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American Morning

Allegations of Sex & Drug Abuse Inside Government Oil Agency; Sarah Palin Home in Alaska for Son's Deployment; One-on-One with Seif Gadhafi; Remembering 9/11 Victims

Aired September 11, 2008 - 08:00   ET

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


JOHN ROBERTS, CNN ANCHOR: To the top of the hour now and here are some of the top stories that we're following for you this morning.
Allegations of sex and drug abuse inside the government agency responsible for collecting oil royalties. Reports delivered to Congress yesterday accuse a dozen current and former employees of accepting gifts, using cocaine and sexual misconduct. An official at the agency said it has taken the report, quote, "extremely seriously and will take appropriate action." The agency collects about $10 billion in royalties each year.

We don't have superpowers. That's how the White House is describing the hunt for Osama bin Laden. Officials blame the failure to capture the al Qaeda leader on limitations on military and intelligence power. Press Secretary Dana Perino added, quote, "what we do have is very dedicated people trying to bring al Qaeda to justice."

Republican vice presidential candidate Sarah Palin is back home in Alaska today. She attends a deployment ceremony for her son Track who is headed to Iraq. Track Palin enlisted in the army a year ago. He's with the 1st Stryker Division.

Brand new polls this morning from four of the key battleground states that could decide the presidential elections. Starting in Michigan, Barack Obama has a slim lead, 49 to 45 percent. He also leads John McCain in New Hampshire, 51 to 45 percent. In Missouri, though, which some people say is the real road to the White House, McCain's got the advantage, 50 percent to Obama's 45. And in Virginia, McCain is ahead, 50 percent to 46 percent.

And today, Senator Barack Obama will do lunch with former President Bill Clinton in New York. The face to face comes as analysts say Obama needs to clear the clutter and get back to the issues.

CNN's Suzanne Malveaux joins me now in New York.

And you know, we're talking this morning about the way that this campaign is going, it's almost a replay of 2004 where the Republican side is doing an awfully good job to try to define the Democrat, putting him on the defensive. What does he need to do?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: And Obama did a very good job in the primaries of defining himself. He really has to step up at this time because we're talking about 54 days left. The stakes are extremely high. The time is getting short. Recently, we've seen a bitter exchange between the campaigns as both accused the other of misrepresenting their opponent. Now the question now is whether this is going to affect how the voters actually see the candidates.

(BEGIN VIDEOTAPE)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL NOMINEE: Enough is enough.

MALVEAUX (voice-over): Barack Obama has had it with what he says are the lies and distortions coming from the McCain campaign.

OBAMA: What we can't do is spend our time talking about nonsense.

MALVEAUX: But the Republican attack strategy, combined with a reinvigorated Republican ticket, has forced Obama to respond, taking time away from his themes of change.

OBAMA: It is true that some of the stuff coming out of the other campaign and I notice that people are starting to focus on this today and over the last couple of days, is kind of hard to swallow, right?

MALVEAUX: But columnist David Sirota says if Obama hopes to win in November, his campaign needs to go back to its roots.

DAVID SIROTA, SYNDICATED COLUMNIST: He has sort of shied away from talking about trade, NAFTA, an issue that really, I think, propelled him in the Democratic primary. And he hasn't talked as forcefully of late about the war in Iraq. Those are the two issues that really contrast him with John McCain I think most effectively.

MALVEAUX: For his part, Obama says he will not allow his campaign to be derailed.

OBAMA: Our job is to just drum home day after day, the facts. You know, I still have faith that the truth will out in the end.

MALVEAUX: And he says the polls showing a tightening race don't worry him.

OBAMA: You have to earn the presidency. It's not -- it not a cakewalk. I mean, this is a big decision for people. And, you know, the country is wrestling with some of its own contradictions and where we need to go and that's going to take some time for the voters to sort things out.

MALVEAUX: Sirota believes that if Obama doesn't get the media and the country to focus more on the issues, he could be in trouble.

SIROTA: If McCain is successful, if he's allowed to make this about patriotism, if he's allowed to make this about cultural populism, and Obama doesn't break through on the issues, then I think that this is an election that the Democrats could lose. (END VIDEOTAPE)

MALVEAUX: Today on the anniversary of the September 11th attacks, both candidates have suspended their campaigns. They're going to appear together at Ground Zero this afternoon to lay a wreath. Both candidates say that today is a day to set aside partisanship, remember that we're all united in being Americans.

And then later, Barack Obama is also going to have a private lunch with former President Bill Clinton here in New York before Clinton goes on the road to campaign next week in Florida for Barack Obama. It should be a very interesting lunch to see what happens, what comes out of that.

ROBERTS: It will also be fascinating to watch what kind of an impact Bill Clinton might have on the road, stumping for Barack Obama. Suzanne, thanks. Great to see you today.

MALVEAUX: Thanks.

KIRAN CHETRY, CNN ANCHOR: Meanwhile, Governor Sarah Palin is in Alaska this morning away from Senator John McCain. Since picking her to be his running mate, the campaign has kept Palin close, protecting her image from the Barack Obama campaign.

