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Iranians Protest Over Election Results; Classified Memo Sent to U.S Troops in the Mideast; President Obama to Outline Health Care Plan at AMA Meeting; Critics Say President Obama Has Gone Czar-Crazy; Cubans Feel the Economic Crunch; Iranian Council to Look Into Election Fraud Allegations

Aired June 15, 2009 - 07:00   ET

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


T.J. HOLMES, CNN ANCHOR: And hello, there. Welcome, everybody, to this AMERICAN MORNING. Top of the hour here in New York. It's Monday, June 15th. I'm T.J., sitting in for John Roberts today.

CHETRY: Good to have you with us this morning.

HOLMES: Good to be here.

CHETRY: And I'm Kiran Chetry. A lot going on.

On the agenda this morning, we have some big stories we're breaking down for you in the next 15 minutes.

First, it's breaking news. Protestors now gathering in the streets of Iran this morning. They are ready to stare down police with batons and baseball bats again today. They're challenging the reelection of President Mahmoud Ahmadinejad

T.J. HOLMES, CNN CO-ANCHOR: All right. And hello there. Welcome everybody to this AMERICAN MORNING. Top of the hour here in New York, it's Monday, June 15th. I'm T.J. sitting in for John Roberts today.

KIRAN CHETRY, CNN ANCHOR: Good to have you with us this morning.

HOLMES: Good to be here.

CHETRY: And I'm Kiran Chetry. A lot going on. On the agenda this morning, we have some big stories we're breaking down for you in the next 15 minutes.

First, it's breaking news. Protesters now gathering in the streets of Iran this morning. They're ready to stare down police with batons and baseball bats again today. They're challenging the re-election of President Mahmoud Ahmadinejad. It's a vote that they say was stolen away from them.

This morning, Iran's Supreme Leader is telling the challenger that complaints will be investigated if they're submitted. We're going to take you to Tehran in just a few minutes. The White House also expressing doubts about the outcome of the presidential election in Iran. CNN has learned that a memo has been sent to our military commanders in the Middle East to be careful if they encounter Iranian forces. Barbara Starr on that classified warning from the Pentagon.

And President Obama can expect some pushback when he delivers his pitch for health care overhauls to the nation's doctors. The American Medical Association has major reservations about the president's reform plan. He's going to be speaking to them in Chicago and we're live there. The president is going to be speaking to them in about four hours.

Well, we begin with breaking news out of Iran. Major developments as thousands of Iranians openly challenge their government and the legitimacy of the outcome of the presidential election. This morning, Iran's Supreme Leader is telling opposition leader Mir Hossein Mousavi if he wants to launch an investigation into election fraud that he should do it through legal means. That move coming after a weekend of violent protests in the streets of Tehran. Police on motorcycles attacking protesters with guns, with batons, rather, and tear gas. And this morning as tensions on the ground rise, there were some new questions about a planned march on the capital.

Now, earlier, I had a chance to speak with our chief international correspondent Christiane Amanpour. She's on the ground in Tehran.

(BEGIN VIDEOTAPE)

CHETRY: Christiane, a lot of these developments happening in the last 30 minutes. Explain to us again the Supreme Leader saying that this can be challenged?

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT (via telephone): Well, what he's saying is according to Iranian law, one can challenge the election results. However, he has, according to state television, said to Mousavi, that if he has any complaints then he should take them through the legal channels and the appropriate election channels, which would be the Guardian Council.

We are on our way downtown right now trying to see whether what we've been told by the Mousavi camp is actually true, and that is that he is apparently planning to appear to appeal to his supporters not to march and not to demonstrate. This after supporters had spontaneously were running from one to another, called for another show of people power on the streets today. And then early this morning there was a communication with the interior ministry saying that any kind of demonstration would be illegal.

So now, we're going down to see whether Mousavi who has not been seen since Friday night, press conference late Friday night declared himself the winner. We're going down to see if, in fact, he shows up.

In the meantime, the streets of Tehran are by and large very calm. We have heard reports of some scuffles and disturbances at Tehran University but, by and large, at this point everything very calm -- Kiran.

CHETRY: You also had a chance to ask a question of President Ahmadinejad when it came to the safety of his challenger Mousavi. Tell us more about what happened in that exchange.

AMANPOUR: Well, I did ask him that, because there have been many of the opposition as it is (ph) and leaders of the reform camp that have been arrested and nobody knew quite what has happened to Mousavi. There were a lot of conflicting comments. And he was meant to be at his home and surrounded by security. And I asked him since Mr. Ahmadinejad had said obviously that he was now the president of all Iranians, whether they had voted for him or not, would he guarantee Mr. Mousavi's safety. And I asked him twice because I got a very round-about answer to that which -- you know, it's hard to decipher what exactly he said because it's all very oligarchal (ph).

