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Southern California Prepares for Possible Fires; Fatal Multi- Vehicle Accident in Connecticut; Tainted Frozen Pizzas Recalled; Pres. Bush Addresses Troops; Democratic Response to Pres. Bush's Iraq Speech

Aired November 02, 2007 - 13:00   ET

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

KYRA PHILLIPS, CO-HOST: Hello, everyone. I'm Kyra Phillips live at the CNN world headquarters in Atlanta.
DON LEMON, CO-HOST: And I'm Don Lemon. You are in the CNN NEWSROOM.

Happening right now, it's a very busy Friday, so let's get right to it.

This hour we'll hear from President Bush live in Fort Jackson, South Carolina. He's there to congratulate boot camp grads. And we're expected to hear his latest strategy on the war.

We've got an eye on the markets, as well, at the end of a hectic week. If the Dow takes a dive, we'll keep you informed on that.

And wind whipping back up in California. We've got live coverage where go teams are standing by to resume the firefight.

Plus, dramatic flooding. High water rescues and more storms on the way.

PHILLIPS: And this just coming in, a tanker crash in Connecticut. We're told that I-95 has been completely shut down in both directions. This is what I can tell you so far.

It's in East Lime, Connecticut. Two of the vehicles involved are tractor-trailers. One is a tanker. Not quite sure how exactly the accident happened. Or what the chain of events was.

What we can tell you is the tanker that was involved spilled fuel all over the highway. Local firefighters have responded by spraying the fuel with foam and digging a trench, as you can see, around the area to collect all of that liquid.

Right now state police and firefighters are on the scene. They've set up a command post, and they're trying to figure out how exactly this happened while diffusing this situation. A tanker crash in Connecticut. The area is East Lime. We'll bring you more as we get it.

LEMON: Also another accident, this one we want to take you to Florida. Specifically, Pembroke Pines, Florida. Check this out.

That is a garbage truck. Here's what we know. This is the information we're getting from the Pembroke Pines Police Department.

The female driver of this all-service garbage truck is currently pinned in the truck's cabin, we're told. And efforts to -- are under way to extricate her from the vehicle.

They say she was making a right-hand turn when the truck overturned onto the right side. And garbage trucks have both right and left-handed driving controls, just in case you want to know that. But she is using the right side controls, was using it at the time of the accident.

Again, a female driver of this garbage truck pinned in the truck. You're looking at new video now, this coming from Pembroke Pines, Florida. As soon as we get more information on that and find out her condition, we'll update you right here in the CNN NEWSROOM.

PHILLIPS: President Bush, commander in chief, mixing it up with recruits at an Army boot camp today. He's spending much of the afternoon at Fort Jackson in Columbia, South Carolina.

The president speaks to today's graduating basic trainees, many of whom will very likely, and probably soon, find themselves in Iraq or Afghanistan.

Mr. Bush is expected to update his Iraq strategy 1:45 p.m. Eastern. We'll carry it live, of course, along with a Democratic response from Senator Jim Webb of Virginia. We'll also break everything down with a fact check from our senior Pentagon correspondent, Jamie McIntyre.

LEMON: And Kyra, remember this? A roller-coaster ride yesterday. Wall Street is trying to right the ship today after yesterday's loss of more than 2.5 percent. The Dow appears to be settling down, though. This hour it is up 25 points -- you see it right there. There is the big board.

A solid jobs report from the Labor Department tempered fears of a recession. The lingering mortgage crisis continues to weigh on investors today.

PHILLIPS: Like the unwelcome guest who refuses to leave, the Santa Ana winds are coming back to California. But this time, firefighters hope to be ready. They're trying to prevent another outbreak of deadly wildfires.

Our Kara Finnstrom is with a crew of volunteer firefighters in Sierra Madre right now. She'll bring us up to date on the conditions.

Hi, Kara.

KARA FINNSTROM, CNN CORRESPONDENT: Good morning.

Well, we are coming to you from Sierra Madre. That's about 20 miles northeast of downtown L.A. What you see behind me are the San Gabriel Mountains. And you can see those did not burn during these recent firestorms that actually charred more than half a million acres in Southern California.

And because they didn't burn, they are of prime concern right now to firefighters. Lots of dry brush up there. We're also in a community that's right up next to the mountain, which means there's some canyons here where these Santa Ana winds get funneled through and can really fuel any fires that do start.

This community well aware of it, so we are actually in front of the Sierra Madre Fire Safe Council. This is a group which is coming together in full force this morning to help out in these firefighters.

What they do is they actually patrol these areas. This is a very woody area, a lot of trees. They'll patrol these neighborhoods. They'll also patrol the high fire danger areas, to make sure no fires are popping up and to make sure that people stay out of them.

Now this right here is what we're told is one of their biggest tools, this Red Flag Fire Patrol placard that actually goes on the side of these cars. And the fire marshal is joining us right now, Richard Snyder.

