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Selling the Stimulus and Making the Transition; White House Bound; Aid Blockade in Egypt; Tenth Deadly Day; Supporting Israel; Home Heating Bills; Barack Obama's Silence; Kiss My Foot

Aired January 05, 2009 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: And hello again, everyone. I'm Tony Harris in the CNN NEWSROOM. And here are the headlines from CNN for this Monday, the 5th day of January, 2009.
The president-elect meets with the House speaker and revs up his plan to revive the economy.

The Israeli push into Gaza intensifies today just as politicians prepare a fresh peace offensive.

Roland Burris heads to Washington to claim the open Illinois Senate seat, but Democratic leaders say he won't be sworn in.

Selling the stimulus and making the transition. Just 15 days before moving into the White House, President-elect Barack Obama is making the rounds on Capitol Hill today. He is pushing his economic recovery package. And the Obama family making the move from Chicago to Washington ahead of the January 20th inauguration.

Our correspondents covering the Obama economic plan in depth. Christine Romans of our money team, live from New York with the nuts and bolts of the plan. And Kate Bolduan live from Washington as the president-elect tries to sell the stimulus plan. Barack Obama meeting face to face with key lawmakers today.

Kate Bolduan, good to see you.

Kate, what can you tell us about those meetings?

KATE BOLDUAN, CNN CORRESPONDENT: Well, we really only, as you know, Tony, get to see the meet and greet.

HARRIS: That's right.

BOLDUAN: Obama saying that he wants to -- that he couldn't think of a better partner in rebuilding the economy here. He met first with House Speaker Nancy Pelosi a short time ago, and they allowed cameras in for the photo-op at the beginning of the meeting.

Listen here.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), PRESIDENT-ELECT OF THE UNITED STATES: We've got an extraordinary economic challenge ahead of us. We are expecting a sobering job report at the end of the week. The speaker and her staff have been extraordinarily helpful in working with our team so that we can shape an economic recovery and reinvestment plan that starts putting people back to work. And, you know, I can't think of a better partner in doing what is necessary to get this economy back on track than Speaker Nancy Pelosi, who has just been an extraordinary advocate for working people all her life.

(END VIDEO CLIP)

BOLDUAN: Now, Obama is also set to meet with Senate Majority Leader Harry Reid and take part in a bipartisan meeting with key lawmakers from both the House and the Senate. This all comes as he's trying to sell his plan, as you said, the details of which are beginning to emerge.

A transition aide confirms this morning that the president-elect is crafting a $300 billion tax cut to be included. Some say this is a nod to Republicans in Congress to try to win more support. The transition has been pushing back, saying they are guided by what works and not by any ideology or special interest.

And as we have been talking about, Tony, we are now confirming that the president-elect is planning for a speech on Thursday in Washington to lay out all of his economic principles to the public, which many will be watching closely.

HARRIS: We've been talking about this to-do list. It seems to get longer every day that we discuss it, Kate. Among them, cabinet positions to fill, some expected, some unexpected. And at the same time, the president-elect and his wife are moving the family to Washington, D.C., and getting the kids adjusted in their new school.

BOLDUAN: Yes, absolutely. There is a ton going on.

HARRIS: Yes.

BOLDUAN: Not only are they trying to finish up this transition to moving into the White House, but right now they are simply trying to move from Chicago to D.C.

HARRIS: That's right.

BOLDUAN: I doubt they even know what their address is at this point.

You're seeing some pictures right now of the Obama family getting ready for the girls' first day of school. They're starting at their new school here in Washington.

They are staying at the Hay-Adams Hotel right now because -- and then I think about the 15th is when they move within the security barrier, which is right near the White House. And they'll be moving in there after the inauguration. So a lot going on the professional, as well as the personal side, as I'm sure you can expect.

HARRIS: That's right. All right, Kate. Good to see you. BOLDUAN: Of course.

HARRIS: Kate Bolduan in Washington for us.

Kate, thank you.

The president-elect wants roughly $300 billion in tax cuts as part of his economic stimulus.

CNN's Christine Romans in New York to help us sort through this.

Christine, who would get a cut? And do we know how much at this point?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, a lot of people would get a cut. The people -- the middle class, who the president-elect had said on the campaign trail...

HARRIS: That's right. Yes.

ROMANS: ... that he wanted to give a tax cut to. They would get a cut.