He talked about a football match and people being upset because -- that's (INAUDIBLE) and that's why they were in the streets. And then he said, somebody may have run a red light and in that case they would be fined. So that's what he was suggesting that Mr. Mousavi had run a red light by questioning the election results and therefore was being "fined or punished." We're still waiting to see whether he turns up in public today and what he has to say.

(END VIDEOTAPE)

CHETRY: That was Christiane Amanpour filing a report for us a few moments ago. And when we talked to her earlier, she said the streets were quiet. And now as we've been reporting just in the last few minutes here, again, people are taking to the streets. So we'll continue to follow the movement about what's going on post election in Iran today with Christiane -- T.J.

HOLMES: Meanwhile American commanders in the Middle East have been sent a highly classified message in the wake of the Iranian election. Barbara Starr live now with exclusive details.

Barbara, sounds like they don't want an already tense situation to escalate.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: That is the bottom line, T.J. CNN has learned that, indeed, over the last several days U.S. commanders in the Middle East were sent a highly classified message from Washington warning them to maintain vigilance, prudence and restraint if they encounter Iranian military forces.

What are we really talking about? Well, if you look at the map, it will remind you that in the Persian Gulf, the U.S. Navy's Fifth Fleet is headquartered right in the Persian Gulf and U.S. Navy warships routinely encounter Iranian forces in those waters. The particular concern is shipping men by Iran's Revolutionary Guard Corps. They're a very uneasy lot.

The U.S. has had encounters with them before. And the bottom line here is that commanders are being warned if you see them again in this tense situation, don't get suckered into something. You know, there can be lots of misunderstandings, regular misunderstandings at sea. What they don't want is something to escalate. But this is so sensitive, T.J., because they also don't want to send the message that the U.S. military is easing up on its watchfulness of Iran. So things very tense in those waters -- T.J.

HOLMES: Barbara, this is not exactly the time for a misunderstanding. Barbara Starr live for us this morning. Thank you so much.

CHETRY: Well, the White House is rolling out its big push today to overhaul the nation's health care system. And first stop will be a speech to the American Medical Association meeting in Chicago. President Obama and the AMA are at odds over his proposal for a public health insurance program.

Meanwhile, there is concern also about the president reneging on a campaign promise to not tax worker's health benefits. Vice President Biden says that won't happen.

(BEGIN VIDEO CLIP)

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: The bill is going to come. This is the most -- this is going to be one of the most comprehensive changes in law since Medicare in the beginning. We'll have to see what the whole bill says. But we made it clear, we do not believe you should be taxing -- taxing the benefits that people receive through their employers now.

(END VIDEO CLIP)

CHETRY: And our Suzanne Malveaux is live in Chicago. Suzanne, the vice president not totally ruling that out. But then again, this legislation, right, has to go through the halls of Congress. And as we see, things tend to change from the original plan.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: They absolutely do, Kiran. One of the things that you take a listen to really what he's saying, his language, he's not completely ruling this out. We heard similar language over the weekend from the Health and Human Secretary, Kathleen Sebelius, who said that this is legislation that is coming from Congress. It's an idea that's coming from Democrats. It is not coming from the White House.

Candidate Obama was dead set against it. But it's the White House now, the administration is open to all options even willing to, the president saying, stealing some potential ideas from Republicans. It's an idea that Republicans a little bit warmer to than some of the other alternatives. And so, we're hearing some very fuzzy language here. Don't necessarily rule this one out.

CHETRY: The other interesting thing is that he's going before the country's largest physicians' organization, but it's also one of the most prominent opponents of this. And so he really -- he's going to have to sell to an audience that doesn't necessarily think this can work.

MALVEAUX: Right. And what they're mainly opposing here is this whole idea of this kind of public plan, an alternative to private plans. And one of the things that he's going to highlight, first and foremost, is that the United States spends way too much money on health care, gets little in return or too little in return. That there is much, too much money being spent on unnecessary tests as well as procedures, that type of thing.

He is going to talk about the fact that he's got a public health care plan that he believes will be able to compete with private insurance and private plans to offer more choices, provide competition, lower the cost, that type of thing. That people, the main concern is that they are worried about losing their own insurance but the president is going to say that you can keep your private health care plan if you are happy with that plan.

And finally, he is going to talk about the fact that he believes he can afford, this government can afford to do this. But we're talking about close to a trillion dollars in tax revenue as well as savings. These are major cuts. These are cuts to hospitals. In some ways cuts to Medicare and Medicaid, the doctors. This is going to be a really tough audience that he is going to be going before, Kiran. And, you know, he's got a tough sell. He absolutely recognizes that.

CHETRY: All right. Suzanne Malveaux will be following this discussion that takes place all day today and certainly in the weeks and months to come as well. Thank you.

HOLMES: Also new this morning, dangerous new warnings from North Korea expected to dominate a meeting between President Obama and South Korea's president, Lee Myung-bak. It's happening tomorrow. Over the weekend, the North promised to step up its nuclear program after the United Nations imposed new sanctions.

