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American Morning

Deconstructing "Don't Ask, Don't Tell"; Selling a $3.8 Trillion Budget; Exposing America's Biggest Rip-Offs; Iran-U.S. Relations

Aired February 02, 2010 - 08:00   ET

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


KIRAN CHETRY, CNN ANCHOR: Well, good morning to you. It's Tuesday, February 2nd. It's Groundhog Day. Welcome to AMERICAN MORNING. I'm Kiran Chetry.

JOHN ROBERTS, CNN ANCHOR: Good morning to you, I'm John Roberts. Here are the big stories we'll be telling you about coming up in the next 15 minutes.

The future of "Don't Ask, Don't Tell, "a very hot topic on Capitol Hill today. Defense Secretary Gates sent to testify about dismantling the ban on openly gay soldiers serving in the military.

Our Pentagon correspondent, Barbara Starr, reports it could be a year or more before anything gets done.

CHETRY: Ten American missionaries arrested in Haiti expected to finally get a hearing today. They were put in jail on charges of illegally trying to take 33 children out of the country. Some parents are now saying they gave their kids away so that they wouldn't suffer.

We'll have all sides to the story and get the latest on the children caught in the middle.

ROBERTS: President Obama selling his $3.8 trillion budget to the people who will pay for it saying, it's not what he wanted to send to Congress but it's the one he had to send.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We won't be able to bring down this deficit overnight, given that the recovery is still taking hold and families across the country still need help.

(END VIDEO CLIP)

ROBERTS: A town hall meeting in New Hampshire pushing his plan to create jobs, but the big question: Will Middle America buy it?

First this morning, though, the deconstruction of "don't ask, don't tell." The first step begins in just a few hours. That's when Defense Secretary Robert Gates appears before the Senate Armed Services Committee. He'll discuss lifting the ban on gay soldiers serving openly in the military.

Our Pentagon correspondent, Barbara Starr, is outside of the Capitol Hill hearing room where Gates will testify.

And, this is a process, Barbara, that could take quite a bit of time. Oh, I should say you're inside, not outside. Hi.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: We did -- hi there. We did make it inside.

And, you know, John, you're absolutely right. It will be high noon when Defense Secretary Robert Gates takes the chair right here to talk to the Senate Armed Services Committee in this room about lifting the ban on "don't ask, don't tell."

Everything today is clearly aimed at avoiding any political fireworks. Gates will tell the committee he's going to appoint experts to study the issue for another year. Why is he doing that? Because he knows convincing Congress and his own troops may be the biggest hurdle ahead.

(BEGIN VIDEOTAPE)

STARR (voice-over): The president made his intentions clear.

OBAMA: This year, I will work with Congress and our military to finally repeal the law that denies gay Americans the right to serve the country they love because of who they are.

STARR: But the stone-faced Joint Chiefs of Staff didn't react to the sensitive matter. We now know more about what they are thinking.

A senior Pentagon official tells CNN the chiefs are expected to support the president, but they will tell him to what extent they believe allowing gays to openly serve will hurt morale and readiness of the force. The official says of the chiefs: "all they want is a little bit of time" to come up with their ideas on how to implement a change in the law if it's approved by Congress.

As a first step, Defense Secretary Robert Gates is expected to call for no longer discharging people who are outed by others. Over the last 12 years, nearly 11,000 people have been discharged from the military for being gay. Defense officials privately say the appetite to enforce the law is declining. Many say the debate is now how to live with the change.

MICHAEL O'HANLON, BROOKINGS INSTITUTE: One school of thought says, just do it. It won't be that big a deal.

STARR: Existing regulations governing sexual behavior may be enough to allay concerns about living in close quarters. But that may not work for everybody.

O'HANLON: We can talk about this delicately or we can just be fairly direct. There are a lot of 18-year-old, old-fashioned, testosterone-laden men in the military, who are tough guys. They're often politically old-fashioned or conservative. They are not necessarily at the vanguard in many cases of accepting alternative forms of lifestyle. (END VIDEOTAPE)

STARR: So, John, what do the troops really think? Well, you know, they reflect society. It's clear that there's a wide range of opinions out there. But a lot of people will tell you that right now, young troops are more concerned with practical matters, and that's staying alive in the war zone, than worry about the sexual orientation of their colleagues, still the most sensitive issue right now. And today, it's all about avoiding those fireworks, simply saying the Pentagon understands what the president wants but it's going to take its time to make it happened -- John.

ROBERTS: What's your overall sense of this, Barbara? Will it pass Congress?

STARR: Right now, it seems a little doubtful. There's a lot of opposition to it. But it's going to depend a lot on what -- I suspect like other issues -- what constituents tell their representatives, whether they are in favor and how far Congress is willing to go -- John.

ROBERTS: Barbara Starr inside what will certainly be an interesting place to be this morning -- Barbara, thanks so much.

KIRAN CHETRY, CNN ANCHOR: The U.S. military would not be the first, by the way, to allow openly gay soldiers to serve. Here's more now in an A.M. extra: More than half of the 28 NATO countries allow gays in the military. That includes the U.K., Canada, and Germany.

ROBERTS: Russia will allow gays in the Army, but only during times of war. In some other countries like Iran, well, there's not much information about gay serving in the military, but that's because President Ahmadinejad does not recognize homosexuality.

