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American Morning

A Midwestern Blitz; U.S. Forces Pounding Falluja Again Today

Aired October 15, 2004 - 08:00   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: A Midwestern blitz. The presidential candidates fix their sights on swing states in a sprint to the finish.
U.S. forces pounding Falluja again today, an assault that has put American troops inside the city for the first time in months.

And the Yankees fans...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Who is your daddy?

UNIDENTIFIED MALE: Who's your daddy?

UNIDENTIFIED MALE: Who's your daddy, Pedro?

(END VIDEO CLIP)

COLLINS: Do the Red Sox have an answer to that question? One of the most heated rivalries in sports goes back to Boston. And so do the taunts.

On this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Soledad O'Brien and Bill Hemmer.

COLLINS: Whoa, it's getting vicious between the Sox and the Yankees, isn't it?

BILL HEMMER, CNN ANCHOR: Yes.

COLLINS: Good morning, everybody, once again.

I'm Heidi Collins in for Soledad.

HEMMER: I'm Bill Hemmer.

Good morning.

It makes that Houston-St. Louis series look tame, doesn't it?

COLLINS: Very, yes.

HEMMER: Game three tonight in Boston. Also, 18 days away, the campaigns at it again today. The candidates crisscrossing the Midwest today. The polls there say it is tight. Electoral votes are plentiful. We'll look at what each candidate sees as his advantage in a moment. A report from the trail in a second here.

COLLINS: Also, defense lawyers in the Michael Jackson case aggressively going after the district attorney in the case, trying to get charges against the superstar dropped. We'll talk to Lisa Bloom of Court TV about Jackson's underlying strategy.

HEMMER: They're trying just about everything. We'll get to Lisa on that.

What's happening with Jack Cafferty today?

JACK CAFFERTY, CNN CORRESPONDENT: Have you guys seen Eminem's new video, "Just Lose It?"

HEMMER: I have not, but you have.

CAFFERTY: It is a giant.

COLLINS: I've seen clips.

CAFFERTY: It mocks Michael Jackson. Eminem plays all the parts of Michael Jackson, when his hair caught fire during the Pepsi commercial. The funniest part of it comes right at the end of the video, when Jackson's nose falls off on the dance floor and it gets kicked away to the side and they've got pictures of this character that's supposed to be Michael Jackson running around furiously looking for his nose. He's got this big hole in the middle of his face.

Apparently Michael's not amused. But it's very, very well done.

COLLINS: The "90 Second Poppers" told us he certainly is not amused.

CAFFERTY: Yes. "Just Lose It." Excellent. Eminem. Check it out.

Coming up in the "Cafferty File," some choice words from former President Bush about filmmaker Michael Moore. We've got the videotape.

Plus my favorite story, a woman who sleepwalks for sex. And we're working on getting her name, address and phone number for you by the time we put this story on the air in about 40 minutes.

HEMMER: And Jack's trying to find out which crosswalk she's using today, too. I've got this image of Jack like looking at Eminem's video.

CAFFERTY: Why are you hitting me?

HEMMER: Too much.

We want to get to Kelly...

HEMMER: Soledad doesn't hit me.

COLLINS: Well, hey, she's coming back next week so you'll be in much better shape.

HEMMER: Kelly Wallace, good morning to you.

We want to get to some serious stuff out of Iraq today and we begin there -- good morning.

KELLY WALLACE, CNN CORRESPONDENT: Good morning to you all.

Good morning again, everyone.

We begin in Iraq this morning. A suicide bomber in Baghdad targeting Iraqi police vehicles. Officials say at least one person was killed. Nine others are wounded. And in Falluja, U.S. troops are pounding insurgent targets in an assault to root out the Abu Musab al- Zarqawi terror network. We'll have much more from our Pentagon correspondent, Jamie McIntyre, coming up.

The U.S. State Department is urging some Americans to flee Haiti, calling the security situation in the country "volatile." Officials say police there have not been able to stop violence in the wake of Hurricane Jeanne, which killed hundreds and left thousands homeless. All U.S. citizens were told to consider leaving the country last week.

And it happened again -- just last month dozens of asylum seekers snuck into the Canadian embassy in Beijing. Today, another group, apparently from North Korea, is making a desperate bid for freedom. Some 20 people crawled under barbed wire fences and scaled walls to get to the South Korean consulate in Beijing. The group is asking to be sent to South Korea.

That gets you caught up here.

Politics now -- Bill and Heidi -- 18 days left.

HEMMER: Yes. That's right.

WALLACE: I can't believe that.

HEMMER: Well, you were just on the campaign trail. Could you feel it out there?

WALLACE: You could feel it. So fun.

COLLINS: How could you not, huh?

WALLACE: I know. Exactly.

HEMMER: Thank you, Kelly.

We're starting out again this hour now, on the trail, Democrat John Kerry taking some tough political jabs at the White House, starting today in the battleground state of Iowa before heading off later to Wisconsin.

That is where Ed Henry is this morning, live in Milwaukee -- Ed, good morning there. ED HENRY, CNN CORRESPONDENT: Good morning, Bill.

Aides say that John Kerry has an extra bounce in his step these days. He feels he connected with the public and looked presidential in the debates, and out on the road that's translating into a more confident and aggressive candidate.

(BEGIN VIDEO TAPE)

HENRY (voice-over): Claiming victory in all three debates, a beaming John Kerry came to Las Vegas to court a key voting bloc -- senior citizens.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: And I hope you won't mind, however, if I hold off retirement for a few more years. There's one last job...

(APPLAUSE)

KERRY: There's one last job that I plan to take up this January.

