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Lou Dobbs Tonight
North Korea Appears To Prepare For Second Weapons Test; Chaos in Iraq; Border Violence Spreading Deeper Into United States; Deadlock At United Nations In Battle For Vacant Seat On Security Council; Minority Leader Harry Reid Battling Allegations He Violated Ethics Rules; Kansas City, Missouri Trying to Bring Back Industry; Crisis in Education Hurting Us All
Aired October 17, 2006 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: We're here in Kansas City for a very important special report. "War on the Middle Class" will be coming to you tomorrow.
Tonight, communist North Korea could be on the brink of exploding a second nuclear weapon. Pyongyang says the world has declared war on North Korea.
We'll have live reports from the Pentagon and the White House tonight.
And the most disturbing evidence yet of our worsening border security crisis. Radical Islamist terrorists have crossed our southern border with Mexico, and Venezuela may be supporting terrorism in the western hemisphere.
We'll have that special report and a great deal more straight ahead tonight.
ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Tuesday, October 17th.
Live from Kansas City, Missouri, Lou Dobbs.
DOBBS: Good evening, everybody. We're broadcasting tonight from the Liberty Memorial Museum in Kansas City. It's home of the new National World War I Museum.
Tonight we'll be reporting on the escalating war on our middle class and the rising anger of voters with Congress, corporate America and special interests that are dominating our political system.
But first, communist North Korea tonight appears to be planning a second nuclear weapons test. U.S. intelligence officials say there are signs of unusual activity at possible North Korean test sites.
Secretary of State Condoleezza Rice tonight arrives in Tokyo for the first of a series of urgent meetings with Asian leaders about the North Korean threat. Pyongyang today said the United Nations decision to impose sanctions against North Korea is nothing less than an outright declaration of war. Barbara Starr tonight reports from the Pentagon on communist North Korea's increasing belligerence. Suzanne Malveaux reports from the White House on the Bush administration's struggle to stop North Korea's defiance. And Michael Ware reporting tonight from Baghdad on new indications that U.S. strategy in Iraq is on the verge of failure.
We turn first tonight to Barbara Starr at the Pentagon -- Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Lou, tonight there is concern and caution by the U.S. intelligence community about what exactly North Korea might be up to next.
(BEGIN VIDEOTAPE)
STARR (voice-over): In Pyongyang, a lavish pro-government celebration, while the world watches and waits to see if North Korea will conduct a second underground nuclear test.
DONALD RUMSFELD, SECRETARY OF DEFENSE: There is speculation that they may want to do some additional. There's also speculation they may not. So only time will tell.
STARR: U.S. spy satellites have picked up signs of activity again at several North Korean sites, according to intelligence and military officials. The Bush administration isn't sure what it all means.
At two of the sites, small structures have been put up, perhaps to keep preparations hidden. Most worrisome, U.S. officials say, the new activity resembles what happened just before the first test.
The U.S. is closely monitoring statements by senior North Korean officials and military leaders that additional nuclear tests are in the works. On North Korean television, the U.N. sanctions are now being called "a declaration of war."
Intelligence analysts know anxiety is rising in China in recent days. There are worries additional tests would destabilize the region. The U.S. believes a defiant Kim Jong-il might pursue a second test because the first test seems to have partially failed.
JAMES LILLEY, FMR. U.S. AMB. TO SOUTH KOREA: He's thumbing his nose at the world. He's going to do this and get his people mobilized. He's going to appeal to all of his third-world friends in Iran, Venezuela, Castro in Cuba, Sudan. These are his people.
He's saying, "I can stand up, this is my nuke." It's a show.
(END VIDEOTAPE)
STARR: Lou, the U.S. is now talking a good deal to China, trying to get them to pressure the North Koreans not to conduct a second nuclear test. But the bottom line, officials say here, they do not know what North Korea will do next and nobody is willing to make any predictions -- Lou. DOBBS: Barbara, thank you very much.
Barbara Starr from the Pentagon.
The White House today saying the United States and its allies are determined to make certain North Korea renounces nuclear testing and nuclear weapons. Secretary of State Condoleezza Rice tonight arrives in Tokyo, there to coordinate international action against North Korea. But communist China is still reluctant to close North Korea's northern border.
Suzanne Malveaux has the latest for us from the White House -- Suzanne.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Lou, of course very difficult negotiations. Now that North Korea is officially a nuclear power and possibly readying for a second test, perhaps even a nuclear test, the stakes are that much higher for the Bush administration.
Secretary of State Condoleezza Rice is on her way to the region. She's going to be meeting with her counterparts in Japan, South Korea, China and Russia.
The goal of this trip of course is to convince members of the U.N. Security Council that all voted for tough sanctions against North Korea essentially to follow through. There have already been signs from the Chinese that that may not happen. They are talking about inspecting cargo going in and out of North Korea but not intercepting.
At the same time, Lou, you have those U.S. officials keeping a very close eye on the possibility of North Korea conducting a second test. The hope is from the White House, if that happens, that this will actually embolden the Bush administration in making the case that North Korea's neighbors need to get tough.
