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American Morning

Rockets From Lebanon Hit Israel; Obama to Focus on the Economy; Blair House Guest Mystery Solved; Porn Industry Asking for Bailout; Additional Industries Vy for Bailout Tax Dollars; Red Cross Claims Shocking Discoveries in Gaza; Capitol Hill Fights Urge for Pork-Barrel Spending

Aired January 08, 2009 - 06:00   ET

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


(BEGIN VIDEO CLIP)
KIRAN CHETRY, CNN ANCHOR (voice-over): Breaking news. Rockets hit northern Israel from Lebanon. The threat of all-out war on two fronts. Could the Gaza crisis draw in Hezbollah?

And hard times for the porn industry.

JOE FRANCIS, CEO, GIRLS GONE WILD: It seems the government is more than eager to hand out as much money as possible.

CHETRY: The sultans of smut ask for a $5 billion bailout. Is the economy leaving you too depressed to have sex?

FRANCIS: I could see congressmen getting behind this.

CHETRY: On this AMERICAN MORNING.

(END VIDEO CLIP)

CHETRY: OK.

JOHN ROBERTS, CNN ANCHOR: Got to love the fact that some people find humor in all of this.

CHETRY: Yes, exactly. Well, good morning, it's Thursday, January 8th. Glad you're with us this morning.

ROBERTS: You wouldn't think that the porn industry would need a bailout because with so many people unemployed they're staying at home...

CHETRY: Yes.

ROBERTS: ... and maybe some of them are watching -- you just never know.

Hey, good morning to you. Thanks for being with us.

We begin with breaking news this morning. Fears that the violence in the Middle East could spread. Four rockets fired from Lebanon into northern Israel overnight injuring two people. Israel says it returned fire. The Lebanese government has condemned the rocket attacks and is trying to determine who is responsible.

Meantime, the fighting between Israel and Hamas has intensified this morning. Israeli forces attacking some 60 targets across Gaza, and Hamas firing more rockets into Israel. We're live in Jerusalem with a report for you just ahead.

Barack Obama faces a trillion-dollar challenge when he becomes president in 12 days. He'll deliver what his transition team calls a major speech on the economy today. The president-elect is expected to provide more details of his nearly $800 billion economic recovery plan.

Security at Barack Obama's January 20th inauguration will be unprecedented. U.S. intelligence officials are concerned that the event could be an attractive target for both domestic and international terrorists. They say there is no information about specific threats and the national threat level remains the same.

CHETRY: Back to our breaking news and what could be a major escalation of the crisis in the Middle East. Rockets fired from southern Lebanon into northern Israel overnight, now raising fears that Israel's war with Gaza or in Gaza may spread. The rocket fire comes just as an Egyptian cease-fire proposal is being considered by Israel, the Palestinian Authority and Hamas.

CNN chief international correspondent Christiane Amanpour is live in our Jerusalem bureau. So tell us more about this new -- about this rocket attacks and whether or not this is going to be opening up a new front in the offensive.

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, everybody here, the Israeli army and others are walking back and not calling it a second front. They're not blaming Hezbollah.

What happened was at about 7:00, 7:30 a.m. local time, four rockets were fired from southern Lebanon into the Nahariya area of the western Galilee up in northwestern Israel. And it did injure two civilians slightly and the homeland security guards here have told people to stay close to shelters. But it's way too early to talk about a second front and they're deliberately staying away from that because Hezbollah is denying it and it's believed that potentially that could have come from a renegade group of Palestinians who are also, you know, in southern Lebanon. There are lots and lots of people down there and some of them also have rockets.

Right now, the Lebanese military and UNIFIL, United Nations force that's in southern Lebanon, you know, guarding against these attacks are looking to see where they came from and to see what it's all about.

Meantime, of course, Israel did respond to the origin of that fire and fired artillery back. So it's believed to be an isolated incident at the moment. At the same time, the Israeli front against Gaza intensifies and continues, and this happening when diplomacy is getting a serious look. The Egyptian-French proposal with heavy input from the United States is being looked at today in Cairo. Israel has sent a diplomat or rather a security expert from the defense ministry we believe there to look at it. And also Egypt is talking to the Palestinian Authority and Hamas representatives who have gone to Cairo as well -- Kiran.

CHETRY: All right. So as that cease-fire plan is being mulled over by some of the parties here, we're also hearing some disturbing reports overnight about the impact that all of this is having in Gaza on the children. What's going on with that?

AMANPOUR: Well, a huge amount of pressure of course on Israel has forced it to open a humanitarian convoy and to have bombing pauses for about three hours. It did it yesterday and it's going to do it again today, according to the IDF.

But overnight, a very unusual statement, public statement from the ICRC, the International Committee of the Red Cross, which never goes public, has said that it has found houses that have been damaged and destroyed in the Israeli bombardment, in which it's found 15 bodies, including children who are still alive there, very weak, almost unable to move and just sitting around over the bodies of their dead mothers.

