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Iran to Face More Nuclear Sanctions?; Energy Tops Agenda For Presidential Candidates; Counting Down to the Beijing Games
Aired August 05, 2008 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: She's a Pakistani scientist with U.S. credentials and suspected ties to al Qaeda. After a shoot-out in Afghanistan, she's in federal court in New York. And we're there live with all the details for you.
RANDI KAYE, CNN ANCHOR: Destination Hawaii, but a scary thing happened on the way. And Passengers deplaned the same place they boarded, but not the same way. We have got the story.
LEMON: And while all eyes were on Edouard, a storm with no name ambushed Indiana overnight. We have got the aftermath. And our Chad Myers is on top of it for you in the CNN Severe Weather Center.
Hello, everyone. I'm Don Lemon, live here at the CNN World Headquarters in Atlanta.
KAYE: And I'm Randi Kaye, in for Kyra Phillips. You are in the CNN NEWSROOM.
We're following a developing story at Los Angeles International Airport. These American Airlines passengers had to slide off their flight after an emergency landing.
Our Ted Rowlands is at LAX with the very latest for us.
Hi there, Ted.
TED ROWLANDS, CNN CORRESPONDENT: Hey, Randi.
About 10 minutes ago, we saw a few buses full of passengers. A number of them had Hawaiian T-shirts and shorts. We assume that these were the passengers that were taken from this 757 and are now back here at the American terminal. We're told by American that they will be getting on another plane and they are going to try this again and try to get to Honolulu, their destination.
This happened, this emergency landing happened earlier this morning. The plane took off about 8:40 from Los Angeles. It was in the air for a total of 57 minutes, according to American Airlines. At some point, when the plane was over the Pacific Ocean, the pilot ordered an emergency landing.
He brought the plane back to LAX. It was brought down safely. And, as soon as the plane came to a stop, those evacuation slides were deployed. And the passengers, 188 of them in total, one by one, went down those slides in somewhat orderly fashion. You could tell, though, they were quick to get off that plane. They did get off the plane in short order and moved away from the aircraft. They were put on buses, 188 total passengers. About five of them, according to American, received some sort of injury, minor injury, according to the airline.
And those injuries apparently took place when they were getting off of the plane, hitting the tarmac, just scrapes, nothing serious. Seven crew members as well on board this flight. The 757 in question here has no record of any problems over the last 30 days.
American immediately went back and looked at the log to see if anything like this had happened and they say at this point no. So, it's still a bit of mystery to what extent it was smoke, haze and/or an odor inside the cabin area. But it was significant enough for this pilot to say, let's get back to the airport as fast as possible, and then make the additional call to deploy those emergency chutes and get everyone off of the plane as soon as possible, which is exactly what they did.
Boy, you look at that video, and you can only imagine what was going through some of those passengers' minds as they were being told to get off as soon as possible.
KAYE: And, Ted, from what we understand, they didn't actually find any evidence of a fire on board. There were some reports of smoke or a haze or an odor, but no fire.
ROWLANDS: No. And, in fact, the passengers apparently have been able to go back on the plane and retrieve their personal items that they left there to get off. And now, with those items, apparently, they are being put on another plane destined to Hawaii. Hopefully, they are going to start their vacations in a much calmer fashion on the second time around.
KAYE: Yes, the trip will be a lot more relaxing than getting there, I'm sure. All right, Ted Rowlands for us live at LAX, thank you very much.
LEMON: Let's talk about the weather now. Right outside Chicago, it looks as if a tornado touched down. That hasn't been confirmed, though. The town of Griffith, Indiana, is considered a disaster area.
As you can see, roofs have been ripped right off and trees are uprooted as well. One tree fell on a car, killing the driver. Thousands of homes and businesses are without power right now. And more rain is sadly on the way.
Lots of rain is falling on southeast Texas and most of it is welcome news after so much of a drought there. It's all from Tropical Storm Edouard, which blew ashore this morning between Galveston and the Louisiana border. There is flooding around Houston as well. And some places could see three to six inches before it's all over.
The storm wasn't nearly as bad as feared, though. Galveston's mayor says she's lifting her emergency declaration in just a few hours.
And I would imagine that's encouraging news, Chad Myers, joining us now from the Severe Weather Center, yes?
