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Lou Dobbs Tonight
Clinton and McCain Intensify Attacks on Obama; Impact of Illegal Immigration on Wages; Controversy in Texas over NAFTA Superhighway
Aired February 20, 2008 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Thank you, Wolf.
Tonight, Senator Clinton launches a counter offensive against Senator Obama after her defeat in both Wisconsin and Hawaii. Senator Clinton making an all-out effort now to stop Senator Obama as he wins another key endorsement. We'll have all of that, the latest on the Republican race as well, all the day's news and much more straight ahead here tonight.
ANNOUNCER: This is LOU DOBBS TONIGHT: news, debate, and opinion for Wednesday, February 20th. Live from New York, Lou Dobbs.
DOBBS: Good evening, everybody. Senator Clinton today sharply intensified her attacks against Senator Obama. Clinton saying it is time to, "get real," as she put it, about the election and the issues facing this nation.
Republican front runner Senator McCain today also blasted Obama. McCain accusing Obama of lacking experience and judgment on critically important national security issues.
We have extensive coverage from the campaign trail tonight and we begin with Candy Crowley in Austin, Texas -- Candy.
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Hi, Lou. A great night and a good day for Barack Obama and you know what that means for Hillary Clinton.
(BEGIN VIDEOTAPE)
CROWLEY (voice-over): You know it was a bad night when you have to say this the next day.
SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: And this campaign goes on and this campaign moves forward.
CROWLEY: She is limping.
(APPLAUSE)
CROWLEY: He blew her out again last night in Wisconsin and Hawaii and stomped on her in the headlines today.
JAMES HOFFA, TEAMSTERS GENERAL PRESIDENT: We came to the conclusion that Barack Obama gives us the best opportunity to rebuild America and to win in November.
CROWLEY: A timely endorsement from the 1.4 million-member Teamsters Union and the Boilermakers Union (ph) will help Obama in Ohio and later in Pennsylvania, two states with a higher than average number of union workers. The endorsement comes as polling numbers show Obama has reached a lion share of what she once dominated, working class voters. Heading into what her campaign calls the critical, critical primaries in Texas and Ohio, she needs them back.
H. CLINTON: Now others might be joining a movement. Well, I'm joining you on the night shift, and on the day shift, and I'm asking you...
(APPLAUSE)
CROWLEY: Her campaign says she's been losing because she's been outspent and he's been un-scrutinized. They say they're better funded and in friendlier territory in Ohio and Texas. There's no hint of a major overhaul, but there is an urgency to her.
H. CLINTON: But it is time to get real, to get real about how we actually win this election, and get real about the challenges facing America. It's time that we moved from good words to good works, from sound bites to sound solutions.
CROWLEY: And there is a Tenino (ph) confidence to him.
OBAMA: Contrary to what she's been saying, it's not a choice between speeches and solutions. It's a choice between a politics that offers more of the same divisions and distractions that didn't work in South Carolina, and didn't work in Wisconsin, and will not work in Texas.
(END VIDEOTAPE)
CROWLEY: Lou, the pressure is really on Hillary Clinton at this point for what her aides call a critical, critical primary day in Ohio and in Texas. Just in case she didn't feel the pressure, her husband, the former president, said today, "If she doesn't win Ohio and Texas, she won't get the nomination" -- Lou?
DOBBS: Straight talk, if you will, from the former president. What is the sense there in Texas as to how she's doing right at this moment?
CROWLEY: Well, at this moment, you know, this was sort of seen as Clinton territory, but what we have seen poll-wise is, over the last couple of days, he's kind of wrestled her to dead even. You know, it's very complicated in Texas. You thought that the Democrats really could do a huge, complex national way to pick up the nomination?
You should see Texas. They first go to the primary voting booth to vote, and then later in the night, they have caucuses. So this is a learning experience. So far Barack Obama has had the better turnout team, so she's really got to be on her game here in Texas to keep it from falling to him.
DOBBS: You got to love Texas. Thanks, Candy, Candy Crowley from Austin, Texas.
The Teamsters Union today endorsed Senator Obama although the Teamsters disagree with Senator Obama on the issue of illegal immigration. Senator Obama strongly supports amnesty for illegal aliens and the Teamsters have a very different position but say they want to have a voice, as they put it, with the Obama campaign on the issue.
In a statement to LOU DOBBS TONIGHT the Teamsters said, "The Teamsters do believe that illegal workers who are here should be given a path to citizenship." The Teamsters went on to say, "but before that can happen the borders must be secured and immigration brought under control."
As we reported Ohio and Texas the biggest primaries coming up on March 4th. There are also contests also in Rhode Island and Vermont, 370 Democratic delegates at stake, 256 Republican delegates. We'll have complete coverage of course on all of those primaries right here at CNN.
Senator Clinton facing a tough challenge on March 4th to stop Senator Obama. Senator Clinton now appears to be losing some votes among once loyal supporters such as women and lower income workers. But despite those losses Senator Clinton still has nearly as many delegates overall as Senator Clinton -- as Senator Obama and nearly as many votes overall as Senator Obama. Bill Schneider has our report.