HENRY: This crowd ate up Kerry's feisty attacks on President Bush's record.

KERRY: He can spin until he's dizzy, but at the end of the day, who, who, who does he think the American people are going to believe, George Bush or their own eyes?

HENRY: The candidate got so wound up, he couldn't resist a poke about Iraq, even as he focused on domestic matters.

KERRY: The truth is that after doing nothing to really lower the cost of prescription drugs for you, the president is now telling you that he solved the problem. Right. And those weapons of mass destruction are going to be found any day now.

HENRY: Kerry mocked the president for stopping in Vegas but skipping the AARP conference. The president sent the first lady instead.

Mr. Bush continued to jab at Kerry with a line from boxing legend Joe Lewis.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: He's running from his record, but he cannot hide.

HENRY: Kerry fired back that the taunt reminded him of another heavyweight clash, between George Foreman and Muhammad Ali.

KERRY: George Foreman threw punch after punch and Ali kind of stepped back and said to Foreman during this, to George Foreman, he said, "George, is that all you've got?"

(END VIDEO TAPE)

HENRY: John Kerry will come out swinging again today on another domestic issue, the economy. Here in Milwaukee, he will lay out his plan to create higher paying jobs. Then he will launch a bus tour through the State of Wisconsin with some members of the U.S. women's soccer team. Ten electoral votes at stake here, Bill, a big prize that John Kerry has to win -- Bill.

HEMMER: Ed Henry in Milwaukee.

Thanks, Ed -- Heidi.

COLLINS: Well, we just heard what John Kerry thinks about the president's record on the economy. But with us now to argue the president's position, Commerce Secretary Donald Evans.

He is live from the White House for us today.

Thank you for being with us, Mr. Secretary.

DONALD EVANS, COMMERCE SECRETARY: Sure, Heidi.

COLLINS: Appreciate your time.

EVANS: You bet.

COLLINS: Just yesterday, you know, the government reported that the trade deficit has jumped to a record $413 billion. Democrats say this is proof now that the administration is fiscally mismanaging the situation.

How does the Bush administration argue that?

EVANS: Well, Heidi, what I'd simply say to you is we've had the strongest economy of any country in the industrialized world. Right now our economy is growing faster than any economy in the industrialized world. Home ownership is at an all time record high. Household wealth is at an all time record high. Unemployment has dropped from 6.3 percent down to 5.4 percent. It's now well below the average unemployment in the last 30 years, below the '70s and the '80s and the '90s. Inflation is in check. Interest rates are at historically low levels.

We have a very, very strong economy.

What the president has done is he has taken a Clinton recession and turned it into the early stages of Bush prosperity.

Do we have more to do? Well, of course there's more to do. There's always more to do. If you have one person in this country that's out of work, needs a job, wants a job, we have work to do. And the president understands that. But this is a very strong economy and continues to get stronger.

COLLINS: But Secretary Evans, how will President Bush tackle this deficit, this number we've just given, $413 billion?

EVANS: Well, you know, hey, Heidi, listen, if you're talking about the good government deficit, what is happening is that it has been declining. Over the last year or so, it's already declined $100 billion and the estimate in January was $521 billion. Now it's down to $413 billion. The president has said that he would cut the deficit in half within the next five years. That's exactly what he will do.

John Kerry doesn't have a plan to cut the deficit in half. He has a plan to continue to increase the deficit. He keeps talking about his plans and his plans are to spend more money, particularly on programs like a government health run program, where he's talking about a $1.5 trillion program. Add that to the other promises he's made, that's $2.2 trillion that he said he's going to spend. How is he going to pay for it? Well, he's going to tax the American people.

The only thing he said he's going to tax are those that are wealthy, over $200,000. Those are the small business owners of America, the ones that are creating jobs all across America.

COLLINS: Well, you bring up...

EVANS: And that leaves about a $1.5 trillion gap, tax gap. So under Senator Kerry's plan, the deficit would do nothing but continue to climb.

COLLINS: Let me go to another comment made by Senator John Kerry at Wednesday's debate, in fact. He said that Bush is the first president in 72 years to actually preside over a net loss of jobs. In fact, let's take a look at a couple of these numbers on the screen and I'll get your reaction. 51 percent of debate watchers after that night said that Kerry would better handle the economy versus 46 percent for Bush.

What does the president need to do now to turn these numbers around?

EVANS: Well, Heidi, I think he continues to talk about his record, his very strong record on the economy, you know, taking the Clinton recession, turning it into a period of Bush prosperity. He's talking about the fact that unemployment now is below the levels of the last 30 years. He's been talking about the fact that he has a plan for the future to continue to grow this economy, like getting rid of junk and frivolous lawsuits that make it hard for this economy to be competitive, talk about this plan on energy.

Senator Kerry has continued to obstruct the president's plan on energy. I mean the president talked about early on how important an energy plan is to make sure that we provide available and affordable energy to people all across America.

COLLINS: Very quickly, sir...

EVANS: He put that out there...

COLLINS: ... before we let you go, is it a misconception that jobs and the economy are a problem in this country right now?

EVANS: It, listen, any time there is one person out there that needs a job, wants a job, we have work to do. Everybody knows that. But let me also say that right now, according to the Household Survey, which is the official government survey for employment status, there are more Americans working today ever in the history of our country -- 140 million Americans are going to work today. That's more than ever in the history of our country. So, you know, the trends continue to be our friends. We're headed in the right direction.

COLLINS: All right...

EVANS: And the worst thing we could would be to raise your taxes, which what Senator Kerry -- as I like to say, President Bush wants to sign the front of your check. Senator Kerry wants to sign the back of your check.

