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American Morning

Midterms & the Balance of Power; Obama Begins Push on the Economy for Midterm Elections; Craigslist Adult Services Now "Censored"; The "Hate Cleric"; Father Trapped Underground; Politics and the Economy;

Aired September 06, 2010 - 06:00   ET

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


KIRAN CHETRY, CNN ANCHOR: Good morning. Glad you're with us on this Labor Day.

DREW GRIFFIN, CNN ANCHOR: Yes.

CHETRY: We're laboring. Many of you are, too, probably. Monday, it's September 6th, I'm Kiran Chetry.

GRIFFIN: I'm Drew Griffin. John Roberts off today. A lot to talk about this morning. We're going to get right to it.

The political season now in full swing Labor Day. The unofficial end to summer and the big push towards mid-term elections. Dozens of seats up for grabs in the Senate, hundreds in the House. Critical governor races coast to coast. And the best political team on television is kicking off the campaign coverage right here, right now, this morning.

CHETRY: A big change if you will log on to Craigslist this morning. It's pulled its adult services section. The site simply reads censored. CNN's reporting helped shed some light on the steamier side of this Web site. We'll have an update for you this morning.

GRIFFIN: And an Islamic cleric suspected of inspiring terrorism around the world, now he sets up shop in the Caribbean. Sheikh Abdullah al-Faisal (ph) has been banned from preaching in Jamaican mosques, but that hasn't put a stop to what intelligence officials consider his dangerous rhetoric. I'm going to tell you about my trip to find and confront this guy and where he's taking message now, why he's considered such a threat.

CHETRY: That will be interesting for sure.

Meantime, the amFIX blog is up and running. Join the live conversation. Head to CNN.com/amFIX.

GRIFFIN: But up first this morning, the fall election campaign, the balance for power up for grabs on Capitol Hill could have huge consequences for you, for us, for everybody, with a job, without a job, especially the taxes you pay, health care, you and your family receive.

CHETRY: This weekend we heard a lot more talk, certainly ratcheting up of the rhetoric. But here's a look at what's at stake. In the Senate, more than a third of the seats, 37 total up for grabs this November. And in the House, every single seat, 435 of them in the hands of voters. The chamber could soon look radically different. Republicans sensing blood in the water are looking to take control. There's a new CNN Research Corporation poll just released about a minute ago showing the GOP has a seven-point advantage on a generic ballot that's going to two parties.

GRIFFIN: If you and your party control the White House, the Congress and the Senate, this is not a good poll finding either. Eighty-one percent of Americans believe the economy is in rough shape.

We've got the best political team on television covering it all. Ed Henry is at the White House breaking down the president's new economic strategy. But first, we're going to kickoff this entire election season in Pennsylvania, with the election express and T.J. Holmes who is driving that bus in Pittsburgh, Pennsylvania. Right, T.J.?

T.J. HOLMES, CNN CORRESPONDENT: Well, I'm honored to be kicking this thing off for us this week. But I assure you I'm not getting behind the wheel of that bus. It's just here to my right. You'll see it throughout our coverage this week. But good morning to you, guys, from the backdrop of beautiful downtown Pittsburgh over the Allegheny River this morning.

We are here because, yes, like you mentioned at the top, Drew, it is the unofficial end of summer with Labor Day but is the official kickoff to the campaign season and they are kicking off in a major way today. Politicians will be at every barbecue fest, every picnic, every parade, and there will be one here in Pittsburgh as well. A lot of shaking hands and a lot of kissing babies.

Now, we are here in Pennsylvania, western Pennsylvania, in particular, because you talked about 435 seats being up for grabs in the House. Well, yes, Republicans could take back the House. Well, how would they do it? They'll do it by taking back seats like the one here in western Pennsylvania, the third district where Republicans believe Kathy Dahlkemper is vulnerable. She's a freshman Democrat in a Republican district going up against Mike Kelly. Now I want you to listen to both of them here right now in these short sound bites and tell me if there's something in there that sounds familiar.

(BEGIN VIDEO CLIP)

REP. KATHY DAHLKEMPER (D), PENNSYLVANIA: I think the voters of the district should re-elect me because I'm working every day for them when I'm in this office. I'm a person of very high integrity. I'm honest. They know they can trust me.

MIKE KELLY (R), PENNSYLVANIA CONG. CANDIDATE: Why would you vote for me and not the current congresswoman? Everything I say I have done. Everything I say I mean. And I think that over the period now, the last 20 months, we've seen a complete separation from where you came from as to where you are now.

(END VIDEO CLIP) HOLMES: And so, again, really no offense to either one of those candidates, but to the viewers, to the voters, you hear that stuff all the time. You've heard that before. I'm the best candidate. I'm going to be working hard. I am better than the other guy. You hear that stuff, so guys, it's our mission. Certainly the mission of me and my crew this week to try to make a commitment to not talk to too many politicians. We're going to be talking to the voters out there, the constituents and to hear about their concerns and maybe the politicians will listen to them this time around. But we're just getting started, first day and first live shot of our political coverage this week, guys.

