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Perry Blitzes Media Ahead of Speech; "Occupy Wall Street" Showdown Delayed; U.S. Income Down Until 2021; UK Push to Change Royal Succession; Illegal Immigrants Living in Fear; Gap Downsizes in U.S.; Interview with Rep. Duncan Hunter; Fashion for Rent; 5-Year-Old Singing Sensation Wows

Aired October 14, 2011 - 09:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: Good morning, guys.

Well, we're beginning this morning with Texas Governor Rick Perry on the offensive. His media blitz comes just hours ahead of a major speech aimed at reigniting his campaign.

Paul Steinhauser in Washington for us.

Paul, what do you think? Is this a sign of desperation for the Perry camp?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Well, he has been dropping in the polls the last couple of weeks, no doubt about that, Kyra. I don't think the campaign would agree with that assessment, though.

They say he's doing the morning shows today, all the morning shows in advance of this big speech because he wants to tout his economic plan. That's what he's going to be doing a couple of hours from now in western Pennsylvania. His energy plans, his jobs plan, it's kind of the first stage. He's been attacked and criticized for not having a plan and he's bringing it out today.

He was on our "AMERICAN MORNING," Kyra, just about an hour and a half ago and it was interesting, though, one of the highlights I thought were his comments about his wife. His wife Anita yesterday on the campaign trail in South Carolina making some interesting comments. Take a listen to what she said and what he said this morning.

(BEGIN VIDEO CLIP)

ANITA PERRY, GOV. RICK PERRY'S WIFE: It's been a rough month. We've been brutalized and beaten up and chewed up in the press. We've been brutalized by our opponents and our own party.

ALI VELSHI, HOST, CNN'S AMERICAN MORNING: Down on this as Anita seemed?

GOV. RICK PERRY (R), PRESIDENTIAL CANDIDATE: You know, family members always take these campaigns substantially more personally than the candidate. I have been doing this for a long time, understands slings and arrows, and that's a diversion, frankly. This is a -- this is the big leagues. Everybody understands it's about the presidency of the United States and we're committed to this campaign.

(END VIDEO CLIP)

STEINHAUSER: You know, some pundits have been criticizing Perry, saying, well, is he really into this? Perry says, yes, I am -- Kyra.

PHILLIPS: All right. We're also hearing more from Perry with regard to the Mormon issue this morning. He had briefly told us when it first happened that he didn't agree with Pastor Jeffress. Now he's talking a little bit more about it.

STEINHAUSER: You're right. And this goes back about a week and a half when that pastor from a very prominent church in Dallas, Texas, criticized the Mormon faith saying it's a cult and of course Rick Perry is one of his rivals. Former Massachusetts Governor Mitt Romney who's the frontrunner in the polls is a Mormon. Take a listen to the exchange on "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

VELSHI: Are you prepared to disavow the pastor's comments?

(CROSSTALK)

PERRY: We live in a great country. Our founding fathers gave us freedom of religion and we certainly have that in America, and I respect that. We have religions of all backgrounds, but we also have freedom of speech. And I'm not going to spend my time defending everything that is said by someone who endorses me. Doesn't mean I endorse what they say. And that is the case here.

(END VIDEO CLIP)

STEINHAUSER: Our Ali Velshi also asked Perry about his lackluster debate performances. He kind of brushed that off saying Americans aren't looking for the best debater, they're looking for policy and plans and jobs. And we'll hear more about him and his jobs plan about 90 minutes from now -- Kyra.

PHILLIPS: All right. And we'll take it live.

Paul, thanks so much.

Stay with us next hour, we will carry Perry's speech live from Pittsburgh. It's scheduled for about 10:30 Eastern Time.

And also don't forget next Tuesday night live on CNN the Republican candidates for president gather in Las Vegas to debate the issues. The "Western Republican Presidential Debate," CNN Tuesday night, 8:00 Eastern.

Well, in New York a showdown is avoided, at least for now. Police will not evict protesters from a park near the New York Stock Exchange.

Susan Candiotti is there. So, Susan, why did police change their minds? Were they afraid that a confrontation could get ugly?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Well, it's impossible to say exactly what changed their minds, however, we got word a few hours ago, literally, about three hours ago at 6:00 in the morning that there had been some sort of an agreement by the people who own this park. It's not a public park and they decided -- they talked -- told the police and said it was no longer necessary for them to come over.

What we're hearing now as we show you a bit of the park is that according to New York's Mayor Bloomberg, he said that the property owners were getting some sort of threatening calls or threats of some kind, and he's still trying to pin down exactly what those alleged threats were.

I spoke to the people who run this protest or the press -- spokespeople for "Occupy Wall Street" and they said they don't know anything about any kind of officials either from them or anybody else making any kind of threats to the people who run this park.

Nevertheless, huge number of people that was -- that were here at the park, (INAUDIBLE) swelled, but as it turns out -- and they were prepared to sit down, lock arms and not let anyone interfere with them being here in the park or try to move them out.