CNN's Dana Bash has a look at how closely they're guarding Palin's reputation. She joins us this morning from Pennsylvania.

Hi there, Dana.

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Hi there, Kiran. Well, actually this morning, you heard Suzanne mentioned the fact that both candidates are suspending campaigning.

I'm in Pennsylvania because Senator McCain is going to stop first in Shanksville for a ceremony there. That, of course, is where Flight 93 went down seven years ago. But after that, he is going to go to New York. And actually have a pretty low-key campaign week for the rest of the week. Why? Because they are pretty happy to leave the spotlight to Sarah Palin.

(BEGIN VIDEOTAPE)

BASH (voice-over): Their final post convention rally together and their biggest yet. With Sarah Palin, John McCain is well aware he's ignited a surprising fire for his campaign and he's doing everything he can to stoke it.

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: This governor negotiated a $40 billion natural gas pipeline that will bring clean energy to the lower 48.

BASH: But McCain's advisers know Palin's record isn't what's making her a sensation. It's her persona. And they're scrambling to protect it. Assembling a new team of lawyers, researchers and press aides to try to shape the onslaught of coverage about everything from earmarks she fought for and against to rampant rumors she banned books.

Part of protecting Palin's image is trying to sully Barack Obama's like with this new ad.

(BEGIN VIDEO CLIP, AD)

NARRATOR: Obama air dropped a mini army of 30 lawyers, investigators and opposition researchers into Alaska to dig dirt on Governor Palin. As Obama drops in the polls, he'll try to destroy her.

(END VIDEO CLIP)

BASH: Obama's campaign denies deploying anyone to dig up dirt. After their morning rally, McCain parted ways with Palin to campaign alone for the first time since picking her at a small round table with women in a Philadelphia diner. What a difference without Palin. Chanting outside not for Sarah but Obama. McCain's statements to reporters drowned out.

MCCAIN: The challenges that face our economy --

BASH: He was finally forced to stop talking when his supporters got in the mix. All he could do was end with a joke.

MCCAIN: Pennsylvania is a battleground state as we can tell.

(END VIDEOTAPE)

BASH: Now, the stark difference between McCain's events with and without Palin is not lost on McCain's advisers. In fact, they say when Palin returns from Alaska this weekend, she will finally have her first solo campaign trip to some battleground states. But, Kiran, they say they'll look for McCain and Palin together again soon. In fact, they say to look for them together a lot more between now and November than most running mates usually are.

CHETRY: Yes, and they said simply they have to weigh whether or not they can get to as many venues or whether they're going to try capitalize on that chemistry and they say that it's working for them. What is McCain doing in Pennsylvania today?

BASH: Well, he's starting out this morning in Shanksville. It's not too far from here. At about 9:30, there's going to be a ceremony marking the tragedy obviously that happened there on 9/11 seven years ago. Flight 93 went down in Pennsylvania, you remember that of course, and that is a part of the day that John McCain is going to have commemorating 9/11.

He's going to go from here to New York and he's going to have a joint appearance with Barack Obama at Ground Zero and if fact, after that, Kiran, they're going to have a joint appearance together, a forum together, talking about service. And that's going to be this evening.

CHETRY: All right. Dana Bash, thanks. ROBERTS: Nine minutes now after the hour. Seven years after 9/11, how vulnerable is America to another terrorist attack? We'll talk with the former Homeland Security adviser about the growing threat from al Qaeda.

CHETRY: Issue number one. The candidates on health care. Ali Velshi looks at what their plans would mean to you and your family. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: Ali Velshi is "Minding Your Business" today. He's breaking down where the candidates stand on issue #1.

Today, you're tackling healthcare.

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes. We've been tackling a number of topics that affects your money, and this is one of them. Healthcare maybe one of the biggest ones for you. And the two major candidates, Barack Obama and John McCain have very different views on how to handle this country's healthcare crisis, including those millions of people, tens of millions of people who have no health insurance.

Barack Obama would start by mandating that every child had paid health insurance. He'd make parents pay for health insurance for their children but he would offer subsidies for those insurance premiums so that children could all be covered. He'd also require employers with employees over a certain number to offer health insurance in an effort to sort of force more insurance around the country.

John McCain feels that the market should handle this. And the criticism of that is that the market hasn't handled it so far. But he'd like to improve healthcare through competition. Finding -- allowing more people into the market to offer more healthcare at lower prices to Americans.

He'd offer tax credits of $2,500 per person or $5,000 per family to pay for the premiums for this health care. And if there were money left over from those premiums, from those tax credits, he'd encourage the establishment of health savings accounts where you can use that tax-free money to pay for health care. So, two very different philosophies.

John McCain thinks that the market can fix the problems we've got with so many millions of people not having healthcare in this country. Barack Obama feels that the government needs to get involved in mandating that people have healthcare. Very different philosophies. Could be something that you make a decision.

ROBERTS: Yes. As you said, they're so different. Difficult for independent voters to make up their mind, which way to go. Thanks for helping us out.

VELSHI: OK. ROBERTS: Ali, thanks.