(BEGIN VIDEO CLIP)
CHRISTOPHER HILL, U.S. NUCLEAR ENVOY: I mean, I think we would all regard a second test as a -- as a very belligerent answer on North Korea's part to the -- to the international community, and I think the international community would have no choice but to respond very clearly to the -- to the DPRK on this.
(END VIDEO CLIP)
MALVEAUX: And Lou, a very important meeting took place this morning between President Bush and the foreign minister of South Korea, who will soon become the new U.N. secretary-general. Of course talking strategy.
But the big question still remains whether or not it is even going to be enough, these tough sanctions against North Korea, to ultimately get it back to the negotiating table and give up its nuclear program -- Lou.
DOBBS: Suzanne, thank you very much.
Suzanne Malveaux from the White House.
For more now on what the United Nations is planning to do about communist North Korea's nuclear threat and international defiance, we turn to Kitty Pilgrim in New York - Kitty.
KITTY PILGRIM, CNN ANCHOR: Thank you, Lou.
At the United Nations, diplomats tonight are planning to set up a sanctions committee to monitor North Korea. The Security Council wants a committee to make sure that no countries violate the U.N. sanctions against North Korea. So far, it is not clear which country will lead that committee.
Turning to the war in Iraq, insurgents have killed another one of our troops. A soldier was killed when a roadside bomb exploded in Baghdad -- 2,771 of our troops have been killed since this war began, 21,077 troops have been wounded. And of those troops, 9,534 have been seriously wounded.
Defense Secretary Donald Rumsfeld today admitted that the U.S. strategy in Iraq will face setbacks. Rumsfeld was commenting on reports that Iraqi security forces failed to stop a wave of sectarian killings in Balad, just North of Baghdad. More than 60 people were killed.
(BEGIN VIDEO CLIP)
RUMSFELD: I have felt all along that this is a very complicated business. It's difficult to do, it's hard for the Iraqis. It's something they're trying to do that they've not done before.
(END VIDEO CLIP)
PILGRIM: Michael Ware reports from Baghdad on the latest violence in Iraq -- Michael.
MICHAEL WARE, CNN CORRESPONDENT: Kitty, with the end of another weekend and the beginning of another working week, the deaths continue to mount across Iraq. Two police commandos were killed in the capital today in a suicide bombing. Two civilians in a separate mortar attack.
Thirty executed bodies found across the capital today, many showing the signs of torture, bringing the total in the last 48 hours to 90. A dozen U.S. troops were killed over the weekend.
But most significantly was the outbreak of sectarian violence in a town just north of Baghdad called Balad. There, on Friday afternoon, 19 Shia laborers were found with their heads cut off. The largely Shia community responded the next day, killing at least 38 Sunnis. Iraqi and U.S. security forces eventually moved into the town and took control, where order has at least temporarily been restored.
This does not reflect well for the future. This is potentially the face of the sectarian violence to come, particularly as U.S. forces pull back further and further and hand over to what is the shaky Iraqi security forces -- Kitty.
PILGRIM: Michael Ware reporting from Baghdad.
Still to come, the widening culture of corruption on Capitol Hill. New accusations against Senate Minority Leader Harry Reid.
Also, voters are fed up with Congress as lawmakers, corporate America and special interests escalate their war on the middle class.
And an explosive new report, rising threat to this country from the border violence in Mexico.
(COMMERCIAL BREAK)
PILGRIM: There is explosive new evidence that violence on the U.S.-Mexican border is spreading deep into this country. Now, despite that evidence, U.S. cities continue to break federal law by giving sanctuary to illegal aliens.
Casey Wian reports on a new congressional warning on border security and new evidence that terrorists have already cross the Mexican border into the United States.
And Bill Tucker reports on the movement to create sanctuary cities, a movement that is feeding this nation's illegal alien crisis.
We begin with Casey Wian -- Casey.
CASEY WIAN, CNN CORRESPONDENT: Kitty, there's an explosive new report out tonight from a congressional subcommittee on homeland security. It warns of growing threats from drug traffickers, illegal alien smugglers, and terrorists.
(BEGIN VIDEOTAPE)
WIAN (voice-over): A gun battle on the streets of Nuevo Laredo, Mexico. These scenes took place just across the Rio Grande from the United States. Mexican government troops battling the Zetas, soldiers for drug cartels. Themselves former Mexican troops or police.
This violence is increasingly spreading across the border to the United States, according to a new report from the House Homeland Security Subcommittee on Investigations.
REP. MIKE MCCAUL (R), HOMELAND SECURITY COMMITTEE: We found that the drug cartels are more violent than ever and more powerful than ever, and they are the root causes for the violence on our border. They represent the head of the snake, the head that must be eradicated.
WIAN: The report documents how Mexican drug cartels are actually increasing their grips on smuggling roots in Texas, even as the Border Patrol and National Guard deploy more resources to the area. Among its conclusions, Mexican drug traffickers are increasingly coordinating operations with U.S. gangs such as MS13.
