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California Job Freeze; Fueling Blame: No Energy Answers in Congress; Troop Cuts in Iraq; Karadzic Plea Hearing; McCain and Obama in Their Own Words; Staying Safe on Your Cell

Aired July 31, 2008 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: Good morning again, everyone. You're informed with CNN.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Hi there, everybody. I'm Heidi Collins.

Developments keep coming into the CNN NEWSROOM on Thursday, the 31st of July.

Here's what's on the rundown.

One of the most notorious figures of the Bosnian civil war making his first appearance at The Hague War Crimes Tribunal this morning.

HARRIS: California budget crisis. Thousands of state workers set to lose their jobs today. Live coverage this hour.

Issue #1 for skycaps: airline baggage fees costing them on payday. Tip cutbacks -- in the NEWSROOM.

California facing a major budget crisis. Its employees facing a crisis of their own. Governor Arnold Schwarzenegger is threatening to lay off 22,000 government workers today.

The latest from reporter Michelle Kane in Sacramento. She's with CNN affiliate KOVR.

So, what's going on here, Michelle?

MICHELLE KANE, REPORTER, KOVR: The mood right now, everyone is holding their breath right now, Heidi, because the governor, three hours away from signing an executive order to cut state workers' pay. Why? The state budget is a month overdue and the governor wants to make sure California doesn't run out of cash.

Now, this order would affect more than 200,000 workers, slashing their pay to $6.55 an hour, the federal minimum wage. There will also be layoffs of part-time and temporary workers, a reduction in overtime, and a hiring freeze.

Now, the state comptroller here in California says he will ignore that order. He will continue to issue paychecks. Legal experts aren't sure what could happen, but say this could play out in court. Governor Schwarzenegger will hold that press conference at 11:00 this morning California Time. That's when he's expected to sign this order.

Now, state workers, again, they're holding their breath, saying they won't be able to pay their bills if this happens. Now, once a budget is signed, we understand workers would get back pay in full. They just hope this deal is not signed because, again, they're hanging in the balance here -- Heidi.

COLLINS: Oh sure, I bet they are. I mean, it almost sounds like they're verging on so time of version of a government shutdown almost.

KANE: I'm sorry. Again?

COLLINS: I'm saying it almost sounds like they're verging on some type of government shutdown.

KANE: And that's what -- they're hoping to avoid this because, again, we're in a mortgage crisis right now. A lot of these workers say they cannot pay their bills. They cannot afford their mortgages if this happens.

So they're hoping that this doesn't happen again. The state comptroller, he's doing everything he can. He says we can actually issue those paychecks through September. They're just hoping the legislature and the governor will get together and they will sign this budget.

COLLINS: All right. Well, we're watching that one closely, obviously.

Michelle Kane, thanks so much.

HARRIS: Your wallet, issue #1. And this morning, new numbers to gauge the health of the economy.

The government says the economy grew 1.9 percent last quarter. That's more than double the rate of first-quarter growth. The government's stimulus checks get much of the credit.

But last week, jobless claims jumped to their highest level in five years. That number much worst than expected.

These are the best of times for ExxonMobil. The oil company says its second quarter earnings rose almost 14 percent to, get this, $11.68 billion. That is the biggest quarterly profit ever by a U.S. company.

Oil prices have climbed since this time yesterday. That's for sure. One reason why is intentions over Iran's nuclear program.

Gas is down more than a penny and a half this morning. Today's national average, about $3.91 a gallon.

Let's get you to the Big Board, New York Stock Exchange right now, to see how markets are reacting off of session lows. Here we're down triple digits. Earlier, at the start of the day, we are down just 39 points, which is a rebound.

The Nasdaq is up this morning. The S&P up as well.

We'll be checking the markets with Susan Lisovicz later this hour, right here in the NEWSROOM.

COLLINS: Talking energy in coal country. President Bush speaking right now in West Virginia. He is at a meeting of coal executives. The president is stressing the need for variety of power sources from coal to wind and nuclear power.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Two hundred and fifty years of reserves should say, gosh, we're in good shape. You know? We've got energy available right here in the United States of America.

This new technology will help us use those reserves, but we can also use nuclear power, too. I'm a big believer in civilian nuclear power. I think it makes a lot of sense.

People out there in the environmental community talk about the need for zero emission renewable fuel. There's one right there called nuclear power.