Again, there was no police action. And now the numbers have dwindled just a bit, but it is still very, very busy here. There have been some marches off and on, and they plan on being here, again, as they had before. Camping out as long as it takes, they said, to get their message heard against Wall Street greed.

Back to you, Kyra.

PHILLIPS: Susan Candiotti there live in New York for us. Susan, thanks.

And earlier this morning in Colorado police in riot gear began clearing the "Occupy Denver" protests near the capitol. Demonstrators had set up dozens of tents in a park and refused to leave when ordered last night.

You're looking at live pictures now. And so far things have been mostly peaceful. We're going to keep monitoring it for you.

For the average American worker, it's been a bad decade and the next one isn't looking a lot better. According to "Wall Street Journal" that 7 percent decline in median income won't fully return to your paycheck until 2021.

Christine Romans breaking it down for us.

Christine, why are incomes down and is the trend going to turn around at any point?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, they have been calling it the lost decade from 2000 to 2010. The census data, Kyra, is very clear that the average family in the media income for households fell 7 percent in that period. You haven't seen a period -- a 10-year period where you've lost that much in terms of what you make since 1967.

This analysis by "Wall Street Journal" economists -- economists surveyed by the "Wall Street Journal" find that we'll see a 5 percent growth in income. So the very far right of there. They're forecasting a slight increase in income by the year 2021, but that will not bring us back yet to pre-recession levels, quite frankly.

Now one thing I keep telling you about is how the more education you have, the better off you faired. In terms of unemployment rate, that's true. People with a college degree have an unemployment rate that's only 4.2 percent. That compares to 9.1 percent for everyone else. But also when you look at this wage data, even people with a college degree saw their wages, their earnings, their household income fall in that period.

The only people, the only group, Kyra, who didn't see their income fall in that decade were people with advanced degrees. So even though maybe a college education shielded you from unemployment, it didn't shield you from those losses in your household income.

So this -- and you talk about "Occupy Wall Street," these kinds of numbers illustrate the unhappiness that people have with their economic situation right now -- Kyra.

PHILLIPS: Yes. Well, a lot of people are unhappy about it, no doubt.

Christine, thanks.

ROMANS: Sure.

PHILLIPS: Well, there are some happy news overseas. Will and Kate's baby girl could be queen. No, I'm not announcing a pregnancy, but a possible new deal in London.

Max Foster has more on the buzz about the royal succession. I think we grabbed folks' attention?

(LAUGHTER)

MAX FOSTER, CNN INTERNATIONAL ANCHOR: Yes. Yes, absolutely. But it's looming, isn't it? And that's what's worrying politicians at the moment, particularly the prime minister, David Cameron.

Now the law is inherently sexist. These ancient laws, over hundreds of years, do say that if Kate the duchess did have a girl and then a younger brother, it would be the boy who'd become king, not the older sister becoming the queen. And everyone agrees this is a problem.

The thing is, David Cameron told us on Wednesday that he wants to change this law. But what he's trying to do is build up momentum, international momentum because the queen is head of state, not just in Britain, but also in 15 other countries, including Australia and Canada and they all have to agree to this change in the law.

There's an opportunity at the end of the month when all of those prime ministers will be meeting up in Australia for the Commonwealth Heads of State meeting. That's what we're all looking towards now.

So we're going to -- we've been trying to assess the international interest in this and whether or not there is momentum behind it. That's what "The Economist" here in the UK talking about, "The idea of tweaking centuries-old royal succession rules has been raised by previous governments, but has always been shelved on the grounds of complexity. For simplicity sake, best to agree to a change before Prince William and his wife," the duchess of Cambridge," announce that they are expecting a child." So it could happen any day.

The "Toronto Star" in Canada, one of the realms, "You go, girl. And rule Britannia." "The present queen with 59 successful years on the throne has established beyond doubt that there's no reason to put barriers in the way of women wearing the crown."

Everyone agreed on that.

The "Sydney Morning Herald" in Australia, "Nothing exceeds like the succession." "The act is not only sexist but entrenches religious discrimination, too. It should not be amended to remove gender discrimination. It should be repealed in its entirety."

What they're referring to there, Kyra, is this other weird thing about these laws. William, if he married a Catholic can become king. So that goes back to centuries old rules, as well. It's all going to change, but it's complex.

PHILLIPS: Yes, well, it's 2011. Sometimes things just need to change, Max. Thanks.

FOSTER: Agreed.

PHILLIPS: Well, some families living in fear ready to leave at a moment's notice.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: My parents gave me the option to stay and I told them we came as a family and we'll leave as a family.

(END VIDEO CLIP)

PHILLIPS: Coming up, we're going to show you how Alabama's tough immigration law is working. Supporters say it's going to save jobs, critics say it's created a culture of fear.

And honoring battlefield bravery. We're going to talk to a congressman who says the Pentagon is not doing enough.

