'This Week' Transcript: Holder and Giuliani

GIULIANI: No, I don't think so. I think the reality is that the Republican Party is very much based on its core principles. I think it's operating from its core principles. And I think that at this point, you know, President Obama has pushed the envelope so far that Republican Party wants to have candidates who are going to be -- be effective in standing up to the administration's inexorable march toward European social democracy.

I mean, I -- I see an administration that both in terms of economics and in terms of foreign policy, national security, seems to be moving us in the direction of European social democracy, with government taking over large segments of our -- of our economy, from car companies to banks to the energy industry, which they're trying to do, their health care industry, regulated in a minute (ph) way, the way the social democracies will -- which largely have failed in Europe -- have been doing now for -- you know, for several generations.

TAPPER: All right. Unfortunately...

GIULIANI: We need Republicans who are ideologically committed to standing up against that and really moving us in a different direction. I think that's what you see going on with the Tea Party movement. I think that's what you see going on in these -- in these elections.

TAPPER: All right, wonderful. Thank you so much, Mayor Giuliani. That's all the time we have.

GIULIANI: Thank you, Jake. Always nice to talk to you.

TAPPER: Appreciate it. Nice talking to you, sir.

The roundtable is next with George Will, Robin Wright, Shelby Steele, and John Podesta. And later, the Sunday funnies.

TAPPER: Scenes from the flash crash on Thursday. We'll get to the economy and the Greek debt crisis in a second with our roundtable. As always, George Will, Shelby Steele, author and a gentleman from the Hoover Institution, former Clinton White House chief of staff John Podesta of the Center for American Progress, and author and journalist Robin Wright of the center -- of the Institute of Peace. Did I get that right...

WRIGHT: U.S. Institute for Peace.

TAPPER: U.S. Institute for Peace. I'm sorry. I have so many organizations in my head.

We're going to get to the economy in a second, but I want to start with national security, given the conversations we just had with Attorney General Holder and Mayor Giuliani. George, what does this attempted terrorist attack say to you? What's the message from the attempted Times Square attack?

WILL: It is that the Pakistan connection, if true, is good news in the sense that it indicates the decline of the tradecraft of terrorism over time. The underwear bomber at Christmas and this man, also, are staggeringly incompetent and minor league figures compared to the amazing precision and scale of the 9/11 attacks.

Probably credit goes to both the Bush and the Obama administration for the extraordinary pressure with the drone attacks and all the rest that are being put on the Taliban and other supporters who are now footloose and having trouble coordinating.

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