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American Morning

Will Obama Abandon Promise Not to Raise Taxes?; Iran Detains Three U.S. Hikers; Mystery Ends, U.S. Navy Pilot's Remains Found in Iraq; Cash for Clunkers Program a Success; Tackling Health Care Reform; Deal Reached on Jackson Custody Battle; Passengers Injured After Plane's Emergency Landing; Digital Diplomacy; Better Care For Less?

Aired August 03, 2009 - 06:00   ET

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


JOHN ROBERTS, CNN ANCHOR: And a good Monday morning to you as we begin a brand-new week. It is the 3rd of August. Thanks for joining us on the "Most News in the Morning." I'm John Roberts.

ALINA CHO, CNN ANCHOR: Good morning.

ROBERTS: Good morning.

CHO: Good morning, everybody. I'm Alina Cho. Kiran Chetry has the morning off. A lot to get to following several developing stories we're going to be breaking down for you in the next 15 minutes, including news about your money. Encouraging new signs the recession could be easing, or is it?

Plus a big question for the White House. Is the president thinking about going back on a campaign promise and raising your taxes?

ROBERTS: An urgent push for information as Iran detains three American hikers. We're learning more now about who they are and how they may have strayed into Iranian territory from Iraq. We're following development with the global resources of CNN this morning.

CHO: And Henry Louis Gates Jr. talking about his new friend, Cambridge police Sergeant James Crowley. Gates says the two hit it off at the White House. And guess what? They're planning to meet again. We're going to hear the Harvard professor's first public comments since the two sat down for a beer in Washington.

ROBERTS: Gates even joked that he would try to get Crowley's kids into Harvard if he stopped arresting.

CHO: Yes, that's right.

ROBERTS: Well, we begin this morning with a question that's sure to have millions of middle-class Americans talking this morning. Is the White House looking to raise your taxes to help foot the bill for health care and slow a ballooning federal deficit? It's something two of the president's top moneymen were asked this weekend and neither one of them ruled it out.

(BEGIN VIDEO CLIP) TIMOTHY GEITHNER, U.S. TREASURY SECRETARY: We've got to do what's necessary. The critical thing is people understand when we have recovery established, led by the private sector, and we have to bring these down -- deficits down very dramatically. We have to bring them down to a level where we're not borrowing from the world is stable at a reasonable level. And that's going to require some very hard choices and we have to try to do that in a way that is not add to the unfairly burdens that the average Americans already faces.

LAWRENCE SUMMERS, DIRECTOR, NATIONAL ECONOMICS COUNCIL: There's a lot. There's a lot that could happen over time. But the priority right now, it's never a good idea to absolutely rule things -- rule things out no matter what.

(END VIDEO CLIP)

ROBERTS: So, if the administration does green-light a tax increase, how big of an about face would that be? Try 180 degrees, considering what the president himself said during the campaign last year.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If you make under $250,000, you will not see your taxes increase by a single dime. Not your income tax, not your payroll tax, not your capital gains tax. No tax.

(END VIDEO CLIP)

ROBERTS: Ed Henry is the only reporter live at the White House this early. And, Ed, what are you hearing here? Were Geithner and Summers out this weekend sort of greasing the rails for an inevitable tax hike, putting a little trial balloon here?

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: It certainly seems so. If it had been of them, it could have been a mistake, could have been a gaffe. But for the two top moneymen to leave the door that wide open suggested a trial balloon. The key is going to be exactly what you put your finger on? Who is going to get hit here?

The president made a very bold campaign promise, anyone making under $250,000 a year will not be taxed. I guarantee you that today's daily briefing with Robert Gibbs is going to get quite interesting to try to pin him down, exactly how does this administration define middle class.

I can also anticipate how he's going to push back, which is, he's going to point out, look, it's not just about the president trying to deal with a debt and deficit he put together. He inherited about $9 trillion in debt from former President Bush. Nevertheless, the idea of taxes being increased is going to play right into the Republican line of attack that this president is spending too much money, John.

ROBERTS: So this whole idea that taxes might get increased and it might get increased on people making less than $250,000, in which would run contrary to the pledge the president made. How much of an impact is that going to have during the August recess for the president's effort to sell this health care plan, which by CBO estimates is going to add about $240 trillion -- $240 billion. Sorry, you can't mess with these members. They get so big -- $240 billion to the deficit?

HENRY: That's the key question. You put your finger on it. How will people in Middle America react in the month of August as these members of Congress fan out across the country and start doing town halls? What I can tell you is that it could have a devastating impact on the president's health plan because he has been making the case to keep filler of this is that, look, my plan is going to lower costs. If, instead, in some of these CBO reports as you say suggest, costs are going to balloon in the early years to pay for it. And now the administration is opening the door to raising taxes to pay for those costs that could really blow up in the faces of a lot of members of Congress across the country.

That's why the key is going to be, is it going to hit people under $250,000 or not? They have not been specific enough. They were not in those interviews that you just mentioned. And the president has been pretty vague about the details of this health plan. That's why on Wednesday, there will be another town hall. The president is going to be in Indiana.

Is he going to start spelling out more details now that the door is open to tax increases? A lot of people are going to be demanding more answers, John.

ROBERTS: All right. Well, we'll keep watching that very closely -- billion, trillion, a hexa (ph) trillion, I mean you lose track sometimes, Ed. Sorry about that.

HENRY: Billion there, billion there, et cetera, pretty soon it's real money, John.

ROBERTS: It really is. Hey, $100 bucks is real money to most people.