Also, business would get a cut. And that's where the folks I'm talking to, Tony, say they are a little bit surprised, but they think that it might be a nod, as I think you put it, to the Republicans in Congress.

HARRIS: A buy-in. Earning a buy-in -- yes.

ROMANS: Yes, exactly. I mean, this is something that businesses had really wanted. They wanted something for them in here.

And a couple of people that I talked to say, look, I mean, if you've got businesses investing in hiring people, investing right in a downturn for the future, then that's going to help create jobs and get the economy moving. So let's take a look at what it looks like.

About $300 billion in tax cuts. This would be about 40 percent of the overall stimulus would be tax cuts. A $500 individual credit; a $1,000 family credit.

It's the kind of thing that a lot of people say they don't know what it's going to look like yet, but it's the kind of thing that could actually show up -- a tax credit could start showing up in your paycheck because something that you file your taxes in April of 2010, and you get relief, that doesn't necessarily help the economy right now; right?

HARRIS: Yes.

ROMANS: So that's what a lot of people are talking about.

And on the business side, it looks like write-offs for '08 and '09 losses, it looks like increasing the maximum small business write- off, reducing some tax bills and tax credits for new hires, and for foregoing layoffs all together. So that is the business part of it that a lot of people are digging into right now, trying to figure out what kind of businesses would be best benefit and how that could help the economy.

There have been some people who have been worried that infrastructure spending would take too long, that, you know, that just government spending, throwing more government spending out there, might not necessarily do everything you want.

HARRIS: Right. Right.

ROMANS: Now, I just talked to Dan Clipton (ph) from Strategus. He advises Wall Street on what Washington is doing. And he said, "Make no mistake, we're talking about tax cuts this year," he said, "but you're looking at a trillion-dollar budget deficit."

Tax hikes are something that have to come around the corner if you're going to get our budget back in line. So keep that in mind, folks. I mean, we're talking about tax cuts in the near term to try to boost the economy, but we still have some big, big issues that might mean higher taxes down the road.

HARRIS: That's right.

Hey, Christine, if we get time a little later, maybe we can talk about this Bernard Madoff hearing, congressional hearing today, and what we can learn about that scandal, if we get some time a little later.

ROMANS: Sure.

HARRIS: Appreciate it, Christine. Thank you.

The president-elect arrived in Washington after an emotional flight from Chicago.

Here's Senior White House Correspondent Ed Henry.

(BEGIN VIDEOTAPE)

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: President-elect Barack Obama wakes up here in Washington to a new headache, a shakeup in his cabinet after Bill Richardson pulled out of the running for the commerce secretary amid a grand jury probe that Obama aides feared would become a political distraction.

I was with the president-elect when he flew from Chicago to Washington, and it was really an emotional part of the transfer of power for him. It was a bitter cold day on the tarmac at Midway Airport, but he didn't seem to be in any rush to board that plane.

He was lingering with friends, hugging, saying good-bye. But then he looked up and saw that massive Air Force jet waiting for him with crewmembers that had "Air Force One" emblazoned on their jackets in script. It's not technically called Air Force One until he's actually president, but this was a dramatic reminder he is not flying commercial or charter jets anymore. He's finally just about two weeks from taking power.

And he finally ran up the steps of the plane and blurted to all of us reporters, "See you in D.C." But then he got on the plane, he came back to the press cabinet for a minute. He got emotional.

He told us about how he had walked through his empty Chicago home. His wife and daughters, of course, had already been in Washington. And he got choked up as he found a scrapbook.

OBAMA: Well, you know, what happened was Malia's friends had dropped off an album. The two of them together have been friends since preschool. And I just looked through the pages. The house was empty and...

HENRY: But the flight itself was pretty enjoyable for the president-elect. Aides say he ordered a cheeseburger and fries, something he can probably afford to do with all the working out he does. And then he watched a football game. A little downtime before he tackles some major challenges waiting for him.

Ed Henry, CNN, Washington.

(END VIDEOTAPE)

HARRIS: Bloodshed in Gaza. Outrage at its borders. Truckloads of vital aid hit a roadblock. We'll tell you why.

(COMMERCIAL BREAK)

HARRIS: All right. We are going to show you an iReport now from Alyson Cina.

Do we have that? Here we go.

Alyson says it seems like there were thousands of people at Saturday's demonstration. They marched from Times Square to the Israel Consulate on 42nd and 2nd. Alyson says she does not agree with Hamas and other such groups, but in her words, "The actions of a few do not justify Israel's harsh response."