Tell us about why this visibility is so important.

RICHARD SNYDER, FIRE MARSHALL: Well, you know, these signs tell the community and it reminds them on a daily basis that we are in a fire hazard area. And anyone who sees these signs, if they're thinking about starting a fire in our city, they'll think twice because we are vigilant. We're out there. We're visible. They're not going to light them here.

And it reminds the homeowners to take care of -- be prepared to evacuate if you have to. And it's an extra set of eyes. It helps the city and the fire department.

FINNSTROM: All right. And tell us about some of the precautions. You told me you guys are really standing ready today.

SNYDER: Yes. Throughout L.A. County, the staffing is up. They've manned more equipment. They've moved equipment into critical areas. The governor has stepped forward and has committed resources to Southern California, all over California, to assist should fires break out again.

In Sierra Madre we have extra personnel that are on duty. We're making sure that all of our equipment is ready to go.

FINNSTROM: OK. And the concern, again, is for later on this afternoon. Right now conditions very calm, but the Santa Ana winds expected to pick up to about 45 miles per hour later on this afternoon.

Reporting live in Sierra Madre, Kara Finnstrom. Now back to you.

PHILLIPS: All right, Kara, thanks so much -- Don.

LEMON: And we've seen how Santa Ana winds can turn small fires into raging infernos. Our Chad Myers is in the CNN severe weather center with a look at the fire threat facing Southern California this weekend.

Hey, Chad.

CHAD MYERS, CNN METEOROLOGIST: If the fire threat, last Santa Ana event, Don, was a 10, let's just say, because that was a pretty amazing event, this threat is more like a 3 or a 4. Literally, 30 or 40 percent of the wind that we had last time.

Now, why are people reacting like they are? Well, I think it's kind of a cover your you-know-what, because if a fire does break out and they're not prepared, everybody is going to say, "Well, didn't you hear the news? They said it was coming." It's coming, but not 120 miles per hour, not 101-mile-per-hour gusts that they had at Point Mugu. It's just not in the cards.

But a 30-mile-per-hour gust or even a wind sustained at that point in time, that catches a hot spot, that is still hot -- because there are still smoldering ashes through here -- could pick up the flames.

Now, the good news is, with the 30 mile-per-hour wind or at least 25 or 30, they will be able to immediately fly those helicopters and those planes into the fire, whereas the last storm -- we all knew about this -- where they had 60, 70-, 80-mile-per-hour gusts, there was no way to get those tankers in the air.

Here are the gusts now: 11, 12, 4, 7 downtown. So, not there yet. Tonight it will pick up. And by Sunday it will be over.

Remember, the last one we had was a long-term event; a long time those winds just blew and blew and blew.

Now talking about something that is blowing: Noel. Noel is now running up the East Coast. It's going to make a run at the North Carolina shore. Not going to hit there but certainly beach erosion for sure.

And then it's going to be very, very close to Cape Cod. Still expecting a miss from Cape Cod, but then a very direct hit into Nova Scotia, maybe Newfoundland, depending on where it goes, depending on how it goes.

But the wind here is still 85 miles per hour when it goes over these fishing grounds known as Georgia's Bank. Remember that "Perfect Storm" movie and book and all that? Well, this is pretty close to that kind of wind speed, and those boats are in trouble.

We have been in contact, actually, with the Cape Cod Coast Guard, and they are out there flying around, getting all those vessels out of the way, if they can -- Don.

LEMON: Chad Myers, thank you, sir.

MYERS: Sure. PHILLIPS: Hundreds of thousands of people in the Mexican state of Tabasco are trying to escape the worst flooding in decades. Reports from the region at the very base of the Gulf of Mexico say floods have stranded some 300,000, including many stuck on rooftops.

Homes have been lost, crops largely destroyed and drinking water supplies have been exhausted. So far only a single death is reported, but officials are warning of disease, and more rain is on the way.

LEMON: Back now to some developing news we told you about right at the top of the hour. It involved a garbage truck in Pembroke Pines, Florida. Take a look now. That's a video of it.

We are told that the female driver of this truck was stuck, trapped in the truck's cabin, pinned. Well, we're told now that she has been extricated. She has been freed from that.

Here was the concern. The concern was that they might possibly have to amputate her leg in order to get her out. We're told by our affiliate that that did not happen. They got her out.

You see her there on the stretcher, obviously carrying her to the hospital. Not exactly sure of her condition.

But again, she was driving on the right side of the truck. In garbage trucks, the kind of trucks you have in Florida, you can drive on either side. She was driving on the right side. The truck flipped over on the right side. She got pinned. She has been freed. They did not have to amputate her leg to get her out. Details to come in the CNN NEWSROOM.

