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Iraq's National Theater; Skyrocketing Food Prices; Israeli Air Strikes and Hamas Rocket Fire Flying Back and Forth Between Two Sides

Aired February 28, 2008 - 09:00   ET

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


HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. You are in the CNN NEWSROOM. I'm Heidi Collins.
Watch evens come into the NEWSROOM live on Thursday, February 28th. Here's what's on the rundown.

The president and the nation's top bankers quizzed on the wobbly economy this morning. President Bush's Q&A with reporters live in the NEWSROOM.

The switch hitter. A big league congressman joins team Obama. Will other superdelegates abandon Clinton in the bottom of the ninth?

And Iraq's national theater. These days, performance, not propaganda, our Kyra Phillips fill on assignment, curtain rising, in the NEWSROOM.

Your money, your concerns. Top decision-makers focusing this morning on the troubled economy and signs that even rougher times may lie ahead. We learned just a short time ago President Bush will hold a news conference next hour. The economy is certain to be among the leading topics. We're going to carry it for you live.

Also next hour, the nation's top banker returns to Capitol Hill. Lawmakers got a grim assessment from Federal Reserve chairman Ben Bernanke yesterday. He warned of a wobbly economy threatened by the double whammy of inflation and risk of a recession. Those concerns are sure to fuel a closed-door meeting later this morning. That is when President Bush will meet with his economic team.

So the economy, bad news becomes good fodder on a presidential campaign trail.

CNN senior business correspondent Ali Velshi is on the road now gauging voters' sentiment on this issue. Today, he is with the CNN Election Express in San Antonio, Texas. The Alamo there.

Hi, Ali.

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Good morning, Heidi. You know, it's very satisfying to the people I've been speaking to across Texas that all of a sudden the number of economic reports support exactly what they have been saying. That inflation is much higher than the government has been reporting over the course of the last year. The economy is slowing down, and that there are real problems that people are facing. Fundamentally, the economy is the number one concern of Americans out here in Texas. And if you break that down in some other parts of country it might be jobs, it might be housing, it might be mortgage rates, it might be the stock market, but around here oil prices play a big part. A certain proportion of Texas does very well off of oil prices. Many other people have to drive trucks all over the place don't do very well off of them.

That is really hurting them and the other issue is inflation generally, because high oil prices stoke inflation.

Listen to what I have been hearing while I've been on the road.

(BEGIN VIDEO CLIP)

GARY MURTHA, TEXAS TRUCK DRIVER: With fuel at $3.50 a gallon, on average it takes everybody out here 70 cents a mile just in diesel fuel. When freights only then $1.30 or $1.40 an mile, we can't make a living at that. It's too cheap. There's not a lack of freight, it's cheap freight.

(END VIDEO CLIP)

VELSHI: You know, Texas is a state where a lot of trucks come through here. They buy diesel fuel, which is a lot more expensive than gasoline, but -- and most people say, well, why do I care if I don't buy diesel fuel? Because farm equipment uses diesel fuel and that comes out in the food you buy. Trucks use diesel fuel and that comes out in anything you buy from a store.

So again, fuel and inflation are the biggest deals right now. Ben Bernanke back before Congress this morning continuing his testimony. President Bush is going to be making comments that involve the economy. So everybody is focused on what is going to happen next. What exactly can the government do, what can the Fed do, and while I'm here on the ground, people are asking me, what are the candidates going to do? Heidi?

COLLINS: What are we hearing from the candidates about how they will plan to fix the economy?

VELSHI: Well, you know, they're focused on the major issues, obviously, housing, mortgage, foreclosures and energy. Those are the ones that all the candidates have spoken on.

Hillary Clinton's platform are the clearest. She tend to go -- she seems to go the furthest in terms of wanting a freeze on foreclosures and adjustable interest rates. Barack Obama is definitely focusing his economic policy on health care. He's trying to make that the centerpiece and John McCain has famously said that he's not really all that into the economy but that he would like to hold off on the alternative minimum tax and maintain the tax credits that were brought in by President Bush.

So they are different. Their economic policies are different. And depending on what your major concerns are, you'd be wanting to know specifically what they're going to do. But no one has come out with a very specific policy on what we do about oil prices and commodity prices, which are really behind the inflationary pressures that we're seeing right now in the economy. That's behind the price increases that we're all looking at.

COLLINS: Yes, behind pretty much everything.

All right. CNN's Ali Velshi live from San Antonio, Texas this morning.

Ali, thanks so much.

