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Obama, Boehner Meet On "Fiscal Cliff"; U.S. Deploys Troops, Patriots To Turkey; Two Earthquakes Off California Coast; Nuclear Watchdog Group: Iran Deal Near; Mall Reopening After Shooting Spree; Sign of the End Times?

Aired December 14, 2012 - 10:00   ET

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

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JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): -- the prank on Assan was an attempt by his record company to create a viral video, but his mom cried and so did Assan. To them, the surprise was nothing less than Stevie wonderful. Jeanne Moos, CNN, New York.

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DON LEMON, CNN ANCHOR: He's right. That was awesome. And the next hour of the CNN NEWSROOM begins right now.

And happening in the NEWSROOM, a crumbling regime and a threat of chemical weapons, the U.S. rushes to protect an ally that shares a border with Syria.

Ambassador Susan Rice withdraws her name from the running to replace Hillary Clinton as Secretary of State. President Obama's short list just got a lot shorter.

We've got bigger fish to fry. That's what President Obama told Barbara Walters after she asked him about going after recreation pot smokers in Colorado and Washington State where it's now legal.

The Mayans predicted the end of the world is near. With so many natural disasters happening lately, a lot of Americans believe the Mayans may be right.

CNN NEWSROOM starts right now.

Good morning, everyone. From Washington, I'm Don Lemon, in the place where the biggest story is happening this hour. A withdrawal and a surrender, Ambassador Susan Rice caves to Republican outcry and drops out of the running for Secretary of State.

The job seemed to be hers. But then there was a deadly attack on the U.S. Consulate in Libya. Days later, U.S. Ambassador Chris Stevens and three other Americans were killed. Rice said it was a spontaneous attack that got out of hand rather than a planned terrorist attack.

Republicans say she was lying to downplay her boss' failed policies. Rice defends her handling even now.

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SUSAN RICE, U.S. AMBASSADOR TO UNITED NATIONS: I was very careful to explain that the information was preliminary and it could change and yet I think it was misconstrued and contorted into something more nefarious that was never indeed the case nor my intention.

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LEMON: Well, the backlash against Rice only grew after she met with concerned lawmakers behind closed doors. The odds of a confirmation had grown so bleak the White House never went through a formal nomination.

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BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I hadn't made a decision about who would be my next Secretary of State. There's no doubt that Susan was qualified. There are other people who are qualified as well.

Her interest isn't serving me, but most importantly serving the country. She has done an outstanding job. I could not be prouder with her. She will continue to be one of the top members of the national security team.

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LEMON: So who is on the short list to replace Secretary of State Hillary Clinton? Foreign affairs correspondent, Jill Dougherty, is at the State Department. Good morning, Jill.

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Hi, Don. Well, of course, that name is John Kerry, Senator John Kerry, a heavyweight in foreign policy as we all know. And in fact, in a way it's funny that he kind of looks like a Secretary of State with that gray hair.

He is very tall, distinguished but more seriously, he does know the issues. He's been involved in these issues -- world issues for a long time. He's kind of a surrogate for the administration, including being kind of an unofficial envoy on Afghanistan and Pakistan.

And the ties to Mr. Obama go way back. You could say go back to the 2004 election when Senator Kerry put Barack Obama on the map by giving him a chance to speak at the convention. So that's one factor forward.

But I think you would say, Don, that he's a very likely candidate and very importantly nobody thinks that he's going to have any trouble sailing through in the Senate.

LEMON: Yes, and after all, John McCain did say -- did call him and jokingly he said, Mr. Secretary, when they were in the middle of a press conference recently. So he -- chances are that he may -- he may go through without any problem.

DOUGHERTY: Yes. Although, ironically, remember back, speaking of 2004 when he was, quote, "swift-boated" by Republicans who were criticizing him for his military record, et cetera. So that's one factor. But now it's pretty much a love fest and he looks like he really would be the candidate. No question.

LEMON: Well, Jill, you know this. Washington is like the weather. They say if you don't like it, stick around. It will change. So you're right about that. Thank you very much, Jill Dougherty.

Now to the ongoing debate over the fiscal cliff, 18 days to go and still no deal and now the debt ceiling is in the mix here. The White House wants President Obama to get power to raise that ceiling without Congress as part of the deal. But House Speaker John Boehner says no way.

