>> ERIC: BETWEEN THE FRAUD INDICTMENTS, I.C.E.

RAIDS, AND EXECUTIVE ORDERS WE'VE COVERED ON TONIGHT'S SHOW, YOU'D BE FORGIVEN FOR MISSING ALL THE ELECTION NEWS THAT HAPPENED THIS WEEK, WITH DEVELOPMENTS IN THE GOVERNOR'S RACE, U.S.

SENATE RACE, AND LEGISLATIVE SPECIAL ELECTIONS.

LUCKILY NOTHING GETS PAST OUR POLITICAL PANEL.

REPUBLICANS UP FIRST TONIGHT, BRIAN MCCLUNG IS A FORMER GOVERNOR PAWLENTY SPOKESPERSON AND A LONGTIME CAPITOL OBSERVER.

ANNETTE MEEKS, FORMER CONGRESSIONAL STAFFER AND LIEUTENANT GOVERNOR CANDIDATE WHO NOW HEADS UP THE FREEDOM FOUNDATION OF MINNESOTA.

DEMOCRATS HERE TONIGHT, SUSAN KENT IS A FORMER STATE SENATE MINORITY LEADER AND PARTY LOYALIST.

AND, LAST BUT NOT LEAST, THE VERY DECORATIVE JAVIER MORILLO IS A LONGTIME UNION AND PARTY ACTIVIST AND A FORMER NATIONAL COMMITTEEMAN FOR THE DNC.

THANKS FOR BEING HERE TONIGHT.

SENATOR KENT, KSTP POLL, GOVERNOR WALZ 48% APPROVAL, 48% DISAPPROVAL.

GOOD, BAD, INDIFFERENT?

>> WELL, WE GOT ALMOST A YEAR TO GO AND A LOT OF CONVERSATION TO HAVE.

SO, YOU KNOW, IT WILL BE INTERESTING.

IT'S BEEN A HARD YEAR FOR A LOT OF REASONS.

AND OBVIOUSLY HE ANNOUNCED THAT HE WAS GOING TO RUN AGAIN A LITTLE LATE -- LATER THAN HE HAD ANTICIPATED.

BUT, YOU KNOW, WE'LL GET THROUGH THE HOLIDAYS AND NEW YEAR KICKOFF AND I HAVE A FEELING HE'LL DO A STRONG JOB.

>> Eric: RIPE OPPORTUNITY FOR REPUBLICANS?

>> IF YOU'RE AN INCUMBENT, YOU DON'T WANT TO START OFF THE ELECTION YEAR UNDER 50% APPROVAL, RIGHT?

THAT'S A BASELINE KIND F THING.

AND OBVIOUSLY THIS FRAUD SCANDAL IN MINNESOTA, WHICH IS UNPRECEDENTED, WHICH IS UNLIKE ANYTHING THAT'S HAPPENED IN ANY OTHER STATE, WE LEARNED THIS WEEK IT COULD BE $9 BILLION WORTH OF FRAUD IN OUR STATE, THIS IS ALL WEIGHING ON GOVERNOR WALZ.

AND THE THING IS, THEY'RE TRYING TO GET THEIR ARMS AROUND IT, BUT THE TOOTHPASTE IS OUT OF THE TUBE.

RIGHT?

YOU CAN'T JAM IT BACK IN.

SO THIS IS GOING TO BE SOMETHING THAT WE'RE GOING O HEAR ABOUT, TALK ABOUT, EVEN HAD DEMOCRATS THIS WEEK STARTING TO SAY, SHOULD WE TRY TO FIND SOMEBODY ELSE TO RUN?

THAT'S NOT THE KIND OF FOOTING YOU WANT TO START THE YEAR ON.

>> ERIC: WHAT ABOUT SOMEONE ELSE TO RUN?

ANY CHANCE?

>> WELL, I THINK, FIRST, LET ME JUST SAY, WITH REGARDS TO FRAUD, I THINK TWO THINGS CAN BE TRUE.

