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NFL Owners, Players Reach an Agreement; Amanda Knox Case Update; Debt Ceiling Talks; Oslo Terror Suspect Pleads Not Guilty

Aired July 25, 2011 - 14:00   ET

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


RANDI KAYE, CNN ANCHOR: A new hour starts with new hope for young American college student imprisoned for murder in Italy. Amanda Knox, known for her role in the sordid and grisly attack on her British roommate in 2007 and for the sensational trial that followed. She and her then boyfriend were convicted largely on the basis of crime scene evidence you see being collected here.

Knox was sentenced to 26 years.

Well, today, however, independent experts told an appeals court that some of the most crucial evidence was mishandled by police and may well have been contaminated.

CNN's Zain Verjee is following the case from London.

(BEGIN VIDEOTAPE)

ZAIN VERJEE, CNN CORRESPONDENT: Randi, this is a really critical day.

Amanda Knox and Raffaele Sollecito are appealing a conviction of murdering English student Meredith Kercher. Today is the DNA and forensics day. At question was how the police handled key evidence in the initial stages of the murder.

They are focusing on two things. One, the bra clasp of the victim. Sollecito's DNA was found on the bra clasp.

Now, what the defense is arguing that at the time the police passed it from dirty glove to dirty glove and they put it in a plastic bag and not in a paper bag. They also arguing it was found six weeks after the murder. And so, for all those reasons, the evidence could be contaminated.

The second thing at issue is the knife, the alleged murder weapon with Amanda Knox's DNA on the handle itself. And the prosecution had said that the victim's blood was on the blade. Today, the defense is arguing that the blood was so tiny that it could not be tested creditably. It was just too small to draw conclusive forensic results. And there were too few cells for them to do so.

Now, Knox's family is saying that they are upbeat. They are pretty positive about today. And they hope that she could be released with the evidence that is picked apart today -- Randi.

(END VIDEOTAPE) KAYE: Thanks, Zain.

And in just a few minutes, acclaimed defense attorney Paul Callan joins me for more on the fallout of the potentially tainted forensics. That's at 10 past the hour right here in the CNN NEWSROOM.

To New York whether it's far from clear whether the sexual assault case against Dominique Strauss-Kahn will ever go to trial. We should know more a week from today when the former head of the International Monetary Fund goes back to court.

But you'll recall his last hearing came with a bombshell admission from prosecutors that the alleged victim may not be credible. She's a hotel maid from Guinea, who like most victims of sexual assault, has not been named in the media until now.

Our sound effect is Nafissatou Diallo going public with her side of what happened in suite 2806 of New York Sofitel Hotel on the morning of May 14th. She spoke with "Newsweek" magazine and ABC news.

(BEGIN VIDEO CLIP)

NAFISSATOU DIALLO, ALLEGED VICTIM OF STRAUSS-KAHN: I was like -- stop this, stop this, stop this. But he wouldn't say nothing. He kept pushing me, pushing me, pushing me to the hallway, back to the hallway, kept pushing me.

I was so afraid. I was so scared.

UNIDENTIFIED FEMALE: When did you realize he was one of the most powerful men in the world?

DIALLO: I was watching the news. Then they say he's going to be the next president of France.

And I said oh, my God. I was crying. They said they are going to kill me. They are going to kill me. I'm going to die.

(END VIDEO CLIP)

KAYE: By way of response, Strauss-Kahn's attorneys called Diallo and I quote here, "The first accuser in history to conduct a media campaign to persuade a prosecutor to pursue charges against an innocent person from whom she wants money."

Diallo plans to sue Strauss-Kahn for damages.

Here are some other top stories that we're following for you

The battle in Washington over raising the debt ceiling is coming down to the wire. President Obama today said he's willing to cut spending by historic amounts to reach a deal before the August 2nd deadline. Mr. Obama opposes any short-term deal, insisting that the debt ceiling be raised through 2012.

At the same time Democratic and Republican leaders are set to release competing deficit reduction plans sometime today.

It looks like there will be a pro-football season after all. Moments ago, players just unanimously ratified a 10-year deal ending the lockout. The agreement was finalized by negotiators earlier today.

It opens the way for formal practice to start this week with preseason starting August 11th, regular season kicking off September 8th.

Among other things, the new deal includes a salary cap of $142.4 million per team this year.

Owners approved the agreement last week. We'll bring you a live report in about 10 minutes.

