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American Morning

Top Republican Wants Pelosi to Apologize for Lie Accusation; N.Y. Asst. Principal Dies of Swine Flu; President Obama Gives Notre Dame Commencement Speech; Obama, Israeli Prime Minister to Meet; U.S. Aware of Pakistan's Nuclear Expansion; Filly Wins Preakness

Aired May 18, 2009 - 07:58   ET

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


JOHN ROBERTS, CNN ANCHOR: Good morning. Thanks very much for being with us on the Most News in the Morning as we begin another brand-new week. It's Monday, it's the 18th of May. Good to have you with us. I'm John Roberts.

KIRAN CHETRY, CNN ANCHOR: And I'm Kiran Chetry. It is -- did you already say this? Sorry. Two minutes before the hour?

ROBERTS: No, I didn't say that. Just the date.

CHETRY: Two minutes before the top of the hour. Yes, it's a Monday. Certainly feels like one around here.

Here is what we're working on this morning, stories that we'll be breaking down for you in the next 15 minutes.

An assistant principal from Queens, New York may be the city's first swine flu-related death. Officials say that he was hospitalized with the H1N1 virus and his school is now one of 11 closed in New York due to what the health commissioner is now calling a rising tide of flu.

ROBERTS: Republicans are putting the squeeze on House Speaker Nancy Pelosi. House Minority Leader John Boehner tells CNN Pelosi has to produce evidence that the CIA misled her and Congress about the use of waterboarding on suspected terrorists or she has to apologize for making the claim.

The big three-day weekend ahead. Driving up the price of gasoline, despite the bad economy, AAA says the national average now is $2.30 a gallon for regular. Prices are up 26 whole cents in just the past three weeks but there's still $1.80 off last summer's record.

CHETRY: Well, also new this morning, a 55-year-old assistant principal in Queens may be the city's first swine flu victim here in New York. New York City officials say that the man was hospitalized with the H1N1 and again if confirmed this would be the sixth death linked to the virus in the U.S.. The CDC says there are more than 4,700 confirmed or suspected cases in 46 states, plus D.C.

Senior medical correspondent Elizabeth Cohen joins us now from the CNN center. Now, what have you learned about this particular case, Elizabeth?

I think Elizabeth is having a little bit of trouble hearing us. Elizabeth, are you there? All right. We'll come back to Elizabeth.

ROBERTS: All right. Prove it or apologize. That demand comes from the House minority leader, and he's delivering it to the speaker of the House, Nancy Pelosi. Republican John Boehner says Pelosi better back up her claim that the CIA misled her and Congress about the use of waterboarding on terror suspects.

ROBERTS: And he's delivering it to the speaker of the House, Nancy Pelosi. Ohio Republican John Boehner said Pelosi better back up her claim that the CIA misled her and Congress about the use of waterboarding on terror suspects.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), MINORITY LEADER: Lying to the Congress of the United States is a crime, and if the speaker is accusing the CIA and other intelligence officials of lying or misleading the Congress, then she should come forward with evidence.

ROBERTS: Jim Acosta is live in Washington for us this morning.

Jim, do Republicans think that they're gaining some traction on the torture debate by going after Pelosi?

JIM ACOSTA, CNN CORRESPONDENT: I think they do, and Speaker Pelosi late Friday released a statement saying that she was really talking about the Bush administration misleading her, not really the CIA.

But if you listen to what she had to say that is clearly not the case, and that's not going far enough for Republicans, but Democrats in Washington now understand the dangers of investigating allegations of torture during the Bush administration.

Republicans have found a way to turn the issue against one of the most powerful Democrats in the country, House Speaker Nancy Pelosi.

(BEGIN VIDEOTAPE)

REP. NANCY PELOSI (D), SPEAKER OF THE HOUSE: I'm only speaking from my own experience, and we were told that it was not being used.

ACOSTA (voice-over): Ever since House Speaker Nancy Pelosi accused the CIA of lying to her about its use of harsh interrogation tactics during the Bush administration...

PELOSI: CIA was misleading. They mislead us all the time.

ACOSTA: ... Republicans have been all too eager to talk about torture.

SEN. MITCH MCCONNELL (R-KY), MINORITY LEADER: Well, we know there's a dispute about -- between the speaker and the CIA over what she knew and when she knew it.

NEWT GINGRICH, FORMER HOUSE SPEAKER: I don't see how she can serve as speaker if it turns out that she has lied about national security both to the House and to the country.

ACOSTA: Even some Democrats were saying the speaker misspoke.

JAMES CARVILLE, DEMOCRATIC STRATEGIST: I don't think Democrats want to be at war with the CIA. I love the speaker. She's a great family lady and everything else. I probably wouldn't have done that.

ACOSTA: Pelosi's comments prompted the CIA to release this document showing she and other members of Congress were notified about the agency's use of extreme methods on suspected terrorists. But one Democrat mentioned in the document, Bob Graham, says the CIA records are long. A leading Republican says Pelosi must prove her case.

BOEHNER: I think that she ought to either present the evidence or apologize. One or the other.

ACOSTA: But even as Republicans are trying to turn the torture tables on Democrats, liberals are reaching to turn them back.

KATRINA VANDEN HEUVEL, "THE NATION": The next big controversy is the mounting evidence showing the torture was used to extract evidence, to create a link, a false link, between Saddam Hussein and al Qaeda.

ACOSTA: Bush administration critics point to Lawrence Wilkerson, chief of staff to former Secretary of State Colin Powell. On the Web site, "The Washington Note," Wilkerson says in early 2002, harsh interrogation was not aimed at preempting another terrorist attack on the U.S., but discovering a smoking gun linking Iraq and al Qaeda, a charge Dick Cheney's daughter shot down.