CHETRY: Got that under your belt, so that's a relief for sure.

You know it's interesting, though, because we showed the big picture and we say, listen, 435 seats up for grabs, a lot of unease about the economy, of course. But when you break it down to local, you know, districts and what these people are fighting for, what are the issues there that are most important to voters in Pittsburgh?

HOLMES: Well, the people, to be honest with you, the number one issue I heard when I got off the plane yesterday was about the Steelers quarterback situation. But one we got past that issue they wanted to start talking about politics and what they wanted to talk about in particular was the economy. Listen to this back and forth between two women who were volunteering, one Republican, one Democrat, volunteering at a local fair. Just listen to their back and forth. You see them kind of going at each other but at the same time their concerns are the same.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: And they're wanting to put government out of their life. We don't want government in our life. Turn in your social security check, turn in your Medicare because it's government that got it for you.

UNIDENTIFIED FEMALE: They just don't think that the people in Washington are listening to them.

UNIDENTIFIED FEMALE: Their purpose at this point is to make our administration look bad.

UNIDENTIFIED FEMALE: People need have hope, and they need to have the ability to go out and get a job. And they're frightened.

UNIDENTIFIED FEMALE: It's the economy. And some of them are not hindsighter or farsighted enough to realize why we are in the position we are in. And everybody said oh, don't blame Bush. Who else is there to blame?

UNIDENTIFIED FEMALE: They're taking the people's money that in all honesty the people could spend better themselves.

UNIDENTIFIED FEMALE: Their purpose is not our country. Their purpose is politics. UNIDENTIFIED FEMALE: This is the first year that the recurring theme of what people are telling us is that they're really scared to death.

(END VIDEO CLIP)

HOLMES: All right. Make no mistake about it, it is all about the economy here. That's all they're talking about here when you talk about the issues. And one more thing of note here in particular in Pennsylvania, they have been below the national average in unemployment rate in this state for the past year. The problem here though is that in the past year their unemployment rate in Pennsylvania has gone up a full percentage point. They're going the wrong direction from the national average over the past year which has come down a little bit or been flat each month. They have actually gone up a full percentage point here in this state over the past year. The economy, economy, economy is all they're talking about. We'll be talking about it all week here, guys, so we are just getting started.

GRIFFIN: T.J., interesting stuff, thanks. We'll see you on your ride through the country.

CHETRY: He says he's not driving.

GRIFFIN: I know.

CHETRY: No worries there.

GRIFFIN: Yes.

CHETRY: Well, after a week focusing on Iraq and the Middle East, President Obama this morning starts a big push to get the focus back on the economy. It's the make-or-break issue for Democrats in the midterm elections. The president is hitting the road to spell out his plans for keeping the economy growing. And our Ed Henry is live at the White House with a preview.

You know, the White House certainly took a lot of hits this weekend. If you listen to the talk shows about what they're doing, what their plan is and are they able to articulate it to the American people.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: That's right. Good morning, Kiran. The president clearly under a lot of pressure here. He's going out to Milwaukee today for a Labor Day event and then Wednesday, he's going to Cleveland, a very hard hit state in the middle of the country, as T.J. was noting. In Pennsylvania, same in Ohio in terms of it being all about the economy and jobs. So the president, I'm told by an administration official on Wednesday in Cleveland, will lay out this new economic plan. The centerpiece will be a tax cut, a permanent extension of the tax cut on research and development for businesses. A lot of small businesses in particular like that. It's $100 billion plan. The president wants to pay for it by closing other corporate tax loopholes. And the Democratic Party Chair Tim Kaine sort of previewed it yesterday on one of the Sunday shows as saying this is a chance for the president to show he's all over the economy.

(BEGIN VIDEO CLIP)

TIM KAINE, DNC CHAIRMAN: This president and his team are going to be focused on the issue of jobs. But, as we're adding private-sector jobs now every month, we just have to focus on things that will continue the Democratic strategy, has been, and it's going to be discussed in more detail later. Let's target the tax credits to middle class folks and small businesses.

(END VIDEO CLIP)

HENRY: Now, the administration official tells me it's not just going to be that one tax cut in the president's plan. He's also considering other provisions including maybe some more infrastructure spending although the challenge there, of course, we've heard a lot about that with the stimulus, some of it has not panned out. The president also looking at potentially a payroll tax holiday. Problem and challenge there is if it covers too many workers. The price really balloons. Could go up to something like $300 billion and frankly, the administration just doesn't have that much money to work with right now because we're so deep in debt. So you can see the president's options here, he wants to sort of jump in to the fray again but his options are very limited, Drew, Kiran.

