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Lou Dobbs Tonight

The Battle Over Obama's Health Care Plan; North Korea Threatens U.S.; Sotomayor's Confirmation Hearings to Begin July 13th

Aired June 09, 2009 - 19:00   ET

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


LOU DOBBS, CNN ANCHOR: Good evening, everybody. The political battle over the president's sweeping health care plan entering a new and perhaps decisive phase. Democrats trying to push through health care legislation in two months, legislation that could lead to higher taxes for tens of millions of Americans.

Also tonight, North Korea stepping up its threats against the United States, now saying it could use nuclear weapons in what it calls a merciless offensive. Those threats coming just days after the president declared he's considering tough new measures against North Korea.

And confirmation hearings for Supreme Court nominee, Judge Sonia Sotomayor, to begin now on the 13th of July. We'll examine charges that the judge puts group and identity politics ahead of the law. That's the subject of our face-off debate tonight.

And Venezuela's leftist strong man, Hugo Chavez, comparing himself to President Obama. We'll tell you all about that.

And we begin with a showdown tonight over health care. Bigger government and higher taxes. Congressional Democrats today launching a new political offensive trying to sell sweeping health care reform to the American people. And they will begin committee work on overhauling the health care system next week.

President Obama, for his part, wants to sign health care legislation by the fall. Republicans accuse the Democratic Party of trying to force through the largest expansion of entitlement spending in decades with virtually no debate. Those Republicans say Democrats want nothing less than a federal government takeover of our entire health care system.

Brianna Keilar reports from Capitol Hill.

(BEGIN VIDEOTAPE)

BRIANNA KEILAR, CNN CORRESPONDENT (voice-over): House Democrats filed into a room in the basement of the Capitol to be briefed by committee chairman and Democratic leaders orchestrating an overhaul of the nation's health care system. At the heart of their proposal, a requirement that all Americans carry health insurance and employers help pay for it and a government run health insurance option to compete with private plans. REP. CHRIS VAN HOLLEN (D), MARYLAND: If you like the health insurance you've got you can keep it. No one is going to try and take it away. But if you don't like what you've got or you don't have any you're going to be given these different options including the public option to try and create competition.

KEILAR: But Democrats face competing demands from within their ranks. Conservative Democrats insist government-run health insurance should only be available as a last resort if private plans don't meet certain benchmarks, but others insist there must be a public option. Among them, leading African-American, Hispanic, and Asian American members of Congress who also want to address the health care gap between whites and minorities.

REP. DIANE WATSON (D), CALIFORNIA: Major hospitals in south central closed down. Now people have to go a dangerously 18 minutes more away from that hospital for emergency care. These are some of the things we tend to set up as objectives to reach the goal of comprehensive health care for all Americans.

KEILAR: And then there's the issue of how to raise over $1 trillion the plan is expected to cost. One idea, taxing insurance benefits provided by employers, is a poison pill for members like Jerry Connolly, a freshman Democrat in a competitive district.

REP. GERALD CONNOLLY (D), VIRGINIA: Those health benefits are very important to my constituents. And I don't think they'd welcome seeing those benefits somehow reduced with -- by taxing them or affected negatively by taxing them.

(END VIDEOTAPE)

KEILAR: Keeping the support of rank and file members like Congressman Connolly is key for Democratic leaders because most Republicans, they say, that not only do they oppose an insurance mandate, they also oppose any type of government-run insurance plan saying, Lou, that it would force private insurers out of the market.

DOBBS: Brianna, thank you. Brianna Keilar from Capitol Hill.

Senator Ted Kennedy, who's been pushing health care reform for decades, tonight issued his own legislation, including a requirement for Americans to obtain health insurance or face penalties. For now Senator Kennedy will not be able to attend hearings of the Senate Health Committee, a committee he chairs, because of his battle against brain cancer.

The Obama administration tonight facing rising pressure to say whether or not it wants to tax Americans' health care benefits to pay for health care reform. The White House has not ruled out the proposition. During the presidential campaign, however, then senator Obama strongly criticized Senator McCain for proposing exactly that, a tax on health benefits.

(BEGIN VIDEO CLIP) BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Senator McCain for the first time is going to be taxing the health care benefits that you have from your employer, and this is your plan, John. For the first time in history, you'll be taxing people's health care benefits.

(END VIDEO CLIP)

DOBBS: And tonight White House officials say that President Obama would prefer to fund his health care proposals with cuts in future Medicare spending and tax increases on wealthy Americans.

President Obama today made a new effort to convince skeptics that his administration will try to control soaring federal budget deficits and out of control federal spending. President Obama said he wants a so-called pay-as-you-go system enforced by law. The president said it would mean that Congress can only spend a dollar if it saves a dollar.