And ICRC is saying that it has been asking Israel since Saturday last to provide access to rescue and to assist the civilian wounded. And it says that it was only granted that permission yesterday, and it's asking for more permission and still hasn't received that from Israel to get others out, and these are in Gaza city.

So, this is serious in the reality and in the fact that the ICRC almost never puts out these kinds of comments. We asked the IDF, the Israeli Defense Forces, about this, and they're saying that they're not giving specifics about this, only to say that their rules call on them to assist wounded and to help in the evacuations and if there is a formal complaint, they'll investigate it -- Kiran.

CHETRY: All right. So, of course, disturbing to say the least. We'll see if anything else moves on that, at least the three hours of humanitarian aid and the pause in the bombing taking place successfully yesterday so hopefully that will happen again. Thanks, Christiane.

ROBERTS: This morning, 12 days until the inauguration of Barack Obama and the president-elect is focusing on the economy. Today he'll give a speech laying out the details of his stimulus package, a difficult balancing act demanding close to $800 billion in new spending, while at the same time calling for budget cuts to reduce the trillion-dollar deficit. But Obama contains the two are not a contradiction and he told NBC last night that the plan will work.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT-ELECT OF THE UNITED STATES: The approach that we've taken is not just to talk with the usual suspects but talk to people that traditionally don't agree with me. And when you got Ronald Reagan's former economic advisers or John McCain's former economic advisers or George Bush's former economic advisers giving you similar advice to what advisers to Bill Clinton or Jimmy Carter are giving you, then you have a sense that across the political spectrum there's some consensus.

(END VIDEO CLIP)

ROBERTS: CNN's Jessica Yellin is watching all of this. She's live in Washington for us this morning, and the incoming president sounds supremely confident about his plans, Jessica.

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: He does, John. And today he is going to sound very confident to the American people, making a major sales pitch, arguing that this massive spending program is both what the nation needs and doable without waste.

(BEGIN VIDEOTAPE)

YELLIN (voice-over): On the economy, no happy talks from the incoming president.

OBAMA: We have an economic situation that is dire.

YELLIN: He's trying to build public support for a stimulus that could cost as much as $800 billion, but don't worry about waste. He promises discipline.

OBAMA: We must scour this budget, line by line, eliminating what we don't need or what doesn't work.

YELLIN: He named a spending watchdog. Nancy Killefer will take the new role of chief performance officer. She'll decide which programs are worth funding over the long-term, but the stimulus is a different story. To work, that money has to go out the door fast. Even supporters say that leads to waste.

REBECCA BLANK, SR. FELLOW, BROOKINGS INSTITUTION: You know, whenever you try to spend a lot of money fast, you know, some of it is going to be spent in ways that you might not put it there if you were being a little bit more thoughtful and taking a little bit more time.

YELLIN: Possible examples from this list of ready-to-go projects compiled by the nation's mayors -- a $20 million minor league baseball museum, a $4.8 million polar bear exhibit, $500,000 for environmentally friendly golf courses in Dayton, Ohio. The mayors insist projects like these will jump-start the economy.

MAYOR MANUEL DIAZ (D), MIAMI: We must invest where we get the greatest return.

YELLIN: And some economists say a little bit of waste is worth it if it gets the economy back on its feet.

BLANK: If the objective is money spent in the economy that's going to create demand and buy services from businesses and stimulate consumer spending, it probably matters a little less that those are the most thoughtful projects.

(END VIDEOTAPE)

YELLIN: Now, John, when Obama speaks today, don't expect him to reveal the final number for his stimulus plan or too many more real deals. The idea is to persuade folks that the nation does need a stimulus. And one of the early lines they've released from the speech, Obama will say this will certainly to the budget deficit in the short term, but they'll say equally certain are the consequences of doing too little or nothing at all. That speech at 11:00 a.m. Eastern this morning -- John.

ROBERTS: Looking forward to that, though. I don't know that anybody knows what the ultimate cost of this is going to be, but it's (INAUDIBLE).

Jessica Yellin for us this morning. Jessica, thanks so much.

CHETRY: Here's a look now at some other stories making news later today. From his house to the big house, a judge could decide today if accused swindler Bernard Madoff violated the terms of his bail and must go to jail. Prosecutors say that he mailed jewelry and watches worth more than $1 million to family and friends.

At 4:00 p.m. Eastern, Roland Burris is expected to explain why he accepted the Senate appointment from Illinois tainted governor Rod Blagojevich. Burris is scheduled to testify in Springfield, Illinois before an impeachment panel that's investigating the governor.

And confirmation hearings for Barack Obama's cabinet begin today at 10:00 a.m. Eastern time. Former Senate Majority Leader Tom Daschle is up for the secretary of Health and Human Services post. Ted Kennedy is slated to chair today's hearing.

Also this afternoon in a tradition dating back centuries, the House and the Senate will come together to count and certify the electoral college vote that gives Barack Obama the presidency. The final tally for the electoral college is 365 for Obama, 173 for Senator John McCain -- John.