GRIFFIN: Yes, Ed, you know, Kiran mentioned that he took a lot of heat over the weekend, some of it from his own party and from liberal- minded thinkers who think, you know, the president is just waffling, the message is not clear. Now he's throwing up these ideas. I mean, at this point, this president was supposed to have the economy turned around. Is there a sense of panic there?

HENRY: Well, panic may not be the word inside the White House, but deep concern, you're absolutely right and certainly panic out there on the campaign trail among some Democrats. Here's why. When you look at our latest poll, from CNN/Opinion Research Corporation, after the stimulus passed early last year this was supposed to, you know, provide a jolt to the economy. Clearly, a lot of people not feeling it.

Look at one poll number here. Asked about economic conditions today, Americans 18 percent saying it's good. Eighty-one percent saying it's poor.

Second poll. Current economic conditions compared to two years ago. As bad or worse just two years ago, 49 percent. Better now but will get worse, 18 percent. Better now and will stay that way, 32 percent. You see the biggest number being as bad or worse two years ago. What's changed the last two years, that's all that stimulus money was supposed to be spent getting out there, turning this around. Clearly, it has not worked as well as the administration has wanted. That's why a lot of Democrats out there on the trail want the president to do more. He's going to jump in with his economic plan. The question is whether Congress will even have time to pass this new economic plan before they head out on to the campaign trail full time and even if they pass it in the weeks ahead will have any impact before November -- Drew, Kiran.

CHETRY: A lot of questions. Tough times right now. Ed Henry, thanks so much.

Also , stay with AMERICAN MORNING all week. We're going to be breaking down the races with the best political team on television. Tomorrow they're headed to Columbus, Ohio and then Wednesday, we set up shop in Covington, Kentucky. Thursday, it's on to Indianapolis.

GRIFFIN: Yes, we're going to have more coverage, of course, from T.J. And along with him is chief national correspondent John King, senior congressional correspondent Dana Bash, national political correspondent Jessica Yellin, and senior political analyst Gloria Borger.

CHETRY: Here we go. Got everyone covered.

GRIFFIN: I do. Sounds like a band.

Well, new this morning, a critical piece of evidence in that BP oil spill has been raised to the surface. The government confiscates this thing. A failed blowout preventer recovered over the weekend handed over to the Fed. A new blowout preventer has now been placed on that well. Now if that works, BP will then drill the last remaining feet of its relief well and execute that bottom kill that we'd be hearing about for so long which would seal the ruptured well for good.

CHETRY: Well, he moved next door to Sarah Palin to try to get the scoop for his Palin biography. Well, now three and a half months later, author Joe McGinniss is packing up and leaving Wasilla. He's going to start writing the book. He arrived back in May prompting accusations by the Palins that he was stalking them. The family extended a fence around their property so that he couldn't see into their backyard.

GRIFFIN: Yes, they called him the creepy guy, right? It was kind of creepy.

6:11, we're going to check in with the morning weather headlines with Reynolds Wolf. Reynolds, tell me it's going to be a beautiful Labor Day so people can just kick back, right?

REYNOLDS WOLF, AMS METEOROLOGIST: Well, for much of the nation it's going to be OK. There are a few troubled spots. One of the troubled spots happened to be in the Gulf of Mexico where we are seeing a new tropical storm. This is tropical storm Hermine. Yes, we are on the ages. Let's go right to it.

Here's the latest from the storm. The winds are 40 miles per hour. Gusts have been a bit stronger going to about 50 miles per hour. The latest with this storm in terms of its path expected to possibly make landfall as we get into early Tuesday morning just south of the Texas- Mexico border and it should be at this point a fairly strong tropical storm going to make its way onshore.

Coming up though, we're going to talk more about what you can expect around the rest of the nation in terms of your forecast. Things are going to be looking good for the eastern third of the country. The western half of the Great Lakes perhaps some strong thunderstorms. Same deal for the northern Rockies, very dry and warm for you across the desert southwest. Your complete forecast coming up in a few moments, including more on the tropics. It's a full plate on this holiday.

Guys, let's pitch it back to you in New York.

CHETRY: Reynolds, thank you.

WOLF: You bet.

CHETRY: And still to come on the Most News in the Morning, are plans in the works to send more U.S. military members to Afghanistan? We have the latest information coming up.

It's 13 minutes past the hour.

(COMMERCIAL BREAK)

GRIFFIN: Fifteen after the hour, guys. Welcome back to the Most News in the Morning.

Just days after the U.S. handed off military operations in Iraq, U.S. troops were called in to help repel a gang of suicide bombers at an Iraqi army base. Yesterday's attack killed 12, no Americans hurt.

CHETRY: But U.S. officials say that this assault included a bus that was rigged to explode, as well as five attackers wearing suicide vests. The Baghdad army base is the same one that was attacked in August when 48 people were killed.

GRIFFIN: New developments in the war in Afghanistan, NATO now considering a plan to send 2,000 additional troops, and many of them are likely to be Americans. General David Petraeus reportedly proposed the move to NATO officials. It calls for 750 military personnel just to train Afghan forces.

