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Former Clinton Backer Makes Switch; Raging Battles in Baghdad; Big Oil Making Huge Money; Immigration Policies Fuel Rallies and Marches
Aired May 01, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Cross off one superdelegate from the Clinton column and add him to the Obama tally. A former Clinton backer makes the switch this hour. Dan Lothian with the "Election Express" in Indianapolis.
And so, Dan, Joe Andrew just moments ago said it was a difficult decision but then again, not really.
DAN LOTHIAN, CNN BOSTON BUREAU CHIEF: That's right. What he did point out as he was talking to Tony a few minutes ago is that this really isn't a criticism of Senator Clinton but he just felt that Senator Barack Obama was the right candidate at the right time, the right person for change in America.
What's interesting is that he was appointed to the DNC chairman of the Democratic National Committee by then president Bill Clinton. He served from 1999 until 2001. And as you mentioned, he was a Clinton superdelegate but would be officially making that switch within the hour here in Indianapolis.
And again, saying that -- really this whole Democratic process has been protracted and he believes that it could be harmful to the Democratic party and he felt that this was the right time to make the switch. This just really sort of points out the kind of battle that has been going between the Democrats, but Senator Barack Obama has been answering questions about whether or not this could be harmful to the Democratic party and he says that in the end he feels that they will come together.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I have real differences with Senator Clinton. We are having -- we are having a vigorous debate. But we -- our differences pale in comparison, the differences we have with John McCain. And this party will be unified in November to make sure that we are taking the country in an entirely new force. We will be unified in that mission.
(END VIDEO CLIP)
LOTHIAN: No comment yet from the Clinton campaign to that superdelegate switch. Now Senator Clinton really has been focusing on the issues and she has been again hammering away at the fact that she is the candidate with the experience. She is the one who has that proven track record and is the one who can get the job done on day one.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: What I hope you will be thinking about as we move towards this important primary next Tuesday, is what you think is really the job of the next president. Because I don't think it is giving speeches. I think it is solving problems. I think it is having the experience, the strength, the know-how, to be able go into that Oval Office on that very first day, January 20th, 2009, knowing what we will find waiting there.
(END VIDEO CLIP)
LOTHIAN: Both Democratic candidates will be campaigning here in Indiana today. And Fredricka, what's interesting is that while they both are still having town hall meetings, those larger venues, they are also doing a lot more one on one time. We saw Senator Clinton yesterday meeting with some families and commuting to work with a sheet metal worker.
We saw Senator Barack Obama meeting with a working class family. Senator Clinton will be meeting again with another family today. They are trying to do that sort of personal connection with those working class families that very people who could be critical in the upcoming primary. Fredricka.
WHITFIELD: And so Dan, you know, Joe Andrew trying to put it quite simply saying it is about inspiration as well. He liked the way Senator Obama has handled the Reverend Wright situation. He like the way he handled the issue of the gas tax. And so you have to wonder, on the Clinton camp side, what does this mean when you have defectors if you will, if can I use that term, those who once supported the Clintons, Joe Andrew being one, Governor Bill Richardson being another, who are now backing Obama.
LOTHIAN: Well, clearly there will be some disappointment. As I have mentioned, we have not gotten any official reaction from them yet. But clearly, there will be some disappointment. The Clinton campaign did express disappointment in the past when the superdelegates switched over. But as you mentioned, in fact, Andrew's, the reason that he -- Andrew wanted to make that switch is because he felt that Senator Barack Obama had done a good job of handling some of these controversies.
And as you pointed out, you know, he thought that the Wright controversy -- how he has been able to handle that this week, how he has been able to handle the gas tax holiday opposition. So that's the reason he has been making -- made the switch. He also pointed out that in making the switch, he is hoping others will follow as well. That's something that the Clinton campaign would not be smiling about.
WHITFIELD: Right, exactly. All right. Dan Lothian, thank you so much -- Tony.
HARRIS: Republican John McCain pushing his prescription for health care reform in Ohio. This hour, McCain holds a town hall meeting on the campus of the Cleveland Clinic on CNN's "AMERICAN MORNING." He said tax credits to help pay for health insurance will give consumers more options.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I want to give the people a choice as to whether they want to keep their employer plan, funded plan, or go out with their $5,000 tax credit and go across state lines and around this country and get the insurance policy of their choice, whichever they want to. It's based on choice.
I'm looking for a substantial reduction in price with the other reforms that we are going to have to put into place like outcome based treatment, cash and counseling, like kind of increasing community health centers, like walk-in clinics. A whole bunch of measures. But, of course, when you have choice in competition, which we do not today in many respects and transparency, then, obviously, you are going to reduce cost.
