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Lou Dobbs Tonight
McCain vs. Obama on Economy; Obama's Populist Push; An Obama Aide is Under Fire; Tainted Tomatoes; Drought in California
Aired June 10, 2008 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, HOST: Wolf, thank you.
Tonight the crisis over deadly tomatoes in 17 states is intensifying. We'll be reporting to you on why powerful lobbyists and their friends in Congress have made it far more difficult to find the source of this outbreak of salmonella.
And tonight the drought emergency in California is worsening after the driest spring in nearly a century. Is water rationing inevitable across California and other states and why are those other states and California not examining the issue of population growth.
And tonight Senators McCain and Obama hammering one another over the economy. Their rhetoric intensifying as the economy worsens and seemingly neither of them has a single new idea on what to do. All of that all, all the day's news and much more here tonight with an independent perspective, straight ahead.
ANNOUNCER: This is LOU DOBBS TONIGHT: news, debate, and opinion for Tuesday, June 10. Live from New York, Lou Dobbs.
DOBBS: Good evening, everybody.
Senator McCain today accused Senator Obama of planning the biggest single tax increase since World War II. In a sweeping attack on Obama's economic policies McCain portrayed Obama as a typical tax and spend liberal.
Obama called that criticism misleading and blasted McCain's economic policies for a second day. Obama said McCain wants to give $300 billion in tax breaks to corporations and wealthy Americans but has no idea how to pay for those tax breaks.
We have extensive coverage tonight on the candidates' battle to win independent voters and we begin with Dana Bash in Washington -- Dana.
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Lou, John McCain has been waiting for months to go head to head with a Democratic opponent. Today the first issue he chose to draw sharp contrast with Barack Obama on is the issue voters care most about, the economy.
(BEGIN VIDEOTAPE)
BASH (voice-over): A new twist on the time-tested Republican attack line, John McCain declared Barack Obama's economic policies change that voters can't afford.
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: Under Senator Obama's tax plan, Americans of every background would see their taxes rise.
BASH: A day after suggesting Obama's presidency would be like Jimmy Carter's, McCain conjured up memories of that era's economic anxiety.
MCCAIN: Will we go back to the policies of the '60s and '70s that failed or will we go forward?
BASH: And slammed Obama for wanting to repeal tax cuts for upper income Americans, tax cuts McCain initially opposed.
MCCAIN: Will we enact the largest single tax increase since the Second World War as my opponent proposes or will we keep taxes low, low for families and employers?
BASH: McCain may be selling himself as a different kind of Republican, but not on the economy. Advises want him to stick to what they insist is winning conservative credo, free trade, low regulation and low taxes.
In fact, McCain in the past has sparred with fellow Republicans over repealing the estate tax. Now, he's hitting Obama for wanting to raise it.
MCCAIN: The estate tax is one of the most unfair tax laws on the books.
BASH: From Obama rapid response calling McCain misleading.
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Let me be clear, my tax reform plan would cut taxes for 95 percent of workers.
BASH: McCain's speech to small business owners was interrupted three times by anti-war protesters.
MCCAIN: You know one of the...
UNIDENTIFIED FEMALE: (INAUDIBLE)
BASH: He wooed the heckles into his pitch for joint town hall meetings with Obama.
MCCAIN: So we need the town hall meetings. You just saw the example. Let's stop yelling at each other. Let's stop having sound bites and processed questions and those things.
(APPLAUSE)
(END VIDEOTAPE)
BASH: McCain suggests that he and Obama should travel to these town hall meetings together, in the same plane and promised that he wouldn't fly it. It was a self deprecating joke referring to the fact that while flying in Vietnam he got shot down. But in all seriousness, McCain advisers say they haven't heard much from the Obama camp on this joint town hall meeting idea since they proposed it last week -- Lou.
DOBBS: Dana, thank you very much, Dana Bash reporting from Washington.
One leading congressional Democrat, Congressman Dan Boren of Oklahoma tonight, saying he will not endorse Senator Obama. Congressman Boren (ph) said Senator Obama is what he called the most liberal senator in the Congress. Boren, however, said he will vote for Obama at the Democratic Convention in August and will vote for him in the general election.
Well, top Democrats in Washington today tried to dispel any doubts the party will support Senator Obama. But Democratic National Committee Chairman Howard Dean acknowledged the Democratic Party has work to do to end divisions among Democrats.
(BEGIN VIDEO CLIP)
HOWARD DEAN, DNC CHAIRMAN: It's only been three or four days since Senator Clinton announced that she would no longer continue her campaign. I have every confidence that we will be uniters of the party by the fall election, and I think before that.
(END VIDEO CLIP)
DOBBS: Senator McCain is trying on is part to exploit the divisions among Democrats. The senator says he can win over many of those former Senator Clinton supporters.
Senator Obama tonight making a new effort to win the support of those same Clinton Democrats and Independent voters as well. He's pushing a populist agenda. Obama blasting McCain on the issue of health care.
Obama says McCain's health care plan would help only wealthy Americans.
Jessica Yellin has our report.
