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American Morning

President Obama's Plan: From Recession to Recovery to Prosperity; North Korea Vows to Restart Reactor; Obama Taking the Fight to Pirates; Marijuana: To Legalize or Not?; White House Easter Egg Antics

Aired April 14, 2009 - 06:00   ET

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

KIRAN CHETRY, CNN ANCHOR: Good morning. And welcome. It's Tuesday, April 14th. I'm Kiran Chetry.

JOHN ROBERTS, CNN ANCHOR: Good morning to you. I'm John Roberts. Thanks very much for being with us on this Tuesday as we start to roll the week out in front of us.

We begin with breaking new this morning. As we speak, the crew of the cargo ship that was originally hijacked by pirates is on the move. Right now, 19 Americans who are the crew onboard the Maersk Alabama are at a hotel in Mombasa, Kenya. And despite three pirates being killed by Navy SEALs over the weekend, their counterparts still on the attack today.

Three more ships have been hijacked in the Gulf of Aden in just the past 24 hours. The latest is a Greek vessel. The owners of that ship say that they have tried to contact the captain but so far have had no luck.

Meantime, some of the other big stories that we'll be breaking down for you here on our agenda in the next 15 minutes.

President Obama keeping the spotlight on the economy. In just a few hours, he's going to give what's being called a major speech at Georgetown University. And in just a moment, we'll take you live to Washington where our White House team is learning new details of what the president is expected to say.

A defiant North Korea says it will boycott nuclear disarmament talks in protest of the United Nations condemnation of its recent rocket launch. The statement says Pyongyang plans to enhance its nuclear capabilities and to continue to develop its space program. We are monitoring international reaction for you this morning.

CHETRY: First, though, back to our top story. President Obama about to confront an issue of major concern to you. It's your money. In just a few hours, the White House says the president will outline how we move the economy from recession to recovery, and ultimately to prosperity. Over the next few days, the message out of the White House has been one of confidence and hope.

In fact, here's just some of what the president has said in the past 72 hours.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We have also seen this month people starting to get their first checks in terms of the tax cuts that were initiated through the recovery package. And when you combine it with the other efforts that are being made across the country for infrastructure projects, for the kinds of innovative energy programs that were part of the recovery package, what you're starting to see is glimmers of hope across the economy.

We passed the American Recovery and Reinvestment Act, the most sweeping economic recovery plan in history. The plan to save or create 3.5 million jobs putting Americans back to work doing the work America needs done. Today, I think it's safe to say that this plan is beginning to work.

(END VIDEO CLIP)

CHETRY: CNN's Suzanne Malveaux is live at a very rainy White House this morning.

You know, sometimes you have all the luck. You almost got blown off the roof in Turkey, you poor thing. But, Suzanne, despite the bad weather, it seems like they're going to be striking an optimistic tone today when we hear from the president.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: You know, Kiran, you're absolutely right. Because what is happening here is that they're seeing that this is working. There are some reasons for optimism.

We heard the president yesterday talking about those construction projects, more than 2,000 or so. They're ahead of schedule. But really what I've been told by White House aides, don't expect any kind of new policy initiatives today, but he's really checking in with the American people. He's going to talk about what is working, where our money is going. He's also as well going to talk about the fact that there are still thousands of people who are losing their jobs.

There's still a long way to go here before you get to the recovery period. But he wants to update folks. And this comes at a critical time because as you know, Kiran, you mentioned Turkey. He was in Europe last week. He's going off to Trinidad this week. He wants to let people know he's still paying very much attention, close attention to the economic situation. And he also wants to make the connection with those Latin American countries and Europe from last week that, look, this is all related. It's all connected, and it is going to help in terms of the economic situation -- Kiran.

CHETRY: Of course, the economy, the big thing on his plate right now. But all the attention is focused on the new first dog, right? Making its appearance, a very cute photo of the president running with little Bo.

MALVEAUX: Yes. You know, it's funny because yesterday they had the Easter Egg Roll out of the White House and that the microphones weren't working. So there was this moment of awkwardness. The first family on the trim (ph) balcony, and so they weren't quite sure what to do. And the crowd just started yelling, where's the dog, where's the dog, where's the dog?

So there's like a lot of excitement. There's still a lot of curiosity about this first pooch that is coming and we do expect to see this dog today, Kiran.

CHETRY: So adorable. Looks like they're bonding, though. They're running down the hallway together and...

MALVEAUX: They're getting used to him already.

CHETRY: Yes.

MALVEAUX: He's visited before about a couple of weeks ago. It's like a little secret meeting that they had with the family. And I understand the carpets are fine so...

CHETRY: All right. Well, that's good news, certainly. Suzanne, thanks.

You can also see the president's speech on the economy this morning, 11:30 Eastern right here on CNN or streaming live on your computer, CNN.com/live.

And also it's just hours before President Obama speaks about the economy. We have some brand new polls just released about three minutes ago. We'll be seeing them for the first time on what Americans think about the president's financial fix.