(COMMERCIAL BREAK)

PHILLIPS: Live to Denver, Colorado, now. These pictures coming to us from two of our affiliates, KUSA and KMGA. We thank you for the pictures. You can see the police in riot gear there. They've actually been trying -- or starting to clear out the "Occupy Denver" protest near the capitol there.

Demonstrators had set up dozens of tents in the park there, refused to leave when they were ordered to leave last night. Now, as you can see they are peacefully making arrests and trying to clear that area.

Well, news from across the country now.

Seal Beach, California, held a vigil to honor shooting victims. Eight people were killed, a ninth person was wounded when a gunman attacked a salon. Police plan to release their identifies today. The suspect's ex-wife was killed, as well. The two might have been going through a custody battle.

And look what drug smugglers were doing in Nogales, Arizona. They tunneled under the Mexican border right underneath parking spaces on the American side. Cars with holes underneath would park in the spaces and load up from below. Concrete patches were actual plugs. The city stripped out the entire area of parking meters now.

And this will make your back hurt just watching. US Airways had a jet-pulling contest for employees. The team that pulled the Carolina Panthers plane 15 feet the fastest won. Proceeds went to the United Way.

Well, Alabama might have the toughest immigration law in the nation. Supporters say it's needed to save jobs, but critics say it's having other consequences.

The story now from our David Mattingly.

(BEGIN VIDEOTAPE)

ROMAN LOVERA, UNDOCUMENTED IN ALABAMA: Right there.

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT (on camera): This is it over here?

(Voice-over): He was just two months away from graduation, but now Alabama high school student Roman Lovera is afraid to go to school.

(On camera): As we drive down this road, what are you thinking?

LOVERA: I was so close. One little piece of paper kept me from graduating.

MATTINGLY (voice-over): That piece of paper is the new Alabama immigration law that supporters and opponents alike call the toughest in the country.

For the undocumented, a simple traffic stop could lead to deportation. Roman Lovera's family immigrated to Alabama illegally 10 years ago. Today he likes hunting, Leonard Skynyrd and Alabama football.

(On camera) If I didn't know better I'd say you were a good old boy.

LOVERA: I have grown up with southerners my whole life. Some people even call me a Mexican redneck.

MATTINGLY (voice-over): And yet Lovera and hundreds of other Hispanic students are fleeing Alabama schools. Their families making plans to flee the state. Others feel trapped.

(On camera): If you could speak to the people who passed this law, what would you say to them?

"ARELI," UNDOCUMENTED IN ALABAMA (through translator): Don't be selfish. We all need and have an opportunity.

MATTINGLY: Twenty-seven-year-old Areli immigrated to Alabama illegally from Mexico 11 years ago. She and her husband say they can't move because she's almost seven months into a high-risk pregnancy. And every day they stay, they risk deportation. They ask that their full names and faces not be revealed.

ARELI: We are not stealing anything from them, simply asking them to let us work.

MATTINGLY (on camera): Families living in fear, children being pulled out of schools. Was this the intent of this law?

SCOTT BEASON, ALABAMA STATE SENATE: There's no intent for families to live in fear.

MATTINGLY (voice-over): State Senator Scott Beason led passage in the legislature. He tells me the focus was on jobs.

BEASON: Our responsibility is to the people who elect us, to the people of Alabama. If there are other states out there who want to welcome an illegal workforce and displace their own workers, they should invite them there.

MATTINGLY: In the meantime, Roman Lovera says his dreams of graduation and college are fading. In his family's two bedroom apartment, the blinds are drawn and their bags are packed -- ready to run, if need, at a moment's notice.

LOVERA: My parents gave me the option to stay and I told them we came as a family and we'll leave as a family.

(END VIDEOTAPE)

KYRA PHILLIPS, CNN ANCHOR: Wow. They're bonded, aren't they?

Now, a decision might actually come down today.

MATTINGLY: All eyes on the 11th circuit court right now. This case is just winding its way through the courts and as with all states who pass laws like this, it is expected to end up at the U.S. Supreme Court. So, this is just one stop along a very long, legal road. Meanwhile, all the families you saw like the ones I talked to living in complete limbo right now. They feel like their days in Alabama are literally one at a time.

PHILLIPS: I love how you point it out. It seemed like a good old boy, you like Lynyrd Skynyrd, Alabama football. He's definitely ingrained himself in the culture.

MATTINGLY: He's been there for a decade. It's really where he's grown up. It's the life that he identifies with, and he feels like it is his home. Sweet home, Alabama.

PHILLIPS: Well, we'll track it. Thanks, David.

Double takes in London and that's because Big Ben is tilting a bit. We're going to find out what is going on with the world famous clock right after the break.

(COMMERCIAL BREAK)

PHILLIPS: Let's get to your "Showbiz Headlines."