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REP. JOHN BOEHNER (R-OH), HOUSE SPEAKER: Do you think that Senator Reid or then Senator Obama would have ever given to President George W. Bush the unlimited ability to raise the debt limit? I know they are talking about doing it now. Do you think there's any chance that then Senator Reid or Obama would have done that? Zero. Congress is never going to give up our ability to control the purse.

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LEMON: Well, meanwhile, President Obama is holding firm on his plans to keep middle class tax rates steady.

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OBAMA: The most important thing we can do right now is make sure that middle class taxes don't go up. It's the best thing for the economy, best thing for American families, and if we do that, Senate has already passed this bill.

House Democrats are ready to pass it. I'm ready to sign it. The only holdouts right now are the House Republicans. If we get that done, that will take the edge off things.

We'll still have to deal with some deficit and debt problems, but it means 98 percent of Americans, 97 percent of small businesses will not see their taxes go up. We should get that done.

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LEMON: Well, the House is scheduled to go home for the year today, but House Majority Leader Eric Cantor said members could keep on working with the fiscal cliff still unresolved.

Now there's following concerns over Syria and a desperate regime trying to hold on to power. This morning, Washington announced it is deploying two patriot missile batteries and 400 troops to our NATO ally, Turkey. The move will bolster defenses against neighboring Syria and its arsenal of scud missiles and possible chemical weapons.

(BEGIN VIDEO CLIP) LEON PANETTA, U.S. DEFENSE SECRETARY: This is a challenging time. It's a challenging time. It's a critical time. We just announced this morning that we are deploying two Patriot batteries here to Turkey along with the troops that are necessary to man those batteries so that we can help Turkey have the kind of missile defense it may very well need in dealing with threats that come out of Syria.

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LEMON: Let's go to Beirut now. CNN's Nick Paton Walsh is following the latest developments for us. Nick, what do you know?

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT: We don't exactly know where these troops are going to be placed on the Turkish side of the border or exactly how long they will stay. But it's pretty likely they will be in placed within the next few weeks into early next year.

We know that Germany is also going to contribute about the same number of batteries and troops and the Netherlands are onset to ratify their deployments as well. So you're going to see a substantial presence there over NATO troops and U.S. soldiers.

This is an incredibly volatile area. Remember, this all started because about two months ago there were exchanges of fire between the Turkish and Syrian Army often begun by Syrian military hitting villages on the Turkish side of the border.

That prompted this request to help from NATO and now they got what they asked for. We're also hearing, of course, from Secretary of Defense Leon Panetta that there is a U.S. plan to respond in the event that the Assad regime uses chemical weapons.

Many concerns are as they get towards the end game here they may use nasty things in their arsenal. NATO are very clear that purely they are for defensive purpose. But really we're seeing an escalation now.

The U.S. keeping out pre-election now moving further recognizing the opposition and now contributing military means to the area. Certainly tensions are even higher on that border -- Don.

LEMON: Nick Paton Walsh in Beirut. Thank you, Nick.

Other stories were watching here on CNN for you this morning, President Barack Obama speaking out about recreational marijuana use. In an interview with Barbara Walters, the president said the U.S. government has, quote, "bigger fish to fry than going after users."

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OBAMA: You know, the federal government has a lot to do when it comes to criminal prosecutions. It does not make sense from a prioritization point of view for us to focus on recreational drug users in a state that has already said that under state law that's legal.

(END VIDEO CLIP) LEMON: This is the first time the president has spoken on the issue since Colorado and Washington legalized recreational use of marijuana.

The U.S. Geological Service says a pair of earthquakes measuring 6.4 and 6.1 in magnitude struck off Baja, California, earlier this morning. They were followed by several smaller aftershocks. No tsunami warning has been issued and no damage has been reported.

And if you're flying anywhere for the holiday this year, you better hope you got your Christmas bonus early. According to a survey from the web site, "Travelocity," fares are up to an average of $414 for a round trip ticket. Yes, it's true. They are expensive lately. That's up 9 percent from last year.

A Marine is denied the prestigious Medal of Honor after he paid the ultimate price, fighting for his country. We'll have his story next.