CHETRY: Well, later this hour, Carol Costello reports on the dollars and cents of "don't ask, don't tell." What it's been costing you, the taxpayer, to keep the policy in place. And also, what it might end up costing all of us if we do away with it.

ROBERTS: America's terror boss says the feds can tackle any Super Bowl terror threat. U.S. Homeland Security Secretary Janet Napolitano took a personal tour of Miami's Sun Life Stadium yesterday in preparation for Sunday's NFL showdown.

(BEGIN VIDEO CLIP)

JANET NAPOLITANO, HOMELAND SECURITY SECRETARY: We are, as was mentioned, working hand-in-hand to insure that Super Bowl XLIV goes off smoothly and safely. We are doing everything we can think of in preparation to make sure that it is a great event.

(END VIDEO CLIP)

ROBERTS: A thousand federal, state and local law enforcement personnel will be on hand for Sunday's massive security operation. Al Qaeda has frequently expressed interest in attacking high-profile sporting events on U.S. soil.

CHETRY: Well, there are also new developments this morning. The case of 10 Americans arrested in Haiti. The government there says that they were trying to take 33 children out of the country without permission. Haiti's prime minister, who called them kidnappers, is now saying that the courts could show leniency if the missionaries were acting in good faith.

They're expected to get a hearing in less than two hours. This group could also be heading back to the United States, because the Haitian court system was crippled in the earthquake. And this morning, some parents are admitting to us that they actually gave their young children away because -- as they told our Karl Penhaul -- they lost everything and they felt they were too poor to care for them and that they would have a better life with someone else.

(BEGIN VIDEO CLIP)

KARL PENHAUL, CNN CORRESPONDENT: "I put them on the bus with the Americans with my own hands. I played with them up until the last minute and then I kissed them both good-bye and told them, 'don't forget daddy.'"

"I told her she should go and I promised one day I would go and see her. After she left, I was very sad."

(END VIDEO CLIP)

CHETRY: Well, an orphanage run by Austrians in Haiti is now taking care of the kids that were caught in the middle of all of this.

But for every orphan leaving the chaos of Haiti, there are thousands left behind. So, who will be there to help them? Joining us as we look for answers on a "AC 360" special series, "Children of Haiti," airing at 10:00 p.m. Eastern.

ROBERTS: Also new this morning: parts are now on the way to Toyota dealers nationwide to fix the problem with gas pedals that can stick and can cause sudden acceleration. Toyota says it's a mechanical problem and the repair work can be done in about 30 minutes. A company executive says they investigated a possible electronic problem, they found none.

CHETRY: Also, voters head to the polls in Illinois primaries today. They'll be picking Republican and Democratic nominees for President Obama's old Senate seat. Right now, it is held by, as you know, Roland Burris. He was appointed by former Governor Rod Blagojevich who is later impeached.

ROBERTS: Well, the groundhog has spoken, and chances are you're not going to like what he had to say. Punxsutawney Phil emerged this morning from his ceremonial tree stump and Gobbler's Knob in Pennsylvania and his handlers delivered the bad news. (BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Phil proclaims, if you want to know next, you must read my text. As the sky shines bright above me, my shadow I see beside me, six more weeks of winter it will be.

(END VIDEO CLIP)

ROBERTS: So, Phil is the famous guy, but we like Staten Island Chuck a whole more this morning. The New York groundhog didn't see his shadow. And according to Chuck, the warm weather will arrive a little earlier than usual. He didn't fight the mayor this year.

(CROSSTALK)

ROBERTS: Mayor Bloomberg was thankful for.

CHETRY: Yes, he looks so thrilled, doesn't he? Given that it was part of the job description, you got to hold up this rodent every year and say, all right, at least it's really a good news. Spring is coming.

Rob Marciano, you know, a couple people have been asking on Twitter and the like, doesn't winter last the same amount time and doesn't spring the same amount of time no matter what the groundhog say?

ROB MARCIANO, AMS METEOROLOGIST: Well, yes, but, you know, the weather could be different either way. So, there is some relevancy...

CHETRY: All right. Who do you believe then, Phil or Chuck?

MARCIANO: I don't believe anyone. But they sure -- you know, we haven't mentioned General Beauregard Lee, which I think is somewhere in Georgia.

CHETRY: That's right.

MARCIANO: And it's been raining here. So, if he sees a shadow, then I know it's been a tip in the moonshine just a little bit too much.

All right. Let's go over to the radar and show you the snow that is making its way to the north and east. Notice, on western Pennsylvania, you got a hole there. So, that may be why Phil saw his shadow and clouds increasing there across parts of Staten Island, which is maybe why Chuck didn't see his.

All right. What we're going to see throughout the day today is some rain moving up the Atlantic Seaboard. Some of that could be mixing with snow, kind of icy through the North Carolina-Virginia area, and a little bit of light snow across the Great Lakes. Another storm developing into Texas and also on the west coast.

Forty-one for the high in D.C., 36 degrees in New York, about where you should be for this time of year, and 33 degrees is the high temperature for Chicago.

February 5th, just a few days away. It's National Weatherman's Day. So, let's get our priorities in check here, John and Kiran, and stop paying attention to that rodent so much. ROBERTS: Is that when you get a coal in your stocking?

MARCIANO: Usually.

ROBERTS: Or is that -- is that Christmas?

MARCIANO: Both. Both actually.

CHETRY: Wow. National...

MARCIANO: Send us...

CHETRY: I have two presents to buy now, for you and for hubby.