The godfather of soul will be honored posthumously Saturday by the Georgia Radio Hall of Fame right here in Atlanta. Everyone remembers Brown as an iconic singer and performer. But during his life, he also owned several radio stations that did very well and helped launch the careers of many deejays. WJBE in Knoxville is one of those stations. It stands with James Brown Enterprises.

And one of the most famous license plates in New York. It belongs to the ecto-bile used in the popular comedy film "Ghostbusters." Well, this month, fans can actually watch the original movie in 500 theaters around the country as part of special Halloween screenings.

And overseas, you've been to London lately and notice that, well, Big Ben is a little off. It's not your imagination. London's most famous clock is actually leaning.

Our Max Foster noticed it, as well. In fact, he's getting ready to climb the tower.

Max, tell us.

MAX FOSTER, CNN INTERNATIONAL: I've just been told it's 334 steps to the top. That's what I'm focused on right now, Kyra. I'm not the fittest person in the world. I'm climbing up today and investigate this and take with me a spirit level. We're going to find out whether it's flat at the top.

All the way up to the top, the bell that's called Big Ben -- I have to clarify this -- the clock tower is just called St. Stephen's Tower.

But they have done surveys over the years and it is tilting more and more each year, but only a slight bit. So, if you look from the bottom, apparently, the top is about 1 1/2 feet out, but it's leaning towards the river. Great deal of concern it's going to fall in the river. I'm told that's not going to happen. In fact, not even get to the level of the Leaning Tower of Pisa --

PHILLIPS: Pisa?

FOSTER: -- for 10,000 years. Exactly.

PHILLIPS: Yes, you can still take that picture like everybody does, when they go to Leaning Tower of Pisa. Yes, the total tourist picture. Why --

FOSTER: I'm going to bring it to you later on.

PHILLIPS: OK, perfect. Why is the tower leaning?

FOSTER: Well, it's just the foundation is soft ground, apparently. It's right by the river. So, it's just leaning in towards the river.

But, you see that building on the right. That's the new offices of parliament. Lots of jokes being made right now that hopefully the tower will fall on that, if it does fall, because it's a very unpopular building.

"Leaning Tower of London," that was the headline today.

PHILLIPS: Well, we'll see what happens and I'll be looking forward to the picture. I'll put it right next to mine by the Leaning Tower of Pisa. Thanks, Max.

FOSTER: You should do that.

PHILLIPS: All right.

Well, Alison Kosik is at New York Stock Exchange following all the big changes at Gap. What's the deal?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes, there are. So, yes, Gap going through lots of changes. What Gap is really trying to do at this point, Kyra, it's trying to find a recipe for growth. So, while it kind of deals with that concoction to go ahead and close North American stores. We're hearing that Gap could close almost 200 stores. They're also going to look to shrink the number of Old Navy stores in North America.

But what the company is doing is expanding overseas. It's already opened its first Old Navy store in Japan. It's first Banana Republic in Paris. In fact, it's tripling the number of Gap stores in China.

The thing with Gap right now, it relies heavily on North American sales. The company CEO says that he's predicting that growth is going to slow here in the U.S., so, he's going to where the business is. Some analysts say the chain has suffered because it hasn't offered enough compelling styles to get people in the door.

All of this, of course, has hit Gap sales and stock. You look at how the stock has performed this year. Gap stock is down, 19 percent for the year -- Kyra.

PHILLIPS: All right. How are the numbers looking today?

KOSIK: Numbers are looking good. You know what? Google is giving the markets a boost just before the opening bell rings in just about seven minutes. Those July through September earnings blew past expectations with the CEO coming out and saying that the word comes to mind is "Gangbusters." Google shares are up 8 percent in the premarket.

Apple shares were also keeping our eye on those, up 2 percent on strong iPhone 4S sales. That's the expectation as iPhone 4S goes on sale this morning. I don't know if you notice, but everyone was lining up, lining up outside that Apple store on Fifth Avenue in New York.

I'm now seeing the pictures, Kyra. It's amazing. The first guy that walked through had been waiting there for two weeks.

PHILLIPS: Actually, I think we have, is that the video we have, Sarah? Is what Alison is talking about in this tease? OK. There you go, perfect segue, Alison.

KOSIK: There you go.

PHILLIPS: Just the iPhone. OK. There you go. There it is, though. Oh, a really handsome man listening to one.

Hold on a second, let's run this clip a couple times. There you go.

No, but seriously, we all know when a product launches like this, it's always a camping adventure. They're out there waiting overnight to get their 4S.

KOSIK: And Apple makes it so exciting. Apple makes it so exciting. They're so good about it, you know?

PHILLIPS: Well, we'll go live to an Apple Store right after the break. Thanks, Alison.

KOSIK: OK.

PHILLIPS: All right. Herman Cain, he's rising in the polls and raising eyebrows with some of his comments on race. Take a listen.

(BEGIN VIDEO CLIP)

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: People sometimes hold themselves back because they want to use racism as an excuse for them not being able to achieve what they want to achieve.