LIZ CHENEY, FORMER VICE PRESIDENT DICK CHENEY'S DAUGHTER: I think that it's important for us to have all of the facts out. This was an important program. It saved American lives.

(END VIDEOTAPE)

ACOSTA: And as for Speaker Pelosi, Republicans acknowledge they don't have the votes to remove her but all of the finger pointing is renewing calls on Capitol Hill for an independent truth commission on torture, something the White House says it does not want. John?

ROBERTS: Yes. Obviously, they've got to hold a piece of thread. They want to pull it and see how far it goes.

Jim Acosta this morning. Jim...

ACOSTA: They're pulling.

ROBERTS: ... Thanks so much.

CHETRY: Also new this morning, a 55-year-old assistant principal in Queens may be New York City's first swine flu victim. City officials are saying he was hospitalized with the H1N1 virus, officials say. So, right now, we have our medical correspondent, Elizabeth Cohen, for us this morning in Atlanta. So, they say if confirmed, what do we know about this case so far, Elizabeth?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: What we know about this case so far is that Mitchell Wiener died yesterday at Flushing Hospital in Queens.

Last week, Michael Bloomberg, Mayor Michael Bloomberg had said that he had some other health problems in addition to having H1N1. Now if that is true then that seems to be the -- what's going on here with this flu, is that the people who die have underlying conditions.

So far, there have been three deaths in Texas, one in Arizona and one in Washington. All of those people had some form of an underlying condition, whether it was asthma or some other kind of lung disease.

And what's turning out to be true for swine flu is what's true for the regular seasonal flu that we see every year. And that is, is that the people who are at highest risk for dying have some kind of underlying condition. Often it's diabetes or some kind of cardiovascular disease. So in this way, H1N1 is very similar to the seasonal flu - Kiran.

CHETRY: So, first, it was the scare then people said, you know what, maybe it's less of a scare than we first thought and now we're hearing about more cases and potentially more deaths.

Where does it stand in terms how concerned we should be regarding swine flu?

COHEN: You know, I think in many ways it's difficult to say, Kiran, because this is a new virus that we've never seen before, so there are going to be twists and turns. Nobody has a crystal ball and can look and see what the future is.

But what is happening is that, again, this is a new virus. None of us has immunity to it. And so what they're seeing is that it's actually spreading more quickly than the regular seasonal flu.

So, I think that's important but it's also important to say that while it's spreading more quickly, most people who are getting it are actually getting just a mild form of the flu. Most people are not becoming severely ill.

CHETRY: Elizabeth Cohen for us in Atlanta, thanks.

COHEN: Thanks.

ROBERTS: And it's six minutes after the hour. It's time for our Monday political ticker.

President Obama stepping squarely into the middle of what may be this country's deepest religious and political divide, abortion. Speaking yesterday at Notre Dame University's graduation, the president challenged both sides to seek common ground. The president also spent time focusing on the graduates and the challenges that await them.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This generation, your generation is the one that must find a path back to prosperity and decide how we respond to a global economy that left millions behind even before the most recent crisis hit.

An economy where greed and short-term thinking were too often rewarded at the expense of fairness and diligence and honest day's work. Your generation.

(APPLAUSE)

Your generation must decide how to save God's creation from a changing climate that threatens to destroy it. Your generation must seek peace at a time when there are those who will stop at nothing to do us harm. And when weapons in the hands of a few can destroy the many.

And we must find a way to reconcile our ever-shrinking world with its ever-growing diversity. Diversity of thought, diversity of culture, and diversity of belief.

(END VIDEO CLIP)

ROBERTS: And coming up in less than 10 minutes' time, we're going to be talking with Tony Perkins, the president of the Family Research Council, about the divide over abortion taking place in the Catholic community.

President Obama at that speech, by the way, also mentioned the fact he didn't get an honorary degree from ASU during his commencement address. He did get one at Notre Dame, saying it was one for two for the season so far.

The "Weekend Update" anchor team reunited for "Saturday Night Live's" seasonal finale, and they didn't let ASU off the hook for snubbing President Obama.

(BEGIN VIDEO CLIP -- "SATURDAY NIGHT LIVE")

SETH MYERS, "SATURDAY NIGHT LIVE": Really, Arizona State? You didn't want to give an honorary degree to President Barack Obama. You do realize half the people you gave regular degrees to were wearing flip-flops and hiding flasks?

(LAUGHTER)

Don't get me wrong. You're a fine school. "Princeton Review" ranked you number 17 as a party school. As a school-school, you're 121st. If that bums you out, may I suggest you go party?

AMY POEHLER, "SATURDAY NIGHT LIVE": And really, Arizona State, you might be overvaluing the worth of your degree. Your acceptance rate is 95 percent. You're slightly more selective than the Burger King Kids' Club. I mean, really.

MYERS: Really.

POEHLER: What, were you worried that giving a degree to someone as underqualified as President Obama would tarnish the noble image of Sparky the sun devil?

(END VIDEO CLIP)

ROBERTS: He gets an honorary degree from Notre Dame and he doesn't get one from ASU?

CHETRY: There you go but...

ROBERTS: Go figure.

CHETRY: Still has that financial aid program named after him there, so.

ROBERTS: They're just going to get pummeled mercilessly, I think, for a while over this.

CHETRY: Well, it happens every year, and a dreadful economy couldn't even stop it. Gas prices creeping up again. In fact, probably up about a penny a day for the past 20 some days, just in time for the unofficial start of summer. So how high could they go?

Christine Romans joins us next.

Also the teenager behind virgin voters during the presidential election is back with a new passion. We're going live to his high school to see what he's trying to get young voters to do now.

It's nine minutes after the hour.