(END VIDEO CLIP)

COLLINS: President Bush also stressing his views that lawmakers should lift a ban on offshore oil drilling.

HARRIS: President Bush blaming Congress for not doing enough about the energy crisis, and lawmakers racing to point fingers at each other before they go on a month-long break.

CNN's Brianna Keilar is in our Washington bureau.

Brianna, good morning to you.

Are we getting any closer to some kind of a deal here, or is it just the finger pointing and the back and forth?

BRIANNA KEILAR, CNN CORRESPONDENT: Yes, I would say that's about right, Tony. Congress still deadlocked over this issue of offshore drilling.

Republicans want to lift the congressional ban on it, Democrats say that it's not a solution and that oil companies should just drill on the leases that they already have. And Republicans are really pointing to a growing majority of Americans who are in favor of offshore drilling, but Democrats point to the fact that when you look at who Americans blame for high gas prices.

Congress, and specifically the Democrats who lead Congress, aren't really high up on the list there. A majority of them actually blaming President Bush, foreign oil producers and, above all, oil companies. This backed up by a new CNN/Opinion Research poll.

And so today, Democrats seized on new record oil profits. News of this that ExxonMobil reported the largest quarterly profit in U.S. history today.

(BEGIN VIDEO CLIP)

SEN. CHARLES SCHUMER (D), NEW YORK: We are shocked about how the oil companies are spending those profits. They tell us they want to do more domestic production. They tell us they need to drill offshore. They tell us that they can find oil on the mainland.

And what do they do with their profits? They buy back their stock simply to increase their share price.

(END VIDEO CLIP)

KEILAR: So that's just one side of the story here though. House Republicans having a press conference in a few minutes as well, where they'll no doubt blame Democrats for not allowing votes on drilling before Congress leaves Washington, Tony, tomorrow, yes, for a month- long break.

HARRIS: Oh, my. All right.

Brianna Keilar for us from our Washington bureau.

Brianna, thank you.

COLLINS: The U.S. general calling the shots in Iraq expected to call for troop cuts soon.

Live to CNN Senior Pentagon Correspondent Jamie McIntyre.

Jamie, obviously this is great news for the families of the troops.

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, that's right, Heidi. You know, with the commander in chief, President Bush, declaring the surge officially over, noting that violence is down in Iraq, the question now is how fast and how soon can U.S. troops begin to come home or, perhaps, be shifted to that other front in the war in Afghanistan.

Just to note, this month in Iraq, only nine U.S. troops were killed. That's the lowest level since any month since the war began. Compared to last month, 29 last month. And a year ago at this time, 79 U.S. troops died in the month of July.

But while President Bush says the surge is a success, he is far -- he stopped short of declaring victory in Iraq.

(BEGIN VIDEO CLIP) BUSH: Violence is down to its lowest level since the spring of 2004, and we're now in our third consecutive month with reduced violence levels holding steady. General Petraeus and Ambassador Crocker caution that the progress is still reversible. They report that there now appears to be a degree of durability to the gains that we have made.

(END VIDEO CLIP)

MCINTYRE: Reversible, but durable. Those were the key words in the president's statement.

But while the U.S. desperately needs additional troops for Afghanistan, General David Petraeus is not rushing to make that decision about troop drawdowns in Iraq which would make the Afghanistan increases possible. Aides close to General Petraeus say he will make his recommendation at the end of next month or early September, just before he leaves his command in Iraq and takes over as the U.S. Central commander, who, by the way, will then be responsible for Afghanistan.

One early hint that those troop cuts are coming, we've already been told that some smaller units that were supposed to be headed to Iraq have been told to stop, don't pack their bags, stay where they are right now, while the general makes these decisions in consultation with other commanders in Iraq -- Heidi.

COLLINS: All right, Jamie, very good.

Our Senior Pentagon Correspondent Jamie McIntyre.

Thanks, Jamie.

HARRIS: And right now, one of the most notorious figures from the Bosnian war getting his day in court. You're looking at live pictures now from The Hague.

Former Bosnian/Serb leader Radovan Karadzic stands accused of genocide and crimes against humanity. He will be asked to enter a plea. Among other things, Karadzic is accused of masterminding the Srebrenica massacre and the siege of Sarajevo.

We will keep you updated on his appearance throughout the morning.