CHAD MYERS, CNN METEOROLOGIST: Yes. The storm kind of turned to the north, as we probably expected. It didn't make a direct hit on Galveston with the right front quadrant. Actually, the right front, it hit a national seashore to the north of Galveston right there.
But now it's losing its color, losing its intensity. And that's what we expect when a storm of any tropical nature hits land. The ocean or the Gulf of Mexico in this case is what actually gives it the energy. That's where energy comes from, from the water.
Well, as soon as it hits land, there's no more water. Sure, there's Galveston Bay, but that doesn't really count that much. Now we're over a very dry area. And this has just been record-breaking droughts here across parts of Texas. That will help. This will get fixed because of this rainfall from the hill country through Austin and San Antonio, back up even possibly up to Dallas, as this makes its way to about Midland.
By the time it gets to Midland, though, it won't have any wind left with it, but it could bring some more rain.
(WEATHER UPDATE)
KAYE: A military jury is deciding the fate of Osama bin Laden's former driver. A panel of six U.S. military officers got the case after a two-week trial at Guantanamo Bay. They have recessed for the day and plan to resume tomorrow. Salim Hamdan is accused of helping bin Laden carry out the 9/11 attacks and could face life behind bars. Hamdan's lawyers say he was just part of bin Laden's motor pool and never joined al Qaeda.
The secret world of Guantanamo Bay might be less secret than we thought. There's word U.S. officials might have eavesdropped when other governments interviewed their terror suspects. "The Washington Post" says the State Department warned foreign nations the interviews would be recorded. Detainees' lawyers want the tapes, but the Bush administration has never confirmed they even exist.
LEMON: Could Iran facing more sanctions over its disputed nuclear program? The U.S. and other nations had offered an incentive package if Iran stops its nuclear activities.
But now U.S. officials tell the Associated Press Iran's response has fallen short. Tehran gave a one-page document to a top European Union official today, but a source familiar with the paper tells the AP it was filled with -- quote -- "obfuscation and delay."
Time now to talk politics. And in the race for the White House, energy tops the agenda again today for John McCain and Barack Obama. After a stop at a motorcycle rally in South Dakota, McCain is campaigning in Michigan. Among other things, he's visiting a nuclear power plant. McCain says his energy plan, not Obama's, will help the country achieve energy independence.
Obama is pushing his new Energy for America plan at two town hall meetings today in the tossup state of Ohio. Among other things, the Democrat candidate accuses McCain of being part of the problem, instead of the solution, as the country deals with an energy crunch.
KAYE: In our latest national poll of polls, 48 percent of registered voters support Barack Obama -- 44 percent back John McCain, and 8 percent say they haven't made up their minds. The poll of polls is an average of three different surveys.
On Friday, you may recall, Obama led McCain by 3 percentage points.
John McCain and Barack Obama have some sharp differences on reshaping the country's energy future. We will hear what they're saying in their own words a little bit later this hour.
LEMON: Members of the congressional GOP minority are in their third day of a recess protest.
(BEGIN VIDEO CLIP)
REP. JOHN SHADEGG (R), ARIZONA: I think this sign summarizes our message. Would you hold that?
(END VIDEO CLIP)
LEMON: They are calling on Democrats to come back from summer break to vote on an energy bill that, among other things, would increase offshore oil drilling.
House Democrats point out, Republicans blocked numerous energy- related bills before the session adjourned. Now, they call the whole thing a political stunt.
We're going to talk bag fees, food fees, pillow fees. All these new charges are really taking off with the airlines. Let's hope pay toilets aren't next. What do you say?
KAYE: Let's hope not.
LEMON: And as more U.S. troops are put in harm's way, more soldiers are dying at their own hands. What's the army saying about suicide in the ranks?
(COMMERCIAL BREAK)
LEMON: All right, well, lighting the way, the Olympic flame burns bright in China's quake zone. We are going to talk about that a little bit later on right here in the CNN NEWSROOM.
(BUSINESS REPORT)
KAYE: As more U.S. troops are put in harm's way, more soldiers are dying at their own hands. What is the Army saying about suicide in the ranks?