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LEMON: Want to check your top stories right now on CNN. The U.N. nuclear watch chief says his group and Iran could reach agreement on a key deal next month. The agreement would allow inspectors access to a military complex where the west suspects Iran is testing nuclear materials.

North Korea holds a huge celebration in honor of its rocket launch this week that put a satellite into orbit. A special broadcast on state run TV showed crowds clapping and cheering as officials made congratulatory speeches. The success of the mission is up for debate. The U.S. believes that North Korea may not have full control of the satellite.

Do you know this man? Take a good look. Do you know this man? If so, your information could be worth $5,000. The FBI is hoping the reward will lead to the arrest of a robber who has hit 13 banks from Virginia all the way to California. He is being called the ray bandit because of his sunglasses and differing disguises.

And the mall in Oregon where the shooting rampage took place will reopen in just a few hours. It's been a crime scene since Tuesday when police say a man shot and killed two people in a rampage and then killed himself. Several mall workers say they are hesitant about returning to the mall.

An update to controversial story we told you about yesterday, a Marine who died while fighting in Fallujah, Iraq and how the Defense Department is refusing to give him the Medal of Honor.

We're talking about Sergeant Rafael Peralta. The Marines and fellow soldiers say he deserves to be honored because he sacrificed his life to protect others.

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CPL. TJ KAEMMERER, WITNESSED INCIDENT: One of the insurgents threw a grenade into room where Sgt. Peralta was lying and that's when he pulled it under himself and saved pretty much everyone in the room. Myself and other Marines in the house all owe him our lives.

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LEMON: But Secretary Leon Panetta says there's too much conflicting evidence. A medical examiner's report claims Peralta may have been brain dead before he fell on the grenade.

And other evidence suggests the grenade didn't explode underneath him. George Sabga is the spokesman for the family of Sergeant Peralta and he joins me now. George, thank you. Good morning to you.

GEORGE SABGA, SPOKESMAN FOR SGT. RAFAEL PERALTA'S FAMILY: Thank you very much for having me on.

LEMON: Let me read a response to you from Secretary Panetta. It said in light of the strict standards that have been established for awarding the Medal of Honor, I cannot in good conscience change the recommendation of Secretary Robert Gates. How does the family feel about this?

SABGA: The family is very upset because the family believes the Marines that were there, the ones that were actually inside the house on that day, November 15th, 2004. And forensic evidence and second guessing will never change their views on what happened that day.

LEMON: This is a second time that Peralta has been denied the Medal of Honor. Will the family push for another look at the case?

SABGA: Yes, we, Marines believe in honor. We will never give up the fight for Sgt. Peralta. As long as there is a Marine Corps, there will be a Marine fighting for Sergeant Peralta and right now, Congressman Duncan Hunter, a former Marine is the one that's leading the fight for him.

LEMON: Do you think it's important that the Defense Department is trying to uphold a standard for the Medal of Honor?

SABGA: The Department of Defense always says that the standard has never changed. They are absolutely right about that, but what has changed is the procedures to get to that standard. In World War II, it took months. Today, it takes years to award a Medal of Honor.

LEMON: Four of the witnesses apparently give a mostly consistent account of what happened. So why do you think a medical examiner's report is given so much weight?

SABGA: The medal examiner, when he gave that report, he didn't have the benefit of Sergeant Peralta's body. He gave a report based on combat information. During that battle of Fallujah, the battle was still going on.

He rendered an opinion with incomplete information and that's why we believe that the video that was shot that day is compelling evidence that Sergeant Peralta rates medal.

LEMON: Well, Sergeant Peralta as you know was honored with a Navy Cross. Not enough though, you believe?

SABGA: The Navy Cross, if he doesn't rate the Medal of Honor, in reality, Sergeant Peralta does not deserve the Navy Cross. What it seems like is the uniform services recognized him with the top award that they could, which was the Navy Cross. However, to civilians and the Department of Defense did not approve a Medal of Honor.

LEMON: Thank you very much for your time, sir. We appreciate you joining us.

SABGA: Thank you for having me.

LEMON: Yes, thank you.

In other news now, floods, fire, and a massive drought, the effects of climate change or something more, is it more significant? Why some say this year's wild weather could have biblical implications.