MARCIANO: Exactly. Appreciate (INAUDIBLE).

CHETRY: Sorry. Thanks, Rob.

ROBERTS: We'll get your snowball.

CHETRY: We can find one.

Well, Sir Richard Branson is at it again. Check this out, it's a so-called underwater plane. How cool is this? It can dive up to 100 feet. Branson plans to rent the Necker mymph (ph) for $25,000 a week to -- is that a typo? Particularly that name of that thing.

ROBERTS: There's such a thing as a mymph.

CHETRY: You know, with Branson. Oh, it's a nymph. OK. That sounds better.

For $25,000 a year, the guest of this private island, by the way, in the Caribbean. See if you can get four of that, you can afford to rename it a mymph. Anyway, by the way, it costs roughly $88,000 for a week's stay, and then once the cockpit is open, riders will have to wear their scuba masks during the dive.

It sounds right up your alley.

ROBERTS: It's just something else that Richard Branson needs to have.

CHETRY: Yes.

ROBERTS: Another toy.

CHETRY: How about it?

ROBERTS: Ten and a half minutes after the hour. Reaction to President Obama's budget. He's got a big town hall up in New Hampshire today. John Avlon and Jennifer Donahue with an independent perspective -- coming up right.

Stay with us.

(COMMERCIAL BREAK)

ROBERTS: Thirteen minutes after the hour. Welcome back to the Most News in the Morning.

In just about three hours time, President Obama will head to a town hall meeting in New Hampshire. It's a campaign style event to sell his nearly $4 trillion budget and calm some independent voters who are already fuming over way too much government spending.

Joining us now, in New York, is John Avlon, columnist for TheDailyBeast.com and author of "Independent Nation." And in Manchester, New Hampshire, Jennifer Donahue, a political analysts and feature contributor at the "Huffington Post."

And, Jennifer, I know that you've been spending a lot of time there in New Hampshire talking to a lot of folks. What's the mood up there as President Obama prepares to go up to Nashua?

JENNIFER DONAHUE, POLITICAL ANALYST: Well, one of the biggest promoters of this event has been the New Hampshire Tea Party Coalition, which is a loose coalition of different groups, will turn out people. They actually flooded the Web site on the White House which had a closed time of 5:00 p.m. on Saturday, but you really couldn't get a ticket, even hours leading up to that deadline.

So, you can expect tea partiers to be in the Nashua high school town hall. I don't think that they'll be impolite necessarily. It's possible there will be some signs if they can get them in or some t- shirts.

But in New Hampshire, people know how to have a town hall meeting.

ROBERTS: Oh, yes.

DONAHUE: They're not disruptive, even when they disagree for the most part.

ROBERTS: Yes.

DONAHUE: But it will be a packed house. I think the small business message will be well-received and I think Obama can look forward to a lot of people really liking the meat and potatoes of that part of the $3.6 trillion budget.

ROBERTS: You know, taking together with Vermont, you know, in New Hampshire and Vermont, probably the most independent-minded place in the nation. Why are having...

(CROSSTALK)

DONAHUE: Four out of 10...

ROBERTS: Yes?

DONAHUE: Four out of 10 voters in New Hampshire are registered undeclared.

ROBERTS: There you go.

John, we haven't had a chance to talk to you since the budget was unveiled yesterday. What are the independent voters in your circle saying about all of this and the massive amounts of red ink, $1.6 trillion this year, $1.3 trillion next year?

JOHN AVLON, THEDAILYBEAST.COM: Well, you can tell. And the president is trying to focus on the issue number one, again, the economy, trying to reach out to independent voters. The problem is he's got two opposing ideas in here. He's got deficit spending to spur job creation and then modest steps to try to control the deficit in the out years.

But the problem is, even if he's cutting 126 programs, freezing spending over a plateau, people get the sense that it doesn't really compare to the over -- present spending we've seen. So, I think to really gain credibility to independents, he's got to go big down the line. Nixon and China moved entitlement reform, only that is going to really get in front of others attention out there.

ROBERTS: Did you just say entitlement reform after we have had a year of healthcare reform?

AVLON: I did. I think that is the kind of big show he has to make.

ROBERTS: That is what we love about John, Jennifer. He likes to dream big.

DONAHUE: I know, he is a big dreamer. And you know, I think he is going to say deficit reduction next.

AVLON: The president might just say that once in a while. The question is, you know, what is the credibility. But, that's what independent voters want. I mean, independent voters have been deficit hawks since the days of Ross Perot. There is a lot of anger. There is a sense of deficit spending.

DONAHUE: And Republicans.

AVLON: And Republicans.

DONAHUE: And Bill Clinton.

AVLON: Yes, exactly right. And I think independents look at the days of Bill Clinton and Newt Gingrich as divided government as being sort of a great era for restraining deficit spending.

DONAHUE: You know it is interesting. Newt Gingrich was up here last weekend too, talking about deficit reduction and running for president.

ROBERTS: You know, just reflecting on what John said, you know, I guess that's exactly what you want to do when you are president going into your first mid-term election, and you have lost the old Senate seat in Massachusetts, it has been in Democratic hands since 1953, touch that third rail in politics, the social security system. That's a good idea.

