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American Morning

Interview With Former FBI Assistant Director James Kallstrom; 'Political Pop'

Aired August 05, 2004 - 07:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


HEIDI COLLINS, CNN ANCHOR: It's just about half past the hour on this AMERICAN MORNING.
The latest terror warnings point to a chilling, a very real possibility that al Qaeda operatives are in New York and making plans. In a few minutes, we'll talk about the danger and the U.S. response with former FBI Assistant Director James Kallstrom.

BILL HEMMER, CNN ANCHOR: Also this half-hour, "Political Pop" a bit later. We're looking at an interesting match-up now possible in the Illinois Senate race. Could Alan Keyes stop the Democratic up- and-comer Barock Obama? If he goes from Maryland to the state of Illinois, how would they react to him? We'll get to that.

COLLINS: Maybe it will work.

All right. Also, our personal financial coach, David Bach, with us, talking about one of the biggest problems families face today. And that is getting out from under a mountain of debt. It can be done. David's going to show us how.

HEMMER: All right. In the meantime, though, Pakistani sources are telling CNN there is evidence that suspected al Qaeda members have recently contacted operatives in the U.S. and in Britain. How concerned are authorities? James Kallstrom, the former FBI assistant director, currently a senior counterterrorism adviser to New York's governor, George Pataki.

Good to see you again, and good morning to you.

JAMES KALLSTROM, SR. COUNTERTERRORISM ADVISER TO GOV. PATAKI: Hi, Bill. Good morning.

HEMMER: First stop, a story that CNN is working right now out of Albany, New York, in your home state. Federal agents apparently and city police raiding a Muslim mosque overnight. What have they found there? What have you found out about this raid?

KALLSTROM: A terrorist task force of the state works very closely -- state and local police work very closely with the three task forces in New York state. There is an operation going on. I'm not at liberty to talk about it, Bill. But there is an ongoing operation. I'm sure the FBI or the attorney general will comment on that later today.

HEMMER: Can you characterize how large the operation is? KALLSTROM: No. But I think it's a significant set of activities.

HEMMER: All right, let's turn our attention now to the possibility of al Qaeda operatives working in the New York City area. If it is true that they have this information out of Pakistan, if it's true that they're getting now information that some contact has been made, why is it so difficult to track down those operatives today in the city of New York?

KALLSTROM: Just walk out of your studio and that will tell you. You know, the 19 that were here before 9/11 lived -- you know, lived in the open, hid by being just another person in the United States. It's a huge country. You can come and go at will. You can be anybody you want to be for $100. You can buy identification.

It's a formidable task for the FBI and law enforcement. That's why we have combined all of the resources of state, local and federal agencies to work on this so we can triple coverage, Bill, around the state, around the region, and hopefully around the whole country, so we can see the indications and warnings of terrorism before the acts are carried out.

HEMMER: Tom Ridge was speaking with Aaron Brown last night here on CNN. Here's how he talked about the latest threat last evening.

(BEGIN VIDEO CLIP)

TOM RIDGE, HOMELAND SECURITY SECRETARY: We cannot afford to guess as to whether or not they're here or how many are here or when they might choose to attack. We operate, as you said, the working hypothesis is that those who would attack are here.

(END VIDEO CLIP)

HEMMER: He says you cannot guess. Are you advising Governor Pataki to assume they are here and getting ready at any point?

KALLSTROM: Well, I think, Bill, we have to make that assumption. I mean, we don't know what we don't know, unfortunately. And because, you know, we really have no baseline of who's here and what's in their minds. You know, we don't have computers to scan a large population of people to see if they have terrorist intent in their minds.

You know, we have to work with intelligence. We have to have human intelligence around the world.

The activities in the U.K. in the last day or so, those are the types of things that need to happen more. And we need to tie all these conspiracy tangles together.

I'll remind you that for the embassy bombings, as you know, Bill, they planned that for five years before they carried out the bombings. They planned all of these major events for years and years and years.

So, when you actually see, you know, the diagrams of buildings in New York City and Washington, D.C., you know, that should be an exclamation point to the people in the country, something that we in the business have known for a long time, that, you know, this is a real war. It's a real challenge to our democracy and our freedom. And we need to give law enforcement, the FBI in particular, the Central Intelligence Agency in particular, the tools to protect us from this menace.

HEMMER: The embassy bombings, referring to those in Eastern Africa back in August of 1998.

Quickly here, "The New York Times" is reporting this week that the mayor, Michael Bloomberg here in New York, is reacting differently this time. Does that fall in line with the information you have about this?

KALLSTROM: Well, the information is chilling. I mean, to actually see something that you know is probably happening, but to see the specifics of it, it is a bit chilling. It's not that surprising.

I can tell you that there was tremendous dissemination of the information by the state and local police. We were involved in the assessments of what should be done and shouldn't be done. There was no choice but to tell the people that run those facilities and the people that work in those facilities and the first responders what we found.

HEMMER: James Kallstrom live in Delaware this morning with us, thank you.

KALLSTROM: Thank you, Bill.

HEMMER: Heidi.

COLLINS: It's 35 minutes past the hour now. It's time for a look at some of today's other news and Daryn Kagan.

Hi -- Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, good morning.

We begin with heavy fighting in the Iraqi city of Najaf. U.S. and Iraqi security forces are battling a militia loyal to radical cleric Muqtada al Sadr. There are reports of at least 10 deaths in the heavy clashes. None of them are American.