(COMMERCIAL BREAK)
KAYE: You have heard the stories, and you might even have paid the new fees. Times are tough for air travelers, but finally a little ray of sunshine. The Department of Transportation says there were fewer airline delays, fewer bags lost and fewer customer complaints, if you can believe that, this June than last.
People who did file complaints flagged United, U.S. Airways and Delta the most.
So, let's bring in Stephanie Oswald now. She's editor in chief of "Travelgirl" magazine.
And we're going to talk about all of these fees all these add-ons that consumers are not real happy about, JetBlue now charging $7 for a pillow.
(CROSSTALK)
STEPHANIE OSWALD, EDITOR IN CHIEF, "TRAVELGIRL": ... pillow.
KAYE: Yes. And then U.S. Airways also announcing, what, a dollar or two for coffee and water. We used to get that stuff for nothing.
(CROSSTALK)
OSWALD: It's really disappointing. But you have to look at it from their point of view.
Just like everyone at home is worried about the fuel prices at the pump, so are the airlines. So, they are trying to find any way they can to offset those fuel charges. And you have to think about this way -- $7 for a blanket and pillow, you also get a $5 coupon for Bed Bath & Beyond.
So, your bottom-line cost is only $2, and you are getting a fresh blanket and pillow. Now, I don't know if you have heard the stats before, but with the old free blankets and pillows, those are used by hundreds of thousands of people.
KAYE: Yes, you don't want to touch those.
So, from my perspective, two bucks is worth it for a fresh pillow.
KAYE: If you shop at that store, of course. Then it's really worth it.
But I guess a lot of people would wonder, those who are angry at these fees, why are they just not added on to the ticket prices to begin with? Why do this separately?
OSWALD: Well, if you think about it, if you put it all together in one package, then everyone would be paying the price for checking two bags. Everyone would be paying the price for Wi-Fi. Everyone would be paying the price for the blanket and pillow.
And if you put it the way it is now, a la carte, then the traveler still has a little control. So, you can bring your own blanket and pillow if you want. You can make sure you pack efficiently, so that you're not stuck paying the extra $25 fee for a checked bag. You can buy your own food in the terminal before you get on the plane. So, you still have a little more control this way, even if you are being nickeled and dimed.
KAYE: A lot of people just either can't afford to pay these fares or these extra fees or they just don't have the money, so they are opting for what? The new term, I guess, the term of the year which is staycations. They're staying close to home, maybe driving somewhere.
But then you see somewhere like Six Flags, a huge theme park chain, is having trouble, $2.4 billion in debt. So, why is that happening if people are using these staycations for adventure?
OSWALD: Well, the reality is, even if you are staying home, you are still trying to save money. So, people may be saying, well, I'm going to go to the state park, which isn't cost me a dime or maybe $3 for parking vs. going to Six Flags to pay $30 for an entrance fee.
That's one of the things that's happening. Also, people are just deciding that -- in general -- it's not just theme parks that are being targeted, but, in general, all across the board, people are wanting to save money. So, they are cutting back. They might be staying at home and going to the movies. Or they might be staying at home and taking in a play in town, which might cost less than going to a theme park.
KAYE: Playing cards, maybe. It's a lot cheaper.
(CROSSTALK)
OSWALD: Really true.
KAYE: Yesterday, we heard that Disney, their parks, they were going to raise prices. I think it is like $65 now to take your 3- year-old to the Disney theme park. And then you have this issue with Six Flags.
So, what's the future? Because these theme parks are really consumer-driven. So, what's going to happen to this industry if they start pricing consumers out of their front door?
OSWALD: Well, I think that this is going to be a temporary situation. People -- over the times we have seen that the industry reacts, it goes in ebbs and flows. Right now, we're in the middle of summer holiday. So, we have still got a month left where they are still trying to rake in as much money as they can before all the kids go back to school. I think that we will see in the fall a lot more travel deals out there, packages, where they will be combining situations where you might get a meal, a ticket, and a hotel room for a discounted rate, rather than having to pay all those individual fees.
So, I really do think this is going to be temporary, because the bottom line is people need to take vacations. And the United States, we don't use all our vacation days. I think it's 20 percent of the vacation days in the United States are not used, which is really a sad statistic.
KAYE: I love your positive outlook. That gives me a lot of hope for travel in the future.
