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American Morning

New Social Security Bill Does Not Include Personal Accounts; Battle Over Bolton; Water Shortage in Iraq

Aired June 22, 2005 - 08:30   ET

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

SOLEDAD O'BRIEN, CNN ANCHOR: First, though, a check of the headlines with Carol Costello. Good morning again.
CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to all of you. "Now in the News."

The U.S. Air Force is trying to figure out what caused one of its spy planes to crash in southwest Asia. The single engine U-2 spy plane went down Tuesday night. The Air Force has not disclosed the exact location or any details of the crash. The fate of the pilot, not clear right now.

COSTELLO: Israeli prime minister Ariel Sharon and Palestinian leader Mahmoud Abbas have apparently agreed to stay in contact. The two held their first summit meeting in four months. Tuesday's talks in Jerusalem were described as difficult. Israel's plan to withdraw settlers and soldiers from Gaza was among the various topics discussed.

A housekeeper and nanny to the rich and famous has been charged with stealing. The woman's past employers and alleged victims apparently include Robert DeNiro, Candace Bergen and Isabella Rossellini. The housekeeper faces a slew of charges, including larceny and coercion. She's being kept in custody until a court appearance this Friday.

And new guidelines for children and exercise. I know this gets confusing, but we just report the news. This is the new thing. A panel of national obesity experts now recommending an hour a day. In the past, some groups have said 30 to 45 minutes of continuous exercise is best, but the panel now says 60 minutes over the course of the entire day is better, because children tend to stop and go a lot.

To see more on this and all of our top stories, go online. Just visit CNN.com, click on the "Watch" and see free video of our most popular stories.

MILES O'BRIEN, CNN ANCHOR: You know, my kids are pretty well- programmed as it is. Do they have time for an hour of exercise? I just don't know this could work.

S. O'BRIEN: Are they counting the running around as exercise? When they just kind of run around and play?

M. O'BRIEN: You mean they're bouncing off the walls?

S. O'BRIEN: Yes, that's -- ten minutes right there, five minutes over there.

M. O'BRIEN: Got to get a little stopwatch going. Oh, good, good, they just did an hour. And I wonder if that panel of obesity experts -- how much do they exercise?

COSTELLO: Yes.

M. O'BRIEN: Let's ask them.

COSTELLO: How much do they weigh?

M. O'BRIEN: Get on the scale before you start giving me advice. All right.

President Bush is giving the thumbs up to a new Republican-led Social Security bill, but it does not include those controversial personal investment accounts.

More on this story, congressional correspondent Joe Johns joining from us Capitol Hill with more on this. Does this make it palatable to Democrats, Joe?

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Well, Miles, after all the hype over Social Security -- and there has been a lot of it -- this is a potentially significant development. A Republican senator now saying the president has essentially encouraged him to move forward with a bill on Social Security that does not include the controversial private retirement accounts.

Senator Bob Bennett of Utah talking about that after lunch with the president at the White House.

(BEGIN VIDEO CLIP)

SEN. BOB BENNETT, (R) UTAH: I will be proposing a bill that does not include personal accounts, and the president's aware of that. He indicated that I should go forward and do that, and I'm grateful to have him do that, even though his own preference would be to have personal accounts included.

(END VIDEO CLIP)

JOHNS: Now, the subtext of all of this, of course, private retirement accounts have been a very tough sell for the administration. The White House says the president is not backing away from the idea that he has been pushing around the country for months and months now.

Meanwhile, Democrats are accusing the White House and the president of trying to suck them into a negotiation over Social Security solvency and then with the intention, of course, of bringing back that question of retirement accounts, private retirement accounts at a later date.

Back to you, Miles. M. O'BRIEN: Joe, Dick Durbin said he said what meant, meant what he said, when he talked about Gitmo and the tactics. And that lasted for about a week and now he's apologized. Why?

JOHNS: That's right. Well, it was a brief apology. A firestorm of criticism from around the country, particularly from conservatives who say he should not have compared the interrogation techniques of the U.S. military at Guantanamo Bay to Nazi Germany -- there, of course, Durbin going to the floor of the United States Senate last night, making a brief but in part, apparently tearful apology, saying he was sorry that he did that. Both Democrats and Republicans here on Capitol Hill now saying they really do hope that puts an end to the controversy -- Miles.

M. O'BRIEN: Joe Johns on Capitol Hill. Thanks very much -- Soledad.

S. O'BRIEN: Well, Senate majority leader Bill Frist says he's going to keep pushing for a vote on John Bolton as U.S. ambassador. Earlier, Senator Frist says he was giving up on it, because negotiations with Democrats had gone nowhere. But Frist's position apparently changed after he met with President Bush on Tuesday.