(BEGIN VIDEO CLIP)

OBAMA: Entitlement increases and tax cuts need to be paid for. They're not free. And borrowing to finance them is not a sustainable, long-term policy. Paying for you what spend is basic common sense. Perhaps that's why here in Washington it's been so loose.

(END VIDEO CLIP)

DOBBS: The president's proposal comes only after it now appears the federal budget deficit will reach near $2 trillion. This year the budget is $3.5 trillion and the president's pay-as-you-go plan comes only days after the treasury secretary, Timothy Geithner, went to Beijing trying to convince communist China that its investments in U.S. treasury bonds are safe and secure.

The Obama administration trying to prevent the collapse of its much trumpeted deal to save Chrysler. The Supreme Court is now considering a challenge to that deal by three Indiana pension funds that loaned Chrysler tens of millions of dollars. Critics say the president exceeded his authority to manage the crisis in the automobile industry and in fact in the economy.

Suzanne Malveaux with our report from the White House.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): President Obama, once again as the reluctant car salesman in chief.

OBAMA: I've said repeatedly that I have no interest in managing the banking system or, for that matter, running auto companies.

MALVEAUX: For four and a half months, it's been full speed ahead for Mr. Obama. But now the Supreme Court is putting the brakes on the president's plan to save Chrysler. At issue, whether the Obama administration over reached in exercising its executive power when it made a deal for Chrysler and Italian car maker Fiat to merge. THOMAS GOLDSTEIN, CO-FOUNDER, SCOTUSBLOG.COM: The objection here is that the power over bankruptcy belongs to Congress, not to the president, and President Obama's administration didn't have the power, literally, to force this bankruptcy through.

MALVEAUX: The president said the deal would limit the damage from Chrysler's bankruptcy and save tens of thousands of American jobs.

OBAMA: I am very confident that we're going to be able to, once again, the U.S. auto industry the best in the world.

MALVEAUX: Congress granted the president the authority to use taxpayer bailout money to rescue troubled banks but not the auto industry. A group of Chrysler creditors backed by some Republicans in Congress say the president is over stepping his bounds and should not be spearheading the creation of a new car company.

They point to the Supreme Court's decision in 1952 when it rejected President Harry Truman's attempt to seize Steel Mills during the Korean War. Truman argued it was a national emergency.

In a statement Republican congressman Tom Price said, President Obama has shown an over zealous willingness to meddle in the affairs of private businesses and it may have finally caught up to him.

(END VIDEOTAPE)

MALVEAUX: The president says that time is of the essence. Today's solicitor general filed this opposition saying that for every day of delay it is costing Chrysler $100 million. Lou?

DOBBS: Thank you very much, Suzanne Malveaux from the White House.

The House of Representatives calling passing so-called cash for clunkers legislation trying to boost car sales. That House legislation would provide $4 billion to subsidize new car sales for consumers who scrap older vehicles. Critics, however, saying this legislation would simply encourage Americans to trade in American made cars and replace them with foreign cars. The bill now goes to the Senate. President Obama says he supports the legislation.

North Korea making aggressive nuclear threats against the United States and our allies. North Korea threatening what it calls a merciless offensive.

And more drug cartel violence in a Mexican holiday resort popular with American tourists.

(COMMERCIAL BREAK)

DOBBS: Eleven people were killed, more than 50 wounded, after a suicide bombing outside a five-star hotel in Pakistan. Officials in the northwestern Pakistan city of Peshawar say a truck bomb exploded near the entrance of the Pearl Continental Hotel. That luxury hotel attracts foreigners and diplomats. Officials were in talks to make it into a U.S. consulate, in fact. So far no one has claimed responsibility for the attack.

North Korea tonight sounds more aggressive than ever. North Korea's news agency today warning that North Korea's nuclear weapons would be used not only for defense but also for, quote, "a merciless offensive."

This appears to be the first time that North Korea has described its nuclear arsenal as an offensive weapon. And it comes as the United States considers steps to punish North Korea for its latest missile test and looks for ways to win the release of two jailed American journalists.

The first prisoner from Guantanamo Bay has arrived in New York tonight and he has pleaded not guilty. Ahmed Gulani is accused in the bombing of two American embassies in Africa in 1998. More than 200 people were killed in those bombings including 12 Americans.

Moving Gulani to the United States for prosecution is the first part of the president's plan to shut down the prison at Guantanamo Bay. House minority leader John Boehner criticized his transfer as the first step in the Democrats' plan to import terrorists into America.