It is now day 10 of Israel's assault on Gaza. Thousands of Israeli troops pushing deep into the Palestinian territory, essentially splitting it in two.

Meanwhile, Hamas still firing rockets into Israel. The death toll rising. More than 500 Palestinians killed, another 2,600 wounded so far, many of them children. On the Israeli side, five dead, including a soldier killed in combat.

Diplomatic efforts to end the conflict intensifying now. An EU delegation and the president of France in the region for talks with both Israelis and the Palestinians.

Tempers are certainly flaring at Egypt's border with Gaza. Trucks carrying desperately needed aid for the Palestinians are being delayed. We get details now from CNN's Karl Penhaul at the Rafah border crossing in Egypt.

(BEGIN VIDEOTAPE)

KARL PENHAUL, CNN CORRESPONDENT (voice-over): Aid workers and truck drivers chant in solidarity for the Palestinians. The gates are firmly shut at Egypt's border with Gaza. All are calling to get through. Some are vowing to join the fight against Israelis.

At least 30 trucks of vital medical aid were blocked at the Rafah crossing Sunday. Meanwhile, just yards away in Gaza, the casualties were mounting as Israel pressed ahead with its ground assaults.

KONSTANZ CONTANTINIDIS, "DOCTORS FOR PEACE": Well, we have angriness, let's say, and we fee feel very disappointed because we came here from Greece.

PENHAUL: The Egyptian government has condemned the Israeli assault, but it is no friend of Hamas and insists the border cannot be fully opened without the presence of the European Union monitors. The crossing has been opened for a few hours on some days to allow aid in and wounded Palestinians out, but Egyptian authorities kept it shut Sunday because Palestinian border guards had fled in the face of the Israeli advance.

Jalil al-Nish (ph) works for a U.K. charity. He says the Gazans cannot wait.

UNIDENTIFIED MALE: And the situation on the ground is a disaster. They hit everywhere, they target everywhere. If there is any fire from anywhere, they don't care. If there's children or families or anything, they hit back.

PENHAUL: Keeping out of the chaos, Palestinian Antar Mahmood waits and worries. He is loaded with all the food and cooking oil he can carry for relatives trapped across in Gaza. He says his brother's house was flattened on the first night of the Israeli ground assault.

"I just called home and asked, 'What happened?' And they said, 'Your son Mohammed has been wounded. He's alive, but he's wounded,' " he says. He's so close, but so far.

The border crossing is some 300 yards wide, but you have to go through three checkpoints, two Egyptian and one Palestinian.

(END VIDEOTAPE)

HARRIS: And our Karl Penhaul joins us now from the Rafah border crossing.

Karl, a couple of questions for you.

First of all, are the Egyptian aid shipments being blocked, being held up in coordination with the IDF? PENHAUL: There's no suggestion on this side, Tony, that there's any coordination with the Israeli Defense Forces, certainly not officially, at least. If you talk to people on the street, though, there is a great deal of suspicion as to the way the Egyptian government has behaved with the Israelis because, just remember, it was Hosni Mubarak, the president of Egypt, who hosted Foreign Minister from Israel Tzipi Livni just two days before those airstrikes began. And so on the street, there's a lot of people that believe that there is some kind of back-door deal, some kind of collusion between Egypt and Israel -- Tony.

HARRIS: OK. So let me just drill down a little further on that point. So what is the official sort of party line from the Egyptians as to why the aid shipments aren't being allowed in?

PENHAUL: Well, certainly yesterday, the official line was that the Palestinian border guards had fled in the face of the Israeli advance. Unsurprising, as you might imagine. And the other line is the reason why this border cannot be formally and fully opened is because, under a deal, then there has to be agreement both between Hamas and their rival faction, Fatah, as well as the presence of European Union monitors before that border could open.

But there was a glimmer of hope today. That border did open for a very brief period to allow a handful of wounded to be brought across from Gaza, and they've now headed into Egypt for treatment. But no sign that that border will be open for anything but a few moments or a few hours each day going forward -- Tony.

HARRIS: Our Karl Penhaul at the Rafah border crossing there in Egypt.

Karl, appreciate it. Thank you.

And for extensive coverage of the Mideast crisis, be sure to watch "ANDERSON COOPER 360." He is reporting live from Israel tonight, 10:00 Eastern, right here on CNN.

Roland Burris says he is the new senator from Illinois. But is he?