COLLINS: Terror on a bus, it happened in Canada. A passenger stabbed and decapitated last night.

Horrified witnesses say the young man was sleeping, his head against a window, when the person sitting next to him took out a butcher-type knife and attacked. That sent the other passengers scrambling to the exit. This disturbing account now from a witness who was sitting right in front of the attacker.

(BEGIN VIDEO CLIP) GARNET CATON, WITNESS: Everybody got off the bus. Me and a trucker had stopped, and the Greyhound driver ran up to the door to maybe see if the guy was still alive, or we could help or something like that. And when we all got out, we had seen that the guy was cutting off the guy's head.

He was cutting off the guy's head there. And he saw us, he came back to the front of the bus, told the driver to shut the door. He pressed the button, and the door shut, but it didn't shut in time. And the guy was able to get his knife out and take a swipe at us.

(END VIDEO CLIP)

COLLINS: Boy. I don't know what to say. No one else was hurt.

Passengers, armed with crowbars and wrenches, kept the man inside the bus until police arrived. He is now under arrest.

HARRIS: Boy.

OK. Some Iraqi athletes get some good news. They're going to the games after all.

(COMMERCIAL BREAK)

HARRIS: Putting out fires. Boy, nice shot there.

Crews in California reportedly have contained about 40 percent of the wildfire near Yosemite National Park. Several residents being allowed back into their homes near the park. Still, evacuation orders remain in effect for about 100 homes near Midpines. That's about a dozen miles from the park.

The fire has burned more than 32,000 acres and destroyed 21 homes.

(WEATHER REPORT)

COLLINS: The governing body of the Olympics backing off a bit. It's now letting some of Iraq's athletes compete in the Beijing games.

CNN's Morgan Neill has that.

(BEGIN VIDEOTAPE)

MORGAN NEILL, CNN CORRESPONDENT (voice over): For Iraqi Olympic sprinter Dana Hussein, it's hard to know just how to react. She was overjoyed to learn she would be going to the Beijing Olympics.

"I was very happy," she says. "I acted like a child, laughing and jumping."

But sad for three fellow Iraqi athletes who won't be competing.

"I went through what they're going through, so I feel their suffering," she says. The International Olympic Committee banned Iraqi athletes last week, charging Iraq with political interference in its national Olympic committee. Iraqi officials traveled to IOC headquarters in search of a last-minute compromise. Late Tuesday they found it.

PERE MIRO, IOC: I agree that we understand much better each other and we are very happy to announce you that the Iraqi Olympic Committee will be in the Beijing Olympic games.

NEILL: Iraq agreed to hold IOC-supervised elections to form a new national Olympic committee by the end of November. But the agreement came too late for some of the seven athletes who had hoped to compete. The deadline for their events had already passed.

"I blame the three entities: the International Olympic Committee, the Iraqi Olympic Committee, and the Iraqi government," says Ali Mohammed, who had hoped to compete in judo. "They have issues among themselves, and in the end, we were the victims."

While Iraq's government spokesman called it a great victory for Iraq, scholar Haider Nowzat didn't agree. "A victory is if all Iraqi athletes compete," he said.

Discus thrower Haider Nasar (ph), who will be competing, says it is his fellow athletes who are suffering the most.

In Baghdad, some called the ruling unfair, but more common was the feeling expressed by this man, who said the lifting of the ban was like a gift to Iraq. We asked why sports are so important here. "It's the only thing that unifies Iraqis," he said.

Sprinter Dana Hussein knows she will be carrying the weight of her country with her to Beijing, but she's undaunted. "Running means so much to me," she says. "Even if I lose everything, it doesn't matter, as long as I'm reaching my goals."

(on camera): After saying Tuesday that only two Iraqi athletes would be able to compete, the IOC now says two more places have become available. So four Iraqi athletes, two track and field, and two rowers, will now head to Beijing.

Morgan Neill, CNN, Baghdad.

(END VIDEOTAPE)

COLLINS: Former Bosnian/Serb leader Radovan Karadzic in court today at The Hague. We've been showing you some live pictures of the proceedings. He did not enter pleas in connection with alleged atrocities during the Bosnian War.

Chief International Correspondent Christiane Amanpour covered the Bosnian War for CNN and has interviewed Karadzic. She's joining us now live from France this morning to tell us a little bit more about this.