ONE, THAT THERE'S A PROBLEM THAT NEEDS TO BE ADDRESSED, ABSOLUTELY.

AND THAT THE ADMINISTRATION IS TAKING STEPS.

I THINK, HONESTLY, SHOULD HAVE TAKEN STEPS -- TAKEN STRONGER STEPS EARLIER.

BUT IT'S ALSO TRUE THAT REPUBLICANS ARE EITHER DOING NOTHING, IN THE CASE OF REPRESENTATIVE ROBBINS, WHO LEADS A COMMITTEE THAT -- THE ONLY COMMITTEE IN THE HOUSE THAT HAS A REPUBLICAN MAJORITY.

AND THEY'VE DONE LITERALLY NOTHING.

AND THEN THE U.S.

ATTORNEY WHO THREW OUT THAT NUMBER AND THERE'S A "STAR TRIBUNE" STORY THAT JUST POSTED JUST BEFORE WE WERE STARTING HERE WITH TOM HEFFELFINGER, WHO'S THE DISTRICT ATTORNEY, THE FORMER U.S.

ATTORNEY, SAYING THAT THOSE ARE WILD NUMBERS, THAT HE DID NOT BACK UP.

LIKE THAT'S, FRANKLY, A LIE, IT'S JUST A TRUMPAN PRESS CONFERENCE, IS WHAT HE GAVE, BECAUSE HE'S REPRESENTED AN ADMINISTRATION THAT HAS ITS GUNS TRAINED ON MINNESOTA, AS WE SEE BY EVERYTHING THAT'S HAPPENING IN THE SOMALI COMMUNITY.

>> FIRST OF ALL, THE U.S.

ATTORNEY, ACTING U.S.

ATTORNEY, JOE THOMPSON, WAS NOT THE TRUMPIAN APPOINTMENT.

HE WAS THERE BEFORE PRESIDENT TRUMP.

>> I DIDN'T SAY HE BEING TRUMPIAN.

>> PERHAPS.

THE FACT IS, WE'RE A BILLION DOLLARS, THAT'S WE CAN DOCUMENT, THAT'S DOCUMENTED LOSS.

THAT'S AN EXTRAORDINARY NUMBER.

>> THAT NUMBER IS ALSO NOT DOCUMENTED.

>> OH, IT MOST CERTAINLY IT.

YOU KNOW WHAT HAPPENED?

FOUR YEARS AGO TODAY, JOE TORCH SAID, WE ISSUED OUR FIRST INDICTMENTS IN FEEDING OUR FUTURE, FOUR YEARS, GOVERNOR WALZ HAS DENIED THAT THIS IS A PROBLEM, AND THAT'S WHY IT'S FESTERING SO BAD TODAY.

>> THAT IS SO NOT TRUE.

HE HAS NOT DENIED -- HE HAS NOT DENIED IT'S A PROBLEM.

AND HE HAS BEEN WORKING ON THE PROBLEM.

YOU KNOW, AND I DO THINK WHEN YOU THINK ABOUT -- SINCE WE STARTED THIS OFF WITH A CONVERSATION ABOUT THE ELECTION, WHEN YOU THINK ABOUT VOTERS, THEY'RE OOKING AT A LOT OF ISSUES THAT ARE AFFECTING THEIR LIVES.

AND IN THIS WEEK, WHEN A LOT OF US HAVE BEEN REMEMBERING ROB REINER AND HIS GOOD WORK, I KEEP THINKING ABOUT THE LINE FROM THE "AMERICAN PRESIDENT -- FROM THE AMERICAN PRESIDENT, WE HAVE A LOT OF SERIOUS PROBLEMS TO SOLVE AND WE NEED SERIOUS PEOPLE TO SOLVE THEM.

WHEN YOU LOOK AT THE THINGS THAT ARE BEING VISITED ON MINNESOTANS, THANKS TO DONALD TRUMP AND CONGRESSIONAL REPUBLICANS, HEALTHCARE PREMIUMS ESCALATING, GROCERY PRICES, ENERGY COSTS, LET'S LOOK AT WHAT'S GOING TO HAPPEN TO LIHEAP HERE IN MINNESOTA.