Also new this morning, four star U.S. Lieutenant General Stanley McChrystal now in charge of American and NATO troops in Afghanistan. New video you're seeing there just in to CNN shows the formal handover of command to McChrystal from General David McKiernan.

General McChrystal has a long history in special operations. He's expected to bring a more unconventional approach to a war that's turned increasingly violent. Fifty-six thousand U.S. service members now in Afghanistan.

And if you stayed up to watch last night, the Lakers once again NBA champs taking the series 4-1 over Orlando. LAPD now dealing with the fallout from the win unfortunately.

We have to see this after championships often. A lot of people were arrested, about two dozen, after fans celebrating in the streets near the Staples Center in L.A. got a bit out of hand, throwing rocks, bottles, setting bonfires.

Meanwhile, on the court, back to the game, the Lakers winning their 15th NBA title to beat the Magic, 99-86, five-game series. Kobe Bryant picks up his first Shaq-less championship and was named MVP. It's also the tenth championship for the coach, Phil Jackson. He is now the winningest coach in finals history. It's 11 minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the "Most News in the Morning." We're watching breaking news right now out of Iran where protesters are now gathering in the streets. This will be a third straight day of protest in Tehran. They're facing off against secret police armed with batons and baseball bats. They say that the re-election of President Mahmoud Ahmadinejad was rigged.

Iran's Supreme Leader has now said that any legal challenges will be investigated. So what does that mean for America and for Mideast peace?

Well, Richard Haass is the president of the Council of Foreign Relations as well as the author of a new book, "War of Necessity, War of Choice."

Richard, always great to see you. Thanks for being with us.

RICHARD HAASS, FORMER POLICY PLANNING DIRECTOR, STATE DEPARTMENT: Thanks, Kiran.

CHETRY: So Iran's Supreme leader did say that if Mousavi, who is the pro-reform candidate has a complaint, to go ahead and bring it to the Guardian Council and it will be investigated. Does that have any merit, or is that just something to try to tamp down the protest?

HAASS: Iran is going to have to sort out the question of the legitimacy or lack of it of their own elections. It's not something we can really usually engage that much f we, for example, back the reformers, or raise credibility questions for them, legitimacy question for them. The best thing we can do is keep our eye on the ball of what Iran does, support for terrorism, their nuclear program, whoever is the Iranian government. What we care about is what they do.

CHETRY: What about, though, the discontent if there are many millions of voters in Iran who feel that they were disenfranchised, who feel that they did not get a legitimate voice? And how much more does that complicate our effort to deal with whatever Iranian government eventually in place?

HAASS: Well, there almost certainly was fraud. It's impossible I would say that the election was so one-sided and that the ballots were counted so quickly. Again, it shows real signs of insecurity there.

I think the Iranians have got to sort this out. We should watch it. If in the long run it does create real internal pressures, so much the better. But in the meantime, we've got to deal with the government that exists, that's the Supreme Leader. And I'm not sure this really changes that all that much.

CHETRY: This weekend, Vice President Joe Biden said that the United States is going to continue with the central goal of stopping Iran from getting nuclear weapons. How does anything that's changed with this clerical rule and Ahmadinejad's re-election, how does it complicate that, the nuclear issue?

HAASS: Well, it's already complicated to begin with no matter what we were doing.

CHETRY: Right.

HAASS: The Iranians kept enriching uranium. My hunch is that will continue. The real question is where they stop? Do they stop at this level of uranium enrichment, which is not the sort of level you would need for a nuclear weapon or do they decide to increase their level? If that happens, then we've got a major league crisis on our hands as this is real.

CHETRY: Former Massachusetts Governor Mitt Romney was quite critical this weekend when he went out on Sunday's shows about the president's foreign policy in general saying that some of the decisions that have been made have made things worse internationally. Let's listen to what he said. I'd like to get your reaction.

(BEGIN VIDEO CLIP)

MITT ROMNEY, FORMER GOVERNOR, MASSACHUSETTS: What has occurred is that the election is a fraud. The results are inaccurate and that you're seeing a brutal repression of the people as they protest. The president ought to come out and state exactly those words, indicate that this has been a terribly managed decision by the autocratic regime in Iran.

(END VIDEO CLIP)

CHETRY: He also went on to say, Governor Romney, that the president's policies of going around the world and apologizing for America aren't working. North Korea is not just saber-rattling, they've taken the saber out of the sheath. Iran is moving head long toward nuclearization, and Russia is on the same course they were on.

What do you say to the fact that he's facing some criticism from the GOP about not handling foreign policy correctly?

HAASS: It's been five months. The idea that the United States is willing to say to talk to an Iranian government is not a favor for the Iranian government. It's not a sign of weakness. Let's simply see how the negotiations works. If they show progress, great. If not, then the United States can consider the alternatives.

CHETRY: All right. Richard Haass, always great to talk to you. Thanks for joining us this morning.