Ed Henry, thanks so much. Ed Henry at the White House this morning.

CHO: Either way, it's lots of zeros.

You know, of course, when you talk about the economy, the big question in cities and towns across the country, is the worst behind us? This morning, former fed chairman Alan Greenspan seems to think it is.

(BEGIN VIDEO CLIP)

ALAN GREENSPAN, FORMER FEDERAL RESERVE CHAIRMAN: I'm pretty sure we've already seen the bottom. In fact, if you look at the weekly production figures from various different industries, it's clear that we've turned perhaps in the middle of last month, the middle of July.

(END VIDEO CLIP)

CHO: Christine Romans "Minding Your Business," do you believe him?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, maybe he's right. But look, even if he is right, the Obama administration is still in a tough position because you're going to get a jobs number on (INAUDIBLE) that's likely to show more people lost their jobs. The unemployment rate keeps moving higher. It could for the whole next year. So even if you've got all the people, the smartest people in the room, by the way, that one in particular who didn't predict that all of this would happen and didn't think that the housing market would crash, even if all the smartest people in the room think that the worst is behind us, you still have what people are going to be feeling on main street. It's going to be tough over the next year.

Great, a recovery may be coming. What's it going to feel like? It's still going to hurt. And so that's the political problem for the Obama administration.

CHO: That's right. You know, Larry Summers, as you know, came out, spoke out over the weekend on CBS and said, "Never a good thing to rule things out," meaning hiking taxes on the middle class. So what's that about?

ROMANS: The bottom line here is that we are spending so much money that a lot of people want to know how we're going to reel that back in eventually.

When the economy starts to grow again, when this whole period is behind us and you have economic growth, will the economy grow fast enough and sharply enough that you won't have to have dramatic tax increases for everyone? And frankly, a lot of people think that tax increases are the only way out of this.

You either have to cut spending dramatically which, as we know, our elected leaders do not like to do, or you have to raise taxes. And a lot of people who I talked to, a lot of people who study tax structure say you can't just tax the top people in the country forever until you raise enough money. And we're talking about an $11 trillion national debt. As one of my colleagues says, we can't afford ourselves. Somehow we have to pay for it and that has to come -- people are talking about sooner rather than later, how are we going to pay for it.

ROBERTS: Some troubling news out over the weekend that, you know, there are millions of millions of people who are unemployed right now collecting unemployment benefits and that those benefits may soon run out leaving them with no source of income at all.

ROMANS: That's right.

ROBERTS: And that the government is looking at addressing this.

ROMANS: And again not ruling out this thing. People we were talking to right now about taxes are not ruling out some sort of extension of benefits, trying to work with Congress to find a way to extend again jobless benefits. The "New York Times" says $1.5 million people are facing their jobless benefits run out.

CHO: Yes.

ROMANS: And for a lot of people when there are six job applicants for every job opening, for a lot of people this is the only way that they're putting food on the table.

CHO: That's right.

ROMANS: So, I think you're going to be talking -- but again, we have to pay for that and so we have to borrow money to pay for that. And that means somehow we have to pay it back down the road.

ROBERTS: Vicious cycle.

ROMANS: It's why we talk about what happens to taxes.

ROBERTS: Christine Romans, "Minding Your Business" this morning. Christine, thanks so much.

We're also following developing news this morning. American officials are desperately trying to learn more about the status of three Americans now being held in Iran. They apparently strayed into Iranian territory while hiking in the mountains near the border with Iraq. And this morning we're learning more about the trio. CNN's Susan Candiotti is following that story for us.

SUSAN CANDIOTTI, CNN CORRESPONDENT: John and Alina, good morning. So many questions, so much worry about three young Americans held against their will in Iran.

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): Kurdish officials have identified the three Americans being detained as Joshua Fattal, seen here on his Facebook page, as well as Shane Bauer and Sarah Shourd, both appearing on Internet Web sites. They've been staying at a hotel before setting out to a scenic area for a hike in the mountains near Admed Awa in Iraq.

Despite warnings to be careful, they apparently strayed into Iranian territory across an unmarked natural border with northern Iraq. A friend who stayed behind at a hotel because he was ill said he last heard from them Friday. They called to tell them they were surrounded by Iranian soldiers during their hike. Fattal's mother who lives in Pennsylvania confirms their captivity but is declining requests for on-camera interviews. She spoke with CNN radio by phone.

LAURA FATAL, MOTHER OF DETAINED U.S. HIKER (via telephone): My husband and I are eager for the best welfare and conditions for our son, Josh, and for the other two companions he's with. And that is our only concern -- his welfare and best conditions for him.

CHRIS FORAKER, FRIEND OF JOSH FATTAL: Josh is a very curious person. And he is interested in the world. He wants to -- wants to eat the world whole.

CANDIOTTI: Friends say the three have spent time or have lived in Western Europe and the Mideast and are seasoned travelers. Sarah Shourd appears on a Web site that mentions her travel. She's also named on Shane Bauer's Web site. He's a photographer.

The American hiker, Shon Meckfessel, who stayed behind because he was ill is now at the U.S. embassy in Baghdad, according to his grandmother. Meckfessel is a graduate student at the University of Washington. The State Department says it has asked the Swiss consulate in Iran to try to make contact with the detained Americans because the U.S. itself has no diplomatic relations with Iran.

(END VIDEOTAPE)

CANDIOTTI: It's a very sensitive situation especially given the strange relations between the U.S. and Iran -- John and Alina.