CHETRY: We have an A.M. follow up for you right now. The popular online site, the classified ads, Craigslist, has taken down its assault - adult services section.

You may remember this. It used to be called the erotic services section. They changed that name, tried to beef it up a little bit, make it tougher to do bad things on it - who knows?

Well, if you head there now, it reads "censored", the website seemingly caving to pressure after a letter from 17 state attorneys general, and also this exchange between Craigslist founder, Craig Newmark, and our Amber Lyon. Here's a look.

(BEGIN VIDEOTAPE)

AMBER LYON, CNN CORRESPONDENT: You guys say you screen all these ads manually in your blog.

CRAIG NEWMARK, CRAIGSLIST FOUNDER: I've - I've never - I don't know what this is. LYON: And -

(CROSSTALK)

NEWMARK: Have you reported - have you reported this to us?

LYON: Why do I have the responsibility to report this to you when it's your website? You're the one posting this online. What are you guys doing to protect these girls?

(END VIDEOTAPE)

CHETRY: OK. Well critics said that the site was contributing to sex trafficking, violence against women. Leading the charge is Connecticut's attorney general, who talked with our Tom Foreman last night.

(BEGIN VIDEO CLIP)

RICHARD BLUMENTHAL, CONNECTICUT ATTORNEY GENERAL: Right now our focus really is on Craigslist. We're taking it one step at a time. We want to verify and confirm that Craigslist is, in fact, shutting down, because our focus really is on law enforcement within our borders.

(END VIDEO CLIP)

CHETRY: Well, it's not clear exactly why Craigslist did this and why now. The company says it will release a statement at a later time.

GRIFFIN: Well. We'll read that when it comes.

Still to come on the Most News in the Morning, we've seen the pictures of the newly redesigned Oval Office. Looks nice.

Yes, but there's a little mistake. We're going to tell you what it is, coming up.

(COMMERCIAL BREAK)

GRIFFIN: "Minding Your Business" this morning.

Steven Slater no longer works for JetBlue. Don't be -

CHETRY: That's not much of a surprise.

GRIFFIN: Don't be purchasing tickets hoping to get, you know, waited on by this guy. The airline is confirming they parted ways. Slater says he quit. The flight attendant gained national attention when he cursed out passengers, grabbed some beer and slid down the emergency chute after a flight in August.

Well, he's due in court tomorrow to face two felony charges.

CHETRY: You wanted to do that, right? You had quite a -

GRIFFIN: Oh, last night I wanted to. CHETRY: You had quite a ride, trying to get up in Atlanta.

GRIFFIN: But I wouldn't want to grab any beers and come here in the morning. Ayayay.

CHETRY: But, yes, it was interesting because there was a big Facebook fan page for him, saying let him keep his job.

GRIFFIN: You know, I never got that. Who'd - who'd want that kind of guy in a real emergency, right?

CHETRY: Yes.

All right. Well, the Oval Office got a makeover. There's a little bit of a problem underfoot, though. It turns out the new rug which has famous quotes along its edge has one of the authors wrong.

"The Washington Post" reports that a quote attributed to Martin Luther King, Jr. was actually borrowed from 1800 abolitionist Theordore Parker who Dr. King would often quote.

GRIFFIN: Uh-oh. So what are they going to do? Have a little needlepoint party in there and redo it?

CHETRY: Cut out a section of the rug, replace it. Who knows?

GRIFFIN: Knitting circle in the Oval Office.

Coming up next on the Most News in the Morning, I go to the trail - on the trail to Jamaica, searching for this guy. Look it, this guy is called the "Hate Cleric".

I'm going to tell you why when we come back.

(COMMERCIAL BREAK)

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

This guy has been called the "Hate Cleric", allegedly inspiring terrorists Richard Reid and Umar Abdulmutallab. And there's reason to be particularly wary of Jamaican Sheikh Abdullah al-Faisal. The Muslim spiritual leader is now using the internet preaching to a new audience, and counterterrorism officials fear it's a little too close for comfort.

Last month, I traveled to Jamaica to meet - at his request for an interview. Little did I know what I was getting into.

(BEGIN VIDEOTAPE)

GRIFFIN (voice-over): We came to meet the radical Islamic preacher known as The Jamaican on his own turf. And up a winding road into the Jamaican hillside we climbed.

GRIFFIN (on camera): So we think this is it.

GRIFFIN (voice-over): Where Sheikh Abdullah al-Faisal invited us and interview, he said, to clear his name from an awful past.

UNIDENTIFIED MALE: Hello?

GRIFFIN: But we quickly learned Sheikh al-Faisal had told us a lie.

GRIFFIN (on camera): Is the sheikh in?

UNIDENTIFIED FEMALE: No.

GRIFFIN: Can you tell us where he is?

UNIDENTIFIED FEMALE: He's not here yet.

GRIFFIN: Not here yet? He's not back from Kingston?