Thirteen minutes after the hour. We'll be right back.

CHETRY: On the run. Hurricane Ike drumming up new fears on the Texas Gulf Coast as new information helps to zero in on where the storm might hit hardest.

You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: There it is. Hurricane Ike could be a Category 3, possibly a Category 4 storm when it makes landfall later this week. Our Rob Marciano watching the storm from our hurricane headquarters in Atlanta.

And Rob, is the real worry here, if it continued on a western track, it would go to a fairly unpopulated area, but if it makes that sharp right turn, it could go right into Galveston and Houston?

ROB MARCIANO, CNN METEOROLOGIST: Yes. And that over yesterday. And the track has shifted today. Good morning, everybody. The expanse of the winds and the storm has expanded as well. Over 100 miles from the center are hurricane force winds.

We have not one but two hurricane hunter aircraft, one is a NOAA plane out of Tampa. One is an Air Force recon plane out of Keesler Air Force Base. And both are sampling this right now and telling us exactly what's going on. It has strengthen just a little bit overnight. Very, very little. But winds have pretty much have remained the same. But it's grown larger.

It takes up almost the entire half of the Gulf of Mexico, and that's a huge concern. It will go over slightly warmer waters a little bit. We expected to get to Category 3 status. Here's the cone now. It has shifted a little bit farther to the north. Much more populated here, than here or here. And because of that, damages could very well be extensive as we're getting closer, John. So, the likelihood of this forecast verifying is becoming more and more of a distinct possibility. Hopefully, it will shift its track over the next 12 or 24 hours.

ROBERTS: All right. Rob Marciano for us with the latest on that. Rob, thanks so much. We'll keep check back with you. 16-and- a-half minutes after the hour.

CHETRY: The man who changed Libya.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Now, the Americans are our friends.

(END VIDEO CLIP)

CHETRY: How, he moved the former enemy state towards democracy. Zain Verjee goes one-on-one with Moammar Gadhafi's son.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We were a terrorist? Yes. We try to terrorize our enemy? Yes.

(END VIDEO CLIP)

CHETRY: You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: After decades of tension with the United States, Libya denounced terror and weapons of mass destruction. And one of the driving forces behind this transformation was Moammar Gadhafi, the long-time leader's son.

He sat down with our Zain Verjee for an exclusive interview -- Zain.

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: John, Kiran, when many Americans think of Libya, they think of its leader Moammar Gadhafi and the terrorism. But many don't know his son, who's pulling some important strings in making changes.

(BEGIN VIDEOTAPE)

VERJEE: He's the silent hand behind Libya's dramatic makeover. Seif al-Islam al-Gadhafi managed to pull off the unthinkable, convince his father, leader Moammar Gadhafi to give up his weapons of mass destruction, shed Libya's terrorist label and bring the country out of the cold.

SEIF GADHAFI, MOAMMAR GADHAFI'S SON: We were terrorists, yes? Did we try to terrorize our enemies? Yes. Americans terrorizing its enemies? Yes. Now, the Americans are our friends.

VERJEE: At his home in the capital Tripoli, he tells me the new rules of the game. Business, not bombs.

GADHAFI: It's useful now (INAUDIBLE), and it's a win-win situation.

VERJEE: Safe is the driving force behind Libya's economic boom, negotiating billions of dollars in foreign investment and bringing American oil giants back to Libya.

The Western educated son is close to his father, who has listened to his ideas for changed, but when it comes to his pet tigers, dad's in charge. This one, Fredo died, but Seif has two others.

GADHAFI: Now my father took him to the zoo. Because he said that they are dangerous animals and they shouldn't be here.

VERJEE: So, you have to listen to your dad like anyone else?

GADHAFI: Yes.

VERJEE: But the leader did take Seif's advice to end the fight over the 1988 Pan-Am bombing over Lockerbie, Scotland. Libya admitted guilt and paid the victim's families. Seif has accused them of being greedy and recalled that Libyans were also killed when the U.S. bombed Tripoli and Benghazi in 1986.

GADHAFI: Their blood are not cheaper than the American bloody. But now, they're greedy.

VERJEE: Many in this Muslim country believe Seif will take the reins from his father one day. Seif says he's just a private citizen pushing for reform.

GADHAFI: I cannot contradict myself. I cannot say any democracy (INAUDIBLE), and then I want to be in the conference and have a choice.

(OFF-MIKE)

VERJEE: He wants a constitution, parliament and (OFF-MIKE).

(END VIDEOTAPE)

(COMMERCIAL BREAK)

ROBERTS: Twenty-five minutes after the hour. I just want to apologize for a technical problem that we had in the middle of Zain Verjee's story. We had some communications problems with the mother ship down there in Atlanta. But apparently, we've got things back on track again. So, sorry that we dumped out on you there for a little while.

Fran Townsend is a member of the Pentagon Memorial Fundraising Committee. She served as Homeland Security adviser under President Bush. She's now a CNN national security contributor. Fran joins us now from the side of the memorial just outside of Pentagon.