So, a bit of a surprise here, Christiane? CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, not really. It was a very, very dramatic moment as the cameras opened and showed Radovan Karadzic walk into the dock of the International Tribunal at The Hague. This was a moment certainly the victims and the survivors of the Bosnian War had waited for with impatience, and this was a moment where finally justice perhaps could start rolling along.

Radovan Karadzic was read a summary of the indictments that had been launched against him back in 1995. Remember, for the massacre at Srebrenica, which was the single worst atrocity since World War II in Europe, and beyond that he was separately indicted for the siege of Sarajevo and the general campaign of ethnic cleansing.

He was indicted with one charge of genocide, one for complicity of genocide, five counts of crimes against humanity, and four counts of war crime. And amongst all the legalese that the judge had to go through in this first appearance, perhaps it was important to remember exactly what he was charged with.

For the siege of Sarajevo, which involved a campaign he's alleged and indicted with of Serb shelling and sniping of civilians, including children, 10,000 people in Sarajevo were killed between '92 and '95, including the elderly and children, according to the indictment. In Srebrenica, 8,000 men and boys, Muslim men and boys, were forcibly taken away from their families and executed and slaughtered. Many of those people and bodies have not yet been recovered. He was charged with individual criminal responsibility for either planning and executing or knowing about it and not preventing it and not punishing those who were responsible.

He's been on the run for some 13 years now, despite an international arrest warrant that was issued at the time of his indictment. And now he's finally in the dock and the process is starting.

There was some -- you could see how Radovan Karadzic, the eternal obfuscator, was again trying to slow the process down, saying that he wanted to represent himself. Well, mindful of what happened with the Serbian president, Slobodan Milosevic, when he was in the dock and represented himself, taking years of the court's time and dying before a conviction, the judge today very specifically said that the right of self-representation is not absolute. He can do it; it comes with serious limitations.

So that is a big warning and a shot across the bow.

Also, Radovan Karadzic tried to say that the circumstances of his arrest last week were -- there were irregularities. The judge shut him off and he said now is not the time to bring these up.

He also tried to say -- and he said this before and there had been rumors of this before -- that there was a deal that he thought had been made by the United States and Richard Holbrooke, who was the peace negotiator, for him to withdraw from public life. Again, these have been denied by the United States and by Holbrooke, and the judge shut him off, saying this is not the time to bring these up.

He didn't enter a plea. That will happen on the 28th of August.

Back to you.

COLLINS: All right. Christiane Amanpour from France today.

We sure do appreciate that.

Also want to let you know, as we explained earlier, our correspondent -- our senior international correspondent, Nic Robertson, was in that courtroom. He is just coming out. Very shortly we will get a live report from him as well on those proceedings.

HARRIS: If you use your cell phone a lot, well, CNN's Elizabeth Cohen on how you can stay safe. There she is hard at work.

(COMMERCIAL BREAK)

COLLINS: Quickly want to get back to a couple of stories that we were telling you about just into the CNN NEWSROOM.

We have learned that a federal judge has actually sided with Congress now regarding the fight with the Bush administration over whether or not some of the top White House aides will actually be subpoenaed by Congress regarding the firing of nine U.S. attorneys.

Also want to tell you a little bit more about Senator Ted Stevens. You may remember him as the Alaska Republican who was charged in a seven-count federal indictment for accepting gifts. You see some pictures there. His arraignment is scheduled for today.

So we want to bring on board senior legal analyst Jeffrey Toobin. He's standing by to talk a little bit more about both of these.

Hey, Jeff, I want to start with the U.S. attorneys, where this federal judge has actually sided with Congress. So this is one ruling, one judge. It's probably going to be a long time, is it not, before we would actually see Josh Bolton or Harriet Miers take the stand?

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: I think we are watching the clock run out on the Bush administration, and this controversy will never be resolved.

What the judge ruled today was that the White House's claim that the former aides are totally immune from testifying, don't have to show up, that is wrong. The judge says that's out of the question.

But what he did say is that in response to specific questions, the former White House aides, Bolton -- well, he's still there -- and Harriet Miers, who is now back in Dallas, can assert executive privilege, can refuse to answer individual questions. So frankly, the legal controversy is just kicked down the road another month. And it is also possible that this ruling could be appealed... COLLINS: Sure.