(BEGIN VIDEOTAPE)
(APPLAUSE)
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST (voice-over): When you've got the big mo' like Barack Obama's big momentum in Wisconsin this week, you take big bites out of your opponent's core supporters, like women.
H. CLINTON: I've been to more than 80 countries, worked with world leaders, stood up to the Chinese government to declare that women's rights are human rights.
SCHNEIDER: On Super Tuesday, just two weeks ago, women voted 43 percent for Obama. In Wisconsin, he split the women's vote with Clinton. Chump? Seniors have been strong for Clinton. Obama got just over a third of the senior vote on Super Tuesday. In Wisconsin, his senior support went up to 41 percent. Nibble? Clinton is relying on union voters to carry Ohio on March 4th.
H. CLINTON: You better believe labor will have a seat at the table.
SCHNEIDER: Right back at you, says Obama.
OBAMA: We're here because there are workers in Youngstown, Ohio, who have watched job after job after job disappear because of bad trade deals like NAFTA.
SCHNEIDER: On Super Tuesday, voters from union households voted 44 percent for Obama. In Wisconsin Obama's union supported jumped 10 points. Scarf? On Super Tuesday, she was carrying partisan Democrats. In Wisconsin, he took the bigger bite. Are whites voting for Obama? On Super Tuesday, no. In Wisconsin, yes.
The economy used to be Clinton's issue. Now Obama's gobbling up voters whose top concern is the economy. But is Obama holding his own core groups? He got over 90 percent of African-Americans in Wisconsin. His support among young voters soared to 70 percent. Independents, up to 64 percent. College graduates, 60, looks like a feast.
(END VIDEOTAPE)
SCHNEIDER: Now what about Latino voters? Hillary Clinton is relying on Latinos here in Texas and Latinos did give her 63 percent of their votes on Super Tuesday, and in Wisconsin yesterday, we just don't know, there were not enough Latinos in Wisconsin to be measured -- Lou?
DOBBS: You'll sure get a reading on March 4th in the state of Texas on that particular issue.
SCHNEIDER: That's right and the debate is being carried by Univision. That's why Latinos are going to get a look at both candidates and many of them don't know much about Obama yet.
DOBBS: Well the idea that this is all of this momentum, I think it's kind of interesting as we took a look at these numbers here, Bill, one of the things that jumps out at me is if you include Michigan and Florida, and there were just about 21 million votes cast, a little over a quarter of a million votes separate Senator Obama and Senator Clinton.
SCHNEIDER: That's right, which is fairly tight, you know, given 21 million votes cast.
DOBBS: I would think so.
SCHNEIDER: Yes, it is a very tight thing, a tight race but you know neither one of them is going to have a majority going into the convention, but if one of them and it could be either one does develop a big momentum and right now it looks like Obama, but that could change, then that's -- will carry the day with the all-important superdelegates. They'll go with the momentum and the momentum comes from the voters.
DOBBS: Well you know, that's -- I'm sure very well -- I know it's well-said. I'm just not certain, Bill that I agree with you entirely because this is, looks to me like a lot of people, including the leadership of the Democratic Party, are trying to create a rationale for whatever they think they may have to do come Denver time. SCHNEIDER: If they vote according to what they think they want to do, or have to do, they're going to be in trouble. Most of them are politicians and they're going to get in big trouble if they don't follow the wishes of the voters. They can't go to that convention and say, the voters say they want this candidate, but we're going to nominate the other candidate.
That way lies certain suicide. The only way they can have a real say is if the voters simply refuse to give either candidate a lead. If the voters can't make up their minds then the superdelegates are going to have to make it up for them.
DOBBS: Well the question comes -- it seems to me very stark and obvious, if neither candidate come Denver time and we're way ahead of ourselves here, I realize that, doesn't have the winning number, how in the world can anyone justify the superdelegates stepping in to decide that? Why not step away from it and like be a brokered convention? What's so bad about that?
(CROSSTALK)
SCHNEIDER: Well, what's so bad about that is it looks like an inside deal. It looks like the people's voice doesn't matter in choosing the ultimate nominee. The important thing is -- look, neither candidate is likely to win a majority of pledged delegates, but one candidate could have a lead, and possibly a strong lead and that kind of strong lead will instruct the superdelegates.
DOBBS: Yes, I'm just saying that I think everybody ought to just kind of hold on to reason here and try to apply some good sense. I disagree with the conventional view that these superdelegates should move with whoever has the largest number of votes. That does not in my opinion add up to democracy or a democratic process. That looks like, if you will, expediency, at least in my opinion, Bill. What do you think?
SCHNEIDER: I do not agree. I think the superdelegates, I think we have since 1968 turned over the decision of whom to nominate to the people. 1968, Hubert Humphrey didn't run in a single primary, it was all of the insiders and the party bosses. They changed the rules. They said the people shall decide who the nominee is and I don't think the super delegates, they have the legal right to reverse that decision. I don't think they can do it politically.
DOBBS: Yes, it's interesting. I'm not sure that we can make a convincing argument, however, that our presidents have improved since 1968 over those presidents previous to 1968.