(BEGIN VIDEOTAPE)
JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Barack Obama spent the morning touring a Missouri hospital with a hard-working nurse. Remind you of something? Maybe Hillary Clinton's tour with a hard-working nurse.
UNIDENTIFIED FEMALE: She's getting excellent care.
YELLIN: Or Hillary's ad about hard-working women.
UNIDENTIFIED MALE: Worked the night shift at the local hospital. They're often over worked, under paid, and sometimes over looked. YELLIN: Obama's message is familiar too.
OBAMA: It's time to stop saying that you are on your own to uninsured Americans and struggling families and small businesses. It's time to reclaim the idea that we all have mutual obligations to one another.
YELLIN: Sound a bit like the populist themes Clinton adopted late in her campaign.
SEN. HILLARY RODHAM CLINTON (D), NEW YORK: Are we going to elect somebody who is going to fight for you? That is the choice in this election.
YELLIN: Which sounds a bit like John Edwards at the beginning of this race.
JOHN EDWARDS (D), FORMER PRESIDENTIAL CANDIDATE: How long are we going to let drug companies, insurance companies and their lobbyists run this country? America doesn't belong to them. America belongs to us.
YELLIN: Clinton's overt appeal to working Americans helped her win over the blue collar vote. Her outreach to working women helped her lock up the female vote. Both are constituencies Barack Obama is now trying to woo. So he's honing in on health care with a proposal that would guarantee every American access to health insurance at lower costs and he's picking a fight with John McCain.
OBAMA: He's offering a tax cut that won't ensure that health care is affordable for hard working families who need help the most.
YELLIN: McCain says Obama's plan is just more big government.
MCCAIN: I believe the best way to help small businesses and employers afford health care is not to increase government control of health care but to bring the rising costs of care under control.
(END VIDEOTAPE)
YELLIN: Lou, as you pointed out, Barack Obama is not promoting a new health care policy. It's the same plan he talked about in the primaries and he's taken some heat from his fellow Democrats about that plan. Both Edwards and Clinton were very critical of it because insurance is voluntary. It's not mandated that every American must get it. They say that is not true universal coverage -- Lou.
DOBBS: All right. Thank you very much, Jessica.
Jessica Yellin reporting.
Senator Obama tonight is stepping up his search for a vice presidential candidate. Obama's search committee has been meeting with congressional Democrats on Capitol Hill and one of those Democrats, Senator Kent Conrad, said the senator is considering former military commanders among other possibilities. Senator Conrad didn't offer up any names.
A rising controversy tonight over one of the three members of that vice presidential search committee for Senator Obama, Jim Johnson. Johnson tonight facing questions about mortgages he received from Countrywide, one of the companies at the center of the housing and foreclosure crisis. Obama, of course, a frequent critic of the mortgage industry. Brian Todd has our report from Washington.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): A message that brought him to the verge of the party's nomination, he'll change the way Washington works. Barack Obama's also pledged to crack down on predatory lenders partly responsible for the home mortgage crisis. One of the firms he railed on for helping to create the mess:
OBAMA: Countrywide Financial was one of the folks -- one of the institutions that was pumping up the sub prime lending market.
TODD: Now, Obama is spinning off a Republican onslaught, multiple charges of hypocrisy because he's tapped Jim Johnson, a wealthy Washington insider who reportedly got about $7 million in home loans from Countrywide to vet potential vice presidential nominees.
Johnson was once CEO of Fannie Mae, which does a lot of business with Countrywide. According to "The Wall Street Journal", Johnson got some of the loan at interest rates well below what ordinary borrowers get partly because of his longtime association with Countrywide's CEO.
Countrywide is under federal investigation for fraud in the mortgage crisis. There is no evidence of anything illegal in these transactions. But observers say the loans could pose a political headache for Obama.
EAMON JAVERS, POLITICO.COM: If there was a sweetheart element to them, then that's going to cause this scandal to have legs and Obama might have to make a move here.
TODD: Jim Johnson's attorney said Johnson could not do an interview with us because of scheduling conflicts. The attorney didn't deny Johnson got the loans, but did deny any illegality or sweetheart deals.
Said there were no calls between Johnson and Countrywide's CEO and told us these were quote, "garden variety transactions that anyone with a high net worth and good credit can get." Obama said he's not vetting his V.P. search committee for their mortgages.
OBAMA: Everybody, you know, who is tangentially related to our campaign, I think is going to have a whole host of relationships. I would have to hire the vetter to vet the vetters.
TODD: Obama's campaign also points out a once high powered lobbyist, Arthur Culverhouse, who once lobbied for Fannie Mae is heading McCain's vice presidential search team and a lower level McCain adviser once lobbied for a sub prime lender. Analysts say these kinds of attacks are more intense this year than ever.
STUART ROTHENBERG, EDITOR AND PUBLISHER, "THE ROTHENBERG POLITICAL REPORT": Anybody and everybody who has touched the campaign is suddenly under scrutiny and intense scrutiny and campaigns are being forced to ask to disavow endorsements and turn loose advisers.