CHO: Susan Candiotti, thank you.

Other stories new this Monday morning, Harvard professor Henry Louis Gates Jr. says the Cambridge police officer who arrested him is a "nice guy." Gates spoke during a book signing on Martha's Vineyard over the weekend. His first public comments, by the way, since sitting down for a couple of beers at the White House. Gates and Sergeant James Crowley really hit it off apparently in Washington and look forward to their next meeting.

(BEGIN VIDEO CLIP)

HENRY LOUIS GATES JR., HARVARD UNIVERSITY PROFESSOR: You know what, I liked Crowley. I thought that we would like each other and that -- you know, I don't know what we'll talk about. But I asked him if he would have lunch with me one-on-one. I asked him maybe we could go to a Red Sox game together, maybe we can go to a Celtics game together and maybe we can have dinner with our families. You know, why not? You know, I offered to get his kids into Harvard.

(END VIDEO CLIP)

CHO: Sense of humor, too. On a more serious note, Gates says he has received numerous death threats and that the university has actually encouraged him to move.

ROBERTS: Follow-up in this is just incredible. In just a few hours' time, the legal battle over Michael Jackson's estate will play out in a Los Angeles courtroom. Michael's mother, Katherine, says she's being kept in the dark by the two men who have temporary control, and there's word of a custody agreement regarding Jackson's three children. We're going to have a live report coming up later on this hour.

CHO: And it was a soft summer weekend at the box office, but Adam Sandler and company will take it. Sandler's new film "Funny People" debuted at number one with nearly $23.5 million in ticket sales. "Harry Potter and the Half Blood Prince" came in second. And last weekend's top movie "G Force" finished third.

Now this story gives a whole new meaning to a class action lawsuit. No job? Sue your college. A recent grad from New York City's Monroe College says she wants the $70,000 she spent on tuition back. According to a lawsuit filed last week, Trina Thompson says the business school did not do enough to help her find a job.

Thompson earned her bachelor's degree back in April. The school insisted it does help graduates find jobs and is calling the lawsuit completely without merit.

Well, that's an interesting way to deal with it.

ROMANS: Wow.

ROBERTS: It is.

ROMANS: You could try to sue your parents. Look, you raised me, I couldn't get a job.

ROBERTS: You raised me wrong.

CHO: What struck me is $70,000 is actually in today's numbers not a lot to pay for tuition.

ROMANS: And a lot of universities frankly are people who graduate in the '70s and '80s. They're going back to alumni hall and finding a lot of help. So, her situation -- a lot of people like her trying to get a job right now but it's tough out there.

CHO: People...

ROMANS: That's right.

ROBERTS: The abdication of responsibility in this nation is sometimes stunning, is it not?

CHO: How do you feel about it, really?

ROBERTS: Well, how about a $9 airfare between New York and Nantucket? Do you like that?

Yes, well, it's a reason to keep watching your Twitter account. Twitter could become your new best friend for finding a cheap airfare. We'll tell you how, coming up next.

(COMMERCIAL BREAK)

ROBERTS: Welcome back to the Most News in the Morning. The Obama administration is rolling out the big guns to show that Africa is a foreign policy priority. Secretary of State Hillary Clinton leads her seven-nation tour today. Her first stop, Kenya, the birthplace of President Obama's father.

There she'll be speaking about trade. She'll also meet with Somalia's president, who's government is barely clinging to power. And later on this hour, we're going to take a look at how Secretary Clinton is putting a high-tech spin on diplomacy.

CHO: Going up for the 13th straight day, it will cost you more this morning for a gallon of gas. According to AAA, the national average is now $2.55 a gallon. That's not more than a penny overnight.

ROBERTS: And it does pay to follow Twitter. Right now, two airlines are offering Twitter-only specials. Recently JetBlue posted, listen to this, a $9 one-way trip from New York City to Nantucket. United Airlines also offering what it calls "twares." That would be Twitter fares. The flyers have to act fast, though. The deal sometimes only available from one to two hours. It's kind of like buy it now.

CHO: Yes, it's like trying to get a ticket to a hot concert.

ROBERTS: Because an hour from now it won't be around.

CHO: You know?

ROBERTS: Yes.

CHO: You're not going to be able -- maybe a small slice to be able to get in.

ROBERTS: And who knows how many tickets they actually have. But, you know, it's an interesting marketing technique.

CHO: Nine bucks for one way, I'll take it.

This morning, a mystery ever since the start for the first Iraq war has been solved. The Pentagon now confirms that remains found in the Iraqi desert are those of Navy Captain Scott Speicher. His plane was shot down west of Baghdad on the first night of the first Gulf war. Here's CNN's Pentagon correspondent, Chris Lawrence.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice-over): Captain Scott_Speicher's children were toddlers the day he disappeared. Now his remains are coming home to college students. A nearly 20-year mystery. Was he captured? Tortured? All this time the answer was buried in the Iraqi sands and solved by a single tip.

MIRIAM NOVELLY, HIGH SCHOOL CLASSMATE: It's a bittersweet ending. I mean, it's great that we have finally accomplished an ending, but it is bittersweet.

LAWRENCE: Last month an Iraqi citizen told American troops about the crash site. When the Marines arrived, another Iraqi said he was there when Bedowend (ph) found Captain Speicher already dead and buried his body. Searching the site, U.S. troops found multiple skeletal fragments and bones. And when military investigators compared Captain Speicher's dental records with the recovered jawbone, it was him.