(END VIDEO CLIP)
HARRIS: And later today, McCain attends the health care forum in Des Moines, Iowa. Find more on the candidates at cnnpolitics.com. Cnnpolitics.com is your source for everything political.
WHITFIELD: Floodwaters falling in Maine. The St. John River appears to be going down. It crested a record 30 feet overnight in Ft. Kent. That's about five feet above flood stage. Flooding still widespread on both sides of the Canadian border. More than 100 homes are actually flooded. And hundreds of people actually had to flee.
But the river never spilled over a major levee. Sparing the downtown area and the international bridge held up despite fears that raging waters just might drag it down. Because those waters are fierce. People don't realize the power, you know, of water, whether it is flash floods or flooding like that, the potential for destruction.
HARRIS: And the story is in Maine today. But I got to tell you something. Stuff brewing in the Midwest as well. And you were talking about flooding. That section of the country has just been inundated over the last, it seems like two months -- Reynolds.
REYNOLDS WOLF, CNN METEOROLOGIST: Yes, I know, guys. It's like a giant bull's eye right in the middle of the country. That's going to be the situation today. Take look at this. You got this area of low pressure. We have a chance of severe storms today. Mainly across places like Arkansas, back into, say, Missouri, even into the corn belt of Iowa and back into Nebraska, and parts of the Dakotas. One place that should be getting at least some of the windy conditions would be Oklahoma City.
Now, we've got a live shot for you out of Oklahoma City. Here it is. Skies of mixed shine and clouds. And I will tell you what. Not a whole lot in terms of storms there. Just a lot of actually fairly strong winds coming out of the southwest today. It is really going to continue to dry things out in parts of Oklahoma and Texas and even into parts of the four corners and we will be talking more on that in just a few moments.
There's something else that we're going to be seeing today will be that potential for seeing some fires and we also have a live shot for you in parts of New Mexico. I believe we got that for you coming up in moments. Here it is. Take a look at this shot. This is compliments of KOAT and this is actually parts of the Monsano (ph) Mountain Range, just due east of Las Lunas, just to the southeast of Albuquerque. And you got a big mess there. You got really dry foliage at the time. You got the flames that are spreading. You got the strong wind gusts, some gusts topping 40 to 50 miles per hour. It's certainly a mess there.
And farther to the north, we are talking about something entirely different, some heavy snowfall in parts of Rapid City, back into Casper, Wyoming where in some locations, the highest elevation to the northern Rockies could see one to three feet of snowfall. But in the central Rockies along parts of i-70, anywhere from 8 to 16 inches of snow through tomorrow morning.
That's your forecast. Let's send it back to you.
HARRIS: A lot there.
WHITFIELD: Eight to 16 inches of snow?
HARRIS: Yes.
WOLF: May 1st.
WHITFIELD: That's a lot of fluffy stuff. All right.
HARRIS: Thanks, Reynolds.
WHITFIELD: Gasoline. No surprise, it is up again. AAA reporting increases today under a penny. A record average of $3.62 for a gallon of regular now. Almost $3.99 for premium. And this really hurts, diesel, $4.25. Oil is trading a bit over $113 a barrel. It is the lowest point in more than two weeks. But analysts say that it could be months before we see a pullback at the pumps. So, gas not the only item burning through your wallet.
Check out these food prices. A loaf of white bread up an average of 16 percent from last year. The Labor Department this morning reporting the average cost 1.35 a loaf. Eggs, 2.20 a dozen. Milk, $3.78 a gallon. Your lawmakers, well, they are taking notice. A joint economic committee hearing is under way right now in Washington.
HARRIS: I wonder if the candidates can answer that question. What's the average price for a loaf of bread? I wonder. Just a question. Higher costs. More spending.
WHITFIELD: We've seen what happened when that question has been asked to the a candidate before. HARRIS: And problematic.
WHITFIELD: And it wasn't good.
HARRIS: Government numbers out this morning showing inflation taking a bite out of your budget. Consumer spending up 0.4 percent in March. The high cost of food and gas behind a lot of that. Personal income rose 0.3 percent. But more people are looking for work. The Labor Department reports 35,000 more unemployment claims. Prices are climbing. It seems your paycheck is shrinking. How to take some of the bite out of inflation coming up.
WHITFIELD: Immigration, an issue packed with emotion and changing the face of America. Today, the high stakes of immigration policy fuel rallies and marches in this year of presidential politics. Thousands of our neighbors will pour into the streets for the third annual immigration day, from New York to Los Angeles, from the National Mall to maybe your neighborhood. The protesters will demand changes in immigration laws. Some are calling for more open policy. Others want a crackdown on those here illegally.