GRIFFIN (voice-over): Faisal, it turned out, had lured CNN to his island as part of a shakedown. CNN does not pay for interviews. The sheikh was asking for $15,000 just to talk.

GRIFFIN (on camera): Why are you charging us so much money just to talk to you?

GRIFFIN (voice-over): Most recently arrested in Kenya, authorities say this 46-year-old Jamaican was encouraging young Muslims to fight in Somalia. His arrest sparked riots, leading to five dead and leading Kenya to deport al-Faisal back to his native Jamaica.

U.S. intelligence officials and Jamaica's Justice Ministry tells CNN they are carefully watching the Caribbean and its poverty has long been thought to be a potential new home for a terrorist message, and the sheikh has never stopped preaching - from internet chat rooms and sending out tapes.

GRIFFIN (on camera): The fear is that even isolated down that road in a home that this Islamic scholar, this preacher of radical Islam could have an effect on the population here, gather a following and perhaps influence others to follow the paths of the terrorists who have followed him.

GRIFFIN (voice-over): It's the reason we came to this island to interview al-Faisal. Invited by the sheikh himself who promised he would explain once we arrived. When we did arrive, his new agent explained to us there would be no interview unless we pay $15,000.

CNN does not pay for any interviews. During three telephone conversations and one face-to-face meeting, the sheikh did try to explain how he was misinterpreted when he said Muslims should fight and kill Jews, Christians, Americans and Hindus.

"That was the old sheikh," he told me. "I've reformed since then."

GRIFFIN (on camera): I'm just asking you, do you feel any guilt at all that these men listened to you and then went out and tried to kill people and some of them did kill people. They must listen to many clerics.

Do you feel any guilt that they listened to you? I'm asking you a question. So you - you will not answer that question right now.

He just hung up. He says he wouldn't do the interview. He wouldn't do the interview unless he gets paid - period and he wouldn't answer that question.

GRIFFIN (voice-over): There may be a good reason the sheikh needs to be paid. He's economically and even socially isolated here.

The vast majority of Jamaicans are Christian, a religion the sheikh calls paganism. The Islamic Council will not allow the sheikh to preach in any of Jamaica's dozen or so mosques until he denounces his radical teachings.

MUSTAFA MOHAMMAD, ISLAMIC COUNCIL OF JAMAICA: I have not spoken to him, not even for a minute since his return to - to Jamaica.

GRIFFIN: But that has not stopped the sheikh from preaching in homes around Jamaica, gathering followers and especially over the internet. Listen to this.

SHEIKH ABDULLAH AL-FAISAL, THE HATE CLERIC: My God is not Obama. My dean is Islam and our Sharia. It would rule America.

GRIFFIN: It is the sheikh in an internet forum at the end of July titled, "The Battle of Washington". He declares Sharia law would one day rule this country if Muslims make sacrifices.

AL-FAISAL: If we want that White House and we desire to conquer that White House, we need to be people who suffer hardship. I believe it is a matter of time when we will see the emir established within the White House.

(END VIDEOTAPE)

GRIFFIN: Kiran, two reasons security officials are concerned. Number one, quotes like that obviously can be interpreted different ways by different people. The sheikh has influenced other people who have interpreted his messages to mean violence.

Secondly, lots of concern for a long time about the Caribbean being a new home for jihadist messages and this guy setting up base there is just one more reason that they are very worried about it.

CHETRY: So, what's his status in Jamaica right now?

GRIFFIN: He's a free Jamaican citizen. He hasn't committed any crimes in Jamaica. Kind of He's landlocked because no British carrier will fly him and no U.S. carrier will fly him. It's the reason Kenya had to actually charter a jet to get him back to Jamaica because there were no routes that could he take to get into a plane. But he is free to preach there in his houses. The Islamic community, the established Islamic community, won't let him in a mosque at this point.

CHETRY: That's telling.

GRIFFIN: Yes, it is telling. CHETRY: Great investigation. Thanks, Drew.

GRIFFIN: Thanks.

Abdullah el-Faisal (ph) is certainly not alone. Make sure to watch the special, "Bin Laden's New Jihadist," Saturday, September 11th at 8:00 p.m. Eastern right here on CNN.

CHETRY: We'll look forward into it.

Meanwhile, it's 31 minutes past the hour right now on this Labor Day. We check your top stories.

It's the end of summer, you know, unofficially. It's beginning of the fall campaign season officially if you ask those in Washington. Dozens of seats up for grabs in the Senate, hundreds more in the House. In fact, you know, all the House seats are up.

A shift in the balance of power could change how the government deals with the economy, with jobs, taxes, health care. We're going to have all the coverage this morning from the best political team on television.

GRIFFIN: And President Obama will spend part of this Labor Day talking up new economic policies, trying to boost the chance of Democratic candidates in the crucial mid-term elections. The president is making his pitch in Milwaukee, again in Cleveland on Wednesday.

