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Trump Invokes Ronald Reagan; Health Officials Say River Water is Safe; Deflategate Heads to Court. Aired 10:30-11a ET

Aired August 12, 2015 - 10:30   ET

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

[10:29:50] CAROL COSTELLO, CNN ANCHOR: And good morning. I'm Carol Costello. Thank you so much for joining me.

Donald Trump continues to surge, leading now in Iowa and in New Hampshire and loving every single moment.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENTIAL CANDIDATE: So now let's say it's President Trump. Ladies and gentlemen, president of the United States, Donald J. Trump.

(END VIDEO CLIP)

COSTELLO: Although Trump's methods are unorthodox, there is one Trump tactic we've heard a million times before -- talking about Ronald Reagan.

(BEGIN VIDEO CLIP)

TRUMP: It's sort of easy to explain -- now, one of the things I always start with, Ronald Reagan was a Democrat and he was sort of liberal. And I knew him. I didn't know him then quite but I knew him. And I knew him well. He liked me, I liked him. He was like this great guy.

And he was a Democrat with a liberal bent and he became a great conservative, in my opinion.

SEAN HANNITY, FOX NEWS HOST: One of the greatest presidents.

TRUMP: By the way some -- and a great president. And a great leader. He had something very special. But if you think of it, he was a little bit less conservative actually than people think.

HANNITY: When he was a governor -- sure.

TRUMP: He had a great heart. And I have a great heart.

(END VIDEO CLIP)

COSTELLO: All right. With me now, a man who actually did know Ronald Reagan, Arthur Laffer who served as Reagan's economic adviser. Welcome back. ARTHUR LAFFER, FORMER REAGAN ECONOMIC ADVISER: Thank you very

much, Carol. It's fun to be back. Are you going to be out there at the Reagan Library, by the way? At the debate.

COSTELLO: Oh, I wish. Can you talk to Jeff Zucker for me?

LAFFER: You should be.

COSTELLO: I should be. I know.

I just wonder, do you ever grow tired of candidates comparing themselves to Ronald Reagan?

LAFFER: I love it. I just love it. I just want to make sure they compare themselves to Ronald Reagan in the right way with his economic policies, low rate, broad base flat tax, spending restraint, sound money, free trade, minimal regulations. If they're like Ronald Reagan in those respects, I love, love, love them.

COSTELLO: Well, you've heard how Donald Trump described Ronald Reagan. He said he went from a liberal to a conservative. He was a great president. Did he describe him in the right way?

LAFFER: Yes, exactly. I mean Ronald Reagan was head of the SAG union that called the first industry-wide strike. He was a tax increaser in California. You know -- all of these things. And as time changed, Ronald Reagan evolved as a human into being the best president, I mean in my mind, ever except for maybe John F. Kennedy.

And Ronald Reagan did it as a human, changing his positions over time to reflect better policies. And that was really the genius of Ronald Reagan is that he was able to change. He wasn't stuck in one set.

COSTELLO: So was Ronald Reagan buds with Donald Trump?

LAFFER: I don't know if they were buds or not. I never saw Donald Trump in the circles I was in. But there were lots of other circles.

COSTELLO: You know, I just wonder about this. Ronald Reagan was elected president in 1980 which means that everybody who's 34 years old and younger was not born yet.

LAFFER: I know. It makes me so jealous. When you're sitting here at 75 years old, you wish you were back there in those days. But what can I say.

COSTELLO: I just wonder, you know, hearing that, does Ronald Reagan still resonate as strongly as he once did?

LAFFER: I don't know if he resonates as strongly as he once did but he resonates very strongly in Republican circles for sure. And I think also -- Carol, I think he resonates very well with the general electorate. I mean he really did do a good job. If you look at the 80s and 90s Ronald Reagan and Bill Clinton, that sort of sandwich, if you will, was a wonderful era of U.S. history with two very good presidents, in my mind. I voted for both Reagan and Clinton --

COSTELLO: Ok. So, is Donald Trump like Ronald Reagan?

LAFFER: I don't know if he's like Ronald Reagan. He's proposing some tax rate changes. He's got to go through all the economic issues. I hope he becomes like Ronald Reagan if he isn't already. But he could easily do a Ronald Reagan set of policies.