HARRIS: Enforcing immigration laws that are already on the books, it is a massive undertaking that carries high stakes in a number of ways. There she is.
CNN Homeland Security Correspondent Jeanne Meserve talking to the man in charge of that mission. What did he have to say to you, Jeanne?
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, we talked about fencing for one thing. The Department of Homeland Security says by the end of the year, it will have built 670 miles of fence along the U.S.-Mexican border to expedite the building of more fencing along California, Arizona, New Mexico and Texas borders. The Secretary of Homeland Security exactly one month ago announced he will waive certain environmental protection laws.
Environmental groups are enraged saying the fence will harm wildlife and they are asking the Supreme Court to review the waiver. But in an exclusive interview with CNN, Secretary Michael Chertoff fired back.
(BEGIN VIDEO CLIP)
MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: They want us to keep the borders safe but they are not pursuing the traffickers and smugglers and getting injunctions against them crossing into the area, smuggling dope, smuggling contraband, smuggling human beings, leaving their gasoline cans and their barbecue, their waste along there.
So, I've to look at the whole picture. We have do what we can make it hard to smuggle into this country, including smuggling drugs as well as people. We've got to give the border patrol the tools they need to responders.
(END VIDEO CLIP) MESERVE: The department argues that the fence already is having an impact contributing to what it says is a slowing of the flow of illegal immigrants.
Tony, back to you.
HARRIS: CNN's Jeanne Meserve for us this morning. Jeanne, appreciate it. Thank you.
MESERVE: You bet.
WHITFIELD: Well, it is a hot topic. So, why aren't the candidates talking about it? And where do they stand? Politics and immigration reform.
(COMMERCIAL BREAK)
HARRIS: And good morning again, everyone. You are in the CNN NEWSROOM. I'm Tony Harris.
No tourists allowed. A famous Hawaiian landmark locked up. Not by the state but by people who want to take back the state.
(COMMERCIAL BREAK)
WHITFIELD: It is a hot political issue. The candidates are not saying much about lately. Immigration reform, protesters take to the streets today to demand changes and we take a look at where the candidates stand right now. Politico columnist and contributor, Gebe Martinez, is with us from Washington. Good to see you, Gebe.
GEBE MARTINEZ, POLITICO COLUMNIST: Nice to be here.
WHITFIELD: All right. So why is it that the candidates are no longer talking about it extensively?
MARTINEZ: Because it is a hot issue. On the Democratic side, you have two candidates who virtually agree on the bill that they would like to see passed. And the Democratic constituency knows where they stand. So, they are not pressing them on it. And on the Republican side it is an issue that John McCain would rather not talk about. Because he has had to go through so many movements on that issue during his primary campaign just to satisfy his constituency in the Republican party.
WHITFIELD: You would almost think of all the candidates to talk about it, it would be John McCain because he is from a state with the fourth largest Hispanic electorate, Arizona. And he has been said in the past that immigration or at least border control is top priority for him and has been a long time.
MARTINEZ: Right. And it is interesting to see what he is doing between now and the general election. It seems like he's trying to move back to the John McCain who is a different kind of candidate from the other Republicans. And he is starting to stand up for his views. His campaign told me recently that the John McCain that we see on the trail to November is going to be the Senator McCain who is for comprehensive immigration reform. That is a bill that not only includes border enforcement but also tougher employer sanctions and guest worker program and doing something about the 12 million illegal immigrants around the country now.
So, McCain himself has to decide to what extent he's going to be wanting to talk about it. That is going to be a split with his Republican party base. The party wants to use immigration as a wedge issue in the down ballot races, and the races for the House and Senate seats that are up. And McCain doesn't have control over his party when it comes to those kind of issues. You know, so what -- Democrats and immigration reformers are saying is you know, we understand what McCain wants and what he says. But that's not what his party is going to do in the November campaign.
WHITFIELD: Well, traditionally Republicans do well in - you know, as it pertains to the Hispanic vote in the presidential race. Is McCain teetering on whether he can clinch the Latino vote like perhaps his predecessors?
MARTINEZ: Well, his predecessor, George W. Bush, did an excellent job of getting the Latino vote. I mean, he, you know, broke records when he got over 40 percent in the last election. You know, John McCain support among Latinos before he ran for president was very high. In his own home state, he won the Hispanic vote by 76 percent in the last election.
WHITFIELD: It would have to be continuing, you know, his work.
MARTINEZ: And yes, again, -- his work. Because of his work on comprehensive immigration bill. They adore him. Again, the problem and he does have potential to get the Hispanic vote this year. The problem is that the Republican party that he's leading, he's the standard bearer for the party that is ...
