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CNN Sunday Morning

Closing Arguments in Casey Anthony Trial to Come Soon; Thaddeus McCotter Enters Presidential Race; Should California Be Split Into Two States?

Aired July 03, 2011 - 06:00   ET

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


T.J. HOLMES, CNN ANCHOR: Good morning, everybody.

Another state OKs same-sex unions. A milestone, yes, but same- sex couples still aren't happy because this new laws fall short of marriage.

Also, he wants to restructure the federal government. Also wants to play you a tune. Another Republican formally enters the presidential race.

Also, we've been stuck on 50 for a while now, so maybe we need a 51st state. There's a new proposal to create a North and a South California.

Good morning to you all. I'm T.J. Holmes, coming to you live from the CNN Center in Atlanta, Georgia. Thank you for being here. And as always, we want to say good morning to the servicemen and women watching us right now on the American Forces Network. Thank you for being here and thank you for what you do.

It is going to be a big day today in the Casey Anthony murder trial. Closing arguments in that murder trial are just a few hours away. Court is scheduled to start at 9:00 A.M. Eastern Time. Casey Anthony, as you know, accused of murdering her 2-year-old daughter Caylee. Yesterday, there was a vigil for Caylee near the spot where her body was found.

After today's closing arguments, the case expected to go to the jury. Here's a look now how we got to this point in the trial. This all began in late May. Casey Anthony facing seven charges, including capital murder. That means she could face the death penalty if she's found guilty. The defense and prosecution both wrapped up their cases last week. Casey Anthony decided not to testify in her own defense.

More on that throughout the morning.

Also, a jailhouse phone call is raising more questions about the accuser in the Dominique Strauss-Kahn sexual assault case. The former chief of the International Monetary Fund was released from house arrest on Friday. Here he is heading out of his Manhattan apartment again yesterday. Mr. Strauss-Kahn is accused of sexually assaulting a hotel maid and last week prosecutors said the accuser's story raised credibility questions.

CNN National Correspondent Susan Candiotti has more now on the jailhouse phone call supposedly from the accuser to her boyfriend.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (on camera): As Dominique Strauss-Kahn waits to hear whether the district attorney will pursue sex assault charges against him or drop the case altogether, there is new detail about credibility issues involving DSK's accuser.

JUDGE MICHAEL OBUS, NEW YORK STATE SUPREME COURT: And for Mr. Strauss-Kahn's release on his own recognizance.

CANDIOTTI (voice-over): A bombshell discovery came only one day before prosecutors told the defense team about the maid's credibility issues. A source with knowledge of the investigation tells CNN the DA's team got a translation of a jailhouse phone call recorded in Arizona.

As first reported in the "New York Times", a source now tells CNN that the call in a dialect of the maid's native Guinea was made between the maid and a boyfriend the day after the alleged sex attack. The source tells CNN the maid said, quote, something like "She says she's fine and this person is rich and there's money to be made."

Investigators also discovered several bank accounts in the maid's name in different states, accounts, the source says, she did not disclose to investigators on her own. Quote, "She was getting deposits of several thousand dollars at a time," the source tells CNN, "from people she knew, potentially involved in drug dealing."

(on camera): Strauss-Kahn's attorneys insist he is not a rapist, and they want the case dismissed.

Susan Candiotti, CNN, New York.

(END VIDEOTAPE)

HOLMES: Anti-monarchy protests expected in Quebec City today as William and Kate, the Duke and Duchess of Cambridge arrived to tour the city. This is the scene you're seeing in Montreal yesterday. A small crowd protested the arrival of the royal couple. It's the royals' first trip outside the U.K. as a married couple.

While in Montreal, the couple took a cooking class. They spent last night aboard a Canadian Naval Ship that the British media are now calling the love boat. The royal couple is scheduled to make their way to California on Friday.

This, the scene at the Georgia capital in Atlanta yesterday. Thousands gathered to protest the state's new anti-immigration law. Most of the law went into effect on Friday.

(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: They deported our parents and who are we going to have to take care of us? Like, we can't take care of ourselves.

UNIDENTIFIED MALE: And it's the first time that I feel I've been targeted because of how I look. It's been very uncomfortable. And sometimes I don't feel secure.

(END VIDEO CLIP)

HOLMES: A federal judge stopped some of the more controversial provisions of the law, including the one allowing police to question crime suspects about their immigration status. Georgia's governor is vowing to fight to get those provisions back in the law.

Well, Rhode Island has legalized same-sex civil unions. Governor Lincoln Chafee signed the bill into law yesterday. It will give same- sex couples a bunch of new state tax breaks, health care benefits and other legal perks, but some say still doesn't go far enough.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We feel that civil unions create a second- class citizenry for thousands of gay and lesbian couples in loving, committed relationships.

(END VIDEO CLIP)

HOLMES: And the bill sailed through the state Senate last week despite some strong opposition.

Well, crews are trying to clean up crude oil spilled into the Yellowstone River from a broken pipeline. There's oil along at least 70 miles of the river near Billings, Montana. The pipeline is operated by Exxon Mobil. A rapid response team was sent in to try to contain the leak.

Six minutes past the hour. It's a holiday weekend. Let's say good morning to Reynolds Wolf. How are you doing, sir?

REYNOLDS WOLF, AMS METEOROLOGIST: Doing pretty good.

But that's a scary sign out there. Have you been (ph) near Yellowstone?

HOLMES: No. Yes.

WOLF: Just to make it clear, it's not in Yellowstone National Park. It's outside of the park with the big danger is you've got this incredible rainbow trout that have to be there, and they are top feeders, meaning they go up to the surface, they break water surface and they catch (INAUDIBLE), whatever.

The thing is if they go up in the surface and somehow the oil gets into their gills, they can (INAUDIBLE), they suffocate, it dies. And, of course, a lot of the bears, a lot of the Grizzlies that feed on those, it disrupts the food chain, so it's a big problem.

Big problem possibly today, T.J., for people who are trying to celebrate the Fourth of July Weekend. I know the Fourth is tomorrow with barbecues are well under way. Today along the Eastern Seaboard, showers, thunderstorms, maybe even a little bit of flash flooding along the Mid-Atlantic Coast. We got more on that coming up, T.J.

HOLMES: All right. See you in just a minute. Reynolds, thank you so much.

And California, could it be ready for a breakup? Next, why some people are saying the southern half of California should become the country's 51st state.

It's seven minutes past the hour.

(COMMERCIAL BREAK)

HOLMES: Eight minutes past the hour. Fourth of July is tomorrow. You've got plenty of fireworks displays going to be happening around the country. But some are getting a head start. Take a look.

My director told me I could talk whenever, but I was just taking this in for a second there. This is Independence Day celebration in Madison, Wisconsin, the largest in the Midwest. More than 11,000 shells fired. Madison police estimate a quarter of a million people did attend the event.

Now, in Texas, the skies are not going to quite look like that, we don't believe. They are dealing with one of the worst droughts in years. The map here shows that counties that are under a burn ban, just about every county in Texas. More than half of the state counties have now banned fireworks displays as well.

And, of course, Reynolds, as we know, the fear there with fireworks, you don't want to be playing with fire when you've got all that brush that could catch fire, we got problems. So do what you got to do.

WOLF: But it's so frustrating, isn't it?

HOLMES: Yes.