So, Stephanie Oswald, the editor in chief of "Travelgirl" magazine, thanks so much.
OSWALD: Thank you.
KAYE: Appreciate it.
Rings, check. Priest, check. Barf bag, yes, got that, too. Those are free, actually. It is a match made in daredevil heaven. Take a look at that. Two crazy kids wing their way to wedded bliss.
(COMMERCIAL BREAK)
LEMON: John Jr. Gotti is under indictment again. He's been arrested at his home on New York's Long Island and is expected in court this afternoon. Gotti served time on racketeering charges several years ago, but more recent attempts to prosecute him have ended in mistrials.
This time, he faces conspiracy charges stemming from three murders in the 1980s and the 1990s. He and five co-defendants could face life in prison if convicted. Gotti's late father, the boss of the Gambino crime family, died in prison six years ago.
KAYE: A preliminary hearing is scheduled in East Tennessee tomorrow for the man accused of killing two people last month at a Knoxville church service. Jim Adkisson is accused of opening fire at the Tennessee Valley Unitarian Universalist Church, allegedly because he hated the church's liberalism. Church members rededicated their sanctuary with a special service on Sunday.
LEMON: We have an update on a bizarre story we told you about yesterday right here in the CNN.
It turns out that foot that washed ashore in Washington State was human. This one was found in Port Angeles, Washington. That's across the strait from British Columbia, where Canada's Mounties are investigating five other feet that have apparently washed ashore over the past year.
Now, the latest foot which turned up on this beach was inside a low-cut athletic shoe. The medical examiner says it apparently came off naturally while a body was floating in the water.
KAYE: 911 is a lifeline in emergencies, but some people's emergency might seem to others more like an inconvenience.
Take the woman who called with a pizza problem, and the Subway customer who called with a condiment crisis.
More cases in point from reporter Erich Spivey of CNN affiliate WTLV in Jacksonville, Florida.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: That was so stupid.
TAMMY MORRIS, SUBWAY MANAGER: It's unbelievable what people get upset about.
UNIDENTIFIED FEMALE: Wasting police time to come for a sandwich.
ERICH SPIVEY, WTLV REPORTER (voice-over): Who knows a Subway sandwich could cause so much trouble?
MORRIS: When you ask for the works, it consists of certain vegetables on your sandwich.
SPIVEY: Police say that made Reginald Peterson pretty mad, mad enough to call 911 twice to complain about his spicy Italian sub.
MORRIS: Well, evidently, he tasted the sandwich and it didn't have mayonnaise or mustard on it, so he became upset.
(BEGIN AUDIO CLIP)
911 OPERATOR: Arlington 911. What is your emergency?
CALLER: Is this Tuesday or Wednesday?
(END AUDIO CLIP)
SPIVEY: 911 operators across the country field calls every day for people with their own so-called emergencies.
(BEGIN AUDIO CLIP)
CALLER: I would like to be connected to Domino's Pizza, please, in Arlington.
911 OPERATOR: This is not a -- this is 911 -- 911 is for police and fire emergencies.
CALLER: Well, I can't get through on Pizza Hut line or 411.
(CROSSTALK)
911 OPERATOR: OK, well, ma'am, 911 does not connect you to Domino's Pizza. (END AUDIO CLIP)
SPIVEY: As for Peterson, the Subway caller, he got arrested, and told officers to throw his sandwich away.
(END VIDEOTAPE)
KAYE: And police say the first call Peterson made was to get the officers to have his Italian sub made correctly. Imagine that. And the second time, he actually complained police didn't arrive fast enough.
LEMON: Oh, boy.
Dueling energy plans -- Barack Obama and John McCain take swipes at each other as they push to make the country independent of foreign oil. You are about to hear from both candidates in their own words.
(COMMERCIAL BREAK)
KAYE: Welcome back. And I'm Randi Kaye, in for Kyra Phillips.
LEMON: And I'm Don Lemon, live here at the CNN world headquarters in Atlanta. You are in the CNN NEWSROOM.
Just about 3:30 here in the CNN NEWSROOM. Here are some of the stories we are working on.
A bizarre twist in the anthrax mailings probe -- investigators say chief suspect Bruce Ivins was obsessed with the Kappa Kappa Gamma sorority. The toxic letters were mailed from a Princeton University mailbox in 2001, where the sorority was based, not far from its office.