HAASS: Thank you.

CHETRY: Seventeen minutes past the hour.

(COMMERCIAL BREAK)

HOLMES: Welcome back to the "Most News in the Morning." Twenty minutes past the hour.

We are talking about gas prices. What do you think we're going to talk about? Are you upset? You need to slam the desk? Go a little bit more? Are you thinking all right?

(CROSSTALK)

CHETRY: It wipes out when we talk about, you know, any type of personal stimulus here and there. I mean, these gas prices, every time you fill up you feel it.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Yes, especially if you have a really big car.

CHETRY: Yes. Like a minivan like T.J. and I have.

ELAM: If you have a big old car like T.J., which is very comfortable, I've been in it. It's a very comfortable ride, then you're really feeling the pain.

CHETRY: Very roomy.

ELAM: It's very roomy.

HOLMES: I don't have a long commute. I'm not going that far in Atlanta usually when I drive in to work.

ELAM: That's true.

HOLMES: I burn a lot of gas.

ELAM: That's true. That's true. Well, a lot of people, though, if you think about it, we care about gas prices because yes, it hits us in the wallet. But on top of it, we talk about the consumers. Two- thirds of the economy is getting the consumer to spend. If they're putting their money into gas prices, then they're probably not spending on other things and that's why we care about this.

So let's tell you what's been going on in the land of gas prices. Taking a look at today, the national average for a gallon of gas at $2.67, but you all probably already knew that. Last month it was $2.30. But, you know, a year ago, it was at $4.08. See, I'm trying to show that it's actually still better than it was last summer.

Really, what's behind this is crude oil is really been creeping up over the last few weeks. It's been getting higher. In fact, since the end of last year it has doubled. And a lot of people saying that is really just outpacing itself at this point.

Supply and demand are not meeting up, not meeting together. At this point you've got demand that is not as high as supply. So analysts are saying that this cannot continue to increase at that level.

Now, Kiran's point is that constantly they said that we wouldn't hit $2.50 a gallon and we already beat that.

CHETRY: Probably the end of the summer, right?

ELAM: Right. And we've already done that. But a lot of people saying that this is probably going to start stabilizing a bit and it won't go up to those levels that we saw last year and a lot of people like, yes, right.

But still, demand for gas in this country is still relatively week. A lot of people not spending on it because we still are in a recession. People just can't afford to spend the way they used to. Also keep in mind we always go up towards the summer because that's when people start driving more. So there's a little hope in there that we won't see what we saw last year.

ELAM: I know. We've talked about this before, so you're giving me the face. But it's true that it should not go back up to $4 but still definitely creeping up. Since April 29th, we've gone up every day incrementally since then.

CHETRY: Right. All right. Stephanie Elam "Minding Your Business" this morning. Thanks so much.

HOLMES: Thank you, Stephanie.

Well, stick around. There is a big meeting going on today and it's all about you and your safety when you step on that airplane.

(COMMERCIAL BREAK)

CHETRY: All right. There it is, a picture of New York City this morning where it's raining. It's 60 degrees. A little bit later thundershowers. We're not probably going any higher than about mid- 60s, not quite 70 today here in New York.

Twenty-five minutes past the hour. Airlines, pilot unions and just about every other travel organization have been summoned to Washington today by the FAA. They'll be gathering for a summit to improve airline safety.

Now the tragedy that happened outside of Buffalo in February that killed 50 people underscores the need for a safety summit. It was revealed that the captain and copilot were inexperienced, underpaid, and possibly exhausted.

Also some ground breaking reporting from our own Allan Chernoff has raised some questions about air safety and how we train pilots in the country.

And, Allan, regulators normally wouldn't be holding a safety summit like this unless they thought there were some serious concerns that needed to be addressed.

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: I can't remember the last time we had an airline summit. And clearly, there are major concerns at the Department of Transportation, the FAA. In fact, the Department of Transportation has ordered all of the FAA inspectors to immediately examine the training programs at regional airlines. They're calling today's summit a call to action to improve air safety. Now consider some of the stunning revelations that came out of the NTSB investigation into that Buffalo crash that killed 50 people in February.

First of all, the pilot himself had never received hands-on training with the stall warning system. When it did go off, he responded incorrectly. And the copilot revealed on the cockpit voice recorder that she was afraid to fly in icy conditions, had little experience there.

The inspector general of the Department of Transportation said to Congress last week that it is quite clear the FAA does not have one standard for the main line and the regional airlines. He says this is a major problem and will be talking to the administrator of the FAA later today right after the summit -- Kiran.

CHETRY: All right. Now you also reported on some concerns from the Florida regional there, Gulfstream International Airlines. What's the latest?

CHERNOFF: Yes, just another example of potential problems at some of the regional airlines. Now we had several, in fact, multiple allegations of maintenance problems, scheduling problems there that allegedly forced pilots to work past the FAA limits that are intended to prevent pilot fatigue. The FAA itself did an investigation, found some problems.