The one area I really worry about a lot of the Republican candidates is on free trade. Free trade is really important for the U.S. I mean, you know, NAFTA was initiated by Reagan and passed finally by Clinton. You know, we benefit greatly from foreigners. We produce some goods better than they do and they produce some better than we do. And we and they would be foolish in the extreme, Carol, if we didn't sell them those things we make better than they do and exchange for those they make better than we do. So it's a win-win for the whole world. So I really, really want to see trade as a big issue.

COSTELLO: Have you met with any of these Republican candidates to talk about Ronald Reagan's economic policies?

LAFFER: Yes. I've met with almost all -- I mean I don't know Trump or Santorum, to be honest with you but I think I met with every other one. And I've known some of them very, very well. Scott walker, Rick Perry, Ben Carson, I mean Jeb Bush -- I mean I've known them for a long time. I've met with all of them, Chris Christie and Lindsey Graham -- they're all pushing --

COSTELLO: Is anyone really jazzing you?

LAFFER: Well, you know, I'm really impressed by the credentials, by the qualifications of all of these candidates in the race, to be very honest. None of them have traits that would disqualify them from being president, in my view.

[10:35:12] COSTELLO: Even Donald Trump?

LAFFER: I don't think he's disqualified at present, no, I don't. I mean it depends on his policies. If he does the flat tax and spending restraint and sound money, free trade, minimal regulations, I think Donald Trump could be a good president. It's on the economics is where my field is, Carol, and all the other candidates are moving in the right direction, too.

I'm very pleased with the whole cast of Republican candidates. Now, they may not like each other and they do provide a great deal of entertainment, I have to admit. Some of the comments that they make that I would never, ever make and I don't believe either.

But, you know, economics is king. And it really is the key to the future of the U.S.

COSTELLO: OK. A final question and it's on the Democratic side. I just wonder how you feel about the self-professed socialist Democratic candidate Bernie Sanders' economic policies? LAFFER: He's very entertaining and he's a very likable man. I

can't agree with his policies at present at all. But you know, you can't sell these people short. People do change and I'm watching Bernie Sanders for changes in his message and what's going on.

You know, this competition is just wonderful for the country. And Bernie Sanders is saying something that I don't agree with but we'll watch and see if he doesn't morph more towards supply set economics and pro-growth economics.

COSTELLO: Somehow I don't think so.

LAFFER: I don't think so either, by the way. But you never know.

COSTELLO: Arthur -- thank you so much for coming back. I appreciate it.

LAFFER: Thank you -- Carol.

COSTELLO: Still to come in the NEWSROOM, it may look gross, but health officials say this water is perfectly safe.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

[10:41:13] UNIDENTIFIED MALE: It's been devastating. You know, this is the biggest single catastrophic event I've ever had in my administration.

(END VIDEO CLIP)

COSTELLO: Yes. But despite this ugly mustard color tinge, Colorado health officials say the water in this river is absolutely safe. Parts of the Animas River are getting the all-clear this morning. Preliminary tests show the water in Durango does not appear to pose any health risks. This, following last week's accidental spill of nearly three million gallons of toxic stuff.

Good news aside, toxicologists say they're not so optimistic, warning the long-term impacts could still be quite devastating.

Dan Simon is in Durango to explain it all. Good morning.

DAN SIMON, CNN CORRESPONDENT: Good morning, Carol. It's been a week since this spill occurred. And the passage of time has definitely improved things. You don't see that long yellow ribbon on the river. Things have basically returned to normal. I'm going to step out of frame here and you can see that it is a beautiful day here. The color of the river looks fine. But that doesn't mean, Carol, that the danger is over.

Some toxicologists worry that you have that metal in the water. They worry about the long-term impact. Obviously it's no secret that high exposure to things like lead and arsenic can cause major health problems, especially in children.

But I have to tell you that Colorado officials say at this point they are not seeing a public health threat. They've tested the water. They haven't seen any death to wildlife. So that is a good sign. But we should remind folks, that the river remains closed and folks who have private wells are urged not to drink the water coming out of those wells unless those wells are tested.