So, amid the fighting, two U.S. service members were injured when their medical helicopter was shot down. The chopper was carrying one other wounded person.

To the Middle East now. Sources say that Israeli forces have pulled out of parts of Gaza after a six-week incursion there. Israeli troops have been trying to stop militants from firing makeshift rockets into Israel. A military official says the troops are not withdrawing, just moving into other towns.

Two-year-old conjoined twins from the Philippines are doing well this morning after surgery to separate them wrapped up just a few hours ago at a New York hospital. Doctors say the boys are strong and stable after long hours of delicate surgery. The boys were born joined at the tops of their heads.

And from the space world, Russia says there will be no more free rides to the International Space Station anymore. The Russian Space Agency will start charging the U.S. for deliveries to the space station. Only Russian spacecraft have been used since NASA's shuttle program was grounded by the space shuttle disaster last year.

I guess in principle they do have an agreement to split the check, but the U.S. has not been paying their part of the bill. The Russians are not too pleased about that -- Heidi.

COLLINS: Yes, maybe if they just show up with a couple of pizzas or something once they get there and cal it even.

KAGAN: Yes, I think it costs a little bit more than that just for the fuel.

COLLINS: Maybe. Good pizza!

KAGAN: Yes.

COLLINS: All right, Daryn, thanks so much.

(WEATHER BREAK)

HEMMER: It's 22 minutes now before the hour. It's time for "Political Pop." We're kind of throwing things around today with a lighter side.

On the left, Democratic strategic Kirsten Powers is back with us. Holding the middle, Andy Borowitz of BorowitzReport.com. And on the right, a first timer here on the "Pop," Republican strategist Joe Watkins.

Welcome. Good to have you here.

JOE WATKINS, REPUBLICAN STRATEGIST: Thanks. Nice to be here. Great to be here.

HEMMER: Let's start about the race in Illinois, first of all. Alan Keyes apparently is going to jump in on this.

WATKINS: Yes.

HEMMER: To take on Barock Obama. And the problem is Alan Keyes is from the state of Maryland, but Illinois law allows him to run if he moves there.

WATKINS: Absolutely, absolutely.

HEMMER: What does it say about the Republican Party in the state of Illinois? WATKINS: Well, it says that the Republican Party is anxious to field a candidate who can win. Remember, this is an open seat. This is not Barock Obama, the incumbent Democrat senator from the state of Illinois. He's a candidate for an open seat, and Republicans are doing the right thing by fielding a candidate who can win that open seat and represent the party, and also the people of the state of Illinois.

HEMMER: Land of Lincoln.

KIRSTEN POWERS, DEMOCRATIC STRATEGIST: There is no way that you believe what you just said.

WATKINS: Absolutely.

POWERS: No, come on. I mean, to run Alan Keyes, who doesn't even live in the state, who, you know, is a little bit far right, to say the least, against Obama, who, you know, has $10 million and is basically the second-coming. I mean, this is hardly something anyone could seriously be excited about.

WATKINS: Barock gave a very nice speech, of course.

POWERS: No, I mean...

WATKINS: He gave a real nice speech, but Illinoisans want to know, where's the beef? Where is the beef? And Alan Keyes is going to show them where the beef is.

POWERS: You're saying right here Alan Keyes is going to beat Barock Obama?

WATKINS: Alan Keyes is going to be a formidable candidate, and you can bet on that.

POWERS: Yes, exactly.

HEMMER: That's because Mike Ditka took a pass, Andy.

ANDY BOROWITZ, BOROWITZREPORT.COM: Wow! I don't know. You know, I think the Republicans deserve some credit here, because they're finally trying to get a black person a job, and they haven't even really shown a lot of interest in that over the years.

HEMMER: Oh, blame it on Jack Ryan.

Topic No. 2, there is an ad out this week, Vietnam veterans criticizing John Kerry's service in Southeast Asia 35 years ago. There is an ad out today by Will Ferrell criticizing George Bush as well.

Listen to how Will Ferrell's ad goes for a second here.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm getting my groove on, as they say. Ever since I've joined office, things have really, really, really gotten good. Hey, Hollywood, what do you think looks better?

(END VIDEO CLIP)

HEMMER: A little bit like Crawford, Texas.

POWERS: Yes, I mean...

HEMMER: Effective or not?

POWERS: I mean, it's funny. Unfortunately, it's not going to affect any votes. The only people that really are going to watch it are going to be the base. And the other thing is all of these ads are being targeted at swing voters, and you have to remember who swing voters really are. I mean, the undecided voters.

WATKINS: Well, that's a very small group this year. That's a very, very small group.

POWERS: There is a very small group of people who are undecided. And these are people who are undecided between John Kerry and George Bush, which is like watching "Star Wars" and not knowing whether you're rooting for Luke Skywalker or...

BOROWITZ: Speaking of that.

POWERS: I mean, it's truly, like, how can you be confused about this? So, what's going to swing them one way or the other?

BOROWITZ: You know, the real X-factor is, you know, have you seen the Nader ads? Because he's unveiled this new slogan for his campaign, which is "hemp is on the way." And it's great.

HEMMER: I want to know who plays John Kerry and John Edwards on "Saturday Night Live" this fall when the season starts up again.

Final topic...

WATKINS: Bring it on.

HEMMER: Yes. Nice. These musicians going on tour now, trying to get John Kerry in office. Here is what we know: Bruce Springsteen, Natalie Maines of the Dixie Chicks are going for John Kerry. Jessica Simpson and Ricky Martin in the past have said they support George Bush. Who draws the bigger crowd?

