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Zimbabwe on the Edge; Oil Prices Rise; Was There a Pact to Get Pregnant?

Aired June 23, 2008 - 15:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Hello, everyone. I'm Kyra Phillips live in New York.
DON LEMON, CNN ANCHOR: And I'm Don Lemon live at the CNN World Headquarters in Atlanta.

You're in the CNN NEWSROOM.

Oil prices on the rise today, despite Saudi Arabia's moves to ease the jittery market. At an oil summit yesterday, the Saudis pledged to pump 200,000 more barrels a day if the market needs it. And on top of other recent increases, that means that Saudi Arabia's daily oil output could reach 9.7 million barrels by July. That would be the country's highest production rate since 1981.

But, apparently, it is still not enough. The U.S. was hoping for a much bigger increase. And now new concerns about production issues in Nigeria, that is not helping.

A CNN financial editor says that the Saudis are just not delivering.

(BEGIN VIDEO CLIP)

TODD BENJAMIN, FINANCIAL EDITOR: This meeting was a bust. That's the bottom line on it, Heidi. And the reason it was a bust, we knew a week ago that the Saudis were going to increase production by 200,000 a day. Ban Ki-moon, the secretary-general of the U.N., had said that.

And then some people were thinking they could increase production by as much 500,000 barrels with the new oil field. That didn't happen. So, I think there was tremendous disappointment. And as far as I'm concerned, it would have been better for everyone to stay home and save the jet fuel.

(END VIDEO CLIP)

PHILLIPS: Well, the U.S. says that oil production simply isn't keeping up with global demand. But the Saudis blame a weak U.S. dollar and panicky traders.

The Saudis are boosting their oil output, so why are oil prices still on the rise? We are going to drill for answers later right here in the CNN NEWSROOM. Well, of course, we can't talk about oil without talking about gas. The national average for a gallon of regular slid a tenth of a penny overnight. It is now around $4.07. Now let's put things into perspective. The average price has climbed 16 cents in the past month. Compared to a year ago, prices have jumped more than $1.09 a gallon.

OK. We now know gas prices are high. We know oil prices are high. But who is to blame for all of this? Well, that's the question this House panel is asking today, grilling oil industry executives, analysts and investment experts.

Here is a blunt answer from one analyst.

(BEGIN VIDEO CLIP)

EDWARD KRAPELS, DIRECTOR, ENERGY SECURITY ANALYSIS INC.: We like to blame other people for our problems. We blame the Chinese. We blame the Saudis. We blame OPEC. But I remembered earlier this morning the statement from that great American philosopher Pogo, who said many years ago, we have met the enemy, and he is us.

(END VIDEO CLIP)

LEMON: Well, critics say panicky energy traders are overspeculating and ignoring the realities of supply and demand.

And, of course, the economy, it is issue #1. And we will bring you all the latest financial news weekdays at noon Eastern. It's information you need to know on the mortgage meltdown, the credit crunch, and the rising gas prices -- "ISSUE #1," noon Eastern, right here on CNN.

The candidates can't help but have energy on the brain, with historically high gas and oil prices. Senator John McCain is in Fresno, California. He says the U.S. has what it takes to break the oil habit. It is just a matter of getting back to our innovative roots.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: Energy security is the great national challenge of our time. And rising to this challenge will take all the vision, creativity and resolve of which we are capable. The good news is, these qualities have never been in short supply in America.

We're the country of Edison, Fulton, and two brothers who were named Wright. It was American ingenuity that took us to the moon and brought them back.

(END VIDEO CLIP)

PHILLIPS: McCain says that the government should offer a $300 million prize to whomever develops a better car battery. He also wants to give U.S. automakers a tax credit for every zero-emission car that they sell.

Now, Senator Barack Obama, he's in New Mexico right now talking to working women. That's a group whose vote he's working very hard to get. He also packed in some praise for his former rival and future campaigning partner.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: See, I want my daughters to grow up in an America where they have the exact same opportunities as the boys have, opportunities that are greater than their mother had or their grandmother or their great grandmother, an America where they truly have the same opportunities as sons.

And standing here today, I know that we have drawn closer to this America because of extraordinary women, women like your lieutenant governor and your first lady, the extraordinary woman who I have shared a stage with so many times throughout this campaign, Senator Hillary Rodham Clinton.

In the months and years ahead, I look forward to working with her and to women all across the country to make progress on the issues that matter to American women and to all American families.