ROBERTS: Well, this morning, times are so tough that the porn industry says it wants a piece of the bailout pie. Are they really desperate for cash or is it just a publicity stunt? We'll find out.

It's 10 minutes after the hour.

Sorry, try for a hotel. The Obama family shoots for an early check-in at Blair House, but the White House says no room at the inn.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Consideration of these children that are going to go to school, why not let them come?

(END VIDEO CLIP) ROBERTS: So who is the mystery guest keeping the president-elect at bay? We finally have an answer ahead on the "Most News in the Morning."

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JON STEWART, HOST, "THE DAILY SHOW WITH JON STEWART": Sanjay Gupta? This guy?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: It was a real rush. Out of all the things I had on my to-do list, fire eating wasn't one of them.

STEWART: There you have it, kids, a message from your surgeon general. Fire! A surprising and healthy snack.

(END VIDEO CLIP)

ROBERTS: Come on, leave him alone.

This morning, as they have done for the past few days, the Obamas are waking up in the Hay-Adams hotel in Washington. The government's Blair House was booked. So who was the important guest that bumped the future first family?

CNN's Jim Acosta is live in Washington. He's been digging into this and Jim, you found an answer.

JIM ACOSTA, CNN CORRESPONDENT: Yes, John. This is being called here in Washington the Blair House witch hunt project. It could also be called the Blair ditch project.

A spokeswoman for the first lady, Laura Bush, conceded an e-mail to me that this story has "taken on a life of its own." That does tend to happen in this town. But the Blair house mystery has been solved -- sort of.

(BEGIN VIDEOTAPE)

OBAMA: I just want to thank the president for hosting us.

ACOSTA (voice-over): It didn't come up on camera at the presidential power lunch, but it's been a Washington mystery for weeks.

ALLAN LICHTMAN, PRESIDENTIAL HISTORIAN: It's like a big splat of egg in the face of the Bush administration for it to come out this way.

ACOSTA: An official hotel for guests of the White House, the Blair House is supposed to be available to the president-elect on January 15th. With the girls starting school on the 5th, the Obamas had asked for an early check-in but the Bush administration said the house was already booked, and wouldn't provide details. DANA PERINO, WHITE HOUSE PRESS SECRETARY: Well, no, we worked very well with the Obama team and helping provide office space and other things like that, and they'll be able to move in on the 15th.

ACOSTA: As it turns out in addition to a few events already slated for the Blair House, there was a mystery guest.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Somebody said don't you and John Howard appear to be so close. Don't you have any differences? And I said yes, he doesn't have any hair.

ACOSTA: Who's not a mystery anymore. Former Australian Prime Minister John Howard will be staying there on January 12th to receive the Presidential Medal of Freedom.

LICHTMAN: He was one of the world leaders when he was in power, who was most staunchly behind the Bush administration's war in Iraq.

ACOSTA: The coalition of the willing?

LICHTMAN: He was one of the very few of the really willing.

ACOSTA: But it's still not clear why there wasn't enough room at the inn for the Obamas. The 70,000 square-foot complex is actually bigger than the White House. There are 119 rooms, 14 guest bedrooms, 35 bathrooms, four dining rooms, dry cleaning facilities, an exercise room and a fully-equipped hair salon. Washington writer and socialite Sally Quinn says an executive order should have been issued.

SALLY QUINN, "THE WASHINGTON POST": If I had been the Bushes, I would have said, you know, mi casa su casa. Of course, we would love to have you and your children stay there.

(END VIDEOTAPE)

ACOSTA: The first lady's spokeswoman says she believes the Obama family is "very understanding" about the scheduling conflict. The Obama transition team has its own statement that can be summed up as no worries. Translation, they got bigger fish to fry -- John.

ROBERTS: And it's not like they're staying at the no-tell motel either. The Hay-Adams is quite a nice place.

ACOSTA: They are. Very nice digs, in fact. Maybe better than the Blair House, John.

ROBERTS: You just never know.

Jim, thanks very much.

Sixteen minutes now after the hour.

CHETRY: X-rated emergency. The guys behind "Hustler" and "Girls Gone Wild" want Washington to bail out the porn industry.

(BEGIN VIDEO CLIP) LARRY FLYNT, PUBLISHER, "HUSTLER" MAGAZINE: Why not? You know, they did it for the automobiles. They did it for the banks. We got a lot of unhappy people out there. They're back to the (INAUDIBLE).

(END VIDEO CLIP)

CHETRY: A joke? Maybe. But hear how it could lead Washington with a perfect pen of a headache, ahead on the "Most News in the Morning."

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: These are the exact circumstances people find themselves in right before they start having sex for money.

What, you got an idea?

UNIDENTIFIED MALE: We can make a porno.

UNIDENTIFIED FEMALE: Not the idea I was looking for.

UNIDENTIFIED MALE: It's all mainstream now.

(END VIDEO CLIP)

CHETRY: Well, talk about a stimulus. Can the porn industry get a piece of the bailout pie? They're certainly going to at least try.