BOROWITZ: Well, you know, they all, each of them have their own issue. You know, like Bono, for example, world hunger is his big thing. Jessica Simpson thinks that women should have the right to vote. So, I mean, I think that they all have their thing. But, you know, personally, I think that, you know, I don't need, you know, musicians to tell me how to vote. I think that's what we have actors for. I really do.

WATKINS: That's a great point. A great point. You know what? The bash Bush tour, I have to give two thumbs down to. I just think that's the wrong message. I think that the uplifting message that Ricky Martin is giving and the others who support the president is much, much better, right on point.

POWERS: Don't forget about Kid Rock, who is actually supporting President Bush, who said that when we were done with Iraq, we should just roll through other countries and take them over.

BOROWITZ: No, he said we should take out "that guy" in North Korea. So he's sort of a news junkie, I think.

POWERS: Right.

HEMMER: Nice to see all three of you. Thanks for coming.

WATKINS: Thanks so much, Bill.

HEMMER: Here's Heidi again -- Heidi.

COLLINS: Still to come on AMERICAN MORNING, some people have called her the Lebron James of track and field.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I just think that the whole Olympic experience is just something that's, you know, really unique. And so, I'm just trying to, you know, take it all the whole Olympic Village and the opening ceremonies, and just all of the little things that kind of come along with being an Olympian.

(END VIDEO CLIP)

COLLINS: Can a fresh-face 18-year-old just out of high school save a sport mired in scandal? We'll take a look at that.

Plus, "Live Rich Today" with David Bach. Our personal finance coach will stop by. He'll have some easy tips on getting out from under a mountain of credit card debt.

Keep it here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: With Americans on average accumulating more than $8,000 in credit card debt, it's not easy seeing green; a sea of red that is. So, what's the best way to shorten your stay in plastic purgatory? That's good.

David Bach, our personal finance coach, is joining us now. He's also the author of "The Automatic Millionaire." He's got some tips in today's installment of "Live Rich Today."

OK, so a couple weeks ago we talked about good debt versus bad debt. Bad debt being this credit card debt.

DAVID BACH, CNN PERSONAL FINANCE COACH: Exactly.

COLLINS: The people who keep racking it up, I mean, are they just kind of stuck in this lifetime of bad dead? BACH: A lot of people are giving up. I mean, I'll give you a classic example. On the way over here, I told my cab driver what I was coming on here to talk about. He said, "I'm $20,000 in credit card debt. I'm just going bankrupt." I said, 'No. Stop and watch CNN.' Because there are a lot of things that you can do to get yourself out of credit card debt quickly, but you need to have a specific plan on how to go and do that.

COLLINS: What's that plan?

BACH: All right. First of all, let's take a look at what interest actually costs you on your credit card debt. We have a little thing here we can show: $8,400 in credit card debt. If you make minimum payments, and this is what most Americans do, you will actually take 30 years and 5 months to pay that off, and it will cost you $20,000.

Now, there's a very a quick tip that can cut 30 years in interest payments down to five years.

COLLINS: OK.

BACH: Are you ready for it?

COLLINS: Yes.

BACH: All right.

COLLINS: I'm taking notes.

BACH: Here's the deal. I've talked about this before. You want to find your latte factor. What's a latte factor? It's a society that we go out and we spend $5 a day on coffee...

COLLINS: Right.

BACH: ... or bottled water or cigarettes. That amount of money, $5 a day, in that example, on $8,400, if you applied an extra $5 a day to the credit card debt, you would be out of credit card debt in less than six years. So, you've shaved 24 years off your credit card payments and you've saved over $10,000 in interest payments.

COLLINS: How do you talk people out of stopping with the lattes and the water and the cigarettes, though? Maybe that's a question for another day.

BACH: No. It's laying out the math. What people don't realize with credit card debt is it's the interest rate that kills you. So, there are some very specific things that we can do to help people get out of those high interest rates.

COLLINS: OK. And they are?

BACH: One of those is call your credit card company right now and negotiate.

COLLINS: They will negotiate with you, won't they?

BACH: They will negotiate, because you're a hard person to find. They send out a billion application a year to get you. They will lower your interest rate just by asking. Right now, you should be able to call your credit card company and just by asking, threatening to move your account, get your rate lowered to below 10 percent.

You'll also find if you open up your mail today, most credit cards are offering 0 percent interest for nine months. So, you can actually just move your debt to a new credit card company and get zero interest.

COLLINS: Yes, is there any limit on that? I mean, can you just keep doing that for all of eternity, because you never pay the interest?

BACH: The truth is a lot of people are doing that. They are playing that game of what I call credit card roulette. But ultimately it can cost you, and I'll tell you why. People on average have over five credit card accounts, and they're making the minimum payments again, and then they're running late fees.

COLLINS: Right.

BACH: You've got to really watch the late fees. The late fees are killing people right now.

COLLINS: OK. So, you mentioned that people should DOLP it? I've got to tell you, DOLP, D-O-L-P.

BACH: What is DOLP? DOLP stands for "debt on last payment." Let's take a look at this. If you have five credit cards, the secret is the order in which you pay your credit cards off. You want to start with the smallest card first. The reason being, you'll pay that card off first. Then you've got less likelihood of having late payments. So, take the small cards, focus on them first, then go to the big cards.

COLLINS: Debt on last payment.

BACH: You got it.

COLLINS: We learned something today.

BACH: Debt on last payment.