DONAHUE: Yes, there is a third rail he should touch today, but I don't think it is going to be in his talking points, which is that there is so much fervor for high-speed rail, from Montreal, going through New Hampshire, down through Boston and to New York, especially the (INAUDIBLE) where he is having his town hall meeting, to Boston corridor. If they had their political ears open and they went into that high school and announced that that is going to break ground, he would win the Superbowl in New Hampshire. There would be no stopping democrats in 2010 and 2012 if they announce that here today.

ROBERTS: John, let me turn you to the road ahead. She said the tea party years are going to be there. The Scott Browners are going to be there, as always in New Hampshire town hall, it's spirited, but it's polite. You don't see that same sort of wave of anger that we saw in a lot of town hall meetings over the summer. But in terms of that the dissatisfaction among independent voters, is that a wave that Republicans might ride all the way through to November?

AVLON: Well that's certainly what they rode to the Scott Brown seat in Virginia and New Jersey. Now a lot of independent voters, the reason deficit spending bothers them so much, is that it feels like generational theft. It's generationally irresponsible. And that is the bridge he has got to build. Remember, President Obama campaigned on a return to physical responsibility. One year ago he was talking about entitlement reform at the outset of his term. So these are not such crazy ideas.

But I think they are awfully important. You have got to get folks' attention. You know, you never get a second chance to make a first impression. He is already labeled as a big-spending president with a democratic congress. He has got to take bold dramatic action to restore credibility with independents on this front. Otherwise, he is going to be seen as generationally irresponsible and independents do not like that.

ROBERTS: All right. John Avlon, Jennifer Donahue, always great to catch up with you. Thank you so much. Good talk this morning. Kiran.

CHETRY: Well, still ahead, America's biggest rip-offs. Guess how much you pay for texting? Some jaw-dropping rip-offs and what you can do about them. We are "Minding Your Business" still ahead. Eighteen minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. 20 minutes past the hour right now, and that means it's time for "Minding Your Business". Stephanie Elam joins us now. We are just a nation of people getting ripped off?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Yes, you probably don't want to know these things to be honest. As I was reading through them, there are actually some pretty good ones there.

Let's start off with one that almost all of us do, and some of us may even do it from the set. But, we are talking a bit about text messaging. How about a markup of 6500 percent? They are short, quick, and cheap to transmit. They cost carriers just a third of a cent to deliver, yet on a pay-per-text plan, it usually costs about 20 cents going out and 10 cents going in.

Move from there to the movies which, I like to spend some time in the movies, and maybe you say, with a movie, I like a little bit of a snack. Oh yes, for the popcorn, 900 percent markup there.

ROBERTS: That's all? I thought it would have been higher than that.

ELAM: You would have thought -- well, 60 cents to make a bag of medium popcorn, and they sell it for about $6. But, the movie theaters, they don't make their money off of the movies, they make it off of the concessions. That is why everything in there is like a billion dollars and that is why they don't want you to bring anything in.

And also, if you go to a hotel, for many of you travelling right now, you may be at the hotel mini bar, 1300 percent markup for eating anything out of there. They are usually marked up by 3 percent-4 percent retail prices there. And they often put rarer products, so you don't really know how much more you are paying for those kind of things. But they are saying you are paying for the premium for the convenience of it all.

And then, if you are going to watch a movie while you are in a hotel, 200 percent markup there, you could pay about $10 to $15 dollars for a new movie if it's new, you know, it could be up to that much. But if you are going to a place and rented it, it would be like $5 dollars to do it. So, interesting things here. cnnmoney.com has some great writes on this if you want to read more about it.

ROBERTS: Whole foods in there as well? $50 dollars for a tomato?

ELAM: No, Nina Marcus is not in there, none of that in there at all. Wine, if you drink wine at the restaurant, percent500 markup for that one. If you but it by the glass, it is even worse. So maybe that's an excuse for people to buy a whole bottle when they go to dinner.

ROBERTS: Made a joke at a charity event. They were giving away $150 dollars hall foods gift basket, and I said, yes, had a chocolate bar and a bag of chips. Steph, thanks so much.

President Obama pledged to talk with Akmad Hijad, reduce hostilities, prevent Iran from going nuclear during the campaign, can he deliver? We have got a memo to the president coming right up. Stay with us. 23 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Coming up at 26 minutes after the hour, and that means it's time for an A.M. original, something you will see only on "American Morning". The United States and Iran, sworn enemies for decades, when President Obama was elected he said he was all for trying to solve the differences between the two nations.

CHETRY: Yes, and engage. But with tensions on the rise in the Middle East, can the president still deliver? Our Reza Sayah is live in Islamabad, Pakistan, with this morning's memo to the president. Reza, good morning.

REZA SAYAH, CNN CORRESPONDENT: Good morning, Kiran. You know, nothing seems to be coming easy to the president these days and Iran is no different. There is a lot of complicated issues for President Obama to address in Iran. There is a lot at stake, but he has made it clear, his number one concern is Iran's nuclear program.

(BEGIN VIDEOTAPE)

SAYAH (voice-over): Mr. President, you said Iran's nuclear program poses a threat to the world.

OBAMA: Iran is breaking rules that all nations must follow. Threatening the stability and security of the region and the world.

SAYAH: You said years of saber rattling never worked. You pledged to rein in Iran's nuclear program by reaching out and talking to its hard line leaders.

OBAMA: There will be many issues to discuss between our two countries, and we are willing to move forward without preconditions on the basis of mutual respect.