SCHNEIDER: Well that's a good point.
DOBBS: Bill Schneider, we thank you as always. Appreciate it.
SCHNEIDER: All right.
DOBBS: And that brings us to the subject of our poll tonight: Do you believe the mainstream media has an institutional bias in favor of Senator Obama and/or against Senator Clinton?
We'd like to hear from you on that, yes or no, loudobbs.com. We'd like to hear your votes, tally it up here. We'll have the results coming up later.
And Senator McCain today launching a blistering attack against Senator Obama. Senator McCain accused Senator Obama of doublespeak on the issue of campaign financing. McCain also questioning Obama's judgment and competence to be commander in chief.
Dana Bash has our report from Columbus, Ohio -- Dana?
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Lou, in his victory speech here in Columbus last night, John McCain went after Barack Obama as being inexperienced especially on national security. Well today McCain turned his scathing criticism from Obama's abilities as commander in chief to his character.
(BEGIN VIDEOTAPE)
BASH (voice-over): With his GOP primary battle all but behind him, John McCain launched his most direct assault yet at Democrat Barack Obama, accusing the candidate running as a reformer of reneging on a pledge.
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: We either keep our word or we don't keep our word. I intend to keep my word to the American people.
BASH: At issue, whether Obama would agree to limit campaign spending by accepting public funding for the general election. In an op-ed in Wednesday's "USA Today" Obama proposed the Democrat and Republican nominee make a quote, "meaningful agreement in good faith that results in real spending limits."
MCCAIN: And that's Washington doublespeak. I committed to public financing. He committed to public financing. It is not any more complicated than that.
BASH: McCain is pointing to this survey from a watchdog group he and Obama both filled out this fall and both said yes, they'd accept public financing.
MCCAIN: Senator Obama did make that commitment in writing. I expect him to -- I think the American people would expect him to hold to that commitment especially if we want to bring about change.
BASH: With that, the probable GOP nominee is trying to undermine Obama's character, the heart of the Democrats' I'm an agent of change candidacy but McCain is also going after Obama on public financing for a more practical reason. Without spending limits, McCain advisers know they'd likely be at a huge financial disadvantage. Look at the history.
Last year Obama raised a little more than $102 million. McCain raised less than half, about $41 million. Since McCain's political fortune has turned around, so has his ability to bring in campaign cash but nothing like the tens of millions flowing into Obama's coffers.
(on camera): An Obama spokesman responded to McCain by accusing him of abandoning new efforts at campaign finance reform. That's a signature issue for the Republican presidential candidate, but one that is wildly unpopular with the GOP base -- Lou.
(END VIDEOTAPE)
DOBBS: Dana Bash reporting from Columbus, Ohio. I don't know about you, but it looks like Senator McCain has decided which of his likely opponents to go after.
Coming up next here, a confrontation between the state of Texas and Texas landowners over plans for that NAFTA superhighway.
Bill Tucker has our report -- Bill.
BILL TUCKER, CNN CORRESPONDENT: Well Lou, the state can take their road and shove it as far as the landowners are concerned but the state may prevail. I'll have the story coming up, Lou.
DOBBS: And it's quite a story. Don't mess with Texas, still in effect, yes indeed. Thank you, Bill.
Also, a major defeat for ethnocentric special interests and corporate elites in this country trying to stop a legal crackdown on employers of illegal aliens, we'll have that special report on a very important ruling.
And you won't believe the latest evidence of our government's failure to protect American consumers from dangerous imports. We'll have that story and a great deal more straight ahead.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: A major defeat tonight for the illegal employers of illegal aliens in this country. A federal judge in Arizona has rejected an effort by that state's business lobby to block a new Arizona state law cracking down on illegal employers of illegal aliens. And in doing so the federal district or judge accepted evidence that illegal aliens do, in fact, drive wages for legal workers down. It is something that we've documented and reported upon, on this broadcast, literally for years now.
Casey Wian has our report.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): Time is running out for employers of illegal aliens in Arizona. Enforcement of a new state law that would revoke the business licenses of companies caught with illegal workers is set to begin immediately, that after a federal judge, Neil Wake (ph), rejected a motion by Arizona businesses to block the law because they claim it's an unfair burden.
BARNETT LOTSTEIN, ASST. MARICOPA COUNTY ATTORNEY: In every single court hearing we've been successful in upholding this law. Judge Wake is a respected federal judge and he clearly stated that he did not believe that there is a likelihood of success on appeal. In denying the injunction he has voiced his opinion very strongly.
WIAN: The federal judge endorsed evidence submitted by Harvard University Professor George Borjas that the presence of unauthorized aliens in the Arizona workforce reduce the earnings of authorized workers in Arizona by 4.7 percent. That's about $1,000 a year for the average low-skilled legal worker. Borjas estimates illegal immigration drove down wages for all workers in Arizona by $1.4 billion in 2005.
Judge Wake ruled that the cost to businesses to comply with the law are minor in comparison and he flatly stated he did not believe the business lobby's argument that employer's sanctions drive down wages. Law enforcement has been on hold pending the courts decision. Arizona businesses have been rushing to comply for weeks.
