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The Situation Room

Improved Economy Not Helping Bush Poll Numbers; Katherine Harris to Run for Senate; Supreme Court Battle Heats Up Over Abortion; Lawyer Prepared to Take on Hillary; Iraq Constitution

Aired August 09, 2005 - 16:00   ET

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


WOLF BLITZER, HOST: What's going on, on that front?
ALI VELSHI, CNN CORRESPONDENT: Well, you know, I'm going to bring you that in a little while. Right now as the markets close, let's just quickly take a look at that. We've got the Dow closing 81 points higher, 10,618 and the NASDAQ closing about 10 points higher to 2174.

As you know, Wolf, about an hour and a half ago the Fed raised rates again for the tenth time. I'm going to come back to you about what's going on and the costs of lung cancer and how that's affecting Americans -- Wolf.

BLITZER: Pick up that gallon of milk over there that you've got. That's a gallon of milk. And I don't -- you don't have any idea what that costs?

VELSHI: This is about $4. But if you make it into ice cream, you get more for it. If you make it into cheese, you get more for it. If you make it into butter, you get more for it. So, you know, all sorts of things we buy, we have to make decisions as to what the raw product becomes in the end and what we pay for it.

BLITZER: The cost of milk going up as quickly as the cost of oil?

VELSHI: Yes. Well, you know, that's a good question. I'll do a little research on that and figure out if the pace is the same. But this has been one of the things that's been going up a lot recently. A lot of the commodities we buy and eat have been going up a lot recently.

BLITZER: Ali Velshi, we'll be getting back to you. Thanks very much, Ali, for that.

It's 4 p.m. in Washington. You're in THE SITUATION ROOM, where news and information arrive at one place simultaneously on these screens behind me. Right now, data feeds coming in from CNN.com, TIME.com, other sources, crossing it in real time.

Happening right now, we're watching several stories.

The Supreme Court nominee, John Roberts, taking fire in the so- called culture wars. Opponents accusing him of defending violent attacks on abortion clinics. Supporters say that's a huge lie. Tough questions, tough allegations. That's expected in the nation's capital.

And taking on Hillary Rodham Clinton. Does the Republican prosecutor Jeanine Pirro really think she can unseat the senator? From New York this hour, Pirro enters THE SITUATION ROOM. I'll speak with her live.

And it's 4 p.m. in Sarasota, Florida, where a lightning rod from the 2000 presidential standoff is now a Senate candidate. Will Congresswoman Katherine Harris be helped or hurt by her unique place in political history?

I'm Wolf Blitzer and you're in THE SITUATION ROOM.

Up first, the state of the U.S. economy. It means a lot to the quality of all of our lives, and it means a lot to the quality of President Bush's political life. That's why he held a strategy session with his key domestic policy team at his Texas ranch earlier today.

CNN's Elaine Quijano is joining now from just outside the ranch in Crawford, Texas. Elaine, what happened?

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Wolf.

Well, usually when the economy is doing well, that will show up in a president's polling numbers. But that's not happening for President Bush.

(BEGIN VIDEOTAPE)

QUIJANO (voice-over): President Bush says the economy is strong, but acknowledges challenges lie ahead.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We're more concerned about energy prices and health care prices. Those are the two areas that we see as having a greater effect on potential economic, you know, on the growth.

QUIJANO: With his top domestic advisors at his side, the president also focused on the positive. Job growth, including more than 200,000 new jobs in July, inflation contained at two percent for core items not energy or food though, and deficit reduction ahead of his promised schedule. Mr. Bush crediting his administration's initiatives for moving the economy ahead.

BUSH: My policies allow more Americans to keep more of what they earn, to have more control over their daily life, from health care to education to their retirement.

QUIJANO: But recent polls show the president's approval ratings, both on the economy and overall, have dropped, weighed down by concerns over the mounting death toll in Iraq and high prices at the gas pump.

And the president hasn't won any ground on what was to be his signature domestic initiative this term, reforming Social Security. Yet, he's not giving up, calling on Congress to take up the issue when members return in the fall.

BUSH: Social Security is a liability that it needs to be addressed now.

(END VIDEOTAPE)

QUIJANO: And tomorrow, Wolf, the president tries to keep the focus on the positive. He'll travel to Illinois to sign the highway Bill. It will be the fourth such event of his working vacation. Another chance for the administration to try to turn around those poll numbers -- Wolf.

BLITZER: Elaine, while I have you, share with our viewers a little bit what it's like to cover the president over in Crawford.

QUIJANO: Well, Wolf, this is why we are so careful to always say that we are near the president's ranch, not actually at the president's ranch. You're familiar with the hay bales and the shed behind me.

But is what you don't get to see. This is actually somebody's backyard. And if you take a look way down there, that's actually the house for the person that owns this property, who's kind enough to let us use his backyard, essentially, as the backdrop.

And to get a real picture, a true picture of where we stand right now, this is a school and over there is the athletic field for the school, including a track. But of course, the miracle of television, we usually just show you this portion right here. Gives you a little bit of the flavor of what it's like here. But we're actually about eight or nine miles away from the president's ranch itself.

