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American Morning
President Bush Expected to Send Congress Tightest Budget Since He Took Office; 'Kamber & May'
Aired February 07, 2005 - 08:30 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.
ROB MARCIANO, CNN ANCHOR: The administration is taking bold steps in the Middle East. We'll see if Victor Kamber and Cliff May, what they think about it. Is it a great stride or a big stumble?
SOLEDAD O'BRIEN, CNN ANCHOR: Before that, right to the headlines with Heidi Collins.
Good morning.
HEIDI COLLINS, CNN NEWS ANCHOR, AMERICAN MORNING: Good morning, guys. And good morning to you, everybody.
Once again, now in the news, Secretary of State Condoleezza Rice heading to Rome this hour, following a two-day visit to the Middle East. Rice announced Palestinian President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon have accepted invitations to meet in Washington this spring. Rice also said the U.S. will provide $40 million in aid to the Palestinians within the next 90 days.
The Vatican says the health of Pope John Paul II is continuing to improve. The 84-year-old pontiff made his first public appearance yesterday since being admitted to the hospital almost one week ago. Sources say the Pope is eating well and no longer has a fever. Still not clear, though, when he'll return to the Vatican. Sources say he will stay in the hospital a few more days just as a precaution.
In California, a delay in the Michael Jackson trial, jury selection on hold until next week, because a sister of Jackson's lead attorney, Tom Mesereau (ph), has died. Jackson issued public condolences to the family. Some 250 jurors will be assigned numbers today and sent home until February 14.
And it is one of the hottest shows on television, but will it hook even more viewers now with its latest plot twist? Reports that someone on ABC's "Desperate Housewives" is about to come out of the closet on the show and in real life. Word is the son of Marcia Cross, character Bree, will admit to be being gay. The rumor mill is also swirling that Marcia Cross will come out herself in the gay magazine "The Advocate." The magazine says it has nothing is planned. The plot thickens.
O'BRIEN: We'll have to wait and see. That would be the first time they've been announcing -- we're going to announce that a character is gay and then --
COLLINS: Yes, but you know there's enough going on in that show, I think ...
O'BRIEN: They don't need to stir the pot even more.
MARCIANO: They're so big, they can do just about anything.
COLLINS: I know. It's very true.
O'BRIEN: True. All right. Heidi, thanks.
COLLINS: Yes.
O'BRIEN: Today President Bush is expected to send to Congress the tightest budget since he took office. Next year, the Bush administration would like to increase military and international spending, while slashing about 150 domestic programs. White House Correspondent Dana Bash joins us live with more details.
Hey, Dana, good morning.
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.
When the president started his first term four years ago, the budget was in surplus. Of course, now it is at a record-high deficit. And for many in his own party, the most important campaign promise that the president has to fulfill is cutting that deficit in half in five years. And to that end, the administration is proposing what one official told us this morning is the biggest overall budget cut since Ronald Reagan was in office.
Let's take a look at some of the specifics. First of all, it's a $2.5 trillion budget. 150 programs will be proposed for elimination or to be reduced. That is everything from farm subsidies to education programs, even prescription drug benefits for some veterans. It will show a $427 billion deficit. Now, administration officials insist, of course, this is tight. But they say that they're eliminating mostly programs that are either redundant or simply a waste of taxpayer dollars.
(BEGIN VIDEO CLIP)
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: About 150 programs are slated to either be eliminated or reduced. But they're programs we've carefully evaluated, that we've looked at to see whether or not, are they doing what they're supposed to be doing.
I think you'll find, once people sit down and have a chance to look at the budget, that it is a fair, reasonable, responsible, serious piece of effort. It's not something we've done with a meat axe, nor are we suddenly turning our back on the most needy people in our society.
(END VIDEO CLIP)
BASH: The Bush budget does not include some big ticket items, including, for example, $80 billion the White House is also going to ask for war funding. $754 billion for the president's proposal for private accounts for Social Security. Because of that, many Democrats say the whole idea that the deficit will be cut in half is not true.
Now, there you see a picture from Capitol Hill of the budget actually arriving in Congress. Now, every one of these programs slated to be cut, of course, has a patron there in Congress or a special interest group. And by way of context, last year this White House proposed cutting or eliminating or at least reducing about 120 programs.
Soledad, only about a handful actually were eliminated or reduced. When it actually came out of Congress.
O'BRIEN: So, of course, that means we'll see which ones actually continue to live for another day.
BASH: Exactly.
O'BRIEN: You look at the picture of that budget handover there, that thing is not small. That's got to weigh at least 75 pounds. Dana Bash at the White House for us this morning. Dana, thanks a lot for that update.
Pitching for peace in the Middle East now. Secretary of State Condoleezza Rice met today with Palestinian President Mahmoud Abbas, a day after meeting with Israeli Prime Minister Ariel Sharon in Jerusalem. Joining us to talk about that, in Washington, Democratic consultant Victor Kamber with the Kamber Group. And Cliff May, he is a former RNC communications director. He's now with the Foundation for Defense of Democracies.
Good morning, gentlemen. Nice to see you as always.
VICTOR KAMBER, KAMBER GROUP: Good morning.
Let's talk about what Condoleezza Rice had to say this morning, because really, she's been working her way through the Middle East this weekend. First, she announced a carrot and stick approach; $40 million going within the next three months to the Palestinians. Also, a new security coordinator position, which would help coordinate security efforts and issues between the Israelis and the Palestinians.