CHRIS HAZEN, HR MGR., PATIO POOLS & SPAS: If somebody wants to take that chance to lose their business license that's a lot to risk.
WIAN: According to Judge Wake, there is anecdotal evidence Arizona's employer sanctions law is already having its intended effect. Illegal aliens are leaving the state and wages are beginning to rise.
(END VIDEOTAPE)
WIAN: Now the business lobby has filed an appeal with the Ninth Circuit in San Francisco. However, Judge Wake says he believes that appeal has little chance of success -- Lou?
DOBBS: This is an overwhelming victory for -- also for common sense and good, sound judgment and may I say respect for law. It's a remarkable decision by this federal district court judge.
WIAN: It absolutely is. It's very unusual to see a judge take a strong stand like he did in this latest ruling and he pointed out something that that study by Professor Borjas of Harvard University was probably understated the negative impact of illegal immigration is having on wages.
It's a refreshing change from so many federal officials that you hear talk about how we need these workers and these people are doing jobs that Americans won't do. There's a federal judge who is taking a stand saying this is harmful to the economy of Arizona -- Lou.
DOBBS: And legal workers, which has been...
WIAN: Absolutely.
DOBBS: We have been reporting on here for, literally years, and the facts are now beginning to present themselves, are moving into this national debate. And people watching this broadcast tonight, and Casey, all of us here, we can recall when we couldn't get the national dialogue and debate started on the issue of illegal immigration. And, it is beginning now to take hold.
And I don't believe anybody's going to be able to run from the facts. And the reality is, the common sense here, the idea that the Arizona State Chamber of Commerce went into a federal courtroom and tried to convince a federal judge, insult his intelligence by saying that following the law would drive down wages for U.S. citizens is -- they're out of their minds!
WIAN: The judge did not use the term "ridiculous", but if you read between the lines of his ruling it's clear that that's what he thought. I point out one other thing, Lou.
DOBBS: Sure.
WIAN: There is a state senator leader in New Jersey who is now out today saying that he likes this Arizona law and he wants to try to do the same thing in New Jersey.
DOBBS: And we're seeing evidence that this is going to happen across the country. Thank you very much, Casey Wian.
Up next here, the sale of a U.S. technology company, are you ready? We're going to be telling you about your government actually working tonight, that company has been halted over national security concerns by CFAS (ph). We'll have a special report on the federal government actually having a positive impact, doing its job, functioning with competency and concern for the national interests. Are you shocked? Wait until you hear the details. They're next. Stay with us.
(COMMERCIAL BREAK)
DOBBS: In Texas tonight, rising outrage over the so-called Trans-Texas Corridor, also known as the NAFTA superhighway, you know that thing that Washington doesn't really want to admit is happening in this country. At town hall meetings across the state of Texas, Texans voicing angry opposition to that proposed highway, a highway intended to cut from Mexico, through Texas all the way to Canada.
But as Bill Tucker now reports, the state does not require the support of the people to go ahead with the project.
(BEGIN VIDEOTAPE)
TUCKER (voice-over): It's a Texas-size product proposal, the Trans-Texas Corridor, I-69, a combination of rail lines, utility lines, car and truck lanes which will be the width of three football fields, laid end to end, three times wider than a typical interstate it will run from Laredo to Texarkana, but the project is attracting some Texas-sized opposition at town meetings throughout the state.
UNIDENTIFIED MALE: This is a terrible idea and a terrible attack on property rights. It amounts to a 4,000-mile laceration of concrete and steel inflicted upon the good people of Texas.
TUCKER: And many say it's all for the good of multinational corporations.
UNIDENTIFIED MALE: The plan is to ship cheap goods produced by under market labor and China and the Far East and North America via Mexican ports.
TUCKER: Roughly $150 billion worth of imports from Mexico came into the U.S. via Texas roadways in 2006, according to the Texas Department of Transportation, which is why, they say, the corridor is needed, but at what cost?
UNIDENTIFIED MALE: Why do we need this corridor? Well, somebody's going to get rich and it's not going to be anybody in this room here.
TUCKER: The I-69 Corridor will cut through rural farmland, land that, in many cases has been in the family for generations. The state vows to use eminent domain to take that land. Those farmers and ranchers vow in return, they will fight the state, including this promise from a Marine serving in Iraq, his letter was read for him.
UNIDENTIFIED FEMALE: If not, you can count on me to fight you at every meeting, and there is nothing stronger than a United States Marine fighting for his home.
TUCKER: There are 12 more town meetings planned between now and March 3rd.
(END VIDEOTAPE)
TUCKER: And like it or not, Texans could just have to live with that corridor. Lou, those opposed say they're not against building better roads or expanding roads and making them bigger, but they're not about to back down from the state and face the opposition against this Trans-Texas Corridor project.
DOBBS: Wait a minute, are you saying that they're for it or are they against it?
TUCKER: They are against...
DOBBS: You're talking three football -- I mean what in the world are we saying here?
TUCKER: That thing is going to be three football fields wide, they're dead set against it...
DOBBS: But you make it sound like they're not going to win.