No bail for the man accused of kidnapping his daughter. Authorities try to figure out who Clark Rockefeller really is. He reportedly claimed to be from the wealthy oil family but authorities say that might not be his real name. He's being held in Massachusetts right now.
Edouard proving to be a real rainmaker. The tropical storm is now moving inland after coming ashore on the Texas Gulf Coast. It's giving Southeast Texas a good drenching -- something the drought-stricken region needs badly.
LEMON: Extended duty order for 1,200 U.S. Marines in Afghanistan. They were supposed to come home at the beginning of November. Now they'll stay until the end of November.
The Marines are mostly from the Air Ground Combat Center at Twentynine Palms, California. They are serving as trainers for the Afghan Army.
New hope for troops and others suffering from Post-Traumatic Stress Disorder. According to "USA Today," the Pentagon is spending $300 million to research PTSD and traumatic brain injuries. That's more than it's ever spent before and the new research could benefit civilians as well as soldiers.
KAYE: Last hour, we told you about Private Jason Scheuerman. Within months of being deployed to Iraq, he began showing signs of extreme depression. He told Army officials he had a nervous breakdown and thought about killing himself. A fellow soldier saw him put a gun in his mouth several times. But an Army psychologist said he was faking it.
Was it just the stress of war or something more?
(BEGIN VIDEOTAPE)
KAYE (voice-over): In late June of 2005, Private Jason Scheuerman is under severe stress. The company chaplain says he needs professional help. Instead, he's punished -- cut off from his family, denied phone and computer privileges.
CHRIS SCHEUERMAN, FATHER OF PRIVATE JASON SCHEUERMAN: And the last thing you do to someone you know who is suicidal is cut off their support group.
KAYE: Seven months after he's deployed to Iraq, Private Scheuerman is punished yet again -- for failing to secure his weapon. He's given two weeks of extra duty and told he may face a court- martial and sodomy in military prison. That night, in the closet of his barracks, he puts the rifle into his mouth again. This time he pulls the trigger.
C. SCHEUERMAN: They said, "Mr. Scheuerman, I'm sorry to inform you that your son died in Iraq."
KAYE (on camera): Did they ever indicate that it was suicide?
C. SCHEUERMAN: After a while, it -- they told me it appeared to be from a self-inflicted gunshot wound.
KAYE: Did you ask if there was a suicide note?
C. SCHEUERMAN: Yes, I did.
KAYE: And what was the response?
C. SCHEUERMAN: But they said no.
KAYE (voice-over): Yet more than a year later, a suicide note written by Jason arrived in his parents' mailbox. It was mixed in with hundreds of documents they had specially requested from the government. Nobody had one told them it had been found, tacked to the wall of the closet where Jason had shot himself.
C. SCHEUERMAN: "Maybe finally I can get rid of these demons and maybe finally I can get some peace. Scheuerman."
ANN SCHEUERMAN, MOTHER OF PRIVATE JASON SCHEUERMAN: It just -- every day it breaks my heart. It breaks my heart because he was reaching out for help. KAYE: "Keeping Them Honest," we asked the Army why it didn't protect Jason from himself. The Army refused to answer questions, but in a statement said told us: "The loss of any member of the Army family is a tragedy and suicide prevention is a top priority for the U.S. Army."
The statement did not address why a soldier who had been recommended for psychological treatment twice and was seen putting a gun in his mouth was punished rather than pulled from combat. Two investigations by the Army found no evidence of negligence, though one said there was a lack of communication among those concerned about Scheuerman.
The Army inspector-general has launched a third investigation and the Army has updated its guidelines for mental health screening.
Jason's dad still teaches Army medics at Fort Bragg.
(on camera): How do you feel speaking out against the Army, which you've spent your entire life serving?
C. SCHEUERMAN: Right is right and wrong is wrong. And what happened to my son was wrong. No one was held accountable.
KAYE (voice-over): Private First Class Jason Scheuerman is buried about a mile from where he grew up on Fort Bragg.
C. SCHEUERMAN: When I go there, I see the little boy. It's hard.
KAYE: One soldier -- casualty of war or casualty of a military struggling with the stress of war.