COLLINS: And we will have to leave it there this morning.

Commerce Secretary Don Evans, thanks for your time.

EVANS: Thank you very much.

COLLINS: Appreciate it.

EVANS: You bet.

COLLINS: Bill.

HEMMER: At 12 minutes past the hour, Heidi, the U.S. pounding Falluja again today. Earlier, forces targeting insurgent strongholds in and around the Sunni Triangle city. While Pentagon officials say this assault is not the long awaited offensive to retake that town, it could help pave the way.

Jamie McIntyre has more now from the Pentagon this morning.

(BEGIN VIDEO TAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): The ground assault was one of the biggest operations yet in Falluja and was designed to thwart attacks the U.S. believes were being planned to coincide with the Muslim holy month of Ramadan. Air strikes before the ground operations targeted what the U.S. says was a key planning center, a weapons storage facility, two safe houses, a terrorist meeting site and several illegal checkpoints, all allegedly used by the Abu Musab al-Zarqawi network.

Then, after nightfall, hundreds of U.S. Marines, Army soldiers and Iraqi special forces moved against other objectives in and around the city, according to a Marine with one of the units.

1ST LT. LYLE GILBERT, 1ST MARINE EXPEDITIONARY UNIT: The troops crossed the line of departure. We had artillery fire -- clipped fire going out. Aircraft have been moving through the area all day. Helicopters providing transport. It's been a pretty uncomfortable time. We have two battalions out there in maneuver right now dealing with the anti-Iraqi forces.

MCINTYRE: Pentagon officials say this is not the final battle for control of Fallujah, which has been under the control of insurgents for months.

GILBERT: It's a significant effort. And when all is said and done, it's going to be a lot less of the anti-Iraqi forces than we're dealing with right now.

MCINTYRE (on camera): The Marines have been anxious to retake Fallujah ever since their April offensive was cut short in favor of a political settlement that ultimately failed to restore security for Fallujah and left it a base of operations for the insurgents.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEO TAPE)

HEMMER: Also, hospital officials in Falluja say two people were killed and eight others wounded last night after a tank shell landed in a neighborhood there.

Much more on Iraq as we go on throughout the morning.

Here's Heidi now across the room.

COLLINS: We want to check on the weather now.

Chad Myers at the CNN Center with the very latest forecast -- good morning, Chad.

(WEATHER REPORT)

CHAD MYERS, CNN METEOROLOGIST: If you are flying today, you may want to try to get on the earliest flight possible, because by the time the evening flights come around, things could really be backed up, especially with all that rain in all of those big East Coast cities. Rain in Chicago, Cleveland, Cincinnati, Pittsburgh, Philly, New York, Boston. You get the idea. You get every airport like that wet, you're going to slow down some airplanes -- Heidi, back to you.

COLLINS: And just when I thought I had all the right stuff packed.

HEMMER: No, no, no, no, no, no, no. It's just getting it out of its system right now. We're going to be fine.

COLLINS: Oh. OK.

HEMMER: Yes, since when do you believe the weatherman?

COLLINS: I'm sticking with you, Chad.

Did you hear what he said?

HEMMER: I was just kidding.

MYERS: I heard him.

COLLINS: All right. MYERS: I'll get him.

HEMMER: It was a joke, yes, indeed. It was a joke, my man.

Thank you, Chad.

MYERS: All right.

HEMMER: In a moment, the FCC chimes in on Sinclair's anti-Kerry documentary, called "Stolen Honor." Our "Gimme A Minute" panel weighs in on that in a moment, and whether or not that was the right decision. We'll check on that.

COLLINS: Plus, not all beers are created equal. Can you believe it? We're "Paging Dr. Gupta" to find out which ones make people more tipsy than others.

HEMMER: Also, a legal setback for Michael Jackson. We'll talk to Lisa Bloom of Court TV and see what happened there in court.

COLLINS: And don't forget, next week it's AMERICAN MORNING in Chicago.

Soledad rejoins us for our week there.

AMERICAN MORNING will be back in a moment.

(COMMERCIAL BREAK)

HEMMER: There has been a setback for the king of pop. A judge denies a defense motion to dismiss Michael Jackson's child molestation matter.

Lisa Bloom, attorney and host of Court TV's "Trial Heat" my guest now.

Good morning to you.

LISA BLOOM, CENTER TV: Good morning.

HEMMER: Nice to see you again.

So the defense is basically saying on all these claims, the judge has to make the decision like whether or not the D.A. should be dismissed or not and whether the case should be thrown out. At this point they're losing.

Why?

BLOOM: That's right. It was a double win yesterday for the prosecution. The judge said in a written decision that there was enough evidence to go forward on the indictment, that Michael Jackson conspired for extortion, child abduction and false imprisonment against this child. The judge said the child's testimony alone was sufficient to go forward, not that they would necessarily win at trial, but there's enough to put this case in front of a jury. HEMMER: And so what his attorneys are doing is they're trying to be good attorneys, right?

BLOOM: Absolutely.

HEMMER: It's a high profile matter.

BLOOM: Sure.

HEMMER: They're essentially throwing everything at him and seeing what can stick.

Do you see it that way?

BLOOM: That's right. Well, that's what defense attorneys are paid to do, to get rid of evidence. The less evidence at trial the less likelihood that there's going to be a conviction. But also a big win yesterday for the prosecution that the evidence obtained from the private investigator, Bradley Miller, that it is going to come in, that Sneddon did nothing wrong.

And, you know, this district attorney has taken a lot of hits from the Jackson camp. The judge ruled in Sneddon's favor yesterday. That's a big win for the prosecution.

HEMMER: Do we have any idea what this evidence is, by the way?

