THAT STRIKES ME AS USEFUL FOR EVERYONE: BE KIND, HE SAID, FOR EVERYONE YOU MEET IS CARRYING A GREAT BURDEN. BE KIND, FOR EVERYONE YOU MEET IS CARRYING A GREAT BURDEN.

>> Brown: THE BOOK IS KAYAK MORNING, REFLECTIONS ON LOVE, GRIEF AND SMALL BOATS. THANK YOU VERY MUCH, ROGER ROSENBLATT.

>> THANK YOU, JEFF.

>> Woodruff: AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY: THE PRICE OF OIL CLIMBED AGAIN, CLOSING ABOVE $106 A BARREL AND PUTTING NEW PRESSURE ON THE SURGING PRICE OF GASOLINE; THE U.S. SUPREME COURT AGREED TO REVISIT THE ISSUE OF AFFIRMATIVE ACTION IN COLLEGE ADMISSIONS FOR THE FIRST TIME SINCE 2003; AND THE EURO-ZONE NATIONS AGREED EARLY THIS MORNING TO GO AHEAD WITH A SECOND BAILOUT FOR GREECE WORTH $172 BILLION. AND TO KWAME HOLMAN FOR WHAT'S ON THE NEWSHOUR ONLINE. KWAME?

>> Reporter: YOU CAN WATCH ROGER ROSENBLATT READ FROM "KAYAK MORNING" ON OUR "ART BEAT" PAGE. WE COLLECTED VIEWER REACTIONS TO OUR RECENT STORY ON COLLEGE GRADUATES WHO MOVE BACK HOME. YOU CAN STILL SHARE YOUR THOUGHTS ON OUR "MAKING SENSE" PAGE. PLUS, YEMENIS WENT TO THE POLLS TODAY. LEARN WHAT THEIR SINGLE- CANDIDATE ELECTIONS COULD MEAN FOR YEMEN AND FOR U.S. SECURITY INTERESTS. THAT'S ON OUR "WORLD" PAGE. ALL THAT AND MORE IS ON OUR WEB SITE, newshour.pbs.org. JEFF?

>> Brown: AND THAT'S THE NEWSHOUR FOR TONIGHT. ON WEDNESDAY, GWEN IFILL IS IN ARIZONA WITH A PREVIEW OF NEXT WEEK'S PRIMARY CONTEST. I'M JEFFREY BROWN.

>> Woodruff: AND I'M JUDY WOODRUFF. WE'LL SEE YOU ONLINE AND AGAIN HERE TOMORROW EVENING. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

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