Gulfstream told us while these are misunderstandings, they're fighting the FAA charges. They have been fined $1.3 million. It's a proposed fine. Gulfstream is challenging that.

And we also saw some problems potentially with training at Gulfstream as well. Some of the copilots who are serving commercial flights have as little as 250 hours of flight time. That is a fraction of what pilots have at major airlines.

CHETRY: Oh, wow. All right, scary stuff. You'll be following what comes out of this. Hopefully, they'll come to some decisions about whether or not changes need to be made.

Allan Chernoff, thanks so much.

HOLMES: Meanwhile, it's 28 past the hour. Time now to check some of our top stories.

For the first time, Israel's prime minister is endorsing the idea of a Palestinian state. A couple of conditions here, though. Prime Minister Benjamin Netanyahu saying the Palestinians must first recognize Israel as the Jewish state and must disarm.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER (through translator): If we receive a guarantee as to this demilitarized unit and if we have the appropriate guarantees, then we would be prepared to reach an agreement with regard to a demilitarized Palestinian state side by side with the Jewish state.

(END VIDEO CLIP)

HOLMES: But the White House is calling Netanyahu's change of position an important first step. Meanwhile, the Palestinians not exactly seeing it that way. Some calling it an attempt to fool the world.

Also, despite efforts to take back the high seas, Somali pirates are expanding their reach. They reportedly seized a cargo ship in the Persian Gulf. This happened on Friday about 12 miles off the coast of Oman. It's the first time pirates have ventured so close to the Strait of Hormuz where ships carry about 17 million barrels of oil every single day.

Also, Dow futures are pointing sharply lower this morning suggesting a sell-off at the opening bell. Overseas, markets dropped overnight and the dollar is strengthening pushing oil prices below $71 a barrel.

Beatings in the streets and chants of death to the dictator as thousands of angry citizens clash with police in Iran. The protesters say the election was stolen by President Mahmoud Ahmadinejad. Also, the government trying to crush them, they say, and people are joining their calls around the world. We get more now from our Zain Verjee in London.

ZAIN VERJEE, CNN CO-ANCHOR, CNN TODAY AND WORLD NEWS: Kiran, T.J., all over the world, Iranians are reacting to the official results Ahmadinejad won. Here in London a big demonstration is being planned later today. Over the weekend there were protests showing support for Iranians out on the streets in Tehran.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We want to let the world know that this is not the result of our election. This is absolutely fake. They've been cheating and we won't stay calm.

UNIDENTIFIED MALE: What happened to our world? We want our world back to the right man who is Mr. Mousavi.

(END VIDEO CLIP)

VERJEE: Here in London they held some signs up saying things like this, the cheater. Or how about this one? "No to dictatorship. Free Iran." And the most common one we saw out on the streets was this one, "Where is my vote?"

Iranian expatriates live in major cities around the world, most seen as seemingly anti-Ahmadinejad. They sent in absentee ballots. And many have been so furious, saying their vote hasn't been counted and that they don't believe the votes could have been counted so fast. Protesters here in London are saying that they will keep demonstrating for as long as the protests continue in Iran. T.J., Kiran.

CHETRY: Zain Verjee for us this morning. Thanks. Also new this morning, what's it like to be vice president with President Obama as your boss. Well, Joe Biden said the job is everything he hoped it would be and more. He appeared on "Meet the Press" on Sunday saying President Obama promised he would be involved in big decisions and he's keeping his word.

(BEGIN VIDEO CLIP)

JOE BIDEN, U.S. VICE PRESIDENT: There's not a single decision he hasn't asked me my view. Whether I'm the absolute last person, I can't guarantee you that. But I know I'm one of the last people that gets an opportunity to make the case to him. And when he has a tough decision, and if he's abroad and I'm here, or vice versa, he picks up the phone and he calls. I think he values my opinion. He doesn't have to accept my opinion, but he's kept his end of the bargain. This has been a much better job than I (INAUDIBLE).

Look, the biggest deal is I used to sit there and react to Supreme Court nominees. I actually got to be in a position to help choose who the nominee would be. It's a difference, it's reactive versus being proactive. And I like the proactive part.

UNIDENTIFIED MALE: You've never been -- you've never worked this close to a president before. Are you sure you don't want to be one?

BIDEN: No, no. Look, we have the order of this operation correct. We have the order correct. He's the president, I'm the vice president.

(END VIDEO CLIP)

CHETRY: Well, Biden also cited weighing in on the Supreme Court selection process he had just mentioned as one of the tough decision as well.

Well, President Obama's half-brother reportedly has a book deal. The Associated Press says Simon & Schuster will publish it in January of next year. There's not much known about George Obama. He's 27. He lives in Kenya. He shares the same father as President Obama. But the two never met as children.