TUCKER: Well the state says they don't need voter approval, Lou, and they say they will go...
DOBBS: They don't need voter approval?
TUCKER: The state's contention is they do not need voter approval...
DOBBS: So they're telling the citizens of Texas to go to hell? That isn't a real smart recipe in the state of Texas that I remember.
TUCKER: I wouldn't think so either not in the Texas I remember either.
DOBBS: Well it is going to be -- this is going to be interesting to watch, because it's now coming out, do you know that there were state officials, state-elected officials, there were various news organizations in Texas, very, up until very recently, denying that there's any plan for North American Union, denying that there was a NAFTA superhighway in the plans.
I mean this thing is opening up and it should be opening up the eyes of the people of the state of Texas to what in the world you're being handed and I got to tell you, it smells to high heaven. Thank you very much, Bill Tucker.
Thousands of you, not just from the state of Texas, are sending us your thoughts about this NAFTA superhighway. Richard in Minnesota said: "Build a Trans-America super corporate highway? Of course, why not use taxpayer money to build that superhighway to import even more cheap foreign imports to displace American-made products, import more illegal workers and illegal drugs. It is just government business as usual."
And this is an exact statement. The reality is that is what is happening in the state of Texas is designed to bring in Chinese imports, sent to ports in Mexico, rather than California because those ports are over capacity right now. It is absolutely a transformational moment and as people of this country, not only people in the state of Texas, are going to have to have to decide what is going to happen with this nation.
Michael in Texas said: "Don't mess with Texas. Seems to me that if the elected officials in Texas want the I-69 and the people don't, then maybe we should let them find other jobs. I don't know if a recall is allowed here or not but maybe we, the people, should find out."
We'll have more of your thoughts here later. Each of you whose e-mail is read here receives a copy of my new book "Independents Day: Awakening the American Spirit".
Coming up next, communist China suffering a setback in its efforts to take control of critically important American assets. Is our government actually doing something right? The answer may be yes. Imagine that! We'll have the report.
And our national debt is soaring, our economy may be headed to recession. My guest is David Walker, U.S. comptroller general who says we could be on the brink of a larger economic crisis.
Senator Hillary Clinton struggling to defeat Senator Obama, can she win the Democratic nomination? Three of the best political analysts anywhere will give us their answer.
Stay with us. We're coming right back.
(COMMERCIAL BREAK)
DOBBS: More news of a weakening economy today. The Federal Reserve report driving crude oil prices higher, reaching $101 a barrel today. That price increase will make it of course more expensive to heat our homes, fill up our cars at the gas pump, and prices of manufacturing goods also rising.
National security concerns, not the economy, however, today, stalling the sale of technology company, 3com. Bain Capital and Chinese company Walway offered more than $2 billion to buy 3com. The deal raised concerns early on, believe it or not. A subsidy of 3com in fact sells securities software to the Pentagon and Walway has close ties to the communist Chinese government.
Christine Romans has our report -- Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, the Committee on Foreign Investments in the United States called CFIUS is the national security panel that vets international deals. Faced with tough questions from that panel, a Chinese company will not acquire now a stake in the company that provides computer security for the pentagon.
(BEGIN VIDEOTAPE)
ROMANS: 3com, Bain Capital and Huawei pulled their merger application from the national security review process. From the beginning there were questions about the $2.2 billion deal in which private equity firm Bain Capital buys 3com and gives a 16 percent to Huawei. 3com provides security software to the pentagon and Huawei has ties to China's military. John Tkacik is with the Heritage Foundation, a conservative think tank.
JOHN TKACIK, HERITAGE FOUNDATION: National security is put in a compromised position when you let a foreign government-owned or government-responsible entity like Huawei have direct involvement in an American computer security and networking company.
ROMANS: There are heightened concerns about cyber attacks on American defense systems. Bain and 3com were willing to divest the subsidiary that provides security to the pentagon but a source says that was not enough for regulators 3com's CEO said he was "very disappointed." Last fall dozens of senators expressed grave concerns about the deal in a letter to the Treasury Department because of this longstanding and apparently deeply engrained relationship between Huawei and China's army.
In the House, eight Republicans urged the Huawei deal not be approved. One of those congressman praised the CFIUS.
REP. THADEUS MCCOTTER (R), MICHIGAN: This is a lone victory and attempt to stop stealth assaults on America's national security and what we cannot do is let our guard down. We must be ever vigilant. The process is working. I think we should abide and appreciate the decision of Bain not to go forward with this deal.
ROMANS: A Treasury Department spokesman had no comment.
(END VIDEOTAPE)
ROMANS: The national security review of this deal was in its final stages and headed for the president's desk but a source close to the company said it became clear in recent days that CFIUS was not going to allow the deal to proceed.
DOBBS: The president wouldn't have much more to do other, than explain bad judgment, frankly, to let it get this far.
This is a great, great night here on LOU DOBBS TONIGHT, and for the country. CFIUS actually worked, absolutely worked! It's incredible. Someone put the national interests ahead of private gain? Private profit? I mean, this is a remarkable, I have to tell you, everybody, take a deep breath. We ought to cherish this moment, treasure this moment and hope there are many more to follow. I mean this is very encouraging.