(COMMERCIAL BREAK)

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

A story still developing at this hour. The Los Angeles area shaken by a magnitude 4.7 earthquake last night. It's the largest to hit the area since last year. The rumbling lasted about 10 to 15 seconds. It was felt as far away as San Diego. It shattered some windows and shook lampposts, but the L.A. fire department says there are no reports of any major damage or any injuries.

Well, smoking may be riskier now than it was decades ago. In fact, there's an important new study saying cigarette smoke today in the United States may double the risk of lung cancer compared to the ones people smoked 40 years ago because of changes in the way that cigarettes are manufactured and designed.

Well, a way to solve their problems and also to listen to yours. The bad economy reportedly has many people look to bartending for a steady paycheck plus tips. Many bartending schools say their business is good, and the graduates are making as much as 500 bucks on Friday and Saturday nights.

ROBERTS: People aren't giving up drinking, that's for sure.

CHETRY: That's right.

ROBERTS: You might have noticed that even with the state of the economy, the price of gasoline has been going up recently. It's up a whole quarter over just a couple of weeks ago.

Our Christine Romans is "Minding Your Business" this morning. She joins us now to tell us why.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, you know, the last time we saw gas prices jump this far this quickly it was last year. And remember, prices went to $4 in some parts of the country. So, that's why so many of you are concerned about this spike in gas prices. We're looking at $2.31 a gallon. Just a month ago they were $2.06.

Now look at a year ago. $3.79 . So it's fresh in our memory just how bad those gas prices were last year. So, you're forgiven for being concerned here. But what I can tell you is that many of the experts, and including the Department of Energy, say that we've probably seen the bulk of this move.

The DOE actually says that $2.30 should be the peak for the summer. We're at $2.31 right now, so we're probably right there, unless of course they're all wrong and just going to keep creeping higher.

Why are they going up? We're not driving more. Demand is not up, but oil prices are moving higher because in the oil markets, there is the bet happening that the economy is going to get better. And if the economy gets better there is going to be more demand for oil and so those oil prices are rising.

There are also some other reasons, some reformulation or seasonal reformulations and stuff for gasoline but all of this is why these prices are going up.

ROBERTS: So, is this because we head in, I guess, up until about a week ago, we had the idea going hey, maybe we've turned the corner, and then we find out that somebody prayed woebegone on all those green chutes out there and things aren't looking as good as they were. So I wonder if oil would go back down again.

ROMANS: And that could very well happen, you know. But we have seen oil prices moving higher steadily on the idea that the economy is getting a little better or will get better in the future and that's why you've seen these prices go up.

One thing in Phoenix, they're paying about $1.9 on average and in Chicago, they're paying $2.63 so a little more expensive to drive on that weekend road trip in Chicago than it is in Phoenix. It's different where you live. This is the one thing in your economy that you feel the most frequently. Pretty much food and gas. This is why you're so upset, this is why we're getting so much feedback from you. It's because this is what you're paying for three days, four days, five days.

CHETRY: Right.

ROMANS: You can feel it when it's up a few pennies.

CHETRY: All right. Well, it's time now for "Romans' Numeral" and this is something that we're starting new hear on AMERICAN MORNING every day. Christine gives us a number that's driving the story about your money today.

So, Christine, what's today's "Romans' Numeral."

ROMANS: Well, this is the story driving your money today, Kiran, $37. Wow. This could not have been more...

CHETRY: You looked at my bank account before the show?

ROMANS: Yes, exactly. Yes, that's your overdraft you see there for your mortgage payment. No, 37 bucks. This is the cost of driving from New York to Buffalo in a Town and Country.

(LAUGHTER)

CHETRY: Very funny.

ROMANS: And back. Not Buffalo. Sorry, New York to Baltimore. In case you're going someplace for the weekend, take the kiddies someplace.

CHETRY: Well, you're not counting all the E-ZPass, the toll...

ROMANS: And I'm counting the Quickly (ph), the Happy Meals, or anything like that.

CHETRY: Exactly.

ROMANS: A year ago that was about $61or $62, that trip. So, everybody, I mean, I hate to be -- I'm the bearer of bad news around here, but it is still a lot cheaper to go someplace for the summer.

ROBERTS: So, you're saying hit the road on Memorial Day? Is that what you're saying?

ROMANS: I'm saying, you know, drive safe and maybe, you know, the economy has been terrible for more than a year. Let's go and have a nice little vacation and celebrate our families. That's what I'm saying.

ROBERTS: There you go. I'm digging that. All right. Thanks, Christine.

CHETRY: All right. Thanks, Christine. ROBERTS: Jordan's king says it's a meeting that could decide the future of the Middle East. President Obama welcoming Israel's new prime minister to Washington today. The two are split over a two- state solution of Israel and the Palestine state co-existing side by side. Will they see eye to eye today? We're live at the White House with all of that.

And President Obama wades into the debate over abortion rights during a commencement address at Notre Dame. In a moment we'll speak with Tony Perkins, president of the Family Research Council, about why he thinks the university's decision to invite the president drives a wedge within the Catholic community.

Sixteen minutes now after the hour.

(COMMERCIAL BREAK)

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

President Obama wading into one of the most polarizing issues in American politics and culture, abortion. It's an issue that does not lend itself to compromise.

During his commencement address at Notre Dame University yesterday, the president acknowledged the controversy that his honorary degree and even his there had generated. He also joked about being denied one of these honorary degrees last week at Arizona State. Listen.

(BEGIN VIDEO CLIP)

OBAMA: I'm grateful to all of you for allowing me to be a part of your graduation, and I also want to thank you for the honorary degree that I received. I know it has not been without controversy.