(END VIDEOTAPE)
TODD: Now, as for the adviser in question here, we asked Obama's campaign if they had discussed asking Jim Johnson to step aside, and they said they would not talk about internal discussions and simply said that Johnson is still with them -- Lou.
DOBBS: Brian, terrific reporting. The issue here is the role of lobbyists and the role of influence in Washington. Neither of these candidates to this point have done nearly even close to enough, in my opinion to push back the influence of lobbyists in Washington and on their campaign staffs let alone on what will be the administration of one of these two senators.
Brian, thank you very much.
Brian Todd reporting from Washington.
We'll have much more on the challenge that I issued to these two candidates last week about lobbyists. We'll also be reporting tonight to you on how powerful lobbyists and special interests have made it far more difficult to find the source of a deadly salmonella outbreak in tomatoes in 17 states in this country.
And a drought emergency in California after the driest spring in nearly a century, we'll have the latest on the worsening impact of this drought and the impact of population growth.
Stay with us. We're coming right back.
(COMMERCIAL BREAK)
DOBBS: More disturbing evidence tonight that the Food and Drug Administration continues to -- continues to fail to protect American consumers from contaminated food. The agency doesn't apparently know yet the source of a wide-scale salmonella outbreak linked to three different kinds of tomatoes.
One death has now been blame on outbreak. Nearly 200 people have been sickened across 17 states.
Louise Schiavone has our report.
(BEGIN VIDEOTAPE)
LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): No answers yet from the Food and Drug Administration about the source of contaminated tomatoes that have left more than 150 people sick, about two dozen hospitalized and now, says the Houston Department of Health, contributed to the death of a 67-year-old cancer patient. Tomato farmers, meanwhile, are looking at losses.
BOB SPENCER, WEST COAST TOMATO: It is a catastrophic impact in our industry and the scary part is that this could occur again in the future and that could actually be the death nail for produce in the United States.
SCHIAVONE: This tomato grower is relieved. The FDA has declared the $460 million Florida crop safe. But for about a week, 360 of this one farmer's workers were laid off, and the crop was warehoused with nowhere to go. Meanwhile, the FDA still can't answer the question did the tomatoes bearing salmonella come from inside or outside the United States?
TONY CORBO, FOOD & WATER WATCH: This administration is pushing trade deals right and left without having the safeguards of our regulatory agencies to be able to handle the food safety of these ever-increasing imports.
SCHIAVONE: The inability of the system to intercept tainted goods is one more big problem for farmers, already struggling with heavy weather and high energy costs.
TOM BUIS, NATIONAL FARMERS UNION: There are a lot of tomato producers throughout the United States that probably are going to be impacted whether they were part of this problem or not because the consumer is thinking, I'll just stay away from these tomatoes.
SCHIAVONE: One just-released poll about food safety fears shows that more than half of the Americans surveyed actually stopped eating a particular food temporarily or permanently as a result of a recent recall.
(END VIDEOTAPE)
SCHIAVONE: Lou, as the FDA fights off challenges to its ability to protect consumers, the administration is now unveiling a request for Congress to approve a $275 million add-on to its latest FDA budget request, likely results, says one congressional source, of the bad publicity from the latest food contamination scare.
DOBBS: And this administration, as over the course of the two terms, driven down the budget of the FDA, they have in point of fact cut employees of the FDA and now, suddenly, they are interested in perhaps providing some money. I mean, this is one of the great shames of this administration.
SCHIAVONE: Yes. And the people in Congress who have something to say about this amount of money say, well, that's fine, now they want to spend the money. But what do they want to spend it on? Are they able to actually put this money to the kind of use it needs to be put to?
DOBBS: Well, we know what they've done with lobbyists and the influence that they've used to stop the country of origin labeling, amongst other things.
Louise, thank you very much -- Louise Schiavone.
Well, a five-year-old law should be helping our federal authorities track down the origin of these contaminated tomatoes, but the regulation was never implemented. The law is the country of origin labeling.
The food industry didn't want it, doesn't want it, and the industry's powerful lobbyists and special interest friends on Capitol Hill succeeded in blocking it and are still doing so. The rest of us independent thinkers, however, overwhelmingly supporting country of origin labeling, of course, and a recent consumer report poll showing 92 percent of all Americans favor labeling the source of our imported food.
Both presidential candidates say they want to do something about the lobbying industry in Washington, D.C. On the 4th of June, I challenged both candidates to agree that no member of their administration will be allowed to work as a lobbyist for five years from the time they end their service with the federal government.
Neither of our presidential candidates, by the way, has accepted the challenge.
So we're asking you in our poll tonight: Do you believe that Senators Obama and McCain should accept my challenge to end the influence of lobbyists?
Yes or no? Cast your vote at loudobbs.com. We'll have the results here later in the broadcast.
Up next, Senator Chuck Grassley demanding E-Verify be reauthorized and improved not killed as many open borders of amnesty advocates want. I'll be talking with the senator here next.
And California's drought is there any relief in sight? We'll have that special report as well.
We're coming right back. Please stay with us.