TOOBIN: ... which would certainly take this case to the end of the Bush administration.

COLLINS: Yes. And that had sort of been the word, if you will, for quite some time in discussing this whole case.

Quickly, when you talk about certain questions being allowed, if you will, I mean, who decides on that? Clearly, when they're prepare for this case, you have to be very, very careful, if it goes forward, that is, on what questions they ask.

TOOBIN: Well, that's why this is likely to be resolved very slowly, because you could have judges evaluating question by question, whether certain subjects are on limits or off limits. The idea of executive privilege is that presidents should be free to get advice from their advisers without having to worry that it will come out later. But the definition of executive privilege is something the courts have had a great deal of trouble defining. So it is likely not to be resolved by January 20th of next year.

COLLINS: Yes, doubtful. All right.

Jeff, also want to talk about Alaskan Senator Ted Stevens. There was kind of a surprise here. It was my understanding, anyway, his arraignment was set for today, but there was sort of this surprise visit that nobody really knew anything about. He went to court yesterday as well.

TOOBIN: Well, Brendan Sullivan, who is the lawyer for Ted Stevens, is a wiley veteran of the Washington legal scene. He was the defense lawyer for Oliver North way back in 1989. I happened to have been a prosecutor in that case.

And Brendan knows how to work the system to avoid publicity. He didn't want a -- he didn't want a spectacle with Ted Stevens.

COLLINS: Yes, because listen to this. What my reports say is that the press was actually surrounding today all four entrances, you know, waiting his arrival today, when, in fact, a lot of it happened yesterday and nobody was there.

TOOBIN: That's what he wanted.

COLLINS: Yes.

TOOBIN: And Brendan's a smart guy and a smart lawyer. And the press is outfoxed today. But this trial is going to also take some time to resolve itself. And Ted Stevens is going to have to show up at the appointed time sooner rather than later.

COLLINS: Yes, Ted Stevens, once again, just as a reminder, accused of taking something like 250,000 worth of gifts. So that is the heart of the case there. We'll be watching that one, of course. I believe that or arraignment is set for 1:00 today. Senior Legal Analyst Jeffrey Toobin, thanks for calling in. Appreciate it.

HARRIS: Former Bosnian/Serb leader Radovan Karadzic, accused of engineering thousands of death during the Bosnian War, appears on genocide charges and waives his right to enter a plea.

CNN Senior International Correspondent Nic Robertson is there.

And Nic, you've been in the courtroom throughout the morning, throughout the day. I have to ask you, so Radovan Karadzic waives his right to enter a plea. Does that mean a plea will be entered on his behalf?

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: No, he has another 30 days. He's taken what's known as a deferred plea, and the judge has set another date for 2:15 p.m. in the afternoon on the 29th, Friday, the 29th of August. So Radovan Karadzic will come back then, and that's when he'll get an opportunity to enter a plea.

But if he doesn't enter a plea then, then the judge will enter a not guilty plea for him. But it's still expected that he will make some sort of plea.

HARRIS: Yes. And Nic, if you would, can you describe the moment when Radovan Karadzic entered the court?

ROBERTSON: You know, when he came in, Tony, he was very stony- faced. He looked much thinner in the face than I remembered him. Clearly, he was older. Gone, was that big bushy beard that had been his disguise for the last few years.

He was carrying with him a black attache case. There were three guards that came in with him. One opened the door to the courtroom. He only had a few feet to walk to his desk.

Two other guards stood at either end of his desk. And he opened his briefcase, he took out his pens. He had some very fancy pens in there, and took out four sheets of paper, white sheets of paper, set them down in front of him, and sort of sat there and chewed his lip a little bit waiting for the judge to arrive.

But he was very stony-faced. You know, the most interesting thing was, the first time emotion sort of crossed his face was when the judge asked him -- the judge said, look, "I don't see anyone defending you. Are you going to be having somebody defend you?"

And this wry smile went across his face, and he said, "I have an invisible adviser. But right now I don't need a defense team."

What does that mean? He didn't explain. But really through the whole hour and 10 minutes in the courtroom there, very little emotion across his face at all -- Tony.

HARRIS: Wow. And if you could, could you give us an idea of what's next? We know that these trials can take a very long time. ROBERTSON: Well, I'll tell you what's going to be next, Tony. This is going to be a very adversarial case from what we've seen so far.