Still a lot of anger as well towards the EPA. The EPA says they're doing everything they can to fix this situation. The administrator, Gina McCarthy, she's coming out to this area today and I'm sure Carol, that she'll get an earful from residents. We'll send it back to you.

COSTELLO: So the EPA was at fault. Will the EPA fine itself?

SIMON: I'm not sure there's any mechanism to do that. I think the goal right now is just to get that area cleaned up as fast as they can. And try to mitigate any damage to the river. But obviously some people would like to see some legal action against the EPA. But I'm not sure how that could be accomplished -- Carol.

COSTELLO: You were lovely to answer that question, Dan. Thanks so much. Dan Simon -- reporting live for us.

Just ahead in the NEWSROOM, Deflategate heads to court. Can Tom Brady and Roger Goodell kiss and make up? We'll talk about that next.

(COMMERCIAL BREAK)

[10:48:21] COSTELLO: Deflategate is officially in overtime. New England Patriots quarterback Tom Brady and NFL commissioner, Roger Goodell are in Manhattan in a courtroom right now. There they are, getting out of their respective vehicles and going into the courtroom. The two are meeting behind closed doors with the judge who is presiding over the lawsuit recently filed by the NFL against the players' union.

So let's parse this out. Let's bring in sports anchor Rachel Nichols and sports and business attorney Seth Berenzweig. Welcome -- where's Seth? There you are. Welcome Seth.

SETH BERENZWEIG, SPORTS AND BUSINESS ATTORNEY: Good morning.

COSTELLO: Thanks for being here.

Rachel I do want to start with you. So what will go on in that courtroom today?

RACHEL NICHOLS, CNN SPORTS ANCHOR: Well, these are enforced settlement talks. The judge in this case is someone who one of his colleagues recently called the settlement judge. In fact in the short time this matter has been on his desk, he's issued three separate written orders urging these parties to settle.

Here's the problem, though, Carol. Tom Brady doesn't want to say that he did anything wrong and Roger Goodell wants to enforce the full penalty. He made that clear over the weekend at the Hall of Fame. So these two guys are as far apart as you can be and they're facing a judge who's basically going to tell them in court today, neither one of you is going to like it if this actually has to come to me to make a decision. So work it out, people.

We'll have to see if they make any progress today.

COSTELLO: Oh my goodness.

So Seth, you have two towering egos inside that courtroom and a judge saying, hey guys, come to some sort of agreement. How likely is that?

BERENZWEIG: It won't happen today. I'd be very surprised if it does because the latest word is that the league wants to have Brady agree to the Wells report. They're really concerned about that Wells report. That's an Achilles heel in this case. It's also at issue in a brand-new lawsuit that was filed in Miami federal court, filed by the offensive line coach of the Miami Dolphins who lost his job and is also trying to contest that.

[10:50:08] This case is on a rare path basically for principally two reasons. First as Rachel correctly said, this judge is pushing these parties together for settlement. He has a settlement conference happening in ten minutes. They're coming back next Wednesday. They both have to appear so they're trying to push the parties together to settle.

Judge Berman is also pushing the case forward in a very accelerated way. This case is done by Labor Day weekend. The whole case is finished, they will have a final answer. It's going to be a close call. It will be very interesting to see what happens next.

NICHOLS: From your lips that this case is done. It's been going on for more than 200 days -- Carol. And, yes, Judge Berman's ruling, if it comes to that, should be the final word. But there are even some legal options beyond there. There's appeals, there's defamation cases that could get filed. But we do hope that these settlement talks, whether it be this week, next week or a decision from Judge Berman could yield something to relieve our long national nightmare.

COSTELLO: I couldn't agree with you more. So who has the most to lose in this case, Seth?

BERENZWEIG: Well, I think right now the league has the most to lose because if they get blown up on the Wells report, it's going to have a cascading effect that really is going to have both the short- term and the long-term harm to the league.

I think that if you take a look at the briefs that were filed by both sides last Friday night, it really gives the impression that the NFL is basically trying to run a prevent defense, trying to grasp on and protect the commissioner's ruling.

But Brady continues to step up on the field and gain ground. He's got some good arguments. He's come from behind. He's able to attack the Wells report as being not objective and fair. It's going to be a very close call. But I think that he's really making some progress. And the players association is doing a great job aggressively briefing his arguments in this case.