(COMMERCIAL BREAK)
DOBBS: Up next, extreme weather across much of the country, floods in the Midwest, drought in the West, a triple-digit heat wave in the East. We'll have the very latest for you here next.
(COMMERCIAL BREAK)
DOBBS: Extreme weather today seemingly all across the country. At least three waterspouts were spotted after forming off the coast of Florida. The slow-moving storm funnels churned up the sea near Miami. Waterspouts of course can move inland and sometimes even become tornados.
New York City sweltering today under a fourth straight day of 90- degree plus temperatures. The main teacher's union, by the way, appealed to city of New York for help as temperatures soared in classrooms with limited air-conditioning.
The mayor of New York City's response?
Well, Michael Bloomberg told teachers to open the windows.
Good going, Mr. Mayor, always on the spot, ready to solve a problem; the heat index in the city today in the triple digits. But what would you expect from Mayor Bloomberg, the same mayor who told New Yorkers, devoured by the city pothole blithe that, "potholes are as much a part of city life as hot dog carts and yellow cabs." Since 2000 the city's paid out to 4,000 motorists more than $150 million in damage claims to fix shocks, struts, tires and other problems those potholes caused.
In Indiana, the problem was floodwaters and they wiped out tens of thousands of acres of prime farmland. In Johnson County muddy water breaking through earthen barriers inundating farms and fields. The CNN Weather Center saying the Midwest can now expect three more weeks, that's right, three more weeks, of flooding.
In California, water rationing in effect there in some areas after the driest spring in nearly a century, Governor Schwarzenegger declaring a drought throughout California.
And as Casey Wian now reports, state officials are warning that the worst may be yet to come.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): For the first time in 17 years, the entire state of California is officially in a drought.
TED LIEU, CALIFORNIA STATE ASSEMBLY: A water shortage is far worse than oil shortage. Because at least with an oil shortage you can take mass transit there are things you can do. But we all got to drink water and if we don't deal with the water shortage now, we'll going to be in a world of hurt.
WIAN: Some communities are already rationing water, a huge blow for farmers such as Al Stehly. He's idled 30 percent of his avocado trees through a process known as stumping. There's talk his water will be cut in half next year.
AL STEHLY, AVOCADO GROWER: That means a lot of growers are just going to give up. I mean we won't even stump them. We'll probably just turn the water off, just let them die.
WIAN: At least 42,000 acres of California crops in one county alone and 2.5 million acres of rangeland are useless for now. Governor Arnold Schwarzenegger says much of the pain could have been avoided if the State Legislature had funded proposals to upgrade California's water infrastructure.
GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: In 2006, for instance, we had more water than we knew what to do with it but raging storm water ran off into the ocean without us capturing it. Chester (ph) and Fallston (ph) reservoirs were forced to release trillions and trillions of gallons of excess water. Today, the same reservoirs are nearly 40 percent below capacity, it's absolutely insane.
WIAN: All of this comes at a time when the governor is trying to win approval of a $12 billion water infrastructure bond. A more immediate concern, the driest spring in 88 years could intensify California's notorious wildfire season.
(END VIDEOTAPE)
WIAN: According to the Pacific Institute, Californians already use 25 percent less water per person than the rest of the nation. Still, state officials are asking for more voluntary conservation and threatening mandatory state-wide rationing if conditions don't improve, Lou.
And it doesn't appear likely that those conditions are going to improve anytime soon. The National Weather Service forecasting drought conditions will either persist or intensify throughout California this summer -- Lou.
DOBBS: Alright Casey, thank you very much -- tough times in California.
Casey Wian reporting from Los Angeles.
Up next here, we're going to be telling you about the battle in Congress to actually force employers to determine the legal status of employees. Senator Chuck Grassley wants the legislation to renew the E-Verify system put through and to be passed by Congress quickly. He's our guest here next.
Also new demands for Congress to fully fund a fence along our border with Mexico, two congressmen leading the demands join us here.
And the threat to our national security from foreigners trying to control strategic assets but "The New York Times" is refusing to recognize the threat and instead chose to attack me.
And also apparently "The New York Times" doesn't like the American flag on my lapel. You know, too bad. We'll be talking about setting the record straight for "The New York Times" here next.
Stay with us. We're coming right back.
(COMMERCIAL BREAK)
ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate, and opinion. Here again, Mr. Independent, Lou Dobbs.
DOBBS: As we reported on the broadcast last night, President Bush has signed an executive order cracking down on the employment of illegal aliens by government and the president signing that order, the same week that Senator Grassley introduced legislation to reauthorize and to improve the e-verify program. A federal program that verifies work eligibility of new employees, their legal status. Senator Grassley joins me now from Capitol Hill. Good to have you with us.
SEN. CHARLES GRASSLEY, (R) IA: Lou, I'm always glad to be with you.
DOBBS: Senator, do you have the feeling that you're going to be able to succeed in reauthorizing the e-verify program?
