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Lou Dobbs Tonight

MTV Pushing Amnesty?; Ahmadinejad Visits Columbia University; Bush Administration Touts New Free Trade Deals

Aired September 24, 2007 - 18:00   ET

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


KITTY PILGRIM, CNN ANCHOR: Tonight, the pro-illegal alien lobby appears to have a powerful new ally, MTV. The network's new Latino channel is highlighting demands for amnesty for millions of illegal aliens.
Also, the Bush administration is pushing new so-called free trade deals at the expense of our middle class. Many members of the Congress are refusing to bow to the will of the White House.

And America's failed trade policies could enable foreigners to go on a shopping spree for critically important U.S. assets. Many of those assets could soon owned by communist China and Middle Eastern countries -- all of that and more straight ahead tonight.

ANNOUNCER: This is LOU DOBBS TONIGHT: news, debate, and opinion for Monday, September 24.

Live from New York, sitting in for Lou Dobbs, Kitty Pilgrim.

PILGRIM: Good evening, everybody.

Iranian President Mahmoud Ahmadinejad faced scathing criticism when he delivered a speech at Columbia University in New York. Ahmadinejad strongly rejected criticism of Iran's human rights records and he insisted Tehran is not building nuclear weapons.

But the president of Columbia University, Lee Bollinger, accused Ahmadinejad of being a -- quote -- "petty and cruel dictator." And thousands of people protested against Ahmadinejad outside the university.

We begin with a report by Jim Acosta at Columbia University -- Jim.

JIM ACOSTA, CNN CORRESPONDENT: Kitty, the man dubbed the face of evil by protesters out here today showed his face. And, while Mahmoud Ahmadinejad got an earful here today, he also stuck to his guns.

(BEGIN VIDEOTAPE)

UNIDENTIFIED PROTESTERS: Columbia. Shame on Columbia.

ACOSTA (voice-over): Outside the campus of Columbia University, it was a welcome fit for a dictator. Protesters waved signs blaring "Hitler Lives." "The New Daily news" announced on its front page, "The evil has landed." Inside the university's auditorium, the reception was just as cold.

LEE BOLLINGER, PRESIDENT, COLUMBIA UNIVERSITY: Mr. President, you exhibit all the signs of pretty and cruel dictator.

ACOSTA: The Iranian leader was all but ambushed as he was introduced by Columbia's president, Lee Bollinger.

BOLLINGER: I am only a professor who is also university president and today I feel all the weight of the modern civilized world yearning to express the revulsion at what you stand for. I only wish I could do better.

ACOSTA: After a rambling speech, the real fireworks came as Ahmadinejad opened the floor to questions. Defending his nation's right to nuclear power, the president of Iran raised questions about who carried out the 9/11 attacks. He challenged Israel's legitimacy. And he suggested the Holocaust should still be open to historical research.

MAHMOUD AHMADINEJAD, IRANIAN PRESIDENT (through translator): Can we close the books for good on a historical event?

ACOSTA: But perhaps the biggest shock of all was this stunning claim.

AHMADINEJAD (through translator): In Iran, we don't have homosexuals, like in your country.

(LAUGHTER)

AHMADINEJAD (through translator): We don't have that in our country.

ACOSTA: Outside the speech, protesters clashed over whether Columbia University made a big mistake inviting Ahmadinejad to speak.

UNIDENTIFIED FEMALE: He is a known state sponsor of terrorism. He wants to destroy another sovereign nation and has many human rights violations. And I don't believe that the school should be endorsing that.

ACOSTA: Kevin Hermening is one of the Americans held captive during the 1979 hostage crisis in Iran.

KEVIN HERMENING, FORMER HOSTAGE IN IRAN: I would like to introduce him to a couple of rubber hoses, just like he and his colleagues introduced some of my colleagues to back in 1979.

ACOSTA: Many believe of the former hostages believe to this day, Ahmadinejad was actively involved.

(END VIDEOTAPE)

ACOSTA: As for the controversy whether Ahmadinejad will visit ground zero, the Iranian leader said he's not going this year, but, Kitty, he said he would like to stop by next year.

PILGRIM: Well, that's another year to consider the debate.

Meanwhile, I have a quick follow-up question. Has the State Department resolved the claim that Ahmadinejad was one of the men involved in the hostage crisis, Jim?

ACOSTA: The State Department was asked about that very issue today and the response was, it's still an open issue -- Kitty.

PILGRIM: Thanks very much, Jim Acosta.

Well, President Ahmadinejad tomorrow will address the U.N. General Assembly. Ahmadinejad is expected to repeat his assertion that Iran's nuclear program is entirely for peaceful purposes.

But the United States and other countries do not believe that and are trying to push through new sanctions against Tehran.

Richard Roth reports from the United Nations -- Richard.

RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: Kitty, I can guarantee you that tomorrow the Iranian leader will not talk about homosexuals or imprisoned scholars before the General Assembly. It's his third straight appearance and it's likely to be a theme filled with religious overtones and other comments on the world stage, accusing the U.S. of dominating.