PHILLIPS: Well, if you won't listen to words, maybe you'll listen to silence. That's the message behind today's National Blackout. Radio host Warren Ballantine is calling on African- Americans not to spend a dime today to protest racism and injustice.

Ballantine says he came up with the buying freeze idea after several race-related incidents, including Jena, Louisiana, where six black teens were charged as adults with attempted murder, and the recent outbreak of nooses across country, and the teen sex conviction of Genarlow Wilson in Georgia. Wilson got out of prison, as you know, just last week.

Now we know who called the Dog out. We're talking about Duane Chapman, TV's Dog the Bounty Hunter, and his racist telephone tirade.

Chapman's lawyer says that the bounty hunter's son, to whom he was ranting, recorded the call and sold it to the "National Enquirer" for a lot of money. Looks like the family has issues there.

The Dog dropped several "N" words in a heated conversation about his son's black girlfriend.

(BEGIN VIDEO CLIP)

DUANE "DOG" CHAPMAN, BOUNTY HUNTER: It's not because she's black. It's because we use the word (EXPLETIVE DELETED) sometimes here. I'm not going to take a chance ever in life of losing everything I've worked for for 30 years because some (EXPLETIVE DELETED) (EXPLETIVE DELETED) heard us say (EXPLETIVE DELETED) and turned us in to the 'Enquirer' magazine. Our career is over. I'm not taking that chance at all.

(END VIDEO CLIP)

PHILLIPS: A&E has stopped the series in its tracks but hasn't canceled it while all this get sorted out.

The Dog has apologized and promised to make things right.

LEMON: How about "Deal or No Deal" seven nights a week or turning "Dancing with the Stars" into a dancing marathon with the stars? Well, maybe not. But TV producers may be forced into desperate measures if writers go on strike.

Writers Guild leaders are meeting today, and they're expected to announce a strike, possibly starting Sunday or even Monday. That could force Hollywood to rely even more on unscripted programming.

You can barely make out the Hollywood sign there, right. Live. There it is, Hollywood Hills. Writers want a bigger share of the profits from DVDs and online distribution.

(BEGIN VIDEO CLIP)

DAVE SCHIFF, TV WRITER: It's not just for us who are currently working, but you know, writers -- writers down the line, that we make sure that you know, we get a piece of -- piece of the pie.

DAVID LETTERMAN, HOST, CBS'S "THE LATE SHOW WITH DAVID LETTERMAN": It could mean that all of your favorite television shows will go away, and they may not come back. And so, what I'm trying to say is, this could be your last look at me and Paul.

(END VIDEO CLIP)

LEMON: That was David Letterman, of course. Late night talk shows, which rely on scripted comedy segments, could be the first to suffer if there is a strike. Movies, which take months to produce, would be the last.

We'll keep you posted. You can also get the latest at CNN.com/Showbiz.

PHILLIPS: We have 5 million reasons to check your freezer. Another recall to tell you about. The offending pizza and the problematic topping coming up.

LEMON: The noose, a dreaded symbol of hate in America and popping up seemingly everywhere. We'll hear what young black men have to say about it.

PHILLIPS: And President Bush updating his Iraq strategy. Is another course change on the horizon? We'll bring you his speech, live.

You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

LEMON: All right. There's the president, live pictures. He's speaking at Fort Jackson. You see him right there. He's visiting the base, there to deliver some remarks about basic combat training at their graduation ceremony. We're going to bring that to you live just as soon as it happens. You're not going to miss it any of it.

But again, the president speaking there. You see live pictures, As soon as -- as soon as he speaks and the ceremony gets under way, as the president is concerned, we'll bring it to you right here in the CNN NEWSROOM.

PHILLIPS: T.J. Holmes working details on a developing story for us today in the NEWSROOM.

T.J., what do you have?

T.J. HOLMES, CNN ANCHOR: Yes, and that is the bit of business happening in Connecticut right now. An accident with fatalities.

And that is the mess you're seeing, the aftermath of it here. This picture coming to us from our affiliate. But not sure how many people were killed, but police there confirm that there have been fatalities in this accident. Four vehicles involved, tractor -- a couple of tractor-trailers and a tanker that has spilled fuel all over this highway.

Again, I-95 shut down in both directions at this point. You can see here in the picture that that white, that foam is what firefighters have put all over this fuel. And what they're going to have to do now, they've -- they dug a trench to try to collect some of this stuff, but hazardous material teams are going to be called out and going to have to deal with this mess.

But you can see the mangled wreckage and the mess. Not exactly sure how this accident happened, but authorities there believe that possibly one of the tankers jackknifed, one of the tractor-trailers jackknifed and just caused a series of events.

Again, don't know how many fatalities, but they have confirmed that there have been fatalities. Other people have been taken to the hospital, as well, involved in this accident.

Also this is going to be a mess. This happened a few hours ago now, just before 11 Eastern Time. But they do expect this to cause a problem for the rush hour, for the drive home. This is going to be shut down both directions, I-95, for several hours. Expect at a minimum, they were guessing, at least seven to eight hours.