In Texas, jury selection under way in the sexual assault trial of polygamist sect leader Warren Jeffs. He's charged with two counts of sexual assault on a child, and one count from bigamy stemming from a raid on a ranch operated by his church three years ago. Jeffs is expected to go on trial to face a bigamy charge at a later time.

In Alaska, seven teenager boys taking part in the wilderness education program were attacked and mauled by a brown bear and her cub. One of the boys seen right here in this picture.

Officials say two of the boy had life threatening injuries, two more serious conditions, three others suffered minor injuries. It happened as they crossed a river.

The boys were involved in a national outdoor leadership school program. The students had reached a point where they spend several days on their own practicing wilderness skills learned earlier in that 30-day program.

Could American Amanda Knox finally get her freedom? Damming testimony from experts about DNA evidence used to convict Knox for her roommate murder. The latest on the hearing and what this could mean for Amanda Knox, coming up.

(COMMERCIAL BREAK)

KAYE: I want to take you back to Italy to the case of convicted murder American Amanda Knox. Today's hearing could prove pivotal as experts examine key pieces of evidence used to convict Knox for the murder of her roommate Meredith Kercher. A 30 millimeter kitchen knife and Kercher's bloody bra clasp, two court-appointed experts testified that the police botched their investigation, saying the forensic team failed to follow protocol that made it easy for the evidence to be contaminated.

The experts also said they found no DNA evidence on the knife that was the supposed murder weapon.

I want to bring in Paul Callan who is a criminal defense attorney and a former homicide prosecutor.

Paul, great to have you on the show to discuss this on the big day for Amanda Knox in court.

How significant do you think this was? Now to be told there was no DNA on the knife and no DNA on the victim's bra?

PAUL CALLAN, CRIMINAL DEFENSE ATTORNEY: This is a huge, important day for Amanda Knox. I mean, the evidence -- the knife evidence especially, that was the one piece of evidence that physically linked her to the crime. It's called the double DNA knife. Her DNA was found on the handle. But Kercher, the victim's DNA, was supposedly on the blade.

Now, you would expect Amanda Knox's DNA to be on the handle, because the knife was from her boyfriend's apartment. She used to cook there. And the police just went and selected that, somewhat arbitrarily, as the murder weapon.

And now, DNA experts are saying that is not Kercher's blood. In fact, it might just be vegetable material. So, that's a key link to the homicide blown out of the case on a very important day for Amanda Knox.

KAYE: Oh, yes. So, is this her ticket to freedom or does something else need to happen for her to get out of jail?

CALLAN: Well, the Italian system is very complicated and very different from the American system. So, that's a harder question to answer than it might be in the United States. You know, in the U.S., a jury hears the case. And then when it goes up on appeal, the judges just decide whether the law was applied properly or not.

In Italy, you kind of start the trial over again. Each appellate court can call witnesses, and hire their own experts. And the case really gets retried.

Now, these experts, these DNA experts, were independently appointed by the court. And they are the ones now who have discredited the DNA evidence.

But the big thing she's left with, it's the dangerous thing for Amanda Knox, is what the Italians call her confession --

KAYE: Right.

CALLAN: -- although many people say it's not like a confession. It's more like a statement, because she never really admitted to the murder in the so-called confession. She really said after many, many hours of interrogation by multiple teams of Italian policeman that she was confused that night. And that if what police were telling her was true, that maybe she was there.

It was all very vague, almost like her recreating a hallucination. You know, she had been smoking marijuana earlier in the evening.

KAYE: So, is that enough or what happens to that statement?

CALLAN: Well, I don't know. You know, I think even if you were to accept it all as being accurate, the one thing that's interesting is, in that confession, she has a guy named Lamumba who ran a local bar as doing the homicide. Police admitted he had nothing whatever to do with the homicide. In fact, somebody entirely different named Guede committed the killing.

How reliable is a confession when you put the wrong murderer in the confession? And even the police agree that Lamumba had nothing to do with the crime.

So, I think Italian police are really not left with much after the knife is thrown out of evidence. All of the rest of the evidence comes from shaky witnesses.

KAYE: Right. What about the prosecution, though? Is there anything the prosecution can do at this point, after they have lost this key bit of evidence?

CALLAN: Well, I don't think you're going to see them giving up easily. They may try to cross-examine the DNA experts that were appointed by the court. They may bring on their own DNA experts and try to counter the evidence that was brought out and is being brought out in court today apparently in Italy.

So, I wouldn't look to see prosecutors giving up easily. This is a big case in Italy and it's going to be a huge embarrassment for Italian police if they have put an innocent American student in prison.