A very interesting image today. This is President Ahmadinejad coming to the United Nations earlier today. There was a moment where many people in the U.N. were watching the Iranian president appear at Columbia University. They were watching a television monitor, this all while a big climate change conference was going on here at the United Nations.

The Iranian president certainly dominating attention, no matter where he was.

Meanwhile, the U.S. national security adviser, Stephen Hadley, saying he would like to hear the Iranian leader talk about sending terrorists across the border into Iraq and how it's not complying with the International Atomic Energy Agency regarding its nuclear ambitions -- Kitty.

PILGRIM: Richard, is this by far the highlight of the session? Is this where the focus, maybe not the most important thing, but is this where most of the media focus is?

ROTH: Well, it continues to stay on the uranium, but let's remember President Bush will talk in the morning. It will be hours later before the Iranian leader speaks. White House officials saying President Bush may not refer that much directly this time to Iran.

And of course on Wednesday, there's President Chavez of Venezuela.

PILGRIM: Well, that's always a hard act to follow.

Thanks very much, Richard Roth.

Well, as President Ahmadinejad declared his commitment to peace, his government took aggressive new action against Iraq. Iran closed major border crossings along its frontier with northeastern Iraq. Now, this action could damage the economy for the pro-U.S. Kurdish region of Iraq. This move is a retaliation for the U.S. capture of another Iranian special forces officer inside Iraq.

The United States says Iran is helping insurgents kill our troops.

Well, a bomb that may have come from Iran has killed another one of our troops. The bomb was an explosive-formed penetrator. The military says Iran has been supplying that type of bomb to insurgents. And a second soldier was killed by enemy gunfire; 57 of our troops have been killed in Iraq so far this month;3,799 of our troops have been killed since the war began; 27,936 troops have been wounded, 12,537 seriously.

Well, joining me now to tell us all about the U.S. response to Iran's threats and aggressive military buildup, we're joined by White House correspondent Suzanne Malveaux, who is in New York for the United Nations meeting. And also joining us from Washington is our senior Pentagon correspondent, Jamie McIntyre.

But, first, let's start with Suzanne.

And, Suzanne, what did the White House have to say about the Ahmadinejad speech?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, you know, basically, they tried to ignore this. This was their strategy. They tried to minimize and marginalize the fact that he was actually here in New York, because really what they're trying to do is say, look, he's not important.

I spoke with the White House secretary, Dana Perino, who said, look, it doesn't matter what he says. It's what he does.

And they're not satisfied with the fact that they believe he's still enriching uranium to build a nuclear bomb. Now, the problem they're having however here is that really the United Nations Security Council, they don't have the votes, those five permanent members, to push not the first set or the second set, but the third set of sanctions against Iran.

PILGRIM: Now, we just heard Richard Roth say the president may not even refer to Ahmadinejad's comments, either at Columbia today or at the U.N. Do you think that that is probably the approach the White House will take, typically? Would they tend to ignore?

MALVEAUX: Well, absolutely, because we didn't even hear President Bush leading up to this. He doesn't even call him Ahmadinejad. He says, he is the president of Iran. That's how he refers to him.

Tomorrow, what he's going to talk about is kind of broad themes, Middle East peace process. He was talking to the Palestinian leadership today, as well as Tony Blair, as its Middle East peace envoy. He will talk about Darfur. He will talk about Burma, places where freedoms and democracy are not there. And so that's kind of the broad brushstroke.

It's really kind of in answer to the criticism that he is a warmonger. He's trying to move that he is also a peacemaker as well.

PILGRIM: And quite rightly the president will set his own agenda on what topics he would like to address, rather than react to other topics.

Let me get Jamie McIntyre in on this.

And, Jamie, all the words today about peace and the efforts joining the world community and all that, very little to be done with Iran, in terms of actions, in terms of stopping insurgents going into Iraq.

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: That's right.

From the Pentagon's point of view, Iran just keeps coming up with new ways to become a major thorn in the side of the U.S. effort in Iraq. And this border closure that you mentioned earlier is just the latest example. As you said, it's in protest over that capture of an Iranian operative that the U.S. military says is part of the Quds Force of the Iranian Revolutionary Guard.

Iran says this official was just an official in charge of the border with border crossings and was in the semi-autonomous region of Kurdistan at the request of the Kurdish government. And what they have done here by closing these borders and putting economic pressure on the Kurds is they're trying to drive a wedge and somewhat successful in doing that between the United States and really its closest allies in Iraq, the Kurds, because this action has really put everybody on the defensive.

PILGRIM: What does the Pentagon say about the amount of weaponry that is coming from Iran at this moment?

MCINTYRE: Well, they say it keeps on coming. They keep finding more of these electrically formed projectiles. And just over the weekend they announced that they have found Iranian-made surface-to- air missiles, shoulder-fired missiles, that are very deadly against aircraft, heat-seeking missiles that they have also recovered.

So, they say the weapons haven't stopped, the training hasn't stopped, and the meddling hasn't stopped.

PILGRIM: All right, thanks very much, Jamie McIntyre and thanks again to our correspondent Suzanne Malveaux. Thank you.

Still to come, a new threat to our national security. Christine Romans will have that report -- Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: Kitty, communist China and Middle East countries are flush with cash to buy U.S. companies, some of them in critically important areas of our U.S. economy. I will have that story coming up.