GRASSLEY: Well, I would hope that even people that maybe don't want it to be as sweeping as my legislation would require it to be, because we apply it to everybody, they surely would think that we need to have the e-verify program as limited as it is in use, at least continue the extent of what it is if for no other reason than to give employers who are overly concerned about whether a person is legally or illegally in the country an opportunity to use it. We shouldn't take away the choice of people that want to use it.
DOBBS: Well, 69,000 employers using it now. It's considered by the Department of Homeland Security to be 99, as you know, 99.5 percent reliable. The ACLU is attacking President Bush for signing an order that requires contractors to use the e-verify system to make sure that their employees are legal when doing business with the federal government. I mean you couldn't get this more screwed up and upside down in this country when it comes to national values if you tried, could you?
GRASSLEY: You know, I had an opportunity today, probably an annual meeting with constituents who are ACLU leaders from my state, we had this very discussion. But let me tell you, the reason why it's so important that the president do that, and I would have had it in my legislation if he hadn't done it, so it's a victory to get it done by executive order, isn't it silly to require every federal agency that a federal employee be e-verified but so much work of the federal government's done by private contractors that it doesn't include the contractors because we've had instances in which people from terrorist organizations have been employed on Army bases as an example.
DOBBS: Well, and the examples go on, as you know. I mean, your legislation would require that e-verify be made permanent rather than expire and I believe, what, it expires in November without your legislation? It requires federal contractors to use e-verify, allows employers to verify stat us of all employees, requires employ to re- verify the stat us of temporary workers. It does everything but require every employer to use it. Why not require every employer to use it?
GRASSLEY: Well, I -- I obviously favor that, because that would have been a part of an immigration bill that, for the most part, I liked except for the amnesty that was in it. But I guess to get that accomplished we're going to have to have a more comprehensive immigration bill. And ...
DOBBS: Well, why is that, senator? Because I mean, you know, the big problem here, I've said all along, I don't know whether you agree with me, but I've said all along the only rational actor in this entire illegal immigration mess is the illegal alien. We understand what is motivating that man or woman. But what we don't understand is why illegal employers of those illegal aliens, they're the ones driving illegal immigration. If we could put e-verify out there and require that business to be responsible for the verifying the status of their employees, they had go a long way to solving our problems, wouldn't it?
GRASSLEY: Well, of course it would. And I'd like to give you an answer that I agree with you 100 percent, and I agree with you 100 percent, but in this business that I'm in and it frustrates people like you and our constituents when we answer this way, but it's what can you get done right now and this is what I think I can get done right now.
DOBBS: Yeah. Well, I think -- I understand that. And as you suggest, like your constituents, I don't like the answer. I would like to see something better. But at least it's progress. And for that, I commend you, Senator Grassley. We appreciate you being with us.
GRASSLEY: Thank you very much. Call me back when you need me.
DOBBS: You got a deal. Thank you very much, senator.
Up next, more about the foreign hedge fund that wants to take control of one of our biggest railroads. I consider it to be a strategic asset, "The New York Times" considers it just to be a railroad. And this hedge fund to be a little British operation without a problem. But "The new York Times," however doesn't like my lapel pin. We'll have a few thoughts for the "New York Times" and tell you about new efforts to build a fence along our border with Mexico or not to build the fence as the case may be.
I'll be joined by Congressman Pete King and Congressman Walter Jones here next. Stay with us. We're coming right back.
(COMMERCIAL BREAK)
DOBBS: If a lapse into opinion here in the next few minutes, it's only my opinion, not CNN's, not anybody else's, just mine. All provoked by "The New York Times." They provoke me from time to time. Attacked for the criticism of a foreign hedge funds investment or attempted investment in a key component of the country's infrastructure, a key national security asset, if my opinion. That investment would put one of the nation's major railroads under the influence, strong influence of a foreign fund whose investors remain unknown to the federal government and to everybody else. And as Kitty Pilgrim reports there are major security concerns on Capitol Hill over this deal.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN CORRESPONDENT (voice-over): CSX connects every major population and industrial center east of the Mississippi with 1200 trains a day, connecting 13 military bases and 70 ports. U.S. legislators are concerned that TCI, a $19 billion hedge fund is, based in London wants to place five directors on the CSX board, cut capital expenditures and increase rail rates. The hedge fund accumulated four percent of shares and 11 percent of economic interest in CSX. TCI won't disclose whose its investors are.
PROF. JOHN COFFEE, COLUMBIA UNIVERSITY: Because they're unregulated hedge funds are not subject to any transparency in that regard. They never have to disclose, they're under no obligation to tell you who owns them. Most of their shareholders are don't want to be disclosed as shareholders.
PILGRIM: Six senators on the banking committee have written to the Treasury Department asking for a CFIUS review on national security grounds.
SEN. EVAN BAYH, (D) IN: We have know what the facts are and see who the investors are and if there's a foreign government attempting to exert some sort of influence or control over an important national security asset in the United States of America, including important infrastructure like a railroad, we need to know about that and not just accept assertions that it's OK, but make sure that, in fact, it's OK.
PILGRIM: TCI says nobody should be worried about their investors, only one percent of their assets are sovereign wealth funds.