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LEMON: OK, that was the classic film "2012." It's full of death- defying escapes, collapsing building and the earth disappearing literally beneath the actors' feet. It's Hollywood's take on the apocalypse, but there are some who say the end of days may be less about special effects and more about extreme weather like Superstorm Sandy or the recent drought that plagued the Midwest and southeast.

Joining me now is Robert Jones. He is the CEO and founder of the Public Religion Research Institute. You saw all of those special effects there and that's what they think it's going to be like.

Robert, your organization recently issued a survey that shows more than a third of Americans think those recent natural disasters are evidence of what the bible calls end times. Explain the connection for us.

ROBERT JONES, CEO AND FOUNDER, PUBLIC RELIGION RESEARCH INSTITUTE: Well, you're exactly right. It was perhaps one of the most surprising findings in our recent study that more than one-third, 36 percent believed that the increasing severity of storms in the last few years such as Superstorm Sandy really is evidence of the end times.

That is the beginning of the end of the world as we know it. That's more than 85 million Americans. Among this group, one really stands out. That is white Evangelical Protestants. Nearly two-thirds of white Evangelical Protestants believe this actually majority and also minority of Protestants so it's far from being a fringe belief in America.

LEMON: Has there been any shift in attitudes that is, do more Americans believe in a biblical explanation of our weather rather than just global warming, something that we can fix? Do they think it a biblical explanation?

JONES: Yes, well, we asked this question separately because they told us whether it was a result of climate change and a result of the end times and we did see that six in ten Americans say that it's a result of climate change.

So we have most Americans on that side. Again, the significant minority here and the real question is how much does it matter in term of what government action wants to do and it turns out that it matters.

The perception of the facts matters the most. So those who don't believe that storms are getting more severe, just the fact of that are twice as likely to say that the government should do more to address climate change.

But among those who say that it's a sign of the end times, they are evenly divided on whether or not the government should do something to address this compared to more than two-thirds of those who say it's not a sign of the end times.

LEMON: OK, Evangelicals, there seems to be a split in the religious community because they say weather shifts are biblical while mainline Protestants and Catholics they cite climate change.

JONES: Yes, that's right. There really is a divide here and you can see this in the electoral results as well. White Evangelicals really do stand out as very different than Catholics as you can see in the data here as having the biblical world view that God is control of all of the events in the world and God is in control of the weather and they have theological significance for them in ways that they don't even for other religious Americans.

LEMON: OK, so we were talking about the different between climate change and whether it's biblical but some people view climate change as biblical. Are the two mutually exclusive?

JONES: You know, they are not. This is also an interesting thing of the survey, is that we had about a fifth of Evangelicals who will claim both, that the severity of storms is due to climate change and it's also due to being in the biblical end time. These are not mutually exclusive answers where they can say, maybe God is using the severity of times as a means to getting to the end of times.

LEMON: OK, Robert Jones with the Public Religion Research Institute. Thank you very much.

Up next, a powerful statistic you may not know.

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UNIDENTIFIED MALE: I lost my dad and uncle to drug abuse.

UNIDENTIFIED FEMALE: I lost both my uncle and my cousin after two years of prescription drug abuse.

UNIDENTIFIED MALE: After family.

UNIDENTIFIED MALE: I lost both my mother and my grandmother to OxyContin.

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LEMON: Prescription drug abuse leaving thousands of children without families. Dr. Sanjay Gupta has the story, next.

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LEMON: Good morning, everyone. I'm Don Lemon. Stories we're watching right now in the NEWSROOM, the U.S. is showing its support for Turkey in the face of potential threats from Syria. U.S. military will deploy two patriot missile batteries and 400 troops to Turkey in the coming weeks and says the missiles are to be used just for defense.

The Twinkie and other Hostess brand treats could be back in your lunch bag. "Bloomberg News" reports Wal-Mart and Kroger are among the bidders for the iconic brand. But the company has declined to comment. Hostess began to wind down its operation last month after failing to resolve a contract dispute with its bakers union.

We're waiting on word, the next round of fiscal cliff negotiations, the president and the House speaker met for just under an hour at the White House late yesterday afternoon. Aides for both described the session as frank with lines of communications staying open.