According to a CNN/Opinion Research Corporation poll, 58 percent of Americans polled believe that the president has a clear plan for solving the economic problem. And that number is in sharp contrast with the Republicans. Just 24 percent polled say they have a clear plan for solving the economic problem.

ROBERTS: We've also got big news this morning from Goldman Sachs. The banking giant surprised investors by releasing its earnings report yesterday, a day ahead of schedule, and the results were somewhat surprising as well.

Christine Romans here "Minding Your Business." Taxpayers might get some of their money back.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: That's absolutely right. This company is clearly chafing under the weight of government influence and is trying to figure out how to get money back to taxpayers.

It posted a $1.81 billion profit in the quarter, analysts say decisively turning the quarter from a miserable, awful performance late last year, its worst performance as a public company.

The company plans a $5 billion stock offering. What this means is it's going to raise money from investors so it can pay the government back. It owes the government $10 billion. It has a $10 billion investment from you and me with that stock offering and some other resources that wants to pay the government back at a time of the government and Goldman Sachs' choosing, of course. But what this tells us is that this is a company that's done a little better than anybody thought.

Wall Street, you know, was looking for maybe $1.80 a share. It made $3.30 a share. It came a day early.

The stock has been rallying for some time because investors were saying, look, we think may be some of the worst might be behind for Goldman Sachs. We'll see if this paints some kind of a picture on the street today, wait, have the banks decisively turned the corner?

We meant the corner. Remember, Goldman Sachs is a lot different than say...

CHETRY: Wells Fargo.

ROMANS: ... Wells Fargo, which has this traditional banking and Goldman Sachs is one of those old investment banks that, you know, has a much different mix than Wells Fargo.

ROBERTS: Maybe a little glimmer of hope.

ROMANS: Maybe it is.

ROBERTS: Thanks, Christine,

ROMANS: Maybe it is.

ROBERTS: Good to see you this morning.

Also breaking right now, a defiant North Korea announced that it will boycott six-party talks aimed at removing the country's nuclear threat. A foreign minister statement says the talks have become a platform for infringing on North Korea's sovereignty. The statement also defended Pyongyang's recent rocket launch and blasted the United Nations Security Council declaration that condemned it.

CNN's Zain Verjee is live in London for us this morning following all of the developments.

And also some troubling news from North Korea, Zain, that if these Six-party talks fall apart, it's going to start refining plutonium again?

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Yes, I mean, these are really worrying developments particularly for North Koreans. They're serious about it and not just full of hot air. But it would be a really big deal, John, if they pulled out from the Six-party talks and they meant it. They said they're going to boycott it.

The U.S. has invested in this process since 2003, so it would be a pretty major blow. Let's take a look at the North Korean statement today. What they said was is that the talks over ending the nuclear program were useless, that they were no need for them. And they went on to say that we will never again take part in such talks and we will not be bound by any agreement reached at the talks.

So this is a pretty strong statement even from the North Koreans. It's something experts are saying has been directed toward the Obama administration. And what this does, John, it really raises the stakes.

The North Koreans are probably trying to get maximum concessions about saying and doing the sorts of things that they are and may be looking at the Obama administration to do things like have direct dialogue with them which is what they want. Many experts of North Korea adding to that the U.S. and its allies really have to think carefully as to how they want to respond to a situation like that -- John.

ROBERTS: Suzanne, what are the chances that North Korea will come back to the table?

VERJEE: Well, the North Koreans are notorious for saying things, threatening to do things merely to get attention and to maximize the kinds of concessions that they can get. But a lot of people are saying that there is probably room for diplomacy to work here, for the Chinese, for the United States, the Japanese, the Russians, and the South Koreans to put pressure on North Korea and drag it back to the table.

On the other hand, the North Koreans may have calculated that they have nothing to lose and if that's the case, this would be a very serious development because they'd be back in the nuclear bomb-making business.

ROBERTS: Oh, we don't want them there.

Zain Verjee for us this morning from London. Zain, thanks very much.

CHETRY: And we're still following breaking news this morning. The crew at the Maersk Alabama right now on the move. This is happening as reports of three more hijackings in the pirate-infested waters off of the coast of Somalia. One of them happening just overnight. We're going to bring all the details live from Bahrain.

And the marijuana business in American is booming, no signs of slowing down. And our appetite for the drug is helping fuel the bloodshed along our southern border.

So how do we persuade the marijuana smokers to stop? Isn't that really the answer?

Nine minutes after the hour.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN BREAKING NEWS.

ROBERTS: Eleven and a half minutes after the hour. Welcome back to the Most News in the Morning. We are following breaking news today.

And right now on the high seas, a dangerous situation unfolding in one of the heaviest traveled shipping lanes in the world. Pirates hijacking three more ships in the Gulf of Aden in just the past 24 hours. The latest, a Greek carrier off the coast of Somalia overnight.