SNEHAL AMIN, THE CHILDREN'S INVESTMENT FUND: Hopefully we've made people comfortable that the vast majority of the money is from the U.S. or Europe, not threats in any way. Even if we could disclose the rest of the world, the other five percent, you realize these are not people, not funds to be concerned. Even the sovereign wealth funds are not funds to be concerned about.
PILGRIM: TCI says its proxy fight with CSX is being politicized, and opposition to TCI has nothing to do with national security issues.
(END VIDEOTAPE)
PILGRIM (on camera): This is not the first time TCI investment in a company has met with resistance by government officials. TCI's investment in a Japanese power company was opposed by the Japanese government on national security grounds. Now, U.S. industry watchers say it's important to review any foreign investment on a strategic asset such as a major railroad. Lou?
DOBBS: You have to give credit to Senator Menendez, Senator Bayh, as you reported. Congresswoman Corinne Brown, amongst others. For stepping into this. The arrogance of the hedge fund to take on the Japanese government, they push around apparently the British government quite regularly. But the management of CSX, whatever else you want to, as "The New York Times" did point out has risen two and a half times over the course of the past three years, their stock, so they don't need the hedge fund to tell them how to run their business. On that level alone they look like complete, I'll try to think of a nice word, complete fools.
PILGRIM: We talked to industry analysts for the railroad industry. They say CSX is in the process of three, four-year turnaround, they should be allowed to continue that. You know, it's funny, TCI says they never sought control of CSX but they do have a very strong corporate agenda that involves cutting capital spending.
DOBBS: Frankly, we've got the president of the United States and this excuse, poor excuse for a treasury secretary Henry Paulson going around the world with their hats in hand trying to get foreign capital. This is the kind of nonsense that follows suit the idea you're giving entitlement to a hedge fund. First of all the idea that hedge funds are not regulated in this country is absolutely an obscenity. To have a foreign hedge fund is an greater obscenity and it's time to get rational. But the other part of this is this is a national security asset and this is just a joke that's got to be ended. And I don't care whether CSX thinks we're politicizing it or not, in fact we are for the purpose of people paying attention to a national security asset.
PILGRIM: When you look at the grid of CSX, there's no mistake, this is a major asset to this country.
DOBBS: Of course that would make the management of CSX and lobbyist as well, because as a national security asset they're held to a higher standard, certainly by our government and this broadcast, among others. Kitty, thank you very much. Great job of reporting. Kitty Pilgrim.
Well, they're not going to be held to a higher standard by "The New York Times." Its standards not in manifest, evidence in their most recent article attacking me on my position on CSX and TCI. "The New York Times" also making an issue of this American flag lapel pin. A pin I've worn every night and have done so since September 11th. I wear out of respect and honor for the victims of September 11th. "The Times" Andrew Ross Sorkin wrote, "Lou Dobbs wearing an American flag pin on his left lapel," nasty me, "introduced a segment on his CNN program last week with his trademark outrage." Yes. I was outraged. I often am when we see government and national media combine for stupidity in just a wonderful, wonderful effort to mislead the person people, not fully inform them. "The New York Times" apparently making an effort to brand me as a flag-waving protectionist, where I'm not a protectionist. I do wear my lapel pin. By the way, Andrew Sorkin, the issue that you forgot was to include in your article was the fact that Japan had exactly the same reaction to TCI when they attempted to raise their investment in J Power, an important utility, a national security asset for the Japanese. You forgot to mention that as well.
And did you mention the part about the sovereign welt funds and the fact this hedge fund refuses to disclose its ownership? Some things you might have considered, just a thought. Love and kisses, see you next time.
Up next at the top of the hour, the ELECTION CENTER and Campbell Brown. Campbell, what are you working on?
CAMPBELL BROWN, CNN HOST: Well, at least you signed off with love kisses.
DOBBS: We're not signing off. I'm just warming up.
BROWN: All right, Lou. Tonight on the ELECTION CENTER, what do you think Congress is doing about the gas prices? Here's a hint. It won't take very long to tell you. Also tonight, what you never knew about Karl Rove. Some call him a genius, some equate him with Machiavelli. Some equate him with much more than that.
Well, we've got the author of a brand new book and we'll also hear tonight from a former Democratic governor in who blames Rove for the problems that put that governor in prison, plus a Rove defender to present that side of the story, that and more at the top of the hour.
DOBBS: Sounds fair and balanced. Campbell, thanks a lot.
Next -- Senators McCain and Obama, well, they've got economic plans. Do they know what they're talking about? Are they listening to the voice of independents? We'll be talking with three leading radio talk show personals next. And two lawmakers calling for the administration to enforce the law and to actually secure the border. Build a fence. Congressman Pete King, Congressman Walter Jones join me. Stay with us. We're coming right back.
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DOBBS: New efforts in Washington to ensure the border fence mandated by the Secure Fence Act is actually built. Congressman Pete King, Congressman Walter Jones want the president and the Democratic leadership to fun the fence. They join us from Capitol Hill. Welcome to both of you.