PILGRIM: Thanks, Christine.

Also a massive bust against an illegal steroid producer with very strong links to communist China.

And Senator Hillary Clinton wins some key endorsements in her battle for the Democratic presidential nomination.

MTV joins the national debate over illegal immigration and border security.

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: The illegal alien amnesty movement may have found a new partner, MTV. Well, the network's Latino channel, MTV Tr3s, is scheduled to air a program this weekend called "Beyond Borders," ostensibly to explore solutions to the illegal immigration crisis.

Casey Wian has our reports.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): MTV has long history of youth-oriented political activism with its Choose or Lose campaign and partnership with Rock the Vote. Now MTV's fledging Latino network, MTV Tr3s, is entering the immigration debate.

LILY NEUMEYER, VICE PRESIDENT, MTV TR3S: Seventy-six point of the audience that we poll said that the issue of immigration and the stance on immigration of the candidates will determine who they're going to vote in the presidential election.

WIAN: MTV Tr3s says its "Beyond Borders" program, a panel discussion among Latino activists, entertainers, and others, is giving a voice to youth who are ready to go beyond the politics and rhetoric of the immigration debate.

UNIDENTIFIED MALE: Do you think President Bush is the best amigo for Latinos in the immigration debate?

WIAN: "I want to see action," says California Congressman Xavier Becerra, an advocate of giving legal status to millions of illegal immigrants.

Following MTV Tr3s' format, the forum was conducted in Spanglish, a mix of Spanish and English.

UNIDENTIFIED MALE: Why do you think so many other artists given (SPEAKING SPANISH)

UNIDENTIFIED FEMALE: I find it hard to believe that America does not understand our presence here in the United States. We are here working the most undesirable jobs. I just want to know why they think that we're taking the jobs that they want, because we really aren't.

WIAN: That was disputed by the forum's lone voice opposing amnesty, a young Minuteman.

CALAN, MINUTEMAN: Well, that's a difficult question for me to exactly tackle. I do believe that Americans will do those jobs.

WIAN: The network would not permit our camera to record the event. It provided clips and access to audience members, who viewed a documentary about life on the border.

MARIA FRANCO, ATTENDED PANEL: I have a lot of friends and family members who are my age, and are trying to go to school, trying to get an education. They keep up a good GPA, but have to be deported sadly because they have no choice. They have been here since they were young and just trying to go to school

WIAN: The MTV Tr3s Web site has a poll question asking not whether illegal aliens should receive amnesty, but which illegal aliens should receive amnesty first. The documentary and forum airs Saturday.

Casey Wian, CNN, Los Angeles.

(END VIDEOTAPE)

PILGRIM: Also participating in the forum, the National Council of La Raza, a leading open border lobbying group. MTV Tr3s is partnered with The League of United Latin American Citizens, or LULAC, another major advocate for illegal alien amnesty.

The Drug Enforcement Administration today announced a major action against illegal steroid producers. More than 100 people were arrested and dozens of steroid labs closed. Now, these labs obtained the raw ingredients for steroid production from communist China.

And as Kelli Arena now reports, the DEA says the Chinese government cooperated in the investigation.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): As steroid busts go, it was a grand slam. The 18-month investigation led to more than 120 arrests and DEA says more could come.

JOHN GILBRIDE, DEA SPECIAL AGENT: We have a whole list of names that we're going through at the current time. And we will look at all of the individuals that we have identified as end users of the anabolic steroids.

ARENA: Agents shut down 56 laboratories in the United States and seized nearly 11.5 million steroid doses, plus 500 pounds of raw powder from China used to make steroids.

RUSTY PAYNE, DEA SPOKESMAN: We now know the entire chain from the manufacturers all the way down to the user.

ARENA: The DEA says that chain begins with dozens of companies in China, the sole provider of raw materials for steroids to the United States.

Steroids are cooked up in labs, then sold to U.S. athletes, from the pros to high schoolers, mostly online.

DR. GARY WADLER, STEROIDS EXPERT: Studies have shown in recent years as many as 4 percent of high school seniors have used anabolic steroids and as many as 2 percent of eighth graders have used anabolic steroids. You see them in our gyms. You see them in our schools.

ARENA: But cutting off the supply of raw materials may be tougher than arresting users. So far only one Chinese lab has been taken down. U.S. officials say they provided intelligence on 37 companies there hope the Chinese follow up.

(on camera): Now, there is one incentive for China to get tough, and that's the upcoming 2008 Beijing Olympics. Some investigators say that the Games will motivate the Chinese to crack down or else risk a lot of terrible P.R.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

PILGRIM: Besides China, eight other countries helped the U.S. in this investigation, Mexico, Canada, Australia, Belgium, Denmark, Germany, Sweden and Thailand.

Coming up, Middle East countries and communist China are on a shopping spree. We will tell you why you should be concerned.

And the Bush administration is pushing another free trade agreement. What will it mean for American jobs?

We will have a report. Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Communist China is flush with cash from the trade imbalance with the United States. Middle Eastern countries are rich with profits from the oil trade, and they are all in the market for U.S. assets. And there are major security concerns over foreign ownership of key American companies and institutions.