WHITFIELD: Well, I'm just rushing you because I do -- in fairness get to the Democrats as well. And when you talk about adoration among the Hispanics Hillary Clinton has it. I mean, she has done really well in the primaries and the caucuses in the Latino community. But where does she stand on immigration reform? We heard her say a little bit about her position when it came down to driver's licenses for illegals but where is she?
MARTINEZ: Well, after -- remember, she had a misstep in one of the debates in October over driver's licenses. She's now against it because her position is that if you do comprehensive immigration reform legislation, that takes care of the driver's license issue. Then you don't have a separate driver's license law.
Barack Obama supported the driver's license issue. While he was campaigning in California by the way, because California has large immigration community. So, you know, both of them are basically saying that they support a comprehensive bill. She says that she would introduce the bill as soon as she gets into the White House. He has promised to get a bill passed immediately and of course, the Clinton campaign says that's impossible because the bill is so complex, you can't really do it.
You know, one of the things that you mentioned about her getting so much support of Latinos, it is widely believed among Hispanic supporters on both sides of those campaigns that whoever wins the nomination will get a strong Latino support. Because they have this broader need to elect a Democrat because of the immigration issue and other issues. Education and health care, other things that they care about.
WHITFIELD: OK.
MARTINEZ: You know, she might have problems getting the African- American vote from Obama. But he won't have as many problems getting the Hispanic vote from her.
WHITFIELD: Interesting. Gebe Martinez of politico.com, thank you so much.
MARTINEZ: Thank you.
WHITFIELD: And of course, if you would like to watch any of the immigration rallies or speeches across the country today, just go to cnn.com/live. We'll be streaming them live all day.
HARRIS: Missile strike in Somalia. The U.S. takes aim at the Islamist militia leader, Adan Hashi Ayrow. American officials say he has close ties to Al Qaeda. His group, Al Shabab is considered a terrorist organization by the Bush administration. U.S. officials are still assessing whether Ayrow was killed in the strike. A spokesman for his group says Ayrow was among those killed. Local sources tell CNN at least 30 people died.
WHITFIELD: Well, prices are climbing. That you know. It seems your paycheck is shrinking, doesn't? Well, how to take some of the bite out of inflation.
(COMMERCIAL BREAK)
HARRIS: What do you say we take you to Cleveland, Ohio? Michael, do we have live pictures of Senator McCain? There he is, holding a town hall meeting at the Cleveland Clinic Complex. What a complex that is at Euclid Avenue in Cleveland, Ohio. John McCain pushing his thoughts, his ideas for health care reform. Once again, John McCain live. Maybe we will check in a bit later with John McCain in the NEWSROOM. If you would like to watch it right now, stay with it, cnn.com/live.
WHITFIELD: In the meantime, let's check your money and the market. The Dow up 38 points. Nasdaq is in the positive range as well, up about 24 points at last check. Perhaps a positive reaction to yesterday's drop in the prime interest rate and perhaps some reaction to a decrease in the oil prices as well. We will continue to watch the market and Susan Lisovicz, we will be checking in with her momentarily as well. HARRIS: All right. Record high gas prices and the surging cost of food just a beginning. CNN's personal finance editor, where is she, where is she?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey.
HARRIS: Gerri Willis is here to tell us all about inflation. It's impact on you and how you can protect your money. You know what? Why don't we start, Gerri, with a little inflation 101?
WILLIS: I love that. You know why, because you lose track. To put very simply, inflation is when you pay more for the things you buy. And you know you are getting hit with inflation when you drive, when you go shopping. Let's take a look at the prices you have seen over the past year. Over the past 12 months, flour, up 37 percent. Eggs, up 35 percent. Milk is up 23 percent. You get the trend line going here.
Now remember, there will always be some inflation in the economy. The historic rate is about 3.2 percent. We are above that right now. To find out exactly how much you are paying, check out the Bureau of Labor Statistics. They have a Web site, a little calculator. Bls.gov. And just contact setting here, Tony.
Don't forget in the '70s and '80s inflation was in double digits. Think about that double digits.
HARRIS: I'm not old enough to remember. I was a mere tot then.
WILLIS: A mere tot. You know, teething ring no doubt.
HARRIS: That's right. And Gerri, we are focusing and talking about -- watch it, Fred. We are focusing on, you know, food and goods prices, rightfully so. But there are other areas where inflation is a real factor.
WILLIS: That's right. You know, inflation hits just about anything you can think of. Your telephone bill, your utility bill, clothes, shoes, the cost of energy, gas, electricity is going up and it causes a domino effect. It's an input into all other prices. Companies are paying more to ship their goods, to stores and the cost of raw materials also rising. That cost is passed along to you. And even your medical costs, even medical costs are increasing because of inflation.