SAYAH: But critics say you have little to show for your policy of engagement. Washington's first face-to face talks to Iran in three decades failed to reach an agreement. Instead, Iran announced plans to expand what it calls its peaceful nuclear program. Iran expert Karim Sadjadpour says it's clear, Iran is not interested in a deal.

KARIM SADJADPOUR, CARNEGIE ENDOWMENT ASSOCIATE: The administration is increasingly realizing that Iran has not shown any willingness to curtail its nuclear ambitions.

SAYAH: In your state of the union address, you suggested plan B, pressuring Iran with economic sanctions.

OBAMA: And as Iran's leaders continue to ignore their obligations, there should be no doubt. They too will face growing consequences.

SAYAH: But, Mr. President, experts say three rounds of prior sanctions have only hurt Iran's people, not its leaders. A fourth round could do the same, says Columbia University Professor of Iranian Studies, Hamid Dabashi.

HAMID DABASHI, COLUMBIA UNIV. PROFESSOR IRANIAN STUDIES: Sanctions don't work, particularly crippling sanctions. We know it from experience in Iraq that sanctions will in fact hurt precisely the wrong people.

SAYAH: Further complicating matters in Iran, the post election unrest.

The tens of thousands of people who showed up today.

SAYAH: Last June, CNN was in Tehran when hundreds of thousands protested what they called President Ahmadinejad's sham re-election. Nearly 8 months later, Iran's opposition movement has not backed down, posing the biggest challenge to Iran's regime in its 30-year history. Analysts say the answer to the Iran puzzle could be supporting its people's call for political change.

DABASHI: The only thing he has not done so far is precisely in the question of engaging Iran. You engage with the Iranian people. You engage with Iranian civil society.

SAYAH: But Mr. President, supporting an opposition movement risks further isolating a hostile regime. It also takes time. And with Iran moving forward with its nuclear program, time is precious.

(END VIDEOTAPE)

SAYAH: Now the next big day to keep an eye on when it comes to U.S.-Iran relations is coming up on February 11th, that is the anniversary of the Islamic revolution back in 1979. The opposition movement has called for more widespread protests. And the Iranian President, Mahmoud Ahmadinejad, has delivered another one of those menacing message saying on February 11th, Iran will deliver a harsh blow to the global arrogance.

Now the global arrogance is the reference to Washington, but we are not quite sure what he is talking about when it comes to that statement of harsh blow. In the past, Iran has used this anniversary to talk about advancements in their nuclear program. We do not know if that is going to happen again. But you can be sure President Obama will be watching closely on February 11th -- John, Kiran.

ROBERTS: I guess we will just have to wait and see. Reza Sayah for us in Islamabad, Pakistan this morning. Reza, thanks so much.

Tomorrow's "Memo to the President" focusing on the fight against terror from finishing the job in Afghanistan to stopping places like Yemen and Somalia from becoming the next Afghanistan.

CHETRY: Meanwhile, it's half past the hour, and that means it's time for this morning's top stories.

Toyota dealers should begin to get replacement parts today that can fix gas peddles that can stick and cause sudden acceleration. The company executive says that there are no electronic problems in the recalled vehicles. He says that earlier recalls for floor mats also totally unrelated to the gas pedal defect. ROBERTS: This morning the National Transportation Safety Board is finally set to reveal the cause of the Colgan air crash near Buffalo, New York. Critics point out key safety reforms have still not been made despite promises of regulators and lawmakers to take swift action.

CHETRY: Also NASA says it will not stop shooting for the moon despite President Obama's cut budget. The president explained it's not all bad for the space agency.

(BEGIN VIDEO CLIP)

PETER ORSZAG, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET: Let me be clear about what is happening at NASA. The Constellation Program, which is over-budget and behind schedule, was intended to do what we have already done, which is return a man or woman to the moon.

We believe in the future of human space flight and we believe that NASA can inspire Americans and lead to scientific advances. So we do have a small budget increase for NASA.

(END VIDEO CLIP)

NASA's administrator says the budget will not prevent future moon missions or exploring rest of the solar system.

Well, it could be the beginning of the end of the military's "don't ask, don't tell" policy that bans gays from serving openly. Today Defense Secretary Robert Gates will be in the Senate hearing room to present an outline on just how it can be repealed.

Our Carol Costello is covering this story for us this morning. Hi, Carol.

CAROL COSTELLO, CNN CORRESPONDENT: Hi, Kiran.

It's time to get practical. There are plenty of people in high places who say now is not the time to talk about this issue. America has other problems to deal with, government spending, the deficit, jobs.

But others say those things are precisely why this is the time. They say "don't ask, don't tell" is costing taxpayers in dollars, hundreds of millions of dollars.

(BEGIN VIDEOTAPE)

COSTELLO: With the country gripped by economic anxiety, Republicans say it's not exactly primetime to revisit such a divisive issue.

REP. JOHN BOEHNER, (R) OHIO: At a time when Americans are asking where are the jobs, why get in this debate?

COSTELLO: But those that support repealing don't ask don't tell say now is the time. If Americans want fiscal responsibility in government, then --

NATHAN FRANK, PALM CENTER: Repealing the ban would save money in the long run, absolutely.

COSTELLO: Since 1994 the Pentagon has discharged around 13,000 because of don't ask, don't tell. The General Accountability Office says that's costs taxpayers more than $190 million. The University of California put the price tag closer to $363 million if you factor in the cost to recruit, train, and then discharge gay troops.

But critics say none of this justifies repealing "don't ask, don't tell," $363 million is a drop in the bucket.