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DON LEMON, CNN ANCHOR: You know the law very well. Very well, sir. How far do you plan to take this? And do you see any -- is there any point or anywhere in the law that you see that you cannot be appointed? Do you plan to take this to the very end, and do you see that this legally possible for you to, in fact, become the senator of Illinois?

ROLAND BURRIS, ILLINOIS SENATE APPOINTEE: Don, I am the senator. I am the senator.

LEMON: OK. BURRIS: And the next step is for the United States Senate to do its constitutional duty and not disenfranchise the 13 million people of Illinois and have us to be shorthanded with all these crises that are coming down around our state and around our nation.

(END VIDEO CLIP)

HARRIS: Well, that's Roland Burris talking to CNN's Don Lemon last night, insisting he is entitled to President-elect Barack Obama's Senate seat, despite problems faced by embattled Governor Rod Blagojevich. Burris says even if the man who appointed him is tainted, it doesn't mean he is.

Burris is headed to Washington today to claim the seat, setting the stage for Capitol fireworks.

CNN's Brianna Keilar is on the Hill today.

And Brianna, Dana Bash was telling us last hour that there is a meeting between Burris and the Senate leadership on Wednesday. The question is, what happens tomorrow at the Senate swearing in ceremony?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: That is the question, and we've been talking about all the different scenarios, some which do involve, as you said, fireworks, Tony. But at the same time, we're hearing from sources within the Burris camp, and also from Senate Democrats, and clearly, they are trying to keep this I guess on a cordial level, you could say.

But at the same time, as you just heard it from the man there, Roland Burris says, I am the junior senator from Illinois. And you have Senate Democrats, specifically Harry Reid, saying, no, you are not. We are not going to seat you. And Reid this weekend defending this move to block Burris from being seated as a senator.

At the same time, there's still some uncertainty about the ultimate outcome of this, in part because Harry Reid said something yesterday on "Meet the Press" that kind of raised a question mark. Let's listen.

(BEGIN VIDEO CLIP)

SEN. HARRY REID (D-NV), MAJORITY LEADER: The state of Illinois deserves a vote in the United States Senate, and the people of the state of Illinois, the fifth most populous state in the union, deserve that vote. It's too bad Blagojevich has diverted attention from the real issue.

And as I've indicated, we're going to come -- I'm going to meet with Senator McConnell, my Republican counterpart. I hope to do that Monday evening. I think it's around 6:00 or something like that.

We'll talk about this. I hope we can solve this issue on a bipartisan basis.

DAVID GREGORY, HOST, "MEET THE PRESS": But it sounds to me that there may be some room here to negotiate and actually seat Burris.

REID: Hey, listen, David, I'm an old trial lawyer. There's always room to negotiate.

(END VIDEO CLIP)

KEILAR: "Room to negotiate." Now, what exactly does that mean? Does that just mean that Reid is open to these talks that he's having with his number two, Dick Durbin, and with Roland Burris on Wednesday? Does it mean that if Blagojevich is out of the picture and the lieutenant governor comes in and appoints someone, appoints Burris, maybe he'd be open to it?

I mean, there's a question there, Tony, and we honestly don't know the exact answer to it. It certainly does make you wonder.

But the question is then, what happens when Burris shows up to Capitol Hill tomorrow, as he says he will? Well, basically, it sound like, as I said, they're trying to keep things pretty cordial.

He will be allowed inside the building according to the sergeant at arms. And he'll go up, you know, where all of the freshman senators, or senators-elect would go, present his certificate of appointment. Presumably, it's missing a signature from the secretary of Illinois, who says, I'm not signing it, and he's basically turned away.

Burris has said he's not going to make a scene, he's not going to try to force his way onto the Senate floor, or anything like that. But he is going to be holding a press conference tomorrow after this all goes down, Tony, if it all goes down as I just said it might.

HARRIS: Well, I tell you what, even before the press conference tomorrow, we just received word that Roland Burris is going to hold a news conference, a press conference at 1:30 p.m. Eastern Time.

KEILAR: Today in Chicago.

HARRIS: Today in Chicago at Midway Airport. So we'll bring that in live for everyone at home to watch as well.

All right, Brianna. Good to see you.

Brianna Keilar on Capitol Hill for us.

KEILAR: Good to see you.

HARRIS: Legal issues aside, Burris has his supporters. He got a rousing sendoff last night at a church on Chicago's south side.