REP. PETE KING, (R) NY: Thank you, Lou.
REP. WALTER JONES, (R) NC: Thank you, Lou.
DOBBS: Let me begin, Congressman Jones, what -- why is it that the Democratic leadership isn't moving this legislation forward? You have 46 sponsors?
JONES: Lou, we do, and we're hoping today, as you know, we had the grassfire.com brought 260,000 signators. We did a press conference that you covered today, and certainly Pete King was there as well. I do not understand the democrats -- let me make it clear -- I don't understand President Bush quite frankly. He could use an executive order and order that this fence be fixed. So my frustration is like that of the American people. Do something for the American people to protect our borders.
DOBBS: Congressman Ling?
KING: Lou I agree fully with Walter and the fact is that this fence was mandated two years ago when the law was signed by the president. There's no reason the department has gone slow on it. And now the Democrats have totally slowed it down. Last year in the final appropriations bill, language was put in literally in the middle of the night which has slowed this down. And the Democratic leadership, and you had members of the Democratic Party on, do not want this fence built, that's the bottom line.
DOBBS: Well ... KING: There is blame on both sides. But with the Democrats in charge they're doing everything they can to slow this down.
DOBBS: We, of course, contacted Homeland Security Committee chairman, Benny Thompson's office, Congresswoman Sanchez, we are asking why that bill was not moving forward. Both declined to give is a statement. Have they given you any reason why they're not doing anything with this?
JONES: Pete - excuse me, go ahead.
KING: I'm the ranking member on the committee. Basically they don't feel this is a major issue. They're trying to slow it down. Chairman Thompson is a friend of mine. But he was on your show several months ago and he made it clear that there are no rush at all to advance this. In fact, they're suing ...
DOBBS: I was going to say, the chairman of committee is suing to keep -- from constructing -- I mean this is the most amazing thing.
JONES: Lou, I will tell you, truthfully, I think the American people are going to understand one day that the Congress is out of touch with the American people when it comes to securing our borders and they are going to let their voices be heard.
DOBBS: Congressman, I have to tell you, I believe they -- I think they already know that.
JONES: I do, too.
DOBBS: Here what may not be generally known. With this Congress, with fewer than ten weeks remaining to do the work of the people over the past 17 months the 110th Congress not a single bill addressing the issue of border security or illegal immigration has been passed by this Congress. What is the conclusion that we should all reach about that?
KING: Well, Lou, there's really an unholy alliance. The Democratic Party are pandering to special interests, don't want to offend certain elements of the society. And Republicans are pandering to business who like cheap labor. It's an unholy alliance of Republicans and Democrats coming together to stop progress being made on this wall.
JONES: Lou, that's exactly the issue. And I want to thank you for keeping the American people informed about what we're not doing in Washington, DC, to secure the borders of this country.
DOBBS: Congressman, thank you very much. Congressman Jones. We appreciate it. Congressman King, thank you, sir.
KING: Thank you, Lou.
JONES: Thank you, Lou.
DOBBS: Up next here, what radio listeners and independent thinkers are saying about these presidential conditions and their understanding of economics. I'll be talking with three of the best radio talk show hosts in the country here next. Stay with us. We'll be right back.
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DOBBS: Well, Senator McCain and Senator Obama trading attacks over their various economic proposals. To find out what radio listeners and independent thinkers in particular are thinking about the proposals I'm joined by three of the best radio talk show hosts in Detroit. In Detroit, Mildred Gaddis, WCHV, good to have you with us.
MILDRED GADDIS, WCHV RADIO: Hi, Lou, how are you doing?
DOBBS: And in Raleigh, North Carolina, Warren Ballentine Syndication One. Warren, good to have you.
WARREN BALLENTINE, SYNDICATION ONE RADIO: Lou, always, thank you.
DOBBS: Here in New York, Mark Simone, WABC Radio, good to have you with us.
MARK SIMONE, WABC RADIO: Good to be here.
DOBBS: Start with, I mean, let's start with gasoline averaging over $4 a gallon in this country, unemployment has hit 5.5 percent, the biggest increase in years in unemployment and the president says things are hunky-dory, both political candidates have got different views, what do you think?
SIMONE: This administration has no sound energy policy. None have had it for years. What bothers me is these Democrats, you hear Chuck Schumer yelling about taxing oil companies as if that's going to do anything to address the problem.
DOBBS: By the way, as my voice breaks, Chuck Schumer has been talking about taxing oil companies for decades.
SIMONE: Because it sounds great. We hate oil companies. But does absolutely nothing to address the problem.
DOBBS: We hate them until we get to that line, Warren, at the gas pump, right.
BALLENTINE: This is a true market speaking here. Taxing the oil companies is not going to do anything here. To be honest, Lou, I've looked at both Barack's proposal and McCain's proposal, and honestly, neither are impressive to me.
DOBBS: You and I have come to the same conclusion about these two candidates.
BALLENTINE: Well, you know, I'm not going to say that. I'm going to say as far as economic policy. Now I will say this, you know I'm an independent but I lean Democratic, I like Obama. DOBBS: That's fine.