SEN. BILL NELSON (D), FLORIDA: The whole family is just so grateful that the Navy stayed on this.

LAWRENCE: But the military made mistakes, starting hours after Speicher was shot down when the Pentagon declared him dead.

DICK CHENEY, SECRETARY OF DEFENSE: The total U.S. losses are one aircraft and one individual.

UNIDENTIFIED MALE: The Pentagon has identified a United States Navy pilot as apparently the first U.S. serviceman missing in action in the Persian gulf war.

LAWRENCE: Some in the military thought Speicher had ejected and might still be alive. In 1994, they proposed a secret mission to survey the crash site. But according to senior defense officials in the room, chairman of the Joint Chiefs, General John Shalikashvili (ph), scrubbed the plan and said, "I do not want to have to write the parents and tell them their son or daughter died looking for old bones."

In 2001, the Pentagon changed his status to missing in action. And there were accusations he was being held captive by Saddam Hussein. After the invasion of Iraq, some probably found Speicher's initials scratched into the wall of an Iraqi prison. And investigators even excavated a grave site in Baghdad but it was not him. Now the vigils can end. But one fact remains.

NELSON: We walked away from a downed pilot. It was done by mistakenly declaring him dead and then they didn't go and search for him. And that was a mistake. And that is very important that we never repeat that mistake again.

(END VIDEOTAPE)

LAWRENCE: Captain Speicher's family says they appreciate all the troops who never gave up and kept searching all these years. But they got to be wondering, is there any chance that he survived that crash? And would an immediate search and rescue have made any difference -- John, Alina.

CHO: It's tough as it is, at least for the family there's a little closure now.

ROBERTS: Yes, finally. They have been worrying and wondering for...

CHO: For all those years.

ROBERTS: ... all those years, 18 years long. Wow.

It's coming up on 20 minutes after the hour. Cash for clunkers, one of the post successful government programs ever. Who knew?

Well, last week the House voted in another $2 billion for the program to keep it going. Might have some tougher sledding in the Senate, though. We'll take a look at all that coming right up. Stay with us. (COMMERCIAL BREAK)

ROBERTS: The administration's clash for clunkers program is proving to be a huge success so much so that it might be extended. Christine Romans here "Minding Your Business" this morning.

So, we've got some action in the House late last week. The Senate is yet to act though, right?

ROMANS: That's right. And this would be transferring energy stimulus funds to fund another $2 billion of the cash for clunkers.

Guys, this is what a successful stimulus program looks like. This is proof that the American consumer is not dead just very, very savvy and price conscious and will make a big purchase if you give them something. I went to listen to somebody in San Francisco this weekend who decided it was time to turn in the old clunker.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I traded in a car, got $4,500 for a car I paid $4,000 four years ago. It had 220,000 miles on, so I think I made a great deal.

(END VIDEO CLIP)

ROMANS: Great deal across the country. I mean, the dealers are reporting to us that they were jammed all weekend. Some of them actually extending their hours, staying open later, trying to let everybody get in.

Ford is going to report its car sales later today. Ford is saying that July was a good month. In fact, July may have been the best month that they've seen in a year.

Well, that's all relative, I should say. The best month in a year is one of those things you really have to qualify. So a lot of people out there doing this. And the National Association of -- the National American Dealers Association, automobile dealers association says many cars were sold in the last week of July, as in the first three weeks of July.

CHO: Wow.

ROMANS: So it's really been this huge demand because of this deal. Now, the people on the other side will say, come on, this is just -- no one has been buying a car for the past year. They've just been afraid that they got to pay for it some way. Another $2 billion.

CHO: Republicans are quick to point out it was a billion.

ROMANS: Right.

CHO: And now it's another r$2 billion potentially, and $3 billion program, who's going to pay for it?

ROMANS: Well, we pay for it.

CHO: Right.

ROMANS: We borrow money to pay for it as I like to point out always. Also, if you live in Wisconsin and New Hampshire, I want to point out that until now you had to prove that you have insurance on this vehicle for the last year. But you don't have to have insurance in Wisconsin and New Hampshire.

So, that was a problem for some people in those states who wanted to do the cash for clunkers. They've lifted that. So now in Wisconsin and New Hampshire, it's OK. You can go and take your clunker even though if you don't have proof of insurance.

CHO: If it's Monday, it's "Romans' Numeral" day.

ROMANS: "Romans' Numeral" -- 200,000 is the numeral today. 200,000. What do you think?

ROBERTS: The number of cars that were sold in the month of July.

ROMANS: It's the number of cars I think cash for clunker will do just in the first...

ROBERTS: Cash for clunkers.

ROMANS: ... just in the first billion. And so, think, if you have another $2 billion, how many cars you'll have moving off the lot if, indeed, it is a successful the next couple of chunks as the first billion was. But rare -- rare to see the White House and Congress so quickly jumping over the weekend to make sure that this thing is going to continue.

CHO: Right before the August recess.

ROMANS: That's right.

ROBERTS: Well, we'll see if the Senate follows soot.

ROMANS: That's true.

ROBERTS: It might be a little more difficult.

ROMANS: That's true.

ROBERTS: Christine Romans "Minding Your Business" this morning. Christine, thanks so much.

We have some breaking news to tell you about coming up right after the break. A Continental Airlines flight from Rio de Janeiro to Houston had to be diverted to Miami after encountering severe turbulence. Reports of some 10 to 15 people were injured in that flight. You can see ambulances there at Miami International Airport. There's the plane courtesy of our affiliate WPLG.