We do have CNN crews covering all the angles of the economy today. First President Bush's news conference, that is scheduled for 10:05 Eastern. We're going to be carry that for you live, of course. And we are on Capitol Hill this morning as well to monitor remarks from nation's top banker next hour, Fed chief Ben Bernanke has minced no words in his blunt assessment of the wobbly economy. It's day two for him on Capitol Hill.

And we'll also -- the posted at the Labor Department, where President Bush will huddle with his economic advisers. That briefing will be held behind closed doors.

Presidential politics. We begin with who's not running today. New York mayor Michael Bloomberg says count him out. In a "New York Times" editorial, Bloomberg says he won't launch an independent campaign for the White House but he hints he may throw his support and money behind a candidate who take a bipartisan approach.

A prominent superdelegate switches his support from Hillary Clinton to Barack Obama. Congressman and civil rights icon John Lewis says he's following the will of his constituents. This announcement comes less than a week before a crucial primary in Texas and Ohio. Lewis says Obama represents the beginning of a new movement in American politics.

Obama, who's campaigning in Texas today, says he is honored to have Lewis's support.

The loss of support from Lewis comes at a tough time for Hillary Clinton. She's trying to rebound from 11 straight losses to Obama. Clinton is campaigning in Ohio today.

She says she's the most experienced and electable, but the loss of a prominent supporter deals a setback to Hillary Clinton's campaign.

Senior political correspondent Candy Crowley is part of the best political team on television.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice over): In a political and personal blow to Hillary Clinton, Congressman John Lewis, civil rights legend, close friend, and early Clinton supporter, is jumping ship.

REP. JOHN LEWIS (D), GEORGIA: This man, this senator, Barack Obama, somehow and some way has been able to emerge to carry the hopes and dreams and aspiration of millions of people.

CROWLEY: Noting his Georgia district voted for Obama, Lewis said something's happening in America. Something some of us did not see coming.

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Continuing our focus on jobs, which is the key here.

CROWLEY: The news comes as Clinton tries to steady her campaign in the most critical days of her presidential bid. She relentlessly talks problems, policies and plans to solve them, shuttling from Texas to Ohio and back again. Her game plan, focus voters on the states.

CLINTON: What I feel is happening is that people are turning towards the big questions that they should have to answer in the campaign. You know? Who can be the best commander in chief? Who do you want in the White House answering the phone at 3:00 a.m.? Who'll give you (INAUDIBLE) of the economy?

CROWLEY: Behind the scenes the campaign is trying to stop the slow bleed. Top Clinton supporters are urging high-profile politicians eying Obama to hold off. During three weeks this month, he spent nearly $4 million in ads, almost twice as much as she has. A fundraising plea was put out under Bill Clinton's name.

"Let's show the Obama campaign," it read, "that they can't win this race just by throwing more money at it."

It does not help her cause that John McCain is tuning up for a general campaign in a way that suggests he expects Obama will be his opponent. Flashing his foreign policy credentials, McCain is mocking Obama for saying after U.S. forces are withdrawn, he would send them back if al Qaeda resurges and Iraq is in chaos.

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I have some news. Al Qaeda is in Iraq. Al Qaeda, it's called al Qaeda in Iraq. And, my friends, they wouldn't -- if we left, they wouldn't be establishing a base. They wouldn't be establishing a base. They'd be taking a country, and I'm not going to allow that to happen, my friends. I will not surrender.

CROWLEY: Without offering a direct answer, Obama, nonetheless, is happy to have this discussion.

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I have some news for John McCain, and that is that there was no such thing at al Qaeda in Iraq until George Bush and John McCain decided to invade Iraq.

CROWLEY: It is a fall preview of a story not yet written. Camp Clinton argues and polls support the idea that she could well win both Ohio and Texas this Tuesday. Two big states, one pivotal race and so little time. (END VIDEOTAPE)

COLLINS: CNN's Candy Crowley reporting.

No known motive, but plenty of victims. The search is on today for a man who shot eight people, five of them children, at a busy bus stop in south L.A. Police say the gunman appeared to fire indiscriminately into the crowd waiting for a city bus near a middle school. Witnesses say he fired about 15 rounds.

The most seriously wounded a 12-year-old and a 49-year-old woman, both in critical condition now. The youngest victim, a 10-year-old. The shooting was in an area known for gang violence. Police say the gunman is an African-American man about 5'7", 160 pounds.