COLLINS: David Bach, thanks so much for that.

BACH: Heidi, thanks.

COLLINS: And you can catch David right here on AMERICAN MORNING every Thursday with tips on how to "Live Rich Today." We like that.

Bill -- back over to you.

HEMMER: All right, Heidi, 11 minutes now before the hour. In a moment here, convicted rapist Mary Kay Letourneau is supposed to stay away from the man she seduced when he was just 12. But their separation may not last for long. We'll get to that after the break in a moment. Back after this.

(COMMERCIAL BREAK)

HEMMER: All right. Welcome back, everyone. And back to the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: And it's a dandy.

HEMMER: Oh, yes.

CAFFERTY: Thank you, Bill.

Mary Kay Letourneau, that elementary schoolteacher in Seattle, Washington, who began having sex with her 12-year-old student, and kept having sex with him until eventually they had a couple of kids, well, they locked her up. And she was released from prison yesterday after seven and a half years.

There is a court order in place that prohibits her from resuming her relationship with the victim. That would be Vili Fualaau. He's now 21, though, and he wants to get back together with her. And he wants the judge to let them do that, reunite, so to speak.

Here's the question. I thought we were going to hear him say that. That was my error. Excuse me. Should the courts keep Mary Kay Letourneau and her victim apart? That's the issue we're dwelling on here this morning.

COLLINS: We actually heard him say a little bit earlier that, yes, he still loves her.

CAFFERTY: Yes.

HEMMER: He said dwell.

CAFFERTY: Yes.

Kathy in New York writes: "Since they're both adults, there is nothing the courts can do to keep them apart."

Barry in Waynesboro, Pennsylvania, writes: "The order protecting him should be lifted. He's 21, and he can make his own choices. What I want to know is why she only did seven years and got to visit their two children? If it was a man who get his 12-year-old student pregnant twice, we'd be demanding his execution. She needs to go back to jail for another 20 years and never be allowed contact with a minor again."

Richard in Dallas writes: "That's their business. The boy's an adult now, and he's taking care of the children. They should be allowed to a family if they so desire." Sandy in Chesterfield, South Carolina: "Unfortunately, this has become a national joke. It really is not funny. I believe the two children should be removed from her care and influence, and that she should not be allowed around children."

And G.H. Fear (ph) in Des Moines writes: "I don't know and I don't care, but the quad cities are Davenport, Bettendorf, Moline and Rock Island."

HEMMER: They're still paying attention!

CAFFERTY: They got that quad cities thing nailed down.

HEMMER: Yes, they do.

COLLINS: He's going (UNINTELLIGIBLE).

CAFFERTY: AM@CNN.com.

HEMMER: We kind of battered that thing around for three hours yesterday, did we not?

CAFFERTY: Yes, well, it was a slow day.

COLLINS: Good stuff, that's for sure. All right, Jack, thanks.

The 2004 Summer Olympic Games get under way in two weeks in Athens, Greece. One of the athletes to watch is the youngest member of the American track and field team.

Frank Buckley has her story.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT (voice over): We caught up with Allyson Felix as she packed to leave L.A. Destination: the Olympics.

ALLYSON FELIX, OLYMPIC ATHLETE: It's just real exciting. It's just a dream come true.

BUCKLEY: We first met Allyson more than a year ago. She was only 17, still in high school, but already on a pace to become a star.

She had just run the 200 meter sprint in a record 22.11, joining the ranks of the fastest women in the world. She was being compared to the late, great, Florence Griffith Joyner and to Marion Jones.

(on camera): What's that like?

FELIX: It's a good complement.

BUCKLEY (voice over): It happens to be true, say experts, who are also taken with Allyson's poise and maturity. She became the Lebron James of track when she signed with Adidas right out of high school. FELIX: It's like I do something significant and I go to my mom.

BUCKLEY: But the shoes and attention haven't gone to her head, say observers, like 10-time Olympic medalist Carl Lewis, who has worked out with Allyson. He says, she's the real deal.

CARL LEWIS, OLYMPIC GOLD MEDALIST: She's a very pretty young lady. She's very well-rounded, talented, very focused, intelligent, articulate and clean. I mean, she has all of the things that we need to be a star, and that's what this sport needs.

BUCKLEY (on camera): Lewis is referring to the doping scandal that's descended over track and field during the past year. It hasn't come anywhere near Allyson Felix.

(voice over): Allyson's image, seen increasing increasingly in magazines and newspapers, is unblemished by scandal.

BRIAN CAZENEUVE, "SPORTS ILLUSTRATED": And I think she'll be very good for the sport, especially now, because track and field sort of needs people it can believe in.

BUCKLEY: Allyson appears ready for the responsibility.

FELIX: And it's great to just have a lot of other young people around me. And, you know, we're kind of just trying to make a new name for ourselves.

BUCKLEY: Allyson Felix, one new name to watch.

Frank Buckley, CNN, Los Angeles.

(END VIDEOTAPE)

COLLINS: Allyson is scheduled to compete in the 200 meters, but may also be drafted to run on one of the U.S. relay teams. So far it will be the 200, but 22.11, that's pretty darn fast.

HEMMER: Yes. It will be eight days and counting now to the opening games, right?

COLLINS: Pretty exciting.

HEMMER: We won't be there. Yes.

In a moment here, the Kobe Bryant trial is supposed to start in just a few weeks, but that case might be over before it begins. A bombshell in the Bryant case. We'll have it for you in a moment.