You know, the prosecution here has been under a lot of pressure to keep this trial going more quickly than the one against the former Serbian president, Slobodan Milosevic.

HARRIS: Yes.

ROBERTSON: Why? So the prosecution has been under pressure to make things a little quicker. So this time they said, OK, we'll try and speed the trial up.

Well, Radovan Karadzic came right up and said, "What, is there some kind of deal going behind my back that the prosecution has got here?" So the prosecution got up and said, look, "You know, he needs to understand -- if he's going to defend himself, he needs to understand the procedures in the court."

There's an adversarial relationship there. The judge has to step in several times.

Radovan Karadzic, having said in the courtroom right there, that one of the reasons he hadn't turned himself in before is because he was afraid because of a deal he had struck with the diplomat Richard Holbrooke...

HARRIS: Yes.

ROBERTSON: ... who had helped broker the Dayton Peace Accords, that he was going to be killed. The long arm of the United States was going to come out and kill him inside the court here.

So some sort of outlandish claims. The judge having to cut him off and cut him short. This is what we're going to see more of in the months to come -- Tony.

HARRIS: OK.

Our senior international correspondent, Nic Robertson.

And Nic, we're going to follow your reporting on this. This must be -- and maybe this is the last thought from you. It must be amazing given the charges against Radovan Karadzic, that we finally are at the day when he is in court on war crimes charges, charged with genocide there at The Hague.

It must be an amazing day.

ROBERTSON: It is, but you know, you wouldn't know that to look at Radovan Karadzic. It could sort of be almost any other day.

He doesn't look particularly nervous, he doesn't look particularly frightened, happy, anything. It's for him very stony- faced. But it's a big day for the victims, and it's a big day for the court here.

HARRIS: Absolutely.

ROBERTSON: This is the biggest person they have on trial right now.

HARRIS: All right.

CNN Senior International Correspondent Nic Robertson for us.

Nic, appreciate it. Thank you.

COLLINS: The candidates for president, what they're saying in their own words. We've got extended excerpts from John McCain and Barack Obama.

(COMMERCIAL BREAK)

HARRIS: The economy and energy driving the presidential campaigns. Both candidates turning to issue #1.

Barack Obama preparing for a town hall meeting in Cedar Rapids, Iowa, today. He will focus on the effects of this summer's record flooding.

John McCain holds a town hall meeting in Racine, Wisconsin, this afternoon, and then heads to Milwaukee.

COLLINS: As part of our ongoing effort to help you make an informed choice in the election, we're going to play more of what the candidates are saying in their own words on the campaign trail.

Here's John McCain yesterday in Colorado, promising supporters he will not raise taxes.

(BEGIN VIDEOTAPE)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: I know that you know Senator Obama is an impressive speaker, and the beauty of his words has attracted many people, especially among the young, to his campaign. I applaud his talent and his success. And Americans, all Americans should be proud of his accomplishment.

My concern with Senator Obama is that on issues big and small, when he says what he says, and what he does, are often two different things. He doesn't seem to understand that the policies he offers would make our problems worse and not better.

Senator Obama says he's going to change Washington, but his solution is to simply make government bigger and raise your taxes to pay for it. And I want to look you in the eye -- I will not raise your taxes nor support a tax increase. I will not do it.

(APPLAUSE)

He wants to raise your taxes to pay for bigger government. We've been doing that for years and it hasn't worked.

In the few years that he's been in the Senate, he's requested nearly a billion dollars in pork barrel spending. That's about a million dollars for every day that he's been in office.

I've never asked for a single pork barrel project or earmark for my state, and I'm proud of it. And I promise you I will veto every pork barrel deal that comes across my desk. You will know their names and I will make them famous. We will stop this corrupt practice in Washington, D.C., which has caused former members of Congress to reside in federal prison.

It's wrong, and I'll fix it, my friends. And I know how to fix it. We'll stop wasting your tax dollars.

(APPLAUSE)

You will not any longer spend $3 million to study the DNA of bears in Montana. Now, I don't know if that was a paternity issue or a criminal issue, but we're not going to do it anymore, my friends. We're going to stop it.

You know, Ronald Reagan used to say, "Congress spends money like a drunken sailor, only I never knew a sailor drunk or sober with the imagination of Congress." And that's kind of a funny line and I use it fairly often. I'm not making this up when I tell you I got an e- mail from a guy that said, "As a former drunken sailor, I resent compared to members of Congress."