(END VIDEO CLIP)

PHILLIPS: Just ahead, the roller race in this presidential campaign compared to that of the last African American, Barack Obama.

Stay with us.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now:

A possible showdown averted in New York. The cleanup and eviction of Manhattan park occupy Wall Street protesters has been postponed, hoping to avoid a potential confrontation with police.

And on Capitol Hill, the House passed a bill on abortion funding. It would amend the health care law to bar federal funding for health care plans that provide abortion services. It passed with overwhelming Republican support.

And CNN has learned that the U.S. has had face-to-face contact with Iran about its alleged plot to assassinate a Saudi ambassador in U.S. soil. Susan Rice, the U.S. ambassador to the United Nations, met with Iran's representative to the U.N. on Wednesday.

Well, it's official. If you have an iPhone 4, you're behind the tech curve. Apple's new iPhone 4S went on sale this morning. Lots of people camped out overnight so they could get it.

Recognize this guy? That's Apple's co-founder. He was there, too. Matter of fact, he was first in line. He says he already has a new phone. He just enjoys the whole experience.

Well, Apple could sell up to 4 million new iPhones this weekend. The 4S will be available on more mobile networks and, of course, the 4S is one of the last products developed under Steve Jobs.

CNN's Joe Carter just outside an Apple Store in Atlanta.

So, what do you see, Joe?

JOE CARTER, CNN CORRESPONDENT: Hi, Kyra. Good morning.

You know, we saw the lines start here in Atlanta around 3:00 a.m. Eastern Time. It started out relatively small and then grew to about 200 or 300 people right around as the store opened about 8:00 a.m. Eastern. And it was great.

You know, when the doors opened here at the Apple Store, you had the employees cheering. You had the customers cheering. Everyone was excited about getting this product.

You know, it's something special about being the first to get that piece of technology.

Earlier this week when they announced the release of the iPhone 4S, people were hoping for the iPhone 5, but they got the 4S instead. And the phone looks exactly on the outside, as the 4 does, but it's the inside that's the difference. It's got a better battery. It's got a better digital camera. It's got a better video recorder.

But the real game changer, the feature that really has people talking is the voice-controlled personal assistant which is called Siri. And basically what it does is you speak to Siri and give it commands, ask it to do things like check the weather, give you directions, find restaurants, move meetings. It actually replies to text messages, replies to e-mails.

One tech expert reviewed it and said Siri is like the intern of your dreams. So, as of now, I'd say there's probably 150 to 200 people waiting in line here for the iPhone 4S here in Atlanta and it looks like it's going to be pretty smooth sailing, Kyra. There's not a lot of worry of them running out of phones.

PHILLIPS: And there you go, you got -- being the sports guy that you are, you got all your highlights in a whole different light there, Joe. Thanks.

CARTER: Yes.

PHILLIPS: Well, four years ago, candidate Barack Obama campaigned on a promise of change and often cited his own role as a frontrunner. But this election season, a leading Republican candidate Herman Cain almost makes no mention of his race.

CNN's Shannon Travis takes at look at why.

(BEGIN VIDEOTAPE)

BARACK OBAMA, THEN-PRESIDENTIAL CANDIDATE: Hello, Chicago.

SHANNON TRAVIS, CNN POLITICAL PRODUCER (voice-over): In 2008, Americans watched as one African-American kept his eyes on the prize and won it.

OBAMA: It's been a long time coming. But, tonight, because of what we did on this day, in this election, at this defining moment, change has come to America.

TRAVIS: Fast forward three years, another black man, also eyeing the prize, also generating buzz, but who's reluctant to mention his race in the story of his journey.

Republican presidential candidate Herman Cain also believes the notion of racism is overblown.

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: People sometimes hold themselves back because they want to use racism as an excuse for them not being able to achieve what they want to achieve.

TRAVIS: Many of Herman Cain's conservative supporters agree, race should not be a major issue.

Why are conservatives reluctant to talk about Cain being a black man? For one, many say it's liberals who overly focus on race and politics. The candidate himself says this --

WOLF BLITZER, THE SITUATION ROOM: Why is the Republican Party basically poison for so many African-Americans? CAIN: Because many African-Americans have been brain washed into not being open minded, not even considering a conservative point of view.

TRAVIS: A second reason concerns the Tea Party. Critics have accused it of harboring racist elements, something Tea Partiers deny.

Though Cain's popularity is rising in recent polls, the former radio talk show host has long been a Tea Party favorite.

CAIN: What do you think about this whole Tea Party citizens' movement?

TRAVIS: He's been a sought after speaker at Tea Party rallies. He's won presidential straw polls with strong Tea Party support and many activists say they want him on a presidential ticket either at the top or as V.P.

Organizers cite those facts against claims of Tea Party bigotry.