Do you think, Cliff, that this is enough at this point?
CLIFF MAY, FOUNDATION FOR DEFENSE OF DEMOCRACY: Oh, it's never enough, but it's -- these are all steps forward. And in the Middle East, as you well know, if you can make two steps forward, with only one step back, you're making progress. We've been at this for more than 50 years. It is a difficult situation.
This is a hopeful time. I wouldn't go so far as to say I'm optimistic, but I'm hopeful. It is possible that at this point, the Palestinians, under Abbas -- may be willing to say, all right, we have to live side by side with Israel. We don't want to, but we will because this war cannot go on for another 100 years. We don't know that yet.
I think, look, what Condi Rice is doing, what the administration is doing is what people like my friend Victor have been arguing for. They're very much engaged in the process and are trying very hard best they can, to push the process forward.
O'BRIEN: Engaged, Victor, but not necessarily, at least this point, taking a leadership role. Do you think it's a big loss there?
KAMBER: Well, I'd like to associate myself with Cliff's remarks. They're engaged, as opposed to a deaf ear, which I think happened for the first four years. The fact is, they're trying, they're willing to put some money up. As opposed to bullets or as opposed to ignoring the situation.
Would I like to see more? Probably. But at least it's a step forward. At least the parties are talking and we're in encouraging it. I don't know a that we can ask for any more at this point, given this administration.
MAY: Soledad, you talk about a leadership role. I think it's important that we not be too much out front. The two parties have to want this and they have to be willing to make the compromises to get it. We can't make those compromises for them. We can't force them to do that. They have to be pushed in the leadership role at the end of the day.
O'BRIEN: Let's talk a little bit, changing gears, about what Secretary Rumsfeld had to say over the weekend. He says, 136,000 Iraqi troops are actually up and ready to go, although he called some of them green as grass, which isn't exactly confidence inspiring.
Victor, take a stab at this one. Do you think it's mistake for Democrats, especially, to be asking for a timeline when, frankly, the Iraqi troop strength is a big question mark?
KAMBER: I think you're asking two questions. Clearly, the numbers that were given, I have no confidence in. The fact that there's 136,000 numbers doesn't mean anything in terms -- if there are truly that many numbers, they're trained, capable, able to handle the situation.
And if they are, it's even more frightening, because that means we're talking about 275,000 or 300,000 troops there between Americans and Iraqis and we still have the problems.
In terms of the second part of your question, timeline, I think that what we need is a plan to end the hostilities, a plan that would bring in the rest of the world to help with the peacekeeping, a plan that would allow us to exit Iraq. Do I want a specific timetable? I probably do not, because I think there will be mass executions there, but I think we clearly, absolutely need a plan to extricate ourselves from Iraq.
MAY: What we're doing, Soledad, in Iraq is not peacekeeping. It's war fighting. When people ask for an exit strategy, they're making a big mistake. Would anyone have asked FDR, during World War II, what's your exit strategy from Europe or the Pacific? An exit strategy doesn't work. We need a strategy for victory or a strategy for defeat.
If it's a strategy for victory, we stay there as long as Zarqawi and other al Qaeda terrorists, as long as Ba'athists are fighting us and fighting the Iraqis. We fight our enemies wherever they are. Right now, most of them, the worst of them seem to be in Iraq. We stay there until we defeat them.
KAMBER: If we're calling this a war, ala World War II, let's be honest with the American people and say that. We haven't been honest. We've talked about a cleanup strategy, we've talked about an insurrection. We've talked about getting some terrorists. We've never outright said we're in a war, we're in a war to stay until we've won war.
MAY: Let me say it, and let me urge others to say it: We are in a war against terrorism, which really means a war against radical Islamic fascism. That war's front line right now is in Iraq. Zarqawi, the al Qaeda representative there, he knows it. I know it. I think you know it. I hope the administration knows it. Let's agree on that.
O'BRIEN: You guys, that's the final word this morning. Victor Kamber and Cliff May, nice to see you as always. Appreciate it.
KAMBER: Thank you.
MAY: Thank you.
O'BRIEN: Rob.
MARCIANO: The identity of the anonymous source who helped bring down an administration may soon be revealed. In yesterday's "L.A. Times," former Nixon White House aide John Dean writes that Deep Throat is ill. Bob Woodward couldn't confirm whether the man who helped him and Carl Bernstein investigate the Watergate scandal was sick. But Woodward yesterday did confirm Dean's claim that former "Washington Post" editor, Ben Bradley has already written Deep Throat's obituary.
Chad, I'm not sure how these top-gun news anchors transition out of those stories so help me out. What's going on weather wise.
(WEATHER FORECAST)
O'BRIEN: For the first time in nearly a decade, doctors have some new rules for mothers and breast feeding. We'll "Page Dr. Gupta" just ahead.
MARCIANO: Plus, a global headache for the Golden Arches, Andy's "Minding Your Business", that is all ahead on AMERICAN MORNING. Stay with us.
(COMMERCIAL BREAK)
O'BRIEN: Welcome back, everybody. We're "Paging Dr. Gupta" this morning about new guidelines for breast-feeding mothers. Sanjay joins us from the CNN Center with details. Good morning.
DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Good morning, Soledad.