HARRIS: I'm just curious, is there any way we can protect ourselves as consumers?
WILLIS: Well, think about your nest egg. This isn't your first thought but you get hit here. You may think your retirement is insulated. But keep in mind, every dollar you save loses value over time. During times of inflation, so you need more money to retire. Stocks tend to do better than bonds in times of inflation. So, even if you are already retired it makes sense to keep some of your portfolio in stocks. If you are approaching retirement and you want more bonds in your portfolio, you may think about investing in what they call T.I.P.S.. These are treasury inflation protected securities. The principal and interest payments of T.I.P.S. increases with inflation. You can buy T.I.P.S. at a bank or you just go to the or avail go to the Treasury Department's Web site, at treasurydirect.gov, use a credit card. Or even also buy mutual funds that invest in T.I.P.S. So, some options out there, because you know, your 401K, your retirement savings, they're going to get hit here.
HARRIS: I just hope folks, you know, I do, but I hope folks sort of catalog these tips. This is just great information. Really, I'm telling the truth here. I catalog these tips. It's great advice.
I also watch "OPEN HOUSE." Give me a preview. How was that? Was that OK?
WILLIS: Great stuff. You will definitely want to catalog this. "OPEN HOUSE" this weekend at 9:30 a.m., Saturday, right here on CNN. America's health care. Saving at the pump. We're going to show you how to save money at the pump. Travel dollars, you're going to have to stretch them this year because you know those airline tickets are going up, up, up.
HARRIS: Oh, yes. I'm telling you, I'm oiling the chain on the bicycle.
WILLIS: I want a picture of you on a bicycle. Come on.
HARRIS: Gerri, good to see you. See you at noon for "ISSUE #1."
WILLIS: That's right. Join us at noon.
HARRIS: OK.
Once again, coming up at the bottom of the hour, welcome back, everyone, into the CNN NEWSROOM. I'm Tony Harris.
WHITFIELD: And I'm Fredricka Whitfield.
We're following a breaking story out of northern Kentucky. One person is dead in a school bus accident. The bus collided with a dump truck around 7:00 Eastern. Local reports say ten students and the driver of the bus and truck were taken to a hospital. The hospital spokesperson says all of the injuries appear to be minor. We'll continue to follow this story and bring you updates as we get them.
HARRIS: Investigating possible sexual abuse of young boys taken from a polygamist ranch in Texas. You are certainly familiar with the story at this point.
Child Protective Services says its suspicions are based on interviews with the children and journal entries found at the site. Authorities also want to know how 41 children apparently -- they got broken or fractured bones at the compound. More than 460 children were removed early last month from the Yearning for Zion ranch. The group is accused of encouraging young girls to marry older men and have children. A spokesman for the group says Texas officials unethically leaked information without legitimate evidence.
WHITFIELD: Americans rebuilding Iraq. Will a windfall in oil revenue free some of your tax dollars?
(COMMERCIAL BREAK)
HARRIS: Hard times on both sides of the U.S./Mexican border.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I've seen the recession back in the '90s, but this is worse as far as I can tell. This is really bad.
(END VIDEO CLIP)
HARRIS: How the U.S. economic slowdown is hitting Mexico. That is coming up in about three minutes.
WHITFIELD: Ranging battles in Baghdad. U.S. forces report killing 18 fighters in the past 24 hours. All in the heavily popular Shiite neighborhood of Sadr City.
Militants there have been fighting U.S. and Iraqi troops for weeks. More than 900 civilians and militants have died in the battle since late March. U.S. military officials say troops are taking all precautions to avoid civilian casualties. The officials say elsewhere in the country American soldiers killed six people in raids targeting al Qaeda in Iraq.
Well, it's been five years since President Bush declared victory in what he called the Battle of Iraq.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: My fellow Americans, major combat operations in Iraq have ended in the Battle of Iraq, the United States and our allies have prevailed.
(END VIDEO CLIP)
WHITFIELD: The White House says President Bush has paid the price for the mission accomplished banner that was flown overhead. It became a symbol of U.S. misjudgment and mistakes in the Iraq war. The president's press secretary said the banner was intended to celebrate the mission of the U.S. navy ship. Not the overall war effort.
HARRIS: Gushing oil revenue for Iraq. So why is the U.S. still paying for Iraq's reconstruction?
Here's CNN's Brian Todd.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): The Iraqi government is still so corrupt, that the U.S. inspector general for reconstruction calls it a second insurgency. Now that government is flush with cash, thanks to skyrocketing oil prices. How flush?
STUART BOWEN, INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION: Iraq could reach $70 billion in oil income this year, which is twice what they anticipated.