Jenny Beth Martin is co-founder of the nation's largest Tea Party group, the Tea Party Patriots. She thought CNN, quote, "I think that having an African-American with so much Tea Party support is another example that the Tea Party movement is not racist. It shows that we're looking at the issues and we're not looking at skin color."

Yet questions regarding Cain's skin color will likely continue. As many people celebrate Martin Luther King Jr. at this weekend's dedication of his Washington Memorial, Herman Cain has his own take on the dream.

CAIN: I have achieved all of my American Dreams and then some because of the great nation, the United States of America. What's there to be angry about?

TRAVIS: Shannon Travis, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: And don't forget, next Tuesday night, live on CNN, the Republican candidates for president will gather in Las Vegas to debate and the Western Republican Presidential Debate will air right here on CNN at 8:00 Eastern.

Coming up, a Marine gives his life to save his buddy's. But his Medal of Honor is denied. I'll talk to a congressman who is fighting for Sergeant Rafael Peralta and all our other warriors.

(COMMERCIAL BREAK)

PHILLIPS: The Medal of Honor is the highest military distinction an American trooper can receive and in our 10 years of war, only 10 have been awarded.

Congressman and U.S. Marine Duncan Hunter wants to change that. He says we need to recognize the courage and costs of war more. Take Marine Corps Sergeant Rafael Peralta, for example. He was killed in Iraq in 2004. He covered an insurgent's grenade with his body taking his life but saving his comrades. Just one of many stories the congressman wants to recognize.

I had a chance to ask him why Medals of Honor are awarded today at the fraction of the rate of World War I through Vietnam.

(BEGIN VIDEOTAPE)

REP. DUNCAN HUNTER (R), CALIFORNIA: I don't know why. In fact, in Vietnam, we actually gave out over 200, 200 men earned the Medal of Honor. I think the average is 2.3 per 1 million prior to the wars in Iraq and Afghanistan. That's dropped precipitously. In fact, we've only given out of those 10 Medals of Honor, we've only given out three to living people, and those only during this administration's tenure.

So, during the Bush administration's tenure, there were zero Medals of Honor given out to living recipients. I don't know what the reason is. The DOD tells us that the nature of war has changed, and we're no longer fighting hand to hand. We're no longer in a close quarter combat.

Tell that to the Marines in Fallujah, to those soldiers in Ramadi and Iraq, and those Marines and soldiers fighting in Afghanistan right now, risking their lives and doing courageous things every single day -- not recognizing them for what they're doing is a travesty.

PHILLIPS: Well, on top of that -- I mean, yes, we do fight differently, but our warriors are also up against a different enemy, Congressman, one that doesn't fight fair -- roadside bombs, suicide bombers. There's no rules of engagements like in past wars.

Shouldn't we be giving our troopers even more recognition for that?

HUNTER: You're absolutely right and there's no more front line either. Everything is open to conflict, behind the lines, in the basis as we've seen and out in no man's land in Afghanistan.

The reality is, though, that Marines and soldiers still have to clear and hold ground. They always have from the beginning of warfare and they always will.

I can name you multiple, multiple cases and hundreds of cases where singular acts of valor have saved dozens of lives, killed dozens of insurgents. These aren't bombs dropping out of the sky, these aren't laser-guided bombs and these aren't IEDs.

These are men rushing the enemy, looking them in the eye and sometimes finishing them off with their knives, with their helmets, with empty rifles used as gloves. If that's not close quarter combat, I don't know what is.

PHILLIPS: Finally, the Pentagon issued a statement to you, saying that the criteria for the Medal of Honor are longstanding, have not changed for current conflicts and that each recommendation is carefully considered.

So, now, you have written this formal letter that I had a chance to read to the sec def. What do you want Leon Panetta to do?

HUNTER: I simply want DOD to do its job. I think that the numbers tell a different story than what the DODs line for this is.

I would like DOD to look at all their Silver Star, their Navy Cross, their Distinguished Service Cross, awards, and specifically compare those with the awards given in Vietnam and World War II.

I think you will find that these lower awards now could easily be upgraded to the Medal of Honor. DOD is there to make sure that the men and women serving get what they deserve, if they deserve a higher award. That's what the DOD should be doing.

(END VIDEOTAPE)

PHILLIPS: Now, the military will mark the Medal of Honor's 150th anniversary in December. In all, nearly 3,500 have been awarded.

Well, up next, Georgia takes a tough stand on Atlanta's test cheating scandal. Some of the accused teachers learn their punishment.

(COMMERCIAL BREAK)

PHILLIPS: Let's check stories making headlines cross country.

The first round of punishment is going out in the Atlanta test- cheating scandal. Georgia revoked the certifications, rather, of three administrators and imposed two-year suspensions on eight teachers. Almost 200 other cases are still under review.

Hundreds of students stopped, dropped and rolled at the Indiana state fair ground. The fire department put 1,600 first and second graders through several drills as part of fire safety Olympics.

