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Obama 'Bitter' Comment Good Medicine for Clinton?; Hearings in Polygamy Case; Historic Visit for Pope
Aired April 14, 2008 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: Hello there, everybody. Glad you could be here.
I'm T.J. Holmes.
BETTY NGUYEN, CNN ANCHOR: Yes, good morning, everybody. I'm Betty Nguyen.
Tony and Heidi, they are off today.
HOLMES: And we've got developments coming into the CNN NEWSROOM on this Monday, the 14th of April.
This is what we have on the rundown.
NGUYEN: A CNN candidates' forum on compassion turns bitter. Barack Obama weighed in this morning. And we hear from Hillary Clinton this hour.
HOLMES: Also, in Texas this morning, the first step in a massive custody battle. Polygamists want their children back, all 416 of them.
NGUYEN: Plus, the White House gears up for Benedict's arrival. The pope and the president -- in the NEWSROOM.
We begin with this, a bitter pill. But will it be poison for Barack Obama or good medicine for Hillary Clinton's campaign? Here's what's at issue. Obama's comments that people dealing with the sour economy become bitter. Clinton calls that elitist, and is hammering Obama hard on it.
Well, could this tip the scales in a critical showdown?
CNN's Dan Lothian is in Philadelphia.
Dan, there's been a lot of tit-for-tat over the word "bitter."
DAN LOTHIAN, CNN CORRESPONDENT: That's right. And "elitist." And we heard Senator Clinton. As you mentioned, she has been saying that it shows he's elitist, that he's out of touch. And now from Senator John McCain, who was in Washington, D.C., just a few minutes ago, where he talked about that as well and pointed out that these comments by Senator Obama were elitist.
So no signs of slowing down on this controversy after remarks that Senator Obama made more than a week ago. But Senator Obama, who himself also was defending those comments this morning in Pittsburgh, he was also talking about other things -- talking to union workers there, steel workers about job creation and about trade.
And he pointed out that, you know, all trade isn't bad, because he said automation is one reason why some jobs are no longer there. You can't blame everything on these trade deals, taking jobs overseas. He said some trade is good for the American worker. But he did point out that he's against NAFTA, that he's against CAFTA, and he wants to find a better way to create a balance.
Now, in addition to the criticism of his opponents and where they might stand on the economy and trade, he also went after President Bush when it comes to trade in China.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: The problem that we've got with China is not that we couldn't work out a deal in which they are benefiting and we are benefiting. The problem is that for all the tough talk of George W. Bush, he is a patsy when it comes to negotiating these agreements. And what we need to do is to just be better bargainers.
(END VIDEO CLIP)
LOTHIAN: So using the strong words there, calling President Bush a "patsy" when it comes to bargaining.
Senator Clinton will be in Pittsburgh as well. Within the hour, in fact. She will be also speaking to union workers there. And we hope to bring that to you live. She will be talking about sort of strengthening our trade laws.
So everybody here -- the two candidates, rather -- really focusing on an issue that's important to voters with a little more than a week before they start heading out to the polls here.
NGUYEN: Well, yes. And we're going to bring you Clinton live when that happens. But I want to get to that video that we showed just a second ago, and that was Senator Clinton bellying up to the bar. She had a beer, then she had a shot of whisky.
And today, Senator Obama didn't let that go. He had something to say about that today. Give us the latest.
LOTHIAN: That's right, he did. He didn't let it go.
He was sort of sarcastic when he -- it was all part of the framework, what he said, that candidates will come and tell you anything, will do anything, in order to essentially get your vote. But will be much different when they're back in Washington. And so it was just another shot at Senator Clinton here, saying that she took along the press with her when she went to drink that beer in a restaurant over the weekend, in Indiana. Again, what I think this shows is this race really has intensified, not only on the controversy, but at every remark. You saw him going after President Bush, and now going after Senator Clinton in this way.
On both sides, a tit-for-tat, how we started this out. It's really intensified. And part of that is because this race is so competitive here. And all sides are really trying to get voters to go their way, and this is one way they're doing it.
NGUYEN: Yes. And it also has a lot to do with the fact that the primary is about a week from now.
LOTHIAN: Right.
NGUYEN: Next Tuesday there in Pennsylvania.
LOTHIAN: That's right.
NGUYEN: So...
LOTHIAN: That's right.
NGUYEN: ... they're really coming out in full force.
Thank you, Dan.
LOTHIAN: OK.
NGUYEN: Presidential candidates, they are on the stump and under the microscope. We'll weigh their words and measure the truth in a CNN reality check. That's coming up in the CNN NEWSROOM.
HOLMES: Well, in Texas this morning, hearings about custody issues involving the 416 children taken from that polygamist compound.
Our Sean Callebs is there in San Angelo, Texas, to tell us about those hearings.
Good morning to you.
SEAN CALLEBS, CNN CORRESPONDENT: Good morning, T.J.
Basically what the court is trying to do is simply get its head around, how do we move forward on a hearing that involves 416 children? Under state law, each of those children must have his or her own attorney. So today, the judge in this case, Barbara Walter (ph), is meeting with basically scores of attorneys who have agreed to come in, handle these cases, volunteer their time.