So just a mess to get taken care of. You can see there, so many emergency vehicles and whatnot had to be called on this accident, as well. But that -- that's a good perspective there, this shot we're now seeing. Just over top, you can see the mangled mess there.

So we'll try to get more information about fatalities in this accident, also the clean-up efforts. And as we get that stuff, Kyra, of course, we'll pass that along to you.

PHILLIPS: Great. Thanks, T.J.

HOLMES: All right.

LEMON: It is 18 past the hour. Three of the stories we're working on for you, right here in the CNN NEWSROOM.

We told you about this one just moments ago. President Bush is back in the bully pulpit today. He is set to address basic training graduates at Fort Jackson in Columbia about his Iraq war strategy. You're looking at live pictures right there. We'll bring that event to you live in about a half hour from now.

Investigators are searching a retention pond near a police officer's home in suburban Chicago. The officer's wife disappeared Sunday, and even though the officer says his wife ran away with another man, there are suspicions of foul play.

Firefighters have extinguished this blaze today at a Domino's sugar plant on Baltimore's waterfront. The fire began with an explosion about three hours ago. No serious injuries to report here. The cause is, of course, under investigation.

PHILLIPS: Well, we're keeping a close eye on Wall Street after the Dow plunged nearly 400 points yesterday, but today investors got news that the job market is thriving, despite the housing recession.

Susan Lisovicz on the floor of the New York Stock Exchange with the latest employment report and a look at how it's affecting stocks.

Hi, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Kyra.

Well, the labor market may be thriving after that October jobs report, but the bulls are not. If you look at what the Dow's doing, this is hardly the reaction you want to see after the fourth worst point loss of the year for the Dow Industrials and a surprisingly strong jobs report. And it was one of the highlights of the week.

The U.S. economy created 166,000 jobs last month. That was double what economists were expecting. The unemployment rate, meanwhile, held steady at 4.7 percent. That is historically low.

But what's happening in the market today really underscores the confusion and concerns that are out there.

And we got more stuff, bad stuff, from financials. A damaging story in "The Wall Street Journal" today saying that Merrill Lynch, which sacked its CEO earlier this week, may have tried to manipulate when losses from hedge funds exposed to those risky sub prime mortgages, when those would be exposed, when those would be recorded.

We have a report from Deutsche Bank saying that, in this quarter, banks are going to record another $10 billion in losses because of those risky securities.

And finally we have one of the high-up economists at -- at Morgan Stanley saying that this sub prime stuff, that it's really the early signs of a recession.

So you have dueling forces. The Dow is down as much as 120 points earlier today; up 65. It's bouncing around. It's volatile, Kyra.

PHILLIPS: Well, on one hand we've got the housing recession. Right? But on the other a strong labor market. It's difficult to make sense of all this.

LISOVICZ: It is perfectly normal to be confused or to -- or to see all of this confliction.

You know, just earlier this week the broadest measure of the economy, Kyra, the GDP, came in at 3.9 percent, stronger than expected. What's working against it, though, the financials, concerns that we're going to have a lot more carnage coming from that very important sector, consumer spending.

When you see Wal-Mart cutting prices on 15,000 items ahead of Christmas, you know that retailers are worried. We have oil trading today close to $65 a barrel. Gold, which is considered a safe haven when investors are concerned, up over $800 an ounce. The dollar is weak, which makes all of those exports coming into the U.S. more expensive.

So you have a lot of things that are fighting against each other. And I think that's why Ben Bernanke and the Federal Reserve said two days ago, "We may not cut rates at the next meeting because you have inflation and you have slowing growth, and they're both -- they're both equally important right now" -- Kyra.

PHILLIPS: All right. Well, we'll follow both equally important issues with you throughout the day. We'll check back in with you on the floor.

LISOVICZ: I'll be here.

PHILLIPS: Thanks, Susan.

LISOVICZ: You're welcome.

LEMON: Got a frozen pizza in your freezer? Well, we've got a medical warning you can't afford to miss.

(COMMERCIAL BREAK)

PHILLIPS: The president of the United States, live at Fort Jackson in Columbia, South Carolina. He's getting ready to speak to the graduating basic trainees there on base, many of whom will very likely, and probably very soon, find themselves in Iraq or Afghanistan. As soon as the president steps up to the mike, we'll take it live.

LEMON: You know what? That frozen pizza you bought, well, might -- and I repeat that -- might be tainted with E. coli. Five million Totino's and Jeno's pizzas are being recalled, and CNN medical correspondent Elizabeth Cohen has news that you need to know.

Another one. Another two.

ELIZABETH COHEN, CNN CORRESPONDENT: Another one. Doesn't it feel like this keeps happening?

LEMON: It does.

