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American Morning

Interview with Ty Hensley; "Promises, Promises": Taxes; Violence in Iraq

Aired September 22, 2004 - 09:30   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.


BILL HEMMER, CNN ANCHOR: Left lane's got to turn left out there, especially on a day like today. Looking up, blue skies here in New York City.
Welcome back, everybody. 9:30 here in New York City. Good to have you along with us today.

HEIDI COLLINS, CNN ANCHOR: Yes. And just in a few minutes, we're going to have the conversation with the brother of another U.S. hostage apparently killed in Iraq.

This is Jack Hensley. His brother, Ty, stopped by a little bit earlier and spoke very eloquently about his brother, saying that he is a good man and wanted to say goodbye to him and the family that he left behind. Very, very touching.

HEMMER: So human, too, in his comments, just about the personal side of Jack and what he did for him and his kids.

So, also this hour, Kelly Wallace back with us. Her series continues today -- campaign issues, where the two men stand on taxes and tax cuts. We'll get back to Kelly in a moment here.

In fact, we're going to go to her right now. She's doing double duty all week. Good morning to you.

KELLY WALLACE, CNN ANCHOR: Good morning, again, to you, Bill and Heidi. Good morning, everyone.

And we begin again in Iraq. Emergency crews in Baghdad are rushing to the scene of a new explosion. A witness says a suicide car bomber drove up to an American military convoy. These images just in to CNN. At least three vehicles are burning. Casualties are being reported, but no details are yet available. More information as we get it on this story here on AMERICAN MORNING.

The tobacco industry is set to tell its side of the story during opening statements at a trial this hour in Washington. The tobacco industry is being sued by the federal government for a record amount of money, almost $280 billion. The government claims the country's largest tobacco companies worked together for decades to mislead the public about the dangers of smoking.

And at this hour, Homeland Security Chief Tom Ridge is expected to speak at a Homeland Security Advisory Council meeting. Ridge will be speaking at the U.S. Coast Guard Headquarters in Washington. That's a quick look at the headlines. Back to Bill and Heidi.

HEMMER: All right, Kelly. Thanks for that.

COLLINS: Iraqi terrorists claim they have killed the other American hostage they were holding. The Iraqi police turned a headless body over to U.S. officials in Baghdad today. They're trying to find out if it is Jack Hensley.

Today would have been his 49th birthday. Hensley's brother told me he doesn't want Jack to be forgotten.

(BEGIN VIDEOTAPE)

TY HENSLEY, JACK HENSLEY'S BROTHER: The primary reason for my being here is a couple things. One is to let the world know who Jack Hensley was. His story will be out for a day or two, but the pain is going to be suffered for generations in my family.

Jack Hensley was an extraordinarily innocent man. He went over there to provide money -- or income for his family as a last resort. Jack Hensley was a volunteer in the rescue squad. He was my tee-ball coach. He put my toys together at Christmas. And he was the most incredible father to his 13-year-old daughter. Softball coach to her. And a matter of fact, he was my role model for my children, of course.

COLLINS: What has the U.S. government told you at this point about what happened?

HENSLEY: Well, Heidi, I've been out of contact with the media -- I mean, with everyone. I have not been able to talk to my sister-in- law since -- roughly a little after 3:00 yesterday. Her phones are jammed. Mine are jammed. We have no way to get in touch with each other because of this.

It's an international outcry, and people are just letting us know if there's anything they can do. But a 13-year-old daughter, in hearing of this news, is devastating. They've desecrated my family.

COLLINS: I know that you, as you said, you were in correspondence with him every day or so, talking about what he was doing there. Towards the last correspondence with him, was there any sort of indication that things were getting scary or threatening to his life?

HENSLEY: From my talking to Patty over the -- earlier in the last few days, that she and Jack had talked about it. And the risks were this -- they were starting to have guards not show up. And they lived in a very, you know, quiet home. And they just had, I guess, a -- very modest guards posted. I heard they were even unarmed.

They stopped showing up. And there were tipped off that one was not even -- he came back and said that he was threatened, if he came and worked again he'd be killed.

COLLINS: Did he mention anything about wanting to leave, wanting to just get out of there? I know he'd been trying to hang on for a year because of the financial benefits.

HENSLEY: You're right. Right. Patty wanted him home. She had -- she just -- her nerves couldn't take it anymore. And she pretty much had pleaded with him. But you know, and he's free, I guess, to get up and come home. But he did want to, you know, make it. And I guess he just felt that he wouldn't be treated like this.

COLLINS: I'm assuming that you'll work very hard to keep your brother's memory alive, especially for his daughter, Sara.

HENSLEY: Yes, ma'am. There's been a lot of people trying to help me, close friends. And they want to know what they can do. And actually, they took action. What they did is they created a fund to pay for Jack's little girl's college. And I don't know if you -- do you all have that posted?