The swine flu outbreak could soon be a pandemic, the first influenza pandemic in more than 40 years. A top World Health Organization official now says the situation, in his words, has evolved a lot over just the past several days. More than 26,000 people in 73 countries have been reported with the swine flu and a sudden spike of cases in Australia has been reported.

The CDC in this country says swine flu has sickened more than 13,000 people. Twenty-seven deaths are blamed on the swine flu in the United States.

Mexico's popular resort city of Acapulco suffering more brazen drug violence just two days after a gun battle killed 18 people. Monday gunmen attacked two police stations at virtually the same time and, clearly, progress is slow in Mexico's war against the drug cartels.

Casey Wian has our report.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): The body of one of three Acapulco police officers killed Monday sits slumped in his vehicle, shot by gunmen who targeted two police stations in near simultaneous attacks in this popular resort city.

Less than 48 hours earlier, Mexican soldiers and police battled suspected drug cartel gunmen armed with military weapons and grenades. In that fight two soldiers, two bystanders, and 13 of the gunmen were killed. DANIEL VELASCO, MEXICAN ARMY (Through Translator): They have connections with the Beltran Leyva organization. Also among the dead hitmen was a civilian who commanded this cell and was known as Commander Magana.

WIAN: Two and a half years after Mexican president Felipe Calderon deployed tens of thousands of troops to fight drug traffickers the body count continues to rise. It's now approaching 11,000. Even so, some experts see some progress particularly in the arrest two weeks ago of more than two dozen public officials accused of cooperating with drug cartels, including 10 mayors.

GEORGE GRAYSON, COLLEGE OF WILLIAM & MARY: Slowly, Mexico is getting its act together. Now I'm certainly not one who believes that we have reached the millennium here but there are some modest signs of progress and they're driven in large measure by the upcoming elections but also because Mexico's capability is gradually improving.

WIAN: He also fears more violence as does the U.S. State Department. Since January, it has prohibited all nonessential travel by U.S. government employees in Mexico in the entire state of Durango and parts of the border state of Coahuila citing, quote, "The recent increase in assaults, murders, and kidnappings in those two states."

(END VIDEOTAPE)

WIAN: A State Department spokeswoman would not say if there are discussions under way to expand those restrictions or to modify its travel alert for all U.S. citizens in Mexico given the recent violence in Acapulco. She did say the department is constantly re-evaluating its travel alerts given the situation on the ground. Lou?

DOBBS: Casey, thank you very much. Casey Wian.

Lawmakers in Pennsylvania tonight are pushing to expand the e- verify program that identifies illegal workers in this country, a program many believed that the Obama administration is trying to kill. Pennsylvania lawmakers are holding hearings on two state e-verify bills for the construction industry and they have the support of the construction unions in Pennsylvania.

E-verify is regarded as the single most effective measure against illegal immigration. It's more than 99 percent accurate. The Chamber of Commerce and pro amnesty advocates are leading the fight to block the expansion of e-verify in Pennsylvania and to kill it outright.

If Pennsylvania were to introduce e-verify in the construction industry, the state would be the first in the nation to require the private sector to use the program. Corporate America also fighting to stop the federal government from expanding e-verify to federal contractors. A fourth delay has already been achieved.

Well, for my thoughts on that and a lot more, join me on the radio Monday through Fridays for "The Lou Dobbs Show" 2:00 to 4:00 p.m. each afternoon in WOR 710 Radio in New York and around the country go to LouDobbsRadio.com to get your local listings for the show.

Well, tainted by past fraud and charges of favoritism, a multibillion dollar battle over a new tanker aircraft for the U.S. Air Force has resumed.

And a food plant in North Carolina collapsing. Three hundred people were inside.

(COMMERCIAL BREAK)

DOBBS: Should Americans buy American if they have to spend more? That's one of the questions on Capitol Hill tonight. It all has to do with the contract for flying gas stations for the U.S. Air Force. A European company won the Defense Department bid but Boeing said not so fast.

Lisa Sylvester has our report.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): The Pentagon's fleet of mid-air refueling tankers is on its last legs. Some of the planes are 50 years old but acquiring replacements hasn't been easy.

The first attempt in 2003 ended in a bribery scandal that sent a Defense Department officer to jail. Then last year the contract for $35 billion was awarded to European-based Airbus and U.S.-based Northrop Grumman.

But the independent Government Accountability Office blasted the bidding process saying significant errors were made. Now the Pentagon is back at the drawing board.

ROBERT GATES, DEFENSE SECRETARY: I'm in the process, the final decision process in terms of the acquisition of fray and the structure we're going to put into place to ensure that it is a fair, open, and transparent process.