BLOOM: Well, we think this is tapes. And what the prosecution says is that Jackson essentially forced the child to make videotapes exonerating him, saying that Michael Jackson is a good man and did nothing wrong. Other than that, because of the gag order in the case, we don't have a good idea.

The judge did give a small win to the defense by saying about 12 items out of the 150 were not part of the search warrant, were improperly seized and could not come into evidence.

HEMMER: The trial date, what, end of January?

BLOOM: January 31.

HEMMER: Are we still headed for that or not?

BLOOM: The judge says absolutely, I'm tired of your discovery disputes, both sides, we're going forward in January.

HEMMER: What happened with this bail argument here? Three million dollars?

BLOOM: That's right. Jackson's bail has been at $3 million. The defense has hotly contested that. Since it was set, the judge said he will rule on that in November. He reserved ruling. But it's very unlikely he's going to reduce the bail. The judge has already said Jackson is a very wealthy man with a lot of international connections. He's not shy about changing his appearance. If he wants to flee, he could very easily flee. And that's why the bail is set so high.

HEMMER: Thank you, Lisa.

Lisa Bloom from Court TV with us today.

BLOOM: Thank you.

HEMMER: Heidi.

COLLINS: Still to come, the biggest rivalry in pro sports gets a catchphrase. It's a little one-sided, though. Jeanne Moos looks at a question of parental heritage ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: As the election grows closer, the presidential candidates are being targeted more and more by the late night comedians.

David Letterman took a shot at the president last night.

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

DAVID LETTERMAN, HOST: A lot of insight from the debates last night. President Bush talked about his favorite painting at the White House and he said it inspires him to know that even a dog can draw a straight flush.

(END VIDEO CLIP)

COLLINS: I'm trying to figure out the artist of that fine painting. I couldn't figure the name out.

HEMMER: Hearts are wild.

Back to Jack now, The Question of the Day -- good morning.

CAFFERTY: Good morning.

A firestorm over John Kerry's reference to Dick Cheney's daughter during Wednesday's debate. Dick Cheney called himself a pretty angry father on Thursday, saying John Kerry is not a man of strong character.

Kerry said the remark was meant to be "positive" about families with gay children. Edwards' wife, John Edwards' wife Elizabeth yesterday suggested Lynne Cheney is ashamed of her daughter. It's getting nasty out there.

Here's the question, is it appropriate for Kerry and Edwards to be discussing the sexuality of Dick Cheney's daughter. Twelve hundred responses.

COLLINS: Really?

CAFFERTY: In an hour.

COLLINS: Wow!

CAFFERTY: Natalie in Mt. Lookout, West Virginia: "Yes, it was kind of a cheap shot. It is, however, true that the Cheneys do have a gay daughter. I wonder what the Republicans would have done with the very same information if Senator Kerry or Senator Edwards had a gay child."

Ann writes: "Mary Cheney plays a prominent role as a Bush-Cheney campaign official. It's unfair to say the Democrats are dragging her into this campaign. She's already a part of it."

Becky in New Orleans writes: "Give me a break, Jack. The Cheneys are using this statement and exploiting their own daughter for political gain. Now that's outrageous. By the way, Mary is 35 years old. She's not a kid."

Becky, 35 years old is a kid to me. I'm an old man.

Christopher in Los Angeles, California: "I'm ashamed to be a Republican. When did we become a party of whining old women? Kerry's question was appropriate because he answered a question using a high profile lesbian. Who was he going to use, Ellen DeGeneres? Richard Simmons? Liberace? How can you use Liberace if most Republicans are senile enough to believe he's straight?"

Christopher, he's also dead, I think. Isn't Liberace dead?

COLLINS: Yes.

HEMMER: Confirmed.

CAFFERTY: Yes. So that's that deal.

And Richard Simmons, I don't think, is a lesbian.

COLLINS: Yes.

CAFFERTY: Well, he might be, I don't know.

HEMMER: Confirmed.

CAFFERTY: What else have we got here? No, I was just, that's all.

HEMMER: Please tell.

CAFFERTY: That's all.

COLLINS: That's it.

HEMMER: That's it.

CAFFERTY: Yes. Out of 1,200 letters, that's what I picked.

HEMMER: Can you remember a presidential election where the spouses of the candidates were actually going (UNINTELLIGIBLE)?

CAFFERTY: No. I mean it's -- and the spouses of the vice presidential candidates. I mean it's just, it's silly. It's like the Hatfields and the McCoys out there.

HEMMER: Thank you, Jack.

Here we go.

In a moment, Democrats wanted the FCC to block Sinclair from airing that anti-Kerry film, "Stolen Honor." The agency now with an answer. "Gimme A Minute" takes a shot at that after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: It's all going to be OK.

Welcome back.

8:30 here in New York.

Good morning.

Sanjay is here in a moment, putting on his so-called beer goggles, looking at a trend to increase the alcohol content in beer. What brands are doing it and what are the health implications? The good doctor has some answers in a moment here.

COLLINS: And why are they doing it? Interesting to know.

Also this morning...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Who is your daddy?

UNIDENTIFIED MALE: Who's your daddy?

UNIDENTIFIED MALE: Who's your daddy, Pedro?

(END VIDEO CLIP)

COLLINS: We just can't seem to hear enough of it. The tiny little sound bite that has added a new chapter to baseball's fierce rivalry. Pedro said it. Now the Red Sox are hearing it. Who's your daddy?

Jeanne Moos looks at the birth of a rowdy phenomenon.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired October 15, 2004 - 08:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: A Midwestern blitz. The presidential candidates fix their sights on swing states in a sprint to the finish.
U.S. forces pounding Falluja again today, an assault that has put American troops inside the city for the first time in months.