Really interesting, some new recommendations coming out of the American Academy of Pediatrics. A little bit different, a little surprising to some in terms of breast feeding. First recommendations in about a year or so.
Most agree that there are significant virtues to breast feeding. The question has been for how long and how much? That's what the American Academy of Pediatrics tries to address here. Specifically, talking about breast feeding in the first six months. Saying exclusive breast feeding in the first six months is their minimum recommendation.
Also, evaluating the breast-fed newborn at three to five days old and again at two to three weeks to make sure they're breast feeding well, make sure they're not becoming dehydrated. Previous recommendations be that they be evaluated about four to six weeks.
Also, the question about where the infant should sleep, should the infant sleep in another room or close to the mother? American Academy of Pediatrics, again some recommendations on that, mother and infant should sleep near to each other. They recommend, specifically, a bassinet that actually attaches to the bed.
The reason for this they say, is the mother will more quickly be able to assess when a child is hungry. Crying is a late stage of hunger and may make it difficult for the baby to actually start breast feeding again, once they've already started crying.
They also address adoptive mothers, saying adoptive mothers should be counseled on what is known as induced lactation, so they may be able to breast feed as well.
Again, a little bit surprising to some, these new recommendations. But they're out there now for new mothers especially, Soledad.
O'BRIEN: We know it's better for moms to breast feed babies, but walk us through again why, specifically why it's better.
GUPTA: This has been studied quite a bit. Talking about both medical reasons, psychological reasons, and cognitive reasons. Some of them when you talk about breast feeding, again, for a minimum of six months, decreases infections, for example. It's going to decrease infections in the long term and may decrease allergies and incidence of asthma later in life.
Also, may reduce the incidence of infant death, specifically SIDS. No one is entirely sure as to why this is, but it does appear to pan out in some of the longer term data. Also it may boost brain development. Kids seem to have slightly sharper cognition when they enter school as compared to kids who were not breast fed for at least six months, Soledad.
O'BRIEN: Sanjay, how much weight does the American Academy of Pediatrics have, exactly, with the new assessment? Because frankly, not to get on my soapbox, but that would all be well and good, except women don't get six months off to sit around and breast feed their children, generally, paid. And there's no place to breast feed your kids if you're traveling, going through the airport. Usually, most offices don't have a place to breast feed your kids. So it's all well and good but hard to do in real life.
GUPTA: That is, in part, a large reason why they're so controversial, Soledad. You hit right on it. It's similar to a lot of the other associations, which make guidelines, for example, on obesity saying you need to exercise for 90 minutes a day.
Yes, these are the gold standards. There is a sort of a consensus that a lot of women don't do this. But if you're trying to strive for the gold standard, this is what they recommend. But it is hard for a lot of women, as you point out, Soledad.
O'BRIEN: We're all trying to strive for the gold standard, sometimes fall short, don't we?
All right. Sanjay, what's coming up on "New You Revolution"?
GUPTA: Yes, well, our "New Your Revolution" continues tomorrow. The spotlight will be on Sandra Garth. You remember her, she is the grandmother. As prescribed, she's eating better and exercising more. And she's been telling us all about it in her "New You Revolution" journal.
She's exceeding her daily step count, frequently going over her goal of 10,000 steps. She's setting an example, her grandson, Shannon, exercises with her. Her best news came via the Internet. Her son, Casey, who is Shannon's dad, stationed in Iraq, contacted her for the first time since Christmas. He told her he's doing OK and may leave Iraq by early March. And that he's seen her on CNN and CNN.com as well.
So you, too, can help along and follow our new you participants and e-mail them by logging on to the website, cnn.com/am. Good stuff there.
O'BRIEN: That is great news. Good for her. Lots of good news to report on her front. Wonderful. All right. Sanjay, look forward to that.
GUPTA: Yes, I'm so glad. Thank you.
MARCIANO: Soledad, a follow-up on a story we told you about on Friday in our "Extra Effort" segment. It is about a very sick 12-year- old boy from a remote village in Afghanistan, who is suffering from a potentially fatal heart defect. He was brought to America for surgery, thanks to a very determined National Guardsman from Utah.
A hospital spokeswoman tells us the little boy's surgery went well and he was released from the hospital yesterday.
O'BRIEN: Wow, so much good news to talk about this morning, Rob. Wow. Happy, happy day.
MARCIANO: Yes.
O'BRIEN: Well, the "Cafferty File" is just ahead. Jack has your chance to get a little face time with Ann Coulter. He'll explain just ahead as we continue here on AMERICAN MORNING.
(COMMERCIAL BREAK)
O'BRIEN: Welcome back, everybody.
JACK CAFFERTY, CNN ANCHOR, AMERICAN MORNING: McDonald's paying the price for violating some tax rules. Andy Serwer's "Minding Your Business" with that and the markets.
Good morning.
ANDY SERWER, COLUMNIST, "FORTUNE": Good morning. You know following all these tax rules stories in Venezuela very carefully.
CAFFERTY: Are you? That's your deal?
SERWER: Oh, yes, big stuff. I'll tell you.
CAFFERTY: On the tax beat.
SERWER: Yeah, let's talk about the markets first. We're catching up, getting back to level here with the markets year-to-date. You can see on the Dow, we're not down so much after that horrendous January, that is because last week was so good. Friday, for instance, the Dow up 123 points on the jobs report showing the unemployment rate falling from 5.4 percent to 5.2 percent.