COLLINS: Yes, we've got it here. It's on the screen now.

HENSLEY: You know, I just want -- the world needs to help take care of this child -- not now, but 20, 30 years from now. She needs help. We all need help. And not -- we just need people to help us and remember us and make us feel that Jack had and is remembered for being a good man.

(END VIDEOTAPE)

COLLINS: You can just see the pain all over his face.

In fact, the horrific news out of Iraq is an unfortunate backdrop to Ayad Allawi's visit to the United States. Iraq's interim prime minister will address a joint session of Congress tomorrow. At the United Nations yesterday, he thanked America for liberating his country.

Fawaz Gerges is professor of Middle Eastern studies at Sarah Lawrence College. He's joining us now to talk about Allawi's visit and growing violence in Iraq.

And as we look back on that interview a little bit earlier today, it's just -- it's heartbreaking to know that this is the route now that some of these terrorists have taken. But some people would say this is actually an indication that they're desperate.

FAWAZ GERGES, MIDDLE EAST EXPERT: I wish. I wish that these horrible acts were an indication of desperation. These 17-old-months insurgency has become stronger, more sophisticated, and more widespread all over Iraq by the day.

COLLINS: Why?

GERGES: The number of attacks against American forces reached 2,700 attacks in August from 700 in March -- 2,700 attacks. The beheading, the kidnapping of foreigners, including Americans, more than 300 Iraqis were killed in the last 10 days.

They control major cities and towns in Iraq. It's difficult for me to characterize these attacks as acts of desperation. I would say acts of sophistication and strategic escalation. That is a strategic -- serious, alarming, strategic escalation in Iraq

COLLINS: Why and how is the insurgency growing? I mean, are we talking about foreign fighters here?

GERGES: I think the conventional wisdom -- as you know, Prime Minister Allawi has and also the conventional wisdom has it that most fighters, most militants are coming from outside Iraq.

Yes, absolutely, there is a large terrorist element that exists in the insurgency, Heidi. That the consensus in Iraq, the consensus among activists, politicians, people who follow the insurgency, is the overwhelming number of insurgents are envisionist (ph) Iraqi Islamists, nationalists.

And this satisfied Iraqis. Foreign fighters are estimated, including by American specialists, to be in the hundreds, while envisionist (ph) Iraqi fighters can mobilize tens of thousands of fighters.

COLLINS: So, then, we are talking about Iraqis killing Iraqis?

GERGES: Absolutely. And this is really what's happening in the last few months that Iraqis not only killing Iraqis, but they're killing Iraqis in large numbers.

(INAUDIBLE) strife, and killings are increasing. And there is a serious threat that Iraq could plunge into civil war. Particularly -- I would argue, Heidi -- if the elections were to be held as scheduled in January without the full participation of the Sunni community, as seems to be the case, there is a real fear that Iraq could plunge into civil war.

Even though I believe -- even though I believe, Heidi, there are societal factor in Iraq that work against a civil war, even though there are deep religious and ethnic differences among Iraqis.

COLLINS: And still, Prime Minister Ayad Allawi saying the Iraqi people and the Iraqi government will win against the insurgency. So, it's a definitely a very tough challenge.

GERGES: I mean, let's hope the Iraqi people win, absolutely, and close the gates of hell that have been open in Iraq in the last 17 months.

COLLINS: Fawaz Gerges, we certainly appreciate your insight today. Thanks for being here -- Bill?

HEMMER: About 20 minutes now before the hour. As we've been talking about all week, one of the biggest complaints of voters during a presidential election cycle is that they do not hear enough about the issues.

And so, again today, we continue our series, "Promises, Promises: Five Days, Five Issues." And the focus today is taxes. The economy we find is often tied for number one as the top issue on voters' minds according to our polling. And Kelly Wallace back with us looking at this in depth now. Good morning, again, Kelly.

WALLACE: Good morning, again, Kelly.

KELLY WALLACE, CNN CORRESPONDENT: Good morning again, Bill.

And you know what we're trying to do in this series, clear through the attacks and the counterattacks and focus on the issues. And today, we took a look at what each candidate is promising to do when it comes to your money.

(BEGIN VIDEOTAPE)

WALLACE (voice over): First, the big picture -- the big deficit picture that is.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I can say to you that the deficit will be cut in half over the next five years.

WALLACE: Senator Kerry says he can accomplish that in four.

KERRY: We believe it's time for Washington to live within a budget just like you do.

WALLACE: But cutting in half a federal budget deficit, expected to reach a record $422 billion this year, translates into a case of simple arithmetic. To keep all their campaign promises, the candidates need to cut spending, raise your taxes, or both.