Now, the judge said, look, if I gave each of you five minutes to speak, it would add up to like 70 hours of testimony. So that is not going to happen. So she took a short break, allowed the attorneys to meet in short groups to try to figure out the best way to move forward on this. Now, at the same time, attorneys from the FLDS -- that is a polygamist religious sect that has the compound about 45 minutes from the town of San Angelo -- the attorneys were in there for the FLDS, and the judge said, you know what? You're not involved in this at all. If you're here to represent the parents, fine. But we don't want to hear from you today. We're trying to figure out how to move forward in the best interest of the children.
So, that's what's going on in the court hearing, which should be restarting any moment now -- T.J.
HOLMES: You said child protective services, we understand, is getting involved in this as well. And also, give our viewers the update. We're actually getting a look inside this compound for the first time, a rare look inside this compound.
CALLEBS: You know, the only way to describe this story is like layers of an onion -- the more you peel back, the more you learn. And this past weekend, reporters from the "Deseret Morning News" were able to work their way into that compound.
They spent some time in there. They talked with the men and women still in that compound. They talked about the concerns they had about their children.
This was what one of the mothers still at that compound had to say about the ongoing legal situation.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: They have my children. No one has told me anything, except for maybe this and maybe that, and it's because of this. But no one has confronted me and said, this is why.
(END VIDEO CLIP)
CALLEBS: Well, the state has been very up front and very blunt about what happened. The authorities went in there, they removed those children, saying they were concerned this was an abuse of environment, concerned about underage children who are married to men, having children at the age of 14, 15, 16, multiple marriages going on as well.
Now, Child Protective Services took the unusual step when they put the children in two shelters here in San Angelo to allow the mothers of those children if they wish to stay with them. That apparently somewhat backfired over the weekend, because these mothers are calling FLDS members who are in Utah, Arizona, Colorado, perhaps even up in Canada, talking about the conditions, saying they're concerned about the well-being of their children, concerned about sanitary conditions.
So, CPS got a court order. They went in and they were taking cell phones away from people who are in these shelters -- T.J.
HOLMES: All right. Sean Callebs, a complicated story. A lot of stuff to work out. We appreciate you this morning.
NGUYEN: It is history in the making. Pope Benedict arrives in Washington tomorrow. President Bush rolling out the red carpet.
Our Brianna Keilar at the White House.
Brianna, what is the White House exactly planning for this historic visit?
BRIANNA KEILAR, CNN CORRESPONDENT: I think the question, Betty, is what aren't they planning?
NGUYEN: Oh, goodness.
KEILAR: Because I've got to tell you, President Bush and the White House, they are pulling out all of the stops for the pope's visit here to Washington. It actually begins tomorrow, when President Bush and First Lady Laura Bush go to Andrews Air Force Base for a ceremony, a greeting ceremony, with Pope Benedict XVI.
And this is something President Bush, he has never done this. Queen Elizabeth came to visit. He didn't do this even for her. So this is a really big deal.
Then on Wednesday there's going to be another ceremony. The pope comes to the south lawn. There's going to be as many as 12,000 people there on the south lawn for this ceremony.
And you're actually looking at video right now of a June 2007 meeting, the first meeting President Bush had with the pope at the Vatican. But again, back to Wednesday at the White House, we're talking all of the stops -- a 21-gun salute, the Marine Band, the Army Chorus, introductions to Vice President Cheney and Secretary of State Condoleezza Rice. And then both President Bush and the pope are going to be addressing that crowd there at the south lawn ahead of an Oval Office meeting -- Betty.
NGUYEN: All right. So, you know, really rolling out the red carpet for the pope. But here's what's interesting. There's a dinner for the pope Wednesday night, but I understand that the pope's not even going to be there.
KEILAR: Yes. That's strange, isn't it? Very strange.
The White House, though, assures us that it's not as if the pope bowed out of dinner or anything. That this was planned knowing that the pope wouldn't be able to attend.
I should mention as well, it's the pope's 81st birthday on Wednesday. But this is going to be a dinner that is held in honor of the pope. A lot of Catholic leaders, there's even going to be Bavarian cuisine served in honor of his German heritage. But again, he is not going to be there. He's actually going to be busy with a prayer service and an address that he's giving to U.S. bishops here in Washington.
NGUYEN: Yes, because he is coming here and he's got a lot on his agenda.
KEILAR: He sure does.
NGUYEN: Thank you, Brianna.
HOLMES: Well, we've got some moderately good news on the economy this morning. We'll take it.
New numbers coming out a short time ago show a short jump in retail sales for March, although most of that was because you paid more for gas last month. Sales at stores at stores like Wal-Mart and Target actually fell .6 percent. So, let's look at what those numbers are doing on Wall Street.
Not too much. Moving right now.
The Dow, as you see there, at 12,323, just down a point right now. Nasdaq down two points -- I believe I just heard that correctly -- as well this morning.
We're also watching what effect Asian markets may have. Right now, again, not having much effect. Those markets took a hit overnight. Japan's Nikkei dropped more than 3 percent.