As Christine Romans reports, America's own failed trade policies allowed this to happen.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): America's addiction to foreign oil and cheap manufactured goods puts trillions of dollars into the pockets of Middle Eastern governments and the communist Chinese. And those governments now have the money to buy key American assets and industries.

DAVID SIROTA, AUTHOR, "HOSTILE TAKEOVER": We have a policy that builds up deficits, builds up cash reserves for other countries, and we then allow that money to come back to the country to sell off our assets. The auction is on. America is for sale, and we should all expect this to just increase.

ROMANS: The U.S. imports almost 14 million barrels a day of oil, 20 percent of that from the Persian Gulf. With oil a record 80-plus dollars a barrel, Middle Eastern governments are flush with cash and they're spending.

Consider Abu Dhabi's $1.35 billion investment in the politically connected Carlyle Group and Dubai's move for a significant 20 percent stake in the Nasdaq stock market. That investment drew immediate calls for a national security review.

SEN. CHARLES SCHUMER (D), NEW YORK: We must be careful of the kinds of investments made in our critical financial infrastructure, such as financial exchanges, as well as in utilities and other areas that are vital to the operation and security of this country.

ROMANS: The Chinese government has already shown interest in American oil assets, and clearly has the money to do it. The Chinese hold an incredible $1.3 trillion in U.S. currency and bonds. As Americans spend billions on toys, shoes and clothes made in China, China can spend those billions to invest in U.S. industry.

(END VIDEOTAPE)

ROMANS: Now, the United States is more open to direct investment than any country in the world. But should there be more serious questions for governments that are buying strategic U.S. assets?

In the case of the Dubai-Nasdaq deal, those companies voluntarily agreed to a national security process. That process has yet to begin -- Kitty.

PILGRIM: Christine, we have really toughened up this process, after the Dubai Ports World issue, reported extensively on this broadcast, and that basically was the linchpin for changing some of the legislation and the process of this, right?

ROMANS: That's absolutely right. And this Dubai-Nasdaq deal might potentially be the first deal to undergo what many say is a toughened process, national security review process. We will wait to see until it begins and see how long and how tough it really is.

PILGRIM: It will be a great test case.

Thanks very much, Christine Romans.

PILGRIM: Time now for some of your thoughts. And thousands are telling us how angry you are at Mattel for apologizing to the Chinese government for the scandal over dangerous imported toys.

Marisa in from Pennsylvania wrote to us: "Mattel apologizing to China sounds like the final betrayal of the American people by corporate America. They shipped our jobs overseas. They sold us dangerous products. And now they apologize to China. Sounds like the American people should say goodbye permanently."

And Mike in Michigan wrote to us: "Mattel's actions are just one example that big companies have one interest and nothing else matters. My wife and I go out of our way to buy American products. And I hope the rest of America will do the same."

Andrew in Texas wrote to us: "I just can't believe that Mattel chose China over America. I'm making a choose, too. I choose to boycott Mattel."

We will have more of your e-mails a little bit later in the broadcast.

And also coming up, the Bush administration just won't give up. It's still pushing a free trade agenda, an agenda that is anything but fair to this country.

Also, the first UAW strike at General Motors in three decades. It's a critical battle in the war on the middle class.

And Democratic presidential front-runner Senator Hillary Clinton solidify hers lead over her rivals. And we will tell you how she's doing.

(COMMERCIAL BREAK)

PILGRIM: On strike today, 73,000 employees shutting down General Motors, the nation's largest automaker. UAW union members are looking for something that will be very hard to win from the automaker, job security.

The war on the middle class rages, as working Americans are victimized by the failures of corporate management and shortcomings of government policy.

Bill Tucker has the report.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT: Seventy-three thousand workers off the job and on the picket line. It is the first national strike at an automaker by the United Auto Workers union since 1976. Eighty plants in the United States are halted by the walkout. The union says the picket line is not where it wanted its members to be.

RON GETTELFINGER, PRESIDENT, UAW: (r)MD-BO¯Do we consider this serious? Yes, we do. Did we want to strike? Absolutely not. But there comes a point in time where you have to draw the line. You will only be pushed so far. We were pushed into a strike. TUCKER: General Motors is hardly a bankrupt company. While its north American operations barely break even, globally, the company is profitable.

Industry analysts say there are two vital concessions that GM must get in order to remain viable. First, the union has to agree a shift from pension to 401(k) retirement plans, second, getting the health care cost off of GM's books by funding a health care trust fund to be managed by the union. Talks are for a possible a $51 billion one-time funding from General Motors.

BRADLEY RUBIN, BNP PARIBAS: And I think G.M. and Ford would be more than happy to give some sort of job longevity language in the contracts. But until they get to that point, they can't -- it's difficult for them to promise jobs in the future if they can't make those vehicles profitably.

TUCKER: And there are other concessions which center on work rules, job classifications, all of which would mean an even smaller UAW than the 180,000 membership of today.

(END VIDEO TAPE)

TUCKER: And in all of the talk of concessions, G.M. management has never offered to take pay cuts nor have they admitted their mismanagement is to blame for putting the company in the bind that it is in today -- Kitty.