News of its latest hijacking comes as the American crew of the Maersk Alabama which managed to kick a band of pirates off their ship last week is one step closer to getting home. This morning, they're at a hotel in Mombasa, Kenya. And right now, we are getting some new information about their captain, Richard Phillips.

For more on that, let's go to CNN's Barbara Starr who's live near the Navy's headquarters, the headquarters of the Fifth Fleet in Bahrain.

Barbara, what are we learning this morning?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, John, the Navy now making the final arrangements to get Captain Rich Phillips back to his crew and back home to his family. Today, Captain Phillips is back on the USS Bainbridge, the original ship that rescued him. The Bainbridge making all due speed towards that Kenyan port of Mombasa, we are told where he will be reunited with his crew and then they will all fly home to their families together.

There are some security concerns. Bainbridge may not pull right into Mombasa. There have been Islamic fundamentalist groups in that area. There have been attacks in the past. The Navy is on the verge of making the decision, we're told, to keep a fairly low profile of any presence it has when it returns Captain Phillips to Mombasa.

We also have new information today that Bainbridge was also in a deliberate collision with that lifeboat. The Bainbridge and the Halliburton, both of those ships actually were very close to the lifeboat when the rescue happened. They both made what the Navy calls skin-to-skin contact with that lifeboat to keep the pirates from taking Captain Phillips back into Somalia. That would have been a disaster, very difficult to rescue him once he would have been on shore in Somalia.

So now we know today both warships made a skin-to-skin, a collision, a deliberate collision contact if you will with the lifeboat to keep Captain Phillips from being taken back into Somalia -- John.

ROBERTS: You know, Barbara, the Navy's actions against those three pirates on Sunday to free Captain Phillips raises questions about the rules of engagement in terms of negotiating with hostages and when does the Navy get involved in what is really a law enforcement operation. What are commanders there at the Fifth Fleet that you're talking to say about using military force against pirates in the future?

STARR: Well, there are U.N. resolutions that they can use all action necessary to deter piracy. This has been determined to be an international crime. But, there's a lot of talk right now, John, about the possibility of military attacks against pirate camps on shore in Somalia. And I must tell you, Vice Admiral William Gortney here in Bahrain is sounding a note of caution before people get too excited about doing all of that.

He says that type of broader military operation would be very tough. You have to have good intelligence inside Somalia about where these pirate camps are, and you have to be darn sure that you're not going to launch attacks that could kill Somali civilians, if you will. He's an F-18 pilot. He knows all about air strikes. He's a little bit cautious about that whole idea -- John.

ROBERTS: All right. Barbara Starr for us this morning in Manama, Bahrain. Barbara, thanks very much.

CHETRY: Well, his sister was killed in the Virginia Tech massacre. In fact here on AMERICAN MORNING, we had a very interview with him two years ago. Now, he's telling CNN why he's part of an ad campaign pushing lawmakers to close a so-called gun show loophole that allows the sale of guns without background checks.

Also, marijuana, a booming cash crop. It's fueling the deadly violence now terrorizing many border cities. But with pot now an integral part of American culture, is there any way to stop it? We're looking for answers.

Fifteen minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning.

President Obama is heading to Mexico later in the week. One of the big topics on the agenda, the bloody conflict raging between drug cartels just across the border.

Now, you could call it a war of supply and demand. As Secretary of State Hillary Clinton put it last month, the fighting in large part is being fueled by America's insatiable appetite for drugs.

(BEGIN VIDEO CLIP)

HILLARY CLINTON, U.S. SECRETARY OF STATE: Obviously, our demand for drugs is what motivates these drug gangs. I mean, if they didn't think they were going to make a bunch of money across the border, they'd go into another line of work.

(END VIDEO CLIP)

CHETRY: Well, the demand for drugs is enormous. Here's more on our "AM Extra."

The CIA's fact book describes the United States as the world's largest consumer of cocaine, heroin and marijuana. It's estimated that Americans spend billions each year buying illegal drugs. And also stats from 2007 show an American was arrested every 38 seconds for violating marijuana laws.

So all this week we've been breaking down America's drug addiction and how it's helping fuel the violence spilling over the border. And this morning, we're looking at the $8.5 billion business being made off marijuana. How do you stop the supply when there is such a massive demand?

CNN's Jeanne Meserve is live in Washington.

If you listen to all of the people that wrote in questions to President Obama's town hall meeting, they say the answer is legalize it.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, that's one of the suggestions. You know, a lot of Americans, Kiran, find humor in marijuana use. Think Cheech and Chong. But some experts say look at the Mexican border and you will see that marijuana is no laughing matter.

(BEGIN VIDEOTAPE)

MESERVE (voice-over): An estimated 15 million Americans use marijuana every month. It is illegal but an integral part of American culture.

(BEGIN VIDEO CLIP, FROM YOUTUBE COLUMBIA PICTURES)

UNIDENTIFIED MALE: This is like the apex of the vortex of joint engineering.