Industry titan Larry Flynt and Girls Gone Wild" CEO Joe Francis now saying that they want a $5 billion bailout. Why would they need your tax dollars?

CNN's Erica Hill is "Minding Your Business."

(BEGIN VIDEOTAPE)

ERICA HILL, CNN CORRESPONDENT (voice-over): You may not know it, but you're too depressed to have sex, and that's threatening to bring the economy down. At least that's the claim from some of America's best known adult entertainment execs. Their answer? Another government bailout.

JOE FRANCIS, CEO, GIRLS GONE WILD: It seems the government is more than -- more than eager to hand out as much money as possible and nationalize as many businesses, and have their hand in it. Why wouldn't the government want to be Larry and I's partner in the adult entertainment industry?

HILL: The Larry he's referring to is Larry Flynt, publisher of "Hustler" magazine. Today, the two adult entertainment giants issued a joint statement asking for a $5 billion bailout and calling on Congress to "rejuvenate the sexual appetite of America by supporting the adult industry." Flynt says Americans are "too depressed to be sexually active" and that it's hurting business. DVD sales and rentals are off more than 20 percent, according to Francis, but the industry isn't exactly headed for bankruptcy.

FRANCIS: It's not that we are under the impression that the porn industry needs a bailout, but we thought that we would get in line with everybody else.

HILL: And it's that admission that has some lawmakers fuming.

REP. BRAD SHERMAN (D), CALIFORNIA: I thought it was a shame that two porn industry executives would pull this publicity stunt. America faces some really difficult times. We need to focus our national attention on the kinds of reforms that we're going to need to make sure this never happens again.

HILL: Brad Sherman represents Southern California's San Fernando Valley, widely referred to as the porn hub of America. While it's tough to pinpoint exact numbers, adult entertainment is estimated to bring in anywhere from $3 billion to $13 billion annually.

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: The fact is, a lot of money goes through this industry, and it is influential. But it is not the auto industry and it's not the construction industry and it's not the banking industry. It is not crucial to the American economy that the porn industry remains healthy.

HILL: And that's why some look at this as more of a tongue and cheek stunt than an earnest request for federal aid. But Francis denies that.

FRANCIS: I think there's a lot of lawmakers out there that would like to prove a point. Our industry also supports small business. So I could see -- I could see congressmen getting behind this who are truly offended by the nationalization of our system and the erosion of our free market capitalism.

HILL: Buzzwords that are much sexier in Washington than adult entertainment.

Erica Hill, CNN, New York.

(END VIDEOTAPE)

ROBERTS: Well, Barack Obama is warning of 10 percent unemployment if his stimulus plan isn't passed quickly. Everybody's got an idea for how to spend it and the lobbyists are lining up. Find out who is making a pitch and why they believe they're entitled to your tax dollars.

It's 23 and a half minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: It's coming up now on 26 minutes after the hour. The incoming president-elect giving a major speech this morning at 11:00 outlining the plans for his economic stimulus package. Of course, we'll be covering that live here on CNN.

During that speech, Barack Obama will say that we risk 10 percent unemployment if Congress does not pass his economic stimulus plan quickly. Dire warnings coming from the incoming president.

Joining me now to talk more about this and who is lining up for all that cash from Washington, "Wall Street Journal" reporter Elizabeth Williamson.

Elizabeth, good to see you this morning. Certainly the president-elect is putting a hard sell on this economic stimulus plan with these warnings of potential 10 percent unemployment.

ELIZABETH WILLIAMSON, REPORTER, "THE WALL STREET JOURNAL": Yes, absolutely. Ten percent, John, as you know, is double-digit, symbolic and something that will be attention-grabbing, and pull a lot of attention toward passing the stimulus package.

ROBERTS: So, he wants job creation, and there are no shortage of people who have ideas on how to create jobs. You had a fascinating article in "The Journal" of all of the people who got their hands out, and you believe that of the ones that you went through, and we'll go through those in just a second, that could be just the tip of the iceberg.

WILLIAMSON: Yes, absolutely. And the days since that story has run and in the days in which they're finalizing the stimulus package, there has been a real clamor on Capitol Hill to have different measures included from the ridiculous to the sublime. And, you know, with an $800 billion stimulus package, and they're already saying that it could be bigger than that, definitely a lot of people who feel that their industry deserves a slice of that.

ROBERTS: We'll get to some of the sublime ones in just a second and outline those. But tell me some of the ridiculous ones that have crossed your path since that article first appeared.

WILLIAMSON: Sure. Low-income people need some help, according to some in the electronics industry affording high definition television. There was one individual who wrote to us and was pushing for mandatory escapes lights to be installed on public buildings. There have been a lot of demands for tariff, you know, import tariff lifts. Just a lot of really interest things and all with the rationale that these would create jobs and be truly stimulative.

ROBERTS: All right. Now to the sublime, and we've got some graphics to help people at home understand some of this. From the energy industry, tax breaks for wind farms, from the steel industry, provisions to buy American protection for infrastructure projects so that any infrastructure project would have to use American steel.