They'd like to ignore that part of it, and their culpability. And there's plenty enough blame to go around in both cases here.

PILGRIM: Thanks very much.

Bill Tucker.

Thanks, Bill.

Well, in presidential politics, candidates are starting to rake in important endorsements, one frontrunner seemingly building a campaign brick by brick.

Senator Hillary Clinton today receiving the support from 100,000 members of the International Bricklayers' Union and yet another nod from a one time rival.

Candy Crowley reports.

(BEGIN VIDEO TAPE)

CANDY CROWLEY, CNN CORRESPONDENT (voice-over): Many candidates get endorsements and use them as evidence of a campaign that's catching on. Endorsements can bring tangible or symbolic help to a candidate. Sometimes the endorser is looking to make the short list for vice president. And sometimes it is all of the above.

In the endorsement sweepstakes today, Evan Bayh endorsed Hillary Clinton.

SEN. HILLARY RODHAM CLINTON (D), NEW YORK: Well, I think it's a very significant endorsement. And it really underscores my commitment to running a national campaign.

CROWLEY: Evan Bayh is a Democratic Senator, a moderate from Indiana. Operative word -- Indiana, a big old Midwest Republican state.

SEN. EVAN BAYH (D-IN), INTELLIGENCE COMMITTEE: And she will run a campaign and an administration that reaches out to not only Democrats, but also Independents and reasonable Republicans.

CROWLEY: Just standing there may be a help. The message you are supposed to take away from this picture is Hillary Clinton is electable in the heartland.

Same message for a different campaign. Barack Obama picked up the support of a man well known in Iowa political circles. In a phone call set up by Camp Obama, former Iowa Democratic Chairman Gordon Fischer told reporters: "In a competitive state like Iowa, Senator Barak Obama is best positioned to bring along Independents, and even some Republicans."

Elsewhere in endorsement world...

NORMAN SEABROOK, CORRECTION OFFICERS BENEVOLENT ASSOCIATION: The Correction Officers' Benevolent Association is extremely proud to throw our support behind the next president of the United States, Senator Barack Obama.

CROWLEY: In the heart of Manhattan today, Obama got the nod from any New York union correctional officers. Operative word here -- New York, home to Hillary Clinton.

SEN. BARACK OBAMA (D), ILLINOIS: We were going to be in New York and, you know, the least I can do when I'm in a city where people are taking the time to endorse me and are going to be working on my behalf, I want to make sure that they feel some love.

CROWLEY: Message -- we'll compete with her anywhere.

Not long after the news of the Obama union endorsement surfaced, Hillary Clinton said that she was being endorsed by the International Union of Bricklayers and Craft Workers.

Union endorsements are perhaps the most useful of all, since organized labor can provide boots on the ground, people who lick envelopes, man the phones and turn out the vote.

Still, big unions endorsed Richard Gephardt and he didn't make it out of Iowa. And big names are not sure fire. Al Gore endorsed Howard Dean.

(END VIDEO TAPE)

CROWLEY: The message?

Endorsements can send signals and provide manpower, but they cannot ensure victory -- Kitty.

PILGRIM: It seems like the endorsements are strategic scorekeeping, right, Candy?

CROWLEY: Yes, there's -- there's a lot of, you know, I governors. Well, I have four. You know, I have 16 Congressmen. There's a lot of it. There are bragging rights it to, as well.

PILGRIM: And there's a board game in there somewhere.

Thanks very much.

Candy Crowley.

Thanks.

Well, the first non-candidate is keeping a close eye on the national polls. Now, according to a new book, President Bush predicts that Clinton will sweep the Democratic nomination. It sounds almost like warning to the GOP that the senator from New York is the Democrat to beat.

Senior political analyst Bill Schneider joins us now -- and, Bill, it sounds like wishful thinking from the president -- Bill.

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Well, the president, who is now acting as pundit-in-chief, told the author Bill Sammon, who has a book coming out called "The Evangelical President," he said that Hillary Clinton has a national presence and she's becoming -- and this is becoming a national primary.

The person, he says, who has the national presence, the ability to raise money, sustain an effort across a number of states, has got a good chance to be nominated.

He then added, "I think our candidate" -- meaning the Republican candidate -- "can beat her, but it's going to be a tough race."

You know, two things are really accomplished when the president talks like that. One is it gets a lot of Republican juices flowing. The idea of running against Hillary Clinton is one way to rally the Republican Party. But it also gets Democratic juices flowing, because here's the president portraying Hillary Clinton as a very tough competitor, a very formidable figure. And that's got to turn a lot of Democrats on.

PILGRIM: It really seems like the downside risk of making a comment like that.

Bill, Senator Clinton is certainly consolidating her lead when we look at the national polls, though, right?

SCHNEIDER: That's right. She certainly is. You know, the Republicans have a history of their nomination being a right of succession. But now that looks like the Democrats are playing that game. Right now -- we did a poll of polls, of all the polls taken in September. These are national polls that show Clinton with 43 percent, Obama second at 24. That's a 19-point lead over her nearest competitor. Her lead has gradually widened over the last few months -- 15 points in July, 18 points in August. It's now 19 points over Obama, with John Edwards running third. That race is looking more and more like Clinton is moving into a commanding leadership position.