(COMMERCIAL BREAK)

HOLMES: All right. Here we are, 35 minutes past the hour. Here's a look at some of the top videos right now on CNN.com. Getting rid of the geese. New York taking aim at the Canada geese, as they brought down a U.S. Airways flight. Remember the one that Captain Sully ditched safely into the Hudson River. I don't think the dog there is part of the plan. But the city plans to trap and kill about 2,000 of the geese.

Also, from your first Gameboy to your iPhone. You remember Tetris, don't you? It's lived through generations of video game platforms. And sold 70 million copies. CNN speaks to the man who created one of the most popular and addictive games of all times. Kiran. CHETRY: T.J., thanks. Well, a judge will not let disgraced ex- governor of Illinois Rod Blagojevich leave the country. He wanted to star in a reality show that is being taped in Costa Rica called "I'm a Celebrity, Get Me Out of Here!". His wife went instead. So what does he do? Well, he makes a cameo on a comedy show mocking the entire scandal and himself.

Jason Carroll joins us now with a look. Someone say shameless. I mean, he's facing some pretty serious charges...

JASON CARROLL, CNN CORRESPONDENT: Sure.

CHETRY: That could put him for a quite a long time in prison. And in this play, they are just basically making fun of him in every way, shape, and form, and he decides to make a cameo.

CARROLL: He decides to make fun of himself as well. You know, it's interesting. He's got some mounting legal bills, but no idea how much he was actually paid for this one-time performance. The former Illinois governor did make a special appearance. It was Saturday night at Second City's production of "Rod Blagojevich, Superstar," in Chicago. As the curtain rose, there was Blagojevich with his arms stretched out, mimicking a crucifixion. The play, a parody of "Jesus Christ Superstar," lampoons his rise and fall in politics. He opened the production with a monologue.

(BEGIN VIDEO CLIP)

ROD BLAGOJEVICH, FORMER ILLINOIS GOVERNOR: What did she say to you before you go out on stage -- I thought was very interesting. And that is we've got your back. I've been in politics, that's not anything anybody hears.

(END VIDEO CLIP)

CARROLL: As Blagojevich left the stage, the cast launched into a song asking what kind of idiot sells a Senate seat. Of course, Blagojevich was indicted on charges he tried to sell President Obama's old Senate seat. The former governor stayed after the show to participate in some improv, where he poked fun at his hair.

(BEGIN VIDEO CLIP)

BLAGOJEVICH: That brush he has is too small.

(END VIDEO CLIP)

CARROLL: Yes, in case you missed it there. He said "that brush he has is too small." The reviews are mixed. Some audience members cheered throughout the show. Others found it just a little bit awkward.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We laughed a few times, he was quiet a few times. It was queasily uncomfortable, even sitting behind him a few times. UNIDENTIFIED FEMALE: He was funny, making light of himself, making jokes about himself.

UNIDENTIFIED FEMALE: You have to give him props for that. I mean, he has a good spirit about it.

UNIDENTIFIED MALE: Very personable. He has a fabulous memory of people, events. You know, he just overstepped. I mean, it's greed and ego and money.

(END VIDEO CLIP)

CARROLL: Well, the play was supposed to have its final performance this month, but due to its popularity, Second City has decided to extend it until August. If convicted, Blagojevich is facing as much as 20 years in prison on 19 counts, including racketeering and extortion. This was supposed to be a one-time deal, but with this guy Blagojevich, you just never know.

CHETRY: You don't. That's the scary part. Jason Carroll for us this morning. Thanks.

CARROLL: All right.

CHETRY: Thirty-nine minutes past the hour.

(COMMERCIAL BREAK)

(MUSIC PLAYING)

CHETRY: Welcome back to the most news in the morning. It's forty-two minutes after the hour. We have a quick check at the AM rundown. These are stories coming up in the next couple of minutes.

Pay czar, drug czar, cyber czar, Washington thinks you've gone a little czar crazy. So how much power do these people really have?

Also, long bus lines, no air conditioning and empty shelves at the grocery store. Why the Cuban government is cutting services this morning. We're live from Havana.

And gay TV characters go mainstream. How some advertisers are now trying to lure the gay audience.

HOLMES: It is forty-two past the hour. Let's fast forward through the stories that will be making news later today.

President Obama returns to his Chicago roots at 12:15 Eastern this afternoon to address the American Medical Association on the need for health care reform. The nation's largest group of doctors opposes his idea to create a public health insurance plan.

Also in California, it is deadline day for lawmakers there. Governor Arnold Schwarzenegger demanding they pass a budget by today in order to secure loans to keep the state operating through December. If no agreement is reached, California will literally run out of money next month.

Also NASA scrambling to repair a leaking gas line on the shuttle Endeavour's fuel tank. They are trying to get this thing fixed so they can blast off by Wednesday. If the problem, however, is not fixed, NASA plans to launch a lunar reconnaissance orbiter to the moon instead.

Rob Marciano, what are you doing?

I can see you in the shot, Rob, practicing your golf swing or something. What are you doing over there?

