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CNN Sunday Morning

Israelis, Hamas Face Off in Gaza City; Busy Week Ahead for President-Elect Obama

Aired January 11, 2009 - 07:00   ET

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


T.J. HOLMES, CNN ANCHOR: Hello to everybody. From the CNN Center in Atlanta, Georgia, this is CNN SUNDAY MORNING for this January the 11th. I'm T.J. Holmes.
BETTY NGUYEN, CNN ANCHOR: Good morning, everybody. I'm Betty Nguyen. It's 7:00 a.m. here in the east.

Developing this morning in Gaza City, Israeli soldiers and Hamas militants face off in two parts of the city. At the same time, Israel's prime minister announces: soldiers are close to reaching goals of the offensive in Gaza.

HOLMES: It's going to be another busy week for the president- elect. You know, I don't think he's going to have a week off for, I don't know, four years maybe. But this morning, he's going to be talking about his economic stimulus plan, a lot of talks involving his team and folks on Capitol Hill. We're going to start there.

NGUYEN: And a lot of talk and preparation is going down in Washington this morning. It's an early live look for you, but what they are doing is preparing and rehearsing for what is going to happen on Inauguration Day. Parade route and all that stuff, we're going to take you there live this morning.

In the meantime, though, Barack Obama's economic team should be loading up on caffeine this morning. And they have had a long workday, and will have another one ahead. The team is pushing for quick passage of that massive economic stimulus package.

HOLMES: And, of course, there's going to be a couple of snags, few problems. Politics always plays a role in this, but as our deputy political director Paul Steinhauser now explains, some of the issues Obama is going to have are not exactly coming from the other side of the political aisle.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Betty, T.J., in the sign of just how much is at state, Senate Democrats will meet today with members of Barack Obama's economic team. On the agenda at this rare Sunday meeting, the president-elect's stimulus plan to pump up the economy. Mr. Obama wants the bill on his desk by the middle of next month. That means speeding up negotiations.

But the president-elect is getting pushback from the members of his own party. Congressional Democrats won't rubber-stamp everything Mr. Obama wants in his stimulus plan. Some top Democratic lawmakers say they want a bill with more spending on the country's infrastructure like roads, bridges, schools and hospitals, and less on tax cuts.

If you are surprised the congressional Democrats and Democratic president don't always see eye to eye, here is some history. There was tension between Bill Clinton and congressional Democrats during his first three years in office, when Democrats ran Capitol Hill. And President Jimmy Carter often clashed with the Democrats who control Congress during his four years in office -- Betty, T.J.?

NGUYEN: All right.

HOLMES: Well, Barack Obama says he will be breaking his campaign promises, per se, but those promises might not come as quickly as some might have hoped. In the interview that will air on ABC today, Obama told George Stephanopoulos that everyone is going to have to sacrifice in this economy.

(BEGIN VIDEO CLIP, ABC NEWS EXCLUSIVE)

BARACK OBAMA, (D) PRESIDENT-ELECT: Not everything that we talked about during the campaign are we going to be able to do on the pace that we had hoped.

GEORGE STEPHANOPOULOS, ABC NEWS: Let me press you on this. At the end of the day, are you really talking about the course of your presidency some kind of a grand bargain? That you have tax reform, and health care reform, entitlement reform including Social Security and Medicare, where everybody in the country is going to have to sacrifice something, accept change for the greater good?

OBAMA: Yes.

STEPHANOPOULOS: And when will that get done?

OBAMA: Well, right now, I am focused on a pretty heavy lift which is making sure that we get that reinvestment and recovery package in place. But what you described is exactly what we're going to have to do. What we have to do is to take a look at our structural deficit, how are we paying for government, what are we getting for it, and how do we make the system more efficient.

STEPHANOPOULOS: And eventually sacrifice from everyone?

OBAMA: Everybody is going to have to give. Everybody is going to have to have some skin in the game.

(END VIDEO CLIP)

HOLMES: Well, he talks about sacrifice there and what the country is going to have to do and the economy he's dealing with -- he did take a moment last night with family. This is a picture of them from last night. They took a short trip to the Memorial, the Lincoln Memorial. Check it out.

They are, you know, a little family outing. They're not going to get a whole lot of these. Fairly private, if you will, if you got, you know, 100 Secret Service guys around you, for the most part. But, of course, nine days from now, Barack Obama is going to be sworn in on the Bible used by President Lincoln.

NGUYEN: And that Memorial, it's just a beautiful sight especially at night. We see another look right there.

HOLMES: Yes.

NGUYEN: Well, President Bush will have to go back to flying Delta or AirTran, and maybe even Southwest. The last scheduled wheels down for President Bush aboard Air Force One was yesterday, when he and the first lady returned to Andrews Air Force, Maryland from Norfolk, Virginia. They were in Virginia to attend the commissioning of a Navy carrier named for the president's father. And after landing, the president met privately with workers who handle flight operations for Air Force One.

Caroline Kennedy had her job interview yesterday. She met with the New York Governor David Paterson. The daughter of the late JFK wants to replace Senator Hillary Clinton. The governor has the sole power to name the Clinton's replacement but says he won't do so until Clinton is confirmed as the next secretary of state. Several others are said to be interested in that appointment.

HOLMES: Well, could there with an end in sight? Israel is saying that it's getting closer to meeting its goal in Gaza. That goal being to stop rocket attacks into southern Israel, but the military operation is going to continue for now. That's the word we are getting this morning from Israel's prime minister.

Israel says its aircrafts attack at least 60 targets overnight. Witnesses say Hamas militants are clashing with Israeli troops just outside of Gaza City.

NGUYEN: And we want you to take a look at these leaflets urging Palestinians living in southern Gaza to get out. After issuing that warning yesterday, Israeli jets pounded the area.

Palestinian medical sources say more than 800 Palestinians have been killed since the Israeli assault on Gaza started late last month. Thirteen Israelis have died.

Here's the focus of the conflict right now. Those tunnels from Egypt into southern Gaza -- Israel says it has destroyed hundreds of them over the past two weeks. And even though diplomatic efforts to end the conflict are still going on, Israeli leaders say that they are ready to keep up and even intensify their attacks.

(BEGIN VIDEO CLIP)

ISAAC HERZOG, ISRAELI SECURITY CABINET MEMBER: On the one hand, if we will enlarge and increase operation, and going to the third phase as we are preparing to do, it will take much longer. If there will be, of course, a diplomatic arrangement that will be satisfactory, robust enough with enough securities and guarantees, of course, that -- we are looking into that and reviewing it seriously. But our enemies should understand, and they should not misread us, we are prepared to go as far as possible to protect our citizens. (END VIDEO CLIP)

NGUYEN: From the Hamas' side of the conflict, talk of reconciliation is mixed with defiant rhetoric. An exiled leader of the group says Hamas wants an end to the conflict as long as Israel stops what he calls "aggression" and opens all Gaza border crossings. But this leader also says Hamas is standing strong despite the attacks.

(BEGIN VIDEO CLIP)

KHALED MASHAAL, EXILED HAMAS LEADER (through translator): Did they manage to stop the rockets? Now, they are only talking about how they can stop the rockets. They said they don't want the resistance in Gaza. But I assure you, the resistance is doing good.

(END VIDEO CLIP)

HOLMES: Well, there continues to be a lot of movement on that developing story. We'll continue our coverage of the Middle East with a live report from the ground. That's coming up after the break.

NGUYEN: Also, we're going to check on the weather today. Reynolds Wolf has been watching that for us.

Good morning.

REYNOLDS WOLF, CNN METEOROLOGIST: Hey, guys. Take a look at some of the snowfall totals that we've had just over the last 12 to 24 hours. Kenosha, Wisconsin, check this out, over a foot of snowfall. Chicago, O'Hare, you have 12.5. So, if you were trying to get a flight out of there yesterday, you had good times. In Litchfield, Michigan, let's see, that's over 10 and right at 10 for Cleveland and Ohio.

You know, just seeing these numbers on the board, that's kind of interesting. But you want to see something just amazing, take a look at some of these videos. We get some video for you of some whiteout conditions across portions of the Midwest. That was pretty much the main exercise a lot of folks had yesterday, just doing a lot shoveling. And today, they're going to continue to dig out across the Great Lakes.