The Republicans are having a free-for-all. That's what the Democrats used to do.

PILGRIM: Yes, let's take a look at that.

SCHNEIDER: Yes.

PILGRIM: Let's take a look.

SCHNEIDER: Let's take a look at the Republicans. There, the leading candidate, Rudy Giuliani, has 30 percent, not nearly as impressive as Hillary Clinton's 43. Fred Thompson has been moving up. He now has 22 percent. That's only an eight point lead. So the Republican race look likes a real free-for-all.

That's the way the Democrats used to behave.

PILGRIM: Are people still excited about Thompson?

SCHNEIDER: With Fred Thompson?

PILGRIM: Yes.

SCHNEIDER: Not like they were a few months ago. When he first hinted in the spring that he might get into the race, there was a lot of excitement out there. You know, he looked like a formidable guy. People were talking about him as the new Ronald Reagan. But then he took so long to get in, he had so many problems with his campaign, that the excitement factor really diminished and people started saying what's taking him so long?

Is it too late for him to get in?

So now that he's in, he's doing pretty well. He vaulted into second place and he's becoming something of a favorite among Southern Republicans. Important key primaries and that's the base of the Republican Party. But he doesn't have a commanding lead.

PILGRIM: Interesting stuff.

Thanks very much.

Bill Schneider.

SCHNEIDER: Sure.

PILGRIM: Well, President Bush plans to push through a number of free trade agreements in the 15 months that he has left in the White House. But he'll have to push them through a Democratically controlled Congress.

And as Lisa Sylvester reports, some Congressional Democrats see those deals as a threat to America's already embattled middle class.

(BEGIN VIDEO TAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): The United States has free trade agreements with 14 countries. Within the next year, the White House hopes to add to that roster four more agreements with Peru, Panama, Columbia and South Korea.

Congress has to sign off on them and President Bush called each one a crucial vote.

GEORGE BUSH, PRESIDENT OF "THE UNITED STATES: We will work hard to get all four trade agreements through. And if they don't get through, it is a sign that the protectionists are beginning to, you know, be on the ascendancy here in Washington, D.C., and that would be a mistake.

SYLVESTER: Business lobbyists and the Commerce Department argue that the trade agreements will mean more business for U.S. companies.

JAMIE ESTRADA, DEPUTY ASSISTANT COMMERCE SECRETARY: By entering into this free trade agreement with Panama, Peru and Columbia, we are now creating an opportunity for U.S. exporters.

SYLVESTER: Democrats now control the gavel on Capitol Hill and some of them oppose free trade deals as bad for the American worker, bad for the environment and bad for the middle class standard of living.

SEN. SHERROD BROWN (D), OHIO: Our trade deficit continues to explode. We continue to lose more jobs. We continue to expose our families, our children, to contaminated food products, to unsafe toys because of this whole method of free trade.

SYLVESTER: The Peru Trade Agreement passed in the Senate Finance Committee Friday by a vote of 18-3, after tougher labor and environmental standards were added. But for one watchdog group, that's not enough.

LORI WALLACH, PUBLIC CITIZEN GLOBAL TRADE WATCH: Labor and environmental standards are fine, but it's like adding a new roof on a condemned building. It's still coming down around us.

SYLVESTER: Opponents say under the Peru trade deal, U.S. labor and safety standards can be disputed and overruled by international tribunals. They also say the deal weakness intellectual property rights, encourages companies to export jobs and makes it harder to pass by American laws.

(END VIDEO TAPE) SYLVESTER: The House Ways and Means Committee is scheduled to vote on the Peru trade deal tomorrow. The agreement then could be sent to the full Congress by mid-October. It's important to point out many freshmen Democrats are speaking out against the trade agreements, some of whom promised on the campaign trail to push for a new direction on trade -- Kitty.

PILGRIM: Lisa, the adding of labor and environmental amendments, that sort of helps to try to push it through. But I think that -- are some members of Congress -- are they getting wise to this tactic?

SYLVESTER: Well, you know, you're absolutely right. What they tried to do -- and this was a very calculated strategy -- is that they would add in some more labor and environmental provisions. But critics say, look, this was a bad trade deal. It was a bad trade deal to begin with. It's essentially putting lipstick on a pig and you still end up with a bad trade deal at the end of the day.

PILGRIM: Thanks very much.

Lisa Sylvester.

Well, this is also the subject of tonight's poll.

And we'd like to ask you -- do you believe the White House attempt to push another free trade agreement through Congress is another example of this administration's decision to place corporate interests above those of American people?

And that's a yes or no vote.

Cast your vote at loudobbs.com.

We'll bring you the results a little bit later in the broadcast.

And coming up, strong support for legislation cracking down on sanctuary cities. The sponsor of that bill, Congresswoman Marsha Blackburn, will be here.

Also, a look inside the Supreme Court.

How is the court's tilt to the right affected by the balance of power in our government?

And we'll speak to Jeffrey Toobin, CNN's senior legal analyst and the author of a new, important book, "The Nine."