Fran, it's good to see you this morning. I wanted to ask you, the story in "The New York Times" today, President Bush back in July approved secret special forces raids from Afghanistan into the north- western part of Pakistan. How effective could that be against the Taliban and al Qaeda, and also, what's the consensus among Homeland Security expert such as yourself as to where the next attack against America could possibly come from? Many people say the point of origin may be that part of Pakistan.

FRANCES TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: I think, John, it's fair to say that people assume, given the tribal areas, given the fact that it's an ungoverned area, that it is very likely. Look at the attacks, the plan attack in August of 2006 involving a London plane. That was traced to the tribal areas. And so, people I think believe that it is likely that any attack could be traced back to there.

And, obviously, I can't speak to the president, any secret order signed by the president. But the president has spoken publicly that there are no options that he would take off the table if it went thwarting the next attack.

ROBERTS: You know, Kelli Arena about half an hour ago also brought us the story about a resurgent al Qaeda in the northern part of Africa, North Africa there. You are actually quoted in that story.

How troubling is it the degree to which al Qaeda has established itself in that part of the world?

TOWNSEND: Well, there's no question, John. The big concern to me, and I think to other Homeland Security and counterterrorism shows is -- of course, this great illegal migration from North Africa into Europe. And once your in Western Europe, you're a six-hour plane ride from New York.

ROBERTS: And, you know, one of the things that we talk about a lot, Fran, post-9/11 is just how prepared are we after all the time that has gone by, after all the billions of dollars that have been spent to thwart a terror attack? Lee Hamilton, who was, as you know, was the co-chairman of the 9/11 Commission is chairing a new independent panel.

They've got an upcoming report which says in part, quote, "a nuclear, chemical or biological weapon in the hands of terrorists remains the single greatest threat to our nation. While progress has been made in securing these weapons and materials, we are still dangerously vulnerable."

So, in your estimation, how much safer are we now than we were on September 10th, 2001?

TOWNSEND: John, Lee Hamilton and I sit on the president's Intelligence Advisory Board together. And I agree with him. It is the single greatest threat. A nuclear weapon in the hands of terrorist. I think the same report you'll find says we've made some good progress in interdiction, proliferation, security initiative. But this administration and the next administration, whoever that is, will have to continue to have a real focus on this to prevent terrorists from getting those very weapons that could do us harm.

ROBERTS: You know, Fran, I recently read Tom Friedman's new book "Hot, Flat and Crowded." We interviewed him earlier this week. And one of the points that he makes throughout the book is that post-9/11 world. America has put up too many walls. We've sort of alienated the world, as oppose to including it in America with appropriate security. And it's affected everything from our economy to our safety.

Do you think that the reaction post 9/11 has been too much of a bunker mentality?

TOWNSEND: Well, I think it's understandable where the government was immediately following September 11th with its security measures. But I do think the government and any future administrations have an obligation to be constantly looking at the balance they strike. How do we balance our security versus our civil liberties and privacy interests?

We've heard great debates about that and great questions of this administration about how they've made that balance. And I think we need to have more public discussion about what is the right balance and how can we strike it better.

ROBERTS: And Fran, you're on, as we said --

TOWNSEND: One of the examples --

ROBERTS: Yes, right. Sorry, Fran, we're running out of time here. I just want to ask you quickly. You're on the Pentagon Memorial Fundraising Committee, which is going to be dedicated today. Tell us a little bit about it.

TOWNSEND: You know, after my work, particularly with the Coast Guard and in the White House, I had tremendous respect and admiration for the United States military.

The first commitment that I made when I left the White House was to help the Pentagon Memorial Fund raise funds in order to support this memorial. One of the things that really heartened me was that it didn't just come from large corporations here in the United States, but our foreign allies around the world helped to fund an endowment that will keep this memorial in perpetuity for the country. And so, it's really been a wonderful way to continue to contribute.

ROBERTS: Yes. It's quite an amazing memorial as well. Sort of very powerful in its darkness.

Fran Townsend, former Homeland Security adviser, now a CNN contributor. Good to talk to you this morning. We'll let you go, because I know you got to get back inside there. Thanks.

CHETRY: Well, we're just about 30 minutes after the top of the hour. Here's some of the top stories we're following for you right now. Senators John McCain and Barack Obama will put presidential politics aside, at least for a day. They'll be making a joint appearance at Ground Zero in New York this afternoon, and we will bring it to you live on CNN and CNN.com.

Also, John McCain's running mate Sarah Palin is back home in Alaska. The first time since the GOP convention. This afternoon, she'll attend her son's deployment ceremony. She also sits down with her first TV interview today.

Barack Obama and Bill Clinton will hit the campaign trail together. They'll be making a joint appearance in Florida later this month. This news, as the two were set to meet for lunch this afternoon in New York City.

Well, would Barack Obama be better off with Hillary Clinton as his running mate? Joe Biden might think so. At a town hall meeting in New Hampshire, Obama's number two seemed to be second-guessing the choice of Joe Biden.

(BEGIN VIDEO CLIP)

SEN. JOE BIDEN, VICE PRESIDENTIAL CANDIDATE: She's qualified to be president of the United States of America. She's easily qualified to be vice president of the United States of America. And quite frankly, it might have been a better pick than me. But she's first rate.