TODD: The eye-popping figure is part of Inspector General Stuart Bowen's latest report to Congress on Iraqi reconstruction. We asked Bowen, how will Iraqis spend the money?
BOWEN: On more relief and reconstruction projects. But the challenge in the Iraqi government is executing their budget. Last year, it was only able to execute about 50 percent of its ministry capital budgets and 30 percent of its local capital budgets.
TODD: Bowen says that's because of inefficiency and complicated contract laws. The U.S. government has spent $31 billion so far on Iraq's reconstruction. And even before the latest numbers on Iraq's oil profits came out, members of Congress were steaming about the inequity for Americans getting socked at the pumps.
SEN. CARL LEVIN (D-MI), ARMED SERVICES COMMITTEE CHAIRMAN: It is unconscionable that American taxpayers, paying a fortune for gasoline, some of which comes from Iraq, building up a huge surplus for Iraq, which the Iraqis are not spending, that the American taxpayers continue to spend billions of dollars on the reconstruction of Iraq.
TODD: Outrage that has built almost from the outset of the war, when U.S. officials made bold predictions about Iraqi oil revenues.
PAUL WOLFOWITZ, FORMER ASSISTANT DEFENSE SECRETARY: We're dealing with a country that can really finance its own reconstruction and relatively soon.
TODD: Five years later, now that the Iraqi government could start to do more of that, we asked Iraq's ambassador to the U.S. about the charges of corruption and inefficiency.
SAMIR SUMAIDAIE, IRAQI AMBASSADOR TO THE U.S.: These concerns are real and we understand them. We are addressing them. Remember, we have inherited a situation which was not our own making. These are decades of misrule -- decades of a culture of corruption.
TODD (on camera): The ambassador and the U.S. inspector general say Americans should actually be pleased about Iraq's new oil revenue because it means the Iraqi government will be far less dependent on American money for reconstruction.
The Inspector General says in fact some U.S. funding has just been trimmed for reconstruction projects.
Brian Todd, CNN, Washington. (END VIDEOTAPE)
HARRIS: Let's get you to one of my favorite towns. Cleveland, Ohio, right now. And John McCain pushing his prescription for health care reform. He is taking questions at a town hall meeting at the Cleveland clinic.
(JOINED IN PROGRESS)
MCCAIN: Between jobs. But as we seek in economic conditions worsen in America, more than 250,000 Americans recently and suddenly lost their jobs that that number is going to increase.
And the other half are people that are children. There's 8 million children that are not signed up for the S-chip. There are other people who simply have chosen not to take insurance but the fact is that there's also a large group of Americans who are in a category where they simply can't get insurance.
That's why I talked about this guaranteed access plan. Where we are going to have to work with the states and the governors and there's 20 states now that have enacted some laws that restrict the size of premiums and do other things. And there's proposals on the tables, on the table in states to have risk pools to provide the proper funding and it's going to require a federal contribution to care for the chronic disease pre-existing condition group of Americans who simply under any circumstances could not afford.
And frankly, some of those people are the people that you see at the community health centers as well. And we see at the emergency rooms all over America because they can't get health care anyplace else. And you know better than I do that emergency room care is the most expensive form of health care in America. And I'm insulting your intelligence by telling you these things.
But it brings me to my point that I don't believe bigger -- you said you don't think it should be further privatized. I think that's probably true. But I also don't think we should have greater government control over health care system in America. I think if you go to Canada, or you go to some other countries where we have government health-run -- health care run systems, I don't think you would find the quality of health care in those countries at a level that we Americans have grown to expect.
So one of the fundamentals of the proposal that I have is every family in America have a $5,000 refundable tax credit. And they would be able to grow across state lines and shop online or anywhere in America and purchase a health insurance policy that suits them in their best.
Right now, when you have employer provided health insurance, you don't have a choice. You take the policy that your employer gives you. Or in the case of small businesses, that employer can't provide it. So we have no money now to purchase a health insurance policy.
At least, you got $5,000 in refundable tax credit where you can go online, if you choose the insurance company of your choice and since you not confined to the state of Ohio, you can go anyplace in America, then these insurance companies will have to compete more effectively against each other. It's competition.
Whenever there's -- a company or corporation in any line of business in America in this world that corner, the market and squeeze out competition, then costs to the consumer go up. So I think that one of the key elements is for us to give every American family this refundable tax credit so that they can choose the policy that best suits their family's needs.
And I don't believe that employer-based -- if somebody wants to keep their health insurance policy that their employer is providing, fine. That's fine with me. But I also want to give them the choice.
Now, we need walk-in clinics. We need to have community health centers. We need to have outcome, as I mentioned in my earlier remarks, outcome-based treatment.