THE LIST GOES ON AND ON AND ON.

WE AVE A LOT OF PROBLEMS.

YES, FRAUD IS A PROBLEM.

I BELIEVE GOVERNOR WALZ IS TAKING GOOD STEPS TO FIX IT.

THEY'RE GOING TO BE THINKING ABOUT WHOLE BUNCH OF THINGS.

>> WELL, IT'S A NATIONAL EMBARRASSMENT RIGHT NOW.

PEOPLE ACROSS THE COUNTRY, WE HAD GUYS FROM PHILADELPHIA COME HERE AS FRAUD TOURISTS TO SET UP BUSINESSES AND THEN GO BACK AND BILL THE STATE FRAUDULENTLY.

I MEAN, THE FACT THAT THAT EVEN WOULD OCCUR, THAT YOU HAVE PEOPLE COMING TO OUR STATE TO COMMIT FRAUD, THIS IS HAPPENING HERE AND IT'S NOT HAPPENING IN OTHER STATES.

>> WHEN I OPENED THE "STAR TRIBUNE" PAGE TODAY, THE TOP STORY WAS ABOUT ALL THE FRAUD HAPPENING IN e-COMMERCE, AMAZON, TARGET, BEST BUY.

>> BUT WE CAN EXCUSE THAT THEN?

I MEAN, IF THAT HAPPENS, IT'S OKAY?

>> IF WE'RE NOT SURE IT'S HAPPENING IN OTHER STATES, IT'S A BIGGER PROBLEM IN ARIZONA AND CALIFORNIA.

AND, LISTEN, JUST TO BE CLEAR, THE ACCEPTABLE AMOUNT OF FRAUD IS ZERO.

>> RIGHT.

>> ABSOLUTELY.

>> HOW DID IT GO ON FOR SEVEN YEARS?

>> AND IT'S BEEN GOING ON AND IT'S BEEN -- THEY'VE BEEN WORKING ON -- THEY'VE BEEN WORKING ON THE ISSUE, BUT WHAT WE HAVE IS REPUBLICANS GRANDSTANDING, LITERALLY MAKING UP NUMBERS, FALSE NUMBERS, AND IN THE CASE OF REPRESENTATIVE ROBBINS, DOING LITERALLY NOTHING.

>> Cathy: AS YOU SAY, THE GOVERNOR'S WORKING ON THIS, BUT HE'S SO DAMAGED AT THIS POINT.

DO YOU REALLY THINK HE'S GOING TO RUN?

MIGHT SOMEONE TRY TO PRIMARY HIM?

>> I REALLY BELIEVE HE IS VULNERABLE FOR A PRIMARY.

AND I THINK HE'S REALLY VULNERABLE FOR DRAGGING DOWN THE REST OF THE TICKET AND THAT SHOULD BE WHAT HE SHOULD BE FOCUSED ON RIGHT NOW, E HAVE A .S.

SENATE RACE, WE HAVE ALL THE CONGRESSATE RACES, ALL THE CONSTITUTIONAL OFFICES AND 201 LEGISLATOR, THAT'S A LOT OF PEOPLE WHO DON'T WANT TO GO DOWN WITH A GUY WHO WASN'T MINDING THE STORE, AND THAT'S WHAT IT AMOUNTS TO.

>> BUT WHEN -- >> GOVERNOR WALZ WASN'T MINDING THE STORE, HE'S LIKE A DEAD MAN WALKING, POLITICALLY DEAD MAN WALKING AND HE DOESN'T REALIZE IT.

>> WHEN THE TRUMP ADMINISTRATION IS TARGETING MINNESOTA, WHICH IS WELL DOCUMENTED ACROSS SO MANY DIFFERENT AREAS OF OUR STATE'S LIFE AND NEEDS, WHEN YOU HAVE A PERSON WHO KNOWS WHAT THEY'RE DOING AND IS A STEADY LEADER LIKE TIM WALZ, I THINK PEOPLE, AS THEY FOCUS MORE ON THAT RACE, ARE GOING TO RECOGNIZE HOW VALUABLE HE IS TO THIS STATE.