WOLF: Because on our day of our nation's independence, there's no better way to celebrate it than with explosives, you know? And we are not able to do that. It is - it's tough. It's frustrating.

HOLMES: It makes you want to blow something up, right?

WOLF: It does. It does. I'm feeling like a good implosion right about now. Unfortunately, I don't think there's one on the horizon.

HOLMES: OK. No.

WOLF: You know, we used to have those, you know, in the weekend morning.

HOLMES: Weekly.

WOLF: Exactly.

Hey, get some clothing weather on parts of the East Coast. Let's hop on over here if we can and show you what we're talking about.

If you happen to be waking up in New York, you may already know. We're talking about the scattered showers, a few storms popping up, a few rumbles of thunder are also in places like New York this morning. We are going to be seeing in a few of these key spots some fairly heavy thunderstorms. The reason why we're going to see them is very simple. It's this area of low pressure that's going to be drifting from west to east across the nation. And with it, you can expect a few scattered thunderstorms.

The worst part of it is it's actually going to be farther to the south towards Washington, D.C. later on into the afternoon hours, maybe a big rumble of thunder, maybe some flash flooding in spots with poor drainage.

But for many of you who are heading out to the coast, you may be dealing with some rain there, too. In Galveston, 94 degrees, about 20 percent chance of precipitation. And when I'm talking about precipitation in spots like Galveston, Mobile or even Destin with the highs within the 90s. We're talking about the sea breeze thunderstorms that come in. They pop up. They drop the rainfall. A little bit of lightning here and there and then they begin to dissipate.

Tampa 94, 85 with Miami Beach, better chance of rain there with a 60 percent chance, water temperatures are in the mid-80s, where it's almost like bath water out there. Savannah, Hilton Head, it should be picture perfect, 90s and 80s in both spots. Farther north (ph) you go, the cooler the water becomes. Going into (ph) the 70s when you get to Virginia Beach, Atlantic City and Cape Cod. Cape Cod 75 degrees. It's going to be beautiful out there.

Again, here's the big rainmaker that we have. This area of low pressure that is just slowly moving its way to the east. When it does you're going to hear the rumble of thunder, maybe even some small hail by late afternoon.

Back out to the Central and Northern Plains. Same situation, not a cold front but rather warm front mainly going from the southwest to the northeast. And the heat remains in the desert southwest.

Well the question may beg, how hot will it be? Well, here's your answer. Going all the way to 94 in Albuquerque; in El Paso 97; 102 in Dallas; 98 in Houston; Phoenix, yes, it's - your temperature's not there. Let me help you out there. You're going to see about one- zero - let's put another one here. About 110 the possibility into the afternoon. There you go. Los Angeles going to about 77 out by Staples Arena. And so it's Staples Center or Staples Arena?

UNIDENTIFIED MALE: Center.

WOLF: Sorry. I'm not a Lakers fan, I'm sorry. Seventy in Seattle; 86 in Minneapolis; 82 in Chicago and 93 in Atlanta. But I do respect Kobe, just know that.

Let's pitch it back to you, T.J.

HOLMES: But they call it the house that Shaq built, actually, the Staples Center.

WOLF: Go figure.

HOLMES: Yes.

WOLF: I bet that works real well for him.

HOLMES: I bet. All right, Reynolds. Appreciate you, buddy.

Well, 12 minutes past the hour.

Speaking of California, the Staples Center is located in California right now, but it could be located in a different state if one lawmaker has his way. He thinks it would be a good idea for the State of California to split in two, into a North California and a South California.

This map gives you an idea. And we're talking about the Riverside County Supervisor, his name is Jeff Stone. He is from Southern California. He wants about a dozen other counties to join him in forming a new state - the State of South California.

The map here shows, you can tell he actually doesn't want Los Angeles to be in his state. He says North California can have Los Angeles. He says the state legislature is out of control. That's behind this whole idea. He thinks keeping their own tax dollars into Southern California is a good plan.

(BEGIN VIDEO CLIP)

JEFF STONE, RIVERSIDE COUNTY SUPERVISOR: Our state legislature that's supposed to be making laws and being respected imposes laws that aren't even lawful. So, you know, I think our state is California gone wild.

BRYANT MCDONALD, REDLANDS, CALIFORNIA RESIDENT: I think certainly the spending, the government we have in Sacramento doesn't really properly represent the interest of the people in Southern California, certainly their spending habits. Whether or not it's ever going to happen, probably not.

(END VIDEO CLIP)

HOLMES: Probably not. A lot of people say it does have some merit to the plan, but in all likelihood this is not going to happen. They're discussing it now, the board and the county, Riverside County will take it up. If they OK it, it could go a little further. So we'll see.

But you might think that sounds crazy, but it's actually been proposed before, a couple of times. In the 1970s, there was talk about splitting it in half, East and West that time. And in 1992, one politician wanted the state to split three ways.

We're 14 minutes past the hour.

Stick around for something we want to show you, show you what some of our troops are going through in Afghanistan. One of our correspondents embedded with the troops there, caught in the middle of a firefight. That is next.

(COMMERCIAL BREAK)

HOLMES: Sixteen minutes past the hour now.

They are surrounded by enemy fighters, have to be on constant watch. Troops at the U.S. outpost at Kunar, Afghanistan are there to battle militants coming in from Pakistan.

Embedded CNN correspondent Nick Paton Walsh brings us dramatic video of two attacks in just 15 hours.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN CORRESPONDENT (on camera): Well, Kunar in Eastern Afghanistan is some of the toughest terrain that America has troops in here. And you can see this particular base is surrounded by hills on either side, which give the insurgency a central vantage point from which they can attack. The base violence frankly is so consistent it makes it very hard for them to have the kind of contact with locals they need. Life here, really, a waiting game for the worst to happen.

(voice-over): Everywhere you look here in Kunar, on Afghanistan's eastern border, the choices aren't good. Outpost Pirtle King is caught between hills full of Taliban. If the Americans leave, militants from Pakistan will flow through the valley. And if they stay, then every few days this happens.

Mortars hit the base. The last attack was long enough ago there's panic. They're worried the Taliban have been preparing a big one.

(on camera): Well, after days of nothing, the insurgents now finally amass around the compound beginning an attack of both sides.

UNIDENTIFIED MALE: Fire.

UNIDENTIFIED MALE: Come on. Hustle up. Grab it when you're ready.

PATON WALSH (voice-over): They use mortars first aiming for Taliban dug (ph) into the hills. But the incoming fire is very accurate here. UNIDENTIFIED MALE: Fire.

UNIDENTIFIED MALE: Go, go, go, go, go!

PATON WALSH: They arrange cover from heavy machine guns.

UNIDENTIFIED MALE: Grab the round and as soon as they go, quick, drop it!

PATON WALSH: But the bullets are too close.

UNIDENTIFIED MALE: Never mind!

PATON WALSH: Locals scatter. Just before huge American firepower has the last word -

UNIDENTIFIED MALE: Oh.

PATON WALSH: -- four massive air strikes across the hills and then the Taliban falls silent.

America knew why it came here, but isn't sure why it's staying.

UNIDENTIFIED MALE: Can we get like a police car for like brass and cigarette butts or anything - no?

UNIDENTIFIED MALE: (INAUDIBLE).

PATON WALSH: Ten minutes later, jets swoop in to strafe the hills. A show of force, but the Taliban are now either gone or dead. At least five killed by the soldiers count.