BUSH: And we've got to keep your taxes low.

WALLACE: The president promises to make permanent across-the- board tax cuts set to expire in 2010, but that would mean $1 trillion in lost government revenue. He also proposes allowing younger workers to invest social security payroll taxes in the stock market, but that could cost 2 trillion over the next 10 years, according to independent experts.

So, the president's wish list adds up to about 3 trillion over the next decade, and that doesn't include spending for the war in Iraq, homeland security, education and everything else.

So, how will President Bush bring down the deficit? He promises to restrain the growth in spending and make cuts to offset spending increases.

KERRY: We're going to cut taxes for the middle class.

WALLACE: Senator Kerry, for his part, promises to lower taxes on 98 percent of Americans, says he would raise taxes only on the wealthiest 2 percent, who make more than $200,000 per year. This would bring in $860 billion over 10 years, his campaign says. He promises to use that money to pay for new programs: 200 billion for education, 650 billion for health care. But other experts say his health care plan will cost much more. His wish list, like Mr. Bush's, does not include spending for the war, homeland security and everything else.

So, how would the senator cut down the deficit? He promises to impose spending caps and offset spending increases with mandatory spending cuts or tax increases.

Now the bottom line. The assessment from independent analysts that both candidates' promises would likely increase the deficit, not reduce it.

(END VIDEOTAPE)

WALLACE: But the message from both campaigns is that the candidates can keep their promises if they keep spending in check, if they grow the economy. But, Bill, bottom line here, both candidates wouldn't have a lot of wiggle room dealing with that multibillion- dollar deficit.

HEMMER: Today taxes. Tomorrow...

WALLACE: Jobs. Jobs, jobs, jobs We'll look at what each candidate promises to do when it comes to creating jobs in the U.S. and cutting down job losses in this country, and whether they can turn those promises into reality.

HEMMER: Also head to our Web site, too, CNN.com/am for more on Kelly's series throughout the week.

See you tomorrow.

WALLACE: All right then.

HEMMER: All right -- Heidi.

(WEATHER REPORT)

HEMMER: Also in a moment here, your cell phone number is private now. But that may not last long, so says Andy. We'll get back to that, "Minding Your Business."

And the 90-second poppers today looking at the latest version of the classic "Star Wars" trilogy. They'll tell us why some fans think George Lucas has gone over to the Dark Side.

Back in a moment.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

COLLINS: Oh, I love them. Anyway, it's "90-Second Pop" for a Wednesday with the pop players this morning. Andy Borowitz, the man, the myth, the author of "The Big Book of Shockers." That was a good one, huh? Sarah Bernard, contributing editor for "New York" magazine.

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: I need to write a book.

COLLINS: Yes. You'll get some snap for your entrance here for you. And author of "Soul City," Toure.

Thanks so much for being here, you guys.

TOURE, CNN POPULAR CULTURE CORRESPONDENT: Thank you.

COLLINS: Toure let's start with you. Britney Spears, OK, what is she worth, like, $100 million?

TOURE: Something like that.

COLLINS: First said that she wanted no prenuptial agreement with Kevin. Now she is saying, hmm, maybe I should.

TOURE: Yes.

COLLINS: What's up with this?

TOURE: Well, I'm very relieved that she has got a prenup, because I was trying to imagine the behind-the-music 10 years from now.

COLLINS: Yes, what went wrong?

TOURE: It would have been ugly.

ANDY BOROWITZ, AUTHOR, "THE BOROWITZ REPORT/BIG BOOK OF SHOCKERS": Yes, but it's still going to be good.

TOURE: It's still going to be good. But the biggest thing we've learned from this, or at least I've learned from this, is that growing up in public does strange things for you. Right? Like, Macaulay Culkin just got arrested.

COLLINS: Yes.

TOURE: Michael Jackson. We haven't heard from Liz Taylor in a while, but she's going to come back around soon. I mean, this is just bizarre. This is not about image. This is just something going on. She's looking for something in her personal life. Hopefully she'll go back to the studio. She hasn't had a good single in a long time.

BERNARD: That's very true.

TOURE: So, it's time to think about the career, honey. You got married. Move on.

COLLINS: What happened with the music anyway?

BERNARD: Well, and her next single is going to be "My Prerogative," right?

TOURE: "My Prerogative."

BERNARD: The Bobby Brown song. So, I don't know.

BOROWITZ: I actually got an original copy of the prenup faxed to me from a Kinko's. And it's got some amazing stuff in it. According to it, she gets to keep the bottle opener, which is I guess a big deal.

COLLINS: Oh.

BERNARD: Oh, that's valuable.

BOROWITZ: So, she didn't want to lose that.

COLLINS: OK, I'm so glad that you got that.

BOROWITZ: I did. And I think it's real.

COLLINS: all right...