I don't know if you're aware of this, but these honorary degrees are apparently pretty hard to come by. So far, I'm only one for two.

(END VIDEO CLIP)

CHETRY: All right. Well, there you see it. The divide that we saw at Notre Dame mirrors a debate that's been taking place across the Catholic community. And joining me now to talk more about this is Tony Perkins. He's president of the Family Research Council.

Thanks for being with us this morning.

TONY PERKINS, PRESIDENT, FAMILY RESEARCH COUNCIL: Good morning, Kiran.

CHETRY: One of the things that President Obama did acknowledge is that you're not necessarily going to come to a consensus in an issue where people feel as strongly as they do about abortion.

Do you think that -- because you were against his initial decision for Notre dame to invite him and give him an honorary degree. Do you think that it at least sparks some dialogue about this issue?

PERKINS: Well, first off, I think -- you know, if the president accepting that invitation, there's nothing with that. I mean, if I were him, and I were invited, I would go. The issue is with Notre Dame, and -- you know, the premier Catholic institution issuing an invitation to a president who clearly stands opposing them on this fundamental issue of life.

You know the president, it was really the first time the president acknowledged that it's unlikely that we'll reach a consensus on this issue. You know his rhetoric -- I mean, he's a very good communicator. He speaks well and rhetorically the president, I think, did very well yesterday.

But that cannot make up for his extreme record on this issue. You have to realize he is in the extreme minority of Americans where he believes that not only abortion should be legal at every stage -- in fact, he supported partial birth, he was against the Born Alive Infant Protection Act -- but he wants Americans to fund abortion and, clearly, we have almost three-quarters of Americans who are opposed to taxpayer funding an abortion.

CHETRY: He did speak, though, about wanting to reduce the overall number of abortions that take place to provide more support for people who want to adopt and also for women who are dealing with carrying their children to term that didn't plan on being pregnant. Isn't that at least some area of consensus?

PERKINS: Well, that was a great message to bring to that crowd because the pro-life community, the Catholic community, in particular, has been working in that area for decades to help unwed mothers, to work in crisis pregnancy centers.

I think one of the things he can do if he really wants to do that and find common ground is back off of his charitable tax deduction removal in the tax policy. Because a lot of those institutions are funded with charitable contributions.

See, I think there's a difference here in what that really means by reducing. The terms they've used most of the time is reducing the need for abortion. We would argue there is no need for abortion. That's like saying we should reduce the need for child abuse.

There's no need for that. It's something we should address in our policies to promote the sanctity of life.

CHETRY: Well, as we've acknowledged, this is an issue where people have their opinions and they're strong. And there's also a divide, though, among Catholics in general. 60 percent of those at Notre Dame were not opposed to him speaking there. And there are many prominent pro-choice Catholics as well. So is this a debate for the community itself?

PERKINS: Well, I think there's been an ongoing debate within the Catholic Church, within the Protestant church, you know, prominent these issues are. But when you look at the overall structure of the Catholic Church, I mean, the Vatican expressed concern about the president going there to speak. Seventy-two bishops expressed opposition to this.

There is this ongoing debate within the Christian community over these issues, but those who are more -- most orthodox in their beliefs put a very high priority on the sanctity of the human of life.

CHETRY: I want to ask you about the other really big issue, stem cell research. He reversed the former president's restrictions on stem cell research, saying that this administration will support scientists who pursue this research. And this is what he said about stem cell research during his Notre Dame address.

(BEGIN VIDEO CLIP)

OBAMA: Those who speak out against stem cell research may be rooted in an admirable conviction about the sacredness of life, but so are the parents of a child with juvenile diabetes who are convinced that their son's or daughter's hardships might be relieved.

(END VIDEO CLIP)

CHETRY: I mean, you took issue because you said he basically lumped support for stem cell research in general, with support for embryonic stem cell research.

PERKINS: Absolutely. And thanks for asking that question, Kiran, because it is something that has done very frequently and that is lumping stem cell research into one. And we're supporters of stem cell research. Adult stem cell research which has led to over 70 different medical conditions being successfully treated.

What he was making reference to is opposition to embryonic stem cell research, which has been going on for a couple of decades and has not led to a successful treatment of any medical condition.

We believe we should pursue science with taxpayer dollars that is both ethical and effective. Embryonic stem cell has not. And I think he's doing a disservice by lumping opposition of embryonic stem cell research into this overall opposition of science.

CHETRY: Those who support it are saying that we haven't had enough time to fully explore it.

PERKINS: We've had a lot of time.

CHETRY: But, again, these are two extremely controversial issues, and the president waded into both of these in his appearance this weekend at Notre Dame.

It was great to get your point of view, Tony Perkins. Thanks so much for being with us this morning.

PERKINS: Thanks, Kiran.

CHETRY: John? ROBERTS: A candid admission from America's top military officer. Pakistan appears to be ramping up its nuclear weapons program at the same time it battles Taliban militants in part of the country. We'll head to the Pentagon to break it all down for you and tell you what it means.

United for peace, divided over how to achieve it. Whether President Obama and Israeli's new nonsense prime minister can find common ground at the White House today.

It's 24 1/2 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Good morning, Mr. President. Here's your official weather report. Cloudy and 52 degrees in Washington right now. Later on, partly cloudy with a high of just 64. Going to be cool there in the nation's capital.

Welcome back to the Most News in the Morning.

The future of the Middle East could rest on a relationship being built today. In just a few hours, President Obama sits down with Israeli prime minister Benjamin Netanyahu. Right now the two leaders don't necessarily see eye to eye, particularly on this issue of a two- state solution.

Our foreign affairs correspondent Jill Dougherty is live in Washington.

Is the White House holding out any hope this morning, Jill, that they can make some progress on this issue?