COSTELLO: Rachel -- do you agree?

NICHOLS: I do think the NFL has a tremendous amount to lose. But so does Tom Brady. He's basically looking at his long-term legacy here. This isn't over a four-game suspension. If he sits out four games, certainly that would hurt him and hurt the Patriots' season. But that's not the big picture here why he's been fighting this so hard.

He's fighting this because he does not want the word "cheater" associated with him for the rest of his career. You're talking about a first ballot Hall of Famer here. He has a relatively spotless record going in. And he doesn't want something so major being associated with him. He's also being pushed by the NFL players association which is trying to take a major bite out of Roger Goodell's authority here.

So both sides have a lot to lose, both sides have a lot to gain. And they are very entrenched in their positions. So I'm curious to see what magic Judge Berman can pull out of his hat. He's known for settling extremely complex cases. But this is going to be a big one. And it's a very public one. And that's been a factor here as well.

COSTELLO: All right. Rachel Nichols and Seth Berenzweig -- thanks to both of you. I appreciate it.

Still to come in the NEWSROOM, the terrifying moment a diver comes within inches of a massive great white shark.

(COMMERCIAL BREAK)

[10:57:16] COSTELLO: Checking some top stories for you at 57 minutes past. For those of you ever wanting to swim in the ocean again, I will apologize now. This video shows what's believed to be the largest great white shark ever caught on camera. It was shot in 2013 off Guadalupe Island in Mexico by a shark researcher who just found it on his computer. The shark is deep blue, it's believed to be -- get this -- 20 feet long. Wow.

If you're looking for a place to stay during the Pope's visit to Philadelphia next month, look no further. The battleship New Jersey in Camden says it's got vacancies. It's charging 75 bucks for a bunk. Sleeping quarters are tight. Only about 20 inches between each bunk. But included in that nightly rate -- breakfast, dinner and a tour of the battleship and a ride in a flight simulator and then you get the Pope, too.

The National Zoo's giant panda is showing signs she's expecting. So is a new baby on the way? Is that what you call baby pandas? Anyway, Jeanne Moos has more.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT: America's most famous panda isn't eating much. She's not doing much of anything except sleeping, sleeping on her back, sleeping on her belly, yawning, scratching. What's up with Mei Xiang?

UNIDENTIFIED FEMALE: Well, she's definitely acting pregnant.

MOOS: Oh, boy. Or maybe it's a girl on the way at the Smithsonian National Zoo.

Is she or isn't she? Not even her zookeepers know for sure. She was artificially inseminated at the end of April and has been having lots of ultrasounds since. They put the wand on her belly while distracting her with treats. But lately, Mei Xiang isn't hungry and she's too tired to cooperate with ultrasounds that rarely spot a panda fetus because they're so tiny.

This could be what's called a pseudo-pregnancy, hormone levels and all the behavioral signs suggest a pregnancy when there isn't one.

UNIDENTIFIED FEMALE: We usually know that she's pregnant when she gives birth.

MOOS: You don't know until the cub pops out?

UNIDENTIFIED FEMALE: That's it.

MOOS: Here's Mei Xiang her last birth almost two years ago.

Now, if Mei Xiang has a cub, they're going to have to figure out who's the daddy. That's because two pandas contributed to her insemination -- a panda in China and Tian Tian, one who lives here at the National Zoo.

Is Tian Tian really as bad a lover as he's made out to be?

UNIDENTIFIED FEMALE: He's not bad. He's just inexperienced. This is what really fascinates me. If we have twins, there's a potential that twins could each have a different father.

MOOS: Next stop, the "Maury Povich Show". Zookeepers are watching to see if Mei Xiang prepares as she did last pregnancy, picking up objects to practice cuddling.

UNIDENTIFIED FEMALE: And my favorite thing is there's a drain cover. She picks it up and she cradles it to practice.

MOOS: And you can see how well all that practice paid off.

UNIDENTIFIED FEMALE: And there you go.

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

COSTELLO: Thank you so much for joining me today.

I'm Carol Costello.

"AT THIS HOUR" with Berman and Bolduan starts now.