We're keeping an eye on all the markets and all the news throughout the day.
And rising fuel prices may be among the driving factors in a major airline merger. "The Wall Street Journal" reporting Delta Airlines and Northwest will announce a deal as early as tomorrow.
Here are the stats for you. The combined airlines would keep name Delta, and it would also keep the Atlanta headquarters. The combined company would be the nation's largest carrier.
The hubs aren't expected to change either. Right now Delta has Atlanta, Cincinnati, New York and Salt Lake City. Northwest operates out of Minneapolis, Detroit, Memphis, as well as Tokyo.
It's not yet know how the merger may affect ticket prices. Speculation that the deal could push United Airlines and Continental into a merger, and that would make them the largest carrier.
Keep watching CNN. Of course our money team has you covered. Whether it's job, debt, housing, savings, whatever it is, join us for a special report, "ISSUE #1," the economy, all this week, noon Eastern, only right here on CNN.
NGUYEN: All right. We do have a developing story that we want to bring to you right now. And some really amazing pictures here.
As you see, the smoke just billowing out -- the helicopter flew by. There you go. Billowing out of the top of this building. Let me tell you what that is. That is a six-family apartment building in Dorchester, Boston. And the flames broke out a little bit earlier today.
Here's what we're trying to figure out, if people inside have been trapped because of this fire. I'm looking at some information that's coming across our wires.
We have been told right now that they all may have made it out safely. So that's the good news, because there was some worry six this is a six-family apartment building that some people may have been trapped inside. But we're getting word now that they all may have made it out safely.
Here's another look at that. I mean, just look at the smoke coming through the roof of this building. We don't know exactly how the fire started, but, of course, it's a developing story and we'll continue to brick you the latest just as soon as we get it.
HOLMES: We will keep an eye on that.
(WEATHER REPORT)
NGUYEN: Well, serious moments at an amusement park. Gunshots ring out. And we have that story straight ahead in the NEWSROOM.
(COMMERCIAL BREAK)
(NEWSBREAK)
NGUYEN: Let's get you back to the campaign trail, because presidential candidates say a whole lot of things, and it's always wise to maintain a level of skepticism. That's the mission of the CNN Reality Check. And the latest claim to face the test came just a little bit earlier this morning. You saw it on this show.
Barack Obama questioning the trustworthiness of rival Hillary Clinton. Take a listen.
(BEGIN VIDEO CLIP)
OBAMA: Around election time, candidates, they just can't do enough. They'll promise you anything.
They'll give you a long list of proposals. They'll even come around with TV crews in tow and throw back a shot and a beer. But if those same candidates are taking millions of dollars in contributions from the PACs, and the lobbyists, ask yourself, who are they going to be toasting once the election's over?
(END VIDEO CLIP)
NGUYEN: All right. So you heard him say that these candidates taking PAC money, and he went on to say that he doesn't take PAC money.
JOSH LEVS, CNN CORRESPONDENT: That's right. Or lobbyist.
NGUYEN: Or lobbyist money. So, the question is, is that true?
Our Josh Levs, "Mr. Reality," you have a reality check on this one. Is it true?
LEVS: Do you have a little bit of deja vu? I feel like we've heard this before.
NGUYEN: We have. And we discussed this.
LEVS: Yes. We need to talk about it again.
NGUYEN: But again we saw Obama saying it. Very clearly.
LEVS: Yes. Clearly, he doesn't care what I say about it.
No, I mean, the fact is, this is a campaign staple. We do hear this all the time.
Let me just show you guys this. FactCheck.org has looked into this before, and here is what they say. They say, "Obama is trying to create a distinction without very much of a practical difference. Political Action Committee funds are pooled contributions from a company's individual employees or members."
And they say, "We're not sure how a $5,000 contribution from, say, Chevron's PAC would have more influence on the candidate than the $9,500 Obama has received from Chevron employees."
But as for federal lobbyists, here what they say about it. They say he's really hair-splitting.
They say, "It's true, he doesn't accept contributions from individuals who are registered to lobby the federal government. But he does take money from their spouses and from other individuals at the same firms where the lobbyists work."
NGUYEN: So that's the way to get around it, you take it from their spouses.
LEVS: Well, that's a -- one could view it that way. Look, it's in the end the same money because the spouse has it, and the firm makes money from lobbying. He takes money from the firm.
To be fair, we don't just keep an eye on Obama here. We keep an eye on Clinton, too. And let's take a look at something she often says.
(BEGIN VIDEO CLIP)
SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: We forget that my husband did not win the nomination until June.
(END VIDEO CLIP)
LEVS: That's something she says often, to argue, look, the race is still going. He didn't win until June.
Politifact.org, another one of my favorite sites, they say, "Clinton is right, but that claim lacks context. That makes the two races really an unfair comparison."
They say, "The late March primaries back in '92 for Bill Clinton left him with really a commanding lead. More than twice the delegates of his closest opponent." They say, "There was really little doubt at that point in late March that he was going to become the nominee."
LEVS: So she is in a very different position.