SYLVESTER: The Pentagon will announce within the next 10 days whether it will keep the Air Force as the key decision maker or have Department of Defense officials take over.

Gates acknowledged that this military acquisition has, quote, "gone badly awry." Thousands of jobs are at stake. Boeing is the key rival to the European Aerospace and Defense Company which makes the Airbus. Senator Patty Murray from Washington state, where Boeing makes many of its planes, wants the Pentagon to buy American.

SEN. PATTY MURRAY (D), WASHINGTON: I'm worried about the long- term ability of our domestic industrial base to provide our military forces what they need to accomplish their national security mission.

SYLVESTER: Some influential members of Congress, including Representative John Murtha, the chairman of the House Defense Appropriations subcommittee, are weighing whether to add language to the defense budget bill that would force the Pentagon to split the contract, buying some of the tankers from Airbus and some from Boeing.

(END VIDEOTAPE)

SYLVESTER: But secretary Gates is on record adamantly opposing a dual purchase, saying it will cost the government and taxpayers a lot more than just awarding the contract to one company, that it means having two development and testing programs and training people to operate two different types of aircraft.

And Gates has said that that is something from a military standpoint that just doesn't make a whole lot of sense. Lou?

DOBBS: Lisa, thanks very much. Lisa Sylvester from Washington.

Other stories we're following here tonight. In Little Rock, Arkansas the soldier who was wounded in a drive-by shooting at an army navy recruiting center spoke out for the first time. Quinton Ezeagwula was shot in the back, his head and buttocks in the attack that killed another soldier at the recruiting center. Despite that attack Ezeagwula says he is staying in the U.S. army.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: After all of this has happened, what are your plans? Do you plan to stick with the army?

QUINTON EZEAGWULA, SHOOTING VICTIM: Yes, ma'am. I like defending this country, ma'am.

(END VIDEO CLIP)

DOBBS: The shooter, Abdul Hakim Muhammad, faces one count of capital murder, 16 counts of engaging in a terrorist attack.

Search teams in Garner, North Carolina tonight say they've located a person in the rubble of a building that collapsed. At this time we do not know the person's condition nor identity. Two other people remain missing after an explosion at a Conagra plant.

At least 41 people were injured in the explosion and the collapse. Four people are in critical condition tonight, suffering severe burns and smoke inhalation. Some 300 people were working in the plant at the time of the explosion. Officials are still investigating the cause.

In Florida tonight a commercial fisherman reeled in an unusual catch off the Florida Coast. Rodney Solomon pulled in an Air Force missile just 50 miles from Panama City. The Air Force says that missile was used to transmit data and did not contain explosives. Solomon said he kept the missile aboard his boat for 10 days because he wanted to keep it as a souvenir for a while he wanted to.

And Venezuela's leftist strong man, Hugo Chavez, comparing himself, of course favorably, with President Obama. Chavez says President Obama is trying to nationalize companies faster than he and Fidel Castro can. (BEGIN VIDEO CLIP)

NEWT GINGRICH (R), FORMER HOUSE SPEAKER: You can tell how badly the stimulus has failed. And let's be clear. This is not something that President Obama inherited from George W. Bush.

(END VIDEO CLIP)

DOBBS: Former House speaker Gingrich, blistering criticism of President Obama.

(COMMERCIAL BREAK)

DOBBS: Breaking news just in to CNN. The U.S. Supreme Court has just cleared the way for the sale of Chrysler to Fiat of Italy. Three Indiana pension funds that had loaned money to Chrysler tried to block that deal. They were trying to block the deal in the Supreme Court, which did order a stay yesterday. Justice Ginsburg doing so.

But, again, the Supreme Court clearing the way for the sale of Chrysler now to Fiat of Italy. They have until the 15th of this month to meet the conditions of that sale and it now appears that there are no obstacles remaining for the sale of Chrysler's assets to Fiat.

Venezuela's President Hugo Chavez moving to take even more control over his country's oil industry. That's just his latest step towards socialism as he nationalizes industry, but now he says President Obama may be moving even farther to the left of both himself and Fidel Castro.

Ines Ferre with our report.

(BEGIN VIDEOTAPE)

INES FERRE, CNN CORRESPONDENT (voice-over): U.S. presidents and their administrations have preached free market principles and free enterprise to Latin America for decades. That's why many Latin American countries may be puzzled by the domestic economic policy over the last two years.

DAN ERIKSON, INTER-AMERICAN DIALOGUE: The United States for a long, long time has lectured Latin America about privatization, allowing free markets to flourish, and so there is a certain irony in the fact that the United States is now allowing its own government to take such a large role in managing our domestic economy and many Latin American countries are looking at this as providing an excuse for them to increase state intervention in their own countries.