And syrup is serious business in Vermont. U.S. Senator Patrick Leahy says that he will introduce a bill making it a felony for people to sell fake stuff for real maple syrup. He says it's needed to protect Vermont's farmers and crop from fraud.

Well, fashion conscious women covet the big name designers, but who could afford the big price tag that goes with them?

CNN's Poppy Harlow found some pretty savvy fashionistas who figured out a way to let you wear the threads without pulling on your purse strings.

(BEGIN VIDEOTAPE)

POPPY HARLOW, CNNMONEY.COM: Herve Leger, Robert Rodriguez, Moschino. They're all here inside this nondescript New Jersey warehouse. Well, the designers aren't here, but thousands of their latest frocks are -- ready to be rented out at a fraction of retail.

JENN HYMAN, CO-FOUNDER, RENT THE RUNWAY: Right now on our racks, we have close to 35,000 dresses. We have close to 20,000 accessories.

HARLOW: A product of the great recession, Rent the Runway has brought high fashion to, well, Main Street.

HYMAN: This dress is a Nina Richie dress that actually Kim Kardashian and Jennifer Aniston just wore.

HARLOW: It's yours for $175, for a few days, at least.

AILEEN LEE, VENTURE CAPITALIST: The fact that you can wear it and then not have to worry about dry cleaning and put it in an envelope and send it back and then it can be shared with someone else, I think it's -- it's ingenious.

HYMAN: This is our repair section --

HARLOW: Jen Hymen and Jenny Fleiss launched Rent the Runway as students at Harvard Business School two years ago testing the idea on undergrads.

JENNY FLEISS, CO-FOUNDER, RENT THE RUNWAY: From that moment we knew we really had something. Because this one girl put on a sparkly Tory Birch dress and she twirled around in the mirror.

KOSIK: I heard that you didn't have a business plan. You just sort of tried it out.

HYMAN: We're anti-business plan people.

HARLOW: Really, why?

HYMAN: We think that so many people sit around all day and they just strategize and they don't act. By no means has this business ever been perfect. I think our site has gone down more than any other site on the Web.

HARLOW: But they caught the eye of major BC backers to the tune of more than $31 million. 1.4 million members and growing, according to Rent the Runway, which is projecting three times last year's sales.

CHANTELLE KARL, RENT THE RUNWAY CUSTOMER: In this day in age with Facebook and Intergram and Twitter and all the pictures that are getting taken, my stand-by staples just weren't cutting it any more.

FLEISS: We have an analytics team that is looking at past accessories of different colors, styles, cuts and incorporating that into our decision.

KOSIK: Why would designers sell you their dresses so you can rent them instead of having customers buy their dresses? Why do they do that?

FLEISS: It's actually a customer acquisition tool for designer brands where younger customers are renting from us that are actually buying their dresses. HARLOW: Their most popular brand, Herve Leger, says the partnership has brought a new awareness level to the brand. But if this model proves successful in the long run you can bet on seeing a lot more than dresses from these two.

FLEISS: We have all the technology to support it. We can go into many different categories. And that's where the business expands because we go from people renting a few times a year to renting dozens of times a year.

(END VIDEO CLIP)

PHILLIPS: Poppy joining us live from New York. So they say they're going to expand.

HARLOW: Yes. They are. And this is what I found so interesting, Kyra. As I said, all right, well, tell me how you're going to expand. And they said, well, if you go on vacation, you want snorkeling gear or a nice camera. And I said, really, you're going to go from gowns to those sorts of things?

What they have realized by doing this, Kyra, is that people don't want to buy things that they only need once in a while. Like a gown for example, they go in department stores and they say, what is not selling here and we're going to buy all of that because people will rent that.

So I think you can expect these two to go far away from just dresses and they proved that. They're 28 and 31 years old. They've got $31 million in venture capital money. They're going to go pretty far -- Kyra.

PHILLIPS: Poppy this is just one more reason why our kids need to go to Harvard, especially our daughters.

HARLOW: Yes, not a bad start.

PHILLIPS: All right, Poppy, thanks.

Well, those Taiwanese animators are at it again. This time they've spoofed the NBA lockout. That's in sports, coming up.

(COMMERCIAL BREAK)

PHILLIPS: All right. Here's a look at stories making news later today. At noon Republican presidential candidate, Herman Cain kicks off a two-day bus tour in Tennessee.

And 1:30 Eastern, President Obama tours a General Motors assembly plant in Michigan along with South Korea's President.

At 2:00 Eastern, in Southern California, the police chief of Seal Beach will discuss Wednesday's shooting rampage that left eight people dead at a beauty salon.

We're following a lot of other developments in the next hour of the CNN NEWSROOM. Let's check in first with Susan Candiotti -- Susan.

SUSAN CANDIOTTI, CNN NATIONAL CORRRESPONDENT: Hi, Kyra. Protesters here at Occupy Wall Street are saying people power rules as the city backs down from moving them out. I'll have a live report coming up at the top of the hour.