For the latest on all this and all the political news of any day -- of course we've got to toss in this plug here -- go to CNNPolitics.com, filled with Reality Check facts for you. Any time you hear any kind of claim -- and sometimes (ph) you would link over to those sites, too.
(CROSSTALK)
NGUYEN: Well, you know, it's all very important, because we take these speeches, people at home watch it, hear it. They take, you know, these people for their word. But unless you have the perspective and the analysis, then you don't know the truth behind the word.
LEVS: Especially with applause lines. I'll tell you, the effect of an applause line like that makes you feel like it's especially powerful. But, you know, once in a while you really have to step back and say, hey, what are the facts on that? And the truth is, when you look at it really closely, these agencies are saying he's creating more of a difference than they believe really exists.
NGUYEN: All right. Josh Levs, "Mr. Reality," that's how you got that name.
LEVS: I love it. I love it.
NGUYEN: Thank you.
LEVS: Thank you.
HOLMES: Mr. Reality, don't go too far.
LEVS: OK.
HOLMES: Because we are going to Hillary Clinton here now. Probably going to hear some applause lines. She is in Pittsburgh as well with the Alliance for American Manufacturing Forum, speaking at the same podium where Barack Obama -- we heard from him a little while earlier.
Let's listen in to her.
(JOINED IN PROGRESS)
CLINTON: ... making our country what we know it can be. And I think it's time we turned words into action.
You know, as a great Pennsylvanian once said, Ben Franklin, "Well done is better than well said." And that's what you're doing here. And that's what I want to do with you.
We're going to get things done. We're going to take action. We're going to bring people together.
And I want you to hold me accountable. I'm not just going to come here and make a speech. I'm going to tell you what I will do, and then I want you to hold me accountable for doing it.
And I can guarantee that Leo will make sure that happens, because if you hold this meeting again next year, I want to come as your president. And I want you and I to figure out what progress we've made and how much more still lies ahead, because you've had enough speeches. Let's talk solutions.
You know, we may not agree on every single issue, but one thing we agree on completely is you cannot have a strong economy or a strong national defense, and you cannot be a strong nation without a strong manufacturing sector. Now, not everyone shares this view. President Bush and Vice President Cheney have stood by...
HOLMES: Well, it appears, there, folks, we just lost that live signal. Again, that was Senator Clinton there with the Alliance for American Manufacturing Forum in Pittsburgh, Pennsylvania, talking about manufacturing, talking about the economy, some issues certainly important to that group. That forum has been going on today. We saw Barack Obama speak to that same group a short time ago.
We are going to work to get that live signal back up and hope to pick up her comments here shortly. Hopefully we'll get those back up and be able to bring those to you.
NGUYEN: In the meantime, they are calling him a hero. A teenager acts quickly when he sees a vicious dog tear into a young boy. The amazing save, that's still ahead.
(COMMERCIAL BREAK)
HOLMES: Well, there's another forum going on right now. We're trying to get you back to it. We were listening in to Hillary Clinton before the break. She was speaking to the Alliance for American Manufacturing Forum. It's happening in Pittsburgh, Pennsylvania, right now.
Barack Obama spoke at that same event a little earlier this morning. You saw his comments here live in the CNN NEWSROOM.
We were listening to her live and unfortunately something happened to our live signal. We are working to get that back up. When we do, we will dip right back in to her live comments.
NGUYEN: Well, this guy didn't think about his own safety. An Oklahoma teenager instead jumped a fence to pull a little boy away from an attacking dog.
Jeffrey Smith from affiliate KOTV has the story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: I appreciate it. Thank you very much.
JEFFREY SMITH, REPORTER, KOTV (voice over): They barely knew each other before.
UNIDENTIFIED MALE: You look really good, dude.
SMITH: Now they won't forget each other.
UNIDENTIFIED FEMALE: What did you name your puppy dog?
UNIDENTIFIED MALE: Cody.
SMITH: Cody Phillips and little Zack Miller (ph), neighbors joined together by a pit bull attack Saturday afternoon.
SHANNON ASH, CODY'S MOTHER: Both the dogs had the little boy, one on each end, and they were -- had him up in the air just tearing him apart. And I started screaming.
SMITH: Zack (ph) was playing outside when he was pulled through this fence by a pit bull and a Shar Pei.
ASH: I heard a blood-curdling scream. And I went running next door.
SMITH: He was dragged more than 20 yards.
ASH: He was back where the electrical thing is.
SMITH: Then 17-year-old Cody came running out.
CODY PHILLIPS, RESCUED BOY FROM PIT BULL: When I was running towards him, I wasn't scared of the dogs at all. I just didn't have time to think about it.
SMITH: He saw Zack (ph) and jumped the fence.
PHILLIPS: I just had to get him away from the dogs. And so I just picked him up.
UNIDENTIFIED MALE: He's more than a hero, because you hear about dog attacks all the time and nobody gets involved with it.
SMITH: Zack (ph) was brought to president hospital with extensive injuries to his head and his legs.
PHILLIPS: He was telling us that he didn't want to go to the doctor. And he wanted his mommy.