And the Yankees fans...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Who is your daddy?

UNIDENTIFIED MALE: Who's your daddy?

UNIDENTIFIED MALE: Who's your daddy, Pedro?

(END VIDEO CLIP)

COLLINS: Do the Red Sox have an answer to that question? One of the most heated rivalries in sports goes back to Boston. And so do the taunts.

On this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Soledad O'Brien and Bill Hemmer.

COLLINS: Whoa, it's getting vicious between the Sox and the Yankees, isn't it?

BILL HEMMER, CNN ANCHOR: Yes.

COLLINS: Good morning, everybody, once again.

I'm Heidi Collins in for Soledad.

HEMMER: I'm Bill Hemmer.

Good morning.

It makes that Houston-St. Louis series look tame, doesn't it?

COLLINS: Very, yes.

HEMMER: Game three tonight in Boston. Also, 18 days away, the campaigns at it again today. The candidates crisscrossing the Midwest today. The polls there say it is tight. Electoral votes are plentiful. We'll look at what each candidate sees as his advantage in a moment. A report from the trail in a second here.

COLLINS: Also, defense lawyers in the Michael Jackson case aggressively going after the district attorney in the case, trying to get charges against the superstar dropped. We'll talk to Lisa Bloom of Court TV about Jackson's underlying strategy.

HEMMER: They're trying just about everything. We'll get to Lisa on that.

What's happening with Jack Cafferty today?

JACK CAFFERTY, CNN CORRESPONDENT: Have you guys seen Eminem's new video, "Just Lose It?"

HEMMER: I have not, but you have.

CAFFERTY: It is a giant.

COLLINS: I've seen clips.

CAFFERTY: It mocks Michael Jackson. Eminem plays all the parts of Michael Jackson, when his hair caught fire during the Pepsi commercial. The funniest part of it comes right at the end of the video, when Jackson's nose falls off on the dance floor and it gets kicked away to the side and they've got pictures of this character that's supposed to be Michael Jackson running around furiously looking for his nose. He's got this big hole in the middle of his face.

Apparently Michael's not amused. But it's very, very well done.

COLLINS: The "90 Second Poppers" told us he certainly is not amused.

CAFFERTY: Yes. "Just Lose It." Excellent. Eminem. Check it out.

Coming up in the "Cafferty File," some choice words from former President Bush about filmmaker Michael Moore. We've got the videotape.

Plus my favorite story, a woman who sleepwalks for sex. And we're working on getting her name, address and phone number for you by the time we put this story on the air in about 40 minutes.

HEMMER: And Jack's trying to find out which crosswalk she's using today, too. I've got this image of Jack like looking at Eminem's video.

CAFFERTY: Why are you hitting me?

HEMMER: Too much.

We want to get to Kelly...

HEMMER: Soledad doesn't hit me.

COLLINS: Well, hey, she's coming back next week so you'll be in much better shape.

HEMMER: Kelly Wallace, good morning to you.

We want to get to some serious stuff out of Iraq today and we begin there -- good morning.

KELLY WALLACE, CNN CORRESPONDENT: Good morning to you all.

Good morning again, everyone.

We begin in Iraq this morning. A suicide bomber in Baghdad targeting Iraqi police vehicles. Officials say at least one person was killed. Nine others are wounded. And in Falluja, U.S. troops are pounding insurgent targets in an assault to root out the Abu Musab al- Zarqawi terror network. We'll have much more from our Pentagon correspondent, Jamie McIntyre, coming up.

The U.S. State Department is urging some Americans to flee Haiti, calling the security situation in the country "volatile." Officials say police there have not been able to stop violence in the wake of Hurricane Jeanne, which killed hundreds and left thousands homeless. All U.S. citizens were told to consider leaving the country last week.

And it happened again -- just last month dozens of asylum seekers snuck into the Canadian embassy in Beijing. Today, another group, apparently from North Korea, is making a desperate bid for freedom. Some 20 people crawled under barbed wire fences and scaled walls to get to the South Korean consulate in Beijing. The group is asking to be sent to South Korea.

That gets you caught up here.

Politics now -- Bill and Heidi -- 18 days left.

HEMMER: Yes. That's right.

WALLACE: I can't believe that.

HEMMER: Well, you were just on the campaign trail. Could you feel it out there?

WALLACE: You could feel it. So fun.

COLLINS: How could you not, huh?

WALLACE: I know. Exactly.

HEMMER: Thank you, Kelly.

We're starting out again this hour now, on the trail, Democrat John Kerry taking some tough political jabs at the White House, starting today in the battleground state of Iowa before heading off later to Wisconsin.

That is where Ed Henry is this morning, live in Milwaukee -- Ed, good morning there. ED HENRY, CNN CORRESPONDENT: Good morning, Bill.

Aides say that John Kerry has an extra bounce in his step these days. He feels he connected with the public and looked presidential in the debates, and out on the road that's translating into a more confident and aggressive candidate.

(BEGIN VIDEO TAPE)

HENRY (voice-over): Claiming victory in all three debates, a beaming John Kerry came to Las Vegas to court a key voting bloc -- senior citizens.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: And I hope you won't mind, however, if I hold off retirement for a few more years. There's one last job...

(APPLAUSE)

KERRY: There's one last job that I plan to take up this January.

HENRY: This crowd ate up Kerry's feisty attacks on President Bush's record.

KERRY: He can spin until he's dizzy, but at the end of the day, who, who, who does he think the American people are going to believe, George Bush or their own eyes?