Federal investigators are trying to figure out what caused a fiery plane crash in Riverside, California. All three people in the single engine plane were killed. It went down last night in a neighborhood south of the Riverside airport shortly after takeoff. The plane hit a small car. But no one was inside and no one on the ground was hurt. Fire officials say the pilot did an amazing job of avoiding houses.

Bonnie Schneider is with us today, standing by now in the weather center to talk a little bit more about snow coming through the Great Lakes, right?

(WEATHER REPORT)

COLLINS: Yes, no kidding. All right. Bonnie Schneider, we'll check in a little later. Thank you.

A potentially deadly virus. Thousands of patients at a Las Vegas clinic need to be tested now . Dr. Sanjay Gupta dropping by in a moment.

ANNOUNCER: CNN NEWSROOM brought to you by...

(COMMERCIAL BREAK)

COLLINS: Welcome back, everybody. I'm Heidi Collins. You're in the CNN NEWSROOM.

Well, it's your wallet. President Bush talking about the fading economy. His news conference live in the NEWSROOM 10:05 Eastern.

(COMMERCIAL BREAK)

ANNOUNCER: Breaking news, revealing development, see for yourself in the CNN NEWSROOM.

COLLINS: Hepatitis C, a potentially deadly virus, and health officials say people may have been exposed at a Las Vegas clinic. Warning letters are going out to some 40,000 patients.

Our chief medical correspondent Dr. Sanjay Gupta is in Washington now with more on this.

So Sanjay, how many people may have been infected? I mean, this sounds like a lot to get letters. Forty thousand?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes. I mean we're talking since March of 2004 to now. This is a true medical investigation, Heidi. You know, there was a cluster of cases of hepatitis C and the docs and the investigators had to figure what was the common link here.

And what the -- as they found out, they traced things back, they realized it was this endoscopy center, as you mentioned. Endoscopy centers is the center where they perform certain tests of the GI system, the esophagus, the colon, they do those sorts of tests there and they found that these people all had a visit to that center in common and they realized, as they investigated, that , in fact, there have been six cases of hepatitis C and there were some unsatisfactory, unsafe practices that had taken place there.

They could potentially, as you say, expose 40,000 more.

COLLINS: Wow.

GUPTA: So people will be getting letters over the next couple of weeks saying they could have been exposed, it's a frightening thing, they should probably get tested.

COLLINS: Yikes. I think I've had about 20 endoscopies. So something to think about. No matter what the procedure -- in fact, it's a little bit scary because, isn't it true that most with people with hepatitis C don't even really have very many signs or symptoms?

GUPTA: Yes, that's exactly right. About 80 percent, in fact. It could simply be whether -- could be called carriers of the virus. They don't necessarily develop any symptoms, they don't get sick. If they do, sometimes it's a long time after they've been infected, which makes it really hard to trace back exactly what caused the hepatitis C.

But if you develop symptoms, they can be pretty bad, as you know, Heidi. Hepatitis C is one of the -- is much worse, for example, than hepatitis A. You can develop significant belly pain, you can get what's known as jaundice.

COLLINS: Yes.

GUPTA: That's when your skin starts to turn yellow. The whites of your eyes turn yellow and you can develop liver failure or even liver cancer, ultimately, possibly death. So this is a serious concern, which is why people need to be tested quickly. There are some treatments, but there is no vaccine.

COLLINS: Yes. Wow. Tell me again how exactly the patients were exposed? It was during endoscopies. What exactly -- was the instruments not cleaned properly or something? GUPTA: Well, what we learned -- and this was interesting, Heidi, it didn't appear to be from the endoscopy itself but rather from the anesthetic. And you know, I -- this was interesting to me. So if you think about it, when someone injects anesthesia, you basically take a needle in the syringe and he put into the bottle, he drops some of the anesthesia and you give it to patient.

That bottle is supposed to be a one-use bottle. So even if you don't use it all, you're still supposed to toss it. What they found, the investigators, was the one-used bottles were getting used again. So as the new needle, a new syringe, but the bottle itself, which could contain possibly small amounts of the virus, if there were virus, could be drawn up into another needle and syringe and give it to another patient. So that's where the concern sort of lies here. More in the anesthetic bottle than in the endoscopy itself.

COLLINS: Wow. Seems like that used anesthesia 101. New needle. Yikes. All right.

GUPTA: Exactly. That was an unsafe practice.

COLLINS: Yes.

GUPTA: And this is a -- I think a learning lesson for everybody.

COLLINS: Yes, definitely.

