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Wolf

Trump Threatens North Korea, Thanks Putin for Kicking Out Diplomatic Staff; Trump Says "Ask Me Later" to "Should McConnell Step Down"; Trump's Ex Campaign Chief Hires New Legal Team after FBI Raid; Aired 1:30-2p ET

Aired August 11, 2017 - 13:30   ET

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

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[13:30:56] WOLF BLITZER, CNN HOST: Returning now to our top story, escalation in the war of words between President Trump and North Korea.

Let's bring in Democratic Congressman Ted Deutsche, of Florida, a member of the House Foreign Affairs Committee.

Congressman, the president today escalated that rhetoric, the standoff with North Korea, by saying military solutions are now fully in place, locked and loaded, should North Korea act unwisely. His words. What kind of message is this strong language sending? Not only North Korea, but also to U.S. allies in the region?

REP. TED DEUTSCHE, (D), FLORIDA: Wolf, I think strong language is appropriate. I think dangerous rhetoric, however, is not. When you think about what we need with North Korea, we need diplomacy. We need to show strength, and we need to have pressure. And when the president speaks the way he does in uncertain terms, let's remember, when he talks about, about the possibility of launching a premeditated strike in response to threats from North Korea, that makes it harder for those on his team who are actually doing a good job in advancing our interests at the U.N., where the sanctions resolution, for the first time, really is going to move forward in a strong, powerful way. This makes it really more difficult for the overall effort to succeed. And it leads to the possibility of miscalculation. Nobody believes that the United States should launch a preemptive nuclear strike. Everyone understands what North Korea is capable of now. The goal ought to be to work to lead our allies in one effort throughout the entire administration, to help contain North Korea.

BLITZER: Let me get your thoughts on a very sensitive issue. And you're on the House Foreign Affairs Committee. Listen to what the president said yesterday when asked about Russia's decision to expel hundreds of American diplomats from the U.S. embassy in Moscow and other U.S. consulates around the country. Listen to this.

(BEGIN VIDEO CLIP)

DONLD TRUMP, PRESIDENT OF THE UNITED STATES: No. I want to thank him because we're trying to cut down on payroll. And as far as I'm concerned, I'm very thankful that he let go of a large number of people, because now we have a smaller payroll. There's no real reason for them to go back. So I greatly appreciate the fact that they've been able to cut our payroll for the United States. We'll save a lot of money.

(END VIDEO CLIP)

BLITZER: All right. So what was your reaction when you heard that?

DEUTSCHE: Well, Wolf, that's astounding coming from the president of United States. But, unfortunately, it's not surprising. Think about what the president did. This, he responded to actions taken by Vladimir Putin in responsible to sanctions that the United States imposed on Russia, because Russia meddled in our election. That response by Russia was to ban 755 U.S. diplomats and the president thanked him for it. It's wholly unacceptable. But unfortunately, Wolf, consistent. This is the president who doesn't value diplomacy. Who wants to cut the State Department budget by a third and hasn't even filled the key roles involving diplomatic security. It's appalling. The president ought to be standing up for the men and women who are serving our country in a different way, in the diplomatic corps, in a very importantly, especially in Russia. Instead, he casts them aside at the same time that he yet again thanks and praises Vladimir Putin. It's really shocking.

BLITZER: Some suggested he was being sarcastic in that statement. You don't buy that?

DEUTSCHE: I don't believe that we should -- first of all, there's no room for sarcasm there. I don't think we should have to try to interpret whether or not the president was being serious when the president was speaking about the decision by Vladimir Putin to -- to ban over 750 United States diplomats. There is only one correct response from the president of the United States, and that is to make clear that this is unacceptable, and to stand up strongly for those diplomats and for our role in the world, and to push back against Vladimir Putin. The president, unfortunately, again and again and again seems wholly unwilling and unable to take even that basic step.

[13:35:17] BLITZER: Congressman Ted Deutsche, of Florida. Thanks for joining us.

DEUTSCHE: Thanks, Wolf. Appreciate it.

BLITZER: Coming up, while President Trump is seemingly giving Russia's Vladimir Putin another pass, he's now talking tough about the Senate majority leader, Mitch McConnell, telling him to go to work. What's behind he's latest attacks on the Republican leader in the U.S. Senate? We'll discuss that and more when we come back.

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[13:40:00] BLITZER: Later today, President Trump is scheduled to meet behind-closed-doors with U.N. Ambassador Nikki Haley as well as Secretary of State Rex Tillerson. We're told the national security advisor, General H.R. McMaster, will be there as well. It's unclear whether or not the president will speak to reporters afterwards. Yesterday, he, indeed, did. The president might be able to answer reporters' questions once again. We'll have coverage of that certainly in "THE SITUATION ROOM" later today.

Meantime, he's spoken extensively about the escalating attacks on Republican -- the Republican leader in the U.S. Senate -- that's Senate majority leader, Mitch McConnell -- refusing to say whether Senate McConnell should step down as Senate majority leader pointedly.