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Well, you know, John, it's an important meeting because, after all, Benjamin Netanyahu is the new prime minister. He is key to what is going on in the Middle East and key to whether or not they can actually bring about what the Obama administration wants, which is a comprehensive peace.

But there is several sticking points, and they are very serious. And one, of course, is the idea of the two-state solution. Two states, Israel, Palestinians, living side by side in peace.

Now, that is a cornerstone of the Obama foreign policy. However, Benjamin Netanyahu has not committed to the two-state solution. So, that's one big issue. Another one would be settlements. Those Israel settlements in areas that -- in Palestinian areas and Benjamin Netanyahu who has made it clear that he wants some natural growth in those areas.

But one issue that Netanyahu wants to talk about, and President Obama will, but it's really very important to Netanyahu, and that is Iran and the nuclear threat from Iran. That raises the issue of a potential preemptive strike by Israel on Iran so this is very serious issues. ROBERTS: You know, Jill, when we talk about diplomacy, it's kind of like an iceberg. You know you see the very tip of it and that's the very public meetings but under the surface there's been all this groundwork that's been laid prior to the two leaders coming together.

How soon might we see a policy take shape based on that groundwork that's been done so far?

DOUGHERTY: Well, the Obama administration certainly is working on that. And you know, this is only one meeting. We've actually got to look at this as two weeks of meetings. Because next week, we will have the Egyptian president Hosni Mubarak, and we'll also have Palestinian leader Mahmoud Abbas, so there is a series of meetings and this policy is moving along.

What they are trying to do is put together the comprehensive policy. And don't forget that June 4th you have an extremely important speech by the president in Cairo to the Muslim world.

ROBERTS: Right. All right. We'll be watching all of this very closely. Jill Dougherty for us this morning from Washington. Jill, thanks so much.

CHETRY: All right. Twenty-nine minutes past the hour. We took our top stories now.

Pakistan stepping up efforts to drive the Taliban out of the country right now. The "Associated Press" is reporting that Pakistani forces two towns held by militants. Taliban vowed to resist until the last breath. Pakistan says that it's killed more than a thousand militants since fighting began in full force earlier this month.

President Obama's budget director says it looks like we've turned the corner on the economy. Peter Orszag on CNN's "STATE OF THE UNION" with John King yesterday.

(BEGIN VIDEO CLIP)

JOHN KING, ANCHOR, CNN'S "STATE OF THE UNION": The Americans look at these numbers, I assume the impression is we have not hit bottom yet.

PETER ORSZAG, WHITE HOUSE BUDGET DIRECTOR: Well, I think what's happened is the free-fall in the economy seems to have stopped and we're -- I guess the analogy is there are some glimmers of sun shining through the trees, but we're not out of the woods yet. We do have more work ahead.

(END VIDEO CLIP)

CHETRY: Orszag also said that the work ahead includes passing the president's health care plan despite the economic crisis.

Otherwise healthy teens may have the ears of aging adults, all from blasting their iPods all the time. New research from Children's Hospital of Boston says having those ear buds shooting music directly into your inner ear can eventually make them wilt and die. Well, the author of the study recommends that iPod users of any age listen to - I guess they are referring to ear drums wilting and dying, more than 90 minutes a day at 80 percent volume capacity.

Well, also new this morning, new concerns about Pakistan's nuclear weapons arsenal. America's top military officer, Admiral Mike Mullen, taking members of Congress - talking to members of Congress and bluntly acknowledging for the first time that Pakistan appears to be ramping up its nuclear program.

CNN's Barbara Starr is live at the Pentagon. Barbara, certainly troubling news, especially at a time when Pakistan is continuing to try to keep Taliban militants from tightening their grip on parts of the country.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Absolutely, Kiran. That's the real priority for the United States, keeping the Taliban at bay. But it looks like Pakistan increasingly may have another priority. Listen to what Admiral Mullen told Congress just last week.

(BEGIN VIDEO CLIP)

SEN. JIM WEBB (D), VIRGINIA: The questions that I have really relate to Pakistan. I have seen written reports in the general news area, but from reputable commentators that Pakistan is, at the moment, increasing its nuclear program. That it may be actually adding on to the weapon systems and warheads. Do you have any evidence of that?

ADM. MIKE MULLEN, CHAIRMAN, JOINT CHIEFS OF STAFF: Yes. That strikes me as something that we should be approaching with enormous concern.

(END VIDEO CLIP)

STARR: Yes, that is all the chairman of the Joint Chiefs of Staff would publicly say, Kiran. Yes, there is evidence that Pakistan is expanding its nuclear program. We poked around a little bit and talked to some experts on the matter, and here is what they tell us.

If you look at the map, there are two places of vast concern to the United States. One is the location called Kahuta. The U.S. believes Pakistan may now have brought additional gas centrifuge technology so that it can make more highly enriched uranium at Kahuta. The other location, Khushab. The latest satellite imagery from a company called Digital Globe now shows expanded plutonium production reactor building at Khushab.

What U.S. officials say is there is evidence - you know, they're not on the ground. They're not at these sites - but all of this now add to Pakistan spending money to expand its nuclear arsenal. More nuclear fuel, more nuclear weapons. Bottom line, how are they paying for it? A lot of concern in Congress that it may be U.S. aid money, aid for the war on terror that's getting into this whole different program of expanding their nuclear weapons - Kiran. CHETRY: Barbara Starr for us this morning at the Pentagon, thanks.

JOHN ROBERTS, CNN ANCHOR: The 17-year-old who made national news for creating a virgin voters campaign during the presidential election is at it again. We'll go live to his high school, where he is hoping to build up interest in another big race. It's 33 1/2 minutes after the hour.