The economy is number one with the voters. The latest CNN poll shows eight out of 10 Americans believe economic conditions are poor.

CHETRY: As many as 100 Guatemalans could be dead buried under heavy mud after a massive landslide there. At least 37 people were killed when torrential rains caused a hillside to collapse across a major highway. Ten thousand people have been evacuated. Most of them are now living in shelters.

GRIFFIN: Thirty-three Chilean miners starting their second month underground this morning. The men have been half a mile below the earth for 32 days. "The Washington Post" reporting the miners and their families angry with Chilean officials for allegedly censoring letters heading in to the mine, claiming they are only delivering ones with positive messages.

CHETRY: Meanwhile, Chilean officials are launching a third rescue operation that would actually use an oil drill. But the men are still expected to be trapped until late November or early December, at the earliest. There's a bright spot in all of this. One miner who's also a father to be will finally be getting to see new pictures of his unborn daughter.

Our Karl Penhaul has the history.

(BEGIN VIDEOTAPE) KARL PENHAUL, CNN CORRESPONDENT (voice-over): The ultrasound shows a baby girl, nestling in her mother's womb. A grainy video shows a miner father trapped far underground.

Elizabeth Segovia is due in less than two weeks. The scan on August 4th confirms she and husband, Ariel Ticona, were having a girl. The very next day, the mine where he was working caved in.

ELIZABETH SEGOVIA, PREGNANT WIFE OF TRAPPED MINER (through translator): My world just collapsed. I couldn't react. I just cried and cried.

PENHAUL: But her husband and his 32 comrades are alive.

SEGOVIA: I've been talking to her and telling her daddy is OK. I can't cry because if I did, the baby would feel everything.

PENHAUL: Tonight, Ariel's father has just come from the mine. He's carrying a letter sent up from the depths of the earth by Ariel to Elizabeth.

Before the accident the couple decided to name their daughter Catalina. But if he survives against the odds, Ariel has been thinking. He's come up with a better name. In Spanish, Esperanza means hope.

SEGOVIA: First, because we never lost hope. Second, because it's the name of the camp where the families are living. And third, because the 33 miners never lost hope either.

PENHAUL: Rescue is expected to take up to four months. No chance Ariel will be back to the surface for the birth. So, a relative plans to video the new arrival and drop an MP4 half a mile underground.

SEGOVIA: We have to record the birth in great detail as well as everything that happens to my baby day-by-day so we can show him.

PENHAUL: The couple already has two boys, 5 and 9. They miss their dad.

"Be well daddy, I hope they send you good food. Sleep well," Steven says. "I love you a lot and I hope nothing bad happens to you in the mine," Jean Pierre says.

It's tough being apart but at least it's not forever.

SEGOVIA: Maybe he won't be there for the birth, but he'll be here to see her growing up.

PENHAUL: Someday soon, they will meet in person -- the baby and the ultrasound and the miner in a grainy video.

Karl Penhaul, CNN, Copiapo, Chile.

(END VIDEOTAPE) CHETRY: This story just tugs at the heart strings because -- I mean, first of all, imagine bringing a baby into the world in the first place, everything that's going through combined --

GRIFFIN: Right.

CHETRY: -- let alone knowing he's underground -- still day live but a lot of uncertainty as to when they're going to get out and if everybody is going to make it OK.

GRIFFIN: Yes, just thinking of those guys all day yesterday. It freaks me out.

CHETRY: I know. And, you know, in beginning, we talked about them being upset about them possibly censoring some of the letters being sent down there. When we talked to Homer Hickam who's an expert on mines and also works with NASA, he said that they have to believe that everything good is going -- they have to have a reason to continue on, but that you have to be straight with them as well. You can't -- they can't feel like as if they're not really getting the information.

GRIFFIN: Interesting. This is going to be a big story when they all come out and really hear how much they enjoyed each other's company for so long.

CHETRY: Yes, right. Well, I'm sure they'll be so relieved. That will be a distant memory.

Thirty-seven minutes past the hour. Up next on the Most News in the Morning: It's the economy and jobs, of course -- issue number one this election season. We're going to be talking to "BusinessWeek's" Jim Ellis and CNN Money's Lex Harris, about what we should do next.

As we saw from the polling just out 30 minutes ago, 81 percent of the country thinks the economy is in poor shape. But, will any of these proposals being pitched by the White House and others turn things around? We're going to get some analysis coming up.

Thirty-seven minutes past the hour.

(COMMERCIAL BREAK)

(MUSIC)

KIRAN: Forty minutes past the hour. Happy Labor Day.

We're talking numbers today. A lot of times people grumble if they have to work. I think this year, people are happy if they have jobs.

It's an unofficial end of summer and comes the unofficial start of the election season. And it's all out political fight and the battleground is the economy.

Take a look at these new numbers released just 40 minutes ago here by CNN. We take a look how people view economic conditions today. Only 18 percent polled said they felt the conditions were good, 81 percent of Americans say that economic conditions are poor.