UNIDENTIFIED FEMALE: He was a hero by putting his life at risk and saving my son, because without him, and his quick reaction, my son would not be here today. And that boy deserves all the glory in the world. He's a hero. Definitely an angel from God.
SMITH: Cody admits he's had a tough time with it.
PHILLIPS: I wasn't able to sleep last night. I was having some bad dreams.
SMITH: But with Zack (ph) back at home, he says he'll be able to sleep peacefully tonight.
(END VIDEOTAPE)
NGUYEN: Well, Zack (ph) wound up getting 100 stitches, and he'll need plastic surgery on his ear. One big disappointment -- his birthday party this week will have to be scheduled. But, of course, Cody, he's been invited.
HOLMES: All right, folks. We've got that signal back up for you. Hillary Clinton speaking at a manufacturing forum in Pittsburgh.
CLINTON: We also need to immediately and aggressively crack down on China's unfair trade practices. China should be a trade partner, not a trade master.
I'll start with currency manipulation. It is outrageous that China and other countries continue to manipulate their currencies to put our goods at a disadvantage.
I've already cosponsored legislation to crack down on currency manipulation as president and I will finish the job.
I'm also going to provide real relief for U.S. industries hurt by surges of Chinese imports. I'm talking about the special China safeguard in our trade laws, Section 421, which was a precondition for letting China join the WTO.
The idea behind these safeguards is simple: Protect American manufacturers from being disadvantaged by an influx of Chinese goods into the American markets.
But over the past seven years, every single time the International Trade Commission has recommended that American manufacturers, including the steel industry, get relief, the Bush administration has blocked it.
But when I'm president, when the International Trade Commission makes a legitimate finding that Chinese import surges are hurting our manufacturers, I'm going to provide relief.
As Leo said, I testified on behalf of relief for steel, gosh, back in '01 and '02. I thought we were going to get it because the case was open and shut, as far as I was concerned. But the Bush administration said no.
Well, you're going to have a problem who will say yes and we're going to start getting the results we need.
(APPLAUSE)
We're also going to stand up to China and other non-market countries that subsidize their exports and put our manufacturers at a disadvantage.
It took the Bush administration seven years and more than 3 million lost manufacturing jobs to finally permit U.S. anti-subsidy laws to be applied on imports from China.
But that decision could be revoked at any time. We know we can't rely on the whims of the Bush administration to support U.S. manufacturers.
That's why I'm calling for changing our laws to send China and other non-market economies a simple message: "If you subsidize your exports and hurt our manufacturers, you'll pay the price."
But leveling the playing field...
(APPLAUSE)
... for our manufacturers with smart fair trade is just the beginning. We also need an ambitious new strategy to help American manufacturing grow and thrive.
We've got to export more goods. We've got to create new jobs here in America.
Now, when I talk about solutions, I mean we can have a full, comprehensive approach to doing this.
Number one, we're going to go through the tax code line by line. We're going to get rid of any tax break that promotes or rewards outsourcing.
(APPLAUSE)
No company...
(APPLAUSE)
No company should be allowed to ship your job overseas, using your tax dollars to do it.
So instead, let's support American companies that in-source jobs, that create jobs right here, that look around America and say, "Boy, you know, Pittsburgh and western Pennsylvania are good places to do business."
That's what I've tried to do in New York. I created a program called New Jobs for New York. And I tried to make the case to investors that we have a lot of capacity here in New York that is more skilled, more ready to do the jobs that are needed. But when they look at the tax code and see that they can get a benefit from taking those jobs from Pittsburgh or western Pennsylvania, you know, that's a pretty big push to go ahead and take them out.
So we're going to change that.
We're also going to invest in green energy technologies and vehicles. I think we can create at least 5 million green-collar jobs. Those are jobs that can't be and won't be shipped overseas.
And I commend you on taking the lead with your blue-green alliance. It's time we promoted this work across America. And you have a lot of good ideas. You just need a president to work with you to implement them. And that's what I will do.
(APPLAUSE)
Now, when I say solutions, I'm talking about strengthening defense manufacturing right here in America.
I spent the day, on Saturday, with Evan Bayh in Indiana. We started out at a factory near Indianapolis, Allison, which makes axles and other parts of our heavy-duty military vehicles like tanks. They've been doing it for a long time. They've had to fight the Pentagon against outsourcing defense jobs to other countries.
From there, we went to the plant that makes the Humvees. You know, they kept telling the Pentagon, they could produce more and more. We were losing young men and women because the Humvees weren't armored. And we couldn't get the Pentagon to give them the contracts that they needed to put American workers to work protecting the American military.
And from there we went to a community that, a few years ago, had a company called Magnequench. Magnequench made magnets. And these weren't just any kind of magnets. They weren't the kind you put on your refrigerator doors. These were the kind of magnets that went into our precision-guided missiles, our so-called smart bombs, to guide those missiles to their target.
Well, a Chinese company bought Magnequench. The people of Indiana, the company and the elected officials begged the Bush administration to block the Chinese company from moving the jobs to China. Couldn't do it. So not only did the jobs go to China, but so did the intellectual property and the technological know-how to make those magnets.