KAYE: What about her appearance and her behavior in court as this case was being tried? Was the jury with her or against her?

CALLAN: Most reporters have said that her activities in court hurt her tremendously. There were reports in the Italian newspaper that she was winking and smiling with her boyfriend Sollecito, who was a co-defendant, and that she was putting her head on the table during the course of the prosecution.

But Amanda Knox supporters say quite to the contrary, that's an unfair characterization. That what really happened was the tabloid press was just reporting isolated incidents that happened in court. I know from trying murder cases myself, long cases in court, a lot of times, you know, a client will act inappropriately, maybe wince or smile at the wrong point in time. Nobody notices it because the press isn't covering most cases.

But when the tabloids are looking for a reason to embarrass you and humiliate you, Amanda Knox supporters say that they just focused on these few things and made her look like somebody she is not.

So, we'll see.

KAYE: In our last 20 seconds, Paul, should Amanda Knox breathe easier today, sleep easier tonight?

CALLAN: Well, you know, I think she's having a very, very good day. But, on the other hand, the Italian system is a difficult system. The court won't decide until September. And who knows? There might be another appeal in the works.

So, I don't think you're going to see her walking out of the prison doors so quickly, but it's a very good day for Amanda Knox.

KAYE: Paul Callan, appreciate your expertise. Thank you so much.

CALLAN: Nice being with you.

KAYE: You, too.

The NFL lockout has ended. We will hear from our own David Mattingly.

And Baltimore Ravens tackle Michael Oher on what comes next.

(COMMERCIAL BREAK)

KAYE: It looks like we're going to have a professional football season after all. The NFL Players Association ratified a new labor deal just a few minutes ago.

CNN's David Mattingly is joining me.

So, what does this mean?

DAVID MATTINGLY, CNN CORRESPONDENT: It means we're going to get some football. If there was any doubt before, it should be going away now. We are going to have a season. The teams are going to be uninterrupted in playing out the season.

We do know because of the delay in the negotiations, they had to cancel the first preseason of the year, the Hall of Fame game.

KAYE: Right.

MATTINGLY: Well, it looks like everything now is going to stay on schedule. In fact, if things keep going the way they are going today, then we're going to see players starting to report and we're going to see teams starting to go back into their training camps by the end of the week.

KAYE: So, how did the negotiations go? I mean, how would you describe them? I know you followed them quite a bit last week. What was the holdup?

MATTINGLY: Well, the holdup was the sheer volume of things that they have been trying to go through because this agreement lasts for 10 years, unheard of in professional sports, in major professional sports. They were dealing with things like collective bargaining, free agency, rookie salaries, and health issues, like how obvious can a player get hit during practice. So, they were trying to limit the amount of contact they were having between games.

Very broad in the way that they were going through this. And we're probably going to have a press conference shortly.

KAYE: Yes. Let's go to Washington, D.C., actually. There's a press conference under way right now. Let's listen in.

UNIDENTIFIED MALE: We'll come out, say a few words together, take some questions and then they will be on their way and go back to the business of signing a settlement agreement and beginning the process of getting back to playing football.

KAYE: All right. As we wait for that, David, to get under way, what do you think about the support of the fans? Do you think they still have the support and will come back?

MATTINGLY: Well, this happened in the off-season. The fan didn't miss any games.

KAYE: But it was such a roller coaster.

MATTINGLY: It was. It was. But we've through this before and we've watched teams not take the field during the regular season. We've seen playoffs disrupted. We've seen all sorts of things.

This happened in the offseason. The one casualty was that one game, the first preseason game. Right now, fans were pressuring both sides to get the agreement done.

In fact, when that lockout first happened in March, I was up in Green Bay, Wisconsin, talking to fans there about this. They were saying, look, the way we look at it, it's millionaires against billionaires. Come on, these are tough economic times. You can do this.

KAYE: All right. Let's listen in one more time here in Washington, D.C.

DEMAURICE SMITH, EXECUTIVE DIRECTOR, NFL PLAYERS ASSN.: With several of the owners who have joined us today, Mr. Richardson, chairman of the CEC, Mr. Kraft, Mr. Mara, who have come by today. We're happy we've got an agreement we have reached.

I'll turn it over to Roger to say a few words and we'll finish it up.

ROGER GOODELL, NFL COMMISSIONER: Well, it's been a long time coming. Football is back. That's the great news for everybody.

I want to thank all the players for their leadership and for securing the long-term future of the game. Having a 10-year agreement is extraordinarily great for our game but most importantly our fans.