(BEGIN VIDEO CLIP)

REP. BOBBY RUSH (D), ILLINOIS: Roland Burris is, indeed, the junior senator for the state of Illinois.

(END VIDEO CLIP) HARRIS: Well, the rally was led by dozens of black leaders and ministers, and organized by Illinois Congressman Bobby Rush. You saw him just a moment ago. Rush called the Senate the last bastion of plantation politics.

Barack Obama wants Virginia Governor Tim Kaine to take on a new role. Democratic sources tell CNN Kaine will serve as the chairman of the Democratic National Committee, replacing Howard Dean. Kaine apparently would work part-time until his term as governor expires in 2010.

Minnesota is expected to declare Democrat Al Franken its new senator today. A recount shows he beat incumbent Republican Norm Coleman by 225 votes out of almost three million votes cast. Coleman will have a week to challenge the recount in court.

Republican Senate leaders don't want Franken sworn in until all legal issues are resolved. And that could take months.

Let's take a look at the Big Board to find out where we are just about three hours into the trading day. As you can see, the Dow is down 46 points.

We will be following the markets for you throughout the day right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And this just into CNN. We understand that a federal judge in Chicago has granted the government's motion, the motion from federal prosecutors asking, requesting a three-month extension on whether to indict the Illinois governor. Certainly, the prosecutors asked for an extension, and a federal judge has granted a three-month extension. So, in essence, federal prosecutors have now until April 7th to indict the Illinois governor.

Remember now that all of the action that has been taken so far has been based on a criminal complaint. There has been no grand jury called and there has been no request for a grand jury indictment. The grand jury has not received the facts alleged in this case by prosecutors, so a federal judge granting a three-month extension for federal prosecutors to indict the Illinois governor.

We will, of course, keep an eye on that story.

And new pictures just into CNN of President-elect Barack Obama in the halls of the Capitol, the Capitol Rotunda, just a short time ago. And listen in.

(APPLAUSE)

HARRIS: And as you can hear, the president-elect -- my goodness, look at the cameras. Look at the people trying to take pictures of the president-elect in the halls of the Capitol Rotunda just a short time ago. Those pictures into CNN. OK. He is making the rounds. President-elect Barack Obama meeting with the House speaker, Nancy Pelosi, to promote his economic recovery plan. The president-elect expected to call for about $300 billion in tax cuts for individuals and businesses as part of the plan. The main goal is to create 3 million new jobs.

(BEGIN VIDEO CLIP)

OBAMA: The inauguration stand is being built in the background, but the reason we're here today is because the people's business can't wait. We've got an extraordinary economic challenge ahead of us. We are expecting a sobering job report at the end of the week. The speaker and her staff have been extraordinarily helpful in working with our team so that we can shape an economic recovery and reinvestment plan that starts putting people back to work.

(END VIDEO CLIP)

HARRIS: The overall price tag for the stimulus plan could be as much as $775 billion.

It happened overnight. Gas prices creeping up. Creeping up. AAA says you're paying an average $1.67 for a gallon of regular today. Just think, a year ago you were shelling out $3.10 a gallon. Higher prices have Exxon Mobil sitting pretty right now. It is sitting on nearly $40 billion in cash reserves and another $225 billion in repurchased stock, tucked away for a rainy day. Some rainy day it would be required, I suppose. And expect some chilly numbers when the auto industry releases December sales figures this afternoon. Some analysts predict sales for all of 2008 are likely to be the worst since 1974.

We are covering all angles of the Middle East conflict. Our Ben Wedeman with us live from the Israeli/ Gaza border, and our Elaine Quijano is at the White House.

Ben, first to you.

What can you tell us -- what have you been seeing from your vantage point?

BEN WEDEMAN, CNN CORRESPONDENT: Tony, since the sun went down, we've seen a fairly constant bombardment of Gaza. Some very bright flashes on the horizon as it appears Israel is intensifying its bombardment of various areas in the Gaza Strip.

We've been -- I can see -- you're going to hear a big bang in a minute, actually. I just saw what looked like a missile headed toward earth. So definitely a lot of stuff -- now maybe -- I don't know if you can see it. That's a flare going off above what I believe is the Jabaliya refugee camp. So it does appear that Israel is intense -- I'm just going to step out of the way -- is intensifying its action in Gaza, Tony. This after a day -- and this area was relatively quiet.