HENRY: The candidate got so wound up, he couldn't resist a poke about Iraq, even as he focused on domestic matters.

KERRY: The truth is that after doing nothing to really lower the cost of prescription drugs for you, the president is now telling you that he solved the problem. Right. And those weapons of mass destruction are going to be found any day now.

HENRY: Kerry mocked the president for stopping in Vegas but skipping the AARP conference. The president sent the first lady instead.

Mr. Bush continued to jab at Kerry with a line from boxing legend Joe Lewis.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: He's running from his record, but he cannot hide.

HENRY: Kerry fired back that the taunt reminded him of another heavyweight clash, between George Foreman and Muhammad Ali.

KERRY: George Foreman threw punch after punch and Ali kind of stepped back and said to Foreman during this, to George Foreman, he said, "George, is that all you've got?"

(END VIDEO TAPE)

HENRY: John Kerry will come out swinging again today on another domestic issue, the economy. Here in Milwaukee, he will lay out his plan to create higher paying jobs. Then he will launch a bus tour through the State of Wisconsin with some members of the U.S. women's soccer team. Ten electoral votes at stake here, Bill, a big prize that John Kerry has to win -- Bill.

HEMMER: Ed Henry in Milwaukee.

Thanks, Ed -- Heidi.

COLLINS: Well, we just heard what John Kerry thinks about the president's record on the economy. But with us now to argue the president's position, Commerce Secretary Donald Evans.

He is live from the White House for us today.

Thank you for being with us, Mr. Secretary.

DONALD EVANS, COMMERCE SECRETARY: Sure, Heidi.

COLLINS: Appreciate your time.

EVANS: You bet.

COLLINS: Just yesterday, you know, the government reported that the trade deficit has jumped to a record $413 billion. Democrats say this is proof now that the administration is fiscally mismanaging the situation.

How does the Bush administration argue that?

EVANS: Well, Heidi, what I'd simply say to you is we've had the strongest economy of any country in the industrialized world. Right now our economy is growing faster than any economy in the industrialized world. Home ownership is at an all time record high. Household wealth is at an all time record high. Unemployment has dropped from 6.3 percent down to 5.4 percent. It's now well below the average unemployment in the last 30 years, below the '70s and the '80s and the '90s. Inflation is in check. Interest rates are at historically low levels.

We have a very, very strong economy.

What the president has done is he has taken a Clinton recession and turned it into the early stages of Bush prosperity.

Do we have more to do? Well, of course there's more to do. There's always more to do. If you have one person in this country that's out of work, needs a job, wants a job, we have work to do. And the president understands that. But this is a very strong economy and continues to get stronger.

COLLINS: But Secretary Evans, how will President Bush tackle this deficit, this number we've just given, $413 billion?

EVANS: Well, you know, hey, Heidi, listen, if you're talking about the good government deficit, what is happening is that it has been declining. Over the last year or so, it's already declined $100 billion and the estimate in January was $521 billion. Now it's down to $413 billion. The president has said that he would cut the deficit in half within the next five years. That's exactly what he will do.

John Kerry doesn't have a plan to cut the deficit in half. He has a plan to continue to increase the deficit. He keeps talking about his plans and his plans are to spend more money, particularly on programs like a government health run program, where he's talking about a $1.5 trillion program. Add that to the other promises he's made, that's $2.2 trillion that he said he's going to spend. How is he going to pay for it? Well, he's going to tax the American people.

The only thing he said he's going to tax are those that are wealthy, over $200,000. Those are the small business owners of America, the ones that are creating jobs all across America.

COLLINS: Well, you bring up...

EVANS: And that leaves about a $1.5 trillion gap, tax gap. So under Senator Kerry's plan, the deficit would do nothing but continue to climb.

COLLINS: Let me go to another comment made by Senator John Kerry at Wednesday's debate, in fact. He said that Bush is the first president in 72 years to actually preside over a net loss of jobs. In fact, let's take a look at a couple of these numbers on the screen and I'll get your reaction. 51 percent of debate watchers after that night said that Kerry would better handle the economy versus 46 percent for Bush.

What does the president need to do now to turn these numbers around?

EVANS: Well, Heidi, I think he continues to talk about his record, his very strong record on the economy, you know, taking the Clinton recession, turning it into a period of Bush prosperity. He's talking about the fact that unemployment now is below the levels of the last 30 years. He's been talking about the fact that he has a plan for the future to continue to grow this economy, like getting rid of junk and frivolous lawsuits that make it hard for this economy to be competitive, talk about this plan on energy.

Senator Kerry has continued to obstruct the president's plan on energy. I mean the president talked about early on how important an energy plan is to make sure that we provide available and affordable energy to people all across America.

COLLINS: Very quickly, sir...

EVANS: He put that out there...

COLLINS: ... before we let you go, is it a misconception that jobs and the economy are a problem in this country right now?

EVANS: It, listen, any time there is one person out there that needs a job, wants a job, we have work to do. Everybody knows that. But let me also say that right now, according to the Household Survey, which is the official government survey for employment status, there are more Americans working today ever in the history of our country -- 140 million Americans are going to work today. That's more than ever in the history of our country. So, you know, the trends continue to be our friends. We're headed in the right direction.

COLLINS: All right...

EVANS: And the worst thing we could would be to raise your taxes, which what Senator Kerry -- as I like to say, President Bush wants to sign the front of your check. Senator Kerry wants to sign the back of your check.

COLLINS: And we will have to leave it there this morning.

Commerce Secretary Don Evans, thanks for your time.

EVANS: Thank you very much.

COLLINS: Appreciate it.

EVANS: You bet.

COLLINS: Bill.