Nasdaq still has a ways to go. But it's a little bit more volatile, that index is. Futures are up this morning, nicely.
Now, suppose you're in Venezuela and have a hankering for a Quarter Pounder with cheese or a Cheeseburger Royale. Yes, I know.
Forget about it. You can't get one. It's not because there aren't any McDonald's in Venezuela. There are 80 of them. The government of Venezuela has closed all McDonald's in the country down for three days, because it says that the chain has violated tax rules. The stuff that it buys and stuff that it sells isn't matching up so they shut it down. Just shut the thing down.
CAFFERTY: These things will happen.
SERWER: They will.
CAFFERTY: You have to play by the rules.
SERWER: You do. Especially in Caracas. CAFFERTY: The other thing that will shut your restaurant down is giving away a lot of food and not ringing it up in the cash register.
SERWER: That's right.
CAFFERTY: Which is another chain's problem.
SERWER: Yes. A little food report this morning, Jack. Red Lobster for the sea food gorger in you. A problem they've been having. This is owned by Darden, this restaurant chain. And they've been having these all you can eat deals for the shrimp people and the crab people. The crab people and shrimp people have been coming en masse and putting a dent in profits. So they're going to get rid of them and rejigger the menu, which is too bad.
They're also going to change the decor. I like this. We just found out.
CAFFERTY: That will help.
SERWER: The seafood chain has also changed the interior design of the restaurants, abandoning the New England fishing village decor that resembles the set of "Jaws" -- I didn't notice that -- in favor of a coastal home design, that includes a pastel interior. That appeals to us, doesn't it?
CAFFERTY: I bet just keep doing that all-you-can-eat thing.
SERWER: Yes, gets me in there every time.
CAFFERTY: People love those lobsters and that shrimp, all you can eat.
SERWER: Yes.
CAFFERTY: Thanks, Andy.
SERWER: You're welcome.
CAFFERTY: Time for "The File". Here's a bargain; $19.95, plus shipping and handling, you can get up close and personal with conservative commentator Ann Coulter, if you're so inclined.
A documentary called "Is It True What They Say About Ann" is now available on DVD, on her website. In addition to 40 minutes worth of interviews and liberal bashing, the DVD includes a, quote, "Behind- the-scenes look at the fabulous Ann Coulter."
It's a chance to see Coulter's childhood, her flight from the suburbs, perhaps at the request of her parents. Hear about Easter baskets from her mother. And about Ann Coulter's favorite rock bands, which include the Grateful Dead and The Ramones.
O'BRIEN: How much is that, again?
CAFFERTY: $19.95. Digging deep. O'BRIEN: Oh.
CAFFERTY: A Pennsylvania man is suing a state trooper. The guy gave him a ticket after he showed the trooper his middle finger. Trooper Samuel Nissan (ph) cited Stephen Corry (ph) for giving, quote, "an improper hand signal while passing my patrol car, namely middle finger up", unquote.
Corry (ph) claims the ticket violates his First Amendment rights. The trooper says the middle finger gesture was part of an improper turn signal. Corry's lawyer says he can't be ticketed because showing the trooper his middle finger is not a traffic violation.
SERWER: No.
CAFFERTY: A Jordanian couple -- I have one more here, Mondays are a little slow here on "The File". You may have noticed.
O'BRIEN: It's good so far.
(CROSS TALK)
CAFFERTY: A Jordanian couple having marital problems, they decided to separate. After several months, they each began visiting Internet chat rooms, looking for a new relationship. Using phony names -- which is what you do in Internet chat rooms, I'll told by Andy...
O'BRIEN: Oh, oh.
(LAUGHTER)
CAFFERTY: They each eventually made contact and began an Internet affair. After three months, they started making wedding plans and decided it was time to meet face to face. Guess what? The newfound loves were actually their old spouses. The divorce is in the works.
What are the odds of that, on the Internet, that you strike up on online relationship with somebody you hate -- and on the Internet, because you're telling lies to each other, you fall back in love and decide to get married?
O'BRIEN: Isn't it that song, "If you like Pina Coladas and taking walks in rain?" That is the whole gist of that, right?
SERWER: I was talking to some young a gal, told me she was a 25- year-old girl named Jackie. And turned out she was an older news anchor.
CAFFERTY: Yeah?
MARCIANO: Named?
SERWER: Never mind.
(LAUGHTER)
SERWER: Well, you tried to accuse me.
O'BRIEN: I'm going to save you both.
SERWER: Please do.
O'BRIEN: How about that?
SERWER: It didn't work.
O'BRIEN: No it did not.
Well, 2005 marks CNN's 25th anniversary. As part of the celebration, we're taking a look at the men and women who made headlines, then and now.
(BEGIN VIDEO CLIP)
ANNOUNCER: She's known as the Queen of Mean. Hotel magnate, real estate tycoon and unapologetic tax evader, Leona Helmsley personified the ultra rich who bend the rules. She allegedly once told her housekeeper "only the little people pay taxes." Convicted of 33 felony counts of trying to defraud the government and the IRS in 1989, Helmsley served 18 months in prison.
LEONA HELMSLEY: I have done nothing wrong. I am not guilty.