All right. CNN's chief medical correspondent Dr. Sanjay Gupta.

Sanjay, thanks.

GUPTA: Thank you. All right.

COLLINS: Sparring over your security and the Iraq war. Republican John McCain fires at Democrat Senator Barack Obama, and the Obama shoots back.

Dana Bash now with the McCain campaign live for us this morning out of Houston.

Good morning to you, Dana.

DANA BASH, CNN CORRESPONDENT: Good morning. And John McCain this morning is actually going to be here where I am at Rice University, with James Baker, one of the elder statesmen of the Republican Party when it comes to that issue of national security that John McCain is so clearly running on.

He -- we are told that James Baker will formally endorse Senator McCain later this -- later morning after this town hall here. But as you said, what John McCain is trying to do already, looking beyond the primary season, is going after Democrats, in particular, Barack Obama. He was his main target yesterday and we expect it either suddenly or overtly later today about the war in Iraq, and specifically about what Barack Obama said a couple of nights ago in a debate about whether or not he would send troops back into Iraq if he found out al Qaeda had a serious presence there.

MCCAIN: I have some news. Al Qaeda is in Iraq. Al Qaeda. It's called al Qaeda in Iraq.

OBAMA: I have some news for John McCain. And that is that there was no such thing as al Qaeda in Iraq until George Bush and John McCain decided to invade Iraq.

(END VIDEO CLIP)

BASH: Now, what John McCain is going to do here in a couple of minutes, when this town hall starts is, have some conversation, have some dialogue with some members of the foreign policy community. This here, at Rice University, particularly the James Baker Institute.

Heidi, this is a forum for Democrats and Republicans traditionally. They come and talk about issues of national security but with regard to James Baker, this can be quite interesting, because he obviously worked -- was a senior aide to President Reagan, he was former secretary of state as well. But most recently he is known for -- as one of the leaders of the Iraq Study Group, and Iraq Study Group which very much went against and was very critical of the president's strategy in Iraq, also did not exactly support the so-called surge, the surge in Iraq, which John McCain has really staked his whole candidacy on, and very much is a supporter of.

So could be interesting to see the discussion about that particular issue, the surge in particular, the war in Iraq -- Heidi?

COLLINS: Yes. Very interesting. And we will be watching closely.

Thanks so much, CNN's Dana Bash from Houston this morning.

Your pocketbook and the next president. CNN's Ali Velshi in President Bush's home state. He's taking a pulse on the economy right here in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: The economy. It's getting a whole lot of mileage on the campaign trail. So what do you think?

CNN senior business correspondent Ali Velshi is listening on the road. Today he is with the CNN Election Express in San Antonio, Texas.

Hey, Ali.

VELSHI: Hello, Heidi. I'm here by the Alamo, which is such a symbol of Texas independence and, you know, the message I've been getting traveling through Texas over the last week is one of independence. About independence, spirit and how Texans feel about the economy, what the government, the candidates, the Fed, what all of them should be doing about it. I've been hearing a lot of things from a lot of people. The beauty about Texas is that everybody's got a story. No one shies away from the camera. Everybody is voting, everybody is interested in the candidates and the election.

I ran into a retired politician yesterday who was telling me about how he feels Barack Obama is playing in Texas and why he thinks there's so much energy in that campaign. Listen to what he told me.

(BEGIN VIDEO CLIP)

JOHN BARNHART, TEXAS RETIREE: Barack Obama maybe is outside the box enough to do some bold, innovative, creative, generous, kindly, generosity, rather than this business of go kill some more.

(END VIDEO CLIP)

VELSHI: And just a flavor of the kind of thing I've been getting and we've been hearing from people. Everybody's got some reason why they're supporting these candidates. Interestingly, the number one concern for everybody around here is the economy and when you filter it down, it does work out to be inflation, energy prices, at least in this part of Texas, that's the area that concerns people, but they are all watching very closely for what these candidate are saying that could help them out in the next year or two.

COLLINS: All right. Yes. Probably isn't all that surprising that everybody seems to be talking about the economy. We're going to be talking about it a lot today, as we continue in the NEWSROOM.

Ali Velshi, thanks so much from San Antonio this morning.

Meanwhile, it was political theater under Saddam Hussein. Today a dramatic change.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): We were forced to do things under Saddam. When I was told to direct for him I pretended to be sick and went to the hospital. Now look at me. I'm a healthy man. I can see the light.