Can't blame him.

Senator Obama says he'll only raise taxes on the rich, but in the Senate he voted for tax hikes that would have impacted those making just $32,000 per year.

He's proposed tax increases on income taxes, capital gains taxes. By the way, capital gains taxes, that's 100 million Americans. Dividend taxes. Pretty much anything you can tax, he wants to tax more.

On Social Security, he wants to raise Social Security taxes. I am opposed to raising taxes on Social Security. I want to fix the system without raising taxes.

(END VIDEOTAPE)

COLLINS: John McCain in his own words.

HARRIS: Barack Obama deflecting criticism and accusing John McCain of running a negative campaign. Here's Obama at yesterday's rally in Missouri.

(BEGIN VIDEOTAPE)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: John McCain and the Republicans, they don't have any new ideas. That's why they're spending all their time talking about me.

(APPLAUSE)

I mean, you haven't heard a positive thing out of that campaign in a month. All they do is try to run me down.

And you know, you know this in your own life, right? If somebody doesn't have anything nice to say about anybody, that means they've got some problems of their own.

So they know they've got no new ideas. They know they're dredging up all the stale old stuff they've been peddling for the last eight, 10 years. But since they don't have any new ideas, the only strategy they've got in this election is to try to scare you about me.

They're going to try to say that I'm a risky guy. They're going to try to say, well, you know, he's got a funny name. And he doesn't look like all the presidents on the dollar bills and the $5 bills.

And they're going to send out nasty e-mails. And you know, the latest one, they got me in an ad with Paris Hilton. You know. Never met the woman.

But, you know, what they're going to try to argue is that somehow I'm too risky. You know, basically, what they're saying to you is, we know we didn't do a real good job, but he's too risky.

Well, let me tell you something. When we are in such dire straits economically, when our foreign policy has gotten so messed up, what's a bigger risk, choosing change or choosing to do the same things that got us into this mess in the first place?

(APPLAUSE)

We -- that union, that is the real risk, is that we miss this moment, that we miss this time, that we decide we're not going to go ahead and do what is needed because we're afraid. That can't be what we do this time, because that's not what has built America. That's not what has made this country great.

We've never shied away. We've never been fearful of the future. We've always reached out to the future. And so when people are looking to the past, we say, no, we're going forward. We are going to create a better America.

(END VIDEOTAPE)

HARRIS: And that's some of what they're saying, part of our commitment to help you make an informed choice on Election Day.

COLLINS: Use your cell phone a lot? CNN's Elizabeth Cohen on how you can stay safe.

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COLLINS: We got a new report out last week that actually said cell phones could increase your risk of getting cancer. A lot of people concerned about that, and they really want to know how they can make their cell phones safer, if at all possible.

CNN Medical Correspondent Elizabeth Cohen joining us now to talk a little bit more about it.

So, is that possible?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: It is possible. But first, I want to say, some experts say cell phones are completely safe. You can talk on it all day long and you're perfectly fine, don't worry about it. Other people would say, I'm roasting my brain cells right now. So it really depends on which expert you ask.

And -- but the key thing is, if you are concerned, do not freak out. There are things that you can do if you're concerned about radiation from your cell phone.

First of all, pick a phone that has less radiation. Not all cell phones are the same. At CNN.com/health, we will tell you which have the highest and the lowest amounts of radiation.

Also, use a headset. That keeps the phone away from your head.

And also, carry it away from your body. And here's what I mean. Let's say I'm using an ear piece. That's great. The phone is not near my head. But then if I clip it here, some people would say I'm roasting my bone marrow.

COLLINS: Yes. I mean, it's still on your body.

COHEN: Right, it's still on your body. So if you're going to be doing that, talk, but go like this.

COLLINS: Really?

COHEN: And just...

COLLINS: I mean, there's really that much of a difference?

COHEN: Yes, absolutely.

COLLINS: Like an arm's length versus...

COHEN: Absolutely.

COLLINS: ... being on your belt?

COHEN: Every millimeter counts. Expert after expert told that to me.

COLLINS: Wow.

COHEN: Yes, absolutely.

COLLINS: I really didn't know that. Well, you have an ear piece in your ear, and there are a billion of them on the market. How do you know which one is best?