(END VIDEO CLIP)

PHILLIPS: Senator Clinton will appear with Obama Friday at a campaign event. It will be their first one together. It's certainly being held in an appropriate place, Unity, New Hampshire.

All the latest campaign news at your fingertips. Just go to CNN.com. We also have analysis from the best political team on television. It's all right there at CNNPolitics.com.

And, of course, much more on the candidates ahead at the top of the hour in "THE SITUATION ROOM" with Wolf Blitzer.

LEMON: Let's talk now about the flooding in the Midwest, drying out upstream, overflowing downstream. We're waiting for the mighty Mississippi to crest this afternoon from Hannibal to Clarksville, Missouri. It will be a couple of days, though, before the danger passes farther south. The waters that flooded entire communities last week have gone down. And what's left is what we're calling a mighty mess.

CNN's Reynolds Wolf is in Grafton, Illinois, one community that is still watching the water rise. And they're watching it very closely.

The end is in sight, though, right, Reynolds Wolf, there in a canoe?

REYNOLDS WOLF, CNN METEOROLOGIST: It certainly -- yes, I certainly am right now.

Hey, Don, check out the sign behind me. It says Great Rivers Tour Boat Company. It's kind of a little bit of a difference today because instead of people going to visit the river, the river is visiting the town.

In places like Grandma's Dream, which is kind of a landmark here, instead of Grandma's Dream and grandma's porch being a place to relax, enjoy lemonade, today, it's a boat dock.

And if you look over, let's take you over to this business. This is Ready's Fish Market, where I'm told their frog legs, their oysters and catfish are phenomenal. Today, they're closed for business, closed, that is, except for the waters of the Mississippi River, a few crawdads and maybe some fish.

Also, if you look there on the building, it shows you the high watermark from 1993, where the water rose to 38.2 feet. You know, we're not done yet. We're expecting the waters to rise a bit more here. In fact, the latest forecasts have it going up about another 11-and-a-half inches.

Just to give you a little bit of perspective, watch this. I'm going to drop the boat paddle in the water to let you know how deep it is. We're going to put this down. There we go, put my hand to the watermark. And voila.

So, from my fist up to the top of the oar, that's your depth. And, again, add another foot on of that, and that's where we should be. But, see, the thing is, all that can change. Every bit of that can change. It all depends on what happens with some of those levees further upstream.

Don, if we have a levee or two that breaks upstream, we're not going to get water levels nearly as high. In fact, it should be dramatically lower. But the problem with that is, it may come at the expense of other communities that may happen to be upriver. So, it's kind of an odd thing.

What is really bad for one community benefits another. But that's been the story for hundreds of miles up and down the Mississippi since this flooding began. It's amazing, though. All that rain in Iowa made its way down into the biggest river on the continent. It's causing so much problems for so many people. And when these waters do recede -- and they are expected to recede as we make our way into next week -- my goodness, what a cleanup we're going to have.

Let's send it back to you, Don.

LEMON: And, Reynolds, you're pretty good at that. And the sad thing in all of this, the folks there are probably getting pretty good at using boats as well.

WOLF: It's the only mode of transportation that works in many places, Don.

LEMON: Yes. Reynolds Wolf, Grafton, Illinois, we appreciate your region. Reynolds, thank you very much for that. Going to walk over here to talk to our Jacqui Jeras.

So, you see what's happening there. And he said if they get any more flooding, we have been talking about these levee breaches more. We thought they were over. Apparently not.

(CROSSTALK)

LEMON: If we get anymore...

JACQUI JERAS, CNN METEOROLOGIST: Maybe not. We're worried about what could happen in Winfield.

Basically, what they're saying, though, is that the worst-case scenario is it may be about 350 homes would be impacted by this. Most of those people have already evacuated.

All right. Well, let's show you where this is on the map here and kind of help spell out the area that we're talking about. It's the town of Winfield. And this area already had the levee overtopped on Friday. Now what they're telling us is that they found a hole in that levee probably from an animal burrowing in there. So, they're asking for volunteers to place about 45,000 sandbags.

This is the last levee in this area holding in the water. So, if this levee breaks, this could blow through this entire area of all this farm field here. And then right up at the top of your screen, you can see that is the town of Winfield.

And this will mostly be impacting southern parts of the state. Now, the water there is still rising. You're going to be cresting late today into early tomorrow. Everybody else up here has already crested now today. We're looking for Clarksville to be cresting late this afternoon.