FERRE: Under presidents Bush and Obama the federal government through the Treasury Department and the Federal Reserve have spent, loaned, or pledged an estimated $13 trillion over the past year and a half. The largest federal intervention in the private economy in America's history.

The U.S. government has essentially nationalized Freddie Mac and Fannie Mae which hold or guarantee about half of all mortgages in the United States. The bailout money loaned to banks now amounts to at least 14 percent of the total market value of the financial institutions in the United States. The federal government has taken a majority stake in AIG the country's largest insurance company and now owns 60 percent of General Motors.

In contrast, the Venezuelan government has nationalized its oil industry and expanded government control over steel, cement, telecommunications, banking, and even food companies. Chavez has expanded government control to 30 percent of Venezuela's economy. Chavez says his campaign of nationalization will continue. President Obama says federal intervention in the American private economy has been temporary.

(END VIDEOTAPE)

FERRE: In a television broadcast last week the president of Venezuela Hugo Chavez joked about the president's takeover of GM saying, quote, Fidel, careful, or we'll end up to his right. Chavez has a substantial lead and one he doesn't appear ready to surrender, Lou.

DOBBS: Ines, thank you very much, Ines Ferre.

We have another example tonight, a glaring example of how some in the media perceive President Obama rather favorably. As we reported last week, "Newsweek" editor at large Evan Thomas appeared last Friday on MSNBC with Chris Matthews and had this to say.

(BEGIN VIDEO CLIP)

EVAN THOMAS, EDITOR-AT-LARGE, NEWSWEEK: In a way Obama is standing above the country, above the world. He's sort of god. He's going to bring all different sides together.

(END VIDEO CLIP)

DOBBS: Now, listen to what Thomas said Saturday about the president and the Middle East.

(BEGIN VIDEO CLIP)

THOMAS: Obama, we're understanding what Obama is. He's the great teacher. He's this guy who stands above everybody. If he stands above everybody and says, now listen, you people have to stop blaming each other unreasonably. You have to get along here. I'm going to show you the way. It is a pretty brave role in many ways.

(END VIDEO CLIP)

DOBBS: Evan Thomas relegating the president to god-like status and a great teacher, but that's in contrast to what Thomas was saying just two years ago about the role of the press and the president on the very same program. He said the job of a journalist, quote, is to bash the presidents. That's what we do, he said. Take a look at what actor John Voight had to say last night as he emceed a Republican fundraiser in the nation's capital. (BEGIN VIDEO CLIP)

JON VOIGHT, ACTOR: Obama really thinks he is a soft spoken Julius Caesar. He thinks he'll conquer the world with his soft spoken sweet talk and really thinks he'll bring all the enemies of the world into a little playground where they'll swing each other back and forth. Bring an end to this false prophet, Obama.

(END VIDEO CLIP)

DOBBS: Voight going on to say during the campaign the president portrayed himself as a moderate but turned out as he puts it to be wildly radical, so there you have it from the left and from the right. We'd like to know what you think. Here is our poll question tonight from those of us in the middle. Is it truly a sign of the times when a prominent journalist refers to the president of the United States as a god and a prominent actor refer to the same president as a false prophet? Yes or no. Cast your vote at loudobbs.com. We'll have the results later.

Joining me now three of my favorite radio talk show hosts. In Philadelphia, Roberta Gale, in Philadelphia also WPHT's Dom Giordano. Good to have you with us. Here in New York host of the morning show on WWRL, CNN contributor Errol Louis.

What do you think? False prophet, god? We just thought he was a plain old president.

ERROL LOUIS, WWRL IN NEW YORK: I can't pretend to put myself in the head of an actor like Jon Voight whose movies I kind of like, actually, but the journalist, I think some of that stuff is unforgivable, way over the top. Another "Newsweek" man or former "Newsweek" man detailed all of the mistakes throughout the campaign that many of us didn't see where the Obamas were fighting with each other, screwed up basic stuff around Reverend Wright. It was not a perfect campaign. He is not a perfect candidate. And he is certainly not a perfect president.

DOBBS: Wait a minute. Wait just a second if I may, Roberta. Are you saying that's a criticism of the president or was that a criticism of the press who seem to have an inability to detect any of the things that Wolf either reports or you just mentioned?

LOUIS: Well, I think it's lax standards is what it is.

DOBBS: On the part of the president?

LOUIS: On the part of -- the president is who he is. He's a politician. You got to watch these guys. You know?

DOBBS: All right, Roberta.