Home builders want low government-backed national mortgage rates. Universities want a little piece of the pie. They want campus repairs, student grants, perhaps an extra $700 a year for every student. Environmentalists -- they're really lining up here -- $400 plus billion in projects. I think you said that they were outlining some 80 projects and they were still counting. And major retailers want to repeal import tariffs on clothing. You mentioned that briefly.

Are any or all of these people likely to get what they want?

WILLIAMSON: Well, it will be interesting to see how this shakes out. And obviously, the winners will be those who can make the greatest case for the fact that this helps people hit hardest by the downturn in the economy.

The environmentalists say they have the ear of the transition team. They say that the Obama administration incoming has told them that they need to compile this list, and that $400 billion worth of projects which, as you know is half of what the package is slated to be, will likely not get out there, but probably a good proportion of them will.

Alternative energy projects, some of the things that might not get out there are things like the tourism industry, looking for the establishment of a government office to promote American travel to foreigners. This is something that probably won't fly.

ROBERTS: You know there's a famous children's book called "Give a Mouse a Cookie." You give a mouse a cookie and it will probably ask for some milk. After it asks for milk, then it will ask you if you got another cookie.

The auto industry and the financial industry bailout, are they the mouse and the cookie here? And people say wow, lots of free money in Washington. Let's just pile on.

WILLIAMSON: Yes, absolutely. I think that that's exactly what's going on, and there are a lot of cookies out there, so a lot of people clamoring to get them.

ROBERTS: Elizabeth Williamson from the "Wall Street journal," it's good to see you this morning.

WILLIAMSON: Nice to be with you, John.

ROBERTS: Thanks for coming in.

CHETRY: Well, coming up on half past the hour now. Following breaking news, four rockets fired from Lebanon into northern Israel overnight injuring two people. Israel says it returned fire.

The Lebanese government has condemned those rocket attacks and is trying to determine who's responsible. Meantime, the fighting between Israel and Hamas has intensified this morning as well. Israeli forces attacking some 60 targets across Gaza, and Hamas firing more rockets into Israel.

We're going to be live in Jerusalem just ahead. Charges of racial profiling in the shooting of the son of a former major league baseball player Bobby Tolan. 23-year-old Robert Tolan, who was black, was mistakenly shot by a police officer outside of his home in Texas on New Year's Eve. The officer thought he had stolen an SUV. The vehicle was his though. Doctor says that the 23- year-old will likely have to live with the bullet in his liver for the rest of his life. Police and the D.A. are investigating the incident to see if any charges will be filed against the officer involved.

And in Oakland, California, police in riot gear had to restore order after violent protest over the deadly shooting of an unarmed man by a transit officer. At least 15 people were arrested. The officer is accused of shooting a man on New Year's Day. He resigned just before he was scheduled to be interviewed by investigators yesterday.

And a new report says the nation's tax code is so complicated that Americans spend nearly $200 billion just trying to figure out how much they owe. The report from the National Taxpayer Advocate also says that the IRS needs to do more to help financially-strapped taxpayers meet their obligation. There's no doubt that you might have your own IRS questions. Well, our Gerri Willis is blogging throughout the show so you can send those questions her way.

And now back to our breaking news. Fears of an escalation in fighting between Israel and its Arab neighbors. Rockets fired from southern Lebanon, crashing into northern Israel, and concern that the war in Gaza could spread comes just as a cease-fire proposal is gaining traction in Egypt.

CNN chief international correspondent Christiane Amanpour is live in our Jerusalem bureau.

Tell us more about these rockets coming from Lebanon, and who is or is not claiming responsibility this morning.

AMANPOUR: Well, Kiran, they're playing it down over here. It was four rockets in the early morning hours, this morning, after dawn, and they came down in northern Israel. They were fired from southern Lebanon, and of course, everybody sort of wondered and worried whether it would be a repeat of what happened in 2006 between Hezbollah and Israel. But this does not seem to be the case. What appears to have happened is that there were four rockets. Nobody has claimed responsibility, but Hezbollah has apparently informed the rest of the Lebanese government -- it is also part of the Lebanese government, that it was not their rocket.

So there's an investigation going on within Lebanon down there to see who it was. And here in Israel, they landed and slightly wounded two people in the northern Israeli town of Nahariya, up near Delb. Meantime, the battle against Gaza does continue, and Israel is preparing if it needs to, to intensify it. So it's planning to intensify if it needs to, but it's also considering this Egyptian cease-fire proposal and it sent an official to Egypt to discuss this. So that is happening right now.

In addition, the humanitarian convoy or rather corridor is open right now. It's been open since the last half an hour and it will continue for another two and a half hours. This, between 1:00 and 4:00 local time to give a pause for humanitarian re-supply for the residence of Gaza -- Kiran.

CHETRY: And this comes at a time that the Red Cross is accusing Israel of neglecting the wounded in Gaza. What more do you know about the demand to deal better with the civilian crisis there?