But we do know from the Israeli military that they've taken much of the areas around the cities, around the refugee camps and they do seem to be slowly moving inside the urban areas as well. You can see one flare just hit the ground. Another second flare is above the Jabaliya refugee camp. We just saw a flash. So it does appear that the action is intensifying. This may be the Israeli army beginning to move into some of those urban areas they've avoided until now.

Tony.

HARRIS: All right. Our Ben Wedeman following the action.

Ben, appreciate it. Thank you.

And to the White House now. President Bush unequivocally backing Israel in its assault on Gaza. Our Elaine Quijano at the White House.

And, Elaine, we heard from the president this morning shortly after a meeting with the Sudanese president, once again offering his vantage point, his view of the situation and the fighting in Gaza right now.

ELAINE QUIJANO, CNN CORRESPONDENT: Well, that's right, Tony.

And the president left absolutely no room for doubt. The Bush administration stands firmly behind Israel and its right to defend itself. President Bush today reiterated that he wants to see any cease-fire be a lasting one. And as you noted, the president made his comments during an Oval Office meeting with Sudanese leaders.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I've been closely monitoring the situation in Gaza. I understand Israel's desire to protect itself. And that the situation now taking place in Gaza was caused by Hamas. Instead of caring about the people of Gaza, Hamas decided to use Gaza to launch rockets to kill innocent Israelis. And Israel has, obviously, decided to protect herself and her people.

(END VIDEO CLIP)

QUIJANO: Now so far there is no word on whether Secretary of State Condoleezza Rice might travel to the region to help push through some kind of lasting peace, but officials say that she continues to work the phones, working on a cease-fire. The U.S. really has three goals in mind in trying to broker a deal or help push along a deal. The U.S. goal really is to have Hamas stop its rocket attacks into southern Israel. Also allowing crossings into Gaza to open under some -- to allow for some kind of international monitoring. And then, third, also they want to have the problems dealt with, the tunnels that go between Egypt and Gaza. They want to try to choke off some of the illegal arms traveling back and forth.

Tony.

HARRIS: OK. At the White House for us, Elaine Quijano.

Elaine, appreciate it. Thank you. A lot of blame to go around, it seems. But in the end, it's the Palestinian people suffering and dying. Joining me now, Octavia Nasr, CNN's senior Arab affairs editor.

And, Octavia, great to talk to you again. Love your perspective, as always.

I'm just sort of curious. A lot of diplomatic efforts underway right now. Are you optimistic that all this flurry of diplomatic activity now could possibly lead to a cease-fire, even if it's just say a 48-hour cease-fire for humanitarian aid to get into Gaza?

OCTAVIA NASR, CNN SENIOR ARAB AFFAIRS EDITOR: Well, that's exactly what some Arab leaders are asking for. They're saying, you know, an immediate cease-fire, opening of borders to get humanitarian aid in and get the injured out. To get hospitalized in Egypt, for example, is a must.

The Arab media are very much on the story of this diplomacy flurry that's going on. But, of course, I mean, all morning we're watching Arab media. They're talking about the lull in activity in movement on the Israeli side.

And just a few minutes ago, you heard Ben Wedeman report that new attacks restarted and that shatters all, of course, optimism that you were hearing on Arab media. So now it's back to, you know, the victims, the people, the hospitals, the wailing, and so forth.

HARRIS: Octavia, explain this to me. Our Karl Penhaul is at Egypt at the Rafah border crossing and he showed us these pictures. This long line. This convoy of aid trucks ready to go into Gaza to help and yet the gates at the crossing are closed. Can you explain to us why that is from Egypt's perspective?

NASR: Definitely. Very important to understand that Gaza is -- we keep saying sandwiched in between Israel on one side and Egypt on the other. And what happened is, you know, you have two borders. One crossing with Israel and one crossing we Egypt.

Egypt doesn't want to open this border because they're worried about the influx of Palestinians just wanting to get out. It happened before. And most Palestinians want to get out of Gaza. They'll end up in Egypt. Egypt doesn't want to deal with that problem.

Today I just heard the Egyptian foreign minister, (INAUDIBLE), say that the borders are open again for humanitarian aid. As a matter of fact, the Arab networks are reporting that about 17 people crossed over to Egypt to get hospitalized. So the border is open for humanitarian aid, but it's not open because there are tunnels under that border, there is a worry that the Hamas militants will get some supplies in through the border. So there are many, many concerns on the Egyptian side. But definitely this is a border that, if opened, most Palestinians would want to get out. And then that would be a problem on Egypt's hands that they don't want to deal with right now.