Members of the terrorist group Hezbollah have already entered the United States across the southwest border. And Hugo Chavez's regime in Venezuela is emerging as a potential hub of terrorism in the western hemisphere. It says Venezuela is providing documents that could be used by terrorists to obtain a U.S. visa.
And it states the obvious: border patrol resources are inadequate.
GOV. RICK PERRY (R), TEXAS: It's not merely idle chatter to say that border security is critical to homeland security. To think that international terrorists have not already exploited our border is naive.
WIAN: The congressional investigation was launched in February after LOU DOBBS TONIGHT reported on a battle between U.S. law enforcement officers and Mexican drug smugglers in military uniforms who had crossed into the United States. We also reported the Homeland security Department documented 200 Mexican military incursions since 1996.
(END VIDEOTAPE)
WIAN: Among the report's proposed solutions, more Border Patrol agents, more border fencing, and increased cooperation with the Mexican government to control those drug cartels. Conspicuously absent from those recommendations, the president's proposed temporary worker program -- Kitty.
PILGRIM: Casey, this is an unbelievable report. This border is several thousand miles long. How widespread is this violence?
WIAN: It's growing more and more widespread every day, it seems.
We obtained a picture of an incredibly gruesome event. It was too gruesome for us to show on the air, but I can describe it to you.
Five Mexican police officers, they were decapitated. Their heads thrown on to a dance floor in (INAUDIBLE), Mexico, with a warning saying this is divine justice for all those who oppose the Mexican drug cartels -- Kitty.
PILGRIM: Casey, deeply shocking report. Thanks very much.
Casey Wian.
A growing number of U.S. cities are choosing to ignore the border crisis and declare themselves sanctuary cities for illegal aliens. Chicago is one of them, and it is refusing to help federal officials catch illegal aliens being smuggled into this country.
Bill Tucker reports.
(BEGIN VIDEOTAPE) BILL TUCKER, CNN CORRESPONDENT (voice-over): Being an illegal alien is protected by executive order in the city of Chicago. So protected, in fact, that the city of 2.8 million people earlier this month refused a request from the Border Patrol for cooperation in a planned operation aimed at stopping human smuggling in Chicago's Midway Airport.
This letter from the police department to the Border Patrol obtained by LOU DOBBS TONIGHT makes the reason crystal clear. "We cannot assist, participate in or cooperate with your mission. The city of Chicago is under an executive order signed by our mayor to refrain from inquiring about immigration status or enforcing federal immigration laws on behalf of the federal government."
Chicago is the city where 11 illegal aliens were recently arrested by Immigration and Customs Enforcement. They had their deportation orders delayed by a year by a judge who reasoned that the law might change.
T.J. BONNER, NATIONAL BORDER PATROL COUNCIL: I don't think that anyone's free to ignore the income tax laws. I think that the IRS and the federal government would take a very dim view of a police department refusing to assist in the enforcement of those laws. So why are we giving them a free pass and allowing them to say that they don't want to play when it comes to immigration laws?
TUCKER: The practical result of selectively enforcing laws and not enforcing others is confusion. The legal result is far more serious.
KRIS KOBACH, UNIV. OF MISSOURI-KANSAS CITY: In a society where the rule of law exists, law enforcement agencies don't pick and choose. They enforce all laws equally against all people. If law enforcement agencies can decide which laws they like and which laws they don't like, that's a recipe for corruption.
TUCKER: Sanctuary laws are illegal under federal law. They were outlawed by Congress in 1996.
(END VIDEOTAPE)
TUCKER: And looking at just gang arrest operations run by Immigration and Customs Enforcement in Chicago, it would appear that the city has a vested interest in helping enforce immigration laws. Since July of last year, ICE has arrested more than 160 illegal alien gang members in and just outside of the city.
So, Kitty, this is a public safety issue and it's one that the police, or at least the mayor, is not letting the police participate in.
PILGRIM: Thanks very much.
Bill Tucker.
Well, also in Chicago tonight, illegal alien Elvira Arellano is spending her 64th day hiding from immigration authorities in a Methodist church. Arellano entered this church August 15th after receiving a deportation order. Immigration officials are still refusing to enter this church and arrest her.
And Arellano still believes the church offers her sanctuary from deportation. She has failed in her efforts to convince federal courts that she should remain in the United States to care for her 7-year-old son.
Still ahead, Lou will be back live in Kansas City with more on the war on the middle class. Middle class voters are disgusted with this nation's political parties and voters are now fighting back.
Lou will also have a special report on the white-hot Senate race that could help Democrats regain Congress.
And we're live on Capitol Hill with the latest on the widening culture of corruption. Senate Minority Leader Harry Reid is now facing serious new ethics violations tonight.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Welcome back to Kansas City.
Kansas City is a city filled with working Americans and a city that is filled with the issues that confront and challenge these working Americans here in Kansas City and all over the country every day. Middle class voters are fed up with the failure of both political parties to protect them from attacks on their standard of living, their quality of life. Some voters are now finding a way to express their outrage to party leaders and to work for change.