We'll have the latest on that coming up. We've also got the Truth-O-Meter. And this morning a special edition of the Truth-O- Meter. We are going to be doing a health care fact check, only health care this morning. So make sure you stick around for that.

Twenty-six minutes now after the hour.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN breaking news.

ROBERTS: And the breaking news to tell you about this morning as this Continental Airlines plane Flight 128 from Rio de Janeiro to Houston apparently en route encountered severe turbulence shaking the passengers up. There are 10 to 15 people according to some reports who were injured. The plane diverted, made an emergency landing at Miami International Airport. This pictures coming to us courtesy of our affiliate WPLG.

While you're looking at them, it looks like they're just...

CHO: Yes. I mean, I think it looked like they were carrying somebody out on a stretcher. He wasn't walking out. But 10 to 15 injuries, as you mentioned, not sure how severe at this point. But...

ROBERTS: Yes. It looks like they're taking a passenger off there, which is unusual to take them off in one of -- that's the tip -- that's the catering truck there that comes and usually just, you know, brings the drinks and food and whatnot. But they do appear to be using that to take people off the plane.

Just to the right of that in the picture, just outside of the picture, there are a number of ambulances that have pulled up on the plane. Apparently, a dozen ambulances and police vehicles are up there by the plane.

Looks like a 777. Can't quite tell. But again, that's Continental Airlines Flight 128 from Rio de Janeiro to Houston, made an emergency landing in Miami after encountering some severe turbulence. We'll keep watching the story this morning and we'll get you the latest information as soon as we can.

CHO: Yes. We're not sure. I mean, obviously, it looks like it's pretty clear in Miami there. But not sure if weather was a factor in the moments before it landed. But originally from Rio headed to Houston, Continental Flight 128, 10 to 15 injuries a little odd as you mentioned, John, that they were taking passengers out on what appears to be the catering truck and now lowering that down.

ROBERTS: Yes.

CHO: And obviously, they're letting the passengers off one by one. But we're watching this story very, very closely right here on CNN.

Again, Continental Flight 128 bound from Rio de Janeiro to Houston making an emergency landing at Miami International Airport due to severe turbulence. ROBERTS: Coming up now in a half hour, new this morning. An entire town in China has been quarantined after an outbreak of the pneumonic plague. Officials say two people have died and close to a dozen others are infected. The World Health Organization says pneumonic plague can be transmitted directly from one person to another and if left untreated can kill within 24 hours.

CHO: Some more help may be soon on the way to more than a million laid off Americans. Christina Romer, who leads the White House Council of Economic Advisers, says the Obama administration is working with Congress right now to extend their unemployment benefits. The government has already extended unemployment benefits beyond the standard 26 weeks to as many as 79 weeks.

ROBERTS: And so much for laying low. A week after resigning, former Alaska Governor Sarah Palin spoke at a National Rifle Association event in Anchorage. Meantime, it looks like Senator John McCain still has his former running mate back. McCain telling CNN's "STATE OF THE UNION" that he is saddened by the vicious attacks on Palin and expects that she will continue to be a political force.

With so much information out there about health care reform, it is easy to get confused. This morning, we are doing some fact checking in a special health care edition of the Truth-O-Meter.

Bill Adair, founder and editor of Politifact.com. He's the man behind the Truth-O-Meter, and he's in Washington for us this morning.

Bill, it's good to see you today.

BILL ADAIR, EDITOR, POLITIFACT.COM: Good morning, John.

ROBERTS: So the August recess is almost upon us. And then the members are going to go back to the local districts and they're going to hear a lot from people on the health care plans that are out there in Congress. And there are a number of them.

What do you expect the rhetoric to go here? Is it going to intensify or might it die down a little bit?

ADAIR: Well, I think it's going to intensify. You know, August is supposed to be the dog days here in Washington and around the country. But I think what it's going to do is give both sides a month, five weeks, I guess, before Congress comes back to really mobilize. So I think things are just going to ratchet up.

ROBERTS: All right. Well, let's run through the Truth-O-Meter. Some of the statements that are out there. And not just statements that politicians have made, but a lot of what's out there on the Internet as well, because there's so many people have been getting these e-mail chains that say health care is going to do this. Health care won't do that. So let's run some of these through the Truth-O- Meter. Here's the first one. Here's the first claim, and this comes in an e-mail chain that says, quote, "All non-U.S. citizens, illegal or not, will be provided with free health care services."

What did the Truth-O-Meter say about that?

ADAIR: We gave that one our lowest rating, "pants on fire."

ROBERTS: Oh.

ADAIR: And this one -- this chain e-mail has really circulated widely. We've heard -- we've gotten copies of it from many of our readers and we've heard from congressional offices that are getting lots of inquiries about it. In this case, there's no such thing in the bill. They are just making that up. And so we gave that one "pants on fire."

ROBERTS: There are lot of things that are being made up. And let's run this one through the Truth-O-Meter to find if it's made up or if it is, in fact, fact. It's a claim about how the government will affect private health care plans.

It says, quote, "All private health care plans must conform to government rules to participate in a health care exchange."

What did you find?

ADAIR: That one gets a "true" on the Truth-O-Meter. That's one of the few claims in this chain e-mail that's actually correct. The health care exchange is actually sort of the heart of the president's plan and of the congressional Democrats plan that provides for a way that people without coverage would get it. So that one gets a truth.

ROBERTS: All right. Got a third statement here about who makes decisions regarding your health care. And we've heard this one a lot. We're heard this from politicians. It's also out there in e-mail chains. It says, quote, "In the health care bill, the health choices commissioner will decide health benefits for you. You will have no choice. None."