(COMMERCIAL BREAK)

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ROBERTS: Good morning, Miami, where it's partly cloudy and 81 degrees. Look at that beautiful sky. Later on today, thunderstorms. The high will remain 81. That's the interesting thing about Florida this time of year. The high and the low are usually within about a degree or two of each other.

We first introduced you to Noah Gray in the fall, when he made it his mission to talk to young people about voting in the presidential election. Just 16 years of age, Noah focused on first-time or virgin voters. Now at the ripe old age of 17, he's at it again with his eye on another big race. He caught up with Florida Governor Charlie Crist on Friday. He joins us now from his classroom at Palmetto Senior High School in Pinecrest, Florida via Skype.

Noah, it's great to see you this morning. How are you doing?

NOAH GRAY, FOUNDER, VIRGINVOTING.COM: I'm doing great. Great to see you again, John. Thanks for having me on.

ROBERTS: So listen, you put together a little piece of your visit with the Governor Crist at the middle school there at Palmetto. Why don't we take a listen to that and look at that, and we'll come back and talk about the issues.

GRAY: Sounds great.

(BEGIN VIDEO CLIP)

GRAY (voice-over): I caught up with Florida Governor Charlie Crist last week when he visited a local middle school and asked him...

(on camera): What could you do in the U.S. Senate to help Florida?

GOV. CHARLIE CRIST (R), FLORIDA: Well, hopefully, continue to get good funding like we've gotten. We got a stimulus package that we just found out about earlier this week that brings over $2.7 billion to Florida.

GRAY (voice-over): And then I spoke with some young people to see what they thought about Charlie Crist.

UNIDENTIFIED MALE: I don't know that much about him. UNIDENTIFIED MALE: I think he's been a pretty good governor.

UNIDENTIFIED MALE: I feel like he's like any other politician.

UNIDENTIFIED MALE: I think he's Republican. I'm not sure.

UNIDENTIFIED FEMALE: I've heard of him, but I don't really know too much about him.

UNIDENTIFIED MALE: He ran as a republican governor in Florida and in a state that just went democratic. I really don't think he's going to win.

UNIDENTIFIED MALE: I mean, for me, I think it would be a big important role to make sure that a lot of the policies that Obama wants to press are going to be reviewed by a Republican senator and that he goes back to his conservative ideals that he seems to have forgotten a bit as governor.

GRAY (on camera): Do you think he is the face of the future of the Republican Party?

UNIDENTIFIED MALE: Well, I mean, what is the face of the Republican Party these days? I mean, they are trying to like revamp what they're doing. So, and I don't think he would be the right person to choose.

(END VIDEO CLIP)

ROBERTS: All right. Noah, you got a bunch of different opinions there. Some people knew about him. Some people didn't really know him at all. Some people seemed interested, and some didn't. What does it say about young voters? Is it too early to get engaged in a Senate campaign that's not going to happen until 2010, or do they just not care?

GRAY: Well, you know, John, that's an interesting question. I think it might be too early right now. It reminds you back in 2007, when I first start speaking with young voters before the presidential primaries, they didn't seem to either know or care what was going on until it started getting further down the road. So, I'm hoping that as we get closer to the midterm elections, us young people are going to start to care a little bit more and start to gather that information.

ROBERTS: You know, one of the things that Governor Crist told you about was the stimulus package and how he thinks it's a good thing to bring some money into Florida. He supported the president's stimulus package, which certainly didn't win favor among conservatives there in Florida.

In fact, when it comes to the Senate race in the primary, they like to run a fellow named Marco Rubio, a former state House speaker, against him. What are young people feeling about that? Do they think that he is conservative enough? Are they upset that he supported the president's stimulus package? GRAY: Well, some young conservatives are saying, well, he does support this. He did appear on stage with the president. I don't think that's going to help him is what they're saying. A lot of other young people are saying hey, I think he might be a good new young face for the republican party.

A good-looking politician can speak very well, sounds very appealing to a lot of young people. But there is also those very staunch conservatives that are saying, you know, he's not conservative enough for me, and they might choose Marco Rubio as opposed to Charlie Crist.

ROBERTS: Right.

What about in terms of issues, too? During the presidential campaign, when he was supporting John McCain, he talked a lot about offshore drilling, obviously talked a lot about the economy, but when it comes down to the state level, when you're running a Senate race, what are the issues that are really important to folks there in Florida?

GRAY: Well, speaking to the young people down here, the number one issue, I'd say, is education especially since we're experiencing tremendous budget cuts. And as students, we are really facing some very significant budget cuts and also taxes. But it's a delicate issue because some people are saying, well, I don't like taxes, you shouldn't have taxes but then again, how do we get more money for education since we don't have a federal income tax down here.

ROBERTS: Yes, I know that the fact that you don't have state income taxes draws a lot of people to Florida but can create problems in and of itself. Noah Gray, good to see you this morning. Thanks very much for being with us, buddy.

GRAY: Thank you very much, John. Take care.

ROBERTS: Take care. You, too. Kiran.

CHETRY: Well, the latest on the filly who left the boys in the dust. Will Rachel Alexandra's owner let her run in the Belmont? It's 41 minutes past the hour.

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CHETRY: A shot of Columbus Circle this morning. It's still cloudy out there, 50 degrees right now. A little bit later more clouds but maybe some peeks of sunlight by the afternoon. 62 for a high in the Big Apple today.

Well, lady is a champ. The filly Rachel Alexandra staked her claim as the best three-year-old in the land on Saturday. She beat the boys in the Preakness stakes and now everyone is wondering if there will be a battle of the sexes part two next month at the Belmont Stakes. Richard Roth now with the prospects of a rematch that a lot of people would like to see. Hey, Richard.