ANNOUNCER: Helmsley will turn 85 this year and remains involved in day-to-day operations of her empire. Her husband, Harry, died in 1997. And she now spends a lot of time with her dog. Helmsley is still one of the wealthiest women in the world with a reported net worth of more than $2.2 billion.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
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Aired February 7, 2005 - 08:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ROB MARCIANO, CNN ANCHOR: The administration is taking bold steps in the Middle East. We'll see if Victor Kamber and Cliff May, what they think about it. Is it a great stride or a big stumble?
SOLEDAD O'BRIEN, CNN ANCHOR: Before that, right to the headlines with Heidi Collins.
Good morning.
HEIDI COLLINS, CNN NEWS ANCHOR, AMERICAN MORNING: Good morning, guys. And good morning to you, everybody.
Once again, now in the news, Secretary of State Condoleezza Rice heading to Rome this hour, following a two-day visit to the Middle East. Rice announced Palestinian President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon have accepted invitations to meet in Washington this spring. Rice also said the U.S. will provide $40 million in aid to the Palestinians within the next 90 days.
The Vatican says the health of Pope John Paul II is continuing to improve. The 84-year-old pontiff made his first public appearance yesterday since being admitted to the hospital almost one week ago. Sources say the Pope is eating well and no longer has a fever. Still not clear, though, when he'll return to the Vatican. Sources say he will stay in the hospital a few more days just as a precaution.
In California, a delay in the Michael Jackson trial, jury selection on hold until next week, because a sister of Jackson's lead attorney, Tom Mesereau (ph), has died. Jackson issued public condolences to the family. Some 250 jurors will be assigned numbers today and sent home until February 14.
And it is one of the hottest shows on television, but will it hook even more viewers now with its latest plot twist? Reports that someone on ABC's "Desperate Housewives" is about to come out of the closet on the show and in real life. Word is the son of Marcia Cross, character Bree, will admit to be being gay. The rumor mill is also swirling that Marcia Cross will come out herself in the gay magazine "The Advocate." The magazine says it has nothing is planned. The plot thickens.
O'BRIEN: We'll have to wait and see. That would be the first time they've been announcing -- we're going to announce that a character is gay and then --
COLLINS: Yes, but you know there's enough going on in that show, I think ...
O'BRIEN: They don't need to stir the pot even more.
MARCIANO: They're so big, they can do just about anything.
COLLINS: I know. It's very true.
O'BRIEN: True. All right. Heidi, thanks.
COLLINS: Yes.
O'BRIEN: Today President Bush is expected to send to Congress the tightest budget since he took office. Next year, the Bush administration would like to increase military and international spending, while slashing about 150 domestic programs. White House Correspondent Dana Bash joins us live with more details.
Hey, Dana, good morning.
DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.
When the president started his first term four years ago, the budget was in surplus. Of course, now it is at a record-high deficit. And for many in his own party, the most important campaign promise that the president has to fulfill is cutting that deficit in half in five years. And to that end, the administration is proposing what one official told us this morning is the biggest overall budget cut since Ronald Reagan was in office.
Let's take a look at some of the specifics. First of all, it's a $2.5 trillion budget. 150 programs will be proposed for elimination or to be reduced. That is everything from farm subsidies to education programs, even prescription drug benefits for some veterans. It will show a $427 billion deficit. Now, administration officials insist, of course, this is tight. But they say that they're eliminating mostly programs that are either redundant or simply a waste of taxpayer dollars.
(BEGIN VIDEO CLIP)
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: About 150 programs are slated to either be eliminated or reduced. But they're programs we've carefully evaluated, that we've looked at to see whether or not, are they doing what they're supposed to be doing.
I think you'll find, once people sit down and have a chance to look at the budget, that it is a fair, reasonable, responsible, serious piece of effort. It's not something we've done with a meat axe, nor are we suddenly turning our back on the most needy people in our society.
(END VIDEO CLIP)
BASH: The Bush budget does not include some big ticket items, including, for example, $80 billion the White House is also going to ask for war funding. $754 billion for the president's proposal for private accounts for Social Security. Because of that, many Democrats say the whole idea that the deficit will be cut in half is not true.
Now, there you see a picture from Capitol Hill of the budget actually arriving in Congress. Now, every one of these programs slated to be cut, of course, has a patron there in Congress or a special interest group. And by way of context, last year this White House proposed cutting or eliminating or at least reducing about 120 programs.
Soledad, only about a handful actually were eliminated or reduced. When it actually came out of Congress.
O'BRIEN: So, of course, that means we'll see which ones actually continue to live for another day.
BASH: Exactly.
O'BRIEN: You look at the picture of that budget handover there, that thing is not small. That's got to weigh at least 75 pounds. Dana Bash at the White House for us this morning. Dana, thanks a lot for that update.
Pitching for peace in the Middle East now. Secretary of State Condoleezza Rice met today with Palestinian President Mahmoud Abbas, a day after meeting with Israeli Prime Minister Ariel Sharon in Jerusalem. Joining us to talk about that, in Washington, Democratic consultant Victor Kamber with the Kamber Group. And Cliff May, he is a former RNC communications director. He's now with the Foundation for Defense of Democracies.
Good morning, gentlemen. Nice to see you as always.
VICTOR KAMBER, KAMBER GROUP: Good morning.
Let's talk about what Condoleezza Rice had to say this morning, because really, she's been working her way through the Middle East this weekend. First, she announced a carrot and stick approach; $40 million going within the next three months to the Palestinians. Also, a new security coordinator position, which would help coordinate security efforts and issues between the Israelis and the Palestinians.