(END VIDEO CLIP)

COLLINS: Revealing a revival on stage, in the NEWSROOM.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: Good morning, everybody. 9:30 Eastern Time now.

Among our top story this hour, the economy high on President Bush's agenda. He huddles with his money team this morning and is likely to get plenty of pocketbook questions next hour.

Our White House correspondent Elaine Quijano is at the White House for us this morning.

So Elaine, what is President Bush going to be concentrating on when addresses the media later?

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, hello to you, Heidi.

Congress is what the president is going to be focusing on really, and urging Congress to take action in four specific areas. First, FISA, the Foreign Intelligence Surveillance Act, and reforming FISA. At issue there, the president is going to be urging Democrats particularly in the House to go ahead and pass a bill on surveillance that has already been passed by the Senate.

Now, the president very much wants to see those phone companies, computer companies, that cooperated with the government post-9/11 legally protected so that there can be no question about them cooperating in the future.

Now, Democrats say, look, if an American feels that their privacy was violated in the days after 9/11 because of the government's spy efforts, then they should have the right to sue the government.

So we can expect the president to hit that point. Iraq, another point the president is going to talk about. And specifically highlighting what the president sees as military progress there. General David Petraeus, the top commander in Iraq, expected to come back to Washington. Now we're hearing perhaps the first week in April, to talk about the military progress. But the president will note how violence is down in some areas and that the troops surge in his view is, in fact, succeeding.

Of course, critics continue to point to the fact that political progress on the ground in Baghdad is not happening at as quick a pace as everyone would like. Also, housing reform. In the midst of all of the stories of mortgage foreclosures, the bad news that continues to come out about the economy.

The president today is going to reiterate to Congress that he is against any kind of bailouts for lenders or people who may have acted financially irresponsibly, if you will, in making some bad financial decisions. Now, Instead, the Bush administration is encouraging the mortgage industry to essentially take voluntary steps to perhaps help ease the burdens on some homeowners. So the president will talk about that.

And finally, Africa. Something called PEPFAR, which is the President Emergency Plan for Aids Relief. The president is fresh off a six-day visit to Africa. The president got to see firsthand, really, the ramifications, impacts that this highly successful aids relief program called PEPFAR has had in saving people's lives.

The president is calling on Congress to approve his request to double the amount of funding for that specific program to $30 billion over the next five years. So, Heidi, those are the topics that we expect the president to cover and many more, of course. But those are the topics he'll talk about in his opening statements.

Heidi?

HEIDI COLLINS, CNN ANCHOR: All right. Boy, it's a lot to cover, that's for sure. We're going to be following it very closely here. We will take his address coming up at 10:05 this morning. Thanks so much, Elaine Quijano outside the White House this morning.

Once again, just a quick remind. We are going to be bringing you President Bush's news conference, live, set for next hour, 10:05 Eastern. Right here in the NEWSROOM.

Quickly to the opening bell this morning, as we look at the Dow Jones Industrial Averages down about 92 points right now. Right out of the gate. Resting at 12,601. Looks like, yesterday, the Dow went up by a whopping 10 points or so by the time the end of the trading day came around. So we're going to watch those stories. Obviously, the economy, very much in the forefront of all of the headlines today. So we got lots to talk about in that department.

Meanwhile, a missile strike, dead on. Pakistan's state media reports eight suspected militants killed and three wounded. The strike hit a house, where the suspects had gathered in South Waziristan. That's the rugged mountainous region of Pakistan near its border with Afghanistan. Intelligence officials believe the area is a safe haven for al Qaeda and Taliban militants. It is not clear who fire the rocket though. Local tribesmen say it cams from an undisclosed location.

Defense Secretary Robert Gates pressuring Turkey to keep its offense in northern Iraq short and targeted. Gates holding talks at Ankara today. He's calling on the NATO ally to balance its need for self-defense with Iraq's sovereignty.

(BEGIN VIDEO CLIP)

ROBERT GATES, DEFENSE SECRETARY: The United States believes that the current operation must be a short and as precisely targeted as possible. The Turkish government should make clear to the Iraqi government and everyone concerned exactly what their intentions are and the limited goals and scope of their operations.

(END VIDEO CLIP)

COLLINS: In response, Turkey's military chief said his troops will only stay in Iraq as long as necessary. The incursion began a week ago. Turkish troops are targeting Kurdish separatist rebels who launched cross-border attacks.

Iraq's national theater. A revival on stage, a revival of careers, and lives. CNN's Kyra Phillips in Baghdad with the story now.