RICHARD ROTH, CNN CORRESPONDENT: Good morning.

You know that Columbus Circle would make a good racetrack. I was just thinking that.

CHETRY: You're right. It is a racetrack.

ROTH: For some of those cabs zooming through.

ROBERTS: Chariot races.

ROTH: That's right, John. If you weren't watching this race then you should seriously consider making some life adjustments. Rachel Alexandra, New York wants you.

(BEGIN VIDEOTAPE)

ANNOUNCER: Rachel Alexandra is in front with one (INAUDIBLE) to go.

ROTH (voice-over): The race lived up to the hype. Super filly Rachel Alexandra being chased by the boys.

ANNOUNCER: The filly is trying to hold on. She's clear and free. Here's the winner and the filly did it! Rachel Alexandra.

ROTH: The Hollywood-style ending included the filly holding off on rushing Kentucky Derby upset winner Mine That Bird.

UNIDENTIFIED MALE: She puts you in the game early, and just keeps running, keeps running. You don't know how good she is.

ROTH: No filly has won the Preakness since 1924.

MIKE BATTAGLIA, RACING ANALYST: You have to be a spectacular filly to jump up and beat the colts, specially in one of the classics. I think she stamped herself as one of the all-time greats when she won the Preakness.

ROTH: No sooner was Rachel Alexandra across the wire when the question came, would she run in the Belmont Stakes against Mine That Bird in the third and longest leg of America's Triple Crown series?

JESS JACKSON, CO-OWNER, RACHEL ALEXANDRA: We have to evaluate that against the other alternatives for her own health and her own career but yes, we will seriously consider the Belmont.

ROTH: However Rachel Alexandra's trainers seem not so anxious to run and will wait to see how the horse feels in coming days.

BATTAGLIA: It was a hard race on her. To come back in three weeks, I'm not sure they're going to do it. If they do, she really bounces and she'd have to really show them something, that will be one heck of a race.

ROTH: Race fans had advice for the horse's connections.

UNIDENTIFIED FEMALE: There was a lot of controversy around it and not wanting her to be in the race, so the fact she got in and showed them all what she can do is amazing. I think Rachel Alexandra is going to win the Belmont.

UNIDENTIFIED FEMALE: Girl horses rock. They do. Girl horses are better than guy horses. Why not? It's got to see who's better. Whoa, girl horses!

ROTH: Rachel Alexandra arrived in Louisville, Kentucky on Sunday and will now await along with her fans, a decision by the owners. More suspense from the racing world which produced a battle of the sexes for the ages.

(END VIDEOTAPE)

ROTH: You can bet there are people at Belmont Park on Long Island right now, on their knees, praying that Rachel Alexandra is entered in the Belmont. There will be more than 100,000 people there on June 6th, guaranteed.

CHETRY: All right. You said that the Preakness actually had less people than they thought?

ROTH: That's right, 77,000 because they banned beer in the infield and people wanting to bring in their free beer, and they boycotted the race.

ROBERTS: So, as you mentioned, Belmont is the longest, it's a mile and a half. A mile and 3/16 at Pimlico, and you see the kick that Mine That Bird has got at the end of the line there.

ROTH: They've always liked the Belmont. They've always aimed for that but he is a one-run horse. And he needs a good pace, and he needs something to run at and you just - just because he comes from behind, it's not guaranteed. The race is long, he is going to be flying at the finish. You just don't know.

ROBERTS: Yes, you don't know that when you saw him coming up on her like that at the very end, an extra three furlongs. Would she get ahead or would she hold him off?

ROTH: I mean, Calvin Borell thought he'd never would have passed her. Remember, he has a chance at the triple crown, the jockey. His personal triple crown that he switched off the derby winner. First time ever.

ROBERTS: All right. Richard, thanks so much for that.

Happening right now, two astronauts aboard the shuttle Atlantis has just started this mission's fifth and final space walk to fix the Hubble telescope. On the agenda today, swapping out batteries and they will also replace a sensor, put in some installation. The insulation should have been done yesterday but after eight hours outside the shuttle, astronauts had to put that off because of a stubborn bolt that just wouldn't come loose. They had to improvise, use a little strength to get that out of there. Hubble is going to be release from the shuttle's robotic arm and return to orbit tomorrow.

Chrysler's pain could be your gain. How to get a brand-new car below cost? Forty-nine minutes now after the hour.

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ROBERTS: It's news that no parent ever wants to hear, that their child has cancer. Now, the parents of one Minnesota boy are being told by a court how to have their son treated. Our senior medical correspondent Elizabeth Cohen is tracking this story for us from Atlanta this morning. What's this all about, Elizabeth?

COHEN: John, good morning. What this is is a classic battle between the rights of parents and the obligations of courts to protect children.

(BEGIN VIDEOTAPE)

COHEN (voice-over): If it were up to Daniel Hauser's parents, the cancer spreading through his body would not be treated with chemotherapy or radiation. Thirteen-year-old Daniel did get one round of chemo, which doctors say was working well against his Hodgkin's lymphoma, but his parents said they wanted no more.

Colleen and Anthony Hauser want alternative treatments for their son. Treatments recommended by this organization called the Nemenhah Band, a self-described Native American group advocating what they call natural healing.

COLLEEN HAUSER, MOTHER: We're a simple, honest family. We're not out to harm anybody. We never - this is just our way of life and why people want to infringe on it, I don't know.

COHEN: Friday, a Minnesota judge ordered Daniel Hauser to get care from an oncologist saying that Daniel had been medically neglected. Oncologists typically have a 90 percent success rate against Daniel's type of cancer.