Do you think, Cliff, that this is enough at this point?
CLIFF MAY, FOUNDATION FOR DEFENSE OF DEMOCRACY: Oh, it's never enough, but it's -- these are all steps forward. And in the Middle East, as you well know, if you can make two steps forward, with only one step back, you're making progress. We've been at this for more than 50 years. It is a difficult situation.
This is a hopeful time. I wouldn't go so far as to say I'm optimistic, but I'm hopeful. It is possible that at this point, the Palestinians, under Abbas -- may be willing to say, all right, we have to live side by side with Israel. We don't want to, but we will because this war cannot go on for another 100 years. We don't know that yet.
I think, look, what Condi Rice is doing, what the administration is doing is what people like my friend Victor have been arguing for. They're very much engaged in the process and are trying very hard best they can, to push the process forward.
O'BRIEN: Engaged, Victor, but not necessarily, at least this point, taking a leadership role. Do you think it's a big loss there?
KAMBER: Well, I'd like to associate myself with Cliff's remarks. They're engaged, as opposed to a deaf ear, which I think happened for the first four years. The fact is, they're trying, they're willing to put some money up. As opposed to bullets or as opposed to ignoring the situation.
Would I like to see more? Probably. But at least it's a step forward. At least the parties are talking and we're in encouraging it. I don't know a that we can ask for any more at this point, given this administration.
MAY: Soledad, you talk about a leadership role. I think it's important that we not be too much out front. The two parties have to want this and they have to be willing to make the compromises to get it. We can't make those compromises for them. We can't force them to do that. They have to be pushed in the leadership role at the end of the day.
O'BRIEN: Let's talk a little bit, changing gears, about what Secretary Rumsfeld had to say over the weekend. He says, 136,000 Iraqi troops are actually up and ready to go, although he called some of them green as grass, which isn't exactly confidence inspiring.
Victor, take a stab at this one. Do you think it's mistake for Democrats, especially, to be asking for a timeline when, frankly, the Iraqi troop strength is a big question mark?
KAMBER: I think you're asking two questions. Clearly, the numbers that were given, I have no confidence in. The fact that there's 136,000 numbers doesn't mean anything in terms -- if there are truly that many numbers, they're trained, capable, able to handle the situation.
And if they are, it's even more frightening, because that means we're talking about 275,000 or 300,000 troops there between Americans and Iraqis and we still have the problems.
In terms of the second part of your question, timeline, I think that what we need is a plan to end the hostilities, a plan that would bring in the rest of the world to help with the peacekeeping, a plan that would allow us to exit Iraq. Do I want a specific timetable? I probably do not, because I think there will be mass executions there, but I think we clearly, absolutely need a plan to extricate ourselves from Iraq.
MAY: What we're doing, Soledad, in Iraq is not peacekeeping. It's war fighting. When people ask for an exit strategy, they're making a big mistake. Would anyone have asked FDR, during World War II, what's your exit strategy from Europe or the Pacific? An exit strategy doesn't work. We need a strategy for victory or a strategy for defeat.
If it's a strategy for victory, we stay there as long as Zarqawi and other al Qaeda terrorists, as long as Ba'athists are fighting us and fighting the Iraqis. We fight our enemies wherever they are. Right now, most of them, the worst of them seem to be in Iraq. We stay there until we defeat them.
KAMBER: If we're calling this a war, ala World War II, let's be honest with the American people and say that. We haven't been honest. We've talked about a cleanup strategy, we've talked about an insurrection. We've talked about getting some terrorists. We've never outright said we're in a war, we're in a war to stay until we've won war.
MAY: Let me say it, and let me urge others to say it: We are in a war against terrorism, which really means a war against radical Islamic fascism. That war's front line right now is in Iraq. Zarqawi, the al Qaeda representative there, he knows it. I know it. I think you know it. I hope the administration knows it. Let's agree on that.
O'BRIEN: You guys, that's the final word this morning. Victor Kamber and Cliff May, nice to see you as always. Appreciate it.
KAMBER: Thank you.
MAY: Thank you.
O'BRIEN: Rob.
MARCIANO: The identity of the anonymous source who helped bring down an administration may soon be revealed. In yesterday's "L.A. Times," former Nixon White House aide John Dean writes that Deep Throat is ill. Bob Woodward couldn't confirm whether the man who helped him and Carl Bernstein investigate the Watergate scandal was sick. But Woodward yesterday did confirm Dean's claim that former "Washington Post" editor, Ben Bradley has already written Deep Throat's obituary.
Chad, I'm not sure how these top-gun news anchors transition out of those stories so help me out. What's going on weather wise.
(WEATHER FORECAST)
O'BRIEN: For the first time in nearly a decade, doctors have some new rules for mothers and breast feeding. We'll "Page Dr. Gupta" just ahead.
MARCIANO: Plus, a global headache for the Golden Arches, Andy's "Minding Your Business", that is all ahead on AMERICAN MORNING. Stay with us.
(COMMERCIAL BREAK)
O'BRIEN: Welcome back, everybody. We're "Paging Dr. Gupta" this morning about new guidelines for breast-feeding mothers. Sanjay joins us from the CNN Center with details. Good morning.
DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT: Good morning, Soledad.
Really interesting, some new recommendations coming out of the American Academy of Pediatrics. A little bit different, a little surprising to some in terms of breast feeding. First recommendations in about a year or so.