ROBERTA GALE, RADIO TALK SHOW HOST: Okay. Look. You got Jon Voight, Angelina Jolie is his daughter. His daughter is not even talking to him and the rest of the country is supposed to talk and listen? That's absolutely ridiculous. You have a third of Republicans in a recent poll, they don't even dig their own party. You've got Newt Gingrich speaking for the party, which I have to admit is sort of like the head of Beta Max or something introducing the blue ray. What's going on here? What is going on? When the student is ready, the teacher will appear and the teacher is this new Republican Party l-i- te that needs to get over this radicalism.

DOM GIORDANO, WPHT IN PHILADELPHIA: Wait a minute. Who's the radical? We were talking about Evan Thomas. I need a score card so far. Evan Thomas and also Chris Matthews, not saying anything, just kind of agreeing with this and not saying, wait a minute, Evan Thomas, you're talking about god here. I mean -- I would think if I said that right now, Lou, you might interrupt me for a period of time.

DOBBS: I don't know that I would. I might be so slack jawed I'd be incapable of it. I'd have to say, one of the questions we thought about asking tonight was when it comes down to the point that people begin in the United States referring to a president whether it be a -- apparently a right wing actor talking about a president as a false prophet and, you know, a prominent journalist obviously left wing referring to him as a god, I mean, is this some sort of indication of end of days? How are we to decipher this?

LOUIS: I interpret it as people probably need to sort of work on better metaphors. You know? If you like the guy, say you like the guy. You don't call him god. You know?

GALE: I don't know.

DOBBS: Let's turn -- go ahead, Roberta.

GALE: You know, I read that Obama uses Jesus Christ more than Bush ever did, so, I mean, if he's a false prophet he's a damn good one. You know what? Watch when you say end of days because I got to tell you, we Jews are really freaked out by the whole end of days, doom of Israel thing. Oi!

DOBBS: Well, let's -- continuing that theme, the suggestion that this -- the Obama administration this time means it, Dom, when we talk about North Korea, it has now taken, imprisoned two journalists, threatening a nuclear offensive and this administration's response to this point has been the secretary of state to think about putting them on a list of terrorist nations. What do you think?

GIORDANO: Lou, I think we're also saying Al Gore will go and negotiate our way out of this. That's an interesting take. In deference to the president on this, it's very difficult dealing with the North Koreans. We all know the Chinese are probably the only ones that can and we are a beggar nation when it comes to the Chinese as we see every night on your show and everywhere else so it leaves us with few --

DOBBS: What do you mean everywhere else?

GIORDANO: Okay. Mainly on your show. Lou, the point is, it leads us to believe, where do we go with this with the North Koreans? All the people I've talked with the only thing they seem to be afraid of right now is the fact that Japan might -- is lobbying for a nuclear weapon. They don't want that. Other than the Chinese there is no real good solution to dealing with this country.

DOBBS: You know, we'll come back and be talking about the fact that increasingly when it comes to foreign policy, whether it be the Obama administration, or before the Bush administration, the words "no good solution" continue to crop up. We'll be back with our panel in a moment.

Also, tonight's face-off debate ahead. Is the battle over the Sotomayor nomination turning into a battle over group and identity politics?

And planes, trains, or automobiles? Take a guess which one figures into Vice President Biden's latest, that's right, verbal blunder.

(COMMERCIAL BREAK)

DOBBS: Let me turn to you. You said you believe that George Bush was a tougher president on North Korea than President Obama is proving to be. Is there any good response in foreign policy or militarily or in any other way to what North Korea is doing on the part of the United States?

GIORDANO: Lou, I'd like to offer up and then criticize Obama on this. I don't think he is being tough enough. I think they are testing him on this. Anybody I respect that's been there and we've talked with, again, this is a very, very difficult situation. You're dealing with people with nuclear weapons and also dealing with -- we probably have less information, Lou, from what I can tell about this regime than any place in the world.

DOBBS: Would this be a good time for us just to shut up?

GIORDANO: Yes.

DOBBS: All right. We're going to follow our own advice here tonight on that issue. Let me turn to this. Joe Biden, speaking on the largest new transportation project in the nation, actually in New York, the vice president today telling reporters the $9 billion tunnel between New York City and New Jersey would carry cars. The vice president turns out to have been wrong. It's for trains only. Are you shocked?

LOUIS: I am a little surprised. He's there for the ribbon cutting of what is sure to be the biggest boondoggle in the history of New York and New Jersey government. I'm confident of that. They're bringing, estimating $9 billion. By the time it's built in 2017 I --

DOBBS: There won't be an overrun on that at all.

LOUIS: No, no.