BOB MAGINNIS, U.S. ARMY (RET), SYNDICATED COLUMNIST: Well, the discharge of 13,000 people is miniscule in comparison to what the military pays every discharging 230,000 people a year.

COSTELLO: Others say repealing the policy could end up costing taxpayers more. A 2008 "Military Times" survey showed 24 percent of military personnel would eventually leave the service if gay troops served openly.

And what about the possibility of creating separate barracks for gay and straight troops?

David Hall, who is gay, served six years in the Air Force before he was outed by a fellow cadet. He says talk of a mass exodus is ridiculous, and notes the "Military Times" survey also showed 71 percent said they would continue to serve if "don't ask, don't tell" is repealed. As for separate barracks --

DAVID HALL, SERVICE MEMBER'S LEGAL DEFENSE NETWORK: That makes no sense. Gay people are serving in the military, and everybody knows that.

CHETRY: Under don't ask don't tell, at what costs? Both sides hope Tuesday's congressional hearing will answer that question.

(END VIDEOTAPE)

COSTELLO: Those in favor of repealing don't ask don't tell say it's clear the Pentagon will at the very least soften the policy, making it harder for gays in the military to be discharged. But will the Congress actually vote to repeal the policy in an election year? They are not holding their breath, Kiran.

CHETRY: There you go, we'll have to wait and see. Carol Costello for us this morning, thanks.

ROBERTS: Hollywood salutes the top movies of 2009. The Oscar nominations are just ahead. We'll carry them for you live this morning.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. It's 37 minutes past the hour.

We are moments away from this year's Oscar nominations.

ROBERTS: The Academy of Motion Picture Arts and Sciences is trying something a little different this year -- how about 10 nominees for best picture instead of the usual five? Our Brooke Anderson is live in Beverly Hills where the excitement is starting to build this morning. Hi, Brooke.

BROOKE ANDERSON, CNN CORRESPONDENT: Hi there, John and Kiran.

We are one minute to air, meaning they will make the Oscar nominations in about 60 seconds.

But you mention a big change this year. The Oscars expanded the best picture category from five nominees to ten. Some names you will hear this year, "Avatar," James Cameron's epic sci-fi blockbuster that has grossed $2 billion worldwide.

To put that in context, if you take into account the ticket price inflation, it would not be at the top. That honor would still go to "Gone with the Wind." But you will hear "Avatar's" name many times this morning. It's fresh off Golden Globe wins for best drama and best director.

James Cameron's ex-wife Katherine Bigelow just won best director from the directors' guild of American for her movie, "The Hurt Locker," so you'll probably here her name as well.

Here we go. The ceremony is beginning. This is the academy president Tom Sherak. Let's listen to him talk.

TOM SHERAK, PRESIDENT, ACADEMY OF MOTION PICTURE ARTS AND SCIENCES: Hello, everybody, good morning. I'm Tom Sherak, president of the academy. Thank you.

(APPLAUSE)

Thank you.

We have news to break this morning. But before we do, please welcome the very talented actress and an Oscar nominee herself last year, Anne Hathaway.

ANNE HATHAWAY, ACTRESS:: Thank you, Tom. Good morning, everyone.

SHERAK: The 2009 nominees for best performance by an actress in a supporting role are -- Penelope Cruz in "Nine," Vera Farmiga in "Up in the Air," Maggie Gyllenhaal in "Crazy Heart," Anna Kendrick in "Up in the Air," and Mo'Nique in "Precious." Anne?

HATHAWAY: Thank you.

For best performance by an actor in a supporting role, the nominees are -- Matt Damon in "Invictus," Woody Harrelson in "The Messenger," Christopher Plummer in "The Last Station," Stanley Tucci in "The Lovely Bones," and Christoph Waltz in "Inglorious Basterds."

(APPLAUSE)

SHERAK: For best performing by an actress in a leading role, the nominees are -- Sandra Bullock in "The Blind Side," Helen Mirren in "The Last Station, Kerry Mulligan in "An Education," Gabourey Sidibe in "Precious," and Meryl Streep in "Julie and Julia."

HATHAWAY: The nominees for best performance by an actor in a leading role are -- Jeff Bridges in "Crazy Heart," George Clooney in "Up in the Air," Colin Firth in "A Single Man," Morgan Freeman in "Invictus," and Jeremy Renner in "The Hurt Locker."

SHERAK: That's good.

The best achievement in directing, James Cameron for "Avatar," Katherine Bigelow for "The Hurt Locker," Quentin Tarantino for "Inglorious Basterds," Lee Daniels for "Precious," and Jason Reitman for "Up in the Air."

HATHAWAY: That was good, too.

SHERAK: Thank you.

HATHAWAY: For best original screenplay, the nominees are Mark Boal for "The Hurt Locker," Quentin Tarantino for "Inglorious Basterds," Allessandro Pamon and Oren Moverman for "The Messenger," Joel Coen and Ethan Coen for "A Serious Man," And Peter Doctor, Bob Peterson, and Tom McCarthy for "Up."

SHERAK: For adapted screenplay we have Neil Blomcamp and Terry Hatchel for "District 9," Nick Hornby for "An Education," Jesse Armstrong, Simon Blackwell, and Tony Roach for "In the Loop," Jeffrey Fletcher for "Precious," And Jason Reitman and Sheldon Turner for "Up in the Air."