Most agree that there are significant virtues to breast feeding. The question has been for how long and how much? That's what the American Academy of Pediatrics tries to address here. Specifically, talking about breast feeding in the first six months. Saying exclusive breast feeding in the first six months is their minimum recommendation.
Also, evaluating the breast-fed newborn at three to five days old and again at two to three weeks to make sure they're breast feeding well, make sure they're not becoming dehydrated. Previous recommendations be that they be evaluated about four to six weeks.
Also, the question about where the infant should sleep, should the infant sleep in another room or close to the mother? American Academy of Pediatrics, again some recommendations on that, mother and infant should sleep near to each other. They recommend, specifically, a bassinet that actually attaches to the bed.
The reason for this they say, is the mother will more quickly be able to assess when a child is hungry. Crying is a late stage of hunger and may make it difficult for the baby to actually start breast feeding again, once they've already started crying.
They also address adoptive mothers, saying adoptive mothers should be counseled on what is known as induced lactation, so they may be able to breast feed as well.
Again, a little bit surprising to some, these new recommendations. But they're out there now for new mothers especially, Soledad.
O'BRIEN: We know it's better for moms to breast feed babies, but walk us through again why, specifically why it's better.
GUPTA: This has been studied quite a bit. Talking about both medical reasons, psychological reasons, and cognitive reasons. Some of them when you talk about breast feeding, again, for a minimum of six months, decreases infections, for example. It's going to decrease infections in the long term and may decrease allergies and incidence of asthma later in life.
Also, may reduce the incidence of infant death, specifically SIDS. No one is entirely sure as to why this is, but it does appear to pan out in some of the longer term data. Also it may boost brain development. Kids seem to have slightly sharper cognition when they enter school as compared to kids who were not breast fed for at least six months, Soledad.
O'BRIEN: Sanjay, how much weight does the American Academy of Pediatrics have, exactly, with the new assessment? Because frankly, not to get on my soapbox, but that would all be well and good, except women don't get six months off to sit around and breast feed their children, generally, paid. And there's no place to breast feed your kids if you're traveling, going through the airport. Usually, most offices don't have a place to breast feed your kids. So it's all well and good but hard to do in real life.
GUPTA: That is, in part, a large reason why they're so controversial, Soledad. You hit right on it. It's similar to a lot of the other associations, which make guidelines, for example, on obesity saying you need to exercise for 90 minutes a day.
Yes, these are the gold standards. There is a sort of a consensus that a lot of women don't do this. But if you're trying to strive for the gold standard, this is what they recommend. But it is hard for a lot of women, as you point out, Soledad.
O'BRIEN: We're all trying to strive for the gold standard, sometimes fall short, don't we?
All right. Sanjay, what's coming up on "New You Revolution"?
GUPTA: Yes, well, our "New Your Revolution" continues tomorrow. The spotlight will be on Sandra Garth. You remember her, she is the grandmother. As prescribed, she's eating better and exercising more. And she's been telling us all about it in her "New You Revolution" journal.
She's exceeding her daily step count, frequently going over her goal of 10,000 steps. She's setting an example, her grandson, Shannon, exercises with her. Her best news came via the Internet. Her son, Casey, who is Shannon's dad, stationed in Iraq, contacted her for the first time since Christmas. He told her he's doing OK and may leave Iraq by early March. And that he's seen her on CNN and CNN.com as well.
So you, too, can help along and follow our new you participants and e-mail them by logging on to the website, cnn.com/am. Good stuff there.
O'BRIEN: That is great news. Good for her. Lots of good news to report on her front. Wonderful. All right. Sanjay, look forward to that.
GUPTA: Yes, I'm so glad. Thank you.
MARCIANO: Soledad, a follow-up on a story we told you about on Friday in our "Extra Effort" segment. It is about a very sick 12-year- old boy from a remote village in Afghanistan, who is suffering from a potentially fatal heart defect. He was brought to America for surgery, thanks to a very determined National Guardsman from Utah.
A hospital spokeswoman tells us the little boy's surgery went well and he was released from the hospital yesterday.
O'BRIEN: Wow, so much good news to talk about this morning, Rob. Wow. Happy, happy day.
MARCIANO: Yes.
O'BRIEN: Well, the "Cafferty File" is just ahead. Jack has your chance to get a little face time with Ann Coulter. He'll explain just ahead as we continue here on AMERICAN MORNING.
(COMMERCIAL BREAK)
O'BRIEN: Welcome back, everybody.
JACK CAFFERTY, CNN ANCHOR, AMERICAN MORNING: McDonald's paying the price for violating some tax rules. Andy Serwer's "Minding Your Business" with that and the markets.
Good morning.
ANDY SERWER, COLUMNIST, "FORTUNE": Good morning. You know following all these tax rules stories in Venezuela very carefully.
CAFFERTY: Are you? That's your deal?
SERWER: Oh, yes, big stuff. I'll tell you.
CAFFERTY: On the tax beat.
SERWER: Yeah, let's talk about the markets first. We're catching up, getting back to level here with the markets year-to-date. You can see on the Dow, we're not down so much after that horrendous January, that is because last week was so good. Friday, for instance, the Dow up 123 points on the jobs report showing the unemployment rate falling from 5.4 percent to 5.2 percent.
Nasdaq still has a ways to go. But it's a little bit more volatile, that index is. Futures are up this morning, nicely.