(BEGIN VIDEO CLIP)

SEN. BILL FRIST, (R) TENNESSEE: Basically, our goal is an up or down votes. So we'll continue to work in that regard.

QUESTION: Did he...

FRIST: Remember, we've got majority support for John Bolton. And it's come to a point that it's no longer -- which is clear to us and it's clear even in the comments on the floor -- it no longer about John Bolton. It's about an issue that -- it seems to be that senators have with the president on the other side of the aisle.

(END VIDEO CLIP)

S. O'BRIEN: In D.C., a CNN political analyst and columnist for the "L.A. Times," Ron Brownstein. Hey, Ron, good morning.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Good morning, Soledad.

S. O'BRIEN: OK, so he's saying up or down vote. What's the strategy behind that? It's already failed, obviously, twice. They're going for the third time. Why?

BROWNSTEIN: You know, Bill Clinton used to say the definition of insanity is doing the same thing over and over and hoping for a different result. Unless there is a deal to provide more of information the Democrats are demanding, there's really very little prospect of the result being different on a third try than there were on the first two, when only three Democrats opposed the party filibuster, perhaps surprisingly, and blocked consideration of Bolton.

Now, some in the White House believe there is a value in simply forcing Democrats to stand up and block him again -- would make it easier for the president to come back and label them as obstructionists. But we'll see how far the Republican Senate is really willing to push this strategy, since there's very little prospect of success without a deal on the underlying dispute about the information.

S. O'BRIEN: What about the potential that the president could go ahead and make a recess appointment of John Bolton -- basically give him the job temporarily?

BROWNSTEIN: You know, it's been done before. And it is an option that is out there for the president. Yesterday, the White House was trying to send the signal that they're much more interested in having this up or down vote. The downside of it, obviously, is that will be a very confrontational step to take after the Senate has refused to confirm him through the normal means to go ahead -- would add to the partisan tension on Capitol Hill.

On the other hand, it would be a way for the president to really underscore how much he wants to send this guy to the U.N., and in that sense, if Mr. Bolton did get to the U.N. under those auspices, he would be even more clearly identified as the president's choice, because he would have taken these extraordinary steps to get him there.

S. O'BRIEN: OK, but it brings a host of problems, too. Before we get to the problems, though, you say it's been done before. Has it ever been done, though, for a guy who...

BROWNSTEIN: Not for the U.N., no. It's been -- I mean, obviously, presidents have made recess appointments before, but for something of this magnitude, it would be a very -- as I said -- a very confrontational step.

S. O'BRIEN: And for somebody who was basically -- the Senate will not confirm.

BROWNSTEIN: Well, I mean, Bill Lann Lee under Bill Clinton, he could not get through the Senate Judiciary Committee and he put him in as an assistant attorney general. There have been instances of this. But I think what we're seeing here, Soledad, is really the choice the president faces is how far to push this confrontation, as do the Democrats. I mean, we are in a very partisan polarized period in Washington. The Democrats have chosen to be a much more aggressive opposition party. They've been much more unified than they were in Bush's first term. The Democrats believe that is weakening the Republicans. You see the approval ratings for the president at some of their lowest (INAUDIBLE).

On the other hand, the Republicans feel that Democrats are opening themselves up to the charge in the '06 election that they are obstructing the president. And that has proven an effective argument before for Republicans, especially in those red states like South Dakota with Tom Daschle or Georgia in 2002 with Max Cleland. So there's a big gamble on both sides here. But we have some pretty clear strategies developing that Bolton really underscores. S. O'BRIEN: There are even Republicans who would say a recess appointment would not only -- yes, clearly it would underscore that, hey, this really is the president's guy. But it could chip away, he says, not only at Mr. Bolton and his ability to do his job, but also the United States as a whole. Do you agree with that?

BROWNSTEIN: Well, yes, look, I mean, you've had senators like Pat Roberts, a leading Republican chairman of the intelligence committee, warning about this. It would be -- I think many analysts believe it would send Mr. Bolton to the U.N. under a cloud, if he could not go through the normal process. And even some of his advocates have warned the White House about that step and that may be why they have chosen, at least in the first blush, to emphasize their desire to have yet another up or down vote.

S. O'BRIEN: Ron Brownstein, as always, nice to see you. Thanks for your insight.

BROWNSTEIN: Thank you.

S. O'BRIEN: Miles.

M. O'BRIEN: A hostage held in Iraq for seven months, free today. The Filipino man was working as an accountant for a Saudi company when he was abducted. The militants who were holding him -- believed to be holding American contractor Roy Halllums.

Also in Iraq, an American soldier died in combat today. The military says he was killed by smalls arms fire near Ramadi.

Ever since the U.S. invasion of Iraq, the military has fought a tough and often losing battle, maintaining basic necessities in the country, electricity, phones and now water. In Baghdad, millions of people are suffering without fresh water for a fourth day in the summer heat.