GALE: No. Listen, the Port Authority of New York and New Jersey, we have a proud history of giving jobs to people, their parents, great grandparents, great-great grandparents, sons, brothers, whatever, four or five generations and I guess they're just keeping it. Now, I suggest we take some of those illegals that are building tunnels across our border, have them come over here and dig the tunnel for free.

DOBBS: All right. Let me turn, if I -- if I may to another aspect of public policy right now that is somewhat difficult and that seems to be an understanding as to how -- "The Wall Street Journal" making it very clear this morning that the administration couldn't possibly have a clue where it came up with the idea of 150,000 jobs having been created by the stimulus package or the idea it could create 600,000 this summer. Why is there that nonsense going on in trying to come up, to conjure numbers? It seems so unworthy.

LOUIS: The estimates are all going to be wrong. I mean, certainly this early date there was never even any plausible theory that would lead to, you know --

DOBBS: Why are they doing it?

LOUIS: I think it's a taste of what we're going to get. The millions of green jobs, they're going to show up on time for the election, whether or not, you know, you've got anybody working or not.

DOBBS: Dom?

GIORDANO: I might add the reason we're getting that now, too, and it's so ham handed, is because the president is still very popular but we're getting to the stage where all this stimulus money is going to have to produce a result. I don't know if it's too early to hold him to it but I think they're a little worried that finally we're at the point where people want to know what's happening.

DOBBS: It's only been a little over four months, this administration trying to take credit for anything or being blamed for anything in this economy, talk about premature, Roberta.

GALE: Now, now, now, Lou. You know what? Have patience. With all due respect and love, I really think that they've only used I believe like 5 percent; correct me if I'm wrong, 5 percent of the stimulus money?

DOBBS: 5.6 percent.

GALE: I say pump up the volume, honey. Let's get all that money in there. Let's see what's happened. I think it's a little early to criticize when so little money has been used. Get me the bucks. Show me the money, honey.

DOBBS: All right. Thank you very much. Dom, thank you.

GIORDANO: Thank you, Lou.

DOBBS: I think we just agreed violently. I think that's what we did. Sonia Sotomayor's Supreme Court nomination hearing starts in six weeks. In tonight's face-off debate Republicans say the Obama white house is making it all about race. Democrat and Republican strategists debate the issue, next.

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DOBBS: We learned today that judge Sonia Sotomayor's Supreme Court nomination hearing begins on July 13th, a lot sooner than Republican leaders would have liked. They want more time to explore her background.

Joining me in tonight's face-off debate Republican strategist Leslie Sanchez, author of "Why Hispanics and Republicans Need Each Other" and she says the Obama administration has turned this into a debate over identity politics and not Sotomayor's credentials. Also with us a Democratic strategist Maria Cardona who says Sotomayor has already been a victim of vicious attacks. Good to have you both with us.

MARIA CARDONA, DEMOCRATIC STRATEGIST: Thank you, Lou.

DOBBS: The confirmation you say that 48 days shows that the Democrats are desperate in this nomination? Why so?

LESLIE SANCHEZ, REPUBLICAN STRATEGIST: I think one thing that's very clear is that the Democrats realize the more time that passes, there's a tremendous amount of scrutiny around this nominee, there's many more questions raised rather than answers provided. So I think the Democrats are pushing a fast track so they can try to seal this approval before anything could possibly go wrong.

DOBBS: Maria, you say that the judge has been the victim of so- called identity politics, and you feel that that timing's appropriate. How is she the victim of identity politics and the timing appropriate?

CARDONA: Well, first of all, you know, Leslie makes the argument that the white house is the one that has made this about identity politics when nothing could be further from the truth. When President Obama nominated judge Sotomayor, never once did he nor did she ever mention the fact that she would be the first Latina nominated to the Supreme Court. He talked about three key requirements, intellectual rigger, mastery of the law, the second was respect for the law and above all applying the rule of law to each and every case, and the third is a depth and breath of experience. She'll have more experience than any other Supreme Court nominee in 70 years. Her credentials are impeccable. The people that made this about identity politics is Newt Gingrich and Rush Limbaugh, the new old face of the Republican Party, when they called her a racist.

SANCHEZ: I think, Lou, to be very fair, and to be fair to this. There's no doubt that identity politics has been played on both sides. Let's be clear, historically this is something that has been done as long as the court has existed. But the reality is, this president who was supposed to transcend race has made this about race and ethnicity from the beginning. Talking about her being the first Hispanic Supreme Court nominee, making the white house talk about her compelling life story and experience, that we hear more about that than we have her very -- DOBBS: Yeah, I want to say to the both of you. I have not -- the one thing I have been waiting to hear or to read in any of our research is to find out that this woman has laid down a decision, aside from the baseball decision, which was more about notoriety than with the law that she is somehow a spectacular jurist. We have not heard that, perhaps that'll emerge in the confirmation hearings. But we have heard that a wise Latina woman should outperform a man on the bench, a white male every time. This, the white house said, Maria, that this was just, you know, a poor choice of words, it turns out she has said something like this, very much like this over an eight-year span for crying out loud.