And I tell these stories because defense manufacturing has to be looked at from the perspective of how we put Americans to work.
And its also a security issue. I'm not comfortable with the fact that we now have to buy magnet for our bombs from China. And I know darn well that the Chinese know how to make those magnets themselves. And they're building up they're military. They want to compete with us every step of the way. And we're basically helping them. I'm the only candidate with a specific agenda about what to do to combat this. I released it this past weekend.
I would protect the buy-America provisions in our laws affecting special metals and other important work. Crack down on the theft...
(APPLAUSE)
Crack down on the theft of our military technology by China and other countries. Fully analyze our major defense contracts to know exactly how they would affect American jobs.
It makes no sense to me that the Pentagon says that they can't consider the impact on American jobs. You know, good jobs in a strong economy is part of America's national defense and security. And we need to start acting like that again.
(APPLAUSE)
If you want more details about this, please go to my Web site, hillaryclinton.com, and take a look, because I think this is one of the critical issues in this campaign.
And of course when we talk about solutions for manufacturing, we've got to have quality affordable health care for every American because we've got to take it off the negotiation table. We can't continue to bargain over health care.
(APPLAUSE)
I am the only candidate in this campaign who has a truly universal health care plan. No one's left out on my plan. I don't leave it up to the insurance companies to decide whether or not some people are going to get insured.
We're going to insure everybody because we're going to tell the insurance companies they no longer can make life-and-death decisions. They cannot discriminate against people who have been sick or could get sick because that's wrong morally and economically for America.
(APPLAUSE)
And we're also going to tackle the high cost of retiree health benefits. How can we possibly compete when a company like GM pays $1,635 in health care costs per car produced, while Toyota only pays $215?
So what we've got to do is keep faith with our retirees and help these companies be able to pay everything that they are required to pay, but to do it in a way that frees up more money, so that they can compete and win in the global economy.
I'm going to be providing tax credits to help employers cover these costs. This will be a temporary measure to address the needs of the aging and retiring workforce as we transition to universal health care. But it's going to help our manufacturers remain competitive. You know, good plans are critical, but you also have to have the strength and determination to execute them. You've got to look at those of us who are running and say, "Who can I really count on? Who will be there for me? Who really gets it?"
Well, when I started the manufacturing caucus in the Senate, I did so because I saw firsthand how families were torn apart and communities devastated as jobs were lost.
I helped to create new partnerships to try to breathe life into struggling cities and towns in Upstate New York, and bring investors and capital and funds for infrastructure and economic development.
I didn't have any help from the Bush administration, but I think we can take a lot of those ideas and implement them when I'm president.
And when it comes to trade policies, it is going to be required that we have a president who will stand up against China. Well, with me, you know I've already done that.
You know, I went to Beijing and took on the Chinese government over their practices as they affected women and human rights, and I was willing to...
(APPLAUSE)
... confront them right in Beijing. They didn't like it. They blocked out my remarks from being heard. But they know that when I say I'm going to do something, I intend to do it.
I've taken them on on behalf of companies in my state who were being manipulated and disadvantaged by the policies of China. I've fought to stop China from manipulating its currency.
And I'm one of the original sponsors of the Foreign Debt Ceiling Act, which requires the administration to begin reversing the trade deficit.
And I'm standing up to the Chinese today by urging President Bush to sit out the opening ceremonies of the Olympics. It is the least we can ask our president to do.
(APPLAUSE)
Now, people have said, "Well, do you think that would make a difference?" Well, you don't know until you try.
All I know is that the Chinese are abusing human rights, mistreating the Tibetans, failing to help us stop the genocide in Darfur, violating human rights. And I think the president needs to say he will not attend that opening ceremony unless the Chinese begin to take action and change their behavior.
Now, I'm still waiting for my Democratic opponent to give us a clear answer on the Olympics. He says he is of two minds. Well, as a president, you've got to be able to make up your mind and you've got to be able to stick with your decisions. And if you can't stand up to China over an opening ceremony, how are you going to stand up to China when it comes to trade and currency manipulation and stopping them from taking advantage of us?
(LAUGHTER)
Now, I was in Scranton yesterday, and it always brings back a lot of memories for me. My grandfather was a factory worker. He worked in the Scranton lace mills, starting as a young boy and working until he retired at the age of 65.
My memories go back, you know, to how proud my father and his brothers were that, you know, they had a good life because there were good jobs. There were jobs that supported a family. There were jobs that gave, you know, my grandfather, who started work at 11, didn't even finish high school, the chance to send his three sons to college.
Albeit my father, you know, went on a football scholarship to Penn State and would be the first to tell you he wasn't exactly the greatest of students. But it gave him a chance at a whole new set of options in life.
Well, we've got to make sure that we provide that for our children today.
You know, I see Jack Shay there. I was privileged to go meet with Jack and some of his members, sitting around a table before the St. Patrick's Day parade some weeks ago. And, you know, these are people who work hard and they represent so many hard-working Pennsylvanians.