The wintry mess is still moving into portions of the Northeast, and in fact, a great deal of New England is still going to be under a winter storm warning through noon today, and then better weather will be ahead.

And also coming up, we're going to talk about the other side of the spectrum. I'm not talking about the winter weather, but dry and breezy conditions in parts of the extreme Southwest. We're talking, the L.A. Basin and those areas, you have the danger of wildfires. That's coming up -- that and a lot more on CNN. See you in a few.

(COMMERCIAL BREAK) HOLMES: Well, it's the boldest Ponzi scheme in U.S. history. And tonight, CNN is investigating just how Bernard Madoff made off with all that money, how he fooled so many folks. Don't miss this. "Madoff: Secrets of a Scandal" -- a CNN and "Fortune" magazine special investigation. That will be Sunday night at 8:00 o'clock Eastern.

(COMMERCIAL BREAK)

NGUYEN: More than two weeks into the conflict, and an Israeli convoy is expected back in Cairo tomorrow to talk about a possible cease-fire. So, what's happening right now where the crisis is playing out? Well, let's take you live to our Paula Hancocks, who is at the Israel-Gaza border.

Paula, what about those cease-fire talks? What are you hearing?

PAULA HANCOCKS, CNN INTERNATIONAL CORRESPONDENT: Well, at this point, we're not hearing an awful whole lot, because there is a cabinet meeting this morning here in Israel. So, that delayed things somewhat.

And, at the end of that cabinet meeting, the prime minister, Ehud Olmert, said that they are closer to achieving the goal of this entire operation, i.e., stopping the rocket attacks into Israel. But he also said that more patience is needed. So, indicating that it is not over yet. And that's certainly what we've been hearing from here.

There was a 3 1/2 hour lull about 2 1/2 hours into that lull, the explosions started once again. And in the past half-hour, we heard a lot of explosions in the Gaza City area. And we can see a thick white smoke covering much of northern Gaza City, that we can hear from here, that we can see from here. And certainly, it shows that this is an on going situation.

Now, at this point, we know that there have been at least five rockets that have been fired into Israel, and one just into Sderot, just behind our live shot position. And certainly, there was extensive damage to a house there, but at this point, we understand, no injuries.

NGUYEN: Paula, what's being done to get the Palestinian people caught in the middle of this out of harm's way? I understand, Israel dropped leaflets yesterday, saying the fighting could escalate. Could you make sure that the people are out of the harm's way and evacuate -- I think we lost Paula. And we are not able to hear her at this moment.

All right. We'll check in Paula and try to get an answer of that question within the next coming hours.

HOLMES: Well, meanwhile, President Bush is keeping an eye on the situation happening in the Middle East right now. He's talking to several world leaders about the conflict. The White House is saying that the president spoke with Turkey's president yesterday, thanking him for supporting the cease-fire efforts by Egypt and France. Also, the president talked to leaders in the Czech Republic as well as Bangladesh.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: So, we all call -- we call upon the Iranian president to open the door to jihad.

(END VIDEO CLIP)

HOLMES: This is in San Francisco. Demonstrations are happening out there. These are pro-Palestinian demonstrations we're seeing. The protesters there say they want Israel to end the assault on Gaza. Riot police were there. However, the demonstration was peaceful. And later this hour, we are taking you live to London where a pro-Israeli demonstration is planned. In the next hour, we also go live to Berlin.

NGUYEN: Well, gathering evidence in a little girl's death. It's a heartbreaking story.

HOLMES: It's just -- this story here has been going on for quite sometime. There are some answers now about little Caylee Anthony's death. But another answer people are looking for is, just when exactly did she die? Well, there are some answers there, but still, not the whole picture. Stay with us.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN: Trusted by more Americans than any other news channel. Now: Back to CNN SUNDAY MORNING.

HOLMES: We want to take you to Oakland now. We've got another set of eyes going to be on the investigation into that fatal police shooting of a young black man on New Year's Eve.

NGUYEN: Yes. The attorney general's office is sending in an independent observer to work with the district attorneys there.

We're going to show some video shows and it might be disturbing. It supposedly shows a Bay Area transit officer shooting 22-year-old Oscar Grant while he lay on the ground unarmed. The shooting sparked has outrage and riots across Oakland. The district attorney's office, BART police, and Oakland police are separately investigating the shooting. The officer involved in the shooting resigned last week.

Well, police in Albany, New York, say they arrested a man who opened fire at state troopers on Interstate 90 after a traffic stop. Officers say the man was riding inside a taxicab and began shooting into traffic yesterday. That man was taken to the hospital with gunshot wounds. It's still not clear yet if state troopers shot him or if he shot himself. No officers were injured.

HOLMES: The forensic experts have narrowed down the month Caylee Anthony was killed, but they still can't pinpoint exactly what day she was killed. And that could actually open up a window of opportunity for the defense. Reporter Jessica D'Onofrio from CNN affiliate, WKMG, has a story for us from Orlando, Florida. (BEGIN VIDEOTAPE, WKMG)

DR. JASON BYRD, FORENSIC ENTOMOLOGIST (on the phone): Yes. This case is definitely would come down to a battle of the experts, with the entomology and botany evidence.

JESSICA D'ONOFRIO, WKMG REPORTER (voice-over): Reports are now back from forensic botanists and entomologists showing that Caylee Anthony died during the month of June, but they can't pinpoint an exact day of death.

BYRD: Within six months, you could usually date back and predict plus or minus a month when some terminal event had to have happened.

D'ONOFRIO: And that degree of uncertainty could give Casey Anthony's defense a point to argue, according to Dr. Jason Byrd, a forensic entomologist who teaches at the University of Florida. That's because investigators believe Casey Anthony dumped her daughter's body in the middle of June.

BYRD: You could easily have an argument that would take you closer to the end of June and someone could easily argue something closer to July.

D'ONOFRIO: Investigators brought in forensic botanists and entomologists to analyze the plant life and insects' growth in the wooded area near the Anthony home where the child's body was dumped. Sources tell Local 6, those scientists examined weeds that were growing through part of the skeletal remains, and insect evidence that was recovered from the scene.

And regardless of any potential defense arguments, Dr. Byrd says the timeframe of death information is helpful to the prosecution, because either way, it shows the child was dead prior to the date she was reported missing.

BYRD: It certainly answers the question if that timeframe dates back to June, it answers the question whether, you know, the remains have been dumped after July 15th, which is when the child was actually reported missing.

(END VIDEOTAPE)

HOLMES: Again, that was Jessica D'Onofrio reporting.

And another twist to this case, police say the man who found Caylee's body in the wooded area near her grandparents' home had previously been arrested on kidnapping charges back in the 1990s.

NGUYEN: Israel is calling up more reservists, preparing for the possibility of expanding its offensive into Gaza. Senior international correspondent, Nic Robertson, reports now from the Israeli border with Gaza.

(BEGIN VIDEOTAPE) NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT (voice-over): Outside an Israeli army base, an emotional goodbye. "I'm worried he may be sent to Gaza," Mia tells me. "I want peace. I don't want suffering on either side."

Her husband, a reservist, says goodbye to his 6-week-old daughter. He is not alone. Thousands of reservists are reporting for duty, ready should Israel escalate the war in Gaza.

YEROHAM LOFSKY, ARMY RESERVIST: I think of the things that I need to do, I think of the necessary things I need to take with me.

ROBERTSON: Yeroham Lofsky, a telecom salesman tells me he was preparing to go to India when he got the call.

LOFSKY: I have 8 1/2-years-old daughter. Surprised, she asked questions, "Do you go into Gaza? When do you go into Gaza?"

ROBERTSON: The army selected Lofsky to talk to us. He tells me what we hear from many soldiers. They must fight to stop Hamas firing of rockets into Israel. I asked about the high Palestinian civilian casualties.

LOFSKY: We practice for this, and we know how to try to avoid the civilian casualties. It costs us, many times, injuries on our side, and I -- we do the best we can to be as much as human as we can.