And you head down towards Saint Louis and you're kind of at that crest level and you are going to stay there throughout much of the rest of the week as well.

(WEATHER UPDATE)

PHILLIPS: Well, a bit of a break for firefighters in Northern California. The winds are somewhat calmer today. So, crews have a chance to make headway against hundreds of fires caused by lightning.

The largest is right at the heart of California wine country, Napa Valley. It has burned nearly six square miles, forcing hundreds of families to leave that area. Those fires are burning from south of San Francisco, by the way, all the way to the Oregon border.

And there was no Monday rush hour going east on the Riverside Freeway in Anaheim, California. This is why. It's been a crime scene all today. Police shot and killed a suspect right there on the road just after midnight. They think that he was the same guy who exposed himself to children near Disneyland yesterday and shot an officer in the leg. Officers were tailing him when he wrecked his car, jumped out of his car with a gun and just started shooting. Another driver was shot in the gun battle, but should be OK.

LEMON: Let's talk now about a wife that charged with killing her husband. You're getting a look at the alleged murder weapon.

PHILLIPS: And the opposition leader drops out of the runoff election, fearing for his life. What's next for Zimbabwe? Our expert warns of possible civil war.

We are going to hear from the opposition leader, Morgan Tsvangirai, right ahead on the CNN NEWSROOM.

(COMMERCIAL BREAK)

PHILLIPS: Well, one day after pulling out of Friday's runoff election against Zimbabwean President Robert Mugabe, the country's main opposition leader is holed up in the Dutch Embassy in Harare. Morgan Tsvangirai says that he fears for his life and believes a fair election is impossible.

He spoke with me just a short time ago.

(BEGIN VIDEO CLIP)

MORGAN TSVANGIRAI, ZIMBABWE OPPOSITION LEADER: Our biggest fear is that we are facing a 2 million percent in the poverty, and, thus, almost 90 percent of the population. It is only a few elites in the dynasty, President Mugabe's close allies, that are benefiting from the loot and from the destruction of our economic prosperity and economic fortune.

So, my fear is that the people of Zimbabwe will become more desperate. And, in fact, if we have three million or four million Zimbabweans leaving the country for political and economic reasons, we are likely to double that figure, because no one will feel safe to stay in a country in such a situation.

(END VIDEO CLIP)

PHILLIPS: Now, some experts warn of civil war if the crisis doesn't end soon.

CNN's David McKenzie has the latest.

(BEGIN VIDEOTAPE)

DAVID MCKENZIE, CNN CORRESPONDENT (voice-over): The burden of politics falls on ordinary Zimbabweans. They have suffered through weeks of beatings, intimidation and arrests, the opposition quitting the race.

The state broadcaster, as if nothing has happened, still pushing the president, who now the sole candidate. There's been an international outcry. GORDON BROWN, BRITISH PRIME MINISTER: I think the whole world now sees the regime for what it is. I think there's a consensus in this house. The consensus in this house that what has happened is intolerable. We want an immediate end to violence, because the loss of life is unacceptable. But we also need a way forward for the people of Zimbabwe.

MCKENZIE: In a phone interview with CNN, President Mugabe's spokesman disputed the claims of violence by the ruling party and said the government is going ahead with the runoff.

GEORGE CHARAMBA, SPOKESMAN FOR ROBERT MUGABE: There's nothing on this good earth that will stop the election on the 27th. Even if Tsvangirai were to withdraw formally, which he hasn't done, the elections will still proceed.

MCKENZIE: By pulling out of the election, the Movement For Democratic Change hands Robert Mugabe a sure victory. The opposition is putting its faith in verbal pressure and African leadership on the Zimbabwe issue.

ROY BENNETT, MOVEMENT FOR DEMOCRATIC CHANGE: This hollow victory that Robert Mugabe has given himself through unprecedented violence, we need every God-fearing nation to stand up, and stand up for the people of Zimbabwe by delegitimizing this regime and giving it no recognition whatsoever.

MCKENZIE: Some exiled Zimbabweans, though, on the streets of Johannesburg had hoped for more from the MDC.

UNIDENTIFIED MALE: To quit is not the (INAUDIBLE) It's better to fight back until you win.

UNIDENTIFIED MALE: What I am advising him, this is to hang on. The day will come when Mugabe will try to escape, and there will be nowhere for him to hide. He doesn't know. As wicked as (INAUDIBLE) is one day, it's going to be judgment day for you, Mugabe.