They're not asking for anything special. They're just asking for a fair shake. They're asking for a president who cares about them. They're asking for a president who'll get up every day and go to work for you and for your jobs and your families and your futures.
(APPLAUSE)
And I feel especially strongly about that when it comes to steel.
Some of you may remember when the USS Cole was attacked back in 2000. And it was a horrific attack and we lost sailors. And then that wounded, damaged ship had to be towed away to be fixed.
Shortly after that, I was on the train going back up to New York from Washington. And there were a group of people from U.S. Steel who were there. And I was talking to them, and they told me something which I didn't know, which is that we have lost so much of our steel, as of 2000, that it would be very difficult to repair the hull of that ship using American steel.
I was so taken aback. You know, steel built the defense sector of America. Steel put cars in our garages. Steel gave us great cities like Pittsburgh and so many others. But I don't think we should be looking backwards. I believe we should look forward.
People ask me all the time, you know, the next president's going to inherit so many problems. Well, that's for sure. Following George Bush and Dick Cheney is going to be a daunting task.
(APPLAUSE)
HOLMES: We are listening in at the Alliance for American Manufacturing Forum in Pittsburgh, Pennsylvania. Of course, here we are a week and a day ahead of the Democratic primary there in Pennsylvania.
They also had Barack Obama at the same forum this morning. You heard his comments live on CNN, as well. If you would like to continue watching Senator Clinton, you can go to our Web site, CNN.com/video and continue to watch.
NGUYEN: So what's in store for the economy? Well, new numbers on retail sales are out this morning, and it's a surprising turnabout.
(COMMERCIAL BREAK)
HOLMES: Well, a bunch of old gas guzzlers are causing all kinds of problems. Not gas guzzlers on the road, they're in the sky. Susan Lisovicz at the New York Stock Exchange with all the details for us.
So some old planes, is this what we're talking about?
SUSAN LISOVICZ, CNN CORRESPONDENT: That's exactly what we're talking about, aging airplanes, T.J.
Remember all the problems we had last week with thousands of canceled flights because American Airlines needed to reinspect its planes? It may just be the tip of the iceberg. The reason -- older planes require more maintenance.
"The New York Times" says airlines have put few new planes in recent years. The average domestic plane more than 12 years old at the end of '06, compared to about ten-and-a-half at the end of '02 -- T.J.?
HOLMES: OK. They're causing issues like that, but are these things sucking up gas, and sucking up fuel as well?
LISOVICZ: First, older planes get much more thorough inspections than newer ones, increasing maintenance costs and they burn more jet fuel. So they really weigh on the balance sheets for lots of reasons, T.J.
HOLMES: And you can't necessarily just go out to the plane lot, I guess, and pick out and buy all new planes.
LISOVICZ: That's right, not in these times. It's pretty tough, T.J. It'll be interesting to see the events of last week, if it causes more airlines to consider new purchases. Continental, known to have one of the youngest fleets, the "Times" says it and Northwest are the only two airlines that have orders in for the new Boeing 787, considered a more fuel efficient plane.
But Boeing announced last week that delivery of the first 787s has slipped (ph) to yet again until the third quarter of '09. So, still a ways out there for the dreamliner.
Turning to Wall Street, well financial stocks are grounded. We're used to that. Wachovia reported a surprising first quarter loss on mortgage related debt losses. The bank cut its dividend by nearly half to raise $7 billion in capital and plans to cut jobs. It's shares are down 10 percent.
But, the government's retail sales report a bit better than expected. Anemic growth, much of it due to the higher fuel costs. The Dow right now is down 12 points, Nasdaq is down eight-and-a-half.
T.J. and Betty, back to you.
HOLMES: All right. So far, so good. Not so bad today.
Susan, we appreciate you. We'll see you again here soon.
LISOVICZ: Your welcome.
NGUYEN: Well the Olympic torch relay has reached the Middle East this morning. And the flame -- arriving in Oman just a few hours ago. It's the ninth stop on the sometimes troubled torch tour.
Before Oman the torch was carried through the streets of Dar Es Salaam in Tanzania. Hundreds lined the route to watch the torch go by. There were no major protests to speak of, although 2004 Nobel Peace Prize winner pulled out as a torch bearer to protest China's human rights record.
Interesting twist, though, for Wednesday's stop on the torch tour, in Islamabad, Pakistan. Spokespeople telling CNN the event will be closed to the public. Security concerns taking the torch tour off the streets and instead, the flame will be carried inside a stadium in front of invited guests.
HOLMES: Well, they are married and they are in the military. But hey, no making out on the battlefield.
(BEGIN VIDEO CLIP)
JILL DOUGHERTY, CNN CORRESPONDENT (on-camera): Do you ever hug each other or kiss each other in public?
CAPT. BRIAN HEGENBART, U.S. ARMY: No, ma'am.
CAPT. JESSICA HEGENBART, U.S. ARMY: We can't.
B. HEGENBART: It's hard sometimes. It can wait until we get back to the room.
(END VIDEO CLIP)
HOLMES: Back to the room, yes. There they are, back in the room -- and our cameras being awfully intrusive. A couple at war. Stay here.