My friends, if a person has one of these five diseases that I was talking about and you pay for every procedure and every test and every visit to a doctor, obviously that the costs go up and up and up. I want to tell a health care provider, here is a patient with a chronic disease. Treat him for a year. And here is a certain amount of money and if -- if that patient is in good shape after that period of time, we will reward you. But give them their car.
Number two, there is a program called Cash in Counseling where seniors are given the money, they're given the money by the federal government to take care of their own health care needs. And they choose, they choose which doctor or which health care provider that they need.
And you know what we find out? The obvious. When they are making the decisions, that they're far wiser. They're far wiser than they were. And finally, we need to put the choices into the hands of the patient. And that's the whole theory behind that. There's many other steps that we need to take. One of them is malpractice reform. I think it is pretty clear.
HARRIS: And there you have it, John McCain. The GOP presumptive presidential nominee. We always have to say that -- in Cleveland, Ohio, talking about his ideas for health care reform at the Cleveland Clinic Complex. If you would like to watch more of this, happening live right now, just go to cnn.com/live.
WHITFIELD: All right, McCain talking health care. Let's hear what Senator Barack Obama is saying in Columbia City, Indiana as he crisscrosses that state now five days before the primary.
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OBAMA: What I want to do is eliminate the income tax on social security. That is something that we weren't taxing up until 1993. And if we could eliminate that income tax, that would save the average social security recipient up to $1400 a year, which would help to pay for a lot of these rising costs. And we could pay for it just by getting those who are doing very well in this economy to go back to the same tax structure that we had back when -- back in the 1990s.
So it's not something that we couldn't do. It's just something that we choose not to do. And by the way, if we eliminated income tax on social security, then there would be hundreds of thousands of seniors right here in Indiana who wouldn't have to even file income tax, which would save them a lot of money, in terms of having to get tax preparers and all that stuff. That's an example of what we should be doing to help ordinary folks.
Another example. Prescription drugs. Many of you, obviously, are concerned about prescription drug costs. I'm glad we have a prescription drug plan under Medicare now. That's a good thing. What's not so good is the big doughnut hole right in the middle of it, which means that people are paying for their prescription drugs, precisely when they can least afford it. If they really have high expenses.
Now, here is the reason that we have that doughnut hole. It's because when Congress designed to that prescription drug bill, they decided because of lobbying from the drug companies, that we would not be able to negotiate for the cheapest available price on drugs. The way the VA negotiates for the cheapest price on drugs. The way the Canadian government negotiates on behalf of their citizens to get the cheapest available price on drugs.
So we are paying much more for prescription drugs than we should. Just because we are not negotiating for the best prices, and the only reason we are doing that is because the drug companies were able to lobby Congress to make themselves more profits instead of helping people who really needed help. I want to change that.
And make sure we're negotiating to lower prescription drugs prices so that people who use prescription drugs would save about $10 billion a year across the country. The government, taxpayer would also save about $20 billion a year. That's money that we could save and we could be putting into making sure that everybody gets the health care that they need.
The third thing that I want to talk about is gas prices. Everybody -- it's on everybody's mind. I don't know how many people are pumping gas here at this facility and taking long drives. Yes, you know, joy riding down Main Street. But gas is now at $3.65, $3.70 a gallon. It's the highest it's been.
And even if you're not driving, it's affecting you because it affects what truckers have to pay. And so all of the goods and services that you use, prices are going up. Groceries are going up partly because of rising gas prices. So we need to do something about this.
Now, John McCain decided that he would solve this problem after being in Congress for 25 years by suspending the gas tax for three months. The Federal Gas Tax, he wants to suspend for three months. And as Patty said, what that would do is save the average driver 30 cents a day. A nickel and a quarter, 30 cents a day.
And would save you a total of about $28 for the entire year -- $28. Now, listen, these gas prices are brutal on people. And there are folks who I've met who can't go on a job search after losing a job because they can't fill up their gas tank. I've met people who are now paying an additional $100 a month for gas in their commute back and forth to the job. And if they're low income that's very hard to afford.
So we've got to do something to help the people, which is why I proposed this middle-class tax cut and why I want to accelerate a stimulus, a tax rebate, to put more money into the pockets of people to solve problems. But for us to pretend like we're solving the problem by giving people 30 cents a day for a grand total of $28. And that's it -- that's our plan.
WHITFIELD: All right. Senator Obama is there stomping in Columbia city, Indianapolis. Touching on issues from the gas prices to prescriptive drugs to the income tax, and you can continue to hear his comments on cnn.com/live, as you may also be interested in doing for Senator John McCain who is stumping in Cleveland. His live remarks are also on cnn.com/live, where he is focusing on health care.
Meantime, while you're paying a pretty penny at the pump, a big oil company announces near record profit this morning. You will be outraged.