So, Kyra, the theater saw a whole lot of drama under Saddam Hussein is probably an understatement. KYRA PHILLIPS, CNN CORRESPONDENT: Yes, very well put. Now, you lived in New York, Heidi. You know how much you appreciate Broadway. Every time I'm there, I try to see a show. And then back in Atlanta, I love going to the 14th Street Playhouse and I started thinking about all these venues I'd been to. When I went to the Iraqi National Theater, I thought, wow, many times I take these things for granted.

Now, the people of Iraq -- I mean, this a precious gift for them. They have been craving their culture for a few years now.

(BEGIN VIDEOTAPE)

PHILLIPS (voice-over): Remember that guy? We know him as Chemical Ali. Saddam Hussein's weapons of mass destruction guru, holding conference in Iraq's National Theater. That was then. And this is now.

(on camera): So what's the different from the theater during Saddam's era and the theater now?

(voice-over): It's like putting your finger in fire and your finger in water. That's the difference. Theater Director Shafeek Al- Mehdi tells me. We were forced to do things under Saddam. When I was told to direct for him, I pretended to be sick and went to the hospital. Now look at me. I'm a healthy man. I can see the light.

Rawa Al-Nueimi is one of Iraq's rising stars. The daughter and wife of Air Force officers under Saddam's regime, she was forced to leave her home, but not the theater.

(on camera): How does it make you feel to dance, to be on the stage? To perform?

(voice-over): For the first time, I feel like I found my character. I've found myself. And that character matured here at Duke University. Just after the fall of Saddam, Rawa received a modern dance scholarship to the U.S. It changed her life.

(on camera): Do you think all the arts here helped Iraqi's morale?

(voice-over): Of course, Rawa, tells me. The Iraqi people are suffering in every poem, every play, every dance, including each role for each actor is needed to help our morale.

And morale is everything for Rawa right now. You see, her dancing isn't just a profession. It's personal.

(on camera): I know you lost your brother and that was really hard. He was actually supposed to come pick you up from the theater. When you dance now, do you feel his spirit? Do you dance for him?

(voice-over): Of course. I wish he was here to watch every step I take. He wishes me all the success at every level, with my home, children and work. Now Rawa and other performances sell out. You see all ages here. Iraqis have missed this. The arts are bringing back our trust with life says Azmar Raqmed (ph). New life, Shafeek Al-Mehdi, cherishes.

Because I'm an artist, because I'm a professor, I was Saddam's number one enemy.

(on camera): So now you walk in here and there is no enemy. You have complete freedom of expression. How does that feel? You're finally human?

SHAFEEK AL-MEHDI, DIRECTOR, NATIONAL THEATER: Yes. Yes.

(voice-over): Kyra Phillips, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: And, Heidi, what made me appreciate these performers even more, Take a look at this video. This is what it looks like inside the theater, not too long ago. It was bombed by insurgents. It was set on fire, but the artists still came to that theater and practiced and rehearsed with the sandbags and the blocked out window. They didn't want anything to keep them from coming and performing in the Iraqi National Theater.

So I definitely earned a tremendous amount of respect for them as I saw that. Saw what they're doing now and had a chance to sit down and talk with them.

COLLINS: And Kyra, I'm just wondering, did they make the connection, any of these performers and the artists, between what they have now and democracy? Or freedom? Do they talk specifically about that?

PHILLIPS: They do. I mean, not only did I get a chance to talk with the director about that, but also a number of these actors and performers. Because Saddam told them what they could do. The type of dance, the type of music, the type of lyrics.

I mean, it was incredible how they had absolutely no freedom of expression. It was what he wanted. So now, they're trying to study in the states. They are trying to study here in Iraq at Baghdad University, and actually perform and act the way we do in the west with complete freedom of expression. And they're getting a little more inventive and creative and risky.

COLLINS: Yes. Looks like that. All right, really cool piece. Thanks so much. Kyra Phillips coming to us live from Baghdad this morning.

PHILLIPS: Thanks, Heidi.

COLLINS: More severe weather to talk about. CNN's Bonnie Schneider is with us today talking specifically, at least off the top there about the Great Lakes and the Midwest on more snow?

(WEATHER REPORT) COLLINS: Yes, boy. All right, we'll keep our eye on that. Thanks so much Bonnie Schneider. Appreciate it.

Meanwhile, as Bonnie says sticker shock in your shopping cart. Food prices do continue to rise. Is there any relief in sight?