Everybody worked hard. Everybody had a passion. And everybody believes in this game of football, and what we can do to make our game better. I think this agreement is going to make our game better.

So, we're grateful for all the work that both parties did to make sure we came to this day today and make sure for the fans we can sit here and say football is back. So let me have our chairman, Mr. Richardson, to say a few words.

JERRY RICHARDSON, OWNER, CAROLINA PANTHERS: Thank you. This is a long time coming. I would like to say what a pleasure it has been for us to work with the players in this negotiation.

As a former player myself, the relationship and conversations we've developed, I think, will serve us well for a long time. And we're delighted we have an agreement that's going to serve the NFL, our players, our teams and our fans for many years to come.

ROBERT KRAFT, OWNER, NEW ENGLAND PATRIOTS: First of all, I'd like on behalf of both sides to apologize to the fans for the past five, six months, we've been talking about the business of football and not what goes on on the field and building the teams in each market. But the end result we have an agreement that will allow this sport to flourish over the next decade. We've done that in a way that's unique among major sports that every team in our league, all 32, will be competitive. We've improved player safety and remembered the players who have played in the past.

You know, I want to give a special compliment to Commissioner Goodell and D. Smith, because the commissioner has to deal with 32 tough and demanding owners. And he's been able to keep that balance. But DeMaurice Smith has come in and he's managing 1,900 players, a bunch of different professionals.

It's a new CBA with tricky language and he was able to keep all those things going and come up with an agreement that he and Roger did together with their two teams.

And lastly, what kept me at the table the last four and a half months was seeing the players who represented the player representatives, who represented the league's players -- you know, they just didn't look at the short-term interests of their own playing careers, but they looked long-term, especially Jeff Saturday and Dominique Foxworth. I was so impressed with them that they acted as principles at the table looking out for what was good for the game.

So, I believe you're going to see a very great NFL over the next decade. I hope we gave a little lesson to the people in Washington because the debt crisis is a lot easier to fix than this deal was. Thank you.

JOHN MARA, OWNER, NEW YORK GIANTS: Thanks, we're obviously pleased to be standing here today. It's been a long and pretty difficult negotiation. I think the end of the day, neither side got everything they wanted. But I think what we did achieve was a fair deal that will stand the test of time and be in the best interest of our league, our players, our clubs and our fans.

I have a lot of respect for players we've been negotiating with. They were tough negotiators. They represented their fellow players very well as did D. Smith. At the end of the day we have something here that's going to serve the best interest of the National Football League for many years to come.

SMITH: Probably Robert got us in trouble with the White House, I'm sure. Kevin Mawae, if you could come forward and say a few words.

KEVIN MAWAE, PRES., NFL PLAYERS ASSOCIATION: On behalf of the players of the National Football League, I just want to say it's a great day. We stand on the eve of the day when football gets back to business and our players couldn't be more excited than going back and doing the thing they love the most. We always said throughout this process that we would do a deal when it's right and when it's the right deal and our players did that.

We stuck it out to the end, we fought our ground, we worked, you know with the owners to get a deal we feel was fair for everybody. You know, we're excited about today. We're thankful for D and for Roger and for that leadership of our groups.

I'm thankful for the players that stood together. We stood strong in a time of uncertainty.

More importantly I want to thank the fans, roller coaster rides, January, two years out, until today. You guys have stuck with us. We're here to tell you football is back. It's back for the long-term and we're excited about the season starting.

We couldn't have done this without a strong executive committee and our board of players. I've got to give a tip of the hat to Jeff Saturday and Dominique Foxworthy who says June 28, and have not missed a meeting. And a lot of credit goes to those guys for pounding it out and doing the dirty work for us.

And with that I'm going to turn it over to Jeff and let him say a few words.

JEFF SATURDYA, INDIANAPOLIS COLTS CENTER/NFL PLAYERS: Thanks. Just to echo what they have said. I think the part that was most impressive to me is hen players and owners sat across the table from each other and dialogue, things began to happen. And to Kevin's point and to Commissioner Goodell's point --

KAYE: There is a deal. Football is back, in the words of NFL Commissioner Roger Goodell.

David Mattingly is here with me in the studio. And just very quickly, David, you call this a victory lap today?

MATTINGLY: It was a victory lap and they should be proud about this. They should be. This is a 10-year deal. They won't have to do this until 2012 '21. None of the players will be on the field at that time.

This is an agreement that's affecting everybody on the field today and everybody on the field five to 10 years from now.