(BEGIN VIDEO CLIP)

TRUMP: I said, Mitch, get to work and let's get it done. They should have had this last one done. They lost by one vote. For a thing like that to happen is a disgrace. And frankly, it shouldn't have happened. That I can tell you. It shouldn't have happened.

UNIDENTIFIED REPORTER: (INAUDIBLE) -- down authority, some conservative analysts, including Sean Hannity, saying -- (INAUDIBLE).

TRUMP: Tell you what, if he doesn't get repeal and replace done, and if he doesn't get taxes done, meaning consults and reform, and if he doesn't get a very easy one to get done, infrastructure, he doesn't get them done, then you can ask me that question.

(END VIDEO CLIP)

BLITZER: All right. Let's bring in our CNN political analyst and washington bureau chief for "The Daily Beast," Jackie Kucinich. CNN Political Director David Chalian and CNN chief political analyst, Gloria Borger.

Strong words, once again. Another day involves the Republican leader in the Senate.

GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: Yes. It's a little odd. Because it's exactly the way he went after Jeff Sessions. Jeff Sessions, of course, has his job. General Kelly assured him of that. But the way he talks about McConnell in the Senate is what's most interesting to me. Senate Republicans are "they." Mitch McConnell is as if he is to blame for the failure in the Senate. Senate Republicans to blame for the failure in the Senate. This is a president distancing himself from failure, as if -- as if, Wolf -- he had nothing to do with the process of trying to get health care reform passed. I understand why he's upset. For seven years, they voted on this, and it was a ruse. Right? It worked for them politically but didn't have a serious agreement on what to do. I understand his point there. But he is a part of this process. And if he had run with a plan, specifically on repealing and replacing, and what he would have done, maybe they wouldn't be in a position they're in right now.

BLITZER: And in slamming Mitch McConnell, he's deeply irritating a whole bunch of other Republican Senators, including Cornyn, Hatch, a lot of others.

DAVID CHALIAN, CNN POLITICAL DIRECTOR: You're seeing Senators come to Mitch McConnell's defense. Not taking on the president for slamming Mitch McConnell, not going quite that far, but standing up for McConnell, have confidence in McConnell's leadership. The question now is -- you see that Mitch McConnell is trying not to take the bait at all. You see Trump over several days now continuing to hammer him. The question now is, how does this impact the agenda when they get back in jeopardy how is this new relationship that seems so strained at this point moving forward? I don't think -- Mitch McConnell may not want to take the debate publicly. Seems this will have some sort of impact in the way in which things work through the United States Senate.

BLITZER: And it's part of a bigger process. And, Jackie, you can talk about the battle that's going on between so-called establishment Republicans versus more hard-liners.

JACKIE KUCINICH, CNN POLITICAL ANALYST: Absolutely. This does have -- there's two sets of risks here. There's low risk for Donald Trump to attack Mitch McConnell. Particularly among his base. His base doesn't like Mitch McConnell. That said, his base does like Jeff Sessions, who he has been going after. And I would be very surprised if Senators who are inclined to agree with Trump are kind of keeping an eye on what's going on with Jeff Sessions. This is someone extremely loyal to this president. Who got behind him when no one else would and he has effectively turned his back on Jeff Sessions and attacked him. That doesn't inspire loyalty. That doesn't inspire some of these Senators that might be taking a tough vote for this president to do so.

BLITZER: And you spent a lot of time studying Donald Trump as a businessman, as a candidate, now as president. Why does he do this?

BORGER: It's the way he's done business for the last decade. 30 years or more. What he does is, he decides who he doesn't like. He goes after them. He bullies them. And then expects them to come back to him with a deal that he does like. And you can't do that with North Korea. And you cannot do that with Mitch McConnell. And you can't do it with Jeff Sessions. You're running the government now, not the Trump Organization. And I think he's also used to having people do exactly what he wants them to do, in the end. That's the way it's worked out for him very much in the past, and that's not the way it's working out for him now.

[13:45:19] CHALIAN: I think the real danger here is -- and I totally agree with Jackie -- we've talked about this in the sense that it's easy in the politics of the blame game. Trump wins that versus McConnell. There's no doubt about that. He wins with his base. An easy attack. Congress, less popular than they. Republicans frustrated Republican leaders aren't getting stuff done. Donald Trump seems publicly to think he's free of all blame here. This numbers are low in part because nothing's getting done also in terms of big legislative accomplishments. He needs a w on the board as well. He can hammer McConnell all he wants. His ultimate success is based on Mitch McConnell.

BLITZER: Thanks, Gloria, David and Jackie. Appreciate it very much.

Coming up, the president's former campaign chairman is beefing up his legal team, just days after we're learning about an FBI raid on his home and a report his son-in-law met with federal investigators. New information coming in.