The next morning, it starts again. Mortars and rocket propelled grenades pound the base.

(on camera): For the second time in just 15 hours, the base is under attack, much heavier this time. And it appears they've taken casualties.

(voice-over): More air strikes, this valley is vital strategically, but doesn't want to be conquered.

The medics fly in to collect one soldier, his injuries are not life threatening.

(on camera): An American presence in bold areas like this as many argue vital to the country's integrity. They can stop here, students flooding in from Pakistan's madrassas. Staying, though, does incur a pretty huge cost, leaving, though, runs the risk of allowing areas like this to become the safe havens that America came here in the first place to eradicate.

(voice-over): There's no real victory to be had here, though, just a question of how long they will stay growing louder.

Nick Paton Walsh, CNN, Kunar, Afghanistan. (END VIDEOTAPE)

HOLMES: Of course, the drawdown for U.S. service members stationed in Afghanistan starts this month. Ten thousand of them expected to be pulled out by the end of the year.

Well, 20 minutes past the hour.

I want you to take a look at the screen. If you're just listening to the news, look at it for a second. Did you see this? A guy there is trying to diffuse a bomb and look what happens. It was all caught on surveillance video. But you wouldn't believe what happened right after the blast. Show that to you when we come back.

(COMMERCIAL BREAK)

HOLMES: Twenty-three minutes past the hour on this CNN SUNDAY MORNING.

We had another royal wedding yesterday. Did you see this? The marriage between Monaco's Prince Albert and his long-time girlfriend Charlene Wittstock. They were married in a Catholic ceremony yesterday at the Palace courtyard. Beautiful music to go along with this for you. They actually had a civil ceremony. The official civil ceremony was on Friday, but the big shindig was yesterday.

Wittstock is a former Olympic swimmer and was raised in South Africa. Thirty-five hundred guests attended including 20 heads of state. Prince Albert is the only son and former ruler of actually Hollywood icon, Grace Kelly, who of course married Prince Rainier there many, many years ago.

Now, this is the video I was showing you before the break. Take a look at this. Surveillance video in Thailand. It looks like something out of a movie, a stunt or something. But this is the real deal.

That's the guy in the Bomb Disposal Unit getting blown up, but this is the part that will get you. But look at him. He just gets right up and walks away after that explosion. You see him wearing that protective suit. Well, apparently those things work. He only had minor injuries.

Police say the bomb in the car was actually detonated by someone who was probably near the scene and may have been watching the guy walk up to the car and waited for the moment to detonate that explosive.

But still, it's amazing to see that take place. He's blown back and then he gets right up and walks away.

Let me take you now to the contact sport of government in the Philippines, at least. This is the female mayor of the town here we're talking about, repeatedly punching a court officer in the face. Yes, in the face, when he ignored her appeal to postpone the demolition of a shanty town. Well, the town was built after a recent flood. The mayor had asked for a two-hour delay so that she could mediate tensions between squatters and police and then she let the fists fly.

Twenty-five past the hour now.

If you apply for welfare in Florida, you will be screened for drugs now. We'll tell you about this controversial new law. We also talked to the Florida Governor, Rick Scott, who made its passage a top priority. That is next.

(COMMERCIAL BREAK)

HOLMES: Good morning, L.A. Enjoy being a part of California while you can.

We were telling you a little while ago, if one lawmaker has to have his way, they would split the State of California in two. So L.A. would then be a part of North California. There would be a 51st state called South California.

We'll tell you more about that a little more if you missed it throughout this morning on CNN SUNDAY MORNING.

But to give you a look at some of the stories that are making headlines today.

Closing arguments expected to begin in just a little while in the capital murder trial of Casey Anthony. The Florida mother is accused of killing her 2-year-old daughter, Caylee. You're seeing Casey's father there in that first picture. If the jury gets the case tonight, a court spokesman said, they will deliberate through the July Fourth holiday.

Also, people in Wisconsin are cleaning up after some strong storms ripped through the northwest and part of the state. Look at that. One person killed, another 39 injured. The storm tore roofs off buildings, left thousands of people without power.

Also, in New Mexico, a bit - a bit of good news for the nuclear facility at Los Alamos. The lab has lifted a state of emergency because wildfires burning nearby are no longer a direct threat. The lab hasn't said when it might re-open. About 10,000 people evacuated from their homes and are waiting to hear when they can return.

Well, if you apply for welfare in Florida, you will be screened for drugs. A new law just went into effect. It requires adults applying for federal welfare benefits for their children to pass a drug test. People who flunk the test can pick someone else to receive their kid's benefits.

I recently talked with Florida Governor Rick Scott who pushed for the bill's passage.

(BEGIN VIDEOTAPE) GOV. RICK SCOTT (R), FLORIDA: It's not right for taxpayer money to be paying for somebody's drug addiction. On top of that, you know, the - this is going - this is going to increase personal responsibility, personal accountability. We shouldn't be subsidizing people's drug addiction.

And you have to remember, welfare is for the benefit of our children and they shouldn't be - the money should be going to take care of them, not for somebody's drug addiction.

HOLMES: OK, I guess - I guess that's one of the points that people have and one of the problems they have. You just said that you don't know if they're using drugs, if welfare users or welfare recipients are using drugs. So, if you don't know, why treat them like you suspect that they are?

SCOTT: Oh, I'm not at all. I just want to make sure our taxpayers are not interested in subsidizing drug addiction.

I mean, it's no different than - think about it, if you go to apply for a job, they're not saying you use drugs. They're just saying in that work environment they don't want you to - to use drugs. In this case, we do not want to subsidize drug addiction.

We want to give everybody increased incentive not to use drugs. It's better for our families, it's better for the individual, and it doesn't waste taxpayer money.

HOLMES: And, like you said, you don't want to subsidize drug addiction, but I keep going back to this point because this is one that people are getting on, you don't want to subsidize it, but what evidence did - do you have that you are now or you have been? What evidence is there that there are people in your state who are drug users?

I mean, it's OK if you just - you just say you believe that plenty of people on welfare are drug users, but it doesn't sound like you want to say that.

SCOTT: Sure, T.J. Studies show that people that are on welfare are higher users of drugs than people not on welfare.

But the bottom line is this, you know -

(CROSSTALK)

HOLMES: Sir, to that point -

SCOTT: -- we don't have an issue.

HOLMES: To that point, a lot - that would stop people in their tracks, and we - I don't have whatever study you are referring to, but you're saying that people out there who need this assistance, lost jobs, are on welfare have a higher tendency to use drugs?

SCOTT: Absolutely. Studies show that people on welfare are using drugs much higher than the population.

But the bottom line is if they're not using drugs, it's not an issue. Our taxpayers don't want to subsidize these drug addictions. It's going to increase personal responsibility. It's the right thing to do for Floridians.

(END VIDEOTAPE)

HOLMES: You know, several top Florida Democrats have opposed the bill from the very start. They call it unconstitutional as well as an invasion of privacy.

Well, at 32 minutes past the hour now. Coming up, we're going to hit the road with Reynolds.

(BEGIN VIDEO CLIP)

WOLF: This is one of the many beautiful squares in Savannah, but I'm not quite sure what the name of this particular one happens to - of course. I mean, it all makes sense. Of course it does. Love it.