COHEN: It's just amazing. Who would have thought pizzas? But pizzas, of course, have pepperoni on them.

LEMON: OK.

COHEN: And that can sometimes be bad news.

What's happened here is actually a little more dramatic than what's happened in other cases of E. coli poisoning. Nine people have had kidney failure, they say, from the pizzas that you see right here. And 12 others have become ill. This is across ten different states.

So, if you want to go to your freezer and get rid of these pizzas, how do you know which ones to get rid of? Look for these brands: Totino's and Jeno's. And you want to go to CNN.com/health. And we have -- the list is too long to give here, but we have this long list of dates and numbers and things you want to look for, for these two brands.

Now, one of the big questions that certainly has been on our mind is how do you get E. coli from pizza, because you're supposed to cook it and cooking kills E. coli O157-H7, which is this bad bug.

You know what it is?

LEMON: Yes.

COHEN: Apparently, people were cooking them in the microwave. Microwaves do not cook evenly so you might have one hot part of pizza...

LEMON: OK.

COHEN: ... and then one part of the pizza is not thoroughly cooked, and the E. coli are there, alive and well and having a party.

LEMON: All right, Elizabeth. Thank you. We've got to get to some breaking news.

COHEN: OK. LEMON: Thanks.

PHILLIPS: Straight to the president now in Fort Jackson in Columbia, South Carolina, starting his speech to the graduating basic trainees.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... grenade throwing, fire guard duty. You even made it through Victory Forge. Now you have another tough assignment. You've got to make it through my speech.

You are part of a storied military tradition. Over the last century, Fort Jackson has prepared countless young Americans to defend our country. Soldiers marched from these fields to battle fascists and dictators and terrorists. Those soldiers brought freedom to millions of people they never knew. And because of their efforts America is stronger, America is safer and America is free.

Once again our nation calls on brave Americans to confront our enemies, and bring peace and security to millions. And you're answering that call. I thank you for your courage. I thank you for making the noble decision to put on the uniform and to defend the United States of America in a time of war.

Many of you will deploy to Iraq. You'll help carry out a new strategy that, over the past few months, has taken the initiative from the enemy and driven them from key strongholds. Today, I want to share with you and the American people some of the progress we're making in Iraq, what we can expect in the months ahead.

The fight for Iraq is critical to the security of the American people. And with the skill and valor of the soldiers standing before me, standing beside me and standing behind me, it is a fight that we will win.

I thank Lieutenant Colonel Cotton for his introduction and thank him for his service. I'm proud to be with the governor of the great state of South Carolina, Governor Mark Sanford.

With us today are members of the Congress, the United States senator, and two members of the House of Representatives, who strongly support those who wear the uniform and their families, Senator Lindsey Graham, Congressman Joe Wilson And Congressman Bob English.

I thank General Schwitters for his hospitality and leadership. I thank Command Sergeant Major Brian Carlson for his leadership. I thank all of those who wear the uniform. It's incredible to be the commander in chief of a nation that has produced such bravery and such decency and such compassion. We have the greatest military on the face of the earth and we intend to keep it that way.

It's a great day of celebration. And I thank you for letting me come to celebrate with you. I know the moms and dads and family members are so proud of those who will be parading in front of us in a minute. But it's also a time of war for our country. I wish I did not have to report that. But it's the truth. The way it is in this world of which we live. It's a moment when the soldiers prepare to assume responsibility for the security of our country and the safety of the free world.

Today we face an enemy that is willing to kill the innocent to achieve their political objectives. An enemy that showed us the horrors they intend for us on September the 11th, 2001, when they terrorists murdered nearly 3,000 innocent souls in our own country. You know, it's a day I'll never forget. It's a day our country should never forget.

Some lessons that we must understand. First, conditions overseas matters to the security of the United States. When people live in hopeless societies, it's the only way that these evil perpetrators of violence can recruit. What matters overseas matters to the homeland. One of the lessons of September 11th is we can't hope for the best, we must stay on the offense. We must keep the pressure on the enemy. We must use all power of the United States to protect the American people from further harm and that's what we're doing here today. And as we keep pressure on the enemy, we must always remember that the ultimate path to peace will come from the spread of freedom and liberty. That freedom is the great alternative to the ideology of the murderers and the radicals. That we're helping to help others become free. That our noble military is laying the foundation for peace for generations to come. And it's Iraq that is the central front in this struggle. And that country, a democratic ally is fighting for its survival.

Our enemies have sought to build safe havens there from which to plot further attacks against our people. And those who will be parading in front of us soon will be called upon to stop them. By taking the fight to the enemy in Iraq, we will defeat terrorists there so we do not have to face them in the United States.