(END VIDEO CLIP)

MESERVE: Marijuana use is viewed so casually that when the movie "Pineapple Express" introduced a facetious innovation called the cross joint, scores of people thought nothing of posting copycat videos on YouTube. But many do not see the humor in marijuana. They say its sale is underwriting and promoting cartel violence.

JOHN WALTERS, FORMER DIRECTOR, OFFICE OF NATIONAL DRUG CONTROL POLICY: You're funding the same people who are beheading, who are killing innocent women and children, who are threatening the rule of law in Mexico.

MESERVE: The federal government estimates U.S. marijuana sales generate 61 percent of the Mexican cartels' income, $8.5 billion, more than double what they make from cocaine.

PETER REUTER, UNIVERSITY OF MARYLAND: The numbers are incredible.

MESERVE: Economist Peter Reuter insists cocaine is the cartel's cash cow.

REUTER: The argument that marijuana use fuels some terrorism and violence in the rest of the world is pretty strained. Most of the marijuana that's smoked in this country is probably domestically produced.

MESERVE: But some of that is grown by the Mexican drug gangs deep in U.S. national forests to avoid law enforcement. Though this change last month resulted in the interdiction of two tons of marijuana, officials say enforcement actions like this aren't enough to stop the brutality in Mexico.

CLINTON: Obviously, our demand for drugs is what motivates these drug gangs. I mean, if they didn't think they were going to make a bunch of money across the border, they'd go into another line of work.

MESERVE: But will drawing the connection to cartel violence persuade marijuana smokers to stop? Not this one.

JONATHAN, MARIJUANA USER: When I buy gas for my car, I'm supporting horrible regimes, repressive regimes around the world. I don't support those regimes, but I do want gas for my car.

(END VIDEOTAPE)

MESERVE: There is vehement disagreement over whether legalizing or decriminalizing marijuana would have an impact on the cartels and their brutal tactics. But in the meantime, statistics show marijuana use among teenagers is declining. Experts say it just isn't as fashionable as it once was.

But Kiran, you did show a video yesterday of Snoop Dogg apparently getting high on that video on Twitter.

CHETRY: All right. Well, a lot of different opinions though also on whether or not it's the domestic production or where it's coming from Mexico that's our biggest problem. Very interesting piece.

Thanks, Jeanne.

MESERVE: You bet.

CHETRY: All this week, by the way, we are going to be looking for solutions to America's drug addiction. Coming up at our next hour, we're going to be talking to two guests, including one who says that we may have a chance at winning the war on drugs if we try to legalizing them. And at the same time tomorrow, an in-depth look at the innovative ways that drug cartels are smuggling drugs into this country -- John.

ROBERTS: It's been nearly two years since the Virginia Tech massacre and families of the victims are on a mission to close a potentially deadly loophole in gun laws. We'll have that one for you coming up.

And the real deal on your taxes. Tomorrow's deadline quickly approaching, and we've got the news that you need to know about the fees and where your money is going.

It's 23 minutes after the hour. (COMMERCIAL BREAK)

ROBERTS: Twenty-five and a half minutes now after the hour. Welcome back to the Most News in the Morning.

Thursday marks two years since the Virginia Tech massacre. As the tragic milestone approaches, families of the victims are pushing to tighten gun laws in Virginia and across the country.

CNN's Jim Acosta is following the story for us. He's in Washington this morning.

Good morning, Jim.

JIM ACOSTA, CNN CORRESPONDENT: Good morning, John.

That's not the only milestone that's coming up. It's been nearly a decade since the shooting rampage at Columbine and two years since the tragedy at Virginia Tech. And family members of the victims say it's remarkable that few gun control laws have been passed in recent years. And there's one law they'd like to see passed right away that would close the gun show loophole.

(BEGIN VIDEOTAPE)

OMAR SAMAHA, BROTHER OF VIRGINIA TECH MASSACRE VICTIM: She was an amazing person.

ACOSTA (voice-over): Every since CNN met Omar Samaha in the days after his sister Reema was murdered in the massacre at Virginia Tech two years ago.

SAMAHA: My sister used the phone around the house.

ACOSTA: He's been on a mission to tighten the nation's gun laws.

(BEGIN VIDEO CLIP)

SAMAHA: There are some huge loopholes, the gun show loophole which allows convicted criminals to purchase guns completely unchecked.

(END VIDEO CLIP)

ACOSTA: Now Samaha is appearing in TV ads targeting the gun show loophole, the loophole that allows people at gun shows to buy firearms from non-licensed individual gun owners without the usual federal background checks. He knows because he did it himself as he told Virginia State lawmakers last December.

SAMAHA: I was able to buy guns from private sellers. Not a single question asked, my I.D. hadn't been checked once.

ACOSTA: Samaha says while the Virginia Tech killer didn't buy his weapons at gun shows, the next mass murderer could.

Have you been surprised that even in the aftermath of that tragedy that many gun laws in this country have not changed?

SAMAHA: I'm actually very surprised. A lot are pleased (ph) to, you know, help right the wrongs of our past have been falling on deaf ears.

ACOSTA: He blames the gun lobbies like the National Rifle Association.