JOE CARTER, CNN CORRESPONDENT: I'm Joe Carter in Atlanta, Georgia, standing outside the mall where they're selling the iPhone 4s. It's officially on sale. Apple's latest and greatest product has drawn a big crowd. We'll talk to some of those fanatics coming up in a live report.

MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT: And I'm Max Foster in London where there's growing international pressure on the prime minister to take the sexism out of who can succeed to the throne -- Kyra.

PHILLIPS: Thanks, guys.

And stay with us, because also coming up next hour, you're going to meet a former inmate who emerged from prison as a true champ. He stepped into the ring Saturday night as a free man. That as you'll see he's already won.

(COMMERCIAL BREAK)

PHILLIPS: Baseball playoffs; I continue to be educated by my Jeff Fischel.

JEFF FISCHEL, HLN SPORTS: I'm trying to teach.

PHILLIPS: I still can't believe Prince Fielder's real last name is Fielder. He's a baseball player --

FISCHEL: Yes, just like his dad Cecil.

PHILLIPS: I don't believe it. They changed it.

FISCHEL: Two crucial games last night including Prince Fielder's Brewers. NLCS Game 4 in St. Louis, the fearsome power of the squirrel. The rallies grow for the Cardinals being tested, the Cardinals and Brewers.

Let's show you the highlights from Game 4. Ryan Braun had the big hit for Milwaukee. He led the Brewers to a win. There's Ryan Braun. That's the hit that put Milwaukee in front in the left, the go ahead run. The Brewers win 4-2. That series is tied at 2.

In the American League, Detroit's back against the wall, trailing three games to one to the Rangers. And there's Delmon Young, he's been hurt. He didn't have a hit in the series before yesterday. He hit two home runs.

And then the Tigers also get a friendly bounce. Miguel Cabrera, looks like a double play ball that bounced over Adrian Beltre's head. The Tigers go on to win 7-5. The Rangers lead that series three games to two. Game 6 tomorrow.

We know the President's a big hoops fan. We've learned he'll be at the Michigan State-North Carolina basketball game played on Veterans' Day. The carrier class is going to played onboard the USS Carl Vinson off San Diego. The flight deck can seat about 7,000 people; most of the spectators will be service men and women. Tickets won't be sold to the public. Very cool game.

NBA commissioner David Stern is sounding like the Grinch who stole Christmas. Basketball, he says, if there's no new labor deal between owners and players by Tuesday, there probably won't be any games before Christmas. Ouch.

But smile, hoop junkies, those Taiwanese animators are back. This time, they're tackling the NBA lockout. Did you catch that? Commissioner David Stern taking a chain saw to the financial pizza pie both sides fighting for a bigger slice. At one point in the show you have players aren't getting paid. Computer generated Lebron has his crown and mansion taken away and replaced -- his limo is replaced with a minivan.

PHILLIPS: What a way to wrap up a Friday.

FISCHEL: We've seen the Charlie Sheen version, my favorite actually. And them explaining the Tiger Woods scandal is actually (INAUDIBLE).

PHILLIPS: They are pretty creative, you have to admit. And then the one with security going to the airport.

FISCHEL: The airport security.

PHILLIPS: That's a great one too.

Ok. We've got to go. See you, Jeff.

Famous pop star is getting a run for her money from a young singing sensation that is wowing the world. Jeanne Moos takes a closer look.

(BEGIN VIDEO CLIP)

JEANNE MOOS, CNN CORRESPONDENT: When 8-year-old Sophia Grace Brownlee hit YouTube, she was a hit doing her version of the Nikki Minaj song, "Super Bass".

(GIRL SINGING)

MOOS: Ok, so maybe Nikki Minaj had a few more pelvic thrusts, but Sophia Grace's version has gotten around 9 million views on YouTube and landed the girl from Essex, England, on "The Ellen Show".

ELLEN DEGENERES, TALK SHOW HOST: Is that your favorite singer, Nikki Minaj?

SOPHIA GRACE BROWNLEE: We love Nikki Minaj. We're going to be a star.

MOOS: That's nice, because Nikki Minaj tweeted the same thing about her. "I have to meet her. She is a superstar."

A superstar with a sidekick -- her cousin Rosie.

BROWNLEE: But I think I feel more confident when I've got someone with me.

MOOS: But Sophia Grace's heartbeat really started running away when Ellen introduced her idol. Even the parents were overcome -- dad asking for a tissue.

NIKKI MINAJ, SINGER: She blew me away.

MOOS: Now, there's some bad language in "Super Bass". But when Sophia Grace sings it, the F word and N word are gone. But the panties stayed, at least in the "Ellen Show" version.

As if meeting her idol wasn't enough, Nikki promised Sophia Grace a shopping spree. She also got a wig so she could look like Nikki. And then they sang a duet.

Her boom-booming heart never slowed as she danced relentlessly through the commercial break. Even her sidekick couldn't get her to kick it down a notch.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)