Lisa Sylvester reports.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Voters are fed up with Congress -- the Foley page scandal, the Reid land deal, allegations of corruption in both parties. Lawmakers can't seem to get anything done for middle class families. They haven't raised the minimum wage or dealt with higher energy costs.
UNIDENTIFIED FEMALE: They're looking out for themselves is what they're doing. What they need to do is put term limits on the Senate and the House because those good 'ol boys have been there too long.
SYLVESTER: Their dissatisfaction is directed at Democrats and Republicans. Voters are asking, who's representing me?
No surprise, momentum is growing in favor of Independent candidates. A CNN poll found that in 2000, one in five of those surveyed said they were very or fairly likely to vote for an Independent candidate. That number is now nearly one in three. ROB RICHIE, FAIR VOTE: I think there's a -- sort of been a perfect storm of bad news for the Republican Party, and people are out there not necessarily jumping for joy with the idea of voting for Democrats.
SYLVESTER: But the political system can dissuade some voters from declaring themselves Independents. In 28 states, registered Independents cannot vote in either the Democratic or the Republican primaries, losing some of their say on who ends up on the ballot.
The process of switching party affiliations varies by states, and there are cutoff registration deadlines. So some voters are choosing to just stay at home.
LILLIE CONEY, NATIONAL COMMITTEE FOR VOTING INTEGRITY: About 30 years ago we had -- voter participation in this country was above 80 percent. Now it's hovering around 40, 45 percent, and we're talking about voting age population.
SYLVESTER: But in a year heavy with partisan bickering, and when voters are demanding their voices be heard, more appear willing to leave behind Democrats and Republicans and give Independents a second look.
(END VIDEOTAPE)
SYLVESTER: And people interested in changing their party affiliation should contact their local election officials, find out what options are available to them, and any deadlines -- Lou.
SYLVESTER: And of course, this year, the lowest voter turnout among eligible voters in a midterm election in this country's history.
Lisa, thank you very much.
Lisa Sylvester from Washington.
Please join us tomorrow night when we bring you a Lou Dobbs special report: "America Votes 2006: War on the Middle Class". I'll be reporting live from here in Kansas City, Missouri.
We'll be bringing you a town hall meeting that will be filled with working Americans and their families. We'll hear from the people on the front lines of this war against our middle class at 7:00 p.m. Eastern right here on CNN.
Now we're going to go back to Kitty Pilgrim for more of the day's news in New York. I'll be back in a minute -- Kitty.
PILGRIM: Thanks, Lou.
Well, Lisa Sylvester's report brings us to the subject of tonight's poll. Are you among those who say they are so disgusted with both Democrats and Republicans that they will register as Independents? Yes or no?
Cast your vote at LouDobbs.com. We'll bring you the results a little bit later in the broadcast.
And time now for some of your thoughts.
D.J. in New Jersey writes, "Is there a war on the middle class? Well, darned right there is! I'm a single mom. I worked my way up literally from 97 days on welfare when my ex left over 11 years to over $50,000 a year. But I have to work two jobs in order to pay my bills. The harder I work, the more behind I get."
Lucille in Florida wrote to us. "I believe the increase in population would not hurt the middle class if the masses of new people would not drain the taxes, Social Security and medical programs that the middle class is paying into with hopes of receiving it back when it is needed."
E-mail us at LouDobbs.com, and we'll have a little bit more of your thoughts later in the broadcast. Each of you whose e-mail is read here will receive a copy of Lou's new book, "War on the Middle Class".
And coming up, it may be the tightest Senate race in the country. A Missouri Republican incumbent is fighting the battle of his political life in this very conservative state.
Declining wages and unemployment -- the war on the middle class hits Kansas City.
And Lou speaks with Mayor Kay Barnes.
And the Justice Department is looking for actor Wesley Snipes. He's been indicted and so far he's nowhere to be found.
We'll have the details.
(COMMERCIAL BREAK)
ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Tuesday, October 17th.
Live from Kansas City, Missouri, here again, Lou Dobbs.
DOBBS: Welcome back.
We're here tonight reporting from Kansas City, where the war on the middle class is affecting America's heartland.
We'll be talking with the mayor of this city. We'll find out how she's trying to deal with rising unemployment and declining wages hitting her constituents, the issues of failing public education. We'll take a look at a very important Senate race here in Missouri. It is possibly the tightest Senate race in the entire country, one that is obviously extremely important to the Democrats in their effort to retake the Senate, and Republicans in their effort to hold it.
But first, we go to Kitty Pilgrim in New York for other important stories of the day. PILGRIM: An arrest warrant has been issued for the film actor Wesley Snipes. Now, the warrant was issued after Snipes was indicted today in Florida on eight counts of tax fraud and evasion. Two indictments, unsealed today, charged the film actor with filing $12 million in false tax refund claims in the mid-1990s. Other counts involve his failure to file -- even file tax returns between 1999 and the year 2004.