(END VIDEOTAPE)
KAYE: The Army has said there were 38 confirmed suicides in the first five months of this year. Twelve other deaths suspected of being suicides are still under investigation.
LEMON: All right. So those are under investigation.
Any -- are they making any changes?
How do they address this, Randi?
KAYE: Well, the military has made some improvements. They said that now if somebody like Private Scheuerman would develop the stress or trauma or depression or maybe talk about killing themselves while they're in theater, as they say -- in the field, on the battlefield -- if they don't improve within two weeks' time, instead of what happened in this case, they will be sent home immediately. So they will receive that treatment right away, as soon as they get home the.
LEMON: Very sad.
All right, Randi Kaye. We appreciate that. Very good reports, both of them. All right. So, look -- an up escalator does an about-face and this is what happens -- reverse chaos.
(COMMERCIAL BREAK)
LEMON: Vice President Dick Cheney might sit out the Republican convention next month. Party officials cite a desire by the McCain campaign to turn a page on the Bush/Cheney years. One source tells CNN says there's a mutual understanding between Cheney's office and the McCain camp that the vice president probably won't attend. Another official says both sides are still trying to work things out.
KAYE: John McCain and Barack Obama are taking swipes at each other over energy issues. McCain is touring a nuclear power plant in Michigan today.
Earlier, the Republican candidate spoke at a motorcycle rally in South Dakota.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: May I say to you, is there anybody that's as tired of paying $4 a buck -- $4 a gallon for gasoline?
Is there anybody who's sick and tired of it? Is there anybody that wants to become energy independent?
Well, I'm telling you right now, we're sending $700 billion every year and your Congress just went on vacation for five weeks. Tell them to come back and get to work. Tell them to get to work.
(APPLAUSE)
MCCAIN: When I'm president of the United States, I'm not going to let them go on vacation. They're going -- they're going to become energy independent and we're not going to pay $4 a gallon for gas, because we're going to drill offshore and we're going to drill now.
(APPLAUSE)
MCCAIN: And we're going to drill here and we're going to drill now.
(APPLAUSE)
MCCAIN: My opponent doesn't want to drill. He doesn't want nuclear power. He wants you to inflate your tires.
(END VIDEO CLIP)
KAYE: That was John McCain in Sturgis, South Dakota.
Here's what he said earlier in Pennsylvania.
(BEGIN VIDEO CLIP) MCCAIN: We're going to solve the energy crisis that's affecting businesses like National Label Company. And we need an all of the above approach. We need to aggressively develop alternative energies like wind, solar, tide, biofuels and geothermal. And we also need to expand our use of existing energy resources here at home.
That means we need more nuclear power. It means we need clean coal technology. And that means we need to offshore drill for oil and natural gas. We need to drill here and we need to drill now. And anybody who says that we can achieve energy independence without using and increasing these existing energy resources either doesn't have the experience to understand the challenge we face or isn't giving the American people some straight talk.
Unfortunately, Senator Obama continues to oppose offshore drilling. He continues to oppose the use of nuclear power.
These misguided policies would result in higher energy costs to American families and businesses and increase dependence on foreign oil. We're not going to achieve energy independence by inflating our tires.
I'm going to lead our nation to energy independence and I'm going to do it with a realistic and comprehensive all of the above approach that uses every resource available to finally solve this crisis.
As a lot of Americans know, the Congress -- doing nothing -- decided to go on a five week recess without addressing the energy challenge that's affecting Americans every single day in their ability to go to work, in their ability to do their jobs, in their ability to keep inflation down, as they're trying to do here at the National Label Company. And they need a Congress that will act.
Congress should come back into session. Congress should come back into session and I'm willing to come off the campaign trail.
I call on Senator Obama to call on Congress to come back into town and come back to work. Come off their recess. Come off their vacation and address this energy challenge to America and don't leave until we do -- Republican and Democrat joining together.
And a very vital part of that is nuclear power. And another vital part of that is offshore drilling. We have to drill here and drill now, not wait and see whether there's areas to explore, not wait and see whether there's a package that needs to be put together, but drill here and drill now.
And let's start working for the American people and not for ourselves.
So I hope that Senator Obama will call on Congress and the leaders, Harry Reid and Speaker Pelosi, will call Congress back into session.