BERNARD: I think in L.A. that there should be a law that if you are 22 and you have a bank account of over 100 million, it should just be, like, a law, prenups for everyone, yes.

COLLINS: We'll see. All right, Andy, let's talk about this painful issue this morning, "Star Wars."

BOROWITZ: "Star Wars?"

COLLINS: We're reminded that the very first one is 27-years-old.

BOROWITZ: Yes.

COLLINS: But now...

BOROWITZ: I wasn't around for that.

COLLINS: Yes, well...

BOROWITZ: But I understand it was very exciting.

COLLINS: Neither was I, of course. But...

BERNARD: None of us were.

COLLINS: The trilogy is coming out now on DVD.

BOROWITZ: Yes.

COLLINS: Some people are really fired up about it.

BOROWITZ: Yes.

COLLINS: Some people are very upset. What's the scoop?

BOROWITZ: Right. Well, I mean, I think most of us are pretty excited. There is such a hunger...

COLLINS: Why would you be upset?

BOROWITZ: Well, they've made some changes. They made some changes.

COLLINS: OK.

BOROWITZ: Actually, this is kind of a scoop. But I guess they digitally-removed Chewbacca and replaced him with Donald Trump, which is creating a lot of friction.

BERNARD: Same color of hair. It's OK.

BOROWITZ: Some people say they don't notice anything, that's it's seamless. But a lot of purists are upset by that.

COLLINS: I see.

BERNARD: I think as long as they have Princess Leia in her metal bikini, then...

TOURE: Right.

BERNARD: ... then no one is going to remember that.

(CROSSTALK)

TOURE: Right, right.

BERNARD: Don't you think?

TOURE: Right.

BERNARD: Maybe they're going to linger on that scene a little longer.

COLLINS: Thank you, Toure. And thanks Andy and Sarah, as well, you guys.

Bill, back over to you.

(END VIDEOTAPE)

HEMMER: All right, Heidi, thanks for that.

One phone company says it will not sell you out just to make a buck. Andy has that, "Minding Your Business" after this.

(COMMERCIAL BREAK)

HEMMER: There is breaking news out of the Middle East into to us here at CNN, confirming now an explosion in Jerusalem. Police say a suicide bomber has blown up a bus in Jerusalem. This is the French Hill neighborhood. Not a lot of information just yet. No word on casualties. But again, a few moments ago, there in Jerusalem, reports say an explosion. Police go one step further, saying a suicide bomber has blown up a bus. We'll get more when we get it out of Jerusalem in a moment here.

In the meantime, though, back here in New York with Andy Serwer, a check of the markets and other things.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, Bill.

News like that coming out of Israel, also the news out of Iraq, weighing on traders' minds this morning. Stocks are trading lower, as you can see here, down 70 on the Dow. The Nasdaq is even weaker that that, on a percentage basis.

Wendy's warning this morning, saying the storm's higher beef prices and legal settlements weighing heavily on that stock. It's down $2. FedEx trading down as well. Morgan Stanley warning this morning. So you can see, not a very positive environment to start the day on wall street.

Verizon is opting out of the national 411 program for cell phones. That means the cell phone directory will not have the largest player in the business. They've got 40 million customers. And that actually of course throws the whole business of a national directory for cell phones in doubt, and we'll have to see how that plays out. Lucent planning to cut back on benefits for its retirees. And that is not a happy situation there as well.

HEMMER: All right, the day after the Fed, too. Thank you, Andy.

SERWER: Yes, you're welcome.

COLLINS: And More on the CBS document scandal with Jack and the Question of the Day.

JACK CAFFERTY, CNN ANCHOR: Thanks, Heidi.

The question is whether or not that scandal has damaged the Kerry campaign. Gene in Redding says, "No. And I also think CBS' credibility will be better now, as they really have to watch exactly what they say as everyone will be paying more attention."

Pamela says, "Yes. The Kerry campaign is damaged. Rather, an aggressive reporter has crossed the line one too many times. His arrogant, unrepentant stance when doubts about the story first surfaced portrayed his true character. He needs to move on. CBS shouldn't just hang the woman, Mapes, out to dry." That would be the producer. "They need to go deeper in rectifying this portrayal of public trust."

And finally, Ed in Oklahoma City writes, "No. This is a problem for CBS and Dan Rather. As much as I dislike Kerry, he's clean. It's Dan Rather and his virulent dislike of the Bush family that suffer. He wanted to attack so badly, it clouded his judgment and whatever journalistic impartiality he may have had."

COLLINS: All right, Jack, lots of people responding to that one today, for sure. Also want to make sure we let you know that we will be following this story for you that Bill just mentioned, an explosion in Jerusalem area, the West Bank area, to be exact. We'll be following that for you here on CNN.