(END VIDEO CLIP)

CHETRY: Now, Biden was responding to a comment from a voter who didn't like Hillary Clinton and was glad Biden was chosen as the running mate. Biden and Senator Clinton are longtime friends.

Well, Joe Biden is getting a lot less attention these days than his Republican counterpart VP pick Sarah Palin. Some say Barack Obama's failure to put Hillary Clinton on the Democratic ticket has given the McCain campaign the spark it was looking for. CNN's Mary Snow joins us now with more on this.

Hi, Mary. Good to see you this morning.

MARY SNOW, CNN CORRESPONDENT: Good to see you.

Hillary Clinton's name coming up a lot on the campaign trail. Some Republicans say Barack Obama left an opening by not choosing her as his running mate. The question is, though, is it drawing women to John McCain?

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Sarah!

SNOW (voice-over): Fairfax, Virginia, the McCain campaign says it's the biggest crowd yet. It estimates 23,000 people showed up for a McCain-Palin rally. Some Republican supporting McCain say Hillary Clinton is one reason why the race is tightening between John McCain and Barack Obama.

REP. CANDICE MILLER (R), MCCAIN SUPPORTER: I think if Barack Obama would have chosen Hillary Clinton as his running mate, he would be in a much different position than what he finds himself right now.

SNOW: But Democratic Senator Debbie Stabenow sees it a another way. She credits Palin's new-ness as the Republican's vice presidential nominee is drawing attention.

SEN. DEBBIE STABENOW, OBAMA SUPPORTER: I don't think it has anything to do with Senator Hillary Rodham Clinton. I supported Hillary Clinton. My mom did, my daughter did and all of us are strongly supporting Barack Obama now. Because, frankly, it's about the issues.

SNOW: When it comes to issues, Clinton and Palin are far apart. But when it comes to appeal to women, those studying women in politics say Palin has struck a cord. RUTH MANDEL, EAGLETON INSTITUTE OF POLITICS: I think the one reason that Sarah Palin has made such an initial hit is that she is someone who has said, I'm one of you, here I am with my family, and I'm doing this and I'm proud of it.

SNOW: The question is will Democrats who supported Hillary Clinton switch to McCain? CNN's polling director find no big shift in voters since Palin was chosen for the Republican ticket and after the pick. And among Clinton supporter's --

KEATING HOLLAND, CNN POLLING DIRECTOR: Before the conventions, we found that about a quarter, one in four of Democrats who supported Hillary Clinton for their party's nominees said that they would vote for John McCain in November. That's down to one and seven now. So Obama has been picking up Hillary Clinton Democrats.

(END VIDEOTAPE)

SNOW: But interestingly, CNN's polling director Keating Holland says Palin is seeing support among men, particularly on the question of whether Palin is qualified to be president.

CHETRY: Yes. A very fascinating talk of sexism and then in the polling, the men tend to be a little bit more lenient about how they feel about Sarah Palin.

SNOW: Yes, and the polls are showing that they're more supportive of her than women.

CHETRY: Very interesting. All right. Mary Snow, good to see you. Thanks for being with us.

Well, don't miss this weekend, CNN takes a revealing look at both vice presidential candidates on Saturday and Sunday night. Sarah Palin 9:00 Eastern, Joe Biden, 10:00 Eastern.

CHETRY: The hunt for bin Laden.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You try to follow the footsteps.

(END VIDEO CLIP)

CHETRY: Tracking the terrorist seven years after the 9/11 attacks. Nic Robertson talks to the man who was once hot on his trail.

You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Thirty-six minutes after the hour. Ali Velshi has got some breaking news for us on our current accounts deficit.

VELSHI: Current accounts deficit is the difference between what we buy from other countries and what we sell them. The United States has been in a deficit. We buy much more than we sell for a long time. But the current account deficit has now hit the highest point it's been at in 16 months. And a lot of that is because of oil.

In fact, the increase over last month is just about oil. We imported a record amount of oil in the last month. Our usage in oil despite the high prices of it have gone up. And we buying and when we buy oil from other countries we are buying things that we're not selling to other countries. So this is a bit of an issue. When your trade deficit is very high, that creates an imbalance. That means when we talk about free trade yesterday, we are not really having free trade, we are somehow buying other people's goods.

ROBERTS: And it is particularly troubling as well because of the lower value of the dollar. The dollar has increased our exports but at the same time, these extra charges for the oil --

VELSHI: But I should tell you as of yesterday, the dollar, the United States dollar was $1.40 against the euro which means our dollar is strengthening. The one benefit was we were selling more because of the low dollar. But the dollar has started to strengthen. So we're in this middle ground where we don't have the advantage of having a low currency and selling things to other people and not a strong enough currency to benefit from the fact that we buy all these other goods from overseas. So this is a bad situation to be in. There are a lot of people.