Let's get this energy crisis solved, as Americans have been able to solve every challenge that's faced us and move forward and work for America and put America first.
Thank you very much.
(APPLAUSE)
(END VIDEO CLIP)
KAYE: Barack Obama also talking energy as he stumps in Ohio. The Democrat blames some of the country's energy problems on his opponent, John McCain.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Well, you remember that when George Bush took office, he had an energy policy. He turned to Dick Cheney...
(LAUGHTER)
OBAMA: ...and he told Cheney go take care of this. And Cheney proceeded to meet with the renewable energy groups once and met with the oil and gas companies 40 times.
So John McCain is taking a page out of the Bush/Cheney playbook. He's offered a plan with no significant investments in alternative energy. He's offering a gas tax holiday that, at best, would give you 30 cents a day for three months, for a grand together total of $28. But that's only assuming that the oil companies actually pass down the savings.
What do you think the odds of that are?
Not much. So instead, it pads oil company profits at the same time as it's taking money out of the Highway Trust Fund that Governor Strickland is going to be using to try to rebuild the infrastructure around the state and putting people back to work.
McCain is offering $4 billion more in tax breaks to the biggest oil companies in America, including 1.2 million to ExxonMobil -- a company that just recorded the largest profits in the history of the United States. This is a company that last quarter made the same amount of money in 30 seconds that a typical Ohio worker makes in an entire year. All the while, while here in Ohio you're paying nearly $3.70 a gallon for gas -- and that's because it's gone down over the last couple of weeks -- two-and-a-half times what it cost when George Bush took office; two-and-a-half times what it cost when George Bush took office.
They had a plan.
(LAUGHTER)
OBAMA: They had a plan. The problem was it was the oil company plan and the gas company plan. It wasn't a people plan. And we need a people plan, which is why I'm running for president of the United States of America. (APPLAUSE)
OBAMA: Senator McCain not only wants oil companies to keep every dime of that money that they've been making, he wants to give them more. Well, I don't know about you, but I don't think that's the change that we need right now. Instead of offering a real plan to lower gas prices, the only energy plan that he's really promoting is more drilling. This is what he talked about yesterday -- I want to drill here, I want to drill now. I don't know where he was standing.
(LAUGHTER)
OBAMA: I mean I think he was in a building somewhere.
(END VIDEO CLIP)
KAYE: There you have it.
Check out our Political Ticker for all of the latest campaign news. Just logon on to CNNPolitics.com from now until November and beyond.
LEMON: All right. Well, you can definitely say their marriage took off on some wings and a prayer. Well, these crazy kids are planely (ph) in love -- flying high in love.
(COMMERCIAL BREAK)
KAYE: We want to show you these new pictures. New video coming in of Edouard. You're looking at pictures from our affiliate, KHOU, in Galveston, Texas. You can see there the flooding. Most of those homes are surrounded in Texas.
Edouard, as you know by now, had come ashore early this morning. This is all from that tropical storm, which blew ashore between Galveston and the Louisiana border.
You can see some of the destruction there. And that actually wasn't even the area that was hardest hit. They had declared a state of emergency -- the mayor had. But now she says she's going to lift her emergency declaration, actually, in a few hours, which is sort of hard to believe considering the damage there. And it wasn't as strong or nearly as heavy when it came ashore there as was anticipated.
Much of the flooding is taking place around Houston, as well. Some places apparently could see three to six inches before it's all over.
But those are the pictures just coming in to the CNN NEWSROOM of the situation there in Galveston, Texas.
LEMON: And you can see those -- how they're used to flooding, because those homes are up on stilts, right?
KAYE: Uh huh.
LEMON: Yes. Not welcome, regardless of that.
KAYE: No. Certainly, not.
Well, Beijing fired up and lit up for Friday's Olympic ceremonies.
LEMON: Right. We want to take a live look at this picture. This is from the Chinese capital -- the centerpiece Bird's Nest Stadium in blue and a Water Cube in aqua blue there.
Isn't it beautiful?
KAYE: It is actually really nice.
LEMON: Yes. It's gorgeous.
KAYE: It's the result of some very intense preparation and intense anticipation across China.
Here's CNN's Anjali Rao.