America's new strategy to win that fight including a surge in U.N. Forces -- U.S. Forces, has been fully operational for four months. I want to assure the loved ones here of something. And I want to assure those who wear the uniform of something. I will make decisions about our troop presence in Iraq and Afghanistan based upon the considered judgment of those who wear the uniform, not based upon the Gallup Poll or political party considerations. So, I accepted the recommendations of General David Petraeus. I want to report to you on some of the results. Our new strategy emphasized securing the Iraqi population as the foundation for all of the progress in that country.

Here's what I can report. First, the challenges, parts of Iraq continue to be violent and difficult. The terrorists are still capable of murdering the innocent that will get on our TV screens. The enemy remains determined. But what they have learned about the United States of America is we are more determined. We're more determined to protect ourselves and to help people realize the blessings of freedom. With our help, the Iraqi people are going on the offense against the enemy. Confronting the terrorists and taking their country back. It's part of our strategy we sent forces into neighborhoods where Iraqis live to route out the extremists, to gain the confidence of the people, together with Iraqi forces we have captured or killed an average of more than 1,500 enemy fighters per month since January of this year.

Since the surge of operations began in June, the number of IED attacks per week has declined by half. U.S. military deaths have fallen to the lowest level in 19 months. Iraqi forces have now assumed responsibility for securing and aid of Iraq's 18 provinces. Across this country brave Iraqis are increasingly taking more responsibility for their own security and safety, seeing some of the most dramatic changes in Anbar Province.

One year ago, many of the experts said Anbar had been lost to the enemy. As a matter of fact at that time al Qaeda staged a parade in the streets to flaunt its power and control. Last week there was another parade in Anbar. This time it was a parade of Iraqi citizens and Iraqi forces who had reclaimed their homes and driven the terrorists out of their cities. And these changes were made possible by the bravery and determination of our Iraqi partners and the incredible bravery of the men and women of the United States military. Our enemy sees the changes and they increasingly fear they are on the wrong side of events. Osama Bin Laden, who has to hide in caves because the United States is on his tail, understands, has said publicly, that al Qaeda's recent seat backs mistakes, the result of mistakes that al Qaeda had made.

In other words, he recognizes the inevitable, that the united states of America and those who long for peace in Iraq, the Iraqi citizens, will not tolerate thugs and killers in their midst. The Iraqis are becoming more capable, our military commander tells me that these gains are making possible what I call return on success. That means we're slowly bringing some of our troops home. And now we're doing it from a position of strength. Our new strategy recognizes that once Iraqis feel safe in their homes and neighborhoods they can begin to create jobs and opportunities and that is starting to happen. There are challenges, corruption is a problem, unemployment remains high and the improvements we're seeing in the Iraqi economy are not uniform across the country.

Overall, the Iraqi economy is growing at a strong rate. We're seeing improvements in important economic indicators, inflation has been cut in half, electricity production in December reached the highest level since the war gun began and higher than it was under Saddam Hussein. Behind these numbers are stories of real people, some of whom our troops may meet, and some real cities where you may patrol. In Baqubah, the market has been reopened in the city that had been 18 virtual lockdown a few months ago. In Fallujah workers turned an artillery shop into a machine shop employing 600 people. In the neighborhood of Amaria, an al Qaeda stronghold until a few months ago locals returned and are reopening shops.

Here's what progress means to one shopkeeper in the former al Qaeda stronghold. He's a local butcher. He says that as recently as June he was selling only one or two sheep per week. Now the terrorists cleaned out and residents returning home he's selling one or two sheep per day. Slowly but surely the people of Iraq are reclaiming a normal society. You see, when Iraqis don't have to fear the terrorists, they have a chance to build better lives for themselves. You must understand an Iraqi mom wants her child to grow up in peace just like an American mom does. Our new strategy is based on the idea that improvements in security will help the Iraqis achieve national reconciliation.

There are some challenges. Reconciliation at the national level hadn't been what we hoped it would have been by now. The central government has passed the budget, reached out to its neighbors and begun to share oil revenues with the province, the Iraqi parliament lags in passing key legislation. Political factions are still failing to make necessary compromises. And that's disappointing and of course I made my disappointments clear to the Iraqi leadership.

Reconciliation is taking place at the local level. Many Iraqis are seeing growing cooperation between Shia and Sunnis. These folks are tired of al Qaeda. And they are tired of Iranian-backed extremists, they are weary of fighting and they are determined to give their families a better life. In Baghdad, Sunni and Shia leaders in one of the most divided neighborhoods recently signed an agreement to halt sectarian violence and end attack on coalition forces. In Anbar, Sunni sheikhs hosted Shia sheikhs to discuss security and express their unity. And I can assure you, ask any of the soldiers who is have been in Iraq, one year ago such an event was unthinkable. In Diyala Province, groups come together to foster reconciliation.

Let me tell you a story of interest to me. Extremists had kidnapped of group. One of them was shot dead. According to a tribal when the extremist offered to restless Shia sheikhs but not the Sunnis. And the Shias refused. Unless their Sunni brothers were released as well. The next day most of the hostages were rescued, and the captors are in custody.