AMANPOUR: Well, they continue to demand access and to be able to allow their ambulances and local Palestinian Red Crescent ambulances on the ground to evacuate wounded civilians or bodies from the houses that have been hit in the Israeli military action down there.

And they're saying that they finally got access yesterday after asking for about three or four days to get in. And they found a row of houses inside Gaza City, in which they found 15 corpses, they say, plus several children, just clinging to life, barely, very weakened and sitting there around the bodies of their dead mothers.

And so, they've issued a very unusual public demand for more access in Gaza, and the Israeli officials whom we've contacted have said, well, if there is a formal demand, they'll investigate it. And they insist that they are usually doing what they can to help evacuate civilians and the wounded. But the ICRC says that, you know, they've had quite considerable trouble getting in and they want access -- Kiran.

CHETRY: All right. Christiane Amanpour for us in Jerusalem this morning. Thanks.

ROBERTS: Science and Scientology. John Travolta's son taken off medication meant to stop seizures like the one that killed him. Was it a medical decision or one influenced by the actor's faith? The church of Scientology, speaking out, ahead on the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Welcome back to the Most News in the Morning. And look at that, fantastic sunrise. Thanks to our friends at WSVN in Miami for that. You're looking at Miami, Florida, looking out over Biscayne Bay where it's going to be 75 degrees today. Perfect football weather for the BCS championship. Tonight, Florida faces off against Oklahoma in that championship game that would be in Miami. Our Rob Marciano taking a look at the radar down there in Florida, Sooners and the Gators tonight.

Rob, you got some money riding on this?

(WEATHER REPORT)

ROBERTS: I heard that Interstate 5 is closed in some places.

ROB MARCIANO, AMS METEOROLOGIST: Yes, like a 20 or 30-mile stretch and also Snoqualmie Pass is closed, and they hope to reopen it today, but they've been dealing with avalanches there also. So getting out of the Seattle area, it's hard to do even by car.

ROBERTS: It's a beautiful place but tough times there right now. Rob, thanks so much. We'll check back with you later on.

MARCIANO: Sounds good.

CHETRY: Well, it's been the subject of an emotional and unending debate for more than 45 years. Who shot John F. Kennedy? Now, yet another new book on the subject says it has the answer. Details of a confession in the assassination of the president that the FBI may not have wanted you to know about.

(COMMERCIAL BREAK)

CHETRY: The Travolta family still in a state of mourning over the death of their son, Jett. He died of a seizure last week in the Bahamas. Jett was just 16. The Travoltas will hold a private memorial service today at the family's estate in Ocala, Florida.

Well, John Travolta and his wife, actress Kelly Preston, are Scientologists. As we've seen with another follower, Tom Cruise, his faith has taken a very firm stand on prescription drugs especially regarding children. Scientology's position on medication is now raising questions about the care Jett received. CNN's Randi Kaye is following that for us.

RANDI KAYE, CNN CORRESPONDENT: Good morning, John and Kiran. An attorney for the Travolta family said Jett Travolta's seizures were frequent and extremely serious, yet the 16-year-old was not on anti- seizure medication.

(BEGIN VIDEOTAPE)

KAYE (voice over): He had been for years, until his parents grew concerned, consulted neurosurgeons and took him off it. In the end, a seizure killed him.

Tommy Davis, a spokesman for the Church of Scientology, told me, despite rumors the church does not believe in medicine, it does. Davis says it's church policy that someone see a doctor for a physical condition. Davis says Scientologists get conventional medical treatment for medical conditions and they use prescription drugs as prescribed by a doctor.

(on camera): That's in line with what the family's lawyers have said that Jett took the anti-seizure medicine, Depakote, for years, but it lost its effectiveness. The lawyers also said that no one has suggested that withdrawal of the medicine caused the fatal episode.

(voice-over): The church is clear that what it doesn't agree with is drugs to treat psychiatric conditions such as antidepressants. This was brought to the forefront in 2005. Actor Tom Cruise, a Scientologist, and "The Today Show's" Matt Lauer debating drugs prescribed by psychiatrists.

TOM CRUISE, ACTOR: Do you know what Adderall is? Do you know Ritalin? Do you now that Ritalin is a street drug? Do you understand that?

MATT LAUER, HOST, "THE TODAY SHOW": The difference is...

(CROSSTALK)

CRUISE: No, Matt, I'm asking a question.

LAUER: I understand there's abuse of all of these.

CRUISE: No. You see here's the problem. You don't know the history of psychiatry. I do.

KAYE (voice-over): The church's spokesman explains medical diagnoses are based on medical conditions. Psychiatric conditions are subjective. Years ago, Kelly Preston shared her views against psychotropic drugs with "Access Hollywood."

KELLY PRESTON, ACTRESS: We become a psychiatric or a prescription drug culture. The whole chemical imbalance fallacy. There are no tests for chemical imbalances.