BALLENTINE: And I would like to see them do something in these town hall meetings that's never been done before. I would like to see the town hall meetings occur and talk about economy and oil and everything else, but also run them on radio stations across the nation and let listeners call in. Lou, you know this, Mark knows this, Mildred knows this I talked to millions every day, we're in the community, we're hearing what really is affecting the average person and that's -- whoever wins the presidency, they have to connect with the middle class, Fourth of July-loving American who is paying at pump and suffering and living check to check. That's what they need to connect to, not 500 people in the audience but the whole country.
SIMONE: Force them to do talk radio that will chase everybody out of politics.
BALLENTINE: I agree.
GADDIS: Lou, I'm not so concerned -- I don't think most Americans are consumed with whether or not they get to sit in the town hall meet, no disrespect to what Warren had to say. The average American is spending between 10 and 19 percent of their income at the gas pump.
DOBBS: Yes, ma'am.
GADDIS: And Americans want to see a solid plan, whether they see it on television, whether they read it in the newspaper, and neither candidate at this particular juncture is laying out a plan to the American people ensuring them that there is some relief coming their way. People are feeling it in their pocket, having to make serious choices between how much gas they're going to buy, or whether to put food on their tables.
SIMONE: The main factor is a shortage of supply. A lot of the politicians have stopped drilling in ANWR, offshore, nuclear plants. That's the only thing that will bring down the price.
DOBBS: Let's talk about that. We have two men here in Senator Obama and Senator McCain, as well as the president and the Congress, two parties, that should have been leading on this issue for a long time. We've got still two candidates who want the job beginning in January, who are basically throwing up their hands without any new ideas. We have shale oil. We have the ability to generate -- to remove our dependency on foreign oil but there's no leadership here.
BALLENTINE: Lou, the problem is not just foreign oil we haven't built a refinery in 30 years. Why are we building one in Alaska? Also, this goes directly to this town hall meeting. Look, you have to connect with the everyday citizen and they're not doing that because they're sitting here and they're talking over people.
DOBBS: Mildred just said and I think Mildred is right but no disrespect, but I believe that men and women, working men and women across the country have had a belly full of folks who talk. I think they're about done with talk. I think - we've got a culture that is starting to equate talk with reality when what is real is action and we're not getting that from our Congress. Do you agree, Mildred?
GADDIS: Lou ...
BALLENTINE: I'm saying the listeners ask the questions, not media people, let the listeners do that.
DOBBS: These two guys can lie and posture to the listener just as easily as the national press corps which has embarrassed itself in the way they're questioning these candidates.
BALLENTINE: Exactly. That's why I ...
DOBBS: Mildred, I'm going to get you in here. I don't care what I have to do to Warren, we're going to get you in here.
GADDIS: You know what, Lou? Remember the old commercial where's the beef? Americans want to know where are the solutions to their problems. Even if they had town hall meetings across America they won't get a chance to talk and shake hands and touch everybody and answer their questions.
There are polls being conducted in this country every day and we know what the issues are that are affecting Americans. Health care. People want to know if they're going to be able to educate their children. What's going to happen with the gas prices. They want some relief.
DOBBS: And you know what? They want to be able to believe just something that one of these candidates says. But you know, I think that they've got a real disconnect right now.
GADDIS: They want something tangible to hold onto.
DOBBS: You bet.
GADDIS: And politicians -- and we know, this is the season, are accustomed to delivering rhetoric. However, though, I think that the pain has become so severe that at some point between now and November, someone definitely has to come up and will come up with some kind of tangible plan.
DOBBS: It would be nice.
BALLENTINE: That's the hope.
DOBBS: Mark, you get the last word.
SIMONE: It's a wonderful, fascinating election, because I don't think you can win either way, with either of these guys. You've got two candidates who've never run anything anywhere ever, and are just making speeches and throwing around talking points and --
DOBBS: And we're all going to have a lot of fun, I'm sure.
Mark, thank you very much. Warren, thank you very much. Mildred, thank you very much.
BALLENTINE: Thank you, Lou.
DOBBS: Appreciate you all being here.
GADDIS: Any time.
DOBBS: You got a deal.
Up next, the results of our -- well, actually right now -- the results of our poll: 96 percent of you responding, saying Senators Obama and McCain should accept my challenge to end the influence of lobbyists, and whoever wins, their administration.
And a reminder to join me on the radio, Monday through Friday, the LOU DOBBS SHOW. Tomorrow, leading political journalist Thomas Edsel from the Huffington Post and David Leitman from McClatchy Newspapers.
And go to loudobbsradio.com to get local listings for the LOU DOBBS SHOW.
See you on the radio, as the saying goes.
Thanks for being with us tonight. Join us here tomorrow. Among my guests will be Senator Evan Bayh, joining us for more on the uproar over the foreign hedge fund investing in CSX Railroad.
For all of us here, we thank you for watching. We wish you a very good night from New York.
THE ELECTION CENTER with Campbell Brown begins right now.