ROBERTSON: In Gaza, where Israel and Egypt prevent us going to report independently, the perception emerging among civilians is the opposite, increasingly, they feel they are the victims. "They were all family members," she says, talking about the dead she has just seen. "Little kids, children. I didn't see anyone with weapons. It's just families being hit."

Hamas leaders are calling the civilian deaths "genocide," and give the impression they are not worried Israel could escalate attacks.

KHALED MESHAAL, HAMAS LEADER (through translator): They failed tremendously. They didn't accomplish anything. They say they don't want resistance in Gaza, but I assure you, the resistance is good.

ROBERTSON: Along the border with Egypt, Israel gave the strongest warning yet it was ready to widen the fight, dropping leaflets, warning civilians to move away, as Israel may ratchet up the fight with Hamas, and the strike will be, quote, "exceptionally painful."

(on camera): If Israel does go for a big military push, many tens of thousands of reservists put on stand by could find themselves in the fight in Gaza, maintaining popular support that home could be critical for the government.

(voice-over): Which may explain why we were allowed to film troops preparing for war, but not on the battlefield.

Nic Robertson, CNN, on the Israel-Gaza border.

(END VIDEOTAPE)

ANNOUNCER: You're watching CNN: Your severe weather headquarters.

HOLMES: And we do have some severe weather to talk about. We'll start in Connecticut where there's a lot of snow. You know, snow could actually be good for business, if you own a snowplow company, at least. Private companies out there say business is booming for them after a recent ice storm and all the snow that's been dumped on the area. Clean up crews are raking up some cash because they've pretty much been working non-stop.

Also to Ohio, more stories of slush, snow and ice. Cleveland got slammed with the nearly two feet of snow, forcing officials to ground planes and issues numerous warnings out there for the drivers along those icy roads. There were still a few close calls out there as you can imagine.

CNN affiliate WEWS in Cleveland with more for us.

(BEGIN VIDEOTAPE, WEWS)

UNIDENTIFIED REPORTER: As the snow piled up, so did the accidents. On I-71, the driver of this car lost control on the snow- covered highway, but slick conditions didn't stop some from venturing out.

UNIDENTIFIED FEMALE: I had to put the four-wheel drive on, and it was slick, but I just went really slow.

UNIDENTIFIED REPORTER: Not even a major winter storm kept dedicated opera fans from inching their way to a Westlake theater, and the Metropolitan Opera's live broadcast from New York.

UNIDENTIFIED FEMALE: To see the opera.

UNIDENTIFIED MALE: We had to come and see the opera.

UNIDENTIFIED REPORTER: Meanwhile, at Hopkins Airport, a course of plows moved like a symphony, fighting to keep runways open. Even so, scores of flights were canceled, forcing many passengers to spend the day waiting.

UNIDENTIFIED FEMALE: So, we've had about a three-hour wait so far, and hope to get on the road again, in a plane that is, about 4:45.

UNIDENTIFIED REPORTER: By mid-afternoon, up to nine inches fell on West Side Suburbs.

UNIDENTIFIED MALE: We have been doing this since like 11:00. It quite has been (ph), I'm doing -- I am starting a little bit now.

UNIDENTIFIED REPORTER: An uphill fight for plow drivers, too. Main roadways were cleared first. But continuing snow made it impossible to clear many roads by the end of the day, conditions that didn't stop some determined shoppers at Crocker Park.

UNIDENTIFIED FEMALE: No, I love the snow. It's my favorite.

UNIDENTIFIED FEMALE: Stay away from big trucks.

(END VIDEOTAPE)

HOLMES: In Chicago, this is just what happens in the wintertime in Chicago, doesn't it, Reynolds?

WOLF: Oh, yes. It does.

HOLMES: Well, we got 10 inches of snow there, force officials at O'Hare Airport to cancel about 100 flights. Two hundred snow plows are out, working around the clock. Officials are reporting, at least, also, one death caused by those slippery roads. So, you know, sometimes, it's just a headache, but it can be dangerous and deadly stuff out there.

WOLF: Absolutely, man.

HOLMES: So, who's on the danger zone -- or in the danger zone right now? Still some dangerous weather out there?

WOLF: There is some. And most of this is going to be limited to the Northeast, but this storm system that brought that snow to Chicago is not going to move its way up. But -- I mean, there are people in the suburbs, suburbs in Chicago, that have over a foot of snowfall, on (INAUDIBLE). I mean, do you feel bad enough to actually fly in and help them shovel it? I mean ...

HOLMES: You know, well, the airports probably have some issues, I couldn't fly there anyway. They're probably shutdown.

WOLF: Absolutely.

HOLMES: That's right. I do look into it this morning.

WOLF: I know you did.

HOLMES: Yes.

WOLF: And I know your heart is there. Even if you're not, your heart is definitely there and to the Chicago area.

I will say this though -- we're going to be seeing the improving conditions across the Northeast and bad conditions in parts of the Southwest. We'll explain that in a few moments. So, snow (ph) for the time being.

Let's walk around over and show what's happening out there. We do have the snow that's coming down in places like Boston as we speak. It has been tight and heavy, but if you look further back towards further Schenectady and a few areas, you're going to notice things are beginning to dry out. A lot of dry air is coming in from the west.

As it comes through, you're going to have a little bit of sunshine today. Perhaps a few scattered clouds here and there in places like Rutland, but right now, it's all snow in Schenectady. You have a combination of rain and sleet.

A little further south of Boston into Providence, what we are going to be seeing is that potential of anywhere for four to seven inches of snowfall, just in the noon today. But then into the late afternoon hours and overnight, clouds will move out but then that cold air is going to remain locked in place.

OK. We're going to leave parts of the Northeast, we're going to got to the Southwest, mainly, southern California, where we have some major issues. And just by stepping outside, you're not going to notice a big difference. But however, if you happen to get up in these hills, the winds are going to be strong.

We got the Santa Ana winds that are going to be kicking in there about 70 miles per hour. And as these winds move through these mountain passes, they really tend to accelerate. They also tend to generate some heat. So, you're going to have dry, breezy conditions. Terrible conditions for firefighters. So, we didn't have any widespread out there at all, none to report. But that could certainly change as you make your way through the afternoon.

Take a look at the high temperatures in L.A., 80 degrees, the expected high; Kansas City, 46; 18 in Minneapolis; 80 in Miami, and 32 in New York.

That is a look at your forecast. We're going to wrap it up. Now, let's send it over to T.J.

T.J., what's up?

HOLMES: All right. Kind sir, we appreciate you. We'll be checking in with you again shortly. Thanks for that.

WOLF: You bet.

NGUYEN: Well, an Israeli plan to strike Iran's nuclear program is rejected by the U.S. That's according to a report out today. It also details new efforts by the U.S. to deal with the nuclear threat from Iran.

(COMMERCIAL BREAK)

NGUYEN: Hello, and good morning, everybody on this Sunday. I'm Betty Nguyen.

HOLMES: Good morning to you all. I'm T.J. Holmes.

NGUYEN: Well, working on the troubled economy. President-elect Barack Obama's economic team meets today with some top democratic senators. Some law makers want his economic stimulus package to include more spending on the country's structure like roads, bridges, schools and hospitals and less on tax cuts.

An Israeli envoy expected back in Cairo tomorrow to talk about a possible cease-fire in the Mideast conflict. Israeli forces are moving in on Gaza City right now and Israel says it is getting closer to its goal, stopping rocket attacks on southern Israel.

The death toll continues to rise after a powerful earthquake. Look at this camera as it shakes in that quake. This struck Costa Rica two days ago. Now government officials have confirmed that 34 people died in that, and more than 60 people are still missing. And rescue workers are continuing to search for more victims. 200 tourists were found holed up in hotels, and more than 1,000 people were stranded in their homes.

HOLMES: While Israel battles Hamas militants in Gaza, a report out today describes Israeli plans for a potential strike inside Iran. And this comes from a "New York Times" article, and the reporter there David Sanger says Israel asked the U.S. for specialized bunker busting bombs for an attack on Iran's main nuclear complex. The article says President Bush rejected Israel's request. The report is from Sanger's book "The Inheritance, the world Obama confronts and the challenger to American Power." He talked about the article in CNN NEWSROOM last night with Don Lemon.