KAYE: And she's right. The American Psychiatric Association admits there is no way to test for a chemical imbalance. But many doctors believe drugs and therapy do help.

Jett was cremated in the Bahamas, where he died, though Davis says the church does not insist on cremation. He says Scientologists believe that people are immortal spiritual beings, that you've lived before and that you will live again.

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KAYE: If Travolta and his wife have a Scientology funeral service, Davis says it will acknowledge a life well-lived and wish the person well in his future life and existence. Jett's parents hope, as Scientologists, they will see their son again -- John, Kiran.

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CHETRY: Who killed John F. Kennedy?

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UNIDENTIFIED MALE: The flash apparently official, President Kennedy died at 1:00 p.m.

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CHETRY: This morning, a new book shining the spotlight on an old name.

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UNIDENTIFIED MALE: It was one time when he just went off on a tirade. "Yes, I had the S.O.B. killed." "I'm glad I did it."

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CHETRY: The criminal being thrust back into the conspiracy, and the evidence the author is hanging his story on. You're watching the Most News in the Morning.

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ROBERTS: Twenty-eight minutes after the hour. The Obamas move into the White House in 12 days' time. And here's something that could help them make a very important decision -- the first ever presidential puppy debate. It appeared on "THE DAILY SHOW." It was moderated by our own Anderson Cooper. Check it out.

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ANDERSON COOPER, CNN HOST, "ANDERSON COOPER 360": Princess, there have been allegations that your campaign has spent hundreds of thousands of dollars on wardrobe and collars. Your critics say you're out of touch with the average American.

Rags, do you think, given your obvious medical condition, that you would be physically able to execute the duties in the White House?

Mr. Skittles, you scratch, you pee, you poo, and quite frankly, I don't think you're very cute. How do you respond?

UNIDENTIFIED MALE: It was all going very well, until inevitably, a protester.

COOPER: Please do not interfere with Rags. Rags, do not -- Code Pup, we do not have time for your puppy agenda. Do not confront the protester. Get this bitch off the stage.

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CHETRY: So cute.

ROBERTS: I love the comedian in the lampshade.

CHETRY: You know, the reason Anderson is so funny is because he's just -- he stays the straight guy, right?

ROBERTS: He's totally dry -- totally dry about the whole thing.

CHETRY: Love it.

Well, what could be cuter than animals and babies? How about animals and babies falling asleep. There's now an Internet site that's devoted entirely to animals and infants nodding off and fighting sleep. And CNN's Jeanne Moos shows us it's really catching on.

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JEANNE MOOS, CNN NATIONAL NEWS CORRESPONDENT (voice-over): If there's one thing better than watching a baby wake up smiling, it's watching cute things falling asleep. Be it a polar bear swimming as it dozes, or a snoring dog. Or a sleepy duck. Videos of a feather flock together at the Web site cutethingsfallingasleep.org.

It was dreamed up by this California comedy writer.

NICK MALIS, CREATOR, CUTETHINGSFALLINGASLEEP.ORG: We call it the head bob. You know, jerks and suddenly awake. That's universally funny.

MOOS: Nick Malis rates each video on a 1 to 5 scale for cuteness and sleepiness. He's yet to give a perfect 5 for cuteness. So this dachshund...

UNIDENTIFIED MALE: Rusty, suffers from narcolepsy.

MOOS: ...scored a five for sleepiness, for suddenly killing over.

MALIS: You get extra cuteness points if you actually fall asleep on something.

MOOS: Whether it's a table or the rung of a chair, it's even better if your head falls off something, preferably over and over again.

What you won't see on the site are adult humans. No vice president dozing at a cabinet meeting or former president at a speech.

MALIS: For cuteness, Bill would probably get a three.

MOOS: The Web site favors babies.

(MUSIC PLAYING): I am sleepy.

MOOS: Parents add their own music. Since the site is called cutethingsfallingasleep, the idea is not to show things already sleeping.

UNIDENTIFIED MALE: Oh!

MOOS: But rating kids for cuteness can be touchy.

MALIS: I gave a baby a two and then the next day the mother wrote me and said, you know, I think my son's a little cuter than a two.

MOOS (on camera): Now if you're having trouble falling asleep, maybe you can pop a couple of Ambien and watch a few minutes of cute things falling asleep, right before bedtime.

(voice-over): Some creatures like this sleepy sloth are more creepy than cute. This hairless sphinx scored an amazingly one on the cutest scale. But any pup that falls asleep in his water bowl deserves kudos, especially when he mansions to do it repeatedly without drowning himself. And don't you just hate it when you're so tired, you can't keep your nose off the table. Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

CHETRY: Breaking news, rockets hit Israel from a new front, and Israel fires back. Whether it could spoil new hopes for a cease-fire.

Plus, hard up for a bailout. Larry Flint asks taxpayers to help the porn industry.

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UNIDENTIFIED MALE: I think the government has an obligation to rejuvenate everybody's libido.

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CHETRY: Whether the multibillion-dollar industry really needs a little lift. You're watching the Most News in the Morning.