SAMAHA: Democrats and Republicans alike are in the back pocket of special interest groups like the NRA. And they're being told to vote a certain way and they have to do whatever the NRA wants.

ACOSTA: And gun rights activists are making themselves heard.

MAYOR MICHAEL BLOOMBERG (I), NEW YORK: Who are you going to support? The good guys or the criminals?

ACOSTA: When New York Mayor Michael Bloomberg joined other families of Virginia Tech victims to announce the ad campaign, NRA member Craig Stevens says he was thrown out of the event.

CRAIG STEVENS, GUN RIGHTS ACTIVIST: I got to the door and they said I had to leave.

ACOSTA: Stevens says there is a reason why gun sales are soaring these days.

Do you think that the federal government might attempt to disarm law-abiding gun owners in this country?

STEVENS: Absolutely.

ACOSTA: You think that's going to happen?

STEVENS: No, not going to happen. I absolutely believe they're going to attempt to disarm the public.

(END VIDEOTAPE)

ACOSTA: And he is not alone in those feelings. In a statement, the NRA argues better enforcement of existing firearms laws is what's needed. Despite the tragedy at Virginia Tech and more recent mass shootings, gun rights supporters still maintain loosening firearms laws and providing the public with greater access to guns is the best way to keep the peace -- John.

ROBERTS: A lot of emotion on both sides of that debate. Jim Acosta for us this morning. Jim, thanks so much for that good report.

ACOSTA: You bet.

CHETRY: Twenty-eight minutes past the hour now. We're following top stories for you.

Breaking news, pirates hijacking three more ships in the Gulf of Aden in the past 24 hours. The latest is a Greek vessel. That hijacking happened overnight. The owner of that ship says that they've had no luck trying to contact the captain.

Also news of the attacks coming as the American crew of the Maersk Alabama is now resting and relaxing at a beach resort in Mombasa. They certainly deserve it after their harrowing experience. They're expected to be reunited with their captain before flying back to the U.S.

And the Obama administration lifting restrictions on Cuban- Americans, allowing them to travel and to send money home to relatives in Cuba. Now this is the first significant change in U.S. policy toward Cuba in nearly 50 years. But former Cuban leader Fidel Castro is not happy with the president's action saying the harshest of measures, the broad U.S. trade embargo remains in place.

And Republican Norm Coleman expected to file an appeal with the Minnesota Supreme Court sometime today after a three-judge panel ruled Democrat Al Franken should be declared the winner in the state Senate race. Franken is ahead by 312 votes after a statewide recount.

Also this morning, we've got -- this gets me choked up -- you have less than 24 hours until tax day. And from then -- from now until then, CNN is your source for the real deal. We've got everything you need to know about what you're paying, what you're buying.

CNN's Christine Romans joins us now with more.

ROMANS: First off, don't blame the IRS. They're just, you know...

CHETRY: That's true.

ROMANS: They're just the guys and gals who have to collect the taxes. It's actually Congress that writes the law that make up 16,000 pages of tax code in this country, but we thought you'd like to know who pays what.

The answers might surprise you.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): Think of all you spend on food, clothing, and housing. Americans on average spend more on taxes than all of that combined. And it's not just the dreaded federal income tax.

There's different pockets of state income tax. There's city income tax, there's sales tax in states as we know, and localities get really creative with sales tax and then real estate property taxes.

Americans love to hate the tax man, but consider this. Your taxes are low relative to other developed nations, much less than in Japan, Australia, Canada, Germany, the UK, France, and Sweden where taxes pay for socialized medicine and other benefits.

In the United States, it varies depending on where you live. Alaska leads the states with the lowest tax burden. These states, including New Jersey, Connecticut, and California have the highest.

Rich investment bankers aren't so popular these days but...

LEN BURMAN, TAX POLICY CENTER: The richest one in five Americans pays 97 percent of the overall individual income tax.

ROMANS: And tax experts note, the share paid by companies has been declining. Who doesn't pay? Seniors living solely on social security and many low-income families with children. Thanks to refundable tax credit. But that's income tax.

BURMAN: There's nobody who escapes tax entirely unless they are hermit living far, far away where they don't have any cash transactions.

(END VIDEOTAPE)

ROMANS: Would you like to be a hermit between now and tomorrow? I don't recommend it.

File those taxes. The tax code is front and center in current efforts to stimulate the ailing economy. Think of this. Your jobless benefits this year will be tax free on next year's return. And the IRS wants you to know you can claim a credit for buying a new car or a new house, thanks to the economic stimulus passed by Congress.

CHETRY: So feel better.

ROMANS: I don't know. Can you really feel better on April 14th and April 15th? It's still tax.

ROBERTS: No. No danger of capital gains from last year. That's for sure.

ROMANS: That's absolutely right. You could write off your losses for the next three years. That's really right, John.

ROBERTS: All right. Thanks, Christine.

Well, good news, bad news for the breeder who sold Vice President Biden a German shepherd puppy. The high-profile purchase put her right on the crosshairs of animal rights activist.