>> Eric: NONBINDING STRAW POLL FROM THE REPUBLICAN STATE CENTRAL COMMITTEE, BAD RECORD OF PICKING THE EVENTUAL WINNER, BUT KENDALL QUAALS FIRST, NARROW SECOND IS SPEAKER DEMUTH, MIKE LINDELL, A PRETTY CREDIBLE THIRD.

>> LIKE YOU SAID, I THINK IT'S PICKED, EVENTUAL NO, PICKED, EVENTUAL NO NOMINEES ZEO TIMES IN THE LAST YEARS.

KENDALL QUALLS HAS BEEN WORKING THIS CROWD REALLY HARD.

GIVE HIM CREDIT.

HE KNOWS THAT'S WHERE THE PARTY ENDORSEMENT PROCESS WORKS, I GET THAT, UNDERSTAND IT.

SPEAKER DEMUTH, IN THE RACE A VERY SHORT AMOUNT OF TIME, DID VERY WELL IN THAT SAMPLE.

MIKE LINDELL HAS SOME FANS THERE, OBVIOUSLY.

BUT THIS IS A VERY SMALL SAMPLE OF THE REPUBLICAN ELECTORATE AND BASE.

AND I THINK MANY OF THE CANDIDATES ARE SAYING THAT THEY'RE PLANNING TO RUN IN A PRIMARY.

SO THAT'S DIFFERENT THAN WE'VE HAD IN SOME OF THE REPUBLICAN CASES IN THE PAST.

>> MORE IMPORTANTLY, IF YOU TAKE ALL THE CANDIDATES BELOW KENDALL QUALLS AND SPEAKER DEMUTH, THEY AMOUNT TO THE AMOUNT OF VOTES THAT THEY GOT.

REPUBLICANS WANT TO WIN, THEY UNDERSTAND WE HAVE A VERY DAMAGED GOVERNOR WHO IS INCAPABLE OF LEADING OUR STATE AT THIS POINT, AND IT'S TIME TO ELECT SOMEBODY -- OR NOMINATE SOMEBODY WHO CAN WIN.

>> AND SPEAKER DEMUTH IS BEGGING DONALD TRUMP FOR ENDORSEMENT, WHICH JUST SPEAKS TO WHAT THE PROBLEM IS FOR REPUBLICANS.

THAT, LIKE, YES, IT HAS NOT BEEN PREDICTIVE IN THE PAST BECAUSE THE BASE OF THE REPUBLICAN PARTY HAS SIGNIFICANTLY GONE FURTHER RIGHT THAN MINNESOTANS ARE.

AND SPEAKER DEMUTH, WHO HAS A DIFFERENT -- WHO HAS A PROFILE THAT DOES NOT SCREAM TRUMP, BY THE END OF THIS -- BY THE END OF THE CYCLE WILL BE 100% TRUMPIAN.

>> THAT WILL HAPPEN -- >> IT'S THE ONLY WAY TO BE A REPUBLICAN NOW.

>> THAT'S GOING TO TAG WHOEVER THE REPUBLICAN CANDIDATE IS WITH DONALD TRUMP.

[ OVERLAPPING CONVERSATION ] >> THEY'RE GOING TAG THEMSELVES.

>> YOU HAVE TO FIND A WAY TO THREAD THAT NEEDLE.

>> WE DON'T HAVE TO.

>> Eric: ONE AT A TIME.

>> IT'S ALL THAT THEY HAVE.

THAT'S THE ONLY THING -- >> IT'S A BIG THING.

HE'S THE PRESIDENT OF THE UNITED STATES WHO HAS -- WHO IS ATTACKING OUR STATE AND HAS DESTROYED THE ECONOMY.

IT'S A BIG DEAL.

>> DID DONALD TRUMP, WAS HE PRESIDENT FOUR YEARS AGO?