(END VIDEO CLIP)

HOLMES: We're heading to Reynolds Square. We're talking one trip on one tank of gas. Just how far can you go?

That's next.

(COMMERCIAL BREAK)

WOLF: (INAUDIBLE). I mean, for years you - you celebrate his entire collection, you had the braids at one time, you - you, you know, loved the music, you played the guitar.

HOLMES: Yes. They didn't have to go find this music. They just said, T.J., bring in your collection.

WOLF: It's amazing how that happens. This is right next to the John Denver and (INAUDIBLE) collection.

HOLMES: And this - this is good riding music.

WOLF: Yes.

HOLMES: This is the kind of stuff you were riding to.

Now, this could help a lot of folks out. Reynolds is doing a public service here because, you know, tour of the music (INAUDIBLE). So you have a large family, getting plane tickets for everybody, that's tough. Sometimes you need to just hop in that car and hit the road.

WOLF: It is a tough time for everyone.

HOLMES: Yes. WOLF: I mean, economically nationwide we're having a very difficult time and, you know, we're kind of - this - this story harkens back to an earlier time when the family vacation used to be getting into your - your Country Squire, just - or - or the van, bigger van, you can just go down the road and you - whatever you see is your vacation.

Well, that's basically what we did, and we did it on one tank. Check it out.

(BEGIN VIDEOTAPE)

WOLF: We're starting a journey today, going from St. Mary's, Georgia, to Savannah. I'm not going by myself. I got two other people with me. I got CNN photojournalist Ric Blackburn - he's behind the camera; and we also have producer Alicia Eakin.

Three friends, one vehicle, one tank of gas. Let's hit the road.

RIC BLACKBURN, CNN PHOTOJOURNALIST: We're rolling kids.

WOLF: (INAUDIBLE) we are.

And our first stop on today's trip on a tank is here at Cumberland Island, Georgia where you have the sun, you've got the surf, you've got the island, and the manatees. Check those guys out.

But it's not just the animals. We've got some incredible ruins here too. Maggie Tyler of the National Park Service is here with us.

Maggie, how long have these things have been here?

MAGGIE TYLER, NATIONAL PARK SERVICE: The Dungeness was built in the 1890s and it actually burned in 1959 and became part of the National Park Service in 1972.

WOLF: It's been around for a long time.

TYLER: Yes.

WOLF: But, speaking of time, it's time for us to keep moving. Let's go.

Let's just keep things in perspective. You know, as we get one step closer to Savannah, we're going to see all kinds of neat things, but it's not like we're going to see a giant submarine sticking out of the ground. Let's be serious.

I'm speechless. Take a look at that. The USS George Bancroft.

Unbelievable, a submarine coming out of the ground here in Saint Mary's, Georgia. Clearly, nothing, nothing on this trip on a tank can top that.

Actually, it can. We're in Woodbine, Georgia and we found this - dead peoples' things for sale. Wow. Alicia, is it open?

ALICIA EAKIN, CNN PRODUCER: It's shut.

WOLF: Ric, you want to stick around? All right, let's get back in the car.

BLACKBURN: Breaker one nine. Gee, doggy.

WOLF: Well, the journey brings us to Saint Simons Island, Georgia, where we've seen a lot of these amazing carvings on these trees here on the island. The artist put these together as a memorial to the sailors who lost their lives at sea. There are a lot of them, and these things are creeping me out.

And we are out of here.

We decided to take a small break at the smallest church in America. Well, at first glimpse, a shocker. It looks small.

Let's go take a peek inside. Watch your head there Ric. It's going to - hello.

And inside the tiny church, we've got our tiny producer. She's 5'1". We're allowed to say that she's kind of small.

What do - what do you think? Do you feel crowded?

EAKIN: Just right.

WOLF: Yes. It's right for her, but for me and for Ric, we're tall, so we're going to move on to bigger stories like our big story.

We finally made it to our destination in Savannah, Georgia. Now we can look around. Let's hop on the old town trolley.

It is amazing what you'll see when you're moving through this incredible city. Just beautiful stuff. Denise is our driver. Denise, what is the number one stop for people in Savannah?

DENISE, SAVANNAH OLD TOWN TROLLEY DRIVER: The number one stop here in Savannah is Forsythe Park.

WOLF: Wow. Let's check it out.

And there it is, the incredible fountain here in Forsythe Square in Savannah. You know, it has been an amazing trip, from St. Mary's to Savannah, over 200 miles, one tank, one trip, and so many sights that we were able to see.

We'll see you next time down the road.

(END VIDEOTAPE)

WOLF: OK, one of the biggest disappointments of going to Savannah is that we actually tried to go and sit in the Forrest Gump bench. It doesn't exist. It's actually been picked up and put in a - in a museum. So it is there, it's just not in the right place.

HOLMES: OK. You know, they didn't appreciate it. Savannah is like, hey, that was our whole thing to get people to town.

WOLF: That's right. Exactly. I mean, there's nothing else there.

Savannah's fantastic. There's so much there.

Let's talk about the money, get into the nuts and bolts of this again. It was a very economical trip. There you go, 200 miles. We went through six cities, small towns, and it cost about $99 to fill up a Ford Expedition. You get a smaller car, more fuel economic, guess what? It's going to be cheaper for you.

Gas, you see the price of the ferry there. You don't have to take the ferry trip or even the trolley. You can see much of these things without paying that fee and it would be much lower than our cost of $237. And I think what we're going to try is next time we're also going to try to - to do things that strictly are - are free, that you can just stop by and see.

And - and the thing that's about - that's amazing with these trips, the things that we're going to show you hopefully the next couple of weeks are - are bizarre and amazing things, like the world's largest dried apple. It could be George Washington Carver's first laboratory. It might be something like, you know, the home of Jo-Jo the Dog-Faced Boy. Yes.

HOLMES: Or whatever.

WOLF: Or whatever.

HOLMES: We'll be taking ideas as well. (INAUDIBLE).

WOLF: Taking ideas. In fact, if you wanted to go to CNN.com/Travel, by all means offer some suggestions. And on that page you're going to see suggestions from - from five other correspondents here at CNN that offer other trips and other various places around the country.

It's a - it's a great thing, so, yes.

HOLMES: Cool. We'll see you on the road soon.

Reynolds, appreciate you, buddy.

WOLF: I still need your Willie Nelson collection. I'm taking it with me.

HOLMES: Oh, not a - not a problem at all.

WOLF: (INAUDIBLE).

HOLMES: And Reynolds will be back with your holiday forecast. All the people wondering what's it going to be like on the Fourth? We'll talk to him again here shortly.

Meanwhile, we've got a special honor to tell you about for Robert Gates.

Now the outgoing Defense Secretary gets a big sendoff and a medal for his service. And we'll hear the president's parting words.

(COMMERCIAL BREAK)

HOLMES: At a quarter off the top of the hour now.

Leon Panetta is now on the job at the Pentagon. The newest Defense Secretary was sworn in last Friday. He says he's committed to keeping the military strong, despite calls for up to $400 million in cuts.

Panetta was the head of the CIA before being picked by President Obama to take over at the Pentagon.

So with Panetta officially in, Robert Gates is officially out. And Gates took over the Pentagon near the end of George W. Bush's presidency. He stayed on in the current administration to help lead the military during operations in Afghanistan and Iraq.

President Obama paid tribute to Gates at a special ceremony at the Pentagon.