KAYE: All right. David Mattingly, glad you're with us at this news broke on our air, during his show. Thank you.

We'll take a break here and we'll be right back.

(COMMERCIAL BREAK)

KAYE: The comparisons between Greece and the United States are striking. Moody's downgraded Greece's credit rating put it one step above default. The U.S. could default on its loans if Congress can't reach a debt ceiling deal by August 2nd.

In a special Monday edition of Q&A, Ali Velshi and Richard Quest answer the question, is the United States or Europe experiencing the most dangerous debt crisis?

(BEGIN VIDEOTAPE)

RICHARD QUEST, CNN INTERNATIONAL ANCHOR: "QUEST MEANS BUSINESS" and so does my friend Ali. We are together in the CNN NEWSROOM and around the world.

Good day, Ali.

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Hello, Richard. We're here to talk business travel, innovation in a special Monday's edition of "Q&A." Nothing is off limit for us and today, we're talking about limits, sort of, debt default and collapses.

QUEST: And it seems there may be no limits. The United States is getting close to the deadline for defaulting on its bills, if a debt ceiling isn't done. In Europe there's concern over strength of the currency, the euro. Charles Mader (ph) sent in today's question on Facebook. The question is-which is a brilliant question, Charles- which is worse, the default or collapse of euro?

Ali, you've got 60 seconds.

VELSHI: All right, Richard, if I must choose I'd say the whole European debt crisis is more serious than the U.S. debt situation. Because while the U.S. debate over increasing the debt ceiling is largely political European problems are real, economic and fiscal problems.

While it might seem unwise to some, the United States does have the ability to borrow more money. If the U.S. misses the August 2nd deadline and defaults, and interest rates go up, and stock markets tank, you will see American politicians literally tripping over themselves in a rush to fix the problem.

In doing so the U.S. may throw away triple A credit rating, Richard, but it's a lesson learned. Europe's problems, on the other hand, are structural. Countries like Greece and Portugal and Ireland they owe more money than they can pay. They can't just issue bonds like the U.S. can to raise more money.

So the euro's collapse could trigger another Lehman Brothers-style global credit freeze. That, Richard, threatens the solvency of the entire global financial system. As German Chancellor Angela Merkel

(BUZZER SOUNDS)

VELSHI: -says if it fails Europe fails. That's a tough one, Richard.

QUEST: Interesting philosophy, Ali, with which I do not agree, as you might expect.

This is what we're really talking about. Which is mightier and can cause more trouble? The little euro, or the great dollar? In my own view, probably because the dollar remains the world's reserve currency. The dollar is still the currency upon which so much depends elsewhere, whether it's in oil trading, commodities, or gold.

The dollar still is the backbone of the credit market. So anything that happens to the dollar has to be of crucial importance. To be sure the euro is a weakling. But here we have two great institutions, the United States, now, and the Eurozone. They are the largest in the world, one and two, depending on the definition.

Frankly, Ali, we're both playing with fire. It doesn't matter which goes first. Ultimately it's the devil and the deep blue sea where the risks are greatest.

(BUZZER SOUNDS)

VELSHI: I'll agree with you on that. Good point. All right, Richard. Let's see how much we know about this stuff really. Time to bring in the Voice.

Hello, Voice.

UNIDENTIFIED MALE: Hello. Welcome, gentlemen.

Since you're so well versed on the world economy this should be a snap. We start with debts and deficits. According to the World Bank, which of these countries has the lowest deficit per capita? A., United States; B., Canada; C., Sweden; Or D., Luxembourg.

Ali?

VELSHI: Easy, easy. Come on, give me something harder than that. Luxembourg.

(BUZZER SOUNDS)

UNIDENTIFIED MALE: Incorrect.

Going to give it a go, Richard?

QUEST: Yes, it is Sweden.

(BUZZER SOUNDS)

UNIDENTIFIED MALE: Wrong yet again. The correct answer is-

QUEST: Canada?

UNIDENTIFIED MALE: -Canada. It's the lowest on the list, per capita.

VELSHI: Oh, man! Oh, man!

UNIDENTIFIED MALE: Their per capita deficit is just over 24,000 per person.

QUEST: You are so toast when you go home.

UNIDENTIFIED MALE: That's embarrassing.

VELSHI: I'm not going home after that. All right.

UNIDENTIFIED MALE: Let's go to the gold standard. Between 1870 and 1900, every major country, except one got on the board. Which was the lone holdouts? A., China; B., Russia; C., Japan; or D., Germany?