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Aired August 5, 2004 - 07:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: It's just about half past the hour on this AMERICAN MORNING.
The latest terror warnings point to a chilling, a very real possibility that al Qaeda operatives are in New York and making plans. In a few minutes, we'll talk about the danger and the U.S. response with former FBI Assistant Director James Kallstrom.

BILL HEMMER, CNN ANCHOR: Also this half-hour, "Political Pop" a bit later. We're looking at an interesting match-up now possible in the Illinois Senate race. Could Alan Keyes stop the Democratic up- and-comer Barock Obama? If he goes from Maryland to the state of Illinois, how would they react to him? We'll get to that.

COLLINS: Maybe it will work.

All right. Also, our personal financial coach, David Bach, with us, talking about one of the biggest problems families face today. And that is getting out from under a mountain of debt. It can be done. David's going to show us how.

HEMMER: All right. In the meantime, though, Pakistani sources are telling CNN there is evidence that suspected al Qaeda members have recently contacted operatives in the U.S. and in Britain. How concerned are authorities? James Kallstrom, the former FBI assistant director, currently a senior counterterrorism adviser to New York's governor, George Pataki.

Good to see you again, and good morning to you.

JAMES KALLSTROM, SR. COUNTERTERRORISM ADVISER TO GOV. PATAKI: Hi, Bill. Good morning.

HEMMER: First stop, a story that CNN is working right now out of Albany, New York, in your home state. Federal agents apparently and city police raiding a Muslim mosque overnight. What have they found there? What have you found out about this raid?

KALLSTROM: A terrorist task force of the state works very closely -- state and local police work very closely with the three task forces in New York state. There is an operation going on. I'm not at liberty to talk about it, Bill. But there is an ongoing operation. I'm sure the FBI or the attorney general will comment on that later today.

HEMMER: Can you characterize how large the operation is? KALLSTROM: No. But I think it's a significant set of activities.

HEMMER: All right, let's turn our attention now to the possibility of al Qaeda operatives working in the New York City area. If it is true that they have this information out of Pakistan, if it's true that they're getting now information that some contact has been made, why is it so difficult to track down those operatives today in the city of New York?

KALLSTROM: Just walk out of your studio and that will tell you. You know, the 19 that were here before 9/11 lived -- you know, lived in the open, hid by being just another person in the United States. It's a huge country. You can come and go at will. You can be anybody you want to be for $100. You can buy identification.

It's a formidable task for the FBI and law enforcement. That's why we have combined all of the resources of state, local and federal agencies to work on this so we can triple coverage, Bill, around the state, around the region, and hopefully around the whole country, so we can see the indications and warnings of terrorism before the acts are carried out.

HEMMER: Tom Ridge was speaking with Aaron Brown last night here on CNN. Here's how he talked about the latest threat last evening.

(BEGIN VIDEO CLIP)

TOM RIDGE, HOMELAND SECURITY SECRETARY: We cannot afford to guess as to whether or not they're here or how many are here or when they might choose to attack. We operate, as you said, the working hypothesis is that those who would attack are here.

(END VIDEO CLIP)

HEMMER: He says you cannot guess. Are you advising Governor Pataki to assume they are here and getting ready at any point?

KALLSTROM: Well, I think, Bill, we have to make that assumption. I mean, we don't know what we don't know, unfortunately. And because, you know, we really have no baseline of who's here and what's in their minds. You know, we don't have computers to scan a large population of people to see if they have terrorist intent in their minds.

You know, we have to work with intelligence. We have to have human intelligence around the world.

The activities in the U.K. in the last day or so, those are the types of things that need to happen more. And we need to tie all these conspiracy tangles together.

I'll remind you that for the embassy bombings, as you know, Bill, they planned that for five years before they carried out the bombings. They planned all of these major events for years and years and years.

So, when you actually see, you know, the diagrams of buildings in New York City and Washington, D.C., you know, that should be an exclamation point to the people in the country, something that we in the business have known for a long time, that, you know, this is a real war. It's a real challenge to our democracy and our freedom. And we need to give law enforcement, the FBI in particular, the Central Intelligence Agency in particular, the tools to protect us from this menace.

HEMMER: The embassy bombings, referring to those in Eastern Africa back in August of 1998.

Quickly here, "The New York Times" is reporting this week that the mayor, Michael Bloomberg here in New York, is reacting differently this time. Does that fall in line with the information you have about this?

KALLSTROM: Well, the information is chilling. I mean, to actually see something that you know is probably happening, but to see the specifics of it, it is a bit chilling. It's not that surprising.

I can tell you that there was tremendous dissemination of the information by the state and local police. We were involved in the assessments of what should be done and shouldn't be done. There was no choice but to tell the people that run those facilities and the people that work in those facilities and the first responders what we found.

HEMMER: James Kallstrom live in Delaware this morning with us, thank you.

KALLSTROM: Thank you, Bill.

HEMMER: Heidi.

COLLINS: It's 35 minutes past the hour now. It's time for a look at some of today's other news and Daryn Kagan.

Hi -- Daryn.

DARYN KAGAN, CNN ANCHOR: Heidi, good morning.

We begin with heavy fighting in the Iraqi city of Najaf. U.S. and Iraqi security forces are battling a militia loyal to radical cleric Muqtada al Sadr. There are reports of at least 10 deaths in the heavy clashes. None of them are American.

So, amid the fighting, two U.S. service members were injured when their medical helicopter was shot down. The chopper was carrying one other wounded person.