BLITZER: All right, Elaine. Sharing some of the secrets with us. Thanks very much, Elaine Quijano, for that from Crawford, Texas.

Here in THE SITUATION ROOM, we can bring you lots of information simultaneously. Here's what we're watching coming into CNN right now, sad story. The bodies of a mother and her two young sons found in a home near San Diego. Sheriff's deputies got a tip from a suspicious neighbor. We're monitoring the story from you. We'll get details and bring it to you.

And they're also removing some of the wreckage of that Air France flight that crash landed in Toronto last week. The investigation will continue in the laboratory.

Look at this mosquito spraying, the West Nile Virus, fears of it on the rice around Sacramento, California. Residents are told to stay indoors today as planes spray insecticide.

CNN's Zain Verjee standing by at the CNN Center in Atlanta. She's taking a look at some other stories making news right now. Zain, share with our viewers what's going on.

ZAIN VERJEE, CNN ANCHOR: Well, right now, there are many well- wishers for the widow of actor Christopher Reeve. In a statement today, Dana Reeve announced that she has lung cancer and she's currently undergoing treatment.

Sources tell CNN that the 44-year-old isn't a smoker. Christopher Reeve, long paralyzed after a horse riding accident, died last October after falling into a coma.

An extraordinary step from the Pentagon; the Army is relieving one of its four-star generals of duty. The Pentagon says General Kevin Burns was relieved of duty for matters of personal conduct. Burns had done work analyzing lessons learned from operations in Iraq and in Afghanistan. The Army says he won't work until the investigation's complete.

In Tennessee, the FBI, a SWAT team and local police are on the lookout for a duo accused of a shootout at a county courthouse in Kingston, Tennessee. George Hyatte, serving out a prison sentence, was being escorted from the courthouse, and officials say his wife gunned down a prison guard to free him.

And the Shuttle Discovery astronauts are talking about their time in space and their return to Earth. Discovery landed safely at Edwards Air Force Base in California today. The team's commander says the crew is happy to be back. And she also expressed their thoughts on coming back to Earth.

(BEGIN VIDEO CLIP)

EILEEN COLLINS, DISCOVERY COMMANDER: We know entries are basically a hazardous thing that we do with very controlled risks on them. When we're flying, we're busy. We have tasks that we need to perform. So I try to stay focused on the mission, but yes, I do -- I did think about the Columbia mission coming home, but I don't -- I wouldn't say it was a distraction but I would say it was more of a we're going to get through this and we're going to press on.

(END VIDEO CLIP)

VERJEE: You're in THE SITUATION ROOM. Wolf, back to you.

Thanks very much. CNN's Zain Verjee at the CNN Center.

In Florida right now, a Senate race to watch is in high gear. The Republican Katherine Harris launched her campaign today, taking -- talking a lot about her record in the House of Representatives but not about her claim to fame.

For better or worse, most Americans remember her for her role in Florida's presidential recount in 2000. This is a big story.

CNN's Ed Henry is joining us now live from Capitol Hill to share some additional details -- Ed.

ED HENRY, CNN CORRESPONDENT: Wolf, Katherine Harris has now embarked on a listening tour for this Senate campaign, and what she's hearing from voters is that she needs to find a way to break out from simply being known as the controversial woman at the center of that presidential recount. That episode certainly raised her name identification but also turned her into such a lightning rod that even the White House was trying to find another Republican to get into this Florida Senate race and knock Harris out.

So today at this announcement speech, Harris was trying to pivot from personal controversies to policy issues like the economy and health care. And she also went on the attack, charging that the incumbent, Bill Nelson, is out of the mainstream.

(BEGIN VIDEO CLIP)

REP. KATHERINE HARRIS (R-FL), SENATE CANDIDATE: One of the most liberal, that's not where Florida is. And with the conservative values that honor the rights and freedom of every individual, versus a far left view endorsing partial birth abortions and denying parents any input, any, for the hardest decision a minor could ever make.

(END VIDEO CLIP)

HENRY: Now Democrats say that's a false charge. Because in fact, Bill Nelson's voting record in the Senate is fairly moderate. And they also say that if Katherine Harris is so mainstream, why has she hired a new political consultant to give her a political makeover?

And in fact, speaking of makeovers, Wolf, today Katherine Harris showed another side of how she's trying to shake up this image. She tried to make light of this controversy that she has kicked up about whether or not newspapers have been doctoring photos of her to make her look more sinister because of her makeup.

She said today, she talked about her teen years, and said that was when she was wearing blue eye shadow, which was in style at that point. And she also said that she'd like to say that she's leading this Senate race right now in the early polls by an eyelash, but she knows the media will blow that out of proportion.

BLITZER: CNN's Ed Henry, covering the story for us. Thanks, Ed, very much.

Each hour here in THE SITUATION ROOM, we can give you a chance to weigh in on all the news. We call it "The Cafferty File." CNN's Jack Cafferty standing by in New York with this hour's question. We're anxiously awaiting it, Jack.

JACK CAFFERTY, CNN CORRESPONDENT: I love that. A Senate race that could turn on the eye shadow.