T. Boone Pickens has been saying his whole campaign is about we spend $700 billion a year in buying oil from other countries. Can you imagine if we spent that in the United States in alternative energies. Both candidates have said that they want a plan to reduce America's dependence on foreign oil. It's unclear, we've looked at it. It's unclear how effective their plans will be but that's the bottom line, the biggest purchase, one of the biggest purchases we're making is oil from other places.

CHETRY: It's not what you typically think of when you are trying to understand to trade deficit?

VELSHI: Correct. You think of cargo containers of stuff coming in from China but a lot of it is oil.

CHETRY: Wow. Ali, thanks.

VELSHI: OK.

ROBERTS: Seven years after 9/11, concerns about another terror attack on U.S. soil are at a record low, according to a new CNN opinion research corporation poll. The poll also finds that Americans are split over whether Osama bin Laden will ever be captured or killed. In the meantime "The New York Times" reports that President Bush secretly approved orders in July allowing U.S. special forces to conduct raids inside Pakistan without prior approval from Pakistan's government.

This morning, we're following this story from inside Pakistan along with the latest efforts to root out al Qaeda and locate Osama bin Laden. CNN's Nic Robertson is live for us in Islamabad.

Nic, this new secret program that we're hearing about, what kind of an effect might that have in trying to defeat a resurgent Taliban and al Qaeda along those border areas between Afghanistan and Pakistan?

NIC ROBERTSON, CNN CORRESPONDENT: John it's already having a negative backlash here. There's been one cross raid and three air strikes in the past week. And as many more strikes than have been over the past couple of years, certainly not concentrated on a period of time. The foreign minister spoke out about it, criticized the United States for doing it.

Just last night, we heard from the Army Chief of Staff here, General Pervez Kayani here saying that Pakistan will do anything, everything to defend its territorial integrity including firing back on U.S. troops if they come into the country. He also mentioned in the same statement that in talks three weeks ago, when he met with Joint Chiefs of Staff General Mike Mullen about the need for more understanding and more time to be given to Pakistan for them to deal with the problem themselves. Rather than lose popular support, support on the United States and the war on terror.

But as we heard from Admiral Mullen yesterday, he said their time is running out in Afghanistan. The Taliban in the tribal region of Pakistan is contributing to their problems in Afghanistan. And he put pressure on Pakistani generals to do more so you can really see a building of tensions. And of course, the strike, Pakistani officials here tell us, every time civilians get hurt. We've seen a lot with that here with those strikes in the past week. That works against them. Support for Taliban helps build support for al Qaeda, too -- John.

ROBERTS: And Nic, of course, on this seventh anniversary of the attacks of 9/11, the thoughts run to where is Osama bin Laden and what are the chances of getting him. What is the latest intelligence on where bin Laden might be hiding?

ROBERTSON: It's still anyone's guess. I mean it could be Afghanistan and it could be Pakistan. What we do get is that he does move around. How much does he move around? Certainly, there are reports of people seeing groups of Arabs in remote regions of Pakistan and remote regions of Afghanistan. And perhaps, the biggest clues we have about how we might be hiding or what he might be doing.

I've heard from two sources about what his deputy Ayman al- Zawahiri has been doing as recently as June this year, meeting with Taliban leaders both in Afghanistan and crossing into Pakistan. The interior minister her admitted he was aware of Ayman al-Zawahiri crossing between the two countries. He tried to play it down but said he was aware of it. He also said that Taliban here in Pakistan, they are just the face of al Qaeda at this time which really gives you the idea that they can hide, bin Laden and al-Zawahiri, can hide in both countries right now, John.

ROBERTS: All right. Nic Robertson for us live from Islamabad with the latest on that this morning. It's 41-and-a-half minutes after the hour. Coming up on the first moment of silence to be observed on this seventh anniversary of the attacks at 9/11. It will be at Ground Zero. The exact time when the first aircraft hit the World Trade Center.

Let's listen in here in preparation for that moment of silence.

(JOINED IN PROGRESS)

(NATIONAL ANTHEM)

MAYOR MICHAEL BLOOMBERG, NEW YORK CITY: Today marks the seventh anniversary of the day our world was broken. It lives forever in our hearts and in our history, a tragedy that unites us in a common memory and a common story. We return this morning as New Yorkers, Americans and global citizens remembering the innocent people from 95 nations and territories that lost their lives together that day.

At this ceremony, we will turn to the poets, writers around the world who give expression to the emotions of our feelings. The university - universality of our feelings and remind us of how alike we really are. At this time, please join us and all New Yorkers in a moment of silence.

(MOMENT OF SILENCE)

BLOOMBERG: We come each year to stand alongside those who loved and lost the most. To bear witness to a day which began like any other and ended as none ever has. On that day, lives, very precious to this earth, were cut short. And the entire world was less for it. As the Irish proverb reminds us, death leaves a heartache no one can heal. Love leaves a memory no one can steal.

ALEX SELMA, FAMILY MEMBER OF 9/11 VICTIM: My name is Alex Selma and this is my brother Aidan and this is my sister Emma.