(BEGIN VIDEOTAPE)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Bob, this may be your greatest legacy of all, the lives you saved and the confidence you gave our men and women in battle who knew that there was a Secretary of Defense who had their backs and who loved them, and who fought for them and who did everything in his power to bring them home safely.

So today, we not only pay tribute to a remarkable public servant, we celebrate the principles for which he served and for which our nation stands. I believe the life of Bob Gates is a lesson, especially to young Americans, a lesson that public service is an honorable calling, that we can pass our country better and stronger to those who follow.

Our next Secretary of Defense, Leon Panetta, has subscribed to this same life of service, and I'm confident that he, too, will lead this department with clear vision and a steady hand.

As Commander in Chief, I am determined that Armed Forces will always, always remain the best trained and the best led, the best equipped fighting force in history. And in an uncertain world that demands our leadership, the United States of America and our Armed Forces will remain the greatest force for freedom and security that the world has ever known.

This is the America, strong and confident, to which Bob Gates has devoted his life. I could think of no better way to express the gratitude of the nation for Bob Gates than with a very special recognition. Bob, this is not in the program, but I would ask you to please stand.

As president, the highest honor that I can bestow on a civilian is the Presidential Medal of Freedom. It speaks to the values we cherish as a people and the ideals we strive for as a nation. And today it is my great privilege to present the Presidential Medal of Freedom to America's 22nd Secretary of Defense, Robert M. Gates.

ROBERT GATES, FORMER DEFENSE SECRETARY: I'm deeply honored and moved by your presentation of this award. It is a big surprise, but we should have known. A couple of months ago you've gotten pretty good at this covert ops stuff.

(END VIDEOTAPE)

HOLMES: That was kind of funny there, Secretary Gates. The Presidential Medal of Freedom, which Gates got at that ceremony, is the country's highest civilian honor.

Well, at about 12 minutes to the top of the hour. Still to come for you, check this guy out.

Well, he wants to restructure the federal government, but he wants to play you a tune first. Another Republican formally enters the presidential race.

(COMMERCIAL BREAK)

HOLMES: So, about 10 minutes off the top of the hour.

A couple of pictures, live pictures up here of the Nation's Capital. A lot of celebrating going to be happening there over this holiday weekend. I hoped to there be with you, but I had a change of plans. I'm not going to be able to make it up.

But still, everybody's going to be enjoying the fireworks, the mall. Just everybody taking in the nation's birthday in Washington, D.C.

And there is, today, a new candidate in the presidential race this morning - Thad McCotter. You know him? Well, he's a Michigan congressman.

Listen to how he kicked off his campaign.

(BEGIN VIDEO CLIP)

REP. THADDEUS MCCOTTER (R), PRESIDENTIAL CANDIDATE: I am announcing my candidacy for the nomination of my Republican Party to serve as your president of the United States.

(END VIDEO CLIP)

HOLMES: He is now the tenth Republican in the race, and nobody else did it like this when they announced.

Yes, who is he exactly? Well, you can tell he plays the guitar. He plays in the band called the Second Amendments. That will probably help him on the trail somewhere. Other members of the House in that band as well.

McCotter is serving his fifth term in Congress, representing the suburbs around Detroit. He's a member of the influential House Financial Services Committee, and he says he'll play up his support for the auto industry bailout as part of his campaign.

Meanwhile, the debate over raising the debt ceiling has led to a big change of plans for Congress. They are working this week instead of taking a longer Fourth of July break.

CNN Congressional correspondent Kate Bolduan has more on the political theater playing out in Washington.

KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: T.J., Senate Majority Leader Harry Reid canceled the Senate's July Fourth week break in order to continue working on the debt negotiations, he says. That and the president's press conference set off some pretty astonishing political theater up here as the debate over raising the federal debt ceiling rages on.

(BEGIN VIDEOTAPE)

BOLDUAN (voice-over): After President Obama scolded Congress for taking time off instead of getting to work on a deal to raise the federal debt ceiling, the Senate's top Republican issued a challenge in the form of an invitation right back at the president.

SEN. MITCH MCCONNELL (R), MINORITY LEADER: The president says he wants to get working. He wants us to get working. I can't think of a better way than to have him come right on over today. We're waiting.

BOLDUAN: Republican Senator John Cornyn took it even further, calling the president's Wednesday press conference, quote, "absolutely disgraceful."

SEN. JOHN CORNYN (R), TEXAS: He should be ashamed. I respect the office of president of the United States, but I think the president has diminished that office and himself by giving the kind of campaign speeches that he gave yesterday.

BOLDUAN: And Cornyn issued a challenge of his own as the president heads out of town for two political fundraisers.

CORNYN: Instead of going to Philadelphia tonight and raising money, why isn't it - why didn't he call Senator McConnell, Speaker Boehner, Minority Leader Pelosi and Majority Leader Reid into his office and sit down and do his job?

BOLDUAN: That elicited this sharp rebuttal from the president's spokesman.

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: We can walk and chew gum at the same time, as you - as the president said yesterday.

BOLDUAN: Meantime, in a choreographed offensive, Democrats took to the Senate floor, one after another, laying out what they call egregious tax breaks and accused Republicans of protecting only the wealthiest Americans.

UNIDENTIFIED MALE: As a special write-off for thoroughbred racehorses.

UNIDENTIFIED MALE: The tax break for yacht owners.

UNIDENTIFIED MALE: A tax break for private jets.

BOLDUAN: And the sharp rhetoric turned to political theater when Republicans bulked at the timing of an unrelated trade deal meeting that Democrats said would help the economy.

SEN. JOHN KERRY (D), MASSACHUSETTS: And I look over there and I see these empty chairs, on the very same day that the July 4th recess has been canceled, because four or five members on that side refused to allow the Senate to recess, supposedly because we have so much business.

(END VIDEOTAPE)

BOLDUAN (on camera): A whole lot of fiery rhetoric on both sides, but it's not clear if any of this will have any impact on pushing the stalled debt talks forward. Still no meetings scheduled between the main negotiators, Republican and Democratic leaders, and the White House - T.J.

HOLMES: All right. Thanks, as always, to our Kate Bolduan.

Well, we are just five days away from the final shuttle liftoff. At $4 billion a year for the program, has it been worth it? We take a look, next.

(COMMERCIAL BREAK)

HOLMES: We're getting close to the top of the hour here now.

And Friday marks a milestone for NASA. That's when Atlantis, the final Space Shuttle mission ever, is scheduled to launch.

The Shuttle Program was created almost a year before the Apollo moon landing, and unlike other designs, the shuttle was re-useable and considered by some as cost effective. So why is NASA ending the program now?

Our John Zarrella asks the experts, was the Shuttle Program a success or a failure?

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT (voice-over): From the beginning, it was a marvelous machine, releasing from its cargo bay deep space probes, like Ulysses that went to Jupiter. Astronauts ventured out untethered.

UNIDENTIFIED MALE: The trip to SolarMax estimated to take 10 minutes.

ZARRELLA: To capture and retrieve failed satellites, dead in space, dangerous feats unheard of before Shuttle.

UNIDENTIFIED MALE: Houston, I think we got a satellite.

ZARRELLA: The Great Observatory Hubble dazzles with breathtaking images of the universe and its ability to see galaxies born nearly at the dawn of time.

UNIDENTIFIED MALE: Hubble has arrived on board Atlantis, with the arm.