And could the vice president be wearing out his welcome at the White House? We look at rumors of a rift in his relationship with President Obama.

It's 32 1/2 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Welcome back to the Most News in the Morning.

It's move-in day at the White House for the first dog, Bo Obama. Vice President Biden recently got a new dog as well. A German shepherd puppy. But the breeder who sold him the dog is getting some unwanted attention.

Alina Cho is here now with that story.

What kind of attention?

ALINA CHO, CNN CORRESPONDENT: Well, you know, the big question is should Biden have gone to the pound or a shelter instead of going to a breeder.

You know, John, good morning. Good morning, everybody.

You know, when breeder Linda Brown got word back in December that Vice President Biden was going to buy a dog from her, she immediately thought, opportunity of a lifetime, a boon for business. Then, in a matter of days, everything changed and Brown says she's been living a nightmare.

(BEGIN VIDEOTAPE)

CHO (voice-over): Almost 40 years in the business, and Linda Brown couldn't believe her luck when Vice President Joe Biden came to her Wolf Den Kennel in rural Pennsylvania. The V.P. ultimately went home with one of her German shepherd pups.

LINDA BROWN, DOG BREEDER: In my mind, it was the most wonderful day of my life.

CHO: Or so she thought. Days after the V.P.'s visit and the photo-op of a lifetime, Brown says the state's dog warden was at her door, accusing her, she said, of dirty housekeeping, bad recordkeeping, and mistreating her dogs. The state says inspections typically take place twice a year.

(on camera): You know, the state claims that this is just part of routine inspections.

BROWN: Never, never. I've been doing this for years. I've never had inspections like this.

CHO (voice-over): Brown said she's even received death threats. Who's behind this? She believes animal rights groups. PETA says Brown's claims are suspect.

UNIDENTIFIED MALE: I find it extraordinarily difficult to imagine that anybody is actually threatening anybody over this.

CHO: Days after it was announced, the vice president was using a breeder, PETA re-released this disturbing ad in Biden's home state.

(BEGIN CLIP, PETA ADVERTISEMENT)

UNIDENTIFIED MALE: Here's a dog you just killed.

UNIDENTIFIED FEMALE: Oh, my God. UNIDENTIFIED MALE: What are you doing?

UNIDENTIFIED MALE: You buy a dog from a breeder, you kill a dog in a shelter.

UNIDENTIFIED GIRL: I don't want to kill a dog.

UNIDENTIFIED MALE: Too late.

(END VIDEO CLIP)

CHO: Vice President Biden's office tells CNN, "The V.P. has a stellar animal rights record, and was one of only seven senators who in 2008 received a 100 percent rating from the Humane Society."

The statement goes on to say, "He is an advocate for rescuing animals as shown by his rescue of the Biden's' current cat, Daisy, from a local shelter."

After going to court, Brown was cleared of all citations, but she says not before spending $4,000 in legal fees.

(on camera): And if you had it to do all over again?

BROWN: Never. I would never sell to a high-profile person ever, ever again.

(END VIDEOTAPE)

CHO: So the big question now is will the Obamas take some heat for not going to a shelter. Well, some people are calling Bo a quasi- rescue dog, because the Obamas saved him from owners who are a poor fit, even though Bo did not come from a shelter. The Obamas are in lieu of getting their dog from a shelter, making a donation to the D.C. Humane Society.

But, John, of course, animal rights groups will say that's nonsense to call a dog a quasi-rescue dog. There's no such thing. You know, millions of animals are euthanize every year, but it is a bit of a gray area.

ROBERTS: Yes. People figure out where that dog would have gone had the Obamas not taken them in.

CHO: It would have gone back to the breeder in Texas and then hopefully it would have gone to another home at some point.

ROBERTS: All right. Alina Cho for us this morning. Alina, thanks so much.

CHO: You bet.

ROBERTS: Kiran.

CHETRY: All right, guys. Well, people say he is prone to gaffes, maybe sometimes he gets a little off message. But is President Obama really disappointed in his Vice President Joe Biden? We're going to take a closer look at the state of their relationship.

It's 39 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: My favorite band this morning. Welcome back to the Most News in the Morning.

Time to fast forward to some of the stories that will be making news later on today.

At 10:00 a.m. Eastern, a government watchdog group releases its annual report on pork barrel spending better known as the Congressional Pig Book. The Council for Citizens Against Government Waste is expected to include some 340 pet projects in this year's budget, totaling more than $4 billion.

At 11:00 a.m. Eastern, First Lady Michelle Obama will visit the Department of Homeland Security. She'll be joined there by Secretary Janet Napolitano. The First Lady's office says the goal of the agency tour is simply getting to know the community.

And all day long we're going to be keeping a very close eye on the flooding in North Dakota. The National Weather Service says the Cheyenne River is headed for a crest at around 22 feet in the next couple of days. That river empties into the Red River near Fargo, which is also in danger of reaching a second flood crest this week - Kiran.