CARDONA: And you know what? Those sentiments are not new. You can see Judge Ginsburg has used that when she actually recently said that --

DOBBS: Do they make it less offensive?

CARDONA: No, well, let me finish. Judge Clarence Thomas has said that and Judge Alito has said.

DOBBS: Judge Thomas said what?

CARDONA: Clarence Thomas said during his confirmation hearings that he hopes he could bring something new and something new to the court that would help them see cases in the shoes of those that he has walked in.

DOBBS: That's a different statement. Wait, wait, wait -- Leslie, your response please.

SANCHEZ: No, very clearly, we don't want to misconstrue what justice Thomas said, he draws a distinct line. He may talk about his personal experiences affecting him personally, his character, and that such. But we expect the justice to be blind and give equal justice regardless of ethnicity, circumstance, disadvantage. She has shown through empathy, which the president also uses as a criteria, that is a lens by which she views these cases. That is the criteria when people squirm when they look and learn more about this candidate.

CARDONA: But you know what Leslie and Lou, you need to look at her more than 4,000 decisions, more than 300 opinions she has written. Above all, she has applied the rule of law in each and every case. Has she said that her experience brings a unique perspective? Yes, that's exactly what Clarence Thomas is talking about.

DOBBS: Maria -- we're all pals here. You're suggesting that Leslie and I read 4,000 cases. How many of those did you read?

CARDONA: I have not read all of those.

DOBBS: All right. I want to go on record right now in full candor, I have not read all 4,000 either, is that fair? How about you, Leslie? Have you read all 4,000? We won't go to percentages.

SANCHEZ: I don't think I can do it by the deadline, Lou. I think that's the issue. I think the deadline has been set, it is unrealistic.

CARDONA: The point is to and to your first point, Lou, she has a vastly available public record that will allow all of the -- that will be explored.

DOBBS: But I think we better get to the real issue here. This woman broke her ankle at LaGuardia airport and still flew to Washington, D.C., still met with senators, went into a Washington hospital, and got that ankle fixed. Now, if that is representative the way the woman meets adversity and handles herself, you know what? I will endorse her for crying out loud. I think that's pretty strong stuff.

CARDONA: But the most important thing is how credentialed she is. Thank you, Lou.

DOBBS: Coming up at the top of the hour, Campbell Brown.

Campbell?

CAMPBELL BROWN, CNN ANCHOR: Hey, there, Lou. Good debate just ahead. The president faces more questions about his economic rescue plan. We are asking tonight is he more popular than he is effective?

Also, my interview with GOP Chairman Michael Steele, I'll ask him who is really running the GOP right now.

Plus tonight's debate, bringing Gitmo prisoners to the U.S. a security risk?

We'll do that plus a CNN exclusive, why the infamous Unabomber is fighting with some of his victims.

All ahead at the top of the hour, Lou.

DOBBS: Thanks Campbell.

Up here next, tonight's poll results and some of your thoughts. We'll be right back.

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DOBBS: Tonight's poll results, 86 percent of you say it is truly a sign of the times when a prominent journalist refers to the president as a god and a prominent actor refers to the president as a false prophet.

Let's take a quick look at your thoughts.

Ron in Mississippi, "I know that Washington hears the results from your nightly polls, but it seems like they ignore them. We elect officials to represent us in Washington, but when they get in office, they follow their own agendas."

Susan in New Jersey said, "I thought when I cast my vote in November, I was electing a president. Since when did we elect a god per Evan Thomas of Newsweek? Didn't our forefathers set up a form of government with the checks and balances so we would not have a king much less a god?"

Charles in Georgia, "Of course President Obama has created tons of jobs, he just calls them czars."

And Joan in New Jersey said, "We are closer to becoming a welfare state than we'd like to admit. And unless our elected representatives start putting America first, that is exactly what we will become."

We love hearing from you. Send us your thoughts to loudobbs.com. Each of you whose e-mail is read here receives a copy of my book, Independence Day. And please join me on the radio, Monday through Fridays for the Lou Dobbs show. In New York 2:00 to 4:00 p.m. each afternoon on WOR 710 radio. Go to loudobbsradio.com for the local listings in your area for the Lou Dobbs show.

Join us here tomorrow.

For all of us, we thank you for watching, good night from New York.

Now Campbell Brown.