ROMANS: There were some concerns in September when the deal was first announced you had several people in congress in the House and Senate raising concerns right away, a lot of the people are saying the right thing was done.
DOBBS: This is definitely the right thing done and it is also a great moment when our legislators and our elected officials begin to represent the national interests instead of special interests, and we're going to put up on our Web site the names of those senators and those congressmen who opposed this deal, and who were pressing CFIUS, the Committee on Foreign Investment in the United States to deny this deal to Huawei and Bain Capital.
Thank you very much, Christine Romans, a happy story. I am so happy.
A reminder now to vote in our poll. The question is: Do you believe the mainstream media has an institutional bias in favor of Senator Barack Obama and/or against Senator Hillary Clinton? Yes or no, cast your vote at loudobbs.com. We'll have the results coming up here later.
Up next, an advocate for sound fiscal policy is leaving his government watchdog post. U.S. Comptroller General David Walker has been an outstanding public servant and he joins us later.
The Obama campaign says Senator Clinton's claims that the race is tied is just lunacy. We'll talk about that with three of the country's best political analysts.
Stay with us. We're coming right back.
(COMMERCIAL BREAK)
DOBBS: The Federal Reserve cut its economic growth projections saying the nation can expect higher unemployment and higher inflation, and saying also there are no signs of stabilization in our troubled housing sector.
David Walker is the Comptroller General of the United States, advocate of fiscal reason and outstanding public servant, if I may say so and last week announced his resignation to join a foundation focusing on the critical issues facing the nation, many of the issues that David Walker has been focusing on serving in government.
Good to have you with us.
DAVID WALKER, U.S. COMPTROLLER GENERAL: Good to be back, Lou. Thanks for the opportunity.
DOBBS: When I say you've been outstanding, I think you have just done great credit to the job, to the agency and to the government in which there are not many bright spots about what they say candidly. What made you decide to leave early? You've got what, another six years you could have stayed in office there I guess.
WALKER: Another five and a half. You know I've accomplished all but one of the objectives that I set out for myself in 1998 and the last objective is to try to help get the congress to make some tough choices about the challenges that face the future of America, and I'm actually going to have more flexibility and more discretionary resources by partnering with a great American Peter G. Peterson on this new foundation.
DOBBS: Former commerce secretary, longstanding advocate for fiscal prudence and responsibility, a terrific American, as you say. He's putting quite a bit of money behind this effort, too, isn't he?
WALKER: He's pledged at least $1 billion over the next several years and that will make a difference. We'll be a nontraditional foundation, a non-bureaucratic results oriented.
DOBBS: You have done more than anyone to focus the public's attention to the degree that the public's attention can be focused on, the sometimes difficult issues to analyze, understand and discuss, whether it be the unfunded liabilities or the ineffectiveness of government, and waste in government, but no one would have focused in my judgments as clearly on the unfunded liabilities that are the result of entitlement programs, social security, Medicaid, Medicare, is that going to be a big part of your efforts?
WALKER: It surely it. We have a $53 trillion hole that we're in, of which about $9 trillion is debt that we already have and $44 trillion are unfunded promises for social security and Medicare alone. And that hole gets deeper $2 trillion to $3 trillion a year by doing nothing.
DOBBS: Let's start out with the fundamentals, all of that money is related to our society and economy by way of our government and our political system. Do you believe we're going to have to make fundamental changes in the way this economy operates, the way we think as a society and the way in which we govern ourselves to deal with the problems that are so massive and so deep, so broad in scale?
WALKER: We're going to have to make some dramatic and fundamental reforms. After World War II, we were 50 percent of the global economy. Now we're 22 percent and under pressure. We face a lot of competition. We're number one in many things and not all things. We need to get back to basics.
We have to reimpose some tough budget controls. We have to reform our entitlement programs and our tax system. We have to eliminate a lot of waste with regard to spending, and we may have to engage in political reforms as well in order to get people to focus on the future.
DOBBS: I sure hope we do and I hope you're effective in that because this government isn't working. This government is broken. This government is dysfunctional. These parties are pathetic, partisan, myopic and really frankly, void of imagination and seemingly concern for the people they serve. If your foundation can alter those, the direction that we've been in, for too many decades, power to you.
WALKER: We're going to give it our best effort and I'm confident we're going to make a difference
DOBBS: David Walker, we know you will. You've been terrific and we appreciate all that you've done as comptroller general and look forward to what you'll accomplish in the foundation.
WALKER: And thanks for your interest and efforts, Lou.
DOBBS: Thank you very much.
WALKER: Take care.
DOBBS: Coming up the top of the hour, the Election Center, John Roberts from Austin, Texas.
John, what are you working on?
JOHN ROBERTS, CNN ANCHOR: Good evening to you, Lou. CNN "Election Center" coming up at the top of the hour.
Tonight, we are at the University of Texas in Austin, scene of tomorrow night's debate between Hillary Clinton and Barack Obama, a debate that you'll see right here on CNN. Tonight the candidate's jabs are getting tougher than ever. We'll also look at what's happening behind the scenes. Superdelegate arm twisting and Hillary Clinton voters who are defecting to Barack Obama.