(BEGIN VIDEOTAPE)

DON LEMON, CNN ANCHOR: Most of the sources that you quote, if not all of them, are unnamed sources. How do you back this information up?

DAVID SANGER, "NEW YORK TIMES": Well, I wish in a perfect world that we would have everybody on the record on issues like this. But that is not what happens in intelligence reporting. This was an extraordinarily sensitive set of interchanges between Israel and the United States, and President Bush persuaded the Israelis not to go ahead in part by describing to them a new or expanded covert operations that the United States is trying to accomplish the same goal. And it's simply not a subject given its sensitive and fairly classified nature that senior officials are going to discuss on the record.

LEMON: And you reached out to the Bush administration, I am sure.

SANGER: We did.

LEMON: What did the Bush administration say?

SANGER: Well, as you will see in the story, the Bush administration and the intelligence community asked us to omit some details that would affect operational events. We agreed to do that. And I suspect that the Bush administration probably isn't going to comment very much on the details of the story given the nature of this kind of intelligence operation and the sensitivity of the relationship with Israel.

(END VIDEOTAPE) HOLMES: Well, the "New York Times" article says the U.S. is conducting a new covert operation aimed at sabotaging Iran's nuclear ambition. The paper says the Bush administration shared some of the details to persuade Israel to back its plans.

CNN's Pentagon correspondent Barbara Starr weighed in on past efforts to undermined Iran's nuclear program.

(BEGIN AUDIO CLIP)

VOICE OF BARBARA STARR, CNN PENTAGON CORRESPONDENT: No that the U.S. is trying to conduct covert industrial espionage if you will against Iran's nuclear program for many years. Going to the suppliers, going other places, trying to make sure that things get messed up, if you will. That parts may not be what they should be. That certain processes may not work right. Anything that they can do to jam the work.

(END AUDIO CLIP)

HOLMES: Of course, Iran has said its nuclear program is for energy purposes only.

NGUYEN: Well, the Mideast crisis and support for Israel's position, that's the focus of a rally this morning in London. So let's take you there now.

Our Atika Shubert joins us now. Atika, how big was the rally?

ATIKA SHUBERT, CNN CORRESPONDENT: Well, it's pretty big. Thousands of people filled the Trafalgar Square. The rally has actually just ended. And behind me mostly you see police. There was a lot of security here, especially after pro-Palestinian protests turned violent on Saturday, and London police did not want to take any chances. So they had dozens of police out here, including mounted police on horses.

But for the most part, the rally was peaceful. Thousands of people here and mostly from the Jewish community but also some from the Christian community saying that they wanted to show their support for Israel. And it wasn't the only protests here. There are also another protests in other cities in England. And also across Europe, Berlin and Paris, also had their own protests. There were a few minor scuffles today particularly when pro-Palestinian protesters showed up.

What's interesting to note is that the Jewish community here in England is divided over this issues. There is actually a smaller protest that's still going on behind me of Jewish supporters of Palestinian civilians in Gaza saying they want an immediate cease-fire and they want it to end and they do not support Israel's action.

But again, it was a very large rally for those in support of Israel today. Organizers say they are happy with the turnout and that they will continue to come up with more rallies like this. Betty.

NGUYEN: All right. CNN's Atika Shubert joining us live from London. Thank you, Atika.

Well, sacrificing one to protect the rest. Why one university canceled its football program.

(COMMERCIAL BREAK)

NGUYEN: One of the biggest threats to America's future could be our ever-growing deficit. Well, today at 3:00 the highly regarded and acclaimed documentary "IOU.S.A." Plus, we're going to break it all done with some of America's top economic minds today, at 3:00 p.m. Eastern.

(COMMERCIAL BREAK)

NGUYEN: 15 days into the Israeli offensive in Gaza and the wife of Syria's president is speaking out about the plight of Palestinians there. In an exclusive interview with CNN, the Syrian First Lady expressed concern about the long term conditions in Gaza.

(BEGIN VIDEO CLIP)

AMSA AL-ASSAD, FIRST LADY OF SYRIA: People need to understand that this is not something that has just existed for two weeks. It's not just about the conflict and the war that's happening on the ground as devastating and as horrific that is. The embargo has been on Gaza for nearly three years.

Palestinians have been living in a place that has been described as a place worse than hell, to be honest. That can't go on. And if anything they are living, they have no rights on their own land. Where is human dignity? Where are the rights of the human rights that we all talk about, where are they? And the bombardment we see on our TV is nothing compared to the bombardment that is happening inside Gaza on a daily basis. It's not even a daily basis, but a 24 hour basis. And it's been going on for two weeks. In terms of the military campaign, it's been going on for at least three years in terms of the illegal embargo that has been forced upon the people of Gaza.

(END VIDEO CLIP)

NGUYEN: The first ladies from several middle Eastern countries are making emotional pleas to help the women and children in Gaza.

HOLMES: Well, he's been the worst critic of Israel's policy, former President Jimmy Carter, we're talking about here. He is now though admitting that Israel needed to act to stop Hamas attacks. He told our Jim Clancy that the response was not proportionate. He did say involvement by the international community is a step in the right direction.

(BEGIN VIDEO CLIP)

PRES. JIMMY CARTER, FMR. U.S. PRESIDENT: The international community needs to assure that when another cease-fire is negotiated, under their pressure, then it will be publicized and both sides, Israelis and the Palestinians will have to certify that they will abide by it. And there needs to be a monitoring of the situation in Gaza. That is an adequate supply of foods and other necessities going into the starving people.

Secondly, no rockets coming out of Gaza and third no permission or entry way for additional weaponry to come into the Palestinians who are living in Gaza.

(END VIDEO CLIP)

HOLMES: Carter says Israel should have targeted Hamas tunnels between Gaza and Egypt instead of above ground targets, in the city however.

Well coming up on "Late Edition," a big day for Wolf Blitzer. He's got two exclusives for you. He sits down with outgoing Vice- President Dick Cheney, also the democratic House Speaker, Nancy Pelosi, you can join Wolf Blitzer for "Late Edition" today at 11:00 a.m. Eastern.

NGUYEN: Capitol Hill, it is home sweet home to one congressman. He turned his office into a living space, and maybe it's turning around the minds of his colleagues. CNN's Jim Acosta has the story.

(BEGIN VIDEOTAPE)

REP. JASON CHAFFETZ (R), UTAH: Hey, how are you?

Jason Chaffetz, nice to see you.

JIM ACOSTA, CNN CORRESPONDENT (voice-over): When the staff where House republican Jason Chaffetz says the congressman is in, -- UNIDENTIFIED FEMALE: Congressman Chaffetz' office -

ACOSTA: They really mean it.

CHAFFETZ: And then I - pardon me.

ACOSTA: Well, I better get out of the way.

CHAFFETZ: It's a little tight.

ACOSTA: The Lincoln bedroom, it's not. It's the closet inside Chaffetz' House office on Capitol Hill.

UNIDENTIFIED MALE: Help you out with the other corner over here.

CHAFFETZ: Yes, that would be great.

ACOSTA: The gentleman from Utah showed us he's bunking down every night.

CHAFFETZ: You work late into the night, I was up until 12:45.

ACOSTA: Doing the people's business?

CHAFFETZ: Working hard, talking to constituents, e-mailing, writing letters.

ACOSTA: The office comes with a half bathroom and what Chaffetz calls his breakfast nook.

CHAFFETZ: Fig Newtons for breakfast. These are usually for lunch and this is kind of the dinner snack right there.

ACOSTA: By not renting an apartment in D.C., Chaffetz says there's more money to send home.

CHAFFETZ: I will save about $1,500 a month for our family by doing this. You know, I got a wife. I got three kids.

ACOSTA: There's just one problem, things that go bump in the night.

CHAFFETZ: The biggest challenge is what goes on in the hallway at night. Because there's this cleaning machine that comes down and it's got that obnoxious you know beep, beep, beep. I will call you definitely, I will call you back.

ACOSTA: Although he is an unknown freshman in the House, word of his sleeping arrangements is spreading.