The woman Democrats love to hate is back. Katherine Harris now in the Florida Senate race. That will give the Democrats there something to refocus their anger on about the lost 2000 election and all the chaos and interminable recounts and court battles that will toed that election when Katherine Harris was the secretary of state in Florida.

Last year, she decided against running for an open Senate seat while President Bush was up for reelection, because some Republicans thought that she would cost him votes in Florida. The question this hour is, is Katherine Harris a good candidate for the Republican Party? You tell us. The e-mail address is CaffertyFile@CNN.com. The answer to that question will be yes if she wins.

BLITZER: Florida is an interesting state, as you know, Jack. It's not necessarily a typical southern state by any means. In fact, the southern part of Florida is largely north, and the northern part of Florida is largely south. Do you understand what I'm saying?

CAFFERTY: Yes, it's Darwin's waiting room down there.

BLITZER: Jack Cafferty, very much. Jack Cafferty will be getting back to you shortly.

Ahead here in THE SITUATION ROOM, we'll be joined live by the former New York City mayor, Rudy Giuliani. We have a new poll on how he'd do in the 2008 presidential race.

But up next, abortion politics and the so-called culture wars. Stand by for the newest sparring over John Roberts' nomination to the Supreme Court. Will it matter in the end, though?

Plus a New York tabloid is calling it the war of the roses. I'll ask Republican Senate hopeful Jeanine Pirro how hard she plans to attack Senator Hillary Clinton.

And later, we're inside an exclusive over at the underground command center where preparing for terror attacks is priority No. 1. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back. You're here in THE SITUATION ROOM. We're standing by to speak with Jeanine Pirro, one of Hillary Clinton's opponents, potential opponents in the race for the U.S. Senate. We'll speak with her live. That's coming up shortly.

There's other stories we're following, though, including the Supreme Court nominee John Roberts. He's back on Capitol Hill this hour. He's lobbying for Senate support while the fur is flying again over his record on abortion.

It's new ammunition for our regular segment here, including issues involving the so-called culture wars, the political clashes between church and state.

Our congressional correspondent, Joe Johns, is standing by at the place where the fight over Roberts will get more intense early next month. Tell our viewers where you are, John.

JOE JOHNS, CNN CORRESPONDENT: Wolf, I'm outside the Senate caucus room where it's all supported -- expected to kick off early next week. Now, there have been a number of confrontations in this room over the years: the Watergate hearings, the Clarence Thomas hearings as an example. And now some abortion rights activists are trying to turn up the heat on Judge Roberts.

(BEGIN VIDEOTAPE)

JOHN ROBERTS, SUPREME COURT NOMINEE: Very humbling.

JOHNS (voice-over): Zeroing in on John Roberts' work as a government lawyer, a new spot paid for by the abortion rights group NARAL Pro-Choice America is being called the first true attack ad in advance of September's confirmation hearings.

It was set to run starting today on cable TV and on local TV in Maine and Rhode Island. It suggests Roberts once advocated for people connected to abortion clinic attacks.

UNIDENTIFIED FEMALE: Supreme Court nominee John Roberts filed court briefs supporting violent fringe groups and a convicted clinic bomber.

JOHNS: Conservatives are furious about the ad. They say this 1991 case was about whether people seek abortions could use an old law against the Ku Klux Klan to keep anti-abortion activists to keep from blocking the doors of clinics. Roberts and the government said no. He filed a brief and got 10 minutes to argue his case before the high court, and the court agreed with him.

VICTORIA TOENSING, FORMER JUSTICE DEPARTMENT OFFICIAL: NARAL's ad is a gross misrepresentation because, No. 1, they know for sure that John Roberts opposes violence at abortion clinics. He's written a letter saying that these people are criminals.

JOHNS: Except for this flare-up, not much of a fight has materialized over Roberts so far this summer. But that hasn't stopped interest groups from getting ready for one. The conservative action group Progress for America has launched 20 web sites in 20 states promoting the nomination.

(END VIDEOTAPE)

JOHNS: So there has been a lot of shadowboxing, but we're told that, barring any surprises, Judge Roberts is expected to be confirmed -- Wolf.

BLITZER: And the chairman of the judiciary committee, Joe, Senator Specter has just sent a letter to Roberts, I understand. What's that about?

JOHNS: Well, essentially what he's saying is that Judge Roberts ought to be prepared to answer some questions about the power of Congress to enforce the commerce clause of the United States Constitution. That has become an issue because over the years, the Supreme Court has tried to brush back the power of the Congress, and not everybody in the United States Senate is happy about it, Wolf.

BLITZER: All right. Joe Johns will be busy in the coming weeks. Joe, thank you very much. She's taking on Hillary Rodham, Clinton. But can she oust the former first lady from the Senate? Coming up, the candidate, Jeanine Pirro. She'll join us live here in THE SITUATION ROOM.

And do you think the U.S. will ever capture or kill Osama bin Laden? Wait until you see our new poll numbers out this hour on the war on terror. Bill Schneider is standing by.