What does the Truth-O-Meter say about that one, Bill?

ADAIR: That one also gets a "pants on fire."

ROBERTS: Two "pants on fires" this morning.

ADAIR: That one is just ridiculously false. If you read the bill, Congress actually will set minimum benefits for people who are covered under this plan, which is really what's happening now under the coverage that you get from your employer. There are certain minimum standards usually that employers have to meet in those plans. And the commissioner they talk about here will just enforce those rules. So the commissioner doesn't decide when you get coverage and when you don't.

ROBERTS: All right. Now let's find something that the president has been saying about health care and run that through the Truth-O- Meter. He's talking here about whether or not Americans will lose their health insurance if no reform is enacted.

Let's listen to what he says. (BEGIN VIDEO CLIP)

OBAMA: If we don't act, 14,000 Americans will continue to lose their health insurance every single day."

(END VIDEO CLIP)

ROBERTS: If we don't act, 14,000 Americans will lose their health insurance every single day.

What did the Truth-O-Meter say about that one, Bill?

ADAIR: We gave that one a "mostly true" on our Truth-O-Meter. That one was -- we were kind of skeptical about that one because that's a lot of people.

ROBERTS: Yes.

ADAIR: Fourteen thousand every day. But we found the source of the numbers was a scholar from the urban institute, well regarded, the methodology was solid. The only reason we took it down to a mostly true is that some people will continue to get coverage under the stimulus bill, under a Cobra provision. You know, the thing that allows you to keep getting coverage. So we took that one down to a, "mostly true" on our Truth-O-Meter.

ROBERTS: So, is that mostly a factor of people losing their jobs?

ADAIR: Exactly. When, you know, -- of course, when you lose your job, you're going to lose your health care coverage. What you do have under the stimulus bill, subsidized continued coverage.

ROBERTS: Got you.

ADAIR: And so, that's the reason we took it down to a "mostly true."

ROBERTS: Bill, thanks for clearing some of this up this morning. It's fascinating to see what's "true" and what's "pants on fire".

ADAIR: It's a great time to be in the fact-checking business.

ROBERTS: It is. Great. We really appreciate you doing it.

Bill Adair for us this morning.

Bill, thanks so much.

By the way, you can read Bill Adair's full political scorecard at cnn.com/amfix.

CHO: We're learning new information about a custody deal involving Michael Jackson's three children. We'll have details just ahead.

It's 35 minutes after the hour.

(COMMERCIAL BREAK)

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

Michael Jackson's family moving quickly to sort out his affairs, including who gets custody of his three children. Now it appears the issue of custody has been settled out of court.

CNN's Jason Carroll here with details on that.

Debbie Rowe, the mother of two of the children -- biological mother -- there was some talk that she might fight for custody, but it appears there is a deal now, right?

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Right.

CHO: With Jackson's family.

CARROLL: Deal definitely done. But there's still a fight going on. Katherine Jackson still basically saying she is being kept in the dark when it comes to how is the money is being allocated in terms of Jackson's estate. We'll get to that in a moment. But for now Katherine Jackson and Debbie Rowe have been working behind the scenes to come to an arrangement for custody of Jackson's two eldest children, Prince and Paris with Debbie Rowe, now word of a deal.

At this point in the agreement, Katherine Jackson will have custody of the children. Debbie Rowe will get visitation as recommended by a psychologist. There will be no financial payments made to Rowe except for the continuation of spousal support payments, which Michael Jackson personally agreed to after his divorce from Rowe. Katherine Jackson's lawyer saying, "We were all united in our goal to do what is best for Michael's wonderful children, and both Ms. Jackson and Debbie Rowe were on the exact same page."

Now, also, there was another statement that came through from Rowe's attorney also commenting on the deal saying, "The parties engaged in a dignified discussion that resulted in a dignified outcome. The sole consideration between the parties was the best interest of the children."

Rowe's attorney also commenting on the deal, as I said. Attention now will turn to Jackson's estate. Today, a judge will consider who will have permanent control for now. John Branca, Jackson's long-time personal attorney and John McClain, a music industry executive and long-time friend, will have temporary control. Katherine Jackson, not happy about that at all. She wants them to answer questions under oath if they are fit and able to administer the estate. CNN senior legal analyst Jeffrey Toobin says Katherine Jackson is walking a very fine line.

(BEGIN VIDEO CLIP)

JEFFREY TOOBIN, CNN POLITICAL ANALYST: I don't think she has any rights. If Michael Jackson had wanted her to be his executor, he could have named her. He didn't. This I think is not a legally defensible action.

(CROSSTALK)

Very carefully, she is not yet contesting. She is asking for documents. She's asking for certain information, but she is, you know, she's no dummy.

(END VIDEO CLIP)

CARROLL: Well, she's definitely no dummy. He's right about that. Her lawyers are expected to seek access to documents pertaining to her son's estate. It seems she wants a say in how Jackson's vast fortune is being spent. Lawyers said to CBS such measures would not be necessary if Ms. Jackson is appointed a co-executor of the estate.

We'll have to see and see if that happens during today's hearing. But Katherine Jackson's attorney also saying that Jackson's estimated worth now is at about $2 billion.

CHO: Wow.

CARROLL: That is a lot of money to haggle over there.

ROBERTS: Yes. That seems to be a factor of ten separating the low from the high.

CARROLL: Yes.