REP. JUDY BIGGERT (R), ILLINOIS: I'm really glad that we got a neighbor here to make sure that somebody is here to make sure that the neighborhood is safe at night when we're not here. So, I mean -

ACOSTA: Sort of a neighborhood watch, is that it?

BIGGERT: That's right.

ACOSTA: Chaffetz next door neighbor doesn't mind. It's kind of not a bad image to project I suppose.

BIGGERT: Fiscal conservative, you're right.

ACOSTA: Congressman Chaffetz says it's about putting the nation's fiscal house in order.

UNIDENTIFIED FEMALE: The House will be in order.

CHAFFETZ: We are now $10 trillion dollars in debt, 10 trillion. Those are expenses that have to be paid at some point.

ACOSTA: And if he can tighten his belt in these tough economic times, he say, so can Congress.

CHAFFETZ: It's only a two-year gig. Yes, there is no job security here.

ACOSTA: A job he says he is willing to put in the long hours to keep.

ACOSTA (on-camera): In case you're wondering the congressman showers at the house gym. With amenities like those, it's no surprise Chaffetz says he will be staying for a while. John and Kiran.

(END VIDEOTAPE)

NGUYEN: I'm glad he cleared that up and I was wondering -

HOLMES: About the shower?

NGUYEN: Yes, and folks headed to D.C., well hopefully they will not be sleeping in closets as they come to witness the inauguration.

HOLMES: Yes, this is a live look this morning. Rehearsals are going on, you can't see much with the inauguration rehearsals are happening today. You can look here at the bleachers, on the side of the Capitol here. They are doing the whole blow, the whole kit, bang and caboodle(ph) today. They are doing a parade and actually have stand ins, and look-alikes for Obama, also the kids even.

NGUYEN: Yes, that are the same height too to make sure the cameras are all you know good to go on the day of the inauguration.

HOLMES: And yes, even the same skin tone.

NGUYEN: Oh really?

HOLMES: They have gone down to the very last detail because of camera angles, lighting and shading. They want to make sure is perfect for inauguration there.

We'll be taking a look in, we just see a little activity throughout the day. But this morning, the rehearsals have gotten under way. I think 3,000 people are participating in the rehearsals today to make sure everything goes well on inauguration day which is what, we got nine days -

NGUYEN: Yes. Just a little more to go. And it will be here. a lot of activity there today but not on the football field of one university.

HOLMES: They had to sacrifice one sport, so they could save the rest. We'll explain why football is out.

(COMMERCIAL BREAK)

HOLMES: Well, Governor Bobby Jindal getting some stuff done in Louisiana. He rallied state legislatures there to sign off on a proposal to shrink, state spending by $341 million. That plan will help wipe out the mid-year budget deficit created by the plunge in gas and oil prices. But to make it work, more than 1,000 vacant government jobs won't be filled. Again, 1,000 jobs are not going to be filled. Several new health care programs will be created either some government employee will also have to be laid off.

NGUYEN: Talk about a tough call. The president of Western Washington University has sacked a popular sports program to save 15 others. As CNN's Bill Tucker reports, football players at the division two school in Bellingham learned about it just a few days ago.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT: The western Washington Vikings will conquer no more on the football field. After going six and five winning the Dixie Rotary Bowl on December 6th, their season and the program is over. The players were told Thursday.

They took it well and they handled it well. I think they are very disappointed, and very emotional. I think they're unsure of what the future holds for them.

TUCKER: The Vikings played the game since 1903. The costs to field the team on 2009 were too high. In the university like the rest of the country is tightening its belt.

EILEEN COUGHLIN, WWU V.P. FOR STUDENT AFFAIRS: This was a very tough call for us. The reality is we had a combination of fiscal issues that came together and really indicated for us to keep quality overall. We needed to make a tough decision.

TUCKER: Western Washington's decision is contrary to national trends. Since 2000, 27 schools have added football programs. While seven - well, actually now eight, have dropped the game. The website let them play as part of an effort to restore the football program at California Santa Clara University which dropped its program in 1993. Rick Medeiros is part of that effort and he explains why football is important to a school.

RICK MEDEIROS, LET THEM PLAY FOUNDATION: They look at it as being something important for the life of the school. It's who they are, part of their tradition. They see all of these other benefits including the alumni night giving back to the school and bringing the alumni back to the school.

TUCKER: Schools which add football also reported increase in male enrollment at a time of decreasing male attendance nationally. But money was the bottom line at Western Washington. It wasn't academics.

During the same time that Oklahoma was graduating 46 percent of its football players. In Florida, 68 percent, Western Washington was graduating 83 percent of its student athletes. Bill Tucker, CNN, New York.

(END VIDEOTAPE)

NGUYEN: There's more. 96 young men played for Western Washington. Those on scholarships will continue to receive them. Those who want to transfer, they can do so without losing any eligibility. That's got to be tough, though.

HOLMES: You hate to see that. You know, kids grow up, they dream of playing college football. You get there, finally, the program is gone. Hopefully the guys can play somewhere else.

NGUYEN: It's just the sign of the tough times out there everyone seems to be experiencing obviously.

HOLMES: All right. We will turn back now to - this is a story that will make you feel good. These guys are going from suburban Atlanta to the nation's capital.

The band. Getting ready to high-step it in a presidential parade.

(COMMERCIAL BREAK)

(MUSIC PLAYING)

NGUYEN: We always went apple bottom jeans. Boots with the fur -

HOLMES: Go, Betty.

(LAUGHTER)

NGUYEN: Why are we playing this song?

HOLMES: Yes, Betty, why are we?

NGUYEN: One year ago this week, that was the number one song on Billboard's top 100. That is "Low Rider" and song is?

HOLMES: "Low."

NGUYEN: Guess who also got low?

HOLMES: Love this song, Betty.

NGUYEN: Our own Wolf Blitzer. Can we roll that beautiful footage. Check him out on the "Ellen DeGeneres Show." He showed us a little bit of the moves! Hold on, hold on. He is going to get low. There he goes!

HOLMES: I actually have this playing on a nonstop lube in my living room.

NGUYEN: It's great entertainment.

HOLMES: It is good stuff. That is Wolf of course with Ellen DeGeneres. They taped the show. I think it's going to air on Monday if you want to see the whole dance but Wolfy got into it. Well he is feeling it there. Then the music stopped.

NGUYEN: You got to love it.

HOLMES: Let's go to when he is not dancing, he is covering Washington, D.C. We can show you a live picture of the capital right now. There it is. They are getting ready for what will happen in about nine days from now. That is the inauguration of President-elect Barack Obama. What is happening today is practice. That's a big event. You can't show up and think it's all going to go well. You have to practice for this thing. About 3,000 folks started about two hours ago. They started about 6:00 which looking at the bleachers, that is where Obama is going to take the oath and also, you know, Betty, is a lot to this practice. Including the stand-ins.

NGUYEN: Which is really interesting because in order to make sure that the camera angles are right and the coloring is adjusted, so that everything looks like it's supposed to, military folks have been picked to stand in. They are the same height, the same build, the same color as Obama, as Biden, as well as their families. Even Obama's children, Malia and Sasha have stand-ins as well.

HOLMES: So they're going to make sure that everything is perfect. They are going to practice the parade today as well. So the whole thing. They're doing a full dress rehearsal today with everybody except pretty much Barack Obama.

NGUYEN: The real people.

HOLMES: But yes, we're a week away. And we are keeping our eye on what is happening there in Washington. Now among those who are going to be performing are going to get to go to Washington is the South Cobb High School Band. They're from Cobb County, Georgia. My home county here in George, actually that's just a suburb of Atlanta.

NGUYEN: Yes. It's such a great story. You know this band has been energized by a highly focused teacher who has been intent on take being his students to the top. Our Brooke Baldwin has the story on the band and a proud community.

(BEGIN VIDEOTAPE)

ZACH COGDILL, SOUTH COBB BAND DIRECTOR: So with that, we start our program. Here we go.

BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): Just a few years ago, the South Cobb High School Blue Eagle Marching Band was admittedly not too impressive. Only 30 members and, leadership, hard to find.

COGDILL: Five, six, seven halfway. One, two -

BALDWIN: Then came Zach Cogdill, a young man with a vision, a dream, and drive.