To the Middle East now. Sources say that Israeli forces have pulled out of parts of Gaza after a six-week incursion there. Israeli troops have been trying to stop militants from firing makeshift rockets into Israel. A military official says the troops are not withdrawing, just moving into other towns.

Two-year-old conjoined twins from the Philippines are doing well this morning after surgery to separate them wrapped up just a few hours ago at a New York hospital. Doctors say the boys are strong and stable after long hours of delicate surgery. The boys were born joined at the tops of their heads.

And from the space world, Russia says there will be no more free rides to the International Space Station anymore. The Russian Space Agency will start charging the U.S. for deliveries to the space station. Only Russian spacecraft have been used since NASA's shuttle program was grounded by the space shuttle disaster last year.

I guess in principle they do have an agreement to split the check, but the U.S. has not been paying their part of the bill. The Russians are not too pleased about that -- Heidi.

COLLINS: Yes, maybe if they just show up with a couple of pizzas or something once they get there and cal it even.

KAGAN: Yes, I think it costs a little bit more than that just for the fuel.

COLLINS: Maybe. Good pizza!

KAGAN: Yes.

COLLINS: All right, Daryn, thanks so much.

(WEATHER BREAK)

HEMMER: It's 22 minutes now before the hour. It's time for "Political Pop." We're kind of throwing things around today with a lighter side.

On the left, Democratic strategic Kirsten Powers is back with us. Holding the middle, Andy Borowitz of BorowitzReport.com. And on the right, a first timer here on the "Pop," Republican strategist Joe Watkins.

Welcome. Good to have you here.

JOE WATKINS, REPUBLICAN STRATEGIST: Thanks. Nice to be here. Great to be here.

HEMMER: Let's start about the race in Illinois, first of all. Alan Keyes apparently is going to jump in on this.

WATKINS: Yes.

HEMMER: To take on Barock Obama. And the problem is Alan Keyes is from the state of Maryland, but Illinois law allows him to run if he moves there.

WATKINS: Absolutely, absolutely.

HEMMER: What does it say about the Republican Party in the state of Illinois? WATKINS: Well, it says that the Republican Party is anxious to field a candidate who can win. Remember, this is an open seat. This is not Barock Obama, the incumbent Democrat senator from the state of Illinois. He's a candidate for an open seat, and Republicans are doing the right thing by fielding a candidate who can win that open seat and represent the party, and also the people of the state of Illinois.

HEMMER: Land of Lincoln.

KIRSTEN POWERS, DEMOCRATIC STRATEGIST: There is no way that you believe what you just said.

WATKINS: Absolutely.

POWERS: No, come on. I mean, to run Alan Keyes, who doesn't even live in the state, who, you know, is a little bit far right, to say the least, against Obama, who, you know, has $10 million and is basically the second-coming. I mean, this is hardly something anyone could seriously be excited about.

WATKINS: Barock gave a very nice speech, of course.

POWERS: No, I mean...

WATKINS: He gave a real nice speech, but Illinoisans want to know, where's the beef? Where is the beef? And Alan Keyes is going to show them where the beef is.

POWERS: You're saying right here Alan Keyes is going to beat Barock Obama?

WATKINS: Alan Keyes is going to be a formidable candidate, and you can bet on that.

POWERS: Yes, exactly.

HEMMER: That's because Mike Ditka took a pass, Andy.

ANDY BOROWITZ, BOROWITZREPORT.COM: Wow! I don't know. You know, I think the Republicans deserve some credit here, because they're finally trying to get a black person a job, and they haven't even really shown a lot of interest in that over the years.

HEMMER: Oh, blame it on Jack Ryan.

Topic No. 2, there is an ad out this week, Vietnam veterans criticizing John Kerry's service in Southeast Asia 35 years ago. There is an ad out today by Will Ferrell criticizing George Bush as well.

Listen to how Will Ferrell's ad goes for a second here.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm getting my groove on, as they say. Ever since I've joined office, things have really, really, really gotten good. Hey, Hollywood, what do you think looks better?

(END VIDEO CLIP)

HEMMER: A little bit like Crawford, Texas.

POWERS: Yes, I mean...

HEMMER: Effective or not?

POWERS: I mean, it's funny. Unfortunately, it's not going to affect any votes. The only people that really are going to watch it are going to be the base. And the other thing is all of these ads are being targeted at swing voters, and you have to remember who swing voters really are. I mean, the undecided voters.

WATKINS: Well, that's a very small group this year. That's a very, very small group.

POWERS: There is a very small group of people who are undecided. And these are people who are undecided between John Kerry and George Bush, which is like watching "Star Wars" and not knowing whether you're rooting for Luke Skywalker or...

BOROWITZ: Speaking of that.

POWERS: I mean, it's truly, like, how can you be confused about this? So, what's going to swing them one way or the other?

BOROWITZ: You know, the real X-factor is, you know, have you seen the Nader ads? Because he's unveiled this new slogan for his campaign, which is "hemp is on the way." And it's great.

HEMMER: I want to know who plays John Kerry and John Edwards on "Saturday Night Live" this fall when the season starts up again.

Final topic...

WATKINS: Bring it on.

HEMMER: Yes. Nice. These musicians going on tour now, trying to get John Kerry in office. Here is what we know: Bruce Springsteen, Natalie Maines of the Dixie Chicks are going for John Kerry. Jessica Simpson and Ricky Martin in the past have said they support George Bush. Who draws the bigger crowd?