Plus, a smooth landing for space shuttle. But are there still troubles ahead for NASA? We'll find out next hour. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Now to the political battle brewing in a closely watched Senate race. Republican prosecutor Jeanine Pirro, well-known in New York, has increased her national profile almost overnight after announcing she will try to unseat Senator Hillary Rodham Clinton.

Jeanine Pirro joining us now live from New York. Thanks very much, Jeanine Pirro, for joining us.

Let me share with you that Quinnipiac University poll, which no doubt you've seen, that has Senator Clinton at 63 percent, Jeanine Pirro at 29 percent. That's quite a struggle you have before you.

JEANINE PIRRO, SENATE CANDIDATE: You know, Wolf, it certainly is. But I am not unaccustomed to uphill battles. When I was young prosecutor, they said women couldn't try murder cases because they couldn't go for the jugular.

And when I ran for county judge, they said women weren't tough enough. And when I ran for D.A., they said it was a man's job.

So it certainly is a daunting challenge but I'm really up for it and up to it, and I intend to run this race in a way where I end up winning it.

BLITZER: You saw the headline in the "New York Daily News," it's going to be nasty. Is it going to be nasty between you and the senator?

PIRRO: Well, I certainly hope not, Wolf, because the people of New York deserve better. The people of New York are concerned about the economy. They're concerned about Social Security, education, terrorism, public safety, issues that affect the ordinary New Yorker every day.

And the idea of making this a nasty race is just certainly not on my radar screen. But what it will be is it will be a race about accountability. It will be a race about what the candidates bring to New York and whether or not Senator Clinton intends to be a full-time senator as she pursues her race to run for president.

And the meaning of that, Wolf, is this. That if you are running for president, then New York state essentially loses its representation in the Senate, as the people of Connecticut, North Carolina and Massachusetts know. You've got to be interested and have the interest of New Yorkers first on your agenda and not be concerned about Iowa or New Hampshire.

BLITZER: The note of headline, war of the roses. She has $13 million locked up. How much money do you have?

PIRRO: Well, you know what? We haven't even announced yet, Wolf. And it's interesting. On my way here today, I was crossing the street and someone tried to give me some money.

We intend, certainly, to make enough money to have a serious race here. I think the people of New York deserve it. And I have a record of achievements that I'm proud of as a prosecutor and a judge. And issues that I think New Yorkers need to have addressed.

And I think that Hillary really has to answer some questions. No. 1, she made a promise that tens of thousands of jobs would be brought to upstate New York. I am from upstate New York. It is sad up there right now. It's not as prosperous as it was when I was growing up.

We've got to make sure that small businesses have the ability to thrive. We've got to make sure that senior citizens have the Social Security that we promised them in their golden years.

BLITZER: All right. Look.

PIRRO: We've got to have answers to some of these problems.

BLITZER: Before you can run against Senator Clinton, you have to win a Republican primary. As you know, Ed Cox, the son-in-law of the late President Richard Nixon has already announced he's a candidate, more conservative than you are on many of the issues.

This is what he said on Monday. He said, "Rather than spending these critical months deciding which office to seek, Ed Cox has been working hard to develop an aggressive effort to defeat Senator Clinton in 2006. Miss Pirro's limited record and her positions on the issues will prevent her from motivating Republican and conservative voters. This is simply a recipe for a resounding defeat."

How do you plan on beating him in a Republican primary?

PIRRO: Well, first of all, I come out of the box, Wolf, with 46 out of the county chairman, out of 62 in the state county who have urged me to run.

My support in the Republican Party is wide and deep. I have won for elected office and won four times in a county of a million people and I certainly have a record that is one of a fighter and an advocate, an agent for change in New York.

But I believe that this -- that the Republican primary will never even get to that because of the support that I have in the party. BLITZER: What, do you think you're going to force him to simply drop out and then you'll get it because you have the establishment there behind you?

PIRRO: Well, I think that it's not just the chairmen who certainly asked me to run and are supporting me, but I think it's also in terms of elected Republican officials, in terms of the ordinary people. You know, I'm not going to talk about him. There's only one person I'm running against and that's Hillary Clinton.

BLITZER: Here's what Michael Long, the chairman of the New York State Conservative Party, which is very important in Republican circles in New York state, said, according to "The New York Times": "Partial birth abortion and gay marriage are deal breakers for us. And without us, I don't think she can win for the Senate. No Republican has won statewide without our endorsement since 1974."

Do you support what's called partial birth abortion, this late form -- late term abortion procedure and gay marriage?

PIRRO: No, I don't support either. I don't support partial birth abortion or gay marriage. And I believe in the Defense of Marriage act.

And let me say, Wolf, that I have run with a conservative line every time that I've run in all four races I've won. And I'm certainly hoping to be able to get it in this race.

You know, I support permanent tax cuts. I support making sure that we are as tough as we can be in this war on terror. I support making sure that the Social Security system is addressed and solutions are made. But I am pro-choice. There's no question about it.

But at the same time, you know, what we need in New York is a candidate who is going to be able to reflect the voice of the people of New York. And not a particular constituency but all of the people. And I learned that as a prosecutor. We represent everybody. Not just one party, but everyone in the state.