All of that coming up, Lou, tonight at the top of the hour. We'll see you then.
DOBBS: Thank you, John.
Next, what Michelle Obama is saying now about her pride in this country. You don't want to miss that. And Senator McCain blasting Senator Obama. Senator Obama firing back, a very public battle is just beginning. We'll hear from three of the best political minds next.
Stay with us. We're coming right back.
(COMMERCIAL BREAK)
DOBBS: Well, Senator Barack Obama picked up a huge endorsement today from the Teamster's Union, the latest evidence that Obama is cutting in to Senator Clinton's base, and a development just now breaking.
Joining me now, Michael Goodwin. He's a contributor to this broadcast and Pulitzer Prize winning columnist "New York Daily News" and Hank Sheinkopf, also contributor of this broadcast and Democratic strategist, and Mark Halperin, senior political analyst, "Time" magazine, coauthor of "The Way To Win, Taking The White House In 2008."
I'm going to defer the discussion on Obama and Clinton and focus on what we've, as you all know, but let me share with our audience we just received from the web of the "New York Times," the headline is for McCain, self-confidence and ethics poses its own risk in the story written by David Reutenberg, Jim Reutenberg, rather.
The top take is earlier in Senator John McCain's first run for the White House, eight years ago, waves of anxiety swept through his small circle of advisers. A female lobbyist had been turning up with him at fund-raisers, in his offices and aboard a client's corporate jet. Convinced the relationship had become romantic, some of his top advisers intervened to protect himself from himself, instructing staff members to block the woman's access, privately warned the woman away and confronted several people on condition of anonymity. Wow.
Mark, give us your assessment of the impact of this story.
MARK HALPERIN, TIME MAGAZINE: "The New York Times" even in our fractured media world still has a huge influence on what gets covered and why. We know that the McCain campaign has been trying to kill this story for several months. The lead reporter Jim Reutenbreg has been working on it for a long time. As the story says McCain called Bill Keller who runs the "New York Times."
They put it in the context of the overall questions about how McCain has run his office and his relationship to ethics. I think they're, there are going to be a lot of questions raised from the story and it's going to be the first of many twists and turns in the presidential race going forward.
DOBBS: Michael?
MICHAEL GOODWIN, NEW YORK DAILY NEWS: As you said, Lou, we just got this, so a quick read of it left me thinking that "The Times" kind of didn't have everything it wanted to get, and so there's a lot of innuendo which I didn't see the specifics that to me would justify, you know, saying this is going to blow up.
DOBBS: Great room for inference but no claim that the relationship was --
GOODWIN: In fact, they both deny it, McCain and the woman, so that's a tough story.
DOBBS: A tough story, a tough timing, and coming out on the web before the paper, highly unusual as well, don't you think, Hank?
HANK SHEINKOPF, DEMOCRATIC STRATEGIST: Absolutely. Independent expenditure groups will have a great time with this one come the fall if McCain is the nominee, you'll see commercials with corporate jets, McCain, spots pressing down on his character trying to prove his decision-making is bad.
DOBBS: The basis for a swift boat effort, as you're suggesting?
SHEINKOPF: I'm suggesting more than swift boat. I'm suggesting depth charges to submarine. This is serious and will wreak havoc on his campaign.
DOBBS: Do you concur?
HALPERIN: I think we all need to read the story carefully and see what happens but again, as I said before, "The Times" took their time with the story. The McCain campaign was not pleased it was going to run so they at least believe this is a potential threat.
DOBBS: A potential threat, again the timing is, to me, well, the time something what it is. We'll see, you know, as we go forward, but --
HALPERIN: Some people argue the timing that it came late that if "The Times" had this, which they had the basis for the story for several months why did they wait until John McCain sewed up the nomination?
GOODWIN: Conspiracy theories are starting already.
DOBBS: Usually not without some basis.
SHEINKOPF: I would wonder who the crazy, jealous people are who suddenly went to the paper and confirmed sources about someone they worked for, would not speak well of their character.
DOBBS: You're talking about the so called anonymous person?
SHEINKOPF: Yes.
GOODWIN: Look, I'm uncomfortable saying this is a great moment because we just don't know if it's true. That to me --
DOBBS: Who would suggest this is a great moment?
GOODWIN: Well, it's a great moment in journalism in terms of its impact on the campaign. This may or may not turn out to be all it suggests. Obviously McCain would fight against it perhaps because it's not right. I'm a little leery of these kinds of things without a little more meat on the bone.
SHEINKOPF: The problem isn't political, it's somewhat different. A thousand hours on the air this week can be a problem.
DOBBS: We're going to have further thought. We're going to continue the panel in a moment and your thoughts and the results of our poll.
Stay with us. We'll be right back.
(COMMERCIAL BREAK)
DOBBS: Folks, we can talk about a lot of things here tonight but with this story breaking, and the accusations against Senator McCain suggesting, intimating, a relationship with this woman going back eight years ...