MCKENZIE: But with President Mugabe determined to stay in power, some experts on the region see a disturbing endgame for Zimbabwe.

ROSS HERBERT, ZIMBABWE ANALYST: Real risk of civil war, of regional instability, and it is not business as usual. Zanu-PF is not reformable. They have essentially embraced a philosophy that says they are right to beat and humble anybody who opposes them, and they're going to beat the nation into submission.

MCKENZIE: A nation whose future may now depend on pressure from the world and African leaders, who many say have not already recognized their plight.

David McKenzie, CNN, Johannesburg.

(END VIDEOTAPE)

LEMON: The European Union is freezing the assets of Iran's biggest bank. And more sanctions are on the way. Tomorrow, the E.U. says it will penalize several Iranian companies and senior experts linked to Iran's nuclear program.

It is the latest push by the West to force Iran to suspend uranium enrichment, a key process in making nuclear weapons. Iran insists its nuclear program is for peaceful purposes.

U.S. troops being ambushed in Iraq is nothing new, but what happened today was unexpected. The U.S. military says an American soldier and an enemy were killed and five others wounded near Baghdad. Now, Iraqis say a local city council member did the shooting. And three soldiers actually died in the gunfire.

The city council member was apparently killed when the U.S. forces returned fire. The shooting happened after American soldier and local officials attended a ceremony in an open park.

New progress is being made in the effort to dismantle North Korea's nuclear program. News organizations, including CNN, have been invited to be on hand as North Korea blows up a key part of a nuclear reactor on Friday.

In Beijing, visiting U.S. Assistant Secretary of State Christopher Hill says a new round of six-nation talks on the North Korea nuclear program will start soon.

And, as early as Thursday, a U.S. official in Washington says North Korea could hand in a long-delayed list of its nuclear programs.

PHILLIPS: The Saudis are boosting their oil output, so why are oil prices still on the rise? We are going to drill for answers.

LEMON: He may some of us question our beliefs. He challenged what we can say on TV. But, most of all, he made us laugh. We are remembering comedic genius George Carlin in the CNN NEWSROOM.

(COMMERCIAL BREAK)

(BUSINESS REPORT)

PHILLIPS: A recession, super investor Warren Buffett thinks we're already in one. Former Fed Chief Alan Greenspan says it's likely.

Ali Velshi has some tips to keep you "Right on Your Money."

(BEGIN VIDEOTAPE)

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT (voice-over): Record high gas prices, falling home values, and the lowest level of consumer confidence since 1980 are all signs of a possible recession. Personal finance expert Jonathan Clements says follow these steps to keep yourself recession-proof.

JONATHAN CLEMENTS, FINANCE EXPERT: First you want to cumulate cash. If you don't have a lot of money in the bank, money market fund, this is time to accumulate it. Two, get your debts under control. Pay off those credit cards debts. Think twice before trading up to a bigger home.

Three, keep funding the 401(k) plan. Put enough to get your full employer match. Even if you lose your job and even if you end up cashing out that 401(k) plan and pay tax penalties, you will come out ahead.

VELSHI: Ali Velshi, CNN, New York.

(END VIDEOTAPE)

LEMON: Well, a bolt of lightning literally knocked him out of his shoes, and he lived to talk about it. We will have his story coming up in the CNN NEWSROOM.

Also, the story that has been much discussed around the watercooler, this so-called pregnancy pact in Gloucester, Massachusetts. Well, the mayor says she can't confirm any of it. We have got the writer of the story coming up live in the CNN NEWSROOM. You don't want to miss that.

(COMMERCIAL BREAK)

PHILLIPS: Hello, everyone.

I'm Kyra Phillips live in New York.

LEMON: And I'm Don Lemon live at the CNN World Headquarters in Atlanta.

You are in the CNN NEWSROOM.

PHILLIPS: 3:31 Eastern time. Here are some the stories we're working on in the CNN NEWSROOM.

Did a group of Gloucester, Massachusetts high school girls make a pact to get pregnant?

The mayor says there's still no evidence to back up that claim, first made by the girls' principal. Seventeen of his students got pregnant this year -- four times the usual number.

More than 800 people still missing two days after a ferry capsized in a typhoon off the Philippine coast. Eleven people now confirmed dead.

Amy Winehouse's agent tells CNN the 24-year-old singer has early stages of emphysema. A London newspaper quotes that her father is saying that crack and cigarettes are to blame and he fears that his daughter could die if she doesn't change her ways.