Jennifer Eccelston, live in Baghdad. And Jennifer, this doesn't do much more the morale, does it?

JENNIFER ECCELSTON, CNN CORRESPONDENT: No, absolutely. As you said, that insurgent attack on our water treatment plant last weekend left millions of people, some two million people in Baghdad, without fresh water, Miles. And it couldn't have come at a worse time. It's summertime here and the temperatures are soaring well above 100 degrees.

(BEGIN VIDEOTAPE)

ECCLESTON (voice-over): Just when Nada Mansor thought things couldn't get much worse, they did. She hasn't had a drop of water in her faucet for three days. She relies on a neighbor whose water tanks are still full, hauling bottles several hundred yards to her home under the blazing summer sun.

NADA MANSOR, BAGHDAD RESIDENT (through translator): It's embarrassing for me, for a woman who is carrying water in the streets with people watching. This is not acceptable, but what can I do? I have no choice.

ECCLESTON: Sunday's rocket attack on Baghdad's biggest water treatment plant shut down the flow of over a billion liters of water. The mayor says two million people in the city are scrambling to find water somewhere, any means possible to quench their collective thirst.

Businesses reliant on water, like Mohammed Ali Nasr's (ph) laundry mat, are shut down. And people are angry that two years after the fall of Saddam Hussein and five months after an election, Baghdad authorities can't provide basic services.

UNIDENTIFIED MALE (through translator): The Baghdad mayor should be dismissed, and appoint another one who can do his job properly. We need someone who can work for the people's interest.

ECCLESTON: Mayor Alaa al-Tamimi says he is working for the people's interest.

ALAA AL-TAMIMI, BAGHDAD MAYOR: We are working 24 hours for three days. I think tomorrow the people will have more water.

ECCLESTON: So much today in Baghdad is waiting, waiting for the water and electricity to return, waiting in fuel lines, waiting for an end to bombs and mortars. For some, the hardship is too much to bear.

Nada Mansor, the 46-year-old mother of four, says she can't cook, wash, or even bathe. Water is like peace, she says, you never know how valuable it is until someone takes it away.

(END VIDEOTAPE)

ECCLESTON: Now despite assurances from Baghdad's government officials, today, Miles, the taps remain dry, but they do say each day it's getting better, and it will be back at 100 percent soon -- Miles.

M. O'BRIEN: Jennifer do, most people blame the U.S.?

ECCLESTON: No, in fact most people blame the local officials here. As you saw in that package, there was a lot of angst and a lot oF anger against the local authorities, the community authorities here in Baghdad, specifically towards the mayor of the capital city, who has been going on a series of campaigns, saying, painting rather a rosier picture than it is in the capital city that things are getting better day by day, and that Iraqis are definitely living a better life than they did before the invasion. And so most people take that with a grain of salt and say, look, it's not better, every day we have something else; if it's not bombs and mortars, we don't have electricity, and now we don't have water.

M. O'BRIEN: I guess it's a sign of progress that they're not blaming the U.S.; they're blaming the local officials.

Jennifer Eccelston, thanks so much.

(WEATHER REPORT) M. O'BRIEN: Still to come on AMERICAN MORNING, if you have a nasty cough, go to the doctor, get some antibiotics. Are you wasting your time? We'll have reaction to a new study. And no-strings attached. iPod users may be able to throw away the headphones with the cords. We'll explain just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: Well it's "Paging Dr. Gupta" time, but Sanjay is off. No pager with him, so we're paging Dr. Philips. Looking at an interesting new study that finds people with bronchitis get little if no benefit from antibiotics. Dr. Holly Philips, a New York internist, joins us with reaction to this surprising study.

Let's go through the bullet points very quickly, if we could, Holly, before we get into it. The study said this, the duration of a cough is not shortened by the antibiotics. It dispels myths about sputum. Since this is a breakfast, we won't get too deep into sputum, and antibiotics are not risk free. Those are the highlights. Basically they discovered that bronchitis is a viral type of thing, as opposed to something that is bacterial, right?

DR. HOLLY PHILIPS, INTERNIST: Absolutely. It's an important distinction to make. What the study highlighted is that most cases of acute viral bronchitis actually really do not respond to antibiotics. This is something that we've known for awhile, but the study delineated it and showed it so clearly.

M. O'BRIEN: Well, so why do so many doctors prescribe antibiotics? It's like this, you know, "silver bullet" solution to so many things that ail us.

PHILIPS: Sure. Well, in the past we didn't have great nice, clean, clear-cut evidence that we do in this study.

But also, you know, it's very difficult to tell patients who come to your office -- they're suffering. They're coughing. They feel miserable. It's very difficult to tell people, we have nothing for you, go home and rest.