ROBERTS: All right. Jason Carroll for us this morning.

Jason, thanks so much.

We've been telling you about the breaking news this morning. Continental Airlines Flight 128 from Rio de Janeiro to Houston scheduled to be a Boeing 767, a ten-hour flight, had to be diverted to Miami airport after an encountered severe turbulence, and a number of people were injured. There you see the plane on the ground at Miami International Airport. We're going to be talking with somebody from the Miami-Dade Fire Rescue coming up right after the break. So stay with us.

Forty-two minutes now after the hour.

(COMMERCIAL BREAK)

ROBERTS: Coming up on 45 minutes after the hour. Live look at Washington this morning. Boy, it was a rainy day there yesterday. Seventy-two degrees right now, going up to a high of 88. Lots of sun in the forecast for today, though. It will be pretty muggy, though.

Let's fast forward now to stories that will be making news later on today. A key group of lawmakers hoping to clear some hurdles on health care. Members from the Senate Finance Committee will be meeting all week on Capitol Hill even though a vote is not expected before the August recess. This morning at 9 a.m. Eastern, we could learn learning more about who hid money from the IRS in Swiss Bank accounts. In court documents from the hearing between Switzerland-based banking giant UBS and the Justice Department, the 52,000 offshore accounts held around $14.8 billion.

And later on this afternoon President Obama is going to honor the 2008 Sprint Cup champion Jimmie Johnson at the White House. Johnson is number 48 Chevy will also be making the trip to 1600 Pennsylvania Avenue.

We've been telling you this morning, too, about some breaking news involving a plane that had to make an emergency landing on its way between Rio de Janeiro and Houston.

You got some more on that for us this morning.

CHO: Yes, that's right. It's Continental Flight 128. As you mentioned, John, headed from Rio to Houston, made an emergency landing at Miami International Airport this morning.

Those are some live pictures there of the helicopter obviously getting situated. But you see the emergency vehicles courtesy of our affiliate WPLG in Miami. The plane, we are told, experienced severe turbulence. Though we're not sure exactly where. We do have word of at least 26 injuries, four of them serious.

Joining us on the phone right now, Lieutenant Elkin Sierra with Miami-Dade Fire Rescue.

Good morning, Lieutenant. So glad you're with us.

Tell us to the best of your knowledge what happened. I understand you got the call at 5:08 a.m., and that the plane landed at 6:00 a.m.

LT. ELKIN SIERRA, SPOKESMAN, MIAMI-DADE FIRE RESCUE (via telephone): Correct. The aircraft contacted the airport. They contacted our fire station here with a heads up of about 40 minutes more or less that make us aware of the incoming flight with injuries on board.

Reportedly we had 15 injuries. It became 26 total. At least 22 are stable, multiple injuries, bumps and bruises ranging from back pain to neck pain. There were four considered serious, not critical, and they are being treated as well. Now the airline will decide whether or not to leave the uninjured passengers on the aircraft and continue the flight or to disembark the entire aircraft. But so far we're treating 26 patients.

CHO: We're looking at the emergency vehicles there on the scene. What was your response to the situation this morning?

SIERRA: Well, we prepare for these -- with the incident by calling our logistical (ph) division, that they bring extra equipment. We're very -- we're using the backboards or the backboards for the back injuries and neck pains to transfer these patients who may have worse injuries upon examination in the E.R. So we have multiple paramedics. We have 60 personnel on board. Just assessing these patients, treating these patients, ascertaining what they need on a second flight basis.

CHO: Lieutenant, we saw some pictures earlier this morning, and I just want you to be able to confirm this for us. But it appears you were using, employing some unusual techniques to get the passengers out of the plane. It appeared as though some of the passengers were being taken out on stretchers and onto what looked like a catering truck.

Is that true?

SIERRA: Well, that's (INAUDIBLE) when we're transporting multiple patients that are stable. Now we do have rescue units that provided advanced care for the more serious patients. Be it something that the medical origin that happen as a result of this traumatic injury or serious traumatic injuries. But to move the masses, the walking wounded, if you will, we will use a big vehicle, which could range from, in this case, a catering truck to a public bus that we use for the incident.

CHO: Elkin Sierra, lieutenant and spokesman with the Miami-Date Fire and Rescue.

We thank you, Lieutenant.

SIERRA: You're welcome.

ROBERTS: So, according to Miami Fire and Rescue, the plane encountered turbulence about an hour, a little more than an hour perhaps before it was to land.

Let's bring in our Rob Marciano now. He's tracking the weather in the area.

Rob, I guess that would have put the plane somewhere around Jamaica to southern coast of Cuba, just off Guantanamo Bay when it hit that turbulence.

What was going on in that area at that time?

ROB MARCIANO, AMS METEOROLOGIST: They had a little flare up of thunderstorms there. You may remember during the Air France crash, we talked about this Inter Tropical Convergence Zone where turbulence is bad. And that would be right around this area, northern South America. The Caribbean for the most part clear, but, again, as you mention, right around Jamaica, there was a flare up of thunderstorms there. But north of there into the Gulf, we didn't see much of anything.

And as far as what the National Weather Service puts out for turbulence advisories across the lower 48, there weren't any advisories across anywhere north of Cuba. So if they were to hit it, there would be that little flare up around Jamaica. But what we show you on the satellite doesn't always translate to what they are feeling in the air. And it's just one more lesson when that pilot puts on that seat belt sign to sit down, when this stuff happens. You know, you might want to take his advice.

Back over to you.