Richard?

QUEST: Russia.

(BUZZER SOUNDS)

UNIDENTIFIED MALE: Incorrect. Ali?

VELSHI: Japan.

(BUZZER SOUNDS)

UNIDENTIFIED MALE: Incorrect yet again. It's a rough start, guys. The correct answer is China. China nearly bought 600 tons of gold last year, some by the government, and some by private investors.

QUEST: I nearly said China.

UNIDENTIFIED MALE: Let's see if you guys can redeem yourselves on question three, shall we?

VELSHI: OK.

UNIDENTIFIED MALE: According to XE Online Currency Converter, there is no currency that exchanges at an even rate with the euro, but there are two that trade evenly with the U.S. dollar. Which one of these is it? Is it A., Australian dollars; B., Bermuda dollars; C., Vietnamese Dong?; or C., Singapore dollars?

Ali?

VELSHI: Bermuda dollar.

UNIDENTIFIED MALE: That is correct. Bermuda and the Bahamas are the two that trade evenly with the U.S. dollar. Congratulations, Ali, you're today's winner.

VELSHI: Congratulations. One answer right in two or three weeks and I can't go back to Canada because I've shamed myself too much. Hope you're happy, Richard.

QUEST: Oh, delighted. That will do it for this addition on the Monday edition of "Q&A". Remember we are here on a Thursday on QUEST MEANS BUSINESS at 1800. VELSHI: And in the CNN NEWSROOM 2:00 p.m. Eastern, keep the topics coming. That was a great. On our blogs, CNN.com/QMB and CNN.com/Ali. Tell us each week what you want us to talk about. See you Thursday, Richard.

QUEST: See you, Ali.

(COMMERCIAL BREAK)

RANDI KAYE, CNN ANCHOR, CNN NEWSROOM: A double terror attack that's shaken Norway to its very core. At least 76 people killed, many of them young people having fun at a youth camp. The suspect appeared in court today. Jim Boulden joins us from Oslo.

Jim, what took place in court?

JIM BOULDEN, CNN INTERNATIONAL CORRESPONDENT: Randi, another extraordinary today.

This the first time Anders Breivik has come to court, though journalists and cameras were not allowed in. The judge decided to hold him for further eight weeks, four weeks in isolation because she said, the judge said she did not want the suspect to have any contact with anybody from the outside world. He'll appear again in eight weeks' time.

There was some video of him leaving the courthouse. It was the first time Norwegians had a chance to see the suspect. As you said, 76 now confirmed dead. That number is actually lower than we thought originally. The police had the number higher than 90.

Behind me, Randi, you'll see tens of thousands of people who are marching through the streets of Oslo. They started at 6:00 o'clock Oslo time, at the city hall. Many of them carrying flowers, and as you can see they are still streaming down this way, down towards the cathedral. Where many people are laying their flowers in a sign of respect.

It was quite an emotional time when they had a minute silence holding all these flowers higher and higher. What I'm hearing time and time again throughout this weekend, and this day, Randi, is that Norwegians say despite this atrocity the country will become stronger and their democracy will stay in place despite what this man has done.

KAYE: Jim, he's actually admitted to taking part in these attacks, but he's pleaded not guilty. Can you help us understand why?

BOULDEN: Yes. He says he's justified in what he has done. And he wanted to speak in court today to explain what he did. So he admitted to doing this and his lawyer told us over the weekend that he admitted to this. But he wanted his day in court. He wanted to speak today. That's one of the main reasons the police asked the judge not to open it to the press. They did not want to give him a platform. I can tell you the vast majority of the people here would definitely agree to that. KAYE: Yes, it seems as though if he pleads not guilty and this does go to a trial, he would get more time in court, and get this matter much more attention, which may be what he wants.

BOULDEN: And the interesting thing here, the law here is that if he is sentenced to life, life in this country means 21 years. So, he could technically get out after 21 years, so a lot of people discussing how they can keep him in jail for longer. There is something called custody, a bit like the States. He would come up for parole in 21 years. It's an extraordinary difference between here and the U.S. No death penalty and nothing beyond 21 years in jail unless they can find a way to hold him indefinitely in custody, Randi.

KAYE: All right. Jim Boulden in Norway. Jim, thank you.

International aid officials painting a bleak picture in the Horn of Africa where famine is taking the lives of countless children every day. One of the hardest-hit areas is southern Somalia. Aid officials tell heartbreaking stories of mothers fleeing for neighboring Kenya leaving children on the sides of roads, too weak to care for them.