HEMMER: At 12 minutes past the hour, Heidi, the U.S. pounding Falluja again today. Earlier, forces targeting insurgent strongholds in and around the Sunni Triangle city. While Pentagon officials say this assault is not the long awaited offensive to retake that town, it could help pave the way.

Jamie McIntyre has more now from the Pentagon this morning.

(BEGIN VIDEO TAPE)

JAMIE MCINTYRE, CNN CORRESPONDENT (voice-over): The ground assault was one of the biggest operations yet in Falluja and was designed to thwart attacks the U.S. believes were being planned to coincide with the Muslim holy month of Ramadan. Air strikes before the ground operations targeted what the U.S. says was a key planning center, a weapons storage facility, two safe houses, a terrorist meeting site and several illegal checkpoints, all allegedly used by the Abu Musab al-Zarqawi network.

Then, after nightfall, hundreds of U.S. Marines, Army soldiers and Iraqi special forces moved against other objectives in and around the city, according to a Marine with one of the units.

1ST LT. LYLE GILBERT, 1ST MARINE EXPEDITIONARY UNIT: The troops crossed the line of departure. We had artillery fire -- clipped fire going out. Aircraft have been moving through the area all day. Helicopters providing transport. It's been a pretty uncomfortable time. We have two battalions out there in maneuver right now dealing with the anti-Iraqi forces.

MCINTYRE: Pentagon officials say this is not the final battle for control of Fallujah, which has been under the control of insurgents for months.

GILBERT: It's a significant effort. And when all is said and done, it's going to be a lot less of the anti-Iraqi forces than we're dealing with right now.

MCINTYRE (on camera): The Marines have been anxious to retake Fallujah ever since their April offensive was cut short in favor of a political settlement that ultimately failed to restore security for Fallujah and left it a base of operations for the insurgents.

Jamie McIntyre, CNN, the Pentagon.

(END VIDEO TAPE)

HEMMER: Also, hospital officials in Falluja say two people were killed and eight others wounded last night after a tank shell landed in a neighborhood there.

Much more on Iraq as we go on throughout the morning.

Here's Heidi now across the room.

COLLINS: We want to check on the weather now.

Chad Myers at the CNN Center with the very latest forecast -- good morning, Chad.

(WEATHER REPORT)

CHAD MYERS, CNN METEOROLOGIST: If you are flying today, you may want to try to get on the earliest flight possible, because by the time the evening flights come around, things could really be backed up, especially with all that rain in all of those big East Coast cities. Rain in Chicago, Cleveland, Cincinnati, Pittsburgh, Philly, New York, Boston. You get the idea. You get every airport like that wet, you're going to slow down some airplanes -- Heidi, back to you.

COLLINS: And just when I thought I had all the right stuff packed.

HEMMER: No, no, no, no, no, no, no. It's just getting it out of its system right now. We're going to be fine.

COLLINS: Oh. OK.

HEMMER: Yes, since when do you believe the weatherman?

COLLINS: I'm sticking with you, Chad.

Did you hear what he said?

HEMMER: I was just kidding.

MYERS: I heard him.

COLLINS: All right. MYERS: I'll get him.

HEMMER: It was a joke, yes, indeed. It was a joke, my man.

Thank you, Chad.

MYERS: All right.

HEMMER: In a moment, the FCC chimes in on Sinclair's anti-Kerry documentary, called "Stolen Honor." Our "Gimme A Minute" panel weighs in on that in a moment, and whether or not that was the right decision. We'll check on that.

COLLINS: Plus, not all beers are created equal. Can you believe it? We're "Paging Dr. Gupta" to find out which ones make people more tipsy than others.

HEMMER: Also, a legal setback for Michael Jackson. We'll talk to Lisa Bloom of Court TV and see what happened there in court.

COLLINS: And don't forget, next week it's AMERICAN MORNING in Chicago.

Soledad rejoins us for our week there.

AMERICAN MORNING will be back in a moment.

(COMMERCIAL BREAK)

HEMMER: There has been a setback for the king of pop. A judge denies a defense motion to dismiss Michael Jackson's child molestation matter.

Lisa Bloom, attorney and host of Court TV's "Trial Heat" my guest now.

Good morning to you.

LISA BLOOM, CENTER TV: Good morning.

HEMMER: Nice to see you again.

So the defense is basically saying on all these claims, the judge has to make the decision like whether or not the D.A. should be dismissed or not and whether the case should be thrown out. At this point they're losing.

Why?

BLOOM: That's right. It was a double win yesterday for the prosecution. The judge said in a written decision that there was enough evidence to go forward on the indictment, that Michael Jackson conspired for extortion, child abduction and false imprisonment against this child. The judge said the child's testimony alone was sufficient to go forward, not that they would necessarily win at trial, but there's enough to put this case in front of a jury. HEMMER: And so what his attorneys are doing is they're trying to be good attorneys, right?

BLOOM: Absolutely.

HEMMER: It's a high profile matter.

BLOOM: Sure.

HEMMER: They're essentially throwing everything at him and seeing what can stick.

Do you see it that way?

BLOOM: That's right. Well, that's what defense attorneys are paid to do, to get rid of evidence. The less evidence at trial the less likelihood that there's going to be a conviction. But also a big win yesterday for the prosecution that the evidence obtained from the private investigator, Bradley Miller, that it is going to come in, that Sneddon did nothing wrong.

And, you know, this district attorney has taken a lot of hits from the Jackson camp. The judge ruled in Sneddon's favor yesterday. That's a big win for the prosecution.

HEMMER: Do we have any idea what this evidence is, by the way?