ROBERTS: Yes, because it's true. I mean, you can have turbulence in a thunderstorm, but you can also get what's called clear air turbulence as well. Right, Rob?

MARCIANO: Yes. And sometimes that's the worst kind.

ROBERTS: All right. Rob Marciano for us this morning.

Rob Marciano, thanks so much.

He'll be with us a little later on. Tracking all the weather across the country today -- tell you what you're in for.

Secretary of State Clinton embraces new media. How is she doing? And how is she using high-tech to sell diplomacy? We'll tell you coming up.

It's 10 minutes before the top of the hour.

(COMMERCIAL BREAK)

ROBERTS: And we're back with Most News in the Morning.

Secretary of State Hillary Clinton is about to embark on her latest diplomatic journey today. A seven-nation tour of Africa. Since she has been on the job, Clinton has put her stamp on the State Department, embracing new media to reach out to Americans and restore the U.S. image abroad. This morning, our Jill Dougherty is looking at Clinton's high-tech spin on diplomacy.

(BEGIN VIDEOTAPE)

(BEGIN VIDEO CLIP)

HILLARY CLINTON, U.S. SECRETARY OF STATE: Text to Secretary enables anyone with a cell phone to send me a question, which I hope you'll do.

(END VIDEOTAPE)

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: YouTube, Facebook, Twitter, Flickr, welcome to Hillary Clinton's digital diplomacy.

ALEC ROSS, SENIOR ADVISER FOR INNOVATION: What we're now able to do is connect government to people, people to people, and people to government.

DOUGHERTY (on camera): You can even text the secretary and send her a question. Let's ask her what she thinks is the most important issue she's dealing with right now.

(voice-over): Secretary Clinton is using a variety of new media. Text messaging to raise money for Pakistani refugees.

CLINTON: Americans can text the word "SWAT" S-W-A-T, to the number 20222, that's 2-0-2-2-2, and make a $5 contribution.

DOUGHERTY: She sends a team of CEOs from technology giants like Google and Twitter to Baghdad, to jump start Iraqi's online revolution.

CLINTON: We are connected online.

DOUGHERTY: She held digital town halls like this one in the Dominican Republic where citizens can watch online and participate.

(on camera): Secretary Clinton even has an interactive map where you can track her travel. On her latest trip, she started out in Mumbai, India, then flew to New Delhi, and now she's in Thailand.

(voice-over): Alec Ross, Clinton's innovation guru says it's not just the medium, it's the message.

ROSS: Technology in and of itself is not what's interesting and what's important. What's interesting and important are the goals that technology can help produce.

DOUGHERTY: During Iran's recent street protest, the State Department intervened to keep Twitter up and running for demonstrators to communicate.

CLINTON: We communicate literally at the speed of light.

DOUGHERTY: The State Department said since inauguration, its Facebook friends have increased 250 percent, YouTube views are up 418 percent and Twitter up more than 600 percent.

Jill Dougherty, CNN, Washington.

(END VIDEOTAPE)

ROBERTS: Well, can health care really get better and cheaper? Our Jessica Yellin finds one health care group that says yes -- yes, it can. You'll see how they are doing it just ahead.

It's 54 1/2 minutes after the hour.

(COMMERCIAL BREAK)

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

Better health care and cheaper cost, is that combo really possible? Well, that's the goal of President Obama's health care reform. And one health care group says we can do both at the same time.

Our Jessica Yellin shows us how they are doing it.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Do you feel me pushing?

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Cardiologist Peter Berger is looking inside a patient's heart and getting graded on his work.

UNIDENTIFIED MALE: We're in the heart and we're taking some pictures.

YELLIN: The grade is based not just on the success of this procedure but on the overall care his patient receives, sometimes up to months later.

DR. GLENN STEELE, GEISINGER HEALTH SYSTEM CEO: Everybody that's involved in the care is focused on the outcome, not their piece of the action.

YELLIN: It's part of a radical new approach to medicine that's made Geisinger Health System an Obama administration poster child for reform. Geisinger has cut costs and improved quality by standardizing how procedures are done, developing a team approach and emphasizing preventive and follow-up care.

STEELE: All of those things are thought or have been proven to be related to the probability of you having a perfect outcome.

YELLIN: Some of their innovations -- checklist. The medical team follows steps to ensure there are no mistakes like making sure the right patient is on the table.

UNIDENTIFIED MALE: Can you tell me when your birthday is?

YELLIN: Another innovation -- a warranty -- instead of charging for each test or procedure, patients can pay a flat fee for treating their heart condition. If there are any complications, the patient gets follow-up care for free.

DR. PETER BERGER, CARDIOLOGIST: This warranty system just provides additional incentive for us to do the right thing.

YELLIN: A third innovation -- patient partnering -- a nurse is assigned a patient with a chronic condition and checks in regularly. Nurses can even get a readout of a patient's weight every day, if he gains weight...

JAMES CONNELLY, PATIENT: Dan's going to be on the phone the next morning looking for an explanation.

YELLIN: According to Geisinger, partnering has led to a huge decrease in hospitalizations. Dr. Berger says these innovations have helped make his patients healthier and Geisinger says in some instances they've saved up to seven percent a year.

(END VIDEOTAPE)

YELLIN: But can this be duplicated on a national scale? Doctors at Geisinger say some parts more easily than others. For example, it should be easier to expand the use of electronic medical records, but harder to get primary care physicians, nurses and specialist to collaborate and change the way they approach medical care - John, Alina.

CHO: Jessica Yellin for us.