LEMON: Saudi Arabia is pledging to pump more oil than it has in more than a quarter century. But it's still not enough to reign in a runway market. Crude prices are on the rise today, a day after the Saudis pledged to roll out more barrels. Here's CNN's Jim Boulden.

(BEGIN VIDEOTAPE)

JIM BOULDEN, CNN CORRESPONDENT (voice-over): With no consensus coming out of Jeddah on why oil prices are so high, a pledge by Saudi Arabia to pump more oil during Sunday's energy summit did little to ease concerns. Markets on Monday appeared to care more about Nigeria, where attacks by militants on oil production facilities have cut output.

MARK SPELMAN, ACCENTURE: What happened in Nigeria is a very good example of why the oil fundamentals are so difficult at the moment, because you just need a small disruption in a country like Nigeria and what that does is it impacts the market.

BOULDEN: Since few countries beyond Saudi Arabia can pump any more oil in the short-term, there was no expectation that its pledge for more supply would bring the price down. Prices did ease a little last week when China announced it would raise domestic fuel prices, showing that many feel demand is why the price is so high.

Still, some countries like the United States are looking at ways to increase supply. President George W. Bush wants the U.S. Congress to lift the ban on offshore drilling for oil and gas. But Democrats continued this weekend to reject that call.

REP. ROBERT WEXLER (D), FLORIDA: There won't be a drop of oil that will come from these new leases until 2017. That's not going to provide relief at the pump. But what it will do is it will jeopardize our tourism in Florida, it will jeopardize all the shipping lanes. It will create all kinds of havoc.

BOULDEN: One of the ways that might ease oil prices in the short-term is not in the hands of those who attended Jeddah. Since oil is priced in U.S. dollars, a rebound for the weak dollar could help.

JAVIER BLIS, "FINANCIAL TIMES": The International Monetary Fund has estimated that oil prices are 25 percent higher than they should be because of the weakness of the dollar. But at current prices, that means still that we will have to pay -- even if we resolve the problem of the dollar, oil prices well over $100. And that's just too high for the war economy.

BOULDEN: Analysts say a global economy that oil could push into recession.

(on camera): And that would certainly ease demand for oil. But it's not an easy solution to swallow and one big reason why oil producing nations and consuming nations have vowed to keep talking after Jeddah.

Jim Boulden, CNN, London.

(END VIDEOTAPE) PHILLIPS: A new poll from ABC News and "The Washington Post" offers some insight about both racial and age prejudice in politics. Three out of 10 respondents, both black and white, admitted they have feelings of racial bias. Fifty-one percent of whites in the poll say that they prefer McCain. Thirty-nine percent said they would vote for Obama. But the poll also found that more people consider the age of the candidate more important than the race. McCain will be 72 in August. If he wins, he would be the oldest person ever sworn into a first term presidency.

LEMON: All right, let's check now our Political Ticker. And leading the Ticker today, John McCain's battery bounty. The Republican presidential candidate says the government should offer a $300 million prize to the person who develops a more powerful and efficient car battery -- one that's a quantum leap over the hybrid and electric batteries out there today, but still affordable. McCain believes the prize is a small price to pay if it helps the U.S. kick its oil habit.

Barack Obama says speculators bear a lot of the blame for the rising cost of oil. The Democratic presidential candidate says if he's elected president, he'll choose a loophole that lets energy traders work outside federal regulations. Now, that's known as the Enron loophole, named for the energy company that famously crashed just a few years ago.

Check out our Political Ticker for all the latest campaign news. Just log onto CNNPolitics.com, your source for all things political, and get more on the presidential candidates on the trail today at the top of the hour in "THE SITUATION ROOM".

PHILLIPS: Well, George Carlin was a thinking man's comic, saying those seven words you can't say on TV and getting in trouble for it. He was targeted -- well, he targeted the stuff that we collect, right, the things that we believe, even our favorite sports. And he made us laugh at our own quirks and hypocrisies.

LEMON: That's right, Kyra. And it's so sad. Carlin died last night of heart failure in Santa Monica, California. He was 71-years- old. No subject, though, was too taboo to Carlin -- not even CNN.

(BEGIN VIDEO CLIP)

GEORGE CARLIN, COMEDIAN: People like to sound important. Weathermen on television talk about shower activity.