Now, suppose you're in Venezuela and have a hankering for a Quarter Pounder with cheese or a Cheeseburger Royale. Yes, I know.
Forget about it. You can't get one. It's not because there aren't any McDonald's in Venezuela. There are 80 of them. The government of Venezuela has closed all McDonald's in the country down for three days, because it says that the chain has violated tax rules. The stuff that it buys and stuff that it sells isn't matching up so they shut it down. Just shut the thing down.
CAFFERTY: These things will happen.
SERWER: They will.
CAFFERTY: You have to play by the rules.
SERWER: You do. Especially in Caracas. CAFFERTY: The other thing that will shut your restaurant down is giving away a lot of food and not ringing it up in the cash register.
SERWER: That's right.
CAFFERTY: Which is another chain's problem.
SERWER: Yes. A little food report this morning, Jack. Red Lobster for the sea food gorger in you. A problem they've been having. This is owned by Darden, this restaurant chain. And they've been having these all you can eat deals for the shrimp people and the crab people. The crab people and shrimp people have been coming en masse and putting a dent in profits. So they're going to get rid of them and rejigger the menu, which is too bad.
They're also going to change the decor. I like this. We just found out.
CAFFERTY: That will help.
SERWER: The seafood chain has also changed the interior design of the restaurants, abandoning the New England fishing village decor that resembles the set of "Jaws" -- I didn't notice that -- in favor of a coastal home design, that includes a pastel interior. That appeals to us, doesn't it?
CAFFERTY: I bet just keep doing that all-you-can-eat thing.
SERWER: Yes, gets me in there every time.
CAFFERTY: People love those lobsters and that shrimp, all you can eat.
SERWER: Yes.
CAFFERTY: Thanks, Andy.
SERWER: You're welcome.
CAFFERTY: Time for "The File". Here's a bargain; $19.95, plus shipping and handling, you can get up close and personal with conservative commentator Ann Coulter, if you're so inclined.
A documentary called "Is It True What They Say About Ann" is now available on DVD, on her website. In addition to 40 minutes worth of interviews and liberal bashing, the DVD includes a, quote, "Behind- the-scenes look at the fabulous Ann Coulter."
It's a chance to see Coulter's childhood, her flight from the suburbs, perhaps at the request of her parents. Hear about Easter baskets from her mother. And about Ann Coulter's favorite rock bands, which include the Grateful Dead and The Ramones.
O'BRIEN: How much is that, again?
CAFFERTY: $19.95. Digging deep. O'BRIEN: Oh.
CAFFERTY: A Pennsylvania man is suing a state trooper. The guy gave him a ticket after he showed the trooper his middle finger. Trooper Samuel Nissan (ph) cited Stephen Corry (ph) for giving, quote, "an improper hand signal while passing my patrol car, namely middle finger up", unquote.
Corry (ph) claims the ticket violates his First Amendment rights. The trooper says the middle finger gesture was part of an improper turn signal. Corry's lawyer says he can't be ticketed because showing the trooper his middle finger is not a traffic violation.
SERWER: No.
CAFFERTY: A Jordanian couple -- I have one more here, Mondays are a little slow here on "The File". You may have noticed.
O'BRIEN: It's good so far.
(CROSS TALK)
CAFFERTY: A Jordanian couple having marital problems, they decided to separate. After several months, they each began visiting Internet chat rooms, looking for a new relationship. Using phony names -- which is what you do in Internet chat rooms, I'll told by Andy...
O'BRIEN: Oh, oh.
(LAUGHTER)
CAFFERTY: They each eventually made contact and began an Internet affair. After three months, they started making wedding plans and decided it was time to meet face to face. Guess what? The newfound loves were actually their old spouses. The divorce is in the works.
What are the odds of that, on the Internet, that you strike up on online relationship with somebody you hate -- and on the Internet, because you're telling lies to each other, you fall back in love and decide to get married?
O'BRIEN: Isn't it that song, "If you like Pina Coladas and taking walks in rain?" That is the whole gist of that, right?
SERWER: I was talking to some young a gal, told me she was a 25- year-old girl named Jackie. And turned out she was an older news anchor.
CAFFERTY: Yeah?
MARCIANO: Named?
SERWER: Never mind.
(LAUGHTER)
SERWER: Well, you tried to accuse me.
O'BRIEN: I'm going to save you both.
SERWER: Please do.
O'BRIEN: How about that?
SERWER: It didn't work.
O'BRIEN: No it did not.
Well, 2005 marks CNN's 25th anniversary. As part of the celebration, we're taking a look at the men and women who made headlines, then and now.
(BEGIN VIDEO CLIP)
ANNOUNCER: She's known as the Queen of Mean. Hotel magnate, real estate tycoon and unapologetic tax evader, Leona Helmsley personified the ultra rich who bend the rules. She allegedly once told her housekeeper "only the little people pay taxes." Convicted of 33 felony counts of trying to defraud the government and the IRS in 1989, Helmsley served 18 months in prison.
LEONA HELMSLEY: I have done nothing wrong. I am not guilty.
ANNOUNCER: Helmsley will turn 85 this year and remains involved in day-to-day operations of her empire. Her husband, Harry, died in 1997. And she now spends a lot of time with her dog. Helmsley is still one of the wealthiest women in the world with a reported net worth of more than $2.2 billion.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