We'll be back in a moment.

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Aired September 22, 2004 - 09:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Left lane's got to turn left out there, especially on a day like today. Looking up, blue skies here in New York City.
Welcome back, everybody. 9:30 here in New York City. Good to have you along with us today.

HEIDI COLLINS, CNN ANCHOR: Yes. And just in a few minutes, we're going to have the conversation with the brother of another U.S. hostage apparently killed in Iraq.

This is Jack Hensley. His brother, Ty, stopped by a little bit earlier and spoke very eloquently about his brother, saying that he is a good man and wanted to say goodbye to him and the family that he left behind. Very, very touching.

HEMMER: So human, too, in his comments, just about the personal side of Jack and what he did for him and his kids.

So, also this hour, Kelly Wallace back with us. Her series continues today -- campaign issues, where the two men stand on taxes and tax cuts. We'll get back to Kelly in a moment here.

In fact, we're going to go to her right now. She's doing double duty all week. Good morning to you.

KELLY WALLACE, CNN ANCHOR: Good morning, again, to you, Bill and Heidi. Good morning, everyone.

And we begin again in Iraq. Emergency crews in Baghdad are rushing to the scene of a new explosion. A witness says a suicide car bomber drove up to an American military convoy. These images just in to CNN. At least three vehicles are burning. Casualties are being reported, but no details are yet available. More information as we get it on this story here on AMERICAN MORNING.

The tobacco industry is set to tell its side of the story during opening statements at a trial this hour in Washington. The tobacco industry is being sued by the federal government for a record amount of money, almost $280 billion. The government claims the country's largest tobacco companies worked together for decades to mislead the public about the dangers of smoking.

And at this hour, Homeland Security Chief Tom Ridge is expected to speak at a Homeland Security Advisory Council meeting. Ridge will be speaking at the U.S. Coast Guard Headquarters in Washington. That's a quick look at the headlines. Back to Bill and Heidi.

HEMMER: All right, Kelly. Thanks for that.

COLLINS: Iraqi terrorists claim they have killed the other American hostage they were holding. The Iraqi police turned a headless body over to U.S. officials in Baghdad today. They're trying to find out if it is Jack Hensley.

Today would have been his 49th birthday. Hensley's brother told me he doesn't want Jack to be forgotten.

(BEGIN VIDEOTAPE)

TY HENSLEY, JACK HENSLEY'S BROTHER: The primary reason for my being here is a couple things. One is to let the world know who Jack Hensley was. His story will be out for a day or two, but the pain is going to be suffered for generations in my family.

Jack Hensley was an extraordinarily innocent man. He went over there to provide money -- or income for his family as a last resort. Jack Hensley was a volunteer in the rescue squad. He was my tee-ball coach. He put my toys together at Christmas. And he was the most incredible father to his 13-year-old daughter. Softball coach to her. And a matter of fact, he was my role model for my children, of course.

COLLINS: What has the U.S. government told you at this point about what happened?

HENSLEY: Well, Heidi, I've been out of contact with the media -- I mean, with everyone. I have not been able to talk to my sister-in- law since -- roughly a little after 3:00 yesterday. Her phones are jammed. Mine are jammed. We have no way to get in touch with each other because of this.

It's an international outcry, and people are just letting us know if there's anything they can do. But a 13-year-old daughter, in hearing of this news, is devastating. They've desecrated my family.

COLLINS: I know that you, as you said, you were in correspondence with him every day or so, talking about what he was doing there. Towards the last correspondence with him, was there any sort of indication that things were getting scary or threatening to his life?

HENSLEY: From my talking to Patty over the -- earlier in the last few days, that she and Jack had talked about it. And the risks were this -- they were starting to have guards not show up. And they lived in a very, you know, quiet home. And they just had, I guess, a -- very modest guards posted. I heard they were even unarmed.

They stopped showing up. And there were tipped off that one was not even -- he came back and said that he was threatened, if he came and worked again he'd be killed.

COLLINS: Did he mention anything about wanting to leave, wanting to just get out of there? I know he'd been trying to hang on for a year because of the financial benefits.

HENSLEY: You're right. Right. Patty wanted him home. She had -- she just -- her nerves couldn't take it anymore. And she pretty much had pleaded with him. But you know, and he's free, I guess, to get up and come home. But he did want to, you know, make it. And I guess he just felt that he wouldn't be treated like this.

COLLINS: I'm assuming that you'll work very hard to keep your brother's memory alive, especially for his daughter, Sara.

HENSLEY: Yes, ma'am. There's been a lot of people trying to help me, close friends. And they want to know what they can do. And actually, they took action. What they did is they created a fund to pay for Jack's little girl's college. And I don't know if you -- do you all have that posted?

COLLINS: Yes, we've got it here. It's on the screen now.