BLITZER: Jeanine Pirro, yesterday someone said on this program, you'd need map quest to find Buffalo. But you went to the University at buffalo. So you clearly know where my hometown is. Jeanine Pirro joining us from New York. Thanks very much.

PIRRO: Thanks, Wolf.

BLITZER: We'll have you back.

Can a moderate Republican from New York win the Republican presidential nomination? That's just one question I'll ask Rudy Giuliani, the former New York City mayor. He'll join us here in THE SITUATION ROOM. That's coming up in the next hour.

Is President Bush doing a good job steering the economy? We'll get expert opinions on our strategy session.

And later, check this out. The president and his brother Jeb taking on each other on the gridiron. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Harris and Pirro. You're going to be hearing a lot of those names -- a lot of mentions of those names coming up in the next several months.

Katherine Harris, the former Florida secretary of state, who found herself in the spotlight with the 2000 election debacle in Florida. From there, she went national, to the House of Representatives and now she's running for the U.S. Senate from Florida.

Also seeking a Senate seat, Jeanine Pirro. She just joined us. You saw her live here on CNN. She's a high-profile New York district attorney from Westchester County, mounting a serious challenge against Hillary Rodham Clinton.

They are the topic of today's "Strategy Session," along with President Bush and the economy. Joining us here to talk about that, Democrat strategist James Carville, Republican strategist Rich Galen. Thanks to you both of you for joining us.

Let's talk about the economy. The latest numbers not so good for the president's handling of the economy, according to this A.P. poll. 41 percent approve of the way he's handling the economy, 56 percent disapprove. Can he turn that around? Speaking as a strategist, James.

JAMES CARVILLE, DEMOCRATIC STRATEGIST: Right. It's -- you know, that's one of the hardest things to do is, is that you're in office -- and we had the same problem during the Clinton administration. And the economic numbers look good, but if you go out and you argue progress, people will say he doesn't see what I'm doing. But if you don't argue progress, it's very hard to convince people.

I think what they're doing is saying, look, we're concerned about healthcare costs, we're concerned about gas prices, but underneath it, there's some pretty good numbers. They have to make the case that the things that they're doing are working. But at the same token, you have to be very careful that people don't look at you and say, oh, he thinks it's fine, he doesn't know what I'm going through. That's tough. It's tough.

BLITZER: Is this a case, Rich, where James used to say back in the Clinton days, "It's the economy, stupid"? When there's a war in Iraq, when's there a war on terror. It's not necessarily the economy, stupid.

RICH GALEN, REPUBLICAN STRATEGIST: Well, there's a disconnect somewhere, because there was a Reuters report sometime earlier this afternoon or mid-afternoon about the latest consumer confidence index numbers, which are up fairly significantly for August. So I suspect that what we're seeing in the broader survey is sort of slop-over from people's dissatisfaction with the way the war in Iraq's going and some other things. But on a personal basis, people seem to be pretty confident that as consumers, they're going to be able to make their way and make their way fairly comfortably.

BLITZER: Let's talk about this poll, this 2006 Florida Senate race poll. Bill Nelson, the incumbent Democrat, has 48 percent, according to the Strategic Vision poll. Katherine Harris, the former secretary of state, the congresswoman, has 40 percent. This race could be a close one if she gets the Republican nomination, James.

CARVILLE: It could. But then again, it would be pretty -- I think the Democrats, and I've said it before, pretty content with the way things are going on the Republican side. Senator Nelson's, you know, pretty strong. I think that if the average Democrat in Washington feels better about Florida now than he has before. But you know what, it's a very, very competitive state. And you know, it would be pretty hard to take anything for granted in a place like that.

GALEN: Yes, I think the top line -- I think the mistake people make is thinking that somehow 2000 is still resonating very strongly. 2000 didn't even resonate that strongly in 2002, when Jeb Bush won a fairly easy reelection campaign against a fairly strong opponent. So I think both of these candidates, assuming they are the final candidates, will rise and fall on their own merits without any kind of...

CARVILLE: I agree, Richard, that 2000 election is going to be hardly an issue at all.

BLITZER: What about the New York state Senate race? We just heard from Jeanine Pirro here in THE SITUATION ROOM. What do you make, Rich, of this challenge to Hillary Clinton? It's an uphill struggle..

GALEN: It is an uphill struggle. I'm not sure why -- I mean, I would like somebody to ask her why she didn't run for the open governor's seat. And if you did, I missed it in the interview. But somebody should ask her that. Or for that matter, Ed Cox (ph) could drop out and run for the empty governor's seat. I suspect she may be right. One of these two may go ahead and say, you know what, I'll just pivot around and go for governor. But, you know, Hillary Clinton has not -- has been a fairly decent senator for New York.

The big issue is going to be, will she run, you know, for president? But you know, George W. Bush won 70 percent of the vote in his re-election campaign with everybody knowing that if he got something around that he was going to run for president. So I don't think that matters.

BLITZER: Give us your sense.

CARVILLE: Well, first of all, I think you asked the right question. Who died and left you the nominee?