(LAUGHTER)

CARLIN: It sounds more important than showers. I even herd one guy on CNN talk about a rain event. I swear to God. He said Louisiana is expecting a rain event. I thought holy (EXPLETIVE DELETED), I hope I can get tickets to that.

(LAUGHTER)

(END VIDEO CLIP) LEMON: Well, you can't say that word on TV, but I understand you've got some good memories of him. You've interviewed just about everybody sitting here on this desk.

PHILLIPS: Well, you know, when you interview comedians, you get very nervous, because they always want to one-up you or they want to embarrass you.

LEMON: Right.

PHILLIPS: Or they want to do something, Don, to make you look like an idiot, right?

So I really prepared for George Carlin. And we had an incredible interview. But one thing I said to him before we started the interview, I said, you know, we can't say the "F" word during this entire interview, OK?

You always do it, you can't do it. This is CNN. And, you know, and I've got a sailor mouth, so we could get into big trouble here.

So, he actually didn't. He was very good. And he...

LEMON: Wait, look at your hair, though.

PHILLIPS: Yes. That's enough for an F bomb.

(LAUGHTER)

PHILLIPS: But anyway, so he gives me a book, you know, at the end of the interview. And he said, hey, I had a great time. That was so much fun. I said same here. I really enjoyed it. So you know how he signed the book, Don?

LEMON: I can only imagine. Yes.

PHILLIPS: Dear Kyra...

LEMON: Blank you.

PHILLIPS: Yes. Dear Kyra, (EXPLETIVE DELETED). Love, George.

(LAUGHTER)

PHILLIPS: So you know he got it in there.

LEMON: Oh, he's a comedian, though. He's a comedian. I should say look at the hair.

Did you see Tony Harris's hair, too, as well?

He had a little 'fro there.

PHILLIPS: Oh.

LEMON: I have one occasionally, so... PHILLIPS: Tony had a fun time with that, too.

LEMON: It's not a big deal.

PHILLIPS: But, you know, I -- he ended up going into rehab not long after that interview. I don't want to take credit for that. But, anyway...

(LAUGHTER)

PHILLIPS: But I sent him an e-mail saying hey, thinking about you. I hope you're making everybody laugh and that you get clean and you come out a better person. And put it this way, he had more expletives in the e-mails and that I wish I could read them to you, but I can't.

But, you know, he really was a -- he was a great guy. He was very heartfelt about life. And he went into rehab to be committed to changing his life. And it's really sad to see him go. He was one of those witty guys that you just love to spend time with.

LEMON: Yes. And, you know, it's -- always, when you interview someone and, you know, you get to know them a little bit more than just watching them on television or seeing their work. So I'm sure it's very tough for a lot of folks.

Now, Kyra, I want to share with you some of the I-Reports and tell you about what folks are saying. I-Reporters are sharing their George Carlin memories. And we want to you do it, as well.

Let's read one now from Alexis Karlin. And she writes: "When I was little, my dad had this blank box car. And one day he put a George Carlin tape in it and it got stuck. So for a year until the car died, we listened to this George Carlin tape over and over and over again. And I won't miss that car, but I will miss George Carlin."

I wonder if it was an eight track?

PHILLIPS: Probably. He goes that far back.

LEMON: Yes.

PHILLIPS: Well, Christopher Sargent of Laurel, Maryland, Don, writes: "George was many things to me -- father, brother, uncle, teacher and friend, despite never actually meeting him. He was one of the few things my father and I had in common. He made us laugh. His gift was to make us think about everything. George, I'll miss you. Just be sure to let us know if Jesus actually did bring the pork chops."

And you'll remember, that was the title of one of his last books.

LEMON: Yes. He will be missed, Kyra.

PHILLIPS: Well, you can join Larry King tonight live, Don. And it's going to have an exclusive look at George Carlin's humor and life with comedian Jerry Seinfeld; also, Carlin's daughter Kelly. She's a pretty special woman. The special hour of remembrances begins at 9:00 p.m. Eastern right here on CNN.

(COMMERCIAL BREAK)

LEMON: All right, now to a developing story that's been happening right here on CNN. And, really, this interview is the only place you're going to see it for now. We have an exclusive interview with the mayor of Gloucester, Massachusetts. She says there's no grounds for the claim by the principal of Gloucester High School that many of the 17 students who got pregnant this year did so on purpose. But the case isn't closed.