Making matters worse is the Al Qaeda linked Islamic militant group Al Shabaab that controls much of southern Somalia and reversed a pledge to allow aid agencies to operate in the famine hit areas. Officials say 10 million people may be at risk of starving.

Whether we like it or not prescription drugs can be painfully expensive. Get ready to get a deep discount. We'll explain in a couple minutes.

(COMMERCIAL BREAK)

KAYE: Your trip to the pharmacy just may get a whole lot cheaper in the coming months. In today's taking a lead we are looking at the unprecedented wave of prescription drugs with expiring patents. Seven of the world's 20 top selling prescription drugs are about to go off patent. That includes the top two popular drugs, cholesterol controller Lipitor and blood thinner Plavix, used by millions every day. In the next year or so, the door will open for cheaper generic versions that are chemically the same as the original brand name drugs.

According to a pharmaceutical research firm, more than $267 billion of annual sales are at risk from patents expiring within the next five years. But that's not all. The plummeting drug prices will continue over the next decade with a flood of generics entering the market. These are just a few.

MedCo Health Solutions which provides prescription benefits to Time- Warner lists more than 100 brand name medicines that will lose their market exclusivity.

Keep in mind, generic versions of these drugs will typically cost anywhere 20 percent to 80 percent less than the brand names. That translates into lower prescription co-payments on your insurance and even bigger savings for those who are uninsured and have to pay full price.

For weeks, you've heard the debates about the debt ceiling. Is there really a fiscal problem in the U.S., or is it just a political problem? We find out next in Stream Team.

(COMMERCIAL BREAK)

KAYE: If the debt ceiling crisis were a movie, you probably would not believe it. One day, rumors grow that we're close to a solution -- the next, someone is walking out of a meeting or changing their tune. There's even a gang -- "gang of six" that showed up for a sum couple of scenes. This back and forth is hard for anyone watching to keep up with.

So, what is the actual problem here? Are the debts dealing with a fiscal problem or does this all reflect a problem in our political system?

Joining me now from New York, Pete Dominick, host of "Stand Up with Pete Dominick" on Sirius XM; via Skype, Stephen Leeb, chairman and chief investment officer of Leeb Capital Management; and from Washington, Peter Morici, professor of international business at the University of Maryland.

Welcome to all of you. Certainly, a hot topic.

Peter, let's start with you, what is the problem here?

PETER MORICI, UNIVERSITY OF MARYLAND: Well, essentially, the Congress has set an arbitrary limit on how much the government can borrow. The United States has more than adequate resources to pay the interest on its debt. It's a small share of federal revenue. On August 2nd we will not default unless the president and secretary choose not to make the payments.

KAYE: Stephen, would you like to weigh in there? What do you think is the problem?

STEPHEN LEE, LEEB CAPITAL MANAGEMENT: Well, I think it's much more macro than that. I mean, I think the problem is -- if this were a movie, it would be a surreal movie. I mean, no one really is talking about what is the major issue.

The major issue on this country right now is a dramatic lack of growth. And that certainly makes it a fiscal problem because we don't have growth. If we had growth of 3 percent, 4 percent, 5 percent, this would not be a big issue. Everybody would be happy.

But because growth is so low, because unemployment is so high, everybody is trying to blame everyone else to stake out particular grounds.

So, basically it's a lack of recognition problem. The one word I haven't heard in any of these debates, not one of these debates have I heard the word growth. How are we going to get this country moving again? Are we going to follow Chinese and invest money in, let's say, alternative energies, incentivize corporations to do that? No word on that at all.

And until we get that message across, I fear this is going to be an ongoing dispute. We have not seen the last of it.

I do not expect us to default. I don't -- I do expect our bonds to be downgraded. I don't expect it to have a great effect. But we've got to get growth in this country.

KAYE: Pete Dominick, to you. What do you think? I mean, if this wasn't political, do you think we'd have a deal by now?

PETE DOMINICK, HOST, "STAND UP WITH PETE DOMINICK" ON SIRIUS XM: Yes, I think we could do a lot if politics weren't involved, Randi. Since the Kennedy administration, lawmakers have raised the debt ceiling 74 times. Ronald Reagan did it 18 times. The last Bush administration did it seven times.

It's kind of a routine thing to do.

But politics have changed everything here. The truth is, the real concern for Americans is, as economist Peter Morici I think agrees, is employment. I think, Peter, the real numbers are about 16 percent of people who would love to be working right now. That is the real concern.