CHETRY: All right, John, thanks.

Well, we saw President Obama and Vice President Biden together in public yesterday for the first time in a while. They were drumming up support for the stimulus program amid rumors of a strain in their relationship.

There have been a lot made of how the two are getting along. Of course, "Saturday Night Live" had some fun with that over the weekend. Take a look.

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACTOR, PLAYING VICE PRESIDENT JOE BIDEN: Hey, I don't know if you've heard about this, but I've been dusting it up with Dirty Dick Cheney.

UNIDENTIFIED ACTOR, PLAYING PRESIDENT BARACK OBAMA: I heard about that.

BIDEN ACTOR: Yes, yes, yes, yes. He was talking all kinds of mess about your national security policy. And I said, Dick, I think you're dead wrong. Always got your back, sir.

OBAMA ACTOR: I thank you for it.

BIDEN ACTOR: Yes, oh boy. Oh boy, what I wouldn't do to go mano y mano with that SOB.

(END VIDEO CLIP)

CHETRY: All right. Well, Nia-Malika Henderson joins us now. She's a White House reporter for Politico from Washington.

So, obviously, "SNL" exaggerated Joe Biden's persona a little bit there. But there are rumblings that these two aren't so close. Is that just Washington buzz or is there something to that?

NIA-MALIKA HENDERSON, WHITE HOUSE REPORTER, POLITICO: Yes, I mean, it seems to be a little bit of Washington chatter. And also -- I mean, the truth is -- I mean, Obama and Biden are very much an odd couple, and that was clear from the beginning.

But in some ways, Barack Obama has said that he likes the fact that Biden is a bit of a contrarian and that he stirs the pot and gets the group out of essentially group things and that he pushes the envelope in some of the questions.

Barack Obama and Vice President Biden, they meet every Friday. He also meets with Secretary of State Clinton. And Barack Obama has said that he likened Biden to a basketball player whose accomplishments don't necessarily show up on the stats sheet, but he's doing the things like getting the loose ball and getting rebounds and things like that.

CHETRY: Right.

HENDERSON: It seems like, I mean, they've developed a very good relationship over these last months.

CHETRY: You know, Vice President Biden, though, has made news for appearing to talk out of turn, sometimes even contradict President Obama since he was chosen as vice president. But is it a problem to publicly disagree with your boss in the White House?

HENDERSON: Well, I mean, again -- I mean, I think Barack Obama has been very clear about this whole idea of liking contrarian views. But in the campaign trail, the point of fact is that some of Obama's top aides did have to have these conversations with Biden for some of the gaffes he made and for publicly disagreeing with Barack Obama on some issues. So, there is the problem.

And the other kind of larger problem is, if you look at this "SNL" kind of parody of him, the problem could be that the vice president comes off as a bit of a buffoon in the way that somebody like Quayle did. And I mean, that certainly would be a danger there.

But so far, I mean, it seems like Biden has been able to carve out this real integral role in the White House, but also publicly, everybody kind of seems to see him as this favorite uncle type...

CHETRY: Right.

HENDERSON: You know, the type of guy who's like, you know, challenging everybody to an arm wrestling contest or something.

CHETRY: But you know, the latest buzz, though, was former presidential advisor for George W. Bush, Karl Rove, recently calling Vice President Biden a liar for claiming to have scolded former President Bush.

Rove said it didn't happen. He went further. This is what he said. "I hate to say it, but he's a serial exaggerator. If I was being unkind, I'd say he's a liar. But it's a habit he ought to drop."

Now has this back and forth caused any political grief for the president, you know, known as no-drama Obama?

HENDERSON: Right. I think again, I mean, in this role, Vice President Biden has very much taken on the traditional role of the vice president, which is as an attack dog. So you see him kind of going after Cheney there and also this dustup with Karl Rove because he was going after George Bush.

So it's very much the traditional role and the Obama administration has also used the Bush administration as kind of the bad guy and a punching bag and kind of talking about their policies. So, again, I think he's right in line with what the administration wants him to do.

CHETRY: All right. Nia-Malika Henderson for us. White House reporter for Politico. Thanks for being with us this morning.

HENDERSON: Thank you, Kiran.

ROBERTS: Well, we're following breaking news this morning. Three more hijackings reported in the pirate-infested waters off of the coast of Somalia. This as we learned new details about Captain Richard Phillips and the crew of the Maersk Alabama. We're live at the home of the U.S. Navy's Fifth Fleet this morning.

And President Obama making friends over eggs on the White House lawn. Our Jeanne Moos looks at the traditional Easter Egg Roll and a wild rumpus at the White House.

It's 47 minutes after the hour.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, HOST, "THE LATE SHOW WITH DAVID LETTERMAN": This is a tradition down there in Washington at the White House there, the big Easter Egg Roll on the White House lawn. They always have it on Monday after Easter. They almost had to cancel the Easter Egg Roll and at the last minute, the United States government borrowed a billion eggs from China. Yes.