And the president will unveil a new economic plan this week, beginning with the Labor Day event in Milwaukee.

Joining us now Jim Ellis from Bloomberg "BusinessWeek," as well as Lex Harris from CNNMoney.com.

Thanks to both of you for being with us this morning.

Lex, I want to start with you about this discontent in numbers. I mean, 81 percent of people polled feel this way and we saw that Friday number come out, unemployment at 9.6 percent -- an uptick. What do we do?

LEX HARRIS, CNNMONEY.COM: Right. The numbers kind of blow me away even just hearing them here. And it's funny, because when numbers came up Friday, there was actually a huge sigh of relief from financial markets. It was like, oh, well, at least businesses are hiring.

CHETRY: Yes, because private sector added jobs.

HARRIS: Exactly. And it's been for several months in a row. There were some -- a few good signs, long term unemployment came down a little bit. But you do see sort of predictable scramble right now with -- there was talk a few months ago we're not doing any more stimulus. (INAUDIBLE) of course. Now, the drum beat is starting for stimulus three, perhaps.

CHETRY: What makes sense in terms -- if we're going to spend money, if the stimulus is happening, I understand it will be in the form of what, help to business, tax breaks?

JIM ELLIS, BUSINESSWEEK: In the form of help to businesses. But the key there is that we have to do it in a way that actually makes sense.

We spent a lot of money. We've already spent over $800 billion on stimulus. And so, you're going to get declining returns on this. So, you got to put it in smart ways.

What they're talking about is finding a way to make permanent the research and development credit. That's a credit, a tax credit that businesses get for making new investments in technology and processes that are going to create jobs in the future. That a good thing. And it probably does make sense to do it.

The issue is that we've had R&D credits since like 1981, but it keeps getting turned off. And so, this would make it permanent and allow businesses to actually say this is a long term, you know, sort of tax credit and therefore, I'm going to make long term decisions that are going to result in new jobs.

CHETRY: Well, speaking of jobs, when we talk about it on this Labor Day, there's a lot of fear about the number, 9.6 percent, because the indications say at this pace, eight years to get back where the labor market was even before the recession hit. So, what does it take right now to get businesses to hire, for people to actually be able to get off of the long term unemployment and get back to working?

HARRIS: It's -- I don't think anyone knows the exact answer. All the forecasts are that unemployment is going to stay a lot higher for a lot longer than anyone even thought a year and a half ago when we first started the stimulus program. But that's why you're getting a lot of people calling for more spending, more tax cuts and it's funny to me how the debate has shifted from -- you know, if there was this struggle between tax cuts and spending, tax cuts seem to be ruling the day right now.

CHETRY: That's interesting because there are some Democrats that are coming out saying that they are actually against letting the Bush tax cuts expire for the wealthiest earners as well, people -- households over $250,000. Are going to see that rolled back or what are we going to see with that as we head into November?

ELLIS: Well, a lot will depend on how strong they feel going in November. I mean, if people thinks -- if people in Congress feel that they are vulnerable, they're going to support having those, you know, extended. Probably --

CHETRY: Mark Zandi from "Moody's Economy" said it's not a good time at all to allow any tax cuts to expire. What is your take on how big of a difference it would make allowing all of the Bush tax cuts to stay in place?

ELLIS: I actually don't think it's going to make a lot of difference for the -- especially for the top 3 percent or 4 percent, which is where the real debate is. I think the top 3 percent or 4 percent of income earners, a lot of people spend, you know, a lot of time saying we ought to deal with the wealthy. But that's not the real issue here.

The real issue in longer term is finding a way to bring back U.S. competiveness in a world that's rapidly changing, where the growth has shifted overseas to places like India and China, And Russia and Brazil. And if we can't do that, then what we're doing now is just basically fiddling around the margins.

CHETRY: So, what is the answer for -- you know, because there's been a lot of criticism on this administration for not doing more to adjust to this, quote, "new economy," new technologies, green technologies, that many people thought were sort in the plan for the stimulus.

HARRIS: Yes. I mean, one of the -- one of the best criticisms came out about a month ago from PIMCO, a money manager at PIMCO, Bill Gross, who said we're throwing money down the economic toilet if we're just trying to inflate consumption. We need to be investing in education, clean technologies. This is stuff the president talks about a lot. It's very tough to push through right now in this environment.

ELLIS: But one of the big problems with that is that those are returns that we're going to get in future years. They're not going to happen by November, and Washington works on the calendar of the election cycle.

CHETRY: No, it's a good point. I mean, eight weeks out from the election and you see these poll numbers saying 81 percent of people think the economy is in poor shape. Not many people unfortunately or lawmakers were thinking long-term, but anyway, thanks to both of you for being with us. Jim, it was nice (ph) to talk to you as well Lex. Thanks.

ELLIS: Thank you.

CHETRY: Right now, we're going to send it back to Drew.