(BEGIN VIDEO CLIP)

MAYOR CAROLYN KIRK, GLOUCESTER, MASSACHUSETTS: We have not been able to confirm existence of a pact. We are seeking to understand whether it's based in rumor or in fact.

(END VIDEO CLIP)

LEMON: The principal told "TIME" magazine the girls agreed to have their babies and raise their children together. And "TIME" magazine reporter -- she is standing by her story. Her name is Katie Kingsbury. She wrote the article.

She joins us now from New York. Time Warner is the parent company of "TIME" magazine and CNN. We have to say that.

You joined us last week. You told us about this story, about uncovering it. And, really, you have set off a firestorm.

What do you say to the mayor who just today, maybe an hour or two ago, said you know what, we can't confirm this, basically refuting your story?

KATHLEEN KINGSBURY, "TIME" MAGAZINE: I think that the mayor right now is trying to deflect attention from the fact that her community is in crisis. And I not only verified this story with the principal, I also spoke with several other adults in the community who assured me that it was correct, as well as many classmates and friends of the girls that were involved.

LEMON: OK. So, Katie, you spoke -- and even you said the mayor and the superintendent, am I correct, back on June 11th or somewhere during that, also told you a very similar story than what -- than what you wrote and then now they're saying that's not so?

KINGSBURY: The mayor and the school superintendent told me on June 11th that there were a group of girls in school who were intentionally trying to get pregnant, according to school officials. Now it sounds as though there isn't much -- they haven't verified -- clarified why they've changed their statement -- their position on that.

LEMON: OK. So, again, you stand by your story? KINGSBURY: Absolutely.

LEMON: All right. So the mayor is putting this -- and the superintendent -- and I spoke to the superintendent last week and saw the mayor here on television. They are saying you know what this principal is sort of the link to all of this, that hasn't been proven, and they haven't spoken to.

Have you spoken to the principal who apparently is the main person in all of this?

KINGSBURY: No. The principal hasn't spoken publicly since I spoke with him on June 11th. I would like to hear from him and find out why -- you know what other details he can add to this story. But I think without hearing from him, I think that it's hard to immediately doubt what he told me.

LEMON: So why haven't you heard from him? Have you called him?

I'm sure you've reached out to him.

Why haven't you heard from him?

KINGSBURY: Of course I've reached out to him. I'm not sure why I haven't heard from him. I would be happy to take his call.

LEMON: Yes. He was not at the press conference, as well?

KINGSBURY: Exactly.

LEMON: Have you spoke to the superintendent or the mayor?

KINGSBURY: I spoke with the school superintendent this morning. He told me that there was no doubt about what the principal had told me in terms of my reporting. But he said that there had been not other Independent verification. I think that it's hard to say in five days that they've canvassed the entire city.

LEMON: Yes. Did you challenge them on what they said, because did you ask them, you know, you told me one thing and now you're sort of backtracking and telling me another thing?

What did they say to that?

KINGSBURY: Well, so far their answer is, is that they're not clear about the timing themselves. One thing that Mr. Farmer did tell me -- the school superintendent -- was is that they thought that there may be a pact, but it had been made after the girls had been pregnant, to stay -- to get to -- to stay together and raise the babies together.

LEMON: Yes, well, we want to get to the bottom of this.

And Katie Kinsgbury from "TIME" magazine, we appreciate your joining us in the CNN NEWSROOM.

And, again, your reporting on this really has started a firestorm. Best of luck to you.

Any new developments, you promise to come back and talk to us?

KINGSBURY: Absolutely.

Thanks.

LEMON: Thank you.

PHILLIPS: Straight ahead a bolt of lightning literally knocked him out of his shoes and he lived to talk about it. We'll have his story right here in the CNN NEWSROOM.

Also, he's not the kind of pooch that people will run up and pet -- poor guy. But he's the top dog now and you'll see him in all his eerie glory.

(COMMERCIAL BREAK)

PHILLIPS: Well, a Massachusetts man is counting his blessings today. On Friday, he was on a walk with his wife celebrating his 49th birthday when he was struck by lightning.

(BEGIN VIDEO CLIP)

SCOTT O'DAY, SURVIVED LIGHTNING STRIKE: When I got struck, I got knocked out of my shoes and thrown four or five, six feet forward and I landed on some rocks.

TUCKER O'DAY, SCOTT'S WIFE: It felt like a mild electrical shock to me and just pushed forward. The visual I have is just turning around and seeing Scott flat on his stomach and just blood around his face staring straight ahead, not responding. And I thought he was gone.