GOODWIN: Well --
DOBBS: I just don't see how we can go beyond this. I think we've got to focus on this and try to understand this as best we can.
GOODWIN: Also, Lou, if the allegations are correct it's an affair but it also involves she's a lobbyist and according to "The Times" and involves doing favors for her clients. So there's not just a personal life issue. There's a governmental issue, particularly for McCain and the sense of rectitude that he conveys.
DOBBS: The instinct here is to say this is the man's personal life, why deal with it, but in this instance, the suggestions are quite a bit stronger and broader.
HALPERIN: Well, I think there's a couple of things and I think Michael hit two of them very smartly. One is McCain's greatest strength is this public image of rectitude, that he's a man of honor. And this is a potential problem for him in that respect.
And then the other is, not the personal, but the fact that because she is a lobbyist, because she has clients with business before the committee that there's a potential for reporters to look more than "The Times" has into the question of whether her clients ever got special favors from Senator McCain. The story suggests that, talks about it. It's denied in the story but that does present a potential problem for him.
SHEINKOPF: And the campaign gifts or the other gifts that may or may not be illegal of private flights with someone who is not supposed to be there necessarily, how often did it occur, what else did they give him, all of the stuff will start to percolate.
DOBBS: And the journalism involved here coming out as it has before the paper is printed on the Web site, with the suggestion again that this has been in the works for awhile. Is the "New York Times" endorsing Democratic candidates and having done so for decades, is that timing suspect on the part of the journalistic organization in your mind?
SHEINKOPF: Not suspect in that way. Look, these are good reporters at "The New York Times." Some of them are terrific reporters. Jim Reutenberg is a very good reporter, someone I've known probably for most of the last 20, 25 years.
DOBBS: Me too.
SHEINKOPF: He's a good reporter, honorable and did his job.
HALPERIN: There is public history to this. This is not out of the blue and not just known to insiders. Because several months ago, Matt Drudge on his Web site wrote something about the story being in the works and McCain much to the chagrin of some people close to him commented on it publicly.
He hired a prominent Washington criminal defense lawyer to help him represent him to "The Times" and all of that again has been percolating behind the scenes. You heard talk from some of the other Republican presidential campaigns saying where is "The Times" and why aren't they running the story.
GOODWIN: Lou to the point of the timing of the release and also the way it's written, to me it's kind of backwards. If there's a real issue here, I think for McCain, it is first and foremost the issue of doing favors for a lobbyist. I think that's the heart of the matter. That sort of comes down in. It's the concerns about an affair that becomes the top of the story. I think the real meat of this would be lobbyist favors.
DOBBS: And the other implication -- well possibility within this, is an explanation for Huckabee's, if you will, perseverance; Romney suspending his campaign. What is this all adding up to?
SHEINKOPF: Mark raised it during the break that you know he suspended his campaign, Romney did. Huckabee is still out there. What does that add up to? Republican chaos, that's what it adds up to because McCain ain't going any place for a while and the real story is war hero does bad. That's the problem.
GOODWIN: Right. McCain is obviously going to have to fight his way out of this now. It doesn't mean it's over yet based on this one story but he's going to have to prove that it's not true.
DOBBS: Mark Halperin gets the last word.
HALPERIN: The thematics of this are not great for a guy whose still trying to consolidate within the base. He says, we're the party that is not -- we're going to stop corruption. We're the party that's going to focus on big issues of war and peace. Again, if you're a Republican or a conservative, looking for a reason not to be for John McCain yet, or perhaps ever, this is a bad story for him, bad timing.
DOBBS: Gentleman, thank you very much. Mark, Michael, thank you.
Results of our poll, 73 percent of you say you believe the mainstream media does have an institutional bias in favor of Senator Obama and/or against Senator Clinton.
Time now for some of your thoughts.
Suzie, a Democrat in Georgia, wrote in to say, among other things, "I am registering as an Independent this week, now that my primary is over, and I can do that. I will be voting my age, my status, and my brain in the fall. And these are my words."
Bob and Fran in Michigan, "Dear Lou, my husband and I have joined the ranks of Independents. We are totally against any form of amnesty for illegal aliens. Who represents us? We feel we're being disenfranchised. Keep plugging away."
Guaranteed.
And Todd in Florida, "Lou, I for one, am fed up with NAFTA, CAFTA and all the other TA's. It's time to scrap them all and start from scratch. How about with American workers as the primary focus this time. Keep fighting, Lou, seems America might actually be listening."
I think you're right. At least, I hope you're right.
We love hearing from you. Send us your thoughts at loudobbs.com. Each of you whose e-mail is read here, receives a copy of my new book, "Independents Day: Awakening the American Spirit."
And before we end tonight, we want to hold up, again, for your commendation, the federal judge who is upholding the law and with good reason and common sense. Judge Neil Wake upholding a crack down on illegal employers in the state of Arizona, illegal employers of illegal aliens. For that, Judge Wake, we salute you and we thank you.
Thanks for being with us tonight. Join us here tomorrow. For all of us here, thanks for watching. Good night from New York. The "Election Center" with John Roberts starts right now.
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