BLITZER: Jeanine Pirro. CARVILLE: I think (INAUDIBLE) and there's another. (INAUDIBLE) is a former mayor of Yonkers that's in there, too.

BLITZER: Well, she's got the endorsement of the Republican establishment including the governor.

CARVILLE: That and $8 will get you a cup of coffee at the Waldorf, too. That's about all that's worth. OK, I mean, Rich and I were laughing. That's good, but what's good for 46 bucks?

BLITZER: What may be more significant is the conservative party endorsement in New York state, which is very significant.

CARVILLE: And the other -- this is an interesting thing. Just looking down the line, she said she was decidedly pro-choice. I wonder what the church is going to do about giving her the sacraments. Remember, there was this big issue with Senator Kerry and he was pro- choice.

BLITZER: But most of the Republicans...

(CROSSTALK)

BLITZER: Rudy Guiliani, George Pataki. Most of the Republican establishment in New York are in favor of abortion rights for women.

GALEN: Your guy?

CARVILLE: Right, but there's -- again, what I'm saying Wolf is, a lot of times in the Republican party and particularly -- I don't know this, insurgents tend to do well. Most of the Republicans in California were big for Richard Reardon (ph). Remember when Bill Simon (ph) came out. All I'm saying is if that I were her, I would be very careful to remind Republicans that I am aware that I have a primary I intend to fight very hard, because if it looks like the establishment is ganging up on some -- on a real conservative or something, they have a way to make good things happen. I don't think -- I think she'll win, but she's got to be careful.

GALEN: I think it's interesting that the big political news this week is two Republican women running statewide. I just think that's quite a departure.

BLITZER: In New York state. All right, let's -- this is the first opportunity, James, I've had a chance to speak with you since that exchange you had with Bob Novak here on CNN last week that's caused huge, huge commotion, as you well know.

"The Wall Street Journal," writing on its editorial page yesterday, and one of the sparks that got Bob Novak to utter that bad word and to walk off the set was when you said he was playing to the editorial writers of "The Wall Street Journal." They wrote this yesterday: "Mr. Novak has since appropriately apologized for losing his cool, but Mr. Carville is lucky he didn't get punched in the nose. After more than four decades of criticizing both Republicans and Democrats, Mr. Novak doesn't need to apologize to anyone for his sincerity." You have a chance to think about that.

CARVILLE: You know, if I can tell you one thing that I'm not going to think about is "The Wall Street" editorial page. If you want to know something...

BLITZER: But what about Bob Novak?

CARVILLE: I love Bob, and I like Bob. You know, and he's got a lot going on. And you know, we do things. I'm not -- I'm a big believer that sometimes people do things. The guy said he made a mistake. And so, that's fine. We'll do the show again. I assume that he wants to. What is -- there's redemption in everything. And God knows -- I'm 60 years old. I've done things I shouldn't have done -- that this is not a huge thing. He didn't really hurt anybody. This wasn't an offense against anything. It was probably a matter of bad judgment. And he says he's sorry, that he shouldn't have done it. And it's fine with me and I look forward to his return. I mean, this is...

BLITZER: Have you spoken with him?

CARVILLE: I haven't with him, but there's no -- if I see him -- somebody asked me what would you say if you saw Bob? I'd say hey, Bob, how you doing. I mean, understand in the world of offenses that people do, this is hardly like, you know, capital offense or, as Bob and I are two Catholics, this is hardly a mortal sin. This was a venial sin. He admitted that it was something in poor judgment. I mean, "The Wall Street Journal" editorial page is punching people in the nose. You know, they're kind of cowards.

BLITZER: But very quickly, because we're out of time, in the scheme of things and the debating with Bob Novak over the years, what you said the last time, would you say that was the worst or average?

CARVILLE: It was nothing. It was just kind of a throwaway. I was just trying to have a little fun. I think in retrospect, Bob probably recognizes that. But again, I think that it was a -- he said he made a mistake. Fine. If you can't -- if you have no redemption in this world, if somebody can't make a mistake and say, I made a mistake, and you accepted it, then why live? Why live?

BLITZER: That's fair enough. You started out by saying Bob Novak. Do you love him or you like him?

CARVILLE: I like -- I said I like Bob. I like Bob. I like him, but I don't have -- I don't harbor anything against Bob. We disagree sometimes. We get passionate about things. We fight about things. I think he is somebody that made a mistake and said he did. I'm going to get into -- there are very few -- you know, I love my wife, and I'll leave it at that. And my kids.

BLITZER: James Carville, Rich Galen, thanks very much.

GALEN: I love James.

BLITZER: Coming up, new term -- new meaning to the term political football. Who knew that the Bush brothers were such sports on the grid iron? It's on our political radar.

And the newest heartbreak for Christopher Reeve's widow. Dana Reeve's journey from caregiver to cancer patient.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Welcome back. In Iraq today, another American soldier died, a victim of the latest suicide car bomb attack. With every American killed over there, public support for the war here seems to take another hit.