HENSLEY: You know, I just want -- the world needs to help take care of this child -- not now, but 20, 30 years from now. She needs help. We all need help. And not -- we just need people to help us and remember us and make us feel that Jack had and is remembered for being a good man.

(END VIDEOTAPE)

COLLINS: You can just see the pain all over his face.

In fact, the horrific news out of Iraq is an unfortunate backdrop to Ayad Allawi's visit to the United States. Iraq's interim prime minister will address a joint session of Congress tomorrow. At the United Nations yesterday, he thanked America for liberating his country.

Fawaz Gerges is professor of Middle Eastern studies at Sarah Lawrence College. He's joining us now to talk about Allawi's visit and growing violence in Iraq.

And as we look back on that interview a little bit earlier today, it's just -- it's heartbreaking to know that this is the route now that some of these terrorists have taken. But some people would say this is actually an indication that they're desperate.

FAWAZ GERGES, MIDDLE EAST EXPERT: I wish. I wish that these horrible acts were an indication of desperation. These 17-old-months insurgency has become stronger, more sophisticated, and more widespread all over Iraq by the day.

COLLINS: Why?

GERGES: The number of attacks against American forces reached 2,700 attacks in August from 700 in March -- 2,700 attacks. The beheading, the kidnapping of foreigners, including Americans, more than 300 Iraqis were killed in the last 10 days.

They control major cities and towns in Iraq. It's difficult for me to characterize these attacks as acts of desperation. I would say acts of sophistication and strategic escalation. That is a strategic -- serious, alarming, strategic escalation in Iraq

COLLINS: Why and how is the insurgency growing? I mean, are we talking about foreign fighters here?

GERGES: I think the conventional wisdom -- as you know, Prime Minister Allawi has and also the conventional wisdom has it that most fighters, most militants are coming from outside Iraq.

Yes, absolutely, there is a large terrorist element that exists in the insurgency, Heidi. That the consensus in Iraq, the consensus among activists, politicians, people who follow the insurgency, is the overwhelming number of insurgents are envisionist (ph) Iraqi Islamists, nationalists.

And this satisfied Iraqis. Foreign fighters are estimated, including by American specialists, to be in the hundreds, while envisionist (ph) Iraqi fighters can mobilize tens of thousands of fighters.

COLLINS: So, then, we are talking about Iraqis killing Iraqis?

GERGES: Absolutely. And this is really what's happening in the last few months that Iraqis not only killing Iraqis, but they're killing Iraqis in large numbers.

(INAUDIBLE) strife, and killings are increasing. And there is a serious threat that Iraq could plunge into civil war. Particularly -- I would argue, Heidi -- if the elections were to be held as scheduled in January without the full participation of the Sunni community, as seems to be the case, there is a real fear that Iraq could plunge into civil war.

Even though I believe -- even though I believe, Heidi, there are societal factor in Iraq that work against a civil war, even though there are deep religious and ethnic differences among Iraqis.

COLLINS: And still, Prime Minister Ayad Allawi saying the Iraqi people and the Iraqi government will win against the insurgency. So, it's a definitely a very tough challenge.

GERGES: I mean, let's hope the Iraqi people win, absolutely, and close the gates of hell that have been open in Iraq in the last 17 months.

COLLINS: Fawaz Gerges, we certainly appreciate your insight today. Thanks for being here -- Bill?

HEMMER: About 20 minutes now before the hour. As we've been talking about all week, one of the biggest complaints of voters during a presidential election cycle is that they do not hear enough about the issues.

And so, again today, we continue our series, "Promises, Promises: Five Days, Five Issues." And the focus today is taxes. The economy we find is often tied for number one as the top issue on voters' minds according to our polling. And Kelly Wallace back with us looking at this in depth now. Good morning, again, Kelly.

WALLACE: Good morning, again, Kelly.

KELLY WALLACE, CNN CORRESPONDENT: Good morning again, Bill.

And you know what we're trying to do in this series, clear through the attacks and the counterattacks and focus on the issues. And today, we took a look at what each candidate is promising to do when it comes to your money.

(BEGIN VIDEOTAPE)

WALLACE (voice over): First, the big picture -- the big deficit picture that is.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I can say to you that the deficit will be cut in half over the next five years.

WALLACE: Senator Kerry says he can accomplish that in four.

KERRY: We believe it's time for Washington to live within a budget just like you do.

WALLACE: But cutting in half a federal budget deficit, expected to reach a record $422 billion this year, translates into a case of simple arithmetic. To keep all their campaign promises, the candidates need to cut spending, raise your taxes, or both.

BUSH: And we've got to keep your taxes low.