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Now, the murder last week of a Phoenix police officer by a once deported illegal alien has again exposed the federal government's inability to keep track of criminal illegal aliens and to keep our borders secure. Congresswoman Marsha Blackburn has introduced legislation that targets violent criminals, illegal aliens. And she joins me now.

Thanks very much for being with us.

REP. MARSHA BLACKBURN (R), TENNESSEE: Good to be with you, Kitty.

Thank you.

PILGRIM: You know, the CLEAR Act, it was introduced by Charlie Norwood in 2007, named after your colleague who introduced it. And it's an attempt to tighten up the existing problems with illegal alien -- criminal illegal aliens.

Let's take a look at some of the provisions, just so our audience is up to speed on that. It provides enforcement assistance to local authorities. It authorizes additional construction for detention space and it also requires DHS to take an alien into custody within 48 hours.

You have 140 co-sponsors. I guess the last time we talked to you, you had about 100.

Are some of the Democrats coming along on this?

BLACKBURN: Yes, Kitty, they are. And you were just mentioning the occurrence in Phoenix. And what we see is that every town is a border town and every state is a border state because of the impact of illegal immigration on our communities. And what we hear from our local law enforcement is that they would like to have the authority to be able to hold people that they know are absconders, are criminal aliens.

And so this legislation requires the National Crime Information Center to list those 400,000 absconders and 85,000 illegal immigrants in the National Crime Information Center database and make that available to our local law enforcement so that that cop on the beat has the information he needs to make that detention and hold that individual.

PILGRIM: Now this legislation also targets sanctuary cities.

How important is it this go through?

BLACKBURN: I think it is vitally important that it go through because what we know is that the sanctuary cities do not need these SCAAP funds, as they called, State Criminal Alien Assistance Program funds if they are not going to enforce immigration law and help to remove those that are illegally in the country and are criminal aliens and absconders. So this will require people to abide by the law of the land, which is to enforce and remove those that are illegally here.

PILGRIM: Last week, the governor of New York, Eliot Spitzer, introduced legis -- a new policy to allow illegal aliens to apply for driver's licenses.

What do you think of that policy? BLACKBURN: Well, unfortunately, my home state of Tennessee had a similar policy. I was in the state senate at the time and led the opposition to repeal that. And recently, they have removed that.

What we know, any of these documents that make it easier for an individual to appear as if they are a citizen do a disservice to the citizens at large. And whether it's a driver's license, whether it is a credit card, it is imperative that we make it much more difficult and that we not allow them those easy items that would appear to be items that you have to work for and gain by being a citizen.

PILGRIM: Well, we wish you luck with your legislation.

BLACKBURN: Thank you so much.

PILGRIM: Thanks very much for being on the program.

Congresswoman Marsha Blackburn.

A reminder now to vote in tonight's poll -- do you believe the White House's attempt to push another free trade agreement through Congress is another example of this administration's decision to place corporate interests above those of the American people -- yes or no?

Cast your vote at loudobbs.com.

We'll bring you the results in just a few minutes.

Also coming up, an extraordinary look inside the most powerful and secretive legal body in the country. Its decisions impact every one of us every day.

But is it altering the balance of power to serve a right-wing agenda?

Stay with us.

(COMMERCIAL BREAK)

PILGRIM: Coming up at the top of the hour, "THE SITUATION ROOM" WITH WOLF BLITZER" -- Wolf.

WOLF BLITZER, HOST, "THE SITUATION ROOM": Thanks very much, Kitty.

Donald Trump fires off. He says America's reputation is in tatters and President Bush should go into a corner and simply hide. You may also be surprised to hear what else Donald Trump says about Democrats and other issues. My one-on-one interview with Donald Trump. That's coming up at the top of the hour.

And pundit-in-chief -- that would be President Bush predicting the Democratic presidential nomination is Hillary Clinton's to lose.

But does he have an ulterior motive?

Our chief national correspondent, John King, standing by with that story.

And showdown -- 73,000 workers walk out.

The target?

General Motors.

The stand-off?

The high cost of wages and benefits.

All that, Kitty, coming up right here in "THE SITUATION ROOM".

PILGRIM: We look forward to it -- Wolf.

Well, their decisions impact every American just about every day of the week. But they make up one of the most mysterious and secretive in the land. And now a rare look at "The Nine" members of the Supreme Court -- their passions, their sometimes clashing personalities and the dynamics that influence their judgment.

It is all in a new book released to stunning reviews. It's called "The Nine: Inside the Security World of the Supreme Court."

And it is the work of our own senior legal analyst, Jeffrey Toobin.

And when I spoke with Jeffrey earlier, I asked him how he was able to get the real story.

(BEGIN VIDEO TAPE)

JEFFREY TOOBIN, AUTHOR, "THE NINE," CNN SENIOR LEGAL ANALYST: The idea is that these nine individuals, in addition to being intelligent and important, are also human. And the idea is that what they're like and what their views are and their personalities determines, in significant part, how they rule.

PILGRIM: You know, the secrecy surrounding the Supreme Court is considerable. Even though they publish their opinions, there is not much else.