The point I make is that given time and space, the normal Iraqi will take the necessary steps to fight for a free society. After all, 12 million people voted for freedom. 12 million people endorsed a democratic constitution. It's in our interest we help them succeeds. It's in our interest we help freedom prevail. It's in our interest that we deny safe haven to killers. It's in our interest to show the world that we've got the courage and the determination necessary to spread the foundation for peace and that is what we're here to honor today.

We're making progress and many have contributed to the successes. And foremost among them are the men and women of the United States Army. Once again, American soldiers have shown the world why our military is the finest fighting force on earth. Now that legacy falls to the proud graduates today.

Earlier generations of soldiers from Ft. Jackson made their way to Europe and liberated a continent from tyranny. Today a new generation is following in their noble tradition, and one day people will speak of your achievements in Baqubah and Baghdad the way we now speak of Normandy and the bulge.

The bulge was named for a great American president. He served this country in two major conflicts including the American Revolution at the age of 13. Andrew Jackson was renowned for his courage, and that courage lives on at the base that bears his name.

Troops from Ft. Jackson served with honor and distinction in today's war on terror. Some have not lived to make the journey home. And today we honor their sacrifices. We pray for their families. We remember what they fought for, and we pledge to finish the job.

You are the ones who will carry on their work. Americans are counting on you. And their confidence is well placed. You trained hard. You prepared for battle. And when you take up your missions, you will give a new meaning to the slogan chanted by thousands of soldiers on this base in many wars and in many era, "Victory starts here."

May God bless you all. May God bless the United States of America.

KYRA PHILLIPS, CNN ANCHOR: The president of the United States speaking live at Ft. Jackson in Columbia, South Carolina. He's speaking to the graduating basic trainees. Many of whom will be headed off to Iraq and Afghanistan. Laying out a number of what he says are tremendous successes in the war in Iraq. 1,500 enemy fighters taken out per month, IED attacks down by half. Iraqi forces overseeing now 18 provinces. Our Jamie McIntyre at the Pentagon fact checking that information as we speak.

JAMIE MCINTYRE, CNN PENTAGON CORRESPONDENT: Well Kyra, the president stopped short of declaring victory but he did cite some very positive trends in Iraq. And these trends are pretty much indisputable. The numbers aren't lying, the fact that the number of attacks is down dramatically, the number of U.S. casualties and the number of those armor piercing projectiles known as EFPs also down dramatically. Still the numbers are very high.

The question here is nobody thought, very few people disputed the idea that a temporary increase in U.S. troops, the so-called surge, would produce some temporary good results. The question is, are they more long term positive results? The president is trying to cite something that is much harder to measure which is the mood of the country, the shift in the attitudes of Iraqis both in the government, in the security forces, and the local Iraqis.

To that end, he cited the recent raid that Iraqi security forces were able to mount to rescue some Sunni and Shia sheikhs who had been kidnapped, as evidence that the tide really is turning in Iraq. It's hard to, though, to fact check whether things are getting better or not. One measure I used since I talked to some of the commander who is are about to go over to Iraq and where did they get their information, from the commanders coming back. That sort of informal exchange reveals there really is a feeling of increased optimism that we haven't seen in the past really seven, eight months

PHILLIPS: Jamie, I apologize. I thought we were talking to you later because you were fact checking these numbers. I didn't realize we would have you so quickly. Let me ask you then to clarify, when the president lays out these numbers, for example, 1,500 enemy fighters taken out per month, IED attacks down per week by half. Iraqi forces are securing 18 of the provinces there in Iraq. Are we able to fact check those exact numbers when he throws out stats like that?

MCINTYRE: Some are pretty easy to measure. U.S. casualties, we know those precisely. The number of attacks, let's say it goes from 60 to 30 which I think is a rough range, still that's a significant number. It only looks better in relation to the really bad numbers we've seen in the last four months. The trends are positive. The question is, if the result is going to be the same at the end of the surge, which is that you had a temporary decrease but goes back to the way it was, when the surge strategy will have failed. It succeeded in the short-term in making a lot of these things that you measure look better. The question is, is that going to last and you see a lot of caution in -- on the part of U.S. commanders such as the general yesterday saying that while this was very positive momentum, his caveat, it is not irreversible.

PHILLIPS: Chief Pentagon correspondent Jamie McIntyre, appreciate it. Coming up after the break, the democratic response. Senator Webb joining us live from the hill. We'll see what he has to say about the president's speech.

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PHILLIPS: You heard the president of the United States live in Columbia, South Carolina laying out a number of what he says are tremendous success rates in the war in Iraq. Let's bring in someone from the other side of the aisle, Senator Jim Webb, democrat from Virginia. Senator Webb, why don't we start with your first reaction to the president's speech. Anything stand out to you?