The actor's whereabouts remain unknown tonight. His publicist did not return our calls.
At least 42 people were taken to Pittsburgh hospitals after a three school bus accident on the interstate. The school field trip ended in a chain reaction crash in a heavy downpour. There were no reports of serious injuries.
A subway crash in Rome, Italy left one person dead and more than 100 injured. It was during morning rush hour. A moving train slammed into the back of a train that was stopped. Initially, there were fears of a terrorist attack, but now officials say they believe the accident was the result of human error or mechanical failure.
A deadlock at the United Nations tonight in the battle for a vacant seat on the powerful U.N. Security Council. Venezuela is supported by anti-U.S. countries around the world, but so far has failed to win the vote. Nevertheless, the leftist government of President Hugo Chavez is refusing to give up. Richard Roth reports from the United Nations -- Richard.
RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Kitty, the General Assembly just called it a night until Thursday because they're in a deadlock. Guatemala, Venezuela -- neither has been able to get their required number of votes.
The United States campaigned hard against Venezuela. Venezuela has protested that fact, saying it can't compete against a country which owns the house here at the United Nations.
Guatemala denies that it's being led around by the United States. It's its own country, it said.
Here at the United Nations, it's an amazing series of events. Twenty-two votes so far -- far from the record.
Just a few moments ago, U.S. ambassador to the U.N., John Bolton, on the deadlock.
(BEGIN VIDEO CLIP)
JOHN BOLTON, U.S. AMBASSADOR TO UNITED NATIONS: It's the second day now concluded, 22 ballots, 21 of which have been won by Guatemala. Sixteen in a row they have won since the tied ballot.
You can draw one conclusion, I think, from the results so far, and that is Venezuela is not going to win.
(END VIDEO CLIP)
ROTH: Now on Thursday, they'll try again. But there are going to be consultations, Kitty, tomorrow between the Latin American group in a search for perhaps a unity candidate, someone else. But right now, Guatemala and Venezuela are not giving in.
Many see this as a referendum through secret ballot on the U.S. foreign policy, a chance to get back at Washington. But John Bolton is saying Venezuela can't win. But right now, neither side conceding, though the two countries have met allegedly on a friendly basis so far here at the U.N. Back to you.
PILGRIM: Thanks very much. Richard Roth.
On Capitol Hill tonight, new evidence of the culture of corruption in Washington. Senate Minority Leader Harry Reid is battling new allegations that he violated ethics rules. Dana Bash reports from Capitol Hill.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Democratic leader Harry Reid lives in this Ritz Carlton in Washington. At Christmas time, the senator gave doormen and other employees $3,300 in tips over three years -- a generous gesture, but the money came from Reid's campaign coffers, a possible violation of election law.
SHEILA KRUMHOLZ, CENTER FOR RESPONSIVE POLITICS: You do not use campaign donations for personal use. And tipping your doorman or, you know, the condo association just doesn't pass the smell test.
BASH: Reid said his lawyers had assured him it was OK, but to be safe, he's, quote, "reimbursing the campaign from my own pocket."
Damage control for the Senate's top Democrat, under fire for potential ethics violations three weeks before an election in which Democrats are slamming Republicans for a so-called culture of corruption.
The Nevada Democrat is also battling questions about a Las Vegas land deal that earned him $700,000 in 2004.
SEN. HARRY REID (D-NV), MINORITY LEADER: I bought a piece of land, sold it six years later. Everything was reported. It was all transparent.
BASH: Reid did report to Congress he owned the land and paid taxes on it, but he did not disclose that three years before selling it, he transferred ownership to a limited liability corporation. Aides say the senator wanted to develop the land and made that transfer for legal protection.
Reid now says he'll amend four years of ethics reports to be more transparent about the deal.
KRUMHOLZ: I would expect that a person who's been in Congress as long as Harry Reid has been would know better to provide as complete a picture as possible.
BASH: For a GOP under siege by scandal, from Mark Foley to new revelations about Congressman Curt Weldon, Reid's troubles give Republicans ammunition to return fire on the campaign trail.
Republican operatives are playing it up in battleground states, like on this Tennessee radio show.
DAN RONAYNE, NATIONAL REPUBLICAN SENATORIAL COMMITTEE: Harry Reid said this whole campaign is going to be about ethics. I think the voters can fairly look at that and say there's some hypocrisy there.
BASH: Experts say voters probably won't be swayed by more reports of scandal in either party, because other issues are shaping the election.
ANDREW KOHUT, PEW RESEARCH CENTER: Iraq, the economy, health care, and a sense that the country is not on the right course are the major reasons. And President Bush himself and discontent with his administration are the reason the Republicans are in big trouble.
(END VIDEOTAPE)
BASH: And when voters are asked which party is more ethical, they say Democrats, but by a pretty slim margin, Kitty. Voters may be sour on Republicans, but in the words of one pollster, they're not doing handstands over Democrats either -- Kitty.
PILGRIM: Thanks very much, Dana Bash.
And let's go back now to Lou in Kansas City -- Lou.