GRIFFIN: Good discussion, Kiran. Forty-five past the hour. Next on the Most News in the Morning, Reynolds Wolf in for Rob. He's going to have the morning's travel forecast right after this break.

And in ten minutes, no lawyers --

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WOLF: Welcome back to CNN AMERICAN MORNING, the Most News in the Morning. We got a full plate of things to share with you starting first and foremost with this system. Take a look. This is tropical storm Hermine. Yes, we're into the HS. You see some deep convection that's developing in parts of the Gulf of Mexico. Here's the Yucatan Peninsula.

This thing is getting a bit stronger and is expecting to become a fairly strong tropical storm, and the latest path we have from this from the National Hurricane Center shows possibly making landfall early Tuesday morning just south of the Texas border, in fact very close to the Mexican-Texas border with winds of 60 miles per hour, gust stronger and possibly a heavy rain maker into Wednesday and Thursday for central and eventually into North Texas.

For the rest of the country, we could see some heavy rainfall in the Western Great Lakes. Also severe storms are a possibility by late afternoon as this area of low pressure drifts its way to the east. Meanwhile, to the eastern seaboard and for much of the southeast pretty dry conditions, scattered showers possible for parts of the central and South Florida, also very dry out towards the west. And in terms of your temperatures, you can expecting your highs to be pretty warm, pretty muggy.

Dallas 94 degrees expected high, 89 in Houston, 76 in Denver, 65 in Billings, and your high in New York 82 degrees. Speaking of the Big Apple, take a look at this, wonderful shot that we have. The sun is coming up over one of the finest cities in America. There it is. A beautiful, beautiful way to finish up the holiday. We got more coming up right here on CNN AMERICAN MORNING, the Most News in the Morning. (COMMERCIAL BREAK)

GRIFFIN: Welcome to the Most News in the Morning. Nearly half of all marriages end in divorce in the U.S.

CHETRY: Yes, that's sad news. In Japan, however, divorce is also on the rise, but they're finding an interest way to mark the end of an unhappy marriage with a highly symbolic ceremony. I mean, don't you think you spent enough money for the wedding, right? That you really want to spend more to mark the end of it. Any who? Kyung Lah shows us people who like to say I don't Japanese style.

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KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT (voice-over): A diamond and platinum wedding ring symbolizing eight years of this couple's marriage. Gone in an increasingly popular ritual known in Japan as a divorce ceremony. Husband no longer taka. It marks the end of this phase of our lives, he says. The beginning for Taka and Michiko (ph) was in 2002. They had a child, built a life together, but eventually, grew apart.

UNIDENTIFIED FEMALE: A part of me is expecting I'll feel much better after this, says Michiko. I've had enough sadness.

LAH: The divorce ceremony begins with a silent and solemn procession through the streets of Tokyo, two rickshaws carrying man and woman. Inside this purposely shabby building, a symbolic ceremony before witnesses not to join together but to break apart. The diamond and platinum ring takes several hard hits before it's finally cracked. Walking to the reception, the former bride is all smiles.

I feel relieved after I smashed the ring, I feel free. The feeling is mutual, Taka tells me. I feel better than before we did this, he says. It's over.

LAH (on-camera): So much of the ceremony is filled with symbolism. The couple at the reception sits back-to-back at separate tables signifying their now separate lives. The party favors are chopsticks because there are two sticks that you pull apart.

LAH (voice-over): There's no chicken dance, but a fish and cake clad divorce musician at the reception singing about splitting up. Bizarre, no doubt, but a sign of the times in Japan. one in four marriages now end up in divorce, but it's still a cultural taboo. This ceremony which only cost about $600 helps some Japanese come to grips with the country's changing social norms say divorce ceremony planner, Hiroki Tarai (ph).

There's no mistaking that divorce is a sad process, he says, but I believe that by declaring your new start in life in front of your friend, relatives and family, you draw a clear line. It helps emotionally. Tarai says his business is booming. He's gotten 1,000 calls and the ceremonies booked for weeks. As far as Taka and Michiko, they say their thanks and farewells and walk off separately ever after. Kyung Lah, CNN, Tokyo.

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CHETRY: We may think that's crazy. They may think a Jerry Springer episode is crazy when people are throwing stuff at each other, so, you know, who knows.

GRIFFIN: Wow.

CHETRY: Hopefully, they seem simple.

GRIFFIN: I need to see those rings getting bashed, but --

CHETRY: Yes. They didn't really get smashed. They sort like turn into an oval. At least they seemed civil which is good news because Kyung Lah said they have a kid together.

GRIFFIN: Yes. Maybe they go to the fish can entertain at the kids' birthday party.

CHETRY: You know what, yes, exactly.

GRIFFIN: Remember that divorce ceremony where you hired that guy in the band. He was great. What the heck?

CHETRY: With volume price of $600. Oh, man. We're going to take a break. We'll be back in two minutes.

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