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WHITFIELD: Well, this you probably know, but we're just going to rub it in some more. Big oil is making huge money. The world's largest publicly traded company earned nearly $11 billion in the first three months of the year. Susan Lisovicz is on the floor of the New York Stock Exchange with details on -- you guessed it ExxonMobil.
Yes, they're making big money and this is like becoming a pattern, right?
SUSAN LISOVICZ, CNN CORRESPONDENT: It's becoming a pattern and a record setting pattern at that, Fredricka. ExxonMobil's first-quarter earnings are the second highest corporate profits ever recorded. Second only to ExxonMobil's profits from the previous (INAUDIBLE).
Yes, nearly $11 billion in profits for the first quarter. Remember, that's just three months. If you want to, you know, dissect it a little more, amounts to about $1400 per second on revenue of $116 billion.
WHITFIELD: Wow.
LISOVICZ: But you know what Wall Street ...
WHITFIELD: I don't even understand those numbers.
LISOVICZ: You need a really big calculator. Wall Street expected even more of ExxonMobil and I'll tell you why. Because Exxon makes more gas than it produces oil. And because oil is costing so much that it, too, had to pay more for oil.
(INAUDIBLE) and ExxonMobil misestimates. And ExxonMobil shares are down four-and-a-quarter percent. Chevron which reports tomorrow down 2.5 percent. And Oil, I'm happy to report is down. Right now more than $2.30 a barrel. The dollar grows against the Euro today. The highest level in five weeks.
The DOW right now modest gain despite Exxon and Chevron weighing on it, about 26 points. NASDAQ is up 12 points -- Fredricka?
WHITFIELD: Wow. OK. So some good news for the consumers that, you know, oil prices seem to be going down and have in the past 24 hours. And why are we not seeing it at the pump? And if we will see it at the pump, when?
LISOVICZ: Well, there is a little bit of a delay (INAUDIBLE). And right now, we have record gas prices. Today's gas records just $3.62 a gallon. That from AAA. That is the seventh straight record for those of us who are keeping count.
But here is something that, well, maybe make you feel a little better. Put it in perspective. Compared to other countries, U.S. prices for gas are downright cheap.
WHITFIELD: Oh my gosh.
LISOVICZ: There is a research firm that collected data on 155 countries. The U.S. ranked 145th on the high end, Sierra Leone. This about it -- $18 a gallon.
WHITFIELD: That is ridiculous. And people can't afford food in Sierra Leone.
LISOVICZ: That's a very good point. And Europe, $8. Most folks have been used to very expensive petrol as they call it for a long time. The low end, well, you'd have to go to an OPEC member. Venezuela, 12 cents. Saudi Arabia, 45 cents.
The survey doesn't account for different salaries and exchange rates. But remember, we use a lot more oil. About three times more oil than the Europeans. And that's another reason why it hurts so much, Fred.
WHITFIELD: That is extraordinary.
LISOVICZ: That's why we got to get those bikes out.
WHITFIELD: Yes. I guess we're supposed to feel better now that we see the comparisons. So near $4, not so bad when you look at $8 and $18.
LISOVICZ: Sierra Leone.
WHITFIELD: Yes, extraordinary. All right. Thank you, Susan.
LISOVICZ: You're welcome. HARRIS: Second in line to the British throne hits the ground in a war zone. Prince William's Afghan adventure.
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HARRIS: Ball player gets a real pick me up. She hit it over the fence, but needed some help scoring the run. Look at these pictures. Opponents pinch carried, inspiration, ahead in the CNN NEWSROOM.
WHITFIELD: I like that.
Peaceful palace uprising over. The Iolani Palace is open to tourists today. The one-time home for Hawaii's last two monarchs was taken over by groups for six hours yesterday. The native Hawaiian activists have long protested what they feel is the stealing of the island by the U.S. but this is the first time the group took physical control of the palace.
Talks with authorities led to an end of the blockade. No arrests. But officials say protesters could still be charged.
HARRIS: And good morning again, everyone. You are informed with CNN. I'm Tony Harris.
WHITFIELD: And I'm Fredricka Whitfield in for Heidi Collins.
HARRIS: Developments keep coming in to the CNN NEWSROOM on this Thursday, the first day of May. Here is what's on the run down.
WHITFIELD: New this morning. Clinton ally switches. Former Democratic party boss decides to stand with Barack Obama.
HARRIS: Immigrants and their supporters will kick off rallies in three big cities this hour. Live coverage of the protests.
WHITFIELD: Heavy rain and melting snow pushing the river over the banks. Stopping wet in Maine in the NEWSROOM.
HARRIS: Superdelegates switch.