HATHAWAY: And finally, I am pleased to announce that the ten films selected as best picture nominees for 2009 are "Avatar," James Cameron, "The Blind Side," nominees to be determined, "District Nine," Peter Jackson, "An Education," "The Hurt Locker," nominees to be determined. "Inglorious Basterds," "Precious," "A Serious Man," "Up," and "Up in the air."

SHERAK: Please join us in a little more than a month on Sunday, March 7th, when we find out who goes home with the Oscar. It will be a night to remember. See you then.

ANDERSON: So everybody here really excited, the Oscars, the culmination of the awards season. And what really stands out to me, John and Kiran, "Avatar," nine nominations, "The Hurt Locker," nine nominations as well, everybody calling this a David versus Goliath story. "The Hurt Locker" has only made $16 million worldwide whereas "Avatar" has made more than $2 billion worldwide.

A couple of other things -- "The Blindside" was a little bit of a surprise for best picture. There was a little cheer here, about 450 media personnel and publicists on hand for the announcements.

Some of the performers who were recognized, no surprise, Meryl Streep, and this is her 16th Oscar nomination. She is still the leading Oscar nominee of all-time. Sandra Bullock there the emerging favorite for best actress in a leading role.

That will be a lot of fun on March 7th, the Academy Awards -- John, Kiran.

ROBERTS: All right, Brooke.

CHETRY: Yes, the other interesting thing there's ten movies. There's double the amount of movies but there's also an extra -- is it two weeks -- because they moved the Oscars back because of the Olympics, so because of the winter Olympics so there is more for academy members to see them.

ANDERSON: There is a little bit more time -- a little more time for them to get prepared to make those votes. And I want to make a point very quickly about expanding that Best Picture category. This is done in part to broaden the appeal of the Oscars because the telecast ratings have suffered even though -- they were of just slightly last year. But they want more mainstream appeal. And with movies like "The Blind Side" they may get that this year.

ROBERTS: Great. Brooke thanks you so much for joining us this morning. I know how early it is. That's great. So you have to make any predictions.

BROOKE: Thank you.

CHETRY: Well, we have ten movies to watch now. I've only seen two out of the ten that got nominated for best picture.

ROBERTS: Actually I've seen most of these.

CHETRY: You've seen most of them?

ROBERTS: Yes, I am surprising even myself.

CHETRY: Well, I...

ROBERTS: I'm going to make a prediction, I think Christoph Waltz (ph) is going to win for "Inglorious Basterds".

CHETRY: For best supporting actor...

ROBERTS: Kurt Lance Lando (ph) that was -- I mean, a terrible character but he played it amazingly well.

CHETRY: I agree on that one I think -- I think that the best director is going to go to James Cameron, sorry, "Avatar." I mean...

ROBERTS: Yes, either Lee Daniels for "Precious."

CHETRY: Well, let's see though because he basically built -- I mean, he basically pioneered 3D cameras and technology in a way we've never seen before. The Academy is going to like that.

ROBERTS: Academy always likes a story too, which is why I think you know, best actress, Sandra Bullock, Gabourey Sidibe, maybe you know, wow, it's kind of a tossup between the two of them; they both played great parts. Jeff Bridges, you know, in "Crazy Heart." George Clooney, Collin Firth, Morgan Freeman -- wow, how do you make the decision there?

CHETRY: I know. A lot of good characters and a lot of movies to see.

Well, we're going to take a quick break. When we come back we're going to be talking a little bit about the weather.

ROBERTS: Yes, some heavy rain, ice in the southeast, snow in the northeast stay with us, Rob is up and coming up next.

(COMMERCIAL BREAK)

ROBERTS: And everybody was gathered there this morning at Gobblers Knob (ph) just outside of Punxsutawney where Phil made his prediction.

Our Rob Marciano tracking the weather forecast and the rodential prognostication (ph) and he's in the weather center in Atlanta this morning. Hi Rob.

CHETRY: Hey Rob.

ROB MARCIANO, AMS METEOROLOGIST: Tricky forecast for those rodents guys with thin clouds streaming across Pennsylvania and parts of New York. So I guess -- I guess he saw a shadow out there in Punxsutawney.

But Staten Island Chuck a different story, did not see the shadow, this the breaking news video coming into the CNN center there. Although, bright lights certainly highlighting him. He's saying that spring is coming. So there you go.

General Beauregard (ph) on Georgia that definitely did not his shadows so he says an early spring also.

These clouds will bring in a little bit of moisture, but most of the action is down across parts of the south. A mixture of rain, sleet and snow from North Carolina and through Western Virginia; we have a winter weather advisory out for these locations. A little coating of ice for western parts of North Carolina and a little dusting of snow potentially across parts of Virginia and rain across Florida.

Quickly, 400 giant squid caught off of New Port Beach California. These monsters 20 to 40 in some cases 60 pounds making inroads towards the beach and sports fisherman alike got out there to snag them up. I don't think I've ever eaten one of those but it's I'm not sure I have to -- I would have guessed they would be a little tougher than calamari but nonetheless pretty -- pretty impressing looking creatures.

ROBERTS: Either way you slice it, that's a lot of antipasto. Thanks Rob.

MARCIANO: All right.

COOPER: And you know deep fried anything tastes good; even a groundhog.

ROBERTS: Almost.

CHETRY: How about it, well, let's check in with Kyra Phillips right now...

ROBERTS: You would eat a groundhog?