We'll be right back.

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[13:50:48] BLITZER: The special counsel investigation into possible collusion between the Trump campaign and Russia appears to be taking a much closer look at Paul Manafort, President Trump's former campaign chairman. Sources tell CNN that federal investigators met with and requested documents from at least one member of Manafort's family more than two months ago. That means the meeting happened before FBI agents raided Manafort's home in late July.

Let's bring in our crime and justice reporter, Shimon Prokupecz, to help break this story for us.

Shimon, what else can you tell us?

SHIMON PROKUPECZ, CNN CRIME & JUSTICE REPORTER: This meeting, we're told, took place about two months ago or so in New York with federal investigators and prosecutors. And it was really a sense that we have gotten from the folks we've talked to that to try and gain his cooperation, to try and talk to him about some of his real estate dealings that he has had with Paul Manafort.

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BLITZER: This was the son-in-law?

PROKUPECZ: This is the son-in-law. Our understanding is they're estranged now. There's some family tension, so they're not really communicating anymore. But at the time, federal prosecutors felt it was important to at least bring him in. He agreed to come in. They spoke to him. He turned over documents, other information that they have now turned over to the special counsel's office. And our sense has been that this is all part of a bigger plan to try and get some cooperation against Paul Manafort and perhaps even to gain some cooperation, by now, the special counsel, for him to gain cooperation from Paul Manafort.

BLITZER: Clearly, they're squeezing him in all sorts of ways.

PROKUPECZ: That's exactly right.

BLITZER: Shimon, thanks very much.

Let's get some analysis and reaction to this late reporting. Joining us, our legal analyst and former federal prosecutor, Paul Callan.

Paul, CNN's reporting, you heard that Paul Manafort's son-in-law was questioned by FBI agents and prosecutors. What do you make of that?

PAUL CALLAN, CNN LEGAL ANALYST: Well, I'm not at all surprised. There have been reports that there were land deals that the son-in-law was involved in, in California, and possibly other places, and possibly in partnership with Manafort himself. One of those was under prior investigation. There was a bankruptcy involved. So, the feds had reason to be looking at these land deals. And frankly, if they have leverage against the son-in-law, evidence of something they can use against him, they could use that to sort of compel him to give information about Paul Manafort. And it's kind of a standard tactic in federal investigations. They use one family member against another, sometimes to get leverage to get cooperation.

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CALLAN: So that could be going on. We don't know, but that could be going on.

BLITZER: The president reacted yesterday to the special counsel's pre-dawn raid by FBI agents at Manafort's home outside of washington, D.C. Listen to how the president reacted.

(BEGIN VIDEO CLIP)

TRUMP: I thought it was a very, very strong signal or whatever. I know Mr. Manafort -- I haven't spoken to him in a long time, but I know him. He was with the campaign, as you know, for a very short period of time, relatively short period of time. But I've always known him to be a good man. I thought it was a very, you know -- they do that very seldom, so I was surprised to see it.

(END VIDEO CLIP)

BLITZER: What did you think of that reaction?

CALLAN: Well, I'm surprised that the president sort of publicly reacted to this, because he, in the past, has said, go ahead with any investigation of my people who are affiliated with my campaign. And obviously, Manafort had been campaign chairman for a brief period of time. But the president is correct that this was a tough, aggressive maneuver by the FBI and the special counsel. I mean, this was a pre- dawn raid of Paul Manafort. And bear in mind, Manafort had been cooperative with congressional committees in supplying documents that had been subpoenaed.

Manafort is represented by counsel. As a matter of fact, he's just changed lawyers, but he had a lawyer, and normally you deal through the lawyer. Unless you were afraid that maybe evidence would be destroyed or that Manafort was holding back documents, in which case you get a warrant from a federal judge for a pre-dawn raid. And that's what the FBI did.

BLITZER: And the federal judge had to see what's called probable cause to go ahead and issue that warrant. Probable cause, that's like the same standard that a grand jury would need to indict, right?

[13:55:10] CALLAN: Yes, it is. And what I found, Wolf, to be very interesting about that is that probable cause for a raid, pursuant to a search warrant, requires probable cause that a crime has been committed and that evidence relevant to that crime is in the place you are searching. So, this federal judge found, obviously, that there's probable cause that a crime involving material in Paul Manafort's house exists. Now, that's a -- that's a pretty big and important finding, I think, in this investigation.

BLITZER: Very big, very important. And we'll continue to watch it.

Paul Callan, thanks very much for all of help.

That's it for me. Thanks very much for watching. I'll be back 5:00 p.m. Eastern in "THE SITUATION ROOM."

In the meantime, the news continues right after a quick break.

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[14:00:10] BROOKE BALDWIN, CNN ANCHOR: Hi, there. I'm Brooke Baldwin. You're watching CNN. Thank you for being with me.

First, this promise of "fire and fury" --