KAMERON CRUTCHER, SENIOR SOUTH COBB BAND MEMBER: We used to get bad reviews all the time but since Mr. Cogdill has been here, we've grown so much and the school is actually responding to us.

COGDILL: This was our second competition.

BALDWIN: Now, the band has more than 70 members and this year, they hit some high notes, winning trophies everywhere they went.

You know, we were proud to have these here, but, for me, these are memories about what our kids did.

BALDWIN: But Cogdill and his ensemble had some obstacles to overcome as well.

COGDILL: In some cases, I've had students that had to live with another band parent. I know that some of my students, they have their utilities cut off for weeks at a time. But at the end of the day, that student, that parent comes in here and they - we worked to afford them the same opportunity that they're going to have at any other school and they start to see help.

BALDWIN: The Georgia High School football season is over. The band season marches on. Next appearance, the nation's capital, Washington, D.C.

Their musical talents have them marching toward a prestigious performance, a historic 56th presidential inaugural parade.

COGDILL: There will not be yard lines on Pennsylvania Avenue.

DANA SHERER, SOUTH COBB SENIOR DRUM MAJOR: I swear, he's the only one that believes in us from the beginning and now he is here and I think we all owe it to him.

BALDWIN: But can they afford this rendezvous with history? The road trip and hotel stay won't be cheap. According to the school's principal, the cost, a thousand bucks per band member. Grand total, $70,000.

GRANT RIVERA, SOUTH COBB PRINCIPAL: The very next morning, a band could walk past me as she was on her way to first grade class, I grab her and I hugged her, aren't you excited? And she looked at me and her expression on her face didn't change one bit and said, "I'm not going." And I said, "Why?" She said, "I can't afford it."

UNIDENTIFIED MALE: They hit the lottery. They just hit the lottery.

BALDWIN: But thanks to a fund-raising effort by local media, she and her band-mate can now afford it. Donations quickly started flowing in from local businesses, other schools, even celebrities. Within days, the community raised $110,000, more than enough to participate in this presidential parade.

RIVERA: The story of our band is not just about these trips. The story of our band is when it's grown. And, now, the story of our band will be the way in which they get back.

BALDWIN (on camera): It seems to me that you're above and beyond teaching music. You are teaching life.

ZACH COGDILL, SOUTH COBB BAND DIRECTOR: Yes. We're teaching life every day.

BALDWIN (voice-over): By instilling hopes in his students whose lives, outside this band room, may have seemed hopeless. COGDILL: So proud.

BALDWIN: Brooke Baldwin, CNN, Atlanta.

(END VIDEOTAPE)

NGUYEN: From the CNN Center, this is CNN SUNDAY MORNING. Hello, everybody. It's January 11th, 8:00 p.m. here at the CNN headquarters in Atlanta, 7:00 a.m. in the heartland. Good morning. I'm Betty Nguyen.

HOLMES: And hello to you all. I'm T.J. Holmes. Glad you could be with us.

In this morning, the president-elect and his team prepare to take on lawmakers on Capitol Hill and he's not taking on Republican, he's taking on some fellow Democrats. We'll explain.

NGUYEN: And, the city is all a buzz. Yes, we're talking about Washington, D.C. Take a look. Preparations are under way as the inauguration rehearsals have already started. It's going to be taking place today. A lot of stand-ins there of the same height, the same build just to make sure those camera angles are right when they focus on Obama and Biden as the inauguration plays out when it comes to what -- eight days, nine days from now?

HOLMES: Eight, nine days away.

NGUYEN: Yes.

HOLMES: Well, the nation's damaged economy is on the agenda for Barack Obama's economic team today and pretty much every day for the next several days that we know of, at least in the near future. They are meeting with several top Senate Democrats who are not quite on board with the president-elect's stimulus plan. The president-elect wants a bill on his desk by the middle of next month, so that means negotiations need to go at a pretty good clip.

But some Democrats want a bill with more money for infrastructure like schools, hospitals, roads, bridges, things like that and not so much money for tax cuts. President-elect Obama, meanwhile, is on ABC today, talking with George Stephanopoulos. In that interview, Barack Obama has a message for the public: We're all going to have to make sacrifices and don't get your hopes too high.

(BEGIN VIDEO CLIP)

BARACK OBAMA, (D) PRESIDENT-ELECT: Not everything that we talked about during the campaign are we going to be able to do on the pace that we had hoped.

(END VIDEO CLIP)

HOLMES: He's got a lot on his plate right now. And, of course, he'll be inaugurated here in just eight or nine days or so. But he took a little family time last night. There he is. The incoming president took a little family trip, and where did he go? That's where he went. They visited one of Washington's most cherished shrines, the Lincoln Memorial. Again, nine days from now, Barack Obama will be sworn in, and he'll be using the Bible owned by President Lincoln.

NGUYEN: We all know this. You can't put on a show unless you practice. And that's what's going on right now in the nation's capital. Inauguration practice began more than an hour ago and our Kate Bolduan is there.

Kate, we've been watching this play out. So, who's taking part this morning? I know a lot of things are lined up.

KATE BOLDUAN, CNN CORRESPONDENT: There are a lot of things lined up. And you kind of set the stage to say, Betty, what do you do before a big show? You do a dress rehearsal and that's pretty much what's going on here. I don't know if you can hear from the loud speakers. It's all going on right behind me in front of the Capito. It's a full run-through for the official swearing in. We are now just a week out until the official swearing in of the president-elect and they're going through all of the motions, the pomp and circumstance: the songs, the national anthem, some of the military bands that will be playing, as well as the stand-up, the sit-down, who introduces whom, who stands where -- some of those things they are just trying to work out the kinks, because I'm sure you can understand they don't want anything to mess up this big show.

Now, D.C.'s mayor, Adrian Fenty, he spoke to CNN yesterday saying what an honor and a responsibility hosting such a huge event is. Listen here.

(BEGIN VIDEO CLIP)

MAYOR ADRIAN FENTY, WASHINGTON: It's going to be an exciting time for us. It's a lot of work, though. For -- one example, is we have normally 4,000 officers in D.C., we've got to hire another 4,000 from around the country just to support this particular event.

(END VIDEO CLIP)

BOLDUAN: Now, he kind of highlights some of the obstacles and challenges that come with putting on such a big show. The swearing in is clearly the focal point, but there's a lot of planning and a lot of security that goes in to this massive operation, which also comes with some restrictions that anyone that's coming here to the swearing in or to the National Mall to watch this, should be really aware of.

There are some dos and don'ts, per se, of coming to the inauguration. We're talking about prohibited items. They played out some of the obvious items, no firearms, fireworks, ammunition, mace or pepper spray. But also, there are some things you may not think of if you're coming to the mall, things like packages, backpacks, large duffel bags, as well as thermoses, coolers, strollers, baby carriers as well as umbrellas. Now, this is all if you're going to be in the swearing-in area, if you are going to be in this secured area. Now, this also, as we're talking about, there are huge operation, 240,000 ticketed people will be here to watch the swearing in, but that's not all, Betty. They are going to be the mayor, Adrian Fenty, said they are planning for up to 2 million, maybe 2.5 million people could be showing up for this massive event and that calls for 58 law enforcement agencies -- local, state and federal -- all coming together to try to keep this thing safe and keep it running smoothly, and running smoothly is part of all of this that's going on this morning.

NGUYEN: Yes, it is a huge endeavor, and they're already rehearsing this morning, for good reason, because they want to make sure everything is going to be just right for the big day. Thank you for that, Kate.

BOLDUAN: Absolutely.

NGUYEN: You know, others are rehearsing as well, among them -- soul singer Aretha Franklin.

(MUSIC)

NGUYEN: That voice. Well, you know, she is one of many. Cellist Yo-yo Ma will perform a new piece of music composed by John Williams and classical violinist Itzhak Perlman is also performing. The January 20th inaugural program begins at 10:00 a.m. Eastern on the west front of the Capitol.

So, are you going to the inauguration? Send us an iReport at iReport.com. We want to see the events through your eyes next week. Don't forget to send us your photos and videos at iReport.com.