DOBBS: Kitty, thank you very much.
The Senate race in the state of Missouri is a key battleground in the Democrats' quest to retake the Senate. Incumbent Republican Senator Jim Talent is pitted against Democratic challenger Claire McCaskill. They are locked in what appears right now to be an absolute dead heat going into the final weeks of this campaign. John King has the report.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Can you turn your forms in? If you've filled out a 72-hour form...
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): Southwest Missouri is conservative country, the Bible belt. The stakes of this year's Senate race lost on no one.
SEN. GARY NORDLER, MISSOURI STATE SENATOR: This race will be decisive in determining who controls the United States Senate in the next term.
KING: Introduction over, incumbent Republican Jim Talent quickly draws distinctions he thinks will make a difference in these parts.
SEN. JIM TALENT (R), MISSOURI: I believe marriage is a relationship between a man and a woman. I supported the marriage amendment to the United States Constitution. My opponent didn't. I supported the ban on partial birth abortions. She's opposed to that.
KING: State Auditor Claire McCaskill lost a close race for governor two years ago because big margins in St. Louis and Kansas City were not enough to offset a dismal showing in rural communities.
CLAIRE MCCASKILL (D), MISSOURI STATE AUDITOR: Big mistake. I've been to rural Missouri constantly in this race. I've listened. They're frustrated.
UNIDENTIFIED MALE: Do you have a moment? I could ask you a couple of questions.
KING: At GOP headquarters in conservative Joplin, calls to Republican voters do turn up evidence some are looking elsewhere this time.
UNIDENTIFIED MALE: Do you support Senator Jim Talent or Auditor Claire McCaskill for the United States Senate? McCaskill? OK.
KING: At Joplin's 1st Presbyterian Church, Pastor Cliff Mansley predicts talk of major conservative angst will be proven wrong come election day.
REV. CLIFF MANSLEY, 1ST PRESBYTERIAN CHURCH: There are going to be some people who are frustrated with what they see, but I think that's a fairly small percentage of people in terms of how they vote.
KING: But in this race and similar Senate contests in Ohio, Virginia and Tennessee, just a small shift in rural communities could be enough for Democrats. And Talent's sharpening attacks reflect GOP jitters.
At a debate Monday night in conservative Springfield, he demanded McCaskill release her husband's tax returns.
TALENT: We have reason to believe that maybe she and her husband haven't paid all of them.
KING: McCaskill called it a desperate smear.
Four years ago, Talent and the president campaigned shoulder to shoulder in southwest Missouri. This year, not one mention of Mr. Bush in the senator's 15-minute stump speech.
TALENT: Because he's not running in the race.
KING: It's one of those little differences that could affect the margins in the Bible Belt, and the balance of power in Washington.
(END VIDEOTAPE) KING: So you might call Missouri the Republican Senate firewall. The party figures if it can hold on to this seat, it will most likely protect its Senate majority. As a result of that, Lou, the Republicans are coming in here pouring in the money for late TV ads, also sending in paid volunteers to use what even the Democrats concede is a much superior voter turnout machine.
DOBBS: It's an interesting contest from a number of perspectives. But you've got Senator Talent basically saying a few months ago that everything's fine in Iraq. You've got Claire McCaskill basically accusing President Bush of being a racist in the way in which the federal government responded to Hurricane Katrina.
The voters have got a lot to work on here.
KING: They do have a lot to work on, and as you know from being here, it's a very complicated state. You have St. Louis and Kansas City, the urban areas, but a close race is usually won in southern Missouri. She ran for governor in 2004. She just lost. She got 33 percent in the conservative, southern part of the state. The last Democrat who won in a close race for governor was Bob Holden. He got 41 percent, so a pretty good test. She needs to get up in conservative southern Missouri several points.
DOBBS: Claire breaks, however, on a couple of really important issues that at least are important to voters around the country. It's a little early to judge here, but we've just had the Supreme Court of the state overturn the voter I.D. law. We have Senator Talent absolutely breaking with President Bush on so-called comprehensive immigration reform or amnesty. You got Claire McCaskill supporting, quote, unquote, a guest worker program. How is that playing?
KING: Well, she says she's against citizenship for anyone in the guest worker program, but she does support the guest worker program. Senator Talent is hitting that one hard down in the south, gay marriage, abortion, immigration, trying to get the conservative voters to say, you might be mad at Washington, you might be a little mad at me, you might be mad at the president, but she'll be worse. That's essentially his closing message.
DOBBS: John King, thank you very much.
We'll find out just how the mayor feels about how her city is coping with the war on the middle class.
Stay with us. I'll be talking with the mayor about this city and its terrific citizens next here, as we continue our report live from Kansas City, Missouri.
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DOBBS: Welcome back. We're here in Kansas City, Missouri.
The people of Kansas City, just like those in nearly every other city in this country, are on the front lines in the war against our middle class. Earlier I talked with the mayor of this city, Mayor Kay Barnes, and I asked her just how is her city facing the issues brought on by this war on the middle class.