ZARRELLA: Hubble was launched, repaired and serviced from the Shuttle. Every major building block of the football field-long Space Station was carried up and assembled from Shuttle.

Before becoming NASA's head man, Charlie Bolden was an astronaut. He flew four Shuttle flights, including the Hubble Launch.

CHARLIE BOLDEN, NASA ADMINISTRATOR: I defy anybody, and I will argue with my Apollo comrades, the accomplishments, the achievements, the record of performance, the spin offs, the capabilities that have been developed. What we did in Shuttle over 30 years dwarfed what was done in the Apollo era.

UNIDENTIFIED MALE: We can build space crafts. We can build hardware. We can build boosters. But there's no goal. There's no mission.

We are wandering in the desert in space today, period.

ZARRELLA: So why now? Why call it quits now?

From the time of its inception 40 years ago until the shuttles are retired, the program will have cost the American taxpayers just shy of $115 billion. That's less than $4 billion a year, a drop, if that, in the federal budget. Still, the problem is money.

NORM AUGUSTINE, PRESIDENTIAL COMMITTEE CHAIRMAN: There's just not enough money in NASA to continue the existing programs and start a new program at the same time.

ZARRELLA (on camera): Was it time?

BOLDEN: Yes, it was time. It has been time for some time to phase out of shuttle and go back to exploration.

ZARRELLA (voice-over): Whether you hated it or hailed it, whether you felt it a waste or worth it, the shuttle was an iconic flying machine that symbolized America's inspiration and ingenuity.

UNIDENTIFIED MALE: Roger roll. (END VIDEOTAPE)

HOLMES: Good morning to you all. We're just crossing the top of the hour on this CNN SUNDAY MORNING. I'm T.J. Holmes. Thanks for being here.

Another state OKs same-sex unions. A milestone, yes. But same- sex couples still aren't happy because this new law still falls short of marriage.

Also, we've been stuck on 50 for a while now. It's time for a 51st state. A new proposal to create a north and a south California. We'll be telling you all about that.

It is 7:00 a.m. here in Atlanta, Georgia. It is 6:00 a.m. in Memphis. Wherever you maybe -- we are glad you are right here.

But let's start right now with someone we're expecting in just a couple of hours, the closing arguments in the Florida murder trial for Casey Anthony. Court is set to start at 9:00 a.m. Eastern Time. Yes, on Sunday, court is in session.

Casey Anthony is accused of murdering her 2-year-old daughter Caylee. And yesterday, there was a vigil for Caylee near the spot where her body was found.

After today's closing arguments, the case the is expected to be handed over to the jury.

Here's a quick look at how we got to this point. This all started in late May with a jury of seven men -- excuse me, seven women and five men. Casey Anthony facing seven charges, including capital murder. That means she could face the death penalty if found guilty.

The defense and prosecution both wrapped up their cases last week. Casey Anthony did not testify in her own defense.

More on this throughout the morning.

Also, a jailhouse phone call is raising more questions about the accuser in the Dominique Strauss-Kahn sexual assault case. The former chief of the International Monetary Fund was released from house arrest on Friday. Here he is heading out from his Manhattan apartment. This was yesterday. Strauss-Kahn is accused of sexually assaulting a hotel maid.

Last week, prosecutors said the accuser's story raised credibility questions.

CNN national correspondent Susan Candiotti has more now on that jailhouse phone call supposedly from the accuser to her boyfriend.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: As Dominique Strauss-Kahn waits to hear whether the district attorney will pursue sex assault charges him or drop the case altogether, there is new detail about credibility issues involving DSK's accuser.

UNIDENTIFIED MALE: And for Mr. Strauss-Kahn's released on his own recognizance.

CANDIOTTI (voice-over): A bombshell discovery came only one day before prosecutors told the defense team about the maid's credibility issues. A source with knowledge of the investigation tells CNN the D.A.'s team got a translation of a jailhouse phone call recorded in Arizona. As first reported in "The New York Times," a source now tells CNN that the call in a dialect of the maid's native Guinea was made between the maid and a boyfriend the day after the alleged sex attack.

The source tells CNN the made said something like, "She says she's fine and this person is rich and there's money to be made."

Investigators also discovered several bank accounts in the maid's name in different states. Accounts, the source says, she did not close to investigators on her own. Quote, "She was getting deposits of several thousand dollars at a time," the source tells CNN, "from people she knew, potentially involved in drug dealing."

(on camera): Strauss-Kahn's attorneys insist is he not a rapist and they want the case dismissed.

Susan Candiotti, CNN, New York.

(END VIDEOTAPE)

HOLMES: Anti-monarchy protests are expected in Quebec City today as William and Kate, the duke and duchess of Cambridge, arrived to tour that city.

(VIDEO CLIP PLAYS)

HOLMES: This was the scene in Montreal yesterday. A small crowd protested their arrival. It's the royal's first trip outside U.K. as a married couple. While in Montreal, the couple took a cooking class, of all things. They also spent last night aboard a Canadian naval ship that the British are now calling the "love boat." The royal couple scheduled to make their way to California on Friday.

(VIDEO CLIP PLAYS)

HOLMES: This was the scene at the Georgia state capital in Atlanta yesterday. Thousands of people there are protesting the state's new anti-immigration law. Most of that law went into effect last week.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: If they deported our parents, then who are we going to have to take care of us? Like, we can't take care of ourselves.

UNIDENTIFIED MALE: It is the first time I feel like I've been targeted because of how I look. It's being very uncomfortable. And sometimes, I don't feel secure.

(END VIDEO CLIP)

HOLMES: A federal judge stopped some of the more controversial provisions of the law from going into effect, including the one allowing police to question suspects about their immigration status. Georgia's governor is vowing to fight to get those provisions back into law.

Rhode Island has now legalized same-sex civil unions. Governor Lincoln Chafee signed the bill into law yesterday. It will give same- sex couples a bunch of new state tax breaks, health care benefits and other legal perks. But some say, still, this law doesn't go far enough.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We feel that civil unions create a second- class citizenry for thousands of gay and lesbian couples in committed, loving relationships.

(END VIDEO CLIP)

HOLMES: Now, the bill sailed through the Senate last week despite some very strong opposition.

Meanwhile, in California, a local lawmaker thinks it would be a good idea for the state to just split in two, to create a north California and a south California, which would be the 51st state.

Riverside County supervisor, his name is Jeff Stone. He is from southern California. He wants about a dozen other counties to join him in forming that new state.

Look at this map here. You get an idea of how this would go.

He wants southern California to be the new state, to south California, but he doesn't want Los Angeles, which, of course, is in southern part of the state, to be a part of south California.

Stone says the state legislature is out of control. He thinks keeping their tax dollars in southern California is a good idea.

(BEGIN VIDEO CLIP)

JEFF STONE, RIVERSIDE COUNTY SUPERVISOR: Our state legislature that's supposed to be making laws and being respected imposes laws that aren't even lawful. So, you know, I think our state is California gone wild.

BRYANT MCDONALD, REDLANDS CALIFORNIA RESIDENT: I think the spending, the government we have in Sacramento doesn't properly represent the interests in the people of southern California, certainly in their spending habits. Whether or not it's ever going to happen -- probably not.