WALLACE: The president promises to make permanent across-the- board tax cuts set to expire in 2010, but that would mean $1 trillion in lost government revenue. He also proposes allowing younger workers to invest social security payroll taxes in the stock market, but that could cost 2 trillion over the next 10 years, according to independent experts.

So, the president's wish list adds up to about 3 trillion over the next decade, and that doesn't include spending for the war in Iraq, homeland security, education and everything else.

So, how will President Bush bring down the deficit? He promises to restrain the growth in spending and make cuts to offset spending increases.

KERRY: We're going to cut taxes for the middle class.

WALLACE: Senator Kerry, for his part, promises to lower taxes on 98 percent of Americans, says he would raise taxes only on the wealthiest 2 percent, who make more than $200,000 per year. This would bring in $860 billion over 10 years, his campaign says. He promises to use that money to pay for new programs: 200 billion for education, 650 billion for health care. But other experts say his health care plan will cost much more. His wish list, like Mr. Bush's, does not include spending for the war, homeland security and everything else.

So, how would the senator cut down the deficit? He promises to impose spending caps and offset spending increases with mandatory spending cuts or tax increases.

Now the bottom line. The assessment from independent analysts that both candidates' promises would likely increase the deficit, not reduce it.

(END VIDEOTAPE)

WALLACE: But the message from both campaigns is that the candidates can keep their promises if they keep spending in check, if they grow the economy. But, Bill, bottom line here, both candidates wouldn't have a lot of wiggle room dealing with that multibillion- dollar deficit.

HEMMER: Today taxes. Tomorrow...

WALLACE: Jobs. Jobs, jobs, jobs We'll look at what each candidate promises to do when it comes to creating jobs in the U.S. and cutting down job losses in this country, and whether they can turn those promises into reality.

HEMMER: Also head to our Web site, too, CNN.com/am for more on Kelly's series throughout the week.

See you tomorrow.

WALLACE: All right then.

HEMMER: All right -- Heidi.

(WEATHER REPORT)

HEMMER: Also in a moment here, your cell phone number is private now. But that may not last long, so says Andy. We'll get back to that, "Minding Your Business."

And the 90-second poppers today looking at the latest version of the classic "Star Wars" trilogy. They'll tell us why some fans think George Lucas has gone over to the Dark Side.

Back in a moment.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

COLLINS: Oh, I love them. Anyway, it's "90-Second Pop" for a Wednesday with the pop players this morning. Andy Borowitz, the man, the myth, the author of "The Big Book of Shockers." That was a good one, huh? Sarah Bernard, contributing editor for "New York" magazine.

SARAH BERNARD, CONTRIBUTING EDITOR, "NEW YORK" MAGAZINE: I need to write a book.

COLLINS: Yes. You'll get some snap for your entrance here for you. And author of "Soul City," Toure.

Thanks so much for being here, you guys.

TOURE, CNN POPULAR CULTURE CORRESPONDENT: Thank you.

COLLINS: Toure let's start with you. Britney Spears, OK, what is she worth, like, $100 million?

TOURE: Something like that.

COLLINS: First said that she wanted no prenuptial agreement with Kevin. Now she is saying, hmm, maybe I should.

TOURE: Yes.

COLLINS: What's up with this?

TOURE: Well, I'm very relieved that she has got a prenup, because I was trying to imagine the behind-the-music 10 years from now.

COLLINS: Yes, what went wrong?

TOURE: It would have been ugly.

ANDY BOROWITZ, AUTHOR, "THE BOROWITZ REPORT/BIG BOOK OF SHOCKERS": Yes, but it's still going to be good.

TOURE: It's still going to be good. But the biggest thing we've learned from this, or at least I've learned from this, is that growing up in public does strange things for you. Right? Like, Macaulay Culkin just got arrested.

COLLINS: Yes.

TOURE: Michael Jackson. We haven't heard from Liz Taylor in a while, but she's going to come back around soon. I mean, this is just bizarre. This is not about image. This is just something going on. She's looking for something in her personal life. Hopefully she'll go back to the studio. She hasn't had a good single in a long time.

BERNARD: That's very true.

TOURE: So, it's time to think about the career, honey. You got married. Move on.

COLLINS: What happened with the music anyway?

BERNARD: Well, and her next single is going to be "My Prerogative," right?

TOURE: "My Prerogative."

BERNARD: The Bobby Brown song. So, I don't know.

BOROWITZ: I actually got an original copy of the prenup faxed to me from a Kinko's. And it's got some amazing stuff in it. According to it, she gets to keep the bottle opener, which is I guess a big deal.

COLLINS: Oh.

BERNARD: Oh, that's valuable.

BOROWITZ: So, she didn't want to lose that.

COLLINS: OK, I'm so glad that you got that.

BOROWITZ: I did. And I think it's real.

COLLINS: all right...