ROB MARCIANO, AMS METEOROLOGIST: I've been working on my setup, you know, some question why I would want to rebuild the swing at this point. But you know, Tiger did it, and I'm on my way. You know that's not for public knowledge.

Anyway, there it is. Red zone in the mid section of the weather map there. Too many monitors in New York. That's for sure. Severe thunderstorms in this area. Hot in the South, very unusually warm down south, and still unusually cool well to the north. So that trend will continue. Severe thunderstorm watch in for eastern parts of Kansas for the next couple of hours. These are thunderstorms, a lot of heavy rain, a little bit of hail, definitely some lightning and straight line winds. So be aware of that.

And thunder and showers and some fog and just enough to kind of tickle the airports once again and make you bring the umbrella for the New York Metropolitan Airports today. Fog, clouds, showers, maybe some thunderstorms later on. Detroit, Cincy and San Francisco just some low clouds, afternoon thunderstorms for places like Orlando, Tampa and Atlanta later on today. 87 degrees, the high temperature, 97 degrees in Dallas.

Almost forgot, check out this video out of Denver. Funnel clouds in and around the downtown area there. Didn't touch down. We had 11 reports of tornadoes elsewhere. But this was enough of a scare to send them running from their seats at Coors Field where the Rockies was taking on the Mariners. So they stopped play during the sixth inning and got things rolling later on in the afternoon. Not exactly golf weather out there, although you can hit a lot farther at 5,000 feet. That's not a bad place to have a golf vacation if you want to pump up the eagle.

HOLMES: Sorry about that, Rob, I just saw you out of the corner of my eye on a preset monitor, and I saw you practicing your golf swing.

CHETRY: And yes...

HOLMES: Sorry about that.

CHETRY: And Rob, one question, can you see our preset monitors? Because it's (INAUDIBLE)

MARCIANO: Yes. You know, I can't. There may be a way to dial those up, and then I'll be watching. I'll get you. CHETRY: A lot of crazy stuff happens in the minutes before each commercial break.

HOLMES: You have no idea. People have no idea. Rob, appreciate you, buddy. See you soon.

MARCIANO: All right.

CHETRY: Well it's Fozzie Bear's worst nightmare. Get it. Check it out.

(BEGIN VIDEO CLIP)

CHETRY: Remember Fozzie, he hated when people threw tomatoes at him. When he makes bad jokes, people throw tomatoes at him. I sometimes feel like Fozzie here on the set.

HOLMES: I don't remember that.

CHETRY: Well, this is really a -- you should take part this then and relive your youth. How about it? A thousand revelers taking to the streets. It is the annual tomato festival that happens in Columbia. Fifteen tons of overripe tomatoes. You know, they got nothing else to do with them, I guess. They don't want to make spaghetti sauce, or you know, can them for future use. Instead they throw them and have a big old blast. And if it looks like a sloppy disaster to clean up, the one in Spain at the end of August is 30 times bigger and messier. I guess that's the consolation.

HOLMES: Fozzie the bear. I did not.

CHETRY: Fozzie. Remember?

HOLMES: The Muppet?

CHETRY: He was a Muppet, right?

HOLMES: Was he?

CHETRY: Yes.

HOLMES: OK.

CHETRY: And he made jokes all the time. I'll show you a picture.

HOLMES: All right.

Well, that's what we'll be doing.

CHETRY: You can find him on the Google.

HOLMES: All right. Forty-six past the hour. Stay here.

(COMMERCIAL BREAK)

(MUSIC PLAYING) CHETRY: Forty-nine minutes past the hour. Look now at the White House this morning. In D.C., it's mostly cloudy. Up here in New York, 67 degrees, a little bit later some isolated thunderstorms getting up to a high of 76 degrees.

Well, the Obama administration has been handing out the czar title left and right. Carol Costello joins us now to talk about what's behind the powerful title. How many are we up to now?

CAROL COSTELLO, CNN CORRESPONDENT: Can you believe it? We're already up to 20. And President Obama has only been in office for what five months, six months. Critics say President Obama has gone completely czar-crazy. As I said, appointing more than 20 of them so far. Critics are not so happy about that saying there's a reason behind the czar madness. And it's not good.

(BEGIN VIDEOTAPE)

COSTELLO (voice-over): That's the movie version of "Ivan the Terrible," the legendary sixteenth-century czar of Russia. Who wouldn't quake in their boots at sight of him? But what about drug czar Gil Kerlikowske, or economic czar Paul Volcker, or even environment czar Carol Browner? They don't exactly inspire an "Ivan the Terrible" kind of fear.

UNIDENTIFIED MALE: Deliberative.

COSTELLO: But they certainly inspire concern. Republican senator John Barazo(ph) calls czars like Carol Browner Obama's puppet master because she has not been confirmed by Congress and there's no way for Congress to hold her accountable for her actions. You know, sort of like a czar.