(END VIDEO CLIP)

HOLMES: Well, they are just discussing this possibility right now. It's actually been proposed before, believe it or not. In the 1970s, there was talk about splitting California in half, east and west. And in 1992, one politician actually wanted the state split three ways.

Well, time for us now to say good morning -- Reynolds, you got it together over there?

REYNOLDS WOLF, AMS METEOROLOGIST: Yes, I've given our poor camera operator a rough time. You know, they're trying to adjust the camera and I'm getting lower and higher. It's just fun and games.

Hey, no funs and games to (INAUDIBLE). People take them very serious through the holidays. I'm going to tell whether today, you're to be dodging rain drops while flipping these burgers. In that Atlanta, a very slight chance of rain. But along parts f the Eastern Seaboard, the rain is going to be coming down like you wouldn't believe.

One problem is, for a good part of the country, we've got severe drought. And coming up, we're going to let you know those places and when they might finally get some relief -- T.J

HOLMES: All right. Reynolds, we will see you here shortly, buddy. Thank you so much.

Well, take a look at the screen, folks. Don't let this happen to you. Yes. Coming up, some -- yes, don't get your head blown off by a firework. OK. We know these injuries happen every year. Some of these mannequins take it to the extreme here. But, still, some safely tips for a lot of folks who are going to be firing up those fireworks this Fourth of July holiday.

(COMMERCIAL BREAK)

HOLMES: All right. Well, 11 minutes past hour here now.

A lot of people want the forecast from Reynolds. But we need to give you a heads up and warning, not the forecast. But you're going to be using those fireworks, don't let this happen to you.

OK. They get a little dramatic with it, but still they're trying to make a point here.

WOLF: Hold on for a second. OK? Is there a way you can go back to that beautiful fruit that we saw?

HOLMES: Why do you want to go back to that?

WOLF: I'll tell you why -- because I know where they're coming from. I know the objective. What it makes me think is, I know fireworks are dangerous, but more importantly, it makes me think if I eat a watermelon, my face might explode.

HOLMES: Is that what you think of?

WOLF: Explosively delicious watermelon. We all love -- here it goes. Here it comes. Here it goes. Gosh!

And, you know, if your face explodes while you're eating a watermelon on Fourth of July, that ruins the holiday for you, I mean, completely. I mean, it really does. It's a horrible situation. Who in the world wants to face the rest of our nation's independence with --

HOLMES: I don't think that's what the Consumer Products Safety Commission was going for.

WOLF: Unintended consequences. A harmless piece of produce and they just obliterated the whole thing.

HOLMES: They're trying to make the point, that yes, a lot of thousand of people actually are injured every single year with fireworks. Some places have banned fireworks.

But a lot of you who are going to be using them, keep this in mind. Keep a bucket of water handy. Think about that. That's kind of common sense. That could be helpful.

And never shoot off fireworks in metal or glass containers. Douse spent fireworks with water before you throw them in the trash and make sure the fireworks are legal in your area. That's kind of important as well.

WOLF: Also, a little bit of public safety from Reynolds Wolf, is before you eat your watermelon, make sure you douse with nice, cold water to prevent it from exploding.

(CROSSTALK)

WOLF: Hey, you can never get away from watermelon.

Hey, we were talking earlier about the great deal of rainfall that we've had through the season. We've been talking about floods all over the country. Now, we're going to show you just the opposite, places we've had extreme drought. Unfortunately, there's quite a bit.

You're going to see. This is June 28th, this from the Climate Prediction Center. Does it matter? It still holds solid. You can see every places that are shaded like reddish or brown color, that is where we have extreme drought, exceptional drought. It includes much of Texas. Look at this also in parts of New Mexico and Arizona.

You know, what do we have in common with this? These are all places we've been dealing with some horrible fire conditions. And now, we really could use some rainfall. That tide maybe turning a bit in parts of Arizona and in New Mexico, because the monsoon season is going to pick up. But even yesterday, yesterday in parts of the desert southwest, it's scorching hot.

We're going to show the highs we had yesterday, what we can expect for today, in places like Phoenix. Let's talk more about those temperatures, 86 in Minneapolis, certainly warm there; 82 in Chicago, some showers possible; 80 in New York; 92 in Washington; 102 in Dallas; and 97 in El Paso.

For our friends in Phoenix, take a look at the temperatures that we can expect there for today. Your highs are going to be just off the charts, crazy, going up to 110 degrees in Phoenix, 84 in Flagstaff. The reason why? Higher elevations.

We get up in the higher elevation. You got colder air aloft. And with that -- cooler temperatures, kind of like that.

One hundred nine in Las Vegas, along the Strip; 106 in Fresno, 77 in San Diego, 95 in Las Cruces, and 90 up in Santa Fe.

Now, in terms of rainfall, what you're going to see it along parts of the Eastern Seaboard. Keep that in mind.

Also, there's going to be the chance as we make our way into the Fourth of July forecast, storms in across the Northern Plains -- maybe even a little bit of sky country early. Very warm for you in parts of the Central Plains, and, of course, humid, hot and a chance of storms along the Gulf Coast.

That's forecast. T.J., let's pitch it right back to you.

HOLMES: Reynie, appreciate you, buddy. We'll talk to you again here shortly.

And there's still no movement in the National Football League lookout. NFL owners and players remain at loggerheads. Now, some are worried game preparedness will suffer as we get near the pre-season.

More now from CNN's Joe Johns.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT (voice-over): We're nearly four months into the NFL lockout and still no deal in place as owners and players argue over how to split up over $9 billion in annual revenue.

UNIDENTIFIED FEMALE: Greed.

UNIDENTIFIED MALE: That's ridiculous.

UNIDENTIFIED MALE: Pathetic.

JOHNS: To say fans are getting testy would be putting it mildly. James Brown, a nationally known NFL sportscaster, offers his take.

JAMES BROWN, CBS SPORTS: I would like to think that prudent heads will prevail in coming up with something that effectively is a win-win situation and doesn't alienate your fan base.

When you look at folks who are dealing with day to day issues, being cut back to 80 percent and 90 percent of their workweek, and 90 percent and 80 percent of their pay and more, or others losing their jobs, home foreclosures, one has to be very sensitive to that.

JOHNS: President Obama is already on the record saying, work it out, and he did it with a little tone in his voice.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: For an industry that's making $9 billion a year in revenue, they can figure out how to divide it up in a sensible way, and be true to their fans who are the ones who obviously allow for all the money that they're making. So, my expectation and hope is, is that they will resolve it without me intervening because it turns out I've got a lot of other stuff to do.

JOHNS: Owners say the economic model has changed and that there's a need to restructure. But with the average career span of a player at about six years, players are reluctant.

Fans we talk to tend to side with the players, but they also say, get a deal done already.

UNIDENTIFIED MALE: It's a business, so they can come to a win- win situation. I don't think it has to be a win-lose. I really don't.

UNIDENTIFIED FEMALE: I think actually both sides should just end it and get back to what they do.

JOHNS: As for the product on the field --

BROWN: I think absolutely the product will suffer if, in fact, training camps are delayed in a very significant fashion. And certainly one of the biggest concerns are injuries.

JOHNS (on camera): If a deal isn't reached soon, training camps, preseason games and the regular season would be in jeopardy and stadiums like this one would go empty, meaning less revenue, which is something nobody wants to see happen.

Joe Johns, CNN, Landover, Maryland.