M. O'BRIEN: Right, so just give them something, get them out of the office, right?

PHILIPS: Absolutely. It's frustrating for doctors and patients alike. But what this study really emphasized was that antibiotics do not shorten the course of an acute viral bronchitis.

M. O'BRIEN: Some people would tell you, though, that it has helped them. Is it just like a coincidence -- they've healed themselves and the antibiotics had nothing to do with it?

PHILIPS: Well, I think there is what we call a placebo effect. Sometimes, if you do take a medication, you feel as though you're taking better care of yourself and you're getting better faster. What the study really showed, though, was that no matter whether people took antibiotics or not, the course of the illness lasted the same amount of time.

M. O'BRIEN: And what this leads -- very quickly -- to is a discussion about the overuse of antibiotics, which is really a growing problem, isn't it?

PHILIPS: Absolutely. This is of incredible concern within the medical community. By overprescribing antibiotics, we're creating what we all super bugs and these are bacteria that do not respond to any antibiotics we have on the market. It's very difficult to treat patients who develop infections with the superbugs.

M. O'BRIEN: So the message to doctors here is, you know, even though you might suspect it's a viral infection and even though you suspect the antibiotic won't do any good, you should be honest with your patient and say, look, I'd give you an antibiotic and it might make you feel better, but it's not going to really do any good, right?

PHILIPS: Precisely. I think that taking the extra few minutes to really explain to patients how antibiotics are available, but they might not be the best solution in this case, is really valuable.

M. O'BRIEN: Of course, these days, doctors don't have an extra few minutes, right?

PHILIPS: Absolutely. If only we had that extra time.

M. O'BRIEN: All right. Dr. Holly Philips, thanks for your time.

PHILIPS: Thank you.

M. O'BRIEN: Appreciate you dropping by. "Paging Dr. Gupta," we got Dr. Philips instead. You did a good job. Thank you.

PHILIPS: Thank you.

M. O'BRIEN: Soledad.

S. O'BRIEN: Still to come this morning, attention iPod users. If you're tired of the tangled headphone cords, get ready to go wireless. A look at that's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody. IPod users will soon be free of tangles and snags and kinkiness. Here with that and a preview of the market, Andy Serwer is "Minding Your Business."

ANDY SERWER, "FORTUNE" COLUMNIST: Kinkiness.

S. O'BRIEN: Kinkiness.

SERWER: That, too.

S. O'BRIEN: You know, when your cord gets all tangled up.

SERWER: I know that well. You know, the iPod is the hottest recreational product on the planet right now, Soledad. One gripe people have, though, are the wires. You're always getting tangled up. Now, iPod will be going wireless. As of July, a new product coming out using bluetooth technology, like the cell phones, so you don't have to have the wires tangled up. It will be $150, though, so you're going to have to pay for it. But there it is. And so they're the heavier speakers that cover your whole ear.

Just to put this in perspective a little bit, tell you how hot this product continues to be. Apple reporting they've now sold 15 million worldwide, 5.3 in the first three months of this year alone. That's one iPod sold every second of every working day in the first quarter, which is pretty amazing.

S. O'BRIEN: Wow.

SERWER: And the accessory market is really booming, as well. You know, the speakers...

S. O'BRIEN: I love that stuff.

SERWER: There's the new $1,000 Swarovski -- did I say that right?

S. O'BRIEN: Swarovski.

SERWER: Swarovski crystal mini. And, of course, you haven't really made it until there's a cruise. There is an iPod cruise, sponsored by Geek Tour...

S. O'BRIEN: Like a boat cruise?

SERWER: A boat cruise, leaving from Vancouver, British Columbia, going down to San Diego. There it is.

S. O'BRIEN: Everybody ignores each other and listens to their iPod?

SERWER: Yes, you just pod on. I mean, it's a little lost on me what would really happen here on this cruise. And I like the fact that it's sponsored by Geek Cruises. So there you go. Should be pretty good.

Let's talk about the markets a little bit, Soledad. Yesterday a mixed picture for stocks. Dow down a little bit, Nasdaq up. Price of oil backing down a little bit and that's prompted futures to rise sharply this morning. So we'll be watching that.

S. O'BRIEN: All right. Andy, thanks.

SERWER: You're welcome.

S. O'BRIEN: Still to come this morning, two brothers, one passport and a plan that left one of them stuck in Cuba. It all ends with a happy reunion. The brothers will join us live, coming up next on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: He is alive and well, and now we are learning more about what happened to little Brennan Hawkins, lost for four days in the Utah wilderness.

But still missing in Aruba. Natalee Holloway's mother is pushing for answers in her daughter's disappearance. She met face-to-face with the parents of the man who's being held in the case.

And California governor Arnold Schwarzenegger, nearly two years on the job. But the landslide of support that got him there is quickly slipping away.

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