BOROWITZ: Well, you know, they all, each of them have their own issue. You know, like Bono, for example, world hunger is his big thing. Jessica Simpson thinks that women should have the right to vote. So, I mean, I think that they all have their thing. But, you know, personally, I think that, you know, I don't need, you know, musicians to tell me how to vote. I think that's what we have actors for. I really do.

WATKINS: That's a great point. A great point. You know what? The bash Bush tour, I have to give two thumbs down to. I just think that's the wrong message. I think that the uplifting message that Ricky Martin is giving and the others who support the president is much, much better, right on point.

POWERS: Don't forget about Kid Rock, who is actually supporting President Bush, who said that when we were done with Iraq, we should just roll through other countries and take them over.

BOROWITZ: No, he said we should take out "that guy" in North Korea. So he's sort of a news junkie, I think.

POWERS: Right.

HEMMER: Nice to see all three of you. Thanks for coming.

WATKINS: Thanks so much, Bill.

HEMMER: Here's Heidi again -- Heidi.

COLLINS: Still to come on AMERICAN MORNING, some people have called her the Lebron James of track and field.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I just think that the whole Olympic experience is just something that's, you know, really unique. And so, I'm just trying to, you know, take it all the whole Olympic Village and the opening ceremonies, and just all of the little things that kind of come along with being an Olympian.

(END VIDEO CLIP)

COLLINS: Can a fresh-face 18-year-old just out of high school save a sport mired in scandal? We'll take a look at that.

Plus, "Live Rich Today" with David Bach. Our personal finance coach will stop by. He'll have some easy tips on getting out from under a mountain of credit card debt.

Keep it here on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: With Americans on average accumulating more than $8,000 in credit card debt, it's not easy seeing green; a sea of red that is. So, what's the best way to shorten your stay in plastic purgatory? That's good.

David Bach, our personal finance coach, is joining us now. He's also the author of "The Automatic Millionaire." He's got some tips in today's installment of "Live Rich Today."

OK, so a couple weeks ago we talked about good debt versus bad debt. Bad debt being this credit card debt.

DAVID BACH, CNN PERSONAL FINANCE COACH: Exactly.

COLLINS: The people who keep racking it up, I mean, are they just kind of stuck in this lifetime of bad dead? BACH: A lot of people are giving up. I mean, I'll give you a classic example. On the way over here, I told my cab driver what I was coming on here to talk about. He said, "I'm $20,000 in credit card debt. I'm just going bankrupt." I said, 'No. Stop and watch CNN.' Because there are a lot of things that you can do to get yourself out of credit card debt quickly, but you need to have a specific plan on how to go and do that.

COLLINS: What's that plan?

BACH: All right. First of all, let's take a look at what interest actually costs you on your credit card debt. We have a little thing here we can show: $8,400 in credit card debt. If you make minimum payments, and this is what most Americans do, you will actually take 30 years and 5 months to pay that off, and it will cost you $20,000.

Now, there's a very a quick tip that can cut 30 years in interest payments down to five years.

COLLINS: OK.

BACH: Are you ready for it?

COLLINS: Yes.

BACH: All right.

COLLINS: I'm taking notes.

BACH: Here's the deal. I've talked about this before. You want to find your latte factor. What's a latte factor? It's a society that we go out and we spend $5 a day on coffee...

COLLINS: Right.

BACH: ... or bottled water or cigarettes. That amount of money, $5 a day, in that example, on $8,400, if you applied an extra $5 a day to the credit card debt, you would be out of credit card debt in less than six years. So, you've shaved 24 years off your credit card payments and you've saved over $10,000 in interest payments.

COLLINS: How do you talk people out of stopping with the lattes and the water and the cigarettes, though? Maybe that's a question for another day.

BACH: No. It's laying out the math. What people don't realize with credit card debt is it's the interest rate that kills you. So, there are some very specific things that we can do to help people get out of those high interest rates.

COLLINS: OK. And they are?

BACH: One of those is call your credit card company right now and negotiate.

COLLINS: They will negotiate with you, won't they?

BACH: They will negotiate, because you're a hard person to find. They send out a billion application a year to get you. They will lower your interest rate just by asking. Right now, you should be able to call your credit card company and just by asking, threatening to move your account, get your rate lowered to below 10 percent.

You'll also find if you open up your mail today, most credit cards are offering 0 percent interest for nine months. So, you can actually just move your debt to a new credit card company and get zero interest.

COLLINS: Yes, is there any limit on that? I mean, can you just keep doing that for all of eternity, because you never pay the interest?

BACH: The truth is a lot of people are doing that. They are playing that game of what I call credit card roulette. But ultimately it can cost you, and I'll tell you why. People on average have over five credit card accounts, and they're making the minimum payments again, and then they're running late fees.

COLLINS: Right.

BACH: You've got to really watch the late fees. The late fees are killing people right now.

COLLINS: OK. So, you mentioned that people should DOLP it? I've got to tell you, DOLP, D-O-L-P.

BACH: What is DOLP? DOLP stands for "debt on last payment." Let's take a look at this. If you have five credit cards, the secret is the order in which you pay your credit cards off. You want to start with the smallest card first. The reason being, you'll pay that card off first. Then you've got less likelihood of having late payments. So, take the small cards, focus on them first, then go to the big cards.

COLLINS: Debt on last payment.

BACH: You got it.

COLLINS: We learned something today.

BACH: Debt on last payment.

COLLINS: David Bach, thanks so much for that.

BACH: Heidi, thanks.