My father John Selma worked with Fitzgerald (ph) in the North Tower. Today, we are wearing a soccer shirt. I remember playing in the yard with him. I remember him pulling me in my wagon. He was strong. He always made me feel safe. He was funny. He always made me laugh. I wish I could remember more, but we were so young when he died. But I do remember how much he loved us and I know how much we miss him.

AIDAN SELMA, FAMILY MEMBER OF 9/11 VICTIM: But even though he is gone, he is still with us and helps us to be better people. For our dad, we try to be kinder and help people in need. We work a little harder in school, we try our best in sports.

ROBERTS: And a moment of silence there at the White House. President Bush, Laura Bush, Vice President Cheney, Lynne Cheney going back into the White House observing the moment of silence there. At the moment that American Airlines Flight 11 hit the North Tower, we saw the moment of silence which actually came a minute early at Ground Zero led by Mayor Michael Bloomberg. As the reading of the 2,751 names of the victims of both the two flights and the people who perished in the World Trade Center collapsed will be read over the next several hours. And seven years away from September 11th.

Kiran, time goes so quickly. And yet there's still so much to be done there at the site at Ground Zero. And you spoke with Mayor Michael Bloomberg about that earlier today.

CHETRY: Yes, he just talked about the difficulty when you're dealing with so many different agencies. He talked about how the city of New York doesn't really doesn't have any jurisdiction over the site but on the surrounding streets. And the difficulties of trying to coordinate that massive, not only clean up, but the plans, the rebuilding. He said, you have to understand, there are active subways. There are so much going on at that site.

But you know, a lot of people especially New Yorkers look at that and say why seven years later are we still seeing rebar and construction sites as opposed to some rebuilding. But he did say that the good news was that this will be the last year probably that you will actually be able to walk down that ramp into that site. By this time next year, it will be well on their way to constructing that Freedom Tower.

ROBERTS: Yes. And as we're watching the events of the remembrance take place at Ground Zero in New York. There will be another moment of silence at 9:03 a.m. which is the time that the next flight hit the South Tower. And then we will go to the Pentagon for a moment of silence there as well as the dedication of the new Pentagon Memorial which is, as we were saying to Fran Townsend a few minutes ago, quite powerful in its simplicity, the benches there at that Pentagon that will be dedicated and it's been a long time coming there at the Pentagon but certainly something that was well worth waiting for.

CHETRY: Absolutely. Well, let's listen right now into the reading of the names. These are family members and students representing the countries that lost individuals.

So we're going to listen right now as they read all 2,751 names of the World Trade Center victims.

(JOINED IN PROGRESS)

UNIDENTIFIED MALE: Alok Agarwal.

UNIDENTIFIED FEMALE: Mukul Kumar Agarwala.

UNIDENTIFIED MALE: Joseph Agnello.

UNIDENTIFIED FEMALE: David Scott Agnes.

UNIDENTIFIED MALE: And my brother-in-law, Robert (INAUDIBLE).

UNIDENTIFIED FEMALE: I'm honored to have read on behalf of my fellow citizens from Antigua.

UNIDENTIFIED FEMALE: Joao Alberto D. Aguair, Jr.

UNIDENTIFIED MALE: Brian G. Ahearn.

UNIDENTIFIED FEMALE: Jeremiah Joseph Ahern.

UNIDENTIFIED MALE: Joanne Marie Ahladiotis.

UNIDENTIFIED FEMALE: Shabbir Ahmed.

UNIDENTIFIED MALE: Terrance Andre Aiken

UNIDENTIFIED FEMALE: Godwin Ajala

UNIDENTIFIED MALE: Gertrude M. Alagero.

UNIDENTIFIED FEMALE: Andrew Alameno.

UNIDENTIFIED MALE: Margaret Ann Alario.

UNIDENTIFIED FEMALE: Gary M. Albero.

UNIDENTIFIED MALE: Jon Leslie Albert.

UNIDENTIFIED FEMALE: Peter Craig Alderman.

UNIDENTIFIED MALE: Jacquelyn Delaine Aldridge.

UNIDENTIFIED FEMALE: David D. Alger.

UNIDENTIFIED MALE: Ernest Alikakos.

UNIDENTIFIED FEMALE: Edward L. Allegretto.

UNIDENTIFIED MALE: Eric Allen.

UNIDENTIFIED FEMALE: Joseph Ryan Allen.

UNIDENTIFIED MALE: Richard Dennis Allen.

UNIDENTIFIED FEMALE: Richard L. Allen.

UNIDENTIFIED MALE: Christopher E. Allingham.

UNIDENTIFIED FEMALE: Anna Allison.

UNIDENTIFIED MALE: Janet M. Alonso.

UNIDENTIFIED FEMALE: Anthony Alavarto.

UNIDENTIFIED FEMALE: Antonio Javier Alvarez.

UNIDENTIFIED FEMALE: And my wonderful brother-in-law Steve Alacino (ph), brother-in-law in name, brother in heart. Steve, your smiles and spirit of life live on with us. Our separation is temporary. Our love for you is forever. Until we meet again.

UNIDENTIFIED MALE: I'm honored today to have represented Argentina. UNIDENTIFIED FEMALE: Victoria Alvarez-Brito.