Let's check out our just-released poll numbers with our senior political analyst, Bill Schneider. We got a new CNN-"USA Today" poll, Bill, that says, "was it a mistake to -- asked this question -- to send U.S. troops to Iraq. Take a look at this: In July, 46 percent said yes. It's now up to 54%.

BILL SCHNEIDER, CNN POLITICAL ANALYST: That's right. That's a notable increase: Eight percent higher. Now, is that simply because of the casualties? Americans, the record shows, are willing to put up with sacrifice if they believe that there is a plan for success.

But our polling shows more and more Americans believe that we're not making progress in Iraq to establishing stability and order and just as important, that the war in Iraq is not making the United States safer from terrorism.

BLITZER: All right, let's take a look at this next question we asked. How are things going for the United States in the War on Terrorism. In 2004, 56 percent thought it was going well. That's down to 51 percent now. Another negative trend for the Bush administration.

Now, this is the War on Terror, not the war in Iraq, but it is affected by the deteriorating confidence in Iraq. You see those numbers? There's very nearly an even split on how the War on Terror is going.

Among people who think the United States made a mistake getting involved in Iraq, those numbers are three-to-one negative that the War on Terror is going poorly.

BLITZER: Here's a question that was also asked in this new CNN- "USA Today-"Gallup poll: Is it likely that the United States will capture or kill Osama Bin Laden. Last year, 66 percent of those who responded said yes. Fifty-five percent now believe it's likely that the U.S. will capture or kill Osama Bin Laden.

SCHNEIDER: Well, it has been four years since President Bush said, "Osama: Dead or alive." The United States may be getting bogged down in Iraq, Americans fear and this is also influenced by the view of the Iraq situation. Among those who say Iraq was a mistake, most believe that the United States will not get Osama Bin Laden.

BLITZER: All right. Interesting numbers. Bill Schneider, thanks very much for that.

On our political radar here in THE SITUATION ROOM, "Doctor turned Democratic party chairman, Howard Dean, says a little surgery may be needed on the presidential primary calendar in 2008, but -- and I'm quoting now, "nothing radical."

A commission is studying whether other states should move their contests closer to or even ahead of New Hampshire and Iowa. Dean may get an earful when he attends a Democratic Party fundraiser in New Hampshire tomorrow.

What do you give the president and his governor brother who have mostly everything? How about a souvenir video game showing virtual versions of themselves playing football. The Florida-based maker of the popular "Madden Football" series did just that to mark the release of its newest game.

And Rolling Stone Mick Jagger, says he's not worried about fallout from the group's new anti-Bush song that's entitled "Sweet Neo Con." According to "Newsweek" magazine, Jagger does think band mate Keith Richards might be a bit worried, because unlike the Stones' front man, he lives in the United States.

Coming up, a Republican on everyone's political radar, former New York City Mayor Rudy Giuliani. He'll joining us live in the next hour. We'll try to pin him down on his presidential ambitions and whether the War on Terror is living up to his expectations.

Just ahead, though are on-line pundits supporting or slamming the so-called "Peace Mom" protesting outside the Western White House? We'll find out when we take you inside the blogs.

You're IN THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: CNN's Zain Verjee joining us once again from the CNN Center, with a look at some other stories making news right now. Hi, Zain.

VERJEE: Hi, Wolf. Senior U.S. officials say the Bush administration could transfer hundreds of detainees from Guantanamo Bay in Cuba, to the Muslim countries where they're from.

Officials say the administration is in various stages of discussion with as many as ten countries, including Saudi Arabia and Yemen. Officials say those detainees, still considered very dangerous, will not be released.

There are amazing new pictures of the rescue of that Russian submarine in the Pacific Ocean; a mission that saved the sub crew of seven. They images come as officials in Russia launch a criminal investigation into what caused the incident. Initial findings suggest negligence on the part of officials overseeing the mission and that, that might have played a part. High gas prices have only gotten higher. Now, one government energy analyst says the U.S. should have enough gas to meet the demands through Labor Day.

The national retail price for regular unleaded is now $2.37 a gallon. Wow, that's a record high. Analysts say gas prices are up because of strong demand, rising crude oil costs, as well as recent shutdowns at several big refineries.

You're in THE SITUATION ROOM -- Wolf?

BLITZER: Zain, a quick question about those transfers from the U.S. naval base at Guantanamo Bay: How soon could they -- the transfer of the detainees, how soon could they actually begin?

VERJEE: Well, we're hearing they could happen as soon as September, just some weeks away. A senior U.S. official said that the U.S. embassies are all actively pressing various governments to make a deal. But this official also said that don't expect this to happen in one fell swoop. This is going to be a very gradual process that could take months or even years.

BLITZER: All right, Zain. We'll see you back here shortly. Zain Verjee, reporting for us.

Every hour, we have a different question here in THE SITUATION ROOM giving you our viewers a chance to weigh-in on our top stories. Let's bring in CNN's Jack Cafferty. He's standing by in New York with the "Cafferty File." What are they saying, Jack?

CAFFERTY: How are you doing, Wolf? I was just listening to Zain Verjee. It's comforting: We have enough gas to last until Labor Day. I mean, but we got that energy bill. So, everything's going to be all right.