JOHN WALTERS, BUSH ADMINISTRATION DRUG CZAR: Well, with the title czar, you are asking for it.

COSTELLO: John Walters was drug czar for President Bush, armed with a big staff and a major policy voice. He understands why some are sensitive about the title.

WALTERS: People have given their lives and risked their lives to make sure there's nothing like a czar every in terms of a tyrant.

COSTELLO: And President Obama's critics are playing into that Russian tyrant thing. Republican Eric Cantor compared the president's economic policies to former Russian President Vladimir Putin. And Rush Limbaugh?

RUSH LIMBAUGH, RADIO TALK SHOW HOST: He's a statist. He's an authoritarian. He wants to rule. He doesn't want to govern.

COSTELLO: But the University of Virginia's Larry Sabato, who wrote the "Year of Obama" says the title czar is mostly to make the tough government job sound more attractive.

LARRY SABATO, UNIVERSITY OF VIRGINIA: If you're going to recruit somebody from the private sector and you're asking them to do without several million dollars a year in compensation, I suppose it's a nice balance to be able to say but, you'll be a czar.

COSTELLO: Still there are some of Obama's own czars are backing away from the title. The new pay czar Kenneth Feinberg telling NPR -

KENNETH FEINBERG, PAY CZAR: I recoil when I hear or read in the press that I'm some type of compensation czar, like I'm going to issue imperial edicts against company officials. I think that's a very poor choice of a noun describing my role.

COSTELLO: Feinberg's title? Special master. His job to oversee compensation practices at the companies bailed out by the government.

(END VIDEOTAPE)

COSTELLO: Instead of correspondent, Kiran, can I also be a special master? It's crazy, isn't it? If you're wondering how much power a czar or special master actually has, well, less than a secretary, more than a staffer, or as the Obama administration told the "Chicago Tribune," the czars are needed to focus on the president's toughest tasks such as overhauling the health care system, which will require cooperation from several agencies. The czar's job is to move among the agencies and coordinate. So there you have it.

CHETRY: All right. So I guess team leader didn't have enough ompp to it, huh?

COSTELLO: No, that's not enough to give up the salary.

CHETRY: All right. Carol Costello for us this morning. Thanks. And for more on the czar factor, check out Carol's blog. It's at cnn.com/amfix.

HOLMES: Well, even in good economic times, you wouldn't necessarily describe Cuba's economy as a bustling one, but right now, things have gotten downright desperate.

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(MUSIC PLAYING)

HOLMES: Well, in Cuba, lines are growing longer as supplies grow shorter. The cash crunch is battling an already faltering economy, from government services to basics like groceries, it seems everything in Cuba is increasingly scarce. Shasta Darlington live for us in Havana this morning. Shasta, just how difficult of a situation are people there facing?

SHASTA DARLINGTON, CNN CORRESPONDENT: Well, good morning, T.J. You know, for months now, we've been hearing about job losses and home foreclosures around the globe. But until recently, many Cubans thought this international crisis was a capitalist disease that wouldn't affect them.

(BEGIN VIDEOTAPE) DARLINGTON (voice-over): Cubans are feeling the squeeze. They wait longer for buses. And pack in when they arrive. Public transport has been reduced, part of the new austerity measures to grapple with the global economic crisis. To which Cuba is not immune.

UNIDENTIFIED MALE (through translator): This month, the buses have gotten worse.

DARLINGTON: Says this student.

The government has also ordered air-conditioners off and lights dimmed, at least part of the day. The heat is on for factories like this furniture-maker. They have to reduce energy consumption or face sanctions. Officials say they've already taken steps.

UNIDENTIFIED FEMALE: In the case of electric driers, for example, we've shifted all the work to the morning hours.

DARLINGTON: She says.

They hope to save enough electricity to avoid the massive blackouts that plague Cuba after the fall of the Soviet Union when the island was short of fuel.

This global slowdown has hit Cuba hard. Revenues from key exports like nickel are down. The price of imports like food is up. So Cuba is running short of hard currency. But with most companies and salaries controlled by the government, the people were largely sheltered until now.

(on camera): In Cuba, no one's going to go hungry. This ration book gives Cubans enough to get by on for about two weeks. Now it's distributed once a month. And this month people got - let's see, we've got sugar, eggs, potatoes, rice, chicken, beans, all for less than $1.

But even this basic basket of goods is shrinking. This month, the quota of beans and salt was reduced.

(voice-over): It could get worse. Some foreign suppliers have told us they aren't getting paid so they're halting deliveries. Cubans say they're used to hardship. But they'd hoped they'd put the hardest years behind them.

(END VIDEOTAPE)

DARLINGTON: Many people still hope that the Obama administration will step in and either lift or at least relax the U.S. trade embargo against Cuba. They say they could give them a sorely needed shot in the arm, at least in the economy, T.J.

HOLMES: All right. Shasta Darlington for us in Havana this morning. Thank you so much.