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MAYOR KAY BARNES, KANSAS CITY, MISSOURI: Well, first, we're trying to create an environment here in Kansas City, an economy where people are able to find jobs in construction and new jobs as a result of, really, $4.5 billion worth of projects. However, you're absolutely right, whether it's health care concerns, cost of higher education -- and certainly we are lobbying our state government, for example, to be as responsive as possible, as well as the federal government.
DOBBS: One of the difficulties in education is that tremendous gap between ethnic groups and races -- nationwide, half of the black students in the country, half of the Hispanic students dropping out of high school. You have a lot of responsibilities that don't go directly to education. But that's so critically important, and you're the co-chair of the Mayor's Conference, nationally. How are we going to deal with this issue?
BARNES: We're making some progress in Kansas City, both in Kansas City, Kansas and here in Kansas City, Missouri. We're working closely with the Gates Foundation. There have been major new programs put into each of those two major school districts, which have been very troubled in the past.
And I would not paint a picture that would suggest that everything has been fixed. Nothing could be further from the truth. But we're making progress, focusing on smaller educational groups within the school. That seems to be making a difference.
DOBBS: Well, good.
Like any other community in this country, it seems in nearly every -- where it was once a border problem is now a national problem, a national crisis. Illegal immigration, how is the city responding, how well are you working with federal officials on that issue?
BARNES: Well, certainly we have what I think is a model program here in a portion of Kansas City, Missouri, on the west side, where we have an effort, primarily by volunteers working with the police department, to work with the immigrants, some of whom are illegal and doing what is necessary to get them back to where they came from if necessary.
DOBBS: Deporting.
BARNES: And also legal immigrants who come here, often very disadvantaged. So I think we are figuring out at least some of the things that need to happen.
DOBBS: Your state Supreme Court overruled the voter I.D.
BARNES: Yes.
DOBBS: What's your reaction to that, and what will be the impact?
BARNES: Well, I'm delighted because I think that there are so many people who are -- deserve to vote and are registered voters or can become registered voters, who don't have the wherewithal to deal with having to go have a picture taken and so on. The assumption that everybody has a driver's license, for example, is a false assumption. So I want to make the playing field as level and as easy as possible for poor people to be able to vote.
DOBBS: Mayor, it's good to be with you. We appreciate the opportunity to be with you in your beautiful city. Thank you.
BARNES: Welcome to the heart of America.
DOBBS: You've got it. Thank you very much.
BARNES: Thank you.
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DOBBS: Mayor Kay Barnes.
During the mayor's tenure, Kansas City has become the second largest garment producing city in this country. The mayor's also spearheading a project to revitalize this downtown area, trying to bring more jobs back to the city. We should point out that while it's the second largest garment producing city, this country is still dependent upon foreign producers for 96 percent of our clothing.
We're going back to Kitty Pilgrim in New York -- Kitty.
PILGRIM: Thank you, Lou.
A reminder now to vote in tonight's poll. Are you among those who say they are so disgusted with both Democrats and Republicans that they will register as independents? That's a yes or no vote. Cast your vote at LouDobbs.com. And we'll bring you the results in just a few minutes.
NASA scientists are studying amazing new pictures of Mars. The new images provide the highest resolution pictures yet of the Martian icecaps. Now such researchers are helping NASA study climate patterns on Mars. And researchers want to know if there's enough water on Mars to support a manned mission.
Just ahead, more from Lou in Kansas City. Plus, who is failing in America's public schools? The numbers are shocking. New reports from the experts when we come back.
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PILGRIM: Coming up shortly here on CNN, "THE SITUATION ROOM" with Wolf Blitzer -- Wolf.
WOLF BLITZER, CNN ANCHOR: Thanks very much, Kitty. The nuclear arms race -- will North Korea's recent test -- we'll take a closer look at how fast other nations in the region could build up their own arsenals. Get this -- could it be only a matter of a few months?
Congressional candidates feeling the pressure. We're on the campaign trail with Congressman Chris Shays as he fights for his political life. Does he stand by some of the more controversial things he's said lately?
And who will America's 300 millionth person be? It may not be someone born here in the United States. We're going to take a closer look at the controversy.
And what's in a name? CNN's Jeanne Moos on how Hillary Clinton got her first name. This is a story you're going to want to see. All that coming up right here in "THE SITUATION ROOM" -- Kitty.
PILGRIM: Thanks, Wolf.
The crisis in education in this country is hurting us all, but some more than others. Bob Wise is a former governor of West Virginia, also president of the Alliance for Excellent Education, and his group has just issued some shocking new findings. And he joins us live from Washington.
And thanks for being with us.
BOB WISE, ALLIANCE FOR EXCELLENT EDUCATION: Good to be with you.
PILGRIM: You know, I was looking through some of these numbers. The U.S. ranks 11th among countries in 25 to 34-year-olds who finish high school -- 11th. And recent grads, we're 17th. In college graduates, we're 7th. These are really, really depressing numbers. Were you surprised when you started to look into this?