HOLMES: Well, Caroline Kennedy, she had a bit of a job interview yesterday. She met with New York Governor David Paterson. The daughter of the late JFK wants to replace Senator Hillary Clinton in the Senate. But the governor there, Governor Paterson, he has the sole power to name Clinton's replacement. He says he won't actually do that until Clinton is confirmed as the next secretary of state.

Now, Caroline Kennedy might be the only one getting a lot of attention that you heard about. But there are a host of others who are also said to be interested in the appointment.

NGUYEN: Let's get to the crisis in the Middle East, because Israel says it is getting closer to its goal in Gaza, and that's stopping rocket attacks into southern Israel, but the military operation will continue. That's the word this morning from Israeli's prime minister. Israel says its aircrafts attacked at least 60 targets overnight. Witnesses say Hamas militants are clashing with Israeli troops just outside of Gaza City.

HOLMES: On the other side of the conflict, Israeli medical sources say two rockets launched from Gaza landed in southern Israel today. We haven't heard of any injuries in that attack. Palestinian medical sources say over 800 Palestinians have been killed since the Israeli assault on Gaza started late last month. Thirteen Israelis have died.

We are, of course, covering all the angles on this Mideast conflict. You see our Paula Hancocks there. She's live on the Israeli-Gaza border. Frederik Pleitgen is in Berlin for us, where a pro-Israel is happening.

We want to head first to the Middle East. Israeli troops are moving closer to Gaza City, more cease-fire talks are planned for tomorrow in Cairo. Our Paula Hancocks, again, on the Israel-Gaza border.

Firefights on the ground today. What are we seeing? And is there any sign -- I guess, we are hearing from Israeli officials that possibly, they are getting close to meeting their goals. Could that possibly mean they are just about done with, I guess, with that military operation of theirs?

HANCOCKS: But it certainly doesn't sound that way from where I'm standing. We're hearing continual explosions in the area of Gaza, Shechem. Of course, our sources on the ground say, there has been fighting just on the outskirts of Gaza City. And also, the rockets kept coming. Just five minutes ago, another two flying over our heads, bringing the number today to at least 19 rockets.

So, the Israeli prime minister, Ehud Olmert, saying that he believes they are close to their goal, but the goal is to stop the rockets, and, at that point, it hasn't happened. Now, certainly, the number of rockets has dropped significantly. At the beginning of the operation, there was something like 70 a day, and now we're down to 19. But the fact is, the rockets are still coming.

The militants have pulled into the more populated areas and, of course, this is where we understand that the Israeli troops, if stage three were to be approved and to go ahead, would have to move into. Israeli troops, if stage three were to be approved and to go ahead, would have to move into. And, of course, that could cause a lot more civilian deaths on the Palestinian side and also possibly soldier deaths on the Israeli side.

But, at this point, it does not appear as though there is any slow-down into the military activity. In fact, during that three-hour lull which we had once again today to allow humanitarian aid to be distributed, about a half an hour before that ended is when the explosions really started. You can hear fighter jets overhead. So, certainly, there is no indication on the ground that this is scaling down -- T.J.?

HOLMES: All right. Paula Hancocks, again, for us on the Israeli-Gaza border, thank you so much.

NGUYEN: A day after thousands protest against the Israeli offensive in Gaza, demonstrators are taking to the streets in Berlin today in support of Israel. Let's go live now to Berlin and CNN's Frederik Pleitgen.

It sounds like a -- there's quite a crowd behind you. FREDERIK PLEITGEN, CNN CORRESPONDENT: You're absolutely right, Betty. The police say that they expect about a thousand people to show up at this demonstration right here. Let me get out of your way you so you can see a little bit better. I'm not sure if it's quite a thousand yet, but people still are pouring into one of the main squares here in Berlin.

The message they say they are trying to send is that they think the international community must to do more to stop the terror of Hamas, as they put it in their logo that's hanging here behind me. They are saying they believe that Hamas and only Hamas is responsible for the bloodshed that is going on in that area right now. And they feel that the international community and, of course, being here in Germany, especially Germany must do more to stop Hamas from doing that in the future and put pressure on countries like Iran and Syria who they believe are supporting Hamas and in their effort.

Now, one of the interesting things that's been going on here as this buildup has been going on is that more and more people have been pouring into the square. One of the things that they are saying is that they believe that the international sort of sentiment has been very much against Israel in the past couple of weeks since this conflict has begun. They feel that Israel's positions have been misrepresented and somewhat underrepresented in the past couple of weeks as this conflict has progressed and they say by starting this demonstration here, they want to set the record straight. They want to get their point across of what they believe is responsible for this conflict, Betty.

NGUYEN: CNN's Frederik Pleitgen joining us from Berlin live today. Thank you, Fred.

And we do continue to get images from iReporters of Mideast demonstrations. Lawrence Langner sent us this picture from Paris. He says the demonstration quickly went from a moment of silence to this. Police reported about 180 arrests during protests in Paris yesterday.

HOLMES: Well, as we know, our economy is in a bit of trouble and in need of some work. You got a lot of people working on it, you got politicians, the president-elect -- who else could we call in for help?

NGUYEN: Well, we are calling in the "business doctor" as he is referred to around here sometimes. Our own Ali Velshi will answer some of the questions that you want to know about the recession and how to pull out of it.

(COMMERCIAL BREAK)

HOLMES: All right. We just got another dismal jobs report out on -- in December: 524,000 jobs lost for the month, 2.6 million for the year. We got Obama's stimulus plan that's being debated in Congress right now. A lot is going on up there in the business world.

You are worried about your money. Who do you turn to? Well, we turn to our hairless prophet, Ali Velshi. (BEGIN VIDEO CLIP)

HOLMES: What are we going to do with these jobs number now, 7.2 percent?

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Right.

HOLMES: I believe I heard you talking earlier just how bad that number was historically.

VELSHI: Yes.

HOLMES: Are we getting to a bottom yet? There were a few months back when the market was going down there was a ...

VELSHI: Yes.

HOLMES: ... there was some talk, is this it, is this it, is this it? Well, is this it? Have we bottomed out yet?

VELSHI: All right. So, we have three separate things that we want to track in this economy. One of them is jobs. One of them is the market, which tends to recover, by the way, six to eight months earlier than the other indicators. And the third one is the housing market.

So, the stock market will come back first. The jobs issue has to do with how much confidence you have, because if you don't have confidence and you're a business owner, you start laying people off. All of those people then are not contributors to the economy. They are recipients. So, it becomes a spiral.

We're in that spiral right now. We need to break that. Now, you probably saw a lot of layoffs in December because it was the end of the year and companies wanted to get it off their books. You may see something similar in January.

I think you see a bottom after that. You start to get back into the 400,000 a month and then 300,000 and then 200,000, and eventually, you start to see job losses flat and gaining jobs. But there's no way you can do that math and not see job losses for at least six more months.

HOLMES: How are we going to go about paying for this stimulus? Barack Obama acknowledged that, yes, we're going to be in some deficit again.

VELSHI: Yes.

HOLMES: He acknowledged this. But how does this work? I mean, Ali, help somebody who is looking at this from the outside.

VELSHI: Yes, OK.

HOLMES: That was 700 billion, we were already in debt, here we go with another stimulus, talking about several hundred more billion. VELSHI: Yes.

HOLMES: How are we going to pay for this over time?

VELSHI: All right. So, Barack Obama is talking about deficits that could be in, you know, $1 trillion or more for years. We're looking at a projected deficit for 2009, that is the government spending more money than it takes in from taxes of $1.2 trillion. You add up the deficits, you get the national debt. The national debt is $10.6 trillion, OK?

So, how do you eliminate a deficit? And what you do is if you stimulate the economy and you somehow create jobs or you give companies incentives to create jobs, those people become employed, they make money and they pay taxes. The government ends up getting more money as a result of that, and if you make money, you spend it. That gives businesses a profit. The government gets a piece of that through taxes, and that's how the government replenishes its coffers and ends up paying down first the deficit.

So, in other words, you have a year where the government takes in more money than it spends and then you start chipping away at the debt. We did have that in the Clinton era and it was supposed to last for 25 years. Clearly, it didn't.