(BEGIN VIDEOTAPE)
ANJALI RAO, CNN CORRESPONDENT (voice-over): The crowning moment in China's bid for global recognition and the realization of a dream. In the last seven years, the country has pulled out all the stops to show the world a perfect Olympics -- the best of China. Learning English a friendly wave or a warm welcome -- from young to old, like these Olympic volunteers, everyone is doing their bit and thinking up ways to bring out that Olympic spirit.
This branch of Beijing's famous Qunzuda Peking Duck Restaurant (ph) was built specifically for the Games. It even has a special Olympics venue menu featuring dishes which are mostly pretty easy to work out.
(on camera): That's the Water Cube. That's the sailing venue. That's obviously the Tennis Center. Shuttle cock soup (ph). Yes. It tastes exactly like how I had expected shuttle cock to taste.
(voice-over): And if you want a different sort of artistic expression, what about sand art?
GAO ZAN MIN, ARTIST (through translator): I think that the Olympics are important in many regards. Developed countries can't really understand how important the Games are to the Chinese.
If you understand all the aspects of China, you understand that the significance is greater here than for other countries.
RAO: The artist, Gao Zan Min, says he recently tailored his work to show that it's not all fun and games.
ZAN MIN (through translator): When I saw the torch relay protest, I was very angry. It was so hard for China to bid for the Olympics and we've put in so much work. So during the protests, I drew the people with yelling faces. But now we are ready to welcome the rest of the world so I changed their faces to happy ones.
RAO: Beijing has spent seven years primping and preening this city to make sure it's perfect for the Olympics. Of course, the key was always getting these 16 million or so Beijingers on board with that wish. Judging by the number of times today that I've overheard the heard the word ahjuan (ph), or Olympic Games they've achieved that.
Anjali Rao, CNN, Beijing.
(END VIDEOTAPE)
LEMON: All right. We want to shift gears now and we're going to tell you about shifting gears to Japan, where a visit to a cartoon festival wasn't very funny. At least 20 people were hurt Sunday in Tokyo when an up escalator went on the blink, stopped suddenly, then reversed course. As people on the lower end of the conveyor reached the bottom, they tumbled backward. It happened at an exhibition of popular cartoon and animated characters. Not fun. It's surprising more people weren't hurt in all of that.
Time now to check in with CNN's Wolf Blitzer.
KAYE: He is standing by in "THE SITUATION ROOM" to tell us what is coming up at the top of the hour.
Hi, Wolf.
WOLF BLITZER, CNN ANCHOR: Hi, guys.
Thanks very much.
There are explosive allegations that the White House may have been fabricated a memo about a connection between Iraq and Al Qaeda. It's in a new book by a Pulitzer Prize-winning journalist. The White House and the CIA are now responding. Stand by for that.
Also, Vice President Dick Cheney isn't expected to go to the biggest GOP event in four years. He's reportedly not planning on attending the Republican National Convention.
Here's the question -- why?
And the latest on the investigation into the anthrax attacks -- are officials close to closing the case?
All that and a lot more, guys, coming up right here in "THE SITUATION ROOM."
KAYE: Thanks, Wolf. We'll see you then.
LEMON: The closing bell and a wrap of all the action on Wall Street, straight ahead.
(COMMERCIAL BREAK) KAYE: This you have to see to believe. There had to be some butterflies in these guys' stomachs. This British couple took the plunge while soaring separately. Look at her in her wedding gown on top of some small plane.
LEMON: I'd be passed out. They were miked up so their grounded guests could hear their vows. The groom used to be afraid of heights but says he was thrilled to get married on the wings of love.
KAYE: Wow!
LEMON: You see 'Awws' (ph) written there. I just think it's kind of crazy.
KAYE: It is pretty crazy.
Well, the closing bell is about to ring on Wall Street.
LEMON: Susan Lisovicz is standing by with a final look at the trading day. And it looks like it's going to end very well -- Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, Don. We're feeling the love on Wall Street here, that's for sure.
(STOCK MARKET REPORT)
LISOVICZ: We'll see you tomorrow, Don and Randi.
LEMON: Have a good one, Susan. Thank you.
KAYE: And now let's hand it off to "THE SITUATION ROOM" and Wolf Blitzer.