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CHETRY: Some top videos right now on cnn.com. Most popular, this Los Angeles woman is now believed to be the oldest person in the world. Gertrude Baines was born in Georgia 114 years ago, when Grover Cleveland was president. She's a daughter of a former slave and says she's excited about President-elect Obama. Baines has become the oldest person after a 115-year-old Portuguese woman recently died.

Also, check out this X-ray. It shows a knife inside of a woman's jaw. She's now suing the hospital. She was treated for stab wounds three years ago, and says she's been suffering from headaches, and a new x-ray reveals that part of the knife was never removed.

And iReporter Debbie Davis captures these images of Cuban refugees being rescued at sea. She was vacationing on the "Norwegian Pearl" when the ship turned around and help rescued five refugees. And that's what's most popular on cnn.com.

ROBERTS: Less than 48 hours, that's all it took from the opening gabble of the 111th Congress until talk turned to wasteful earmarks. But in this economy, more and more lawmakers are calling for Capitol Hill to tighten its collective belt. Our Joe Johns has got more from Washington this morning -- Joe.

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JOE JOHNS, CNN CORRESPONDENT (on camera): John and Kiran, two days of the brand new Congress was all the time it took to renew the war against congressional earmarks and pork barrel spending. Remember, 12 months ago, Congress started the fight to get rid of those pesky federal spending projects that just seem to pop up everywhere. And now, a lot more people are on board, including Barack Obama.

Arizona Senator John McCain, you'll also remember earmarks have long been his favorite target, today pointed out a few of last year's earmark greatest hits, including $188,000 of your money spent on something called the Lobster Health Coalition at the Lobster Institute in Maine. Perhaps they're best known for, and I'm not kidding, lobster dog biscuits. If you think that's a creative way to spend your money, then you'll love this.

SEN. JOHN MCCAIN (R), ARIZONA: The Lobster Institute has been working on its lobster cam, that's lobstercam.com. This is a lobster trap at the bottom of the ocean with a camera in it.

JOHNS: That's close. It's actually called thelobstercam.com, but the last time we checked no TV signal and no made for TV crustaceans. They do have some achieve picks. We called and e-mailed the Lobster Institute today, no response. Our colleagues at "Time" magazine have also collected their top ten list of most outrageous earmarks of the last year, and yes, the Lobster Institute made their list, too.

One of theirs and ours was the tax break worth up to $2 million that the government gave to makers of children's wooden arrows. That's right, wooden arrows. And this tax break was tucked into, of all things, the big bailout bill that was rushed through to keep the economy from collapsing.

Then there was the $98,000 to arrange a walking tour of a place named Boydton, Virginia. Though, respectfully, other than maybe the courthouse there's not much to see. The "Time" magazine list includes one earmark we almost miss.

Another one from former Senator Ted Stevens of Alaska. $150,000 to get rid of the rats in the Aleutian Islands -- rats. Of course rats have been in the Aleutians, and almost everywhere else for a very long time. Longer even than congressional earmarks. But our guess is rats will finally disappear about the same time Congress gets over its urge to spend your money on pork -- John and Kiran.

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CHETRY: Joe Johns for us, thanks.

Coming up on two minutes before the top of the hour. A look at the top stories right now. Israel this morning taking fire from a new direction and possibly a new enemy. Just hours ago, northern Israel was slammed by rockets out of Lebanon, threatening a second front in the conflict for the Jewish state. So far there's been no claim of responsibility. Lebanon's prime minister is condemning the attacks and saying his government is looking into who was responsible.

Illinois Senate appointee Roland Burris is back in Chicago after a failed attempt to be seated in the Senate. But Senate Democrats are softening their stance on Illinois Governor Rod Blagojevich's pick. Senate Majority Leader Harry Reid says the decision from Illinois' top court could clear the way for Burris to be sworn in, and Burris is remaining confident.

(BEGIN VIDEO CLIP) ROLAND BURRIS (D), ILLINOIS SENATE APPOINTEE: The only thing I regret is not being able to walk on that floor with my colleagues and be sworn in. And that I look forward to in the very near future.

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CHETRY: And more than a foot of rain forcing tens of thousands to evacuate as flooding reaches historic levels. This is in western Washington State. The problem is going to be made worse because unseasonably high temperatures have actually caused a lot of snow to melt. Many roads and railways are closed because of flooding and mudslides.

Dire economic warning. CNN has obtained excerpts from a major economic speech that Barack Obama is giving just hours from now. And the president-elect says the economy could become dramatically worse with unemployment eventually topping 10 percent. Yesterday, he was asked whether he is confident his stimulus plan will work.

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OBAMA: The approach that we've taken is not just to talk to the usual suspects but talk to people that traditionally don't agree with me. And when you've got Ronald Reagan's former economic advisers or John McCain's former economic advisers, or George Bush's former economic advisers, giving you similar advice to what advisers to Bill Clinton or Jimmy Carter are giving you, then you have a sense that across the political spectrum, there's some consensus.

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