The question this hour has to do with the Senate race down in Florida, where Katherine Harris, the former secretary of state who was in the middle of that monumental voting-recount controversy in the 2000 election, is running for the Senate.

We want to know if you think she's going to be a good candidate for the Republican Party.

Edward in Chagrin Falls, Ohio -- I think that's how you say it -- "Perhaps it's appropriate that Katherine Harris runs for the Senate to represent the people of Florida... The state is identified closely with the space program and Ms. Harris is a "Space Cadet." Ed, what a way with words.

Howard in Daytona Beach, Florida: "She'd be a wonderful senatorial candidate for the Republican party. This would ensure the reelection of Senator Nelson, who is a moderate Democrat serving the country and us Floridians extremely well."

Mitch write from Texas, "Yes, Katherine Harris is a good Republican candidate. Besides, the Democrats still haven't proven they can win a race of importance anywhere."

And Mark in Washington, D.C.: Katherine Harris couldn't beat Tony Montana or Elian Gonzalez in a boat race to Cuba. What makes the Republicans think she can beat Bill Nelson in a Senate race?

Next hour, Wolf, we've got an absolutely story. There is a convicted murderer buried in Arlington National Cemetery and it's all perfectly legal. It's disgusting. I'll tell you about it in a little bit.

BLITZER: All right, Jack. We'll stand by for that. Jack Cafferty, reporting for us with our viewer e-mail. Jack, thanks.

New information always coming into the situation room. Still ahead, Dana Reeves' shocking announcement. What does it mean? What does it mean for her health? What does it mean for her family, already hard-hit by the death of her husband, Christopher Reeve? We'll have a full report.

And we're not exposing secrets, but we are giving you some exclusive access to a secret crisis response headquarters. Kyra Phillips takes us back inside. We'll go there.

And a mom protesting the Iraq war may not necessarily have gotten the president's attention, but bloggers are riveted. We'll tell you why.

You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: You're in THE SITUATION ROOM, where we're plugged into almost everything happening on-line. Right now, we turn to the blogs where many are talking about that mother camping out in Crawford, Texas, near the president's ranch.

She wants a chance to speak with the president of the United States about the war and her son who died in Iraq last year. Our Internet reporters Jacki Schechner and Abbi Tatton are standing by. What are they saying, Jacki?

SCHECHNER: Well, Wolf, her campaign continues and their campaign to support her on-line continues, as well, at least on the progressive blogs. We told you yesterday how Cindy Sheehan posted at DailyKos.com, the top progressive blog with about a half-a-million hits a day.

Well, today or last night actually, they had posted they had gotten a phone call from Cindy in Texas, saying she was afraid that she was going to be arrested come Thursday, under the guise that she was a national security threat. These are her words; what she thinks.

A lot of the liberals blogs are posting, "why is it she was perfectly fine yesterday and by Thursday, she's going to be a national security threat?" Now, this is Skippy the Bush Kangaroo (ph) -- NERG.blogspot.com, one of many liberal blogs who've become part of a larger blog swarm.

We've used this term before, it's a lot of blogs getting behind one thing at the exact same time to push the cause. That blog swarm list, over at ShakespeareSister.blogspot.com (ph), another progressive blog and what they're pointing out is how many people have joined on -- I think it's close to 100, at this point and one of those being UpbeatDefiance.com (ph). That's the blog where Cindy herself, is posting right now.

TATTON: Blogs on the right are also weighing-in and digging on this story. One of them is Byron York (ph). He's blogging at The Corner (ph). This is the blogging arm of the conservative NationalReview.com (ph). He's saying that: OK. Cindy Sheehan has not met this time with the president but he's pointing out the "remarkable attention Sheehan has received," from top administration officials, posting a photo here from Crawford, from over the weekend, where you can see Sheehan sitting with some of those officials there. National Security Advisor Stephen Hadley is one of them.

Something else that's big on conservative blogs on this story -- one of them MicheleMalkin.com -- She's been posting in the last couple days -- is a report from Sheehan's first meeting with President Bush, the meeting last year.

That, from her hometown newspaper the "Vacaville Reporter." Some bloggers on the right are looking at this report and saying, "Hey, doesn't this show that Sheehan, at the time, liked President Bush and his position?"

Well, today the "Vacaville Reporter" is even weighing-in, saying bloggers didn't look at the whole story. They just took certain quotes out of context and Sheehan's anti-war position is not new.

SCHECHNER: Sheehan herself, is responding over at that blog I told you about: UpbeatDefiance.com -- New Democracy Rising. What she says is that her behavior between June of 2004 and now has not changed. That at the time, she was in shock and grief and now that the shock has worn off, she is angry and she wants to meet with President Bush. Wolf, she wants answers. We'll send it back to you.

BLITZER: All right. Jackie, when you talk about the progressive blogs, you're talking about liberal's left-wing blogs. Blogs associated or closely supportive of Democratic Party issues. Is that right?

SCHECHNER: That is correct, Wolf. Yes.

BLITZER: All right. Jacki Schechner, Abbi Tatton, we'll be checking back with you.

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