(COMMERCIAL BREAK)

COLLINS: We want to take you to Houston, Texas now where we are watching Senator John McCain before a group of supporters. This is at Rice University. He's accompanied by Jim baker, former secretary of state and one of the heads of the Iraq Study Group. Let's go ahead and listen in for just a moment.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Solar tide. All of the ways of generating power and eliminating and reducing, eventually eliminating green house gases. Suppose that we do that, all we've done is given our children and grandchildren a cleaner planet. But suppose we are right and do nothing. Suppose we are correct, as this the majority of scientific opinions that green house gases are causing significant and severe damage to the climate of our planet, and we do nothing.

Obviously, I think, the way I put the question to you, that the answer is obvious. So we really need to, I believe, make the American people aware of what is at stake here with the nexus of these two, I think compelling issues for the 21st century. And I have -- by the way, nuclear power. Nuclear power has got to be part of any equation that we are if we are really serious about reducing green house gas emissions.

And I would remind you that the French, you know, we always like to imitate the French. The French, 80 percent of their electricity is generated by nuclear power. By the way, in case you missed it, we now have a pro-American president of France, which shows if you live long enough, anything is possible in this world. So we have a nexus of two, I think, compelling challenges.

And anybody that doesn't believe that the United States of America doesn't have the entrepreneurial, technological, innovative base to address this problem does not know America. And I'm convinced that we can develop a battery that will take a car 100 miles. If you've got an automobile in most parts of America, where you can go 100 miles before you have to plug it in, I think Americans are going to buy it. I think the flex fuels with resilience have proven that you can go to E-85. It's not as if we are reinventing the wheel in many respects, but we've got to the do it and a major...

(END VIDEO CLIP)

COLLINS: All right. Just a little flavor there of Senator John McCain addressing students at Rice University in Houston, Texas. We also are expecting a little bit later on to come to that microphone, former secretary of state Jim Baker, as I mentioned, who was there and also head of the Iraq Study Group. Probably, likely, that he will endorse the senator today. If you would like to watch more of this address right now, you can certainly do it, cnn.com/live.

Up, up and away. What's behind skyrocketing food prices? CNN's consumer reporter Greg hunter takes a look.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: To buy things that are on sale, use coupons.

GREG HUNTER, CNN CORRESPONDENT (voice-over): Consumers trying to save money with food prices skyrocketing.

UNIDENTIFIED FEMALE: I used to spend about $100 a week. It's now going up $120, $150.

HUNTER: In just over a year, milk prices have gone up more than 17 percent. Eggs nearly 35 percent, bread, almost 6 percent, and with wheat spiking over $12 a bushel. Garden of Eden Supermarket Manager Juan Larios says bread prices continue to rise. Just how a loaf cost $4 last year.

And where do you think it's going?

JUAN LARIOS, MANAGER, GARDEN OF EDEN SUPERMARKET: It's going to go to $5.49 starting as of next week.

HUNTER: Why? With the dollar near historic lows, it costs more to import the fruits and vegetables people like to eat year-round. Higher fuel prices mean farming and shipping costs more. And with more corn being used to produce ethanol, cattle cost more to feed which means the price of milk is up too.

LARIOS: This just cost $3.49. About a year ago, it was down to $2.99, $2.79.

HUNTER: Food price inflation, suggests more problems for an already-slowing economy.

JOHN WILLIAMS, SHADOWSTATS.COM: People have to drive to work. They have to heat their homes. So they're not going to be cutting back on food and energy. If the food and energy prices go up, the amount of money they have to spend more on optional items declines.

(END VIDEOTAPE)

COLLINS: Southern Israel pummeled by rocket fire. Our reporter, caught in the barrage.

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UNIDENTIFIED REPORTER: Qassam rockets coming in. In fact, right now, there's a red alert for the possibility of an incoming rockets. So I'm going to... UNIDENTIFIED MALE: Red color. No, no, no. You have to go.

UNIDENTIFIED REPORTER: OK. I'm going. OK. So Adrian, it looks like we've got to clear out of here.

(END VIDEO CLIP)

COLLINS: Deadly attacks and counterattacks.

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COLLINS: Israeli air strikes and Hamas rocket fire flying back and forth between the two sides. More than a dozen people dead including children. Our Ben Wedeman is in Israel now with more on the story.