(END VIDEO CLIP)

ROBERTS: Welcome back to the Most News in the Morning.

Fun and games with the First Family. As CNN's Jeanne Moos tells us, a traditional Easter event at the White House turned out to be more eventful than anticipated.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): When all of the Obamas make an appearance together, it's time for the latest installment of first family follies.

First off, everyone waited to see if the singer Fergie could hit the high notes of "The Star-Spangled Banner."

FERGIE (SINGING): And the rockets' red glare...

MOOS: Not once, but twice.

FERGIE (SINGING): For the land of the free...

MOOS: And maybe that's what killed the microphones when the president went to speak.

(VIDEO CLIP)

MOOS: And when all else failed...

(VIDEO CLIP)

MOOS: ...try the rabbit ears.

Mrs. Obama killed time clowning around.

(VIDEO CLIP)

MOOS: And finally, about a minute into the microphone meltdown...

MALIA, DAUGHTER, OBAMA FAMILY: Is it on?

Oh, yes.

B. OBAMA: That's Malia, our technical adviser.

MOOS: Seven-year-old Sasha got into the act too, chiming in when she thought her mom left out an activity.

MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: It's about moving their body. Get out. We don't have tennis. It's on the tennis court.

MOOS: But something's missing from this family tableau -- something that had the cloud clamoring.

UNIDENTIFIED CHILD: Where's the dog? MOOS: At that moment, we don't know where Bo was. But the White House released this photo of him running the halls with President Obama.

Kids were running on the White House lawn -- competing in egg races. The president egged this girl on and even intervened to get her over the finish.

(VIDEO CLIP)

MOOS: Members of the first family also took turns reading aloud.

(on camera): "Where the Wild Things Are" brought out the wild man in President Obama. He didn't just read, he reenacted.

B. OBAMA: (HOWLING)

So if this was them in the wild rumpus.

MOOS: He lead the group in staring without blinking.

(VIDEO CLIP)

MOOS: Kind of like the Secret Service guy lurking in the background.

B. OBAMA: Let the wild rumpus start.

MOOS: The wild rumpus of the Obama presidency.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

CHETRY: So adorable. Even the White House has technical difficulties at times. How about that?

ROBERTS: They do. He made it a whole lot of fun, though. The first family really got out there and did it for the kids. It was so nice that they had some good weather for it yesterday.

But I've never seen Fergie wearing so many clothes, never.

CHETRY: Well, you know what, she must have gotten the memo. She's at the White House, so --

ROBERTS: I guess so.

CHETRY: You have great abs, but we're not going to see them today.

Well, still ahead, CNN is learning new details about American Captain Richard Phillips and the crew of the Maersk Alabama. We're going to tell you where they are and also the plans for their homecoming. A pilot dies in the cockpit. There were passengers onboard. And one man takes matters into his own hands -- saving lives going from passenger to pilot in the blink of an eye. More details on that.

Fifty-three minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to Most News in the Morning.

Some brand new developments in the high stakes nuclear chess match with North Korea. The country is now promising to restart its main nuclear plant, and also to boycott talks after the U.N. condemned its long-range rocket launch.

Well, North Korea famously blew up the cooling tower. You have may remembered that at Yongbyon. That was last year. We shoot it live on our air as it was happening. It was part of disarmament for aid deal that was reached with five countries, including the United States and China.

CNN's John Vause has new developments from Beijing this morning. A lot of people are wondering what happened? There seem to be so much promise last summer.

JOHN VAUSE, CNN INTERNATIONAL CORRESPONDENT: Yes. It all went very bad over a fairly extended period of time, Kiran. North Korea is saying that that statement coming out of the U.N. is an unbearable insult. And not only is it quitting those nuclear negotiations aimed at ending its nuclear program, but it's quitting for good and will never again participate.

At the same time, North Korea plans to restore its aging nuclear facility at Yongbyon. That it being disabled as a part of those nuclear negotiations. Also, the North is warning that it's going to bolster its nuclear deterrent for self-defense. Now, it tested a nuclear device back in October of 2006, and the fuel for that test came from the now partially disabled Yongbyon nuclear facility.

The one country which could drag North Korea back to those negotiations is in fact China. But officials here today gave no indication that Beijing is willing to do anymore than urging Pyongyang to remain calm, urging Pyongyang to stay within that six-party process, that those negotiations, which have being stalled now for many, many months.

One reason why this may in fact sound a bit more dramatic than it really is (INAUDIBLE), when that cooling tower was destroyed last June. Experts said at the time that it could take a year to rebuild that cooling tower.

You can't have a facility without the cooling tower and operations. So that, in fact, gives the diplomats and the negotiators about a year, they say, to try and get North Korea to calm down and return to that six-party process - Kiran.

CHETRY: All right. Hopefully, that can happen. John Vause for us this morning in Beijing. Thanks.

And we're coming up right now on two minutes before the top of the hour. We want to say welcome once again. It's Tuesday, April 14th, I'm Kiran Chetry.