How hard was it to get inside the Supreme Court?

TOOBIN: Well, you know, I've been covering the Supreme Court off and on for about 14 years. So I -- I'm not there everyday, but I write about it and I, you know, cover it for CNN. So it's not -- I'm not -- I wasn't totally unfamiliar with the subject. But, also, you know, the court is changing somewhat.

In 1979, when "The Brethren" came out, which was the first real behind-the-scenes look at the court, the court kind of freaked out and closed down and, really, there was no access for a long time.

But in recent years, you've got some justices from a different generation who recognize that in order for people to take the court seriously and their views seriously, they have to know a little something about who those justices are and how to the court works. And I was a beneficiary of that.

PILGRIM: Many Americans were really focused on the Supreme Court at one moment in political history, which of course, you know and document very well, the 2000 Supreme Court decision of "Bush v. Gore."

Let me just pull up a quote from your book. And it says: "These weeks taint an otherwise largely admirable legacy. The justices did almost everything wrong. They embarrassed themselves and the Supreme Court."

What went wrong at that moment?

TOOBIN: You know, "The Nine" is mostly a book of analysis and reporting. "Bush v. Gore" is the only time I really sort of, you know, talk in an opinionated way about a decision, because I do think the court went wrong.

One thing was, you know, everybody remembers it was 36 days. The court was only involved for 21 of those days. Usually, the court takes month to decide cases. And this one, they were working very quickly and there was a lot that they didn't do right.

Usually, when it comes to state court matters, as this was, a Florida matter, they leave it to the states. Usually, they don't get involved in the middle of political controversy. They would have been far better off letting the states resolve this on their own.

My objection to "Bush v. Gore" is not that George Bush won the election. He may have well won the election if the courts had -- if the Supreme Court had stayed out of it.

The problem was the court looked like it was taking sides in a partisan dispute. And it really did taint an otherwise admirable legacy.

PILGRIM: Justice O'Connor -- you spend a good bit of time on Justice O'Connor and her role in the Supreme Court and how the Supreme Court shifted politically with her departure.

Take us through a little bit of that.

TOOBIN: What a larger than life figure Sandra Day O'Connor is. I mean here you have this woman, 1981, an obscure judge, on not even the highest court in Arizona, thrust into this court. And in the course of her 25 years, dominated subjects like abortion, civil rights, state power. I mean just an enormous influence.

And the "Bush v. Gore" had a peculiar legacy for her, because she was, of course, the deciding vote for President Bush. But she got alienated from President Bush over the course of this term about the war on terror, about affirmative action, about the Terri Schiavo case, in particular, something that really bothered her. And she felt that, you know, she -- it was important to her to stay on the court to fight on those issues. But her husband, at the same time, was losing a battle to Alzheimer's, which she wound up deciding to help him fight.

Tragically for her, she wound up losing both her seat on the court and her husband, who slipped beyond her help when she quit.

PILGRIM: The way you document her change of mind is just absolutely masterful and the scholarship is considerable. But I have to say, the lighter touches are very, very entertaining -- Bill Clinton eating a Big Mac and an oncologist taking exception to it. Scalia duck hunting with Dick Cheney.

TOOBIN: I have to say, that is one of the parts I enjoyed reporting the most, because everybody remembers -- some people criticize Justice Scalia for going on this duck hunting trip with Dick Cheney and then ruling in a case involving Cheney. I actually think what Scalia did was fine. But the funniest part of the story is that Scalia -- the duck hunting trip was almost canceled because there was too much rain. Now, I thought ducks liked rain.

But I'm a city boy, what do I know?

(LAUGHTER)

TOOBIN: Apparently there was too much rain even for the ducks and there was terrible duck hunting on that trip.

PILGRIM: We'll get e-mails about the ducks on this one, I'm sure.

TOOBIN: All right.

PILGRIM: Anyway, we'll get e-mails about the book, too, because it is exceptional.

And thank you very much for being here.

Jeffrey Toobin, "The Nine".

TOOBIN: Thanks.

PILGRIM: Still ahead, the results of tonight's poll, more of your e-mail, right after this.

(COMMERCIAL BREAK)

PILGRIM: The results of tonight's poll -- 99 percent of you say the White House's attempt to push another free trade agreement through Congress is another example of this administration's decision to place corporate interests above those of the American people.

Well, time again for your thoughts.

And Kim in Illinois wrote: "Since the New York governor wants to allow illegal immigrants to carry driver's licenses, federal funding should cease immediately. His state obviously doesn't need the federal funds if he's not going to enforce the law."

And Doc in North Carolina wrote: "Is there somewhere written on the walls of Congress we will write and pass laws but fail to enforce them? Congress knows our immigration laws are being broken. Will they ever do their job?"

And thousands of you are wishing Lou a speedy recovery from his tonsillectomy. He's doing well and will be back very soon.

And Mary in Texas wrote: "Take care or your throat, Lou. We need your voice."

And, indeed, we do.

Thanks for sending us your e-mail.

Please join us tomorrow.

Thanks for watching.

Good night from New York.

"THE SITUATION ROOM" starts right now with Wolf Blitzer -- Wolf.

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