We can disagree how jobs can be created in America but that should be the focus of lawmakers and the media -- the people that aren't working, I think we could all agree.

But politics has taken the place of al that. At this point, I think we should just let the NFL owners and players negotiate at a raise of that ceiling.

KAYE: Hey, they may get it done.

Peter, what do you say? I mean, we've watched this play out for weeks and months. What is the solution and how are we going to get there?

MORICI: Well, the adults have to come to play. I mean, Democrats won't acknowledge they ran up spending so much in the last four years. You know, if we raise every tax and fee the government collected, and no one went to the national parks less, and no one worked less, and no business left the United States, which is absurd if we raised by 50 percent. But if that could happen, we'd still be $600 billion a year short in paying for what we spend. So we have to spend dramatically less. Republicans are right about that.

But, you know, the Tea Party for its part has captured one-half of one of the two political branches of government. It only has one quarter of the policymaking apparatus of Washington. And you simply can't dictate national policy when you are one quarter of the system.

And as a consequence they have to compromise. They are not much inclined in that direction.

KAYE: Yes. MORICI: When I listen to Nancy Pelosi and Eric Cantor -- I wonder, where are the adults?

KAYE: All right. We're out of time, guys. Sorry, we're going to have to live it there. Peter, Pete, Stephen, thank you so much for weighing in. It's certainly a great discussion.

More now on the debt crisis negotiations, let's go now to Kate Bolduan from Capitol Hill.

Kate, House Speaker Boehner just presented a plan to GOP members of the House. Any breakthroughs we need to know about?

KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: Well, we actually now finally are getting the details of, if you want to call them, the dueling plans. The plan now presented by House Speaker John Boehner, as well as the plan put now forth by the top Democrat in the Senate, Harry Reid -- this following a breakdown in negotiations over the weekend between congressional leaders.

Without bogging down our viewers really with the details of how exactly these plans work, what we've learned from the plan from House Speaker John Boehner, it's very much seen like the plan he was proposing over the weekend, raising the debt ceiling but doing it in a two-part process. And according to a briefing that we received, this would be $3 trillion in spending cuts, Randi, they're raising that ceiling in a two-part process. First, right away, and that would get you through probably February or March of next year.

And then the second vote to raise the debt ceiling. This has been the sticking point. It would only -- the president would only be able to request another increase and they would only be able to vote on it if this new committee would be set up to look for deficit reduction measures, if they agreed to it and Congress enacted those measures put forth.

And that contingency, if you will, is what Democrats have opposed. As a House Republican aide put it in this briefing, if the joint committee fails, then we're going to be right back where we are today.

So, that is Speaker Boehner's plan.

On the other side of the capitol, Senator Harry Reid, he's still unveiling, I believe, his plan right now. And his plan, it comes with $2.7 trillion in deficit reduction, spending cuts, some serious spending cuts, as well as some savings in mandatory programs an savings that we will get from winding down the wars in Iraq and Afghanistan.

But the big point here is that it's just not -- his plan is not contingent on Congress coming together around these major deficit reduction measures for the president to be able to raise the debt ceiling once again.

So, we now, within a half an hour of each other, I'll tell you, Randi. We now have these two dueling plans that they seem that they're going to be working their way through both chambers of Congress -- Randi.

KAYE: And opinions about them will be working their way through the media as well, I'm sure.

BOLDUAN: Absolutely.

KAYE: All right. Kate Bolduan there on Capitol Hill -- Kate, thank you.

BOLDUAN: Thank you.

KAYE: Does your significant other snore? Coming up in my "XYZ," I'll tell you about a very unique hotel chain that you may just want to check in to.

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KAYE: Time now for my "XYZ." If you snore or sleep next to someone who does -- listen up -- the Crowne Plaza hotel chain is getting aggressive to stop snoring sounds from spreading. They've actually created Snore absorption rooms for its hotels in Europe and the Middle East. The U.S. could be next, though.

If you're shaking your head, keep in mind -- this could save relationships. According to the hotel chain, half of couples say they lose between one and five hours of sleep per night due to their spouse or partner snoring and three in 10 couples have actually come close to splitting up because of it.

And the hotel has you covered even if it's not your loved one next to you making the racket. They also ploy snore monitors. These are actual employees who patrol the halls of the quiet zones of the hotel and wake up snoring guests if he or she is making too much noise.

Repeat offenders -- look out, you are banned from the quiet zone for life or -- at least until you get your snoring under control.

That will do it for new. CNN NEWSROOM continues right now with Brooke Baldwin.