(END VIDEO CLIP)

PHILLIPS: Clean living saved his life. Tucker O'Day says that she held her husband until he regained consciousness. Then they found someone with a cell phone and they called 911. O'Day suffered cuts and scratches, but otherwise he's OK.

An elderly Wisconsin woman is going to have to retake her driver's test. Not only did she crash her car through a fence around Milwaukee's airport, she didn't even realize she'd done it -- and she kept driving. Deputies and a flat tire finally stopped her. Everyone's OK. She never got to a runway, by the way.

In her defense, she says it was raining really hard. She just couldn't see.

LEMON: That sounds like something out of an "Airplane" movie. All right, well, you're getting a look at the alleged murder weapon in the case of a Phoenix woman charged with killing her husband. Police she ran him down with a red Dodge pickup truck as he walked down the sidewalk and she took out a neighbor's brick wall in the process of all of this. The couple had apparently been arguing on Saturday, but detectives aren't sure what the dispute was all about.

Now, this is a sign about nine years in the making. Hurricane Floyd wasted the St. Paul AME Zion Church in North Carolina back in 1999. It pretty much just washed it away. And there was no money to rebuild it. Only the church bell was saved. But recently, a faith- based disaster relief group got involved. They rebuilt the church in eight days. It opened yesterday.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We thought there was no light at the end of the tunnel. But look at what God has done for us.

UNIDENTIFIED MALE: It really makes you feel good to help put people back where they were.

UNIDENTIFIED MALE: We welcome you all to your new house of worship.

(END VIDEO CLIP)

LEMON: Fantastic. Well, the name of the group that rebuilt the church, Messiah's Carpenters. Very nice. Incorporated -- they incorporated the bell from the old church into the new church.

PHILLIPS: Well, speaking of the bell, the closing bell and a wrap of all the action on Wall Street straight ahead.

Stay with us.

(COMMERCIAL BREAK)

LEMON: Well, look at that.

Time now to check in with CNN's Wolf Blitzer.

PHILLIPS: He's stranding by live in "THE SITUATION ROOM" to tell us what's coming up at the top of the hour.

Hey, Wolf.

WOLF BLITZER, CNN ANCHOR: Thanks very much, guys.

Lots coming up, including John McCain's chief strategist's disturbing belief. He tells a magazine that another terror attack on the United States would help McCain become president.

Why does he think that and what does McCain himself think of that?

We're watching the story.

Also, will making up be hard to do?

Barack Obama and Hillary Clinton now set to come together for the first time since their bitter rivalry ended. You're going to hear just where that will take place.

Have the wounds of the primary season been healed?

And are all the Democrats likely to follow their lead?

And as Condoleezza Rice pushes peace in the Middle East, why is Hamas now likening her to a snake that's trying to kill a cease-fire between Hamas and Israel?

All that and a lot more coming up here in "THE SITUATION ROOM" -- back to you guys.

PHILLIPS: Wolf, are you a dog lover -- Wolf.

BLITZER: I like dogs, yes.

PHILLIPS: What about an ugly dog lover?

(LAUGHTER)

BLITZER: I like ugly dogs. I like cute dogs. I like all sort of dogs.

LEMON: Oh, boy.

PHILLIPS: What about a hideously ugly dog lover?

LEMON: Oh, boy.

PHILLIPS: Well, this is...

BLITZER: That's cute. That's a sweet little dog.

PHILLIPS: Yes. It's only the face a mother could love.

BLITZER: Yes.

PHILLIPS: This is Gus. He's this year's winner of the ugliest dog contest. You won't see that in "THE SITUATION ROOM," folks. Just three legs, one eye, he's hairless, Chinese crested. He bested the competition in Petaluma, California. The anti-beauty is some kind of underdog. He's lived a hard life now, folks. He lost an eye during a cat fight and he lost his leg to cancer. And his owner says the cancer has returned, so she's going to use the prize money to help pay for his treatments.

The closing bell is about to ring on Wall Street.

LEMON: You can't laugh at that.

OK. You know what?

Susan Lisovicz is standing by with a final look at the trading day -- hi, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: He is a cute dog. And it's a heartwarming story.

(STOCK MARKET REPORT)

PHILLIPS: Thanks, Susan

LEMON: Thank you, Susan

Now let's turn it over to "THE SITUATION ROOM" and Mr. Wolf Blitzer.