(BEGIN VIDEO CLIP)

BEN WEDEMAN, CNN CORRESPONDENT: It's been a violent 24 hours between Southern Israel and the Gaza Strip. Within that last 24 hours, one Israeli was killed by the Qassam rockets. And in addition to that, at least 15 Palestinians killed in an Israeli counterstrikes including among the dead militants. But also a 6-month-old baby and three boys aged 10, 11, and 14.

Now, just in the space of half an hour, we have seen here five Qassam Rockets landing. No word yet about the number of injuries but it did interrupt the work we were doing.

Today relative to yesterday, it's been much quieter, but we've been, we've heard several Qassam Rockets coming in. In fact, right now, there's a red alert for the possibility of an incoming rocket, so I'm going to...

UNIDENTIFIED MALE: Red color. No, no, no. You have to go.

WEDEMAN: OK. I'm going. OK, so, Adrian, it looks like we've got to clear out here.

And of course, with every rocket that lands in Israel, the pressure on the government to do something, to stop those rocket attacks becomes intense. There are those in the Israeli military, however, who are concerned about the high casualties that would result, not only in Gaza but within the Israeli military if such an operation. Some sort of large ground operation in Gaza was to be launched.

Among their worries is that during the fall of the wall between Gaza and Egypt, militants, Hamas, and others were able to smuggle in much more sophisticated weaponry and large amounts of weaponry that would obviously cause havoc if Israel tried to go into Gaza and conduct that sort of operation. I'm Ben Wedeman, CNN, reporting from Sderot in Southern Israel.

(END VIDEO CLIP) COLLINS: Well, it's your wallet. President Bush is talking about it and the fading economy. His new conference, live, in the NEWSROOM, 10:05 Eastern.

(COMMERCIAL BREAK)

COLLINS: Eating healthy, exercising, not smoking. All important steps you can take in caring for your heart. Here's CNN's medical correspondent Judy Fortin with what you can do into your 30s, 40s and 50s.

(BEGIN VIDEOTAPE)

JEFF SCHAFFER, HEART PATIENT: Not me. I'm not having a heart attack.

JUDY FORTIN, CNN CORRESPONDENT: Jeff Schaffer knows a lot about the heart. But 15 years ago when he began to have chest pains while teaching a CPR class, he didn't listen to his own advice.

SCHAFFER: I just blew it off and said it couldn't happen to me.

FORTIN: At 39, Schaffer was having a heart attack. Even though he was certified EMS worker, he never thought about his own heart. He didn't know his blood pressure or cholesterol rate. He thought he was invincible until his doctor gave him the bad news.

SCHAFFER: My triglyceride level was about 530 and my cholesterol at time of heart attack was 312. Very high.

FORTIN: Like Schaffer, heart specialists say most people in their 30s never think about their heart. But statistics show 5 percent of those having heart attacks are under the age of 40. Cardiologists blame it on stressful live, fast food and smoking.

In your 30s, a dangerous process begins.

DR. MICHAEL MILLER, CARDIOLOGIST, UNIVERSITY OF MARYLAND MEDICAL CENTER: Hardening of the arteries is a slow, drawn out process. Your risk increase is over time.

FORTIN: A good indicator that plaques could be hardening your arteries is high levels of bad cholesterol. So watch your numbers now, like your blood pressure reading. Know the difference between LDLs and HDLs, the bad and good cholesterol and pay attention to triglycerides. Doctors are finding a high triglyceride number is a precursor to poor heart health.

MILLER: If high LDL and high triglycerides who appear to be the highest risk of having a heart attack.

FORTIN: If you smoke, try to quit. A recent study showed smokers age 35 to 39 had five times the risk for heart attack, then non-smokers of the same age. And know your family heart history. If a parent died early from heart disease, start working with your doctor. In your 40s and 50s, it's all about the waistline. As we age, our metabolism naturally slows down. That can lead to weight gain, which can raise blood pressure and stress our circulation system. Increase your exercise. Research shows that even ten minutes a day can improve your cardiovascular fitness.

MILLER: As you get older you have to increase your energy expenditure. That is exercise more or reduce your intake. And the problem, of course, is that as we get older, we tend to be a bit more sedentary.

FORTIN: Today at 54, Schaffer feels better than he did in his 30s. He diets, takes medications and closely watches his number. He knows he's lucky to be alive and he wants to stay that way. Judy Fortin, CNN, Atlanta.

(COMMERCIAL BREAK)

COLLINS: Good morning, everybody. I'm Heidi Collins. Coming up in the CNN NEWSROOM now. Talking about your money. Surging prices, tight credit, and President Bush facing hard questions about the shaking economy.

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