But there is a way to do this. The one thing that most economists agree upon is that when you're in a recession, you have to spend to stimulate the economy. So, deficits are acceptable during recessions. Is there a plan to get out of it later, though, T.J.?

HOLMES: All right. And finally here, I need -- I'm used to you having all kinds of ideas swirling around in your head and then you talk about them. But I'm not used to you putting them down on paper. So, you have decided to do this now with a book ...

VELSHI: Yes.

HOLMES: ... with a grammatically-incorrect title.

VELSHI: Correct.

HOLMES: Talk about this thing. What is the purpose of "Gimme My Money Back"?

VELSHI: First of all, of all the interviews I've done about the book, you're first the one who's really hit the nail on the head. I'm a talker; I'm not a writer as much. But we got a lot of phone calls and e-mails, as did you, because, you know, you -- on your weekend shows, focus a lot on the issues affecting people. So, you would take responses from people who are very confused about what happened to their money.

Even if you followed all the expert advice in 2008, you probably lost 30, 40, maybe more of a percentage of your portfolio. So, people had that sense of someone took my money, gimme me money back. And that's why I called the book "Gimme My Money Back." It's a short primer, a little bit of history about how we got into the mess we're in, and then, six or seven chapters of sit-down, read this now, spend four hours reading it, spend half an hour in front of your computer, reallocate your 401(k) or your IRA, and you're up to the races.

You don't have to know anything about money. You don't have to know anything about markets. This book was written for our viewers who are looking at this market and saying, "What happened?"

(END VIDEO CLIP)

HOLMES: And you can check out Ali Velshi and Christine Romans' show, "Your Money: A Special Emergency Jobs Edition." They break down the business news of the week and show you how it impacts your bottom line. That's today at 2:00 o'clock Eastern.

NGUYEN: Right now, we want you to check this out. Live pictures are coming to us from Gaza. You see that black smoke billowing into the air. We learned that Israeli soldiers moved further into Gaza City this morning with heavy shelling. Perhaps this is some of that.

Israeli aircraft attacked at least 60 targets overnight. Palestinian medical sources say that at least 828 Palestinians have been killed since the start of this fighting. We'll continue to follow it for you.

(COMMERCIAL BREAK)

ANNOUNCER: You're watching CNN: Your severe weather headquarters.

HOLMES: All right. Severe weather is leaving a messy trail across many parts of the country. You know, some people in pain with all this snow. It's really helping out others. A lot of people are making some money in Connecticut because those privately-owned snowplow companies, they say their business is booming and why wouldn't it be?

Look at all of this stuff they got to do. Cleanup crews are actually out there working nonstop, pretty much 24 hours. So, that is putting a lot of money in their pockets at least.

Meanwhile, Cleveland, digging out after it got slammed about 10 inches of snow and forced officials to ground planes and issue numerous warnings to drivers along those icy roads. We'll take to Chicago now. Ten inches of snow there as well, forced folks to close down the airport. That, of course, is not an airplane you're seeing there, but O'Hare had to be shut down for a time and the 100 flights had to be canceled there. Officials are reporting, at least, one death as well out there on those slippery roads.

Reynolds Wolf is here.

WOLF: Absolutely.

HOLMES: In your area, I have to come to you. There's so much going on.

WOLF: You know, (INAUDIBLE), but you're always welcome here.

HOLMES: I appreciate it.

WOLF: I mean, you know, you got (inaudible), you put your money in and it's always accepted.

HOLMES: Yes. And he's not kidding. There is kind of a little ramp, a little bridge you got to pay to get over here.

WOLF: It is an amazing fact. The kids love it. I mean, it's a great thing for friends and families.

HOLMES: Well, we'll start with the weather there.

WOLF: Exactly. You know something about the snowplow operators, too. The great thing about them, I don't think they are really feeling bad about going out there and working. I mean, this is the time of the year for them. I mean, call me crazy but they are not too busy in July.

So, let's show you what's happening in parts of the Northeast. The snow continues to fall down in parts of say, Boston back into Portland, about four to seven inches possible in some of these spots. What you will be seeing is sunshine into the afternoon hours. We still have to deal with this moisture coming off from the Great Lakes.

We have quite a bit of snowfall back along parts of the Finger Lakes and Syracuse, all that is driving eastward. Four to seven, again, are your numbers. If you look at every spot that is shaded in the green or the red, it indicates your warnings or your advisories. Again, noon time, it's all going to be gone.

As we may go back to the west, the big story is going to be in parts of the Southwest. We're talking about southern California, in the L.A. Basin back up to Santa Barbara County. San Luis Obispo County may have some issues there, too, due to the strong winds. They got winds there coming in right through the mountain passes and when those winds move through those high mountain passes and begin to drop the compressing air, it tends to heat up very rapidly. So, it dries up a lot of the foliage.

With that, you have the issues of the Santa Ana winds, the dry conditions, the red flag warnings, and the potential for wildfires in the L.A. Basin with that high of 80 degrees. Further to north at San Francisco 71, 62 in Las Vegas, 46 in Kansas City and 24 in Chicago, Washington, D.C. with 38.

Speaking of D.C., our nation's capital, let's take a look at a great shot that we have. We're not far from it. Inauguration rehearsal is taking place today and every day leading up to the great event. And I'm telling you, it is going to be an interesting time hoping the weather will hold. It looks pretty good for us, we hope. But, of course, and weather does tend to be fickle this time of the year, especially on the eastern seaboard. You can breezy conditions there. Look at the flags there at the top of the Capitol building, you a little bit to the left, you see. And again, moving all the way out at full staff.

That is look at your morning in Washington, D.C. and across the nation. We got more weather updates coming up. Sit tight.

Let's send it back to you, T.J.

HOLMES: We will sit tight. We appreciate it, as always, buddy.

NGUYEN: All right. So, have you ever gotten rid of something because you didn't think it was worth anything, and then found out maybe it was? I want you take a close look at this? This is one of those, and you may not believe what it's actually worth.

(COMMERCIAL BREAK)

NGUYEN: Live pictures now coming to us from Gaza. You see the black smoke, a huge plume of it billowing into the air and then next to it, to the left there on your screen, you see another plume of white smoke. A lot of fighting is going on. This is east of Gaza City. It's been the site of, in fact, heavy fighting overnight between Hamas militants and Israeli soldiers. We'll continue to watch it for you.

HOLMES: There's another story here that might have you checking out your closet. A lot of people have a lot junk in there, and you wonder if it's worth anything.

NGUYEN: Yes.

HOLMES: Well, a California couple came across a rare baseball card that was thrown with in some old papers. The card was of was 1869 Cincinnati Red Stockings. Now, if you don't know that name, that team, that is actually considered the first openly all-professional baseball team.

NGUYEN: Well, so, the owner put the card for sale on eBay for just $10 but quickly pulled that and then she realized what she really had.

(BEGIN VIDEO CLIP)

ALBERT GALLEGO, CARD OWNER: This is the thing that every antique dealer dreams of, finding that one item someday that lives up to all the expectations.

(END VIDEO CLIP)

HOLMES: All right. Well, that's a pretty rare card that's worth a whole lot more than 10 bucks they put up on eBay. So, we'll see how much they ever pitch for it.

NGUYEN: Get. They are saying somewhere between $100,000 to maybe upwards of $1 million. So ... HOLMES: Well, that sounds good but the most famous card ever sold was 1909 Honus Wagner card went for more than $2 million.

NGUYEN: Wow. All right. Well, this little that we're about to show you here won't go for that much money. But one lucky lobster after a brief stint in captivity is walking the road to freedom. Look at that huge thing.

HOLMES: God, that looks good.

NGUYEN: I know. At the bottom, we shouldn't say that. But, George, the giant lobster, had been holed up in a tank in a popular restaurant in New York awaiting a day with fate, but instead of being covered in melted butter, the 140-year-old, 20-pound crustacean melted a few hearts. Customers thought he was too special to be boiled alive. So, PETA stepped in and help rescue the big fellow there.

HOLMES: A little melted butter.

NGUYEN: Stop it.

HOLMES: All right. "HOUSE CALL" with Dr. Sanjay Gupta starts right now.