(COMMERCIAL BREAK)
HOLMES: Graffiti threats have led to classes be being canceled today at Oakland University. The graffiti was found in three men's restrooms on the Rochester, Michigan campus over the weekend. Campus police aren't being specific about the threats, except to say they didn't seem to target any specific person and were apparently written by the same person.
School events were canceled yesterday, as well. Dorms are open and classes are scheduled to resume tomorrow morning.
NGUYEN: Well there are troop cuts in Iraq to tell you about, but it's not what you think. Iraq's government has booted 1,300 Iraqi police and soldiers who didn't do their jobs. A government spokesman says the men deserted, refused to fight, or neglected their duties during last month's crackdown in Basra and other Shiite areas.
When home, sweet home, is based in Iraq. CNN's Jill Dougherty introduces us to a married couple living in the war zone.
(BEGIN VIDEOTAPE)
DOUGHERTY (voice-over): Romance on a military base in Baghdad?
B. HEGENBART: Couple hours...
DOUGHERTY: Well, not exactly. The electricity is out again.
B. HEGENBART: Well, (INAUDIBLE)
DOUGHERTY: But these two officers are in love. Jessica and Brian Hegenbart, married for over three years, deployed together twice. Under traditional Army rules, they wouldn't be allowed to live together. But under a policy quietly introduced in 2006, they can if the housing's available.
(on-camera): Do you think there's an amount of jealousy at all among people?
B. HEGENBART: Definitely.
DOUGHERTY: Because then...
B. HEGENBART: Maybe not true jealousy, but in a jokingly manner, I get it all the time from the guys. If I complain about something, they're like, yes, whatever, your wife's here.
DOUGHERTY: By allowing married couples to live together, the Army is trying to make long deployments of up to 15 months bearable. The idea is, the couples will stick together and stick with the military.
J. HEGENBART: This is our kitchen area over here. So we have a microwave and refrigerator.
DOUGHERTY (voice-over): The Hegenbart's cramped trailer is standard issue -- 8 feet wide, 15 feet long, with some of the comforts of home. Computer, air conditioning, stuffed animals.
But the mission of these two Black Hawk pilots is deadly serious. Brian flies infantry troops on air assault missions. Jessica transports military personnel.
J. HEGENBART: I don't usually worry unless it's -- he's getting to the point where he should be home, and it's going on a couple hours. I feel like he should have been home by now. So, I try not to think about it otherwise.
B. HEGENBART: So I normally call her right when I get right back -- I'll get back in the office and I'll pick up the phone and call her office just to let her know I'm back so she doesn't have to worry.
DOUGHERTY: The Hegenbarts say having time together in the middle of the war zone is priceless. But Army rules still apply -- no public displays of affection.
(on-camera): Do you ever, you know, hug each other or kiss each other in public?
B. HEGENBART: No, ma'am.
J. HEGENBART: We can't.
B. HEGENBART: It's hard sometimes. It can wait until we get back to the room.
DOUGHERTY (voice-over): Tomorrow, the mission begins at day break. Lights out.
Jill Dougherty, CNN, Baghdad.
(END VIDEOTAPE)
HOLMES: Well, we've got a new champion to tell you about at the Masters. Pretty much an unknown from South Africa -- beat Tiger, and the rest of the field.
Trevor Immelman tapped in for the win. There he is. It's his first major title, and for that he gets a green jacket. Don't worry, that's not all he gets folks. He gets $1.3 million for it as well. Four months ago -- check this out -- Immelman was in a hospital in South Africa where doctors removed a tumor from his diaphragm, so of course you're wondering -- what happened to Tiger Woods?
He actually made a push, but he ended up finishing in second place, and that's the second year in a row he has done that.
NGUYEN: Well, congratulations to Immelman.
CNN NEWSROOM continues in one hour from now.
I'm Betty Nguyen.
HOLMES: And I'm T.J. Holmes. "ISSUE #1" with news on the economy begins right after we give you a check of the headlines.
We will start in Texas today. A hearing about custody issues involving those 416 children taken from that polygamist compound. Meanwhile, some sect mothers are asking the governor for help. The "A.P." reporting the mothers sent the letter to the governor there, Rick Perry, asking him to check on their children. The mothers say some children have gotten sick while in state custody and that some children were taken while the mothers were not at the ranch.
Also a huge welcome in store for Pope Benedict when he arrives on Tuesday for his first visit to the U.S. President Bush will meet the Pope at Andrews Air Force base. On Wednesday, the President and First Lady will welcome Pope Benedict to the White House. You can follow every single papal step right here in the CNN NEWSROOM.
Also, graffiti threats have led to canceled classes at Oakland University. The graffiti was found in three men's restrooms on the Rochester, Michigan campus over the weekend. Campus police are not being very specific about the threats, but they do say the threats don't seem to target any specific individual and they were apparently written by one person.
School events were canceled yesterday, as well. Dorms are opened. Classes scheduled to resume tomorrow morning.
We've got more news coming your way at the bottom of the hour.
Now, though, "ISSUE #1" with CNN's money team, Ali Velshi and Gerri Willis.
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