(END VIDEOTAPE)

HOLMES: All right. You want to take a look at something here. This is what's being called a "love hotel." It offers hourly rates to couples and the discretion and convenience they offer is paying off big time.

We'll take you on tour, next.

(COMMERCIAL BREAK)

HOLMES: All right. Twenty-one minutes past the hour, joined by Nadia Bilchik for our "Morning Passport."

Good morning to you.

Nadia assures me this is an economic story, but it has to do with love hotels that offer hourly rates. Help me understand this. NADIA BILCHIK, CNN EDITORIAL PRODUCER: You know, let's face it. Worldwide recession, what is impacted? The tourist industry.

HOLMES: Tourist, hotels.

BILCHIK: What is impacted? Hotels.

But here's a sector of the hotel industry that is absolutely booming. So, you call it love hotels, otherwise known as hotels that rent themselves out by the hour.

So, let's first go to Brussels in Belgium, which is the so-called capital of the European Union. And here we have the Hotel Treviso. Now, who frequent the Hotel Treviso are usually bureaucrats. This is a very trendy area of Brussels. They offer room service and discretion.

HOLMES: And discretion.

BILCHIK: And the owner of the hotel says her busiest times are lunch and, of course, around 5:00 -- between 5:00 and 7:00 in the evening.

HOLMES: OK. So, they are catering to locals, people taking their lunch breaks.

Now, are they catering to people, you know, boyfriend/girlfriend, husband/wife? Are they catering to people who need that discretion?

BILCHIK: It's a "don't ask, don't tell" policy.

HOLMES: Aha! OK.

BILCHIK: OK. And then we go to New York and the Liberty Hotel in New York. This is one of the few hotels in Manhattan that still offers hourly rates.

HOLMES: OK.

BILCHIK: They say this is your rendezvous for romance.

HOLMES: Now, this is not as nice as that first one you showed, is it?

BILCHIK: Well, again, it's Manhattan. So, think about Manhattan. Think about how many people live in very tight quarters. So, maybe going to the hotel is quite necessary because they often living with friends and the owner of the hotel, Mr. Boise (ph), says he's made it as romantic as possible.

And, in fact, on the Fourth of the July, from the ceiling of the Liberty Hotel, you can see the fireworks. Rates for about two hours are $60 and for three years, around $70.

HOLMES: Oh, wow.

BILCHIK: An extra $15 if you want an interlude room. HOLMES: OK. I'm sorry. I asked you beforehand. What are we talking about here? The interlude room?

BILCHIK: Yes, you get a world polo jacuzzi for two. You get special moonlighting. And you get mirrors on the ceiling for your extra $15.

HOLMES: OK. Do they -- how is the cleaning staff for these places?

BILCHIK: Oh, the cleaning staff is immaculate. And I do want to tell you this, that Mr. Boise says because of the high turnover, they don't take reservations.

HOLMES: So, it's a walk-in, walk-out hotel.

BILCHIK: This is one of the few hotels that are still doing this.

HOLMES: Now, you spoke of Brussels and New York. But are these in several places, major cities around the world?

BILCHIK: You can read about love hotels all over the world. And I take you now to Japan.

HOLMES: OK.

BILCHIK: So, we know post-earthquake Japan -- well, this is a booming industry. It's, in fact, a $40 billion a year industry in Japan. I'm going to take you to the Isawa (ph) in Japan, to the Bonita Hotel.

And this hotel has a 257 percent occupancy rate. Now, think about Japan.

HOLMES: I'm thinking this one out.

BILCHIK: So, think about Japan. Again, very high density, lots of people living together, often a mother will live with her children.

HOLMES: You need some privacy.

BILCHIK: Exactly, you need some privacy. So, people are going to these hotels to have some romantic time.

HOLMES: Is there a minimum stay?

BILCHIK: Well, I suppose it would be an hour.

HOLMES: OK.

BILCHIK: But usually two.

HOLMES: OK. Some might only need half hour, 15 minutes or so, right?

BILCHIK: We're promoting romance on this Fourth of July weekend.

HOLMES: Nadia Bilchik -- oh, I love learning something from you during these "Morning Passports." All right. Nadia, thank you so much.

We're 24 minutes past the hour.

Coming up, do you know how to handle yourself on an airplane? Do you know whether or not you should wake up the person next to you if now need to the go to the restroom? Do you know what you need to say to the mother at that crying child? Airline etiquette, are you a rude passenger?

Stay with us.

(COMMERCIAL BREAK)

HOLMES: Live picture of the Marine Corps Memorial in Washington, D.C. A lot of people will be certainly descending on the city this weekend to celebrate the birthday of the nation.

Well, a lot of people might be flying to Washington, D.C., flying around for this holiday, no matter how short your flight maybe, listening to this might be tough to take.

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HOLMES: All right. Yes, babies cry and they cry on planes. What do you supposed to? Is there anything you actually can do? Can you say anything to the parent without starting a fight?

I asked an airplane etiquette expert, Nicholas Derenzo about that and some other things you should or should not be doing on a plane.

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NICHOLAS DERENZO, AIRPLANE ETIQUETTE EXPERT (via telephone): I think the good thing to do as a parent of crying baby is to be a really pro-active ahead of time before your kid has a chance to cry and disrupt everyone, kind of make friends with people around you and apologize in advance for any noise situation that might

HOLMES: OK. So, Nicholas, I had this right. If you're the passenger, and you hear a baby crying, there's essentially nothing you can do. But the etiquette part comes on the onus is on the parents?

DERENZO: I think the etiquette part comes on -- yes. It comes on the part of the parent. If you're sitting around the baby, if you're going to be darting dirty looks to a baby, I think you should save them for yourself.

HOLMES: All right. Nicholas, let's move on to another one. People always fight over the armrest. Who gets it?

DERENZO: Yes, I think people kind of have first come, first serve mentality for armrest. Personally, you know, I think all seats are not created equal when it comes to being on the airplane. The guy in the middle seem be to in the unlucky position of sitting in the middle, so I like to extend a little bit of courtesy and always them the armrest. If you're sitting on either, you know, the one in the aisle, you're going to get at least one armrest to yourself. So, give those middle armrests to a guy or gal in the middle.

HOLMES: Defer to the folks in the middle. All right. Here's another key one. You need to use the rest room and you're sitting by the window and the person next to you is sleep. Do you climb over them? Do you wake them up? Nicholas, what do you?

DERENZO: Yes, those are two choices, climbing over or waking them up? I think a quick tap on the shoulder, a quick apology is always better having them make up mid-straddle while you're climbing over the top of them. That's never a good situation that you want to be in.

Remember in that situation also, never to pull on the headrest of the person in front of you. That's something a lot of people mistakenly do, you know? They get up, they want to get some leverage, so they reach to the headrest and --

HOLMES: That drives me crazy.

Nicholas, last thing, I have to let you go. But we teased this. So, we got to let you deliver here. What if the person next to you is chatty, they want to talk? How do you give them the clue that, hey, I do not want to talk to you right now?

DERENZO: Yes. Give them some nonverbal signals, you know, like put your one of ear buds back in so that you really want to be he'd rather be watching CNN on in-flight and you'd rather be listening some music. Pick your book up or your magazine opened up, it shows, you know, you'd rather be doing anything but conversation with a chatty neighbor.

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HOLMES: I'm with you at the top of the hour.

The good doctor starts right now.