NO, HE WAS NOT.

WHEN THIS FRAUD STARTED, DONALD TRUMP WAS A PRIVATE CITIZEN.

THE FACT REMAINS -- >> HE HAS BEEN PRESIDENT THE LAST YEAR.

>> OPPORTUNITY TO RIP OFF THE TAXPAYERS -- >> Cathy: WHAT IF WE TALK ABOUT THE U.S.

SENATE RACE FOR JUST A SECOND.

SO, POSSIBLY TWO CANDIDATES, TWO NEW CANDIDATES ON THE REPUBLICAN SIDE, I MEAN, DAVID HANN JUMPING IN, FORMER STATE PARTY CHAIR, FORMER STATE LAWMAKER, BUT ALSO POSSIBLY MICHELLE THAT FOY 0 I CAN'T, FORMER NFL SIDELINE REPORTER.

>> FIRST OF LL, SENATOR HANN IS A GOOD, SOLID, CREDIBLE CANDIDATE, GOOD SIGN MOVING IN THAT DIRECTION.

AND EVERYBODY'S HEARING THAT MICHELLE THAT FOY I CAN'T IS SERIOUSLY CONSIDERING AND LIKELY TO GET IN THE RACE.

SHE IS A VERY INTERESTING CANDIDATE WITHOUT THE AGGAGE OF HAVING SERVED IN OFFICE WITH A BIG PLATFORM WHO KNOWS HOW TO GARNER AN AUDIENCE AND TALK TO PEOPLE.

LA -- TAFOYA.

SHE CAN RAISE MONEY NATIONALLY.

SHE WILL BE A FORMIDABLE CANDIDATE.

HE SAID PEGGY FLANAGAN HAS A PRETTY RELEASE OUT THIS AFTERNOON SAYING MICHELLE IS GOING TO GET IN, I NEED MORE MONEY TO BEAT HER, SHE'S GOT A NATIONAL PLATFORM.

FLANAGAN IS ALREADY PLANNING A FLANAGAN TAFOYA MATCH-UP.

>> THAT'S HOW PRIMARY MATCHESUP ORK.

FLANAGAN WILL RUN HER CAMPAIGN, CRAIG WILL RUN HER CAMPAIGN AS WELL, THAT'S NOT A SURPRISE AT ALL.

MY FORMER COLLEAGUE, SENATOR HANN, YOU KNOW, HE -- GOING BACK TO THE STRAW POLL, I THINK IT REFLECTS HOW FRAGMENTED THE REPUBLICAN PARTY IS RIGHT NOW.

AND GETTING A COALITION BEHIND HI OF THESE -- BEHIND ANY OF THESE CANDIDATES IS GOING TO BE INTERESTING TO SEE.

SENATOR HANN, HE HAD A CHALLENGE EVEN IN THE PARTY CHAIR POSITION.

AND, YOU KNOW, I THINK >> Mary: TAFOYA IS GOING TO E ANOTHER PERSON WHO IS JUST DOING DONALD TRUMP'S BIDDING, AND THAT'S GOING TO BE DIFFICULT FOR ANY REPUBLICAN THIS YEAR.

>> I THINK THIS SHOWS WHAT A GREAT OPPORTUNITY REPUBLICANS SEE NATIONWIDE FOR A PICKUP YEAR.

AND THAT'S WHY THE NATIONAL SENATORIAL COMMITTEE IS GETTING INVOLVED, BOTH SENATOR HANN, WHO'S AN HONORABLE, REALLY GOOD GUY, AND A GOOD CANDIDATE, OR MICHELLE TAFOYA EITHER ONE, I'D BE PROUD TO HAVE THEM AT THE TOP OF THE TICKET.

>> Cathy: YOU ALL DID A GREAT JOB.

VERY FESTIVE, BY THE WAY, XAVIER, THANK YOU.

HAPPY HOLIDAYS AND HAPPY NEW YEAR.

>> ALWAYS, HAPPY HOLIDAYS.

>> I'M URE HE'LL