SEN. JIM WEBB (D), VIRGINIA: Well, there wasn't really that much that was new in it. First of all, let me say I think he is right as we all are to thank the troops for what they're doing. I don't think there is anybody on our side that wouldn't do that. I come from a family with a long military tradition, my father is a veteran, I served in Vietnam, my son is serving marine now. So, you know, sometimes this issue is being couched as whether you're political viewpoint supports the troops or not but we have a military that is directly reflective of all of the political views in our society. I think sometimes that needs to be said.

PHILLIPS: All right. With the background we take to heart your background, I want to talk to you about that in addition to the fact that your son served overseas as well. We saw the pictures during your campaign, you held up his boots, you wore his boots while you were out campaigning. You put a personal touch on that. And I guess maybe before we get into the discussion, I'll ask you straight up. Are you anti-war in Iraq?

WEBB: I've been doing this my entire adult life, you know, I served in the military. The first book I wrote when I was 28 was about military strategy. I warned early on about the strategic danger of going into Iraq when we were supposed to be focusing on the war against international terrorism, so on the one hand yes, I believe this was an enormous strategic blunder and we have a responsibility to remove ourselves from an occupying position in that region. At the same time, our troops, tactically are always going to do their job, they are doing their job right now.

The problem with the president and his administration is there are three different components that have to be addressed in terms of truly solving the situation in Iraq. One of them is the military component which they keep coming back to over and over. The second is the notion of political what they call reconciliation inside Iraq. And the third is regional stability which is the scenic way of solving the problem and they have done little in that regard.

If you take a look at this region right now from Lebanon all the way to Pakistan, we're in an enormous amount of instability right now. You see that the Turkish parliament has given the go ahead for the military to invade the northern part of Iraq where the Kurdish guerrilla fighters are coming out of. We talk about Iran. We do have a bad situation with Iran and people like myself were warning about that, that it would be a consequence if we invaded Iraq. We -- the president keeps talking about terrorists. There weren't terrorists, al Qaeda terrorists actually operating in Iraq before our invasion. In fact, al Qaeda would have liked to have seen Saddam Hussein taken out anyway because he was running a secular government. And we talk about the other parts of the insurgency and if you look at the numbers, the numbers show a plurality of the insurgents have been Saudi and not Iranian or al Qaeda per se.

So, we have an enormously complicated situation. You see what happened in Pakistan when the former president tried to make a caravan on her return there a while ago. And we have now increasing difficulty in Afghanistan. So we have a full plate strategically and are diverted with our force structure in one spot.

PHILLIPS: You've given an overview of how you feel about the beginning of this war and what went wrong and the impact of Iran with insurgents and the fact there are more insurgents in Iraq than before the war. OK. We talked about all that up to this point.

WEBB: There was no al Qaeda activity in Iraq before the war to speak of. When you talk about the al Qaeda operational environment in Iraq the first thing to remember is the Iraqis don't like al Qaeda either. That's actually what happened in al Anbar.

PHILLIPS: Al Anbar and also in Diyala Province, you're seeing both sides coming together and fighting, I mean there were groups killing U.S. troops now working together to try to fight al Qaeda. Is that a success to brag about right now? Is that part of this new Iraq strategy? Does the president have the right to say look, what we're doing now this troop surge helped in Diyala and it's going to continue to work throughout Iraq?

WEBB: To start off with, we do have a success story in terms of the tactical environment that our military people have operated under. And I'm not in any way wanting to take away from that. The tactical successes, the rifle companies, the platoons going out and doing their jobs, they are doing their jobs. The question is the strategic overview. First of all, with respect to the situation in Anbar, the turnaround in Anbar began well before the surge. My son's battalion, the first battalion of marines, was out there last fall knocking down that place, block by block, and getting cooperation because as I said, the Iraqis don't like al Qaeda. So, this is not the fact that the Iraqis have come to our side specifically. It's that they have decided that al Qaeda is a greater threat and a greater disturbance than our occupation. That doesn't mean they want us to be there long term.

Now, the only way that we're going to get a solution where we can actually get our troops out of Iraq, and that's the question that people should be asking the administration, do they want our troops all the way out of Iraq, is for a regional solution which is the same thing that was proposed more than a year ago by the Baker Hamilton Commission, where they were advocating robust diplomacy as of a year ago right now.

PHILLIPS: Democratic Senator Jim Webb, this will be something we'll talk about a lot especially as we move into the election year. Appreciate your response to the president's speech. That was my reaction rather than response.

WEBB: There's a difference between reaction and response.

PHILLIPS: I didn't have time to respond but that's my initial reaction. Thank you.

WEBB: Appreciate it very much. Thank you, senator.

DON LEMON, CNN ANCHOR: Can a one-day boycott get Washington's attention? Big names to help spread the word. The quest also the critics straight ahead in the NEWSROOM.

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