COHEN: OK. The experts I talked to said here are some good things you can do.

First of all, use what's called the ferrite bead on your wired headset.

COLLINS: The huh?

COHEN: See this little thing? It's called the...

COLLINS: The what?

COHEN: I know. I got this one a store right around the corner. They're all over the place. It costs $5. Allegedly, it absorbs the radiation that's in this wire.

Second of all, you can use this wire. Now, this is funky looking, isn't it?

COLLINS: Good lord.

COHEN: What this is, is that -- this is hollow, so if there's radiation in this wire, there's no radiation up near your head. You put it on. There's no radiation.

This is just hollow. The sound is just coming through here. And a lot of experts I talked to recommended this.

COLLINS: Yes. It's fascinating to me, because the fact that even some of these products are out there means that somebody is buying into it.

COHEN: Yes, absolutely.

COLLINS: So the cell phone industry says what?

COHEN: The cell phone industry says don't worry, cell phones are safe. There are federal regulations to regulate cell phone safety.

And here's what they say word for word.

They say, "The overwhelming majority of studies that have been published in scientific journals around the globe show that wireless phones do not pose a health risk."

And Heidi, I want to show you one more ear piece. This is a Bluetooth ear piece.

COLLINS: Right.

COHEN: It does indeed have some radiation; however, it's probably at least 100 times less than a phone. So a lot of experts I talked to recommended it. This is a lot of information. If you go to CNN.com/health right now, we have all of this laid out.

COLLINS: OK. Very good.

COHEN: It's very clearly laid out, where to buy things, what has radiation, what doesn't. All there.

COLLINS: OK. Excellent.

And let me see that one, the funky one.

COHEN: Isn't it fun? Here.

COLLINS: I definitely want to try that out. It looks like a big old Christmas ornament.

COHEN: You can hang it on your tree when you're done talking, absolutely.

(LAUGHTER)

COLLINS: All right. I want to let you know, as Elizabeth mentioned, that you can certainly go online to get more information if you would like about this. To get your "Daily Dose" of health news online, just go to CNN.com/ health.

HARRIS: All right. And some breaking news we want to bring you.

The FAA has just announced that at least -- some sad news to report -- at least seven people have died in a plane crash in Owatonna, Minnesota. The spokesperson from the FAA saying that the plane crashed near or at the city of Owatonna at that city's airport.

Heavy weather was moving through the area at the time. And as you'll recall throughout the morning here, our Rob Marciano has been keeping us posted on a number of tornado warnings in Minnesota.

Authorities believe the plane was in route from Atlantic City at the time. But that has not been pinned down. Not confirmed. Owatonna is about 60 miles south of the twin cities.

Again, at least seven people have died in a plane crash in Owatonna, Minnesota.

We will get additional information on the story and bring you an update in just a couple of minutes.

You know, you've been paying record prices at the pump today. One big oil company announces the biggest profit in U.S. corporate history.

(COMMERCIAL BREAK)

HARRIS: Once again, the breaking news we just told you about just moments ago. Just a horrible story out of Minnesota. At least seven people have died in a plane crash in Owatonna, Minnesota. We put together a map for you here, as you can see, and we're going to show you a tower cam picture from Minneapolis. It'll give you at least a sense of the skies today.

The spokeswoman for the FAA says the plane crashed near or at the city airport in Owatonna. Heavy weather was moving through Minnesota at the time.

OK. A Google map now that gave you a look at the airport.

Again, the plane was in route from Atlantic City, New Jersey, and here's a tower cam. It just shows kind of a soupy gray sky.

But Rob Marciano has been telling us throughout the morning of a number of tornado warnings in the Minnesota area. And it looks like heavy weather was -- may have been a factor in this, according to the FAA.

It's a story that we will continue to follow. Owatonna, if you're familiar with the state, is about 60 miles south of the twin cities.

Again, we will continue to update the story with additional information for you.

COLLINS: The world's largest oil company reports the highest quarterly profits ever for an American company breaking its own record.

(BUSINESS REPORT)

(COMMERCIAL BREAK)

HARRIS: Sorry.

COLLINS: That was on my Blackberry. I'll put that away. Sorry about that.

CNN NEWSROOM continues just one hour from now.

HARRIS: I was happy to say this: "ISSUE #1" with Gerri Willis and Rick Sanchez starts right now.