BLOOM: Well, we think this is tapes. And what the prosecution says is that Jackson essentially forced the child to make videotapes exonerating him, saying that Michael Jackson is a good man and did nothing wrong. Other than that, because of the gag order in the case, we don't have a good idea.

The judge did give a small win to the defense by saying about 12 items out of the 150 were not part of the search warrant, were improperly seized and could not come into evidence.

HEMMER: The trial date, what, end of January?

BLOOM: January 31.

HEMMER: Are we still headed for that or not?

BLOOM: The judge says absolutely, I'm tired of your discovery disputes, both sides, we're going forward in January.

HEMMER: What happened with this bail argument here? Three million dollars?

BLOOM: That's right. Jackson's bail has been at $3 million. The defense has hotly contested that. Since it was set, the judge said he will rule on that in November. He reserved ruling. But it's very unlikely he's going to reduce the bail. The judge has already said Jackson is a very wealthy man with a lot of international connections. He's not shy about changing his appearance. If he wants to flee, he could very easily flee. And that's why the bail is set so high.

HEMMER: Thank you, Lisa.

Lisa Bloom from Court TV with us today.

BLOOM: Thank you.

HEMMER: Heidi.

COLLINS: Still to come, the biggest rivalry in pro sports gets a catchphrase. It's a little one-sided, though. Jeanne Moos looks at a question of parental heritage ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COLLINS: As the election grows closer, the presidential candidates are being targeted more and more by the late night comedians.

David Letterman took a shot at the president last night.

(BEGIN VIDEO CLIP FROM "THE LATE SHOW WITH DAVID LETTERMAN, COURTESY CBS/WORLDWIDE PANTS)

DAVID LETTERMAN, HOST: A lot of insight from the debates last night. President Bush talked about his favorite painting at the White House and he said it inspires him to know that even a dog can draw a straight flush.

(END VIDEO CLIP)

COLLINS: I'm trying to figure out the artist of that fine painting. I couldn't figure the name out.

HEMMER: Hearts are wild.

Back to Jack now, The Question of the Day -- good morning.

CAFFERTY: Good morning.

A firestorm over John Kerry's reference to Dick Cheney's daughter during Wednesday's debate. Dick Cheney called himself a pretty angry father on Thursday, saying John Kerry is not a man of strong character.

Kerry said the remark was meant to be "positive" about families with gay children. Edwards' wife, John Edwards' wife Elizabeth yesterday suggested Lynne Cheney is ashamed of her daughter. It's getting nasty out there.

Here's the question, is it appropriate for Kerry and Edwards to be discussing the sexuality of Dick Cheney's daughter. Twelve hundred responses.

COLLINS: Really?

CAFFERTY: In an hour.

COLLINS: Wow!

CAFFERTY: Natalie in Mt. Lookout, West Virginia: "Yes, it was kind of a cheap shot. It is, however, true that the Cheneys do have a gay daughter. I wonder what the Republicans would have done with the very same information if Senator Kerry or Senator Edwards had a gay child."

Ann writes: "Mary Cheney plays a prominent role as a Bush-Cheney campaign official. It's unfair to say the Democrats are dragging her into this campaign. She's already a part of it."

Becky in New Orleans writes: "Give me a break, Jack. The Cheneys are using this statement and exploiting their own daughter for political gain. Now that's outrageous. By the way, Mary is 35 years old. She's not a kid."

Becky, 35 years old is a kid to me. I'm an old man.

Christopher in Los Angeles, California: "I'm ashamed to be a Republican. When did we become a party of whining old women? Kerry's question was appropriate because he answered a question using a high profile lesbian. Who was he going to use, Ellen DeGeneres? Richard Simmons? Liberace? How can you use Liberace if most Republicans are senile enough to believe he's straight?"

Christopher, he's also dead, I think. Isn't Liberace dead?

COLLINS: Yes.

HEMMER: Confirmed.

CAFFERTY: Yes. So that's that deal.

And Richard Simmons, I don't think, is a lesbian.

COLLINS: Yes.

CAFFERTY: Well, he might be, I don't know.

HEMMER: Confirmed.

CAFFERTY: What else have we got here? No, I was just, that's all.

HEMMER: Please tell.

CAFFERTY: That's all.

COLLINS: That's it.

HEMMER: That's it.

CAFFERTY: Yes. Out of 1,200 letters, that's what I picked.

HEMMER: Can you remember a presidential election where the spouses of the candidates were actually going (UNINTELLIGIBLE)?

CAFFERTY: No. I mean it's -- and the spouses of the vice presidential candidates. I mean it's just, it's silly. It's like the Hatfields and the McCoys out there.

HEMMER: Thank you, Jack.

Here we go.

In a moment, Democrats wanted the FCC to block Sinclair from airing that anti-Kerry film, "Stolen Honor." The agency now with an answer. "Gimme A Minute" takes a shot at that after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: It's all going to be OK.

Welcome back.

8:30 here in New York.

Good morning.

Sanjay is here in a moment, putting on his so-called beer goggles, looking at a trend to increase the alcohol content in beer. What brands are doing it and what are the health implications? The good doctor has some answers in a moment here.

COLLINS: And why are they doing it? Interesting to know.

Also this morning...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Who is your daddy?

UNIDENTIFIED MALE: Who's your daddy?

UNIDENTIFIED MALE: Who's your daddy, Pedro?

(END VIDEO CLIP)

COLLINS: We just can't seem to hear enough of it. The tiny little sound bite that has added a new chapter to baseball's fierce rivalry. Pedro said it. Now the Red Sox are hearing it. Who's your daddy?

Jeanne Moos looks at the birth of a rowdy phenomenon.

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