CHETRY: No. I'm just imagining that if you deep fry it's head, if you deep fry Twinkies pickles everything. Hi Kyra.

KYRA PHILLIPS, CNN ANCHOR: Ok, deep fry Punxsutawney Phil, is that what you just said Kiran?

CHETRY: No. I'm not saying we kill poor Punxsutawney, even though he is predicting six more weeks of winter...

ROBERTS: You know I've heard of having a deep fried Snickers with your fish and chips, but a groundhog?

PHILLIPS: A fried filled tail?

All right, let's talk about totally switching gears. You guys, this is the outrage story of the day. Basically, how low can you go?

Well, in Liberty, Missouri, the deep is pretty darn low. Take a look at this video tape and I don't know if you guys have seen this or not. Can we roll this?

See, this -- this couple coming in to order food and they walk away with something. Do you guys, do you know what they're stealing?

ROBERTS: No.

PHILLIPS: Have you seen this yet?

CHETRY: What -- are they stealing from the gifted children...

PHILLIPS: Ok.

CHETRY: ... little container there?

PHILLIPS: There you go; the Red Cross donation jar for Haiti.

This surveillance video actually caught, yes caught the classy pair there at Culver's (ph) restaurant in Liberty, Missouri. So what we want to do is we want to help police find these two. I tell you what, they won't be nominated for CNN Heroes this year, I can tell you that much. But we want to do everything we can to track them down.

It's just amazing, I mean, the people that need it most and they are stealing the Red Cross relief jar to Haiti, unbelievable.

ROBERTS: There's definitely a reason to be outraged today; that and all the people deep frying Punxsutawney Phil.

PHILLIPS: Punxsutawney Phil, Kiran...

CHETRY: No. Please don't misunderstand

PHILLIPS: ...PETA will be calling you on, oh, just about five minutes.

CHETRY: No, don't misunderstand. Punxsutawney Phil has many, many more years of predicting ahead of him and no one is frying him up.

ROBERTS: No. Then he gets deep fried.

PHILLIPS: Fried Twinkies for Kiran and crew.

CHETRY: Speaking about though, we are talking about normal weight, right? Are you still at risk, even though you're average and you're right in the guidelines, you may be actually thin yet obese? How is that possible?

We're going to talk about that coming up.

It's 53 minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to the Most News in the Morning. You may feel like you are in good shape and a number on the scale may not be anything to worry about. But there's new research showing that just because you have a, quote, "healthy weight", you may still actually be obese.

ROBERTS: For more on this we're paging our Dr. Sanjay Gupta. He's got today's "Fit Nation" update. Doc, first of all welcome back. Great to see you back here. Secondly, tell us how this is all possible.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes, you know, I am back just a few days and already giving some tough news about health. But this is an important point here.

There is something known as normal weight obesity. A lot of people get on the scale and they are looking for their weight, their overall number, which makes a lot of sense. But what they have found is that people who have too much body fat and too little muscle mass, lean muscle mass, can also have problems. This is a study looking at lots of people over a few years. They found that people who fell into the normal weight obesity category had about a four times increased likelihood of developing something that we talked a lot about on American Morning, something known as metabolic syndrome; the likelihood of developing hypertension and the likelihood of developing diabetes later on. Keep in mind again, normal body weight but again this normal weight obesity.

They predict that 30 million Americans right now have this condition, so potentially a big problem.

CHETRY: You're saying because I guess you are talking about the unhealthy percentages of body fat. Right? How do you tackle that? You don't want to obviously lose more weight but you do want to get rid of the fat? So how do you do it?

GUPTA: That's right. And there are a lot of people again who might be normal weight or under weight who fall into this. First of all you can measure your body fat composition and there are some pretty good tests out there. Even the home scales are pretty good to within about 10 percent or so. But your doctor's office can give you a more accurate reading, a lot of gyms or a lot of clubs will do this as well.

Here are some numbers to sort of keep in mind. Again rough numbers; they're not absolute numbers. But for men, you really don't want to get over 23 percent body fat percentage, and for women about 33 percent. But Kiran, exactly to your point, the goal is not to lose more weight but to perhaps add things to your overall fit team, doing interval training, doing some resistance training, building up some lean body mass. That's really going to make a big difference. And that goes for women and men alike.

CHETRY: What do you do? You lift weights -- lifting weights is the big thing?

GUPTA: Yes, lift some weights. It's funny, I talk to my mom about this all the time who is in her 60s, and she never lifted weights. She was always somebody who did the treadmill and tried to do aerobic stuff. But now she is out there with here dumb bells doing shoulders and doing some bench. She really feels a lot better. Building up that muscle mass also improves your -- decreases your likelihood of osteoporosis, improves your inspiratory capacity and also just having some extra muscle mass helps burn calories even when your sitting here at rest talking to me.

ROBERTS: It's always great to try to stay in shape regardless of how old you are. Doc, some great tips this morning, thanks so much.

GUPTA: Thanks guys.

ROBERTS: A couple of minutes now to the top of the hour. Stay with us.

(COMMERCIAL BREAK)

ROBERTS: Continue the conversation on today's stories go to our blog at cnn.com/amfix.

That's going to wrap it up for us. Thanks so much for joining us. We'll see you back here again, bright and early tomorrow.

CHETRY: Meantime, the news continues. Here's "CNN NEWSROOM" with Kyra Phillips -- hi Kyra.