COLLINS: And you can catch David right here on AMERICAN MORNING every Thursday with tips on how to "Live Rich Today." We like that.

Bill -- back over to you.

HEMMER: All right, Heidi, 11 minutes now before the hour. In a moment here, convicted rapist Mary Kay Letourneau is supposed to stay away from the man she seduced when he was just 12. But their separation may not last for long. We'll get to that after the break in a moment. Back after this.

(COMMERCIAL BREAK)

HEMMER: All right. Welcome back, everyone. And back to the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: And it's a dandy.

HEMMER: Oh, yes.

CAFFERTY: Thank you, Bill.

Mary Kay Letourneau, that elementary schoolteacher in Seattle, Washington, who began having sex with her 12-year-old student, and kept having sex with him until eventually they had a couple of kids, well, they locked her up. And she was released from prison yesterday after seven and a half years.

There is a court order in place that prohibits her from resuming her relationship with the victim. That would be Vili Fualaau. He's now 21, though, and he wants to get back together with her. And he wants the judge to let them do that, reunite, so to speak.

Here's the question. I thought we were going to hear him say that. That was my error. Excuse me. Should the courts keep Mary Kay Letourneau and her victim apart? That's the issue we're dwelling on here this morning.

COLLINS: We actually heard him say a little bit earlier that, yes, he still loves her.

CAFFERTY: Yes.

HEMMER: He said dwell.

CAFFERTY: Yes.

Kathy in New York writes: "Since they're both adults, there is nothing the courts can do to keep them apart."

Barry in Waynesboro, Pennsylvania, writes: "The order protecting him should be lifted. He's 21, and he can make his own choices. What I want to know is why she only did seven years and got to visit their two children? If it was a man who get his 12-year-old student pregnant twice, we'd be demanding his execution. She needs to go back to jail for another 20 years and never be allowed contact with a minor again."

Richard in Dallas writes: "That's their business. The boy's an adult now, and he's taking care of the children. They should be allowed to a family if they so desire." Sandy in Chesterfield, South Carolina: "Unfortunately, this has become a national joke. It really is not funny. I believe the two children should be removed from her care and influence, and that she should not be allowed around children."

And G.H. Fear (ph) in Des Moines writes: "I don't know and I don't care, but the quad cities are Davenport, Bettendorf, Moline and Rock Island."

HEMMER: They're still paying attention!

CAFFERTY: They got that quad cities thing nailed down.

HEMMER: Yes, they do.

COLLINS: He's going (UNINTELLIGIBLE).

CAFFERTY: AM@CNN.com.

HEMMER: We kind of battered that thing around for three hours yesterday, did we not?

CAFFERTY: Yes, well, it was a slow day.

COLLINS: Good stuff, that's for sure. All right, Jack, thanks.

The 2004 Summer Olympic Games get under way in two weeks in Athens, Greece. One of the athletes to watch is the youngest member of the American track and field team.

Frank Buckley has her story.

(BEGIN VIDEOTAPE)

FRANK BUCKLEY, CNN NATIONAL CORRESPONDENT (voice over): We caught up with Allyson Felix as she packed to leave L.A. Destination: the Olympics.

ALLYSON FELIX, OLYMPIC ATHLETE: It's just real exciting. It's just a dream come true.

BUCKLEY: We first met Allyson more than a year ago. She was only 17, still in high school, but already on a pace to become a star.

She had just run the 200 meter sprint in a record 22.11, joining the ranks of the fastest women in the world. She was being compared to the late, great, Florence Griffith Joyner and to Marion Jones.

(on camera): What's that like?

FELIX: It's a good complement.

BUCKLEY (voice over): It happens to be true, say experts, who are also taken with Allyson's poise and maturity. She became the Lebron James of track when she signed with Adidas right out of high school. FELIX: It's like I do something significant and I go to my mom.

BUCKLEY: But the shoes and attention haven't gone to her head, say observers, like 10-time Olympic medalist Carl Lewis, who has worked out with Allyson. He says, she's the real deal.

CARL LEWIS, OLYMPIC GOLD MEDALIST: She's a very pretty young lady. She's very well-rounded, talented, very focused, intelligent, articulate and clean. I mean, she has all of the things that we need to be a star, and that's what this sport needs.

BUCKLEY (on camera): Lewis is referring to the doping scandal that's descended over track and field during the past year. It hasn't come anywhere near Allyson Felix.

(voice over): Allyson's image, seen increasing increasingly in magazines and newspapers, is unblemished by scandal.

BRIAN CAZENEUVE, "SPORTS ILLUSTRATED": And I think she'll be very good for the sport, especially now, because track and field sort of needs people it can believe in.

BUCKLEY: Allyson appears ready for the responsibility.

FELIX: And it's great to just have a lot of other young people around me. And, you know, we're kind of just trying to make a new name for ourselves.

BUCKLEY: Allyson Felix, one new name to watch.

Frank Buckley, CNN, Los Angeles.

(END VIDEOTAPE)

COLLINS: Allyson is scheduled to compete in the 200 meters, but may also be drafted to run on one of the U.S. relay teams. So far it will be the 200, but 22.11, that's pretty darn fast.

HEMMER: Yes. It will be eight days and counting now to the opening games, right?

COLLINS: Pretty exciting.

HEMMER: We won't be there. Yes.

In a moment here, the Kobe Bryant trial is supposed to start in just a few weeks, but that case might be over before it begins. A bombshell in the Bryant case. We'll have it for you in a moment.

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