WISE: I really was. I knew that we were slipping. Indeed, if these were the Olympics, there would be an outcry, because the other statistics are all so glaring. Amongst developed nations, our 15- year-olds are now showing themselves to be 24th in math ability, 15th in reading ability, and as you just pointed out, 17th in overall graduation rates. And what that means, though, is that not only are we slipping at home, but as we have to compete even more aggressively abroad, we're less and less prepared.
And what our study also just showed -- a recent analysis we did that we released yesterday -- is that amongst our minority students, there's great opportunities because if we can get their graduation rates up to their white counterparts, by 2020 we'll have $310 billion more of wages coming into the economy, and seven million more high school graduates who are much more likely to be tax payers instead of tax payers, but that's the challenge, is getting them up there.
PILGRIM: Bob, let's take our viewers through some of these numbers also.
WISE: Sure.
PILGRIM: In minority graduations, let's just look. And your report says our nation's graduation rates are dismal, especially among minority students. Every year more than one million students drop out of high school without a diploma.
Only 52 percent of Hispanics, 56 percent of African-Americans, 57 percent of Native-American students graduate on time, and that compares to 78 percent of white students. Why does this continue to be a national problem? Why are we seeing such a disparity among these different ethnic groups?
WISE: Well, I believe there are several reasons. One is because we've never come to grips with the problem in high schools. We assumed if we took care of it early on in the early grades, build a strong foundation in effect, the students could finish the house. And so we didn't concentrate on high schools.
We haven't come to grips with the fact that 70 percent of our eighth graders, according to the only national test we have, 70 percent of our eighth graders read below grade level. Almost 30 percent read several grades below grade level.
And so we -- and finally, we haven't realized or accepted the fact that our high schools, which served us well 50 years ago, are dealing with a different economy today.
And just as you've pointed out so many times on this show, that where somebody could expect to make a good income, support a family without a high school diploma working in a manufacturing plant 30 or 40 years ago, that simply doesn't exist. Ninety percent of our fastest growing jobs in this country will require some kind of postsecondary education.
PILGRIM: You know, I can almost hear people listening to this report and if they have sterling children who are doing well in school, they say, well, why does this affect me? But it really does affect the overall economy. And you've done some statistic crunching on that, too?
WISE: It affects all of us. Who's affected when somebody drops out? The first is the student themselves, for all the problems they run into. And the second group is the rest of us because, for instance, what we see here is that if we don't deal with this dropout crisis, then what we will have is we will have -- for instance, dropouts, roughly only 40 percent of them will be working.
They're much more likely to be -- 75 percent of our prison population and state prisons, our high school dropouts, the social welfare costs. We will all be paying for the fact that some of our citizens aren't able to move ahead.
Conversely, the most exciting thing to me, though, is if we'll take this problem on, we will see great growth in our economy. And for business particularly, this is a major issue because if we want to have a nation of consumers who can continue to drive this economy, that means they have to be making good wages. And education increasingly is the main way that happens.
PILGRIM: Well, thank you for bringing us this study, Bob Wise, former governor of West Virginia and president of the Alliance for Excellent Education. Thanks for being with us.
WISE: Thank you.
PILGRIM: And still ahead, more with Lou in Kansas City, as well as the results of tonight's poll and some more of your thoughts, so stay with us.
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PILGRIM: Now the results of tonight's poll. Sixty-five percent of you are among those who say they are so disgusted with both Democrats and Republicans that they will register as independents. And time now for more of your thoughts.
Lynn in New Jersey writes, "Help. I have no one to vote for in this election from either party. Neither party has put forth anyone I want to represent me or my family. Exactly what are we supposed to do, and how do we, in the middle class, get representation this election?"
And Fred in Pennsylvania wrote to us, "China is moving troops, putting up concrete barriers and stringing barbed wire just in case of an influx of refugees from North Korea. I'm sure the Chinese would contract to provide border security for our Mexican border. It would be done in record time, be effective, and save us a bundle."
We love hearing from you. Send us your thoughts at LouDobbs.com. And each of you whose e-mail is read here will receive a copy of Lou's important new book, "War On The Middle Class."
And let's go back now to Lou in Kansas City for a preview of tomorrow's special edition of LOU DOBBS TONIGHT -- Lou.
DOBBS: It's a great book, Kitty. I expect you've bought 10, 12 copies of that.
PILGRIM: Absolutely.
DOBBS: Thank you. It's been great co-anchoring with you, especially here tonight from Kansas City where tomorrow we're going to have a very special report, "America Votes, 2006, War on the Middle Class." We'll be reporting on Washington's all-out assault on our middle class and corporate America's assault as well. Middle class America is simply under attack.
I'll be joined by some of the nation's leading political analysts, and most importantly, we'll have a live town hall audience and feature American middle class families. It all begins at 7:00 p.m. Eastern, here on CNN.
For all of us, good night from Kansas City and New York. "THE SITUATION ROOM" begins now with Wolf Blitzer -- Wolf. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