UNIDENTIFIED FEMALE: Telmo E. Alvear.

UNIDENTIFIED FEMALE: Cesar Amoranto Alviar.

UNIDENTIFIED FEMALE: Tariq Amanullah.

UNIDENTIFIED FEMALE: Angelo Amaranto.

UNIDENTIFIED FEMALE: James M. Amato.

UNIDENTIFIED FEMALE: Joseph Amatuccio.

UNIDENTIFIED FEMALE: Christopher Charles Amoroso.

UNIDENTIFIED FEMALE: Kazuhiro Anai.

UNIDENTIFIED FEMALE: Calixto Anaya, Jr.

UNIDENTIFIED FEMALE: Joseph Anchundia.

CHETRY: And so we're listening there to the reading of the names of all of the victims who died in the World Trade Center. Some of those names being read by family members and loved ones as we just heard there as well. And as we take a look at right now at 8:53 Eastern time of New York City. And the remembrance down there at Ground Zero. We're also going to shift to the Pentagon site where 184 people, including those that were on Flight 77, American Airlines perished in that attack.

ROBERTS: And a moment of silence will be observe there at 9:37 this morning. Also the dedication of this new Pentagon Memorial to take place and another moment of silence at 10:03 this morning in Shanksville, Pennsylvania, where United Airlines Flight 93 out of Newark was headed to an unknown target, believed to be the Capitol Building when of course, the heroes of Flight 93, wrestled the hijackers for control of the aircraft, and the aircraft dove into the ground. All aboard perished.

Seven years since 9/11, we're following it for you here on CNN.

(COMMERCIAL BREAK)

UNIDENTIFIED FEMALE: Paul James Battaglia.

UNIDENTIFIED FEMALE: Walter David Bauer.

ROBERTS: And we're listening to the reading of the names. 2,751 names from Ground Zero in New York City. A moment of silence observed about 11 minutes ago. The time that the first plane, American Airlines Flight 11, hit the North Tower. Another moment of silence coming up there at 9:03. The time the second plane hit the South Tower. Then as well they also have the moments of silence for the collapse of each of the individual towers. Such a moving scene down there at Ground Zero. Every year, seven years out now, and it never fails to bring you to the edge of tears. And, Kiran, as we were saying, this may be the last time at that the families have an opportunity to stand there in the pit at Ground Zero and read the names of those who perished because of development there.

CHETRY: That's right. They say that they're going to be able to really have construction well underway next year at this time. But as you said, seven years out, and the NEWSROOM this morning everyone talking about where they were and what they remember about September 11th, 2001, a moment that all of us who are alive who will certainly never forget as one of the most difficult and memorable moments in our lives.

ROBERTS: And we remember the first radio reports of the plane hitting the North Tower. Was it just a plane on an errant course or was it a plane in difficulty then. Of course, when the second plane hit just after nine o'clock, very clear that it was a terrorist attack.

Also, observances this morning going on at the Pentagon where the plane hit the north side of the building there. It was reconstructed very quickly. But it's taken much longer for a memorial to victims of the crash in the Pentagon to be constructed. It will be dedicated this morning. Our Barbara Starr is watching the observances down there.

Your thoughts this morning, Barbara?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, John, another year, and all of the memories really come flooding back. Myself, senior Pentagon correspondent Jamie McIntyre, both of us in the building that morning. We were very fortunate to get out very quickly but standing that day on the attack site, watching the building in flames, the dead and the wounded being attended to. And now today in the very same place, this really beautiful park, this memorial of 184 trees. A memorial reflecting pool, benches, remembering 184 souls lost here that day. Remarkable heroism, military people who escaped from the building turned around and went right back in to help rescue others to help with the recovery effort.

One of the things that will be very interesting later this morning and a short while. We will hear from former defense Secretary Donald Rumsfeld. Say what you will about what has happened in the intervening years. On that day, Don Rumsfeld was on the attack site.

He was carrying stretchers of the wounded. He kept this building open. He just flat out refused to leave. And since he wouldn't leave, the military wouldn't leave. And it will go down in a day in history when the headquarters of the U.S. military was attacked but it stayed open for the U.S. military on that day, the message was no retreat, no surrender. Many things have happened in the intervening years. But today, it's really a day to remember what happened here on that morning, John. ROBERTS: All right. Our Barbara Starr for us. And of course, remembrances will take place in Shanksville, Pennsylvania today as well. Senator John McCain will be visiting there and then both Senator McCain and Senator Obama will be at Ground Zero later today, suspending the campaigning for this somber remembrance.

CHETRY: That's right. And one other reminder is the tribute light (ph). It happens tonight. The lights go on as the beams of light, these twin beams of light, go on until tomorrow morning at dawn when they slowly fade away. That is remembrance of all of the victims, but also all of the people that worked so tirelessly at the Ground Zero site as well in the aftermath.

ROBERTS: Our coverage continues today of the remembrances of September 11th seven years out. That's it for AMERICAN MORNING.

Let's hand it over to "CNN NEWSROOM" and here is Heidi Collins.