In a statement, an attorney for Daniel's parents said they disagreed with the ruling. "The Hausers believed that the injection of chemotherapy into Danny Hauser amounts to an assault upon his body, and torture when it occurs over a long period of time."

The Hausers said they prefer to treat their son with a natural diet, sweat lodges and other alternative remedies. But prosecutors in Minnesota argued that without chemo and radiation, Daniel would almost certainly die.

JAMES OLSON, ATTORNEY: The compelling interest here is the protection and welfare of children.

COHEN: Medical ethicists say parents generally do have a legal right to make decisions for their children but there is a limit.

ART CAPLAN, ETHICIST: Well the presumption is that parents do have the right to control the medical care of their children but they don't have that right or it can be, if will be, curtailed if they are doing something that really puts the life of their child at risk.

COHEN: The family's attorney said Daniel Hauser is abiding by the court order.

(END VIDEOTAPE)

COHEN: The Hausers have until tomorrow to select an oncologist for their son -- John.

ROBERTS: I mean, when you look at the whole context of this, Hodgkin's lymphoma has a pretty high cure rate.

COHEN: It does have a high cure rate. Oncologists are about 90 percent successful at getting -- curing or getting rid of Hodgkin's lymphoma. And that's why this decision came down the way it did. The court said, look, there is a treatment. You got to take it.

ROBERTS: All right. Elizabeth Cohen for us this morning. Elizabeth, thanks so much. We'll keep watching that story too.

COHEN: Thanks.

CHETRY: Well, for the next three weeks, hundreds of Chrysler dealerships across the country will close their doors for good. So, what happens to the thousands of new cars already on their lot? How good timing and a little haggling could land you a deal below cost. It's 54 minutes past the hour.

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CHETRY: Fifty-six minutes past the hour. You can sit down now. Sorry.

New York City is cloudy and 50 degrees. A little bit later we will be getting some sun hopefully. Sixty-two, that's the best we can expect weatherwise lately here in the Northeast.

ROBERTS: This has been sort of the year without a spring in New York City.

CHETRY: Yes. It's going to be right from this to 90 degrees and 98 percent humidity.

ROBERTS: Hang in there. Because it might get up as high as 80 degrees later on this week, according to Rob Marciano.

CHETRY: There you go.

ROBERTS: Something to look forward to. CHETRY: How about it?

Well, money is tight these days. Most Americans are putting off purchasing big-ticket items until there's more clarity on where the economy is headed but there may never be a better time to get a pretty good deal. CNN personal finance editor, sorry, Gerri Willis is here. We're talking about...

ROBERTS: She is already like thinking about the new van that she is going to buy.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: I think so.

CHETRY: Yes, right. We are talking about whether or not the time is right to buy a new car especially when you hear about...

WILLIS: Yes.

CHETRY: OK. Tell us. Tell us what to do.

WILLLIS: OK. Well, here is the deal, all right? Even if you're not going to buy a Chrysler or a GM, which we have been talking a lot about this morning about how they are going to be so cheap and they are trying to unload this inventory. You can still get a great deal on a car below sticker, below invoice, even below dealer cost, that is.

Now, how do we know this? Truevalue.com, they ran a survey. They found that 21 percent of '09 models sold less than what dealers pay. That was last year. This coming year it's expected to be 25 percent. So, there are big deals to be had out there. How do you take advantage of them? Well, you've got to do some research.

Check out the true value of the car you want to buy at edmunds.com. They take together what others pay for these cars, vehicle inventories, dealer incentives, sales conditions. They even think about the economy and come up with a number that you should be prepared to ask for to pay for that car. You can get a great deal right now but you have to negotiate well. You have to be prepared to walk away.

And speaking of industries that have gotten a lot of our tax dollars, let's talk about banks for a second and how you can cut your costs there. You don't want to give banks, absolutely, another penny of your dollar. You want to fight the man out there. Here is how to do it. Avoid those out of network fees. These are big fees that consumers pay when they use an ATM out of network. It adds up. It could be $1, $2, even $3 now. Overdraft fees.

These are particularly pernicious right now. Because people end up paying them over and over again if you use a debit card and maybe a single day use your debit card two or three times and before you know it, you've racked up a hundred dollars in overdraft fees. You can always vote with your feet and go to a credit union. That's a great idea, too, and you can reduce your costs that way.

CHETRY: All right. Well, tell us about haggling. You're good at it. I know from your experiences in the retail sector.

WILLIS: ... in this building. Right.

CHETRY: Some people say, you know, they don't really know how to do it correctly.

WILLIS: You should try it all the time, every time you buy something. That's my belief. Look. "Consumer Reports" found that two-thirds of consumers haggle. The way to do it - you have to be patient, be nice, avoid an audience and try to haggle when there isn't a lot of people in the store, in the morning, in the afternoon.

And another thing to do, a lot of people don't know, guys offer to pay cash. This helps the merchant avoid the transaction fee that is that credit card operators charge. It can be two percent to eight percent of the purchase price. So if you pay cash you're giving them a little advantage there.

ROBERTS: Yes, as much as four percent on some cards, right?

WILLIS: Two to eight. You can go as high as eight. So that's a lot of dough for them so they definitely want to avoid those costs. If you pay cash, you're saving them money. They have a little room to give you a better deal.

CHETRY: Gerri even haggles up in the cafeteria. I'm not paying that for a Diet Coke. No way.

WILLIS: Famous last words "I don't want to pay that."

ROBERTS: All right. Thanks, Gerri. Some good tips this morning.

WILLIS: My pleasure.

ROBERTS: That's going to wrap it up for us. Thanks so much for joining us on this AMERICAN MORNING. We'll see you back here bright and early again tomorrow.

CHETRY: We sure will. Right now, here's CNN NEWSROOM with Heidi Collins.