BERNARD: I think in L.A. that there should be a law that if you are 22 and you have a bank account of over 100 million, it should just be, like, a law, prenups for everyone, yes.

COLLINS: We'll see. All right, Andy, let's talk about this painful issue this morning, "Star Wars."

BOROWITZ: "Star Wars?"

COLLINS: We're reminded that the very first one is 27-years-old.

BOROWITZ: Yes.

COLLINS: But now...

BOROWITZ: I wasn't around for that.

COLLINS: Yes, well...

BOROWITZ: But I understand it was very exciting.

COLLINS: Neither was I, of course. But...

BERNARD: None of us were.

COLLINS: The trilogy is coming out now on DVD.

BOROWITZ: Yes.

COLLINS: Some people are really fired up about it.

BOROWITZ: Yes.

COLLINS: Some people are very upset. What's the scoop?

BOROWITZ: Right. Well, I mean, I think most of us are pretty excited. There is such a hunger...

COLLINS: Why would you be upset?

BOROWITZ: Well, they've made some changes. They made some changes.

COLLINS: OK.

BOROWITZ: Actually, this is kind of a scoop. But I guess they digitally-removed Chewbacca and replaced him with Donald Trump, which is creating a lot of friction.

BERNARD: Same color of hair. It's OK.

BOROWITZ: Some people say they don't notice anything, that's it's seamless. But a lot of purists are upset by that.

COLLINS: I see.

BERNARD: I think as long as they have Princess Leia in her metal bikini, then...

TOURE: Right.

BERNARD: ... then no one is going to remember that.

(CROSSTALK)

TOURE: Right, right.

BERNARD: Don't you think?

TOURE: Right.

BERNARD: Maybe they're going to linger on that scene a little longer.

COLLINS: Thank you, Toure. And thanks Andy and Sarah, as well, you guys.

Bill, back over to you.

(END VIDEOTAPE)

HEMMER: All right, Heidi, thanks for that.

One phone company says it will not sell you out just to make a buck. Andy has that, "Minding Your Business" after this.

(COMMERCIAL BREAK)

HEMMER: There is breaking news out of the Middle East into to us here at CNN, confirming now an explosion in Jerusalem. Police say a suicide bomber has blown up a bus in Jerusalem. This is the French Hill neighborhood. Not a lot of information just yet. No word on casualties. But again, a few moments ago, there in Jerusalem, reports say an explosion. Police go one step further, saying a suicide bomber has blown up a bus. We'll get more when we get it out of Jerusalem in a moment here.

In the meantime, though, back here in New York with Andy Serwer, a check of the markets and other things.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning, Bill.

News like that coming out of Israel, also the news out of Iraq, weighing on traders' minds this morning. Stocks are trading lower, as you can see here, down 70 on the Dow. The Nasdaq is even weaker that that, on a percentage basis.

Wendy's warning this morning, saying the storm's higher beef prices and legal settlements weighing heavily on that stock. It's down $2. FedEx trading down as well. Morgan Stanley warning this morning. So you can see, not a very positive environment to start the day on wall street.

Verizon is opting out of the national 411 program for cell phones. That means the cell phone directory will not have the largest player in the business. They've got 40 million customers. And that actually of course throws the whole business of a national directory for cell phones in doubt, and we'll have to see how that plays out. Lucent planning to cut back on benefits for its retirees. And that is not a happy situation there as well.

HEMMER: All right, the day after the Fed, too. Thank you, Andy.

SERWER: Yes, you're welcome.

COLLINS: And More on the CBS document scandal with Jack and the Question of the Day.

JACK CAFFERTY, CNN ANCHOR: Thanks, Heidi.

The question is whether or not that scandal has damaged the Kerry campaign. Gene in Redding says, "No. And I also think CBS' credibility will be better now, as they really have to watch exactly what they say as everyone will be paying more attention."

Pamela says, "Yes. The Kerry campaign is damaged. Rather, an aggressive reporter has crossed the line one too many times. His arrogant, unrepentant stance when doubts about the story first surfaced portrayed his true character. He needs to move on. CBS shouldn't just hang the woman, Mapes, out to dry." That would be the producer. "They need to go deeper in rectifying this portrayal of public trust."

And finally, Ed in Oklahoma City writes, "No. This is a problem for CBS and Dan Rather. As much as I dislike Kerry, he's clean. It's Dan Rather and his virulent dislike of the Bush family that suffer. He wanted to attack so badly, it clouded his judgment and whatever journalistic impartiality he may have had."

COLLINS: All right, Jack, lots of people responding to that one today, for sure. Also want to make sure we let you know that we will be following this story for you that Bill just mentioned, an explosion in Jerusalem area, the West Bank area, to be exact. We'll be following that for you here on CNN.

We'll be back in a moment.

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