HARRIS: And yet it's hard to understand, if you've got Palestinians who are trying to get out of a war zone with their children, why on earth the doors would be closed? It's just an observation. And I get your point.

NASR: That's not even an option. Very important to explain to our viewers that this is not even an option. People in Gaza cannot leave. That's it. That's how it is. So to think that they can . . .

HARRIS: So as the rockets come in . . .

NASR: That's it. They're in. So what happens -- and you hear this a lot -- some of the Hamas militants remain the their homes, along with their families, with their wives and children. So it's hard to disseminate, especially when you're flying a plane and you're having a air raid, it's hard to discriminate who is in those buildings, the militants, the families and so forth. So when you see all those images of kids and women, older people, it is true. It is a clustered area. It's a very small area. A million and a half people. And that's all of them, Hamas. As a matter of fact, the minority of them are Hamas militants. But they end up suffering as a result, the civilians that live there and have no choice. They can't leave.

HARRIS: It leads us to a broader conversation about Hamas leadership that we just don't have time for at this moment.

NASR: Next time.

HARRIS: Yes, let's do it. All right, Octavia, appreciate it. Thank you.

Barack Obama silent about the violence in the Middle East. Could his caution prove costly?

(COMMERCIAL BREAK)

HARRIS: I want to get you to Chad Myers in the severe weather center.

And, Chad, I know you're talking about snow in the Northwest. I think about it and I think, hey, snow in the Northwest. Great. Let's get that snow pack going. We've got a spring thaw and that's water down below and that's great, but then there's also been a lot of rain, too, and mudslides and . . .

(WEATHER REPORT)

HARRIS: All right, energy prices. Have you noticed? Certainly fallen pretty sharply over the past few months. But you probably can't tell from your heating bill. Why is heating your home still so expensive? Cnnmoney.com's Poppy Harlow has our "Energy Fix" from New York.

Hi, Poppy.

POPPY HARLOW, CNNMONEY.COM: Hey, Tony. You know, everyone could use a break these days, but there are plenty of frustrated homeowners out there right now. We see oil and gas prices dropping dramatically. And a lot of Americans thought the same would happen for their heating bills this winter. But for roughly half of America, those are the people that use natural gas to heat their homes, that is not the case.

Take a look at the chart there. The wholesale price of natural gas has fallen 25 percent since the end of 2007, but the Energy Department predicts the average customer this year will pay more this winter. That's because utilities bought a lot of that natural gas last spring, before the prices started dropping. They're paying those higher costs. They're passing it on to customers.

Now if you heat with electricity, you're also seeing increases, bigger ones than natural gas users. A jump of roughly 8 percent because coal remains high. The price of coal. And that, coal, Tony, is used to generate most of the electricity in this country. So a big problem for a lot of people this winter.

HARRIS: Well, I'm wondering, are we ever going to see lower heating bills?

HARLOW: Sure. Sure we are. We can hope.

HARRIS: Thank you.

HARLOW: And, you know what, Tony, some people already are. Those are the people that, believe it or not, use heating oil. A lot of those people here in the Northeast. Those prices are down nearly 20 percent. That only accounts for 7 percent of the population of this country.

As for the rest of us, experts say, in the long run, we will benefit from the falling natural gas prices. Probably not until next winter, though. Until then, there are still some things you can do to cut your heating bill. Here are some suggestions. Take a look here.

First, make sure you're keeping up the maintenance on your system. Change the filter in your heater every month or so. Also, set your thermostat as low as you can. Of course, during the day when you're gone, but also consider doing this at night when you're going to bed. And seal up those doors and those windows. Those air leaks, if you plug them up, you can save about 10 percent on your energy bill. More energy fixes on cnnmoney.com.

Tony.

HARRIS: All right, Poppy, appreciate it. Thank you.

Barack Obama saying little about the violence in the Middle East. Is that a mistake?

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(BEGIN VIDEO CLIP)

RIYAD AL-MALKI, PALESTINIAN AUTHORITY FOREIGN MINISTER: Disappointedly (ph) that President-elect Obama refused to comment on the situation in Gaza, despite the fact that he commented on the situation on the bombing in Mumbai in India. And we expected him, really, to be open and responsive to the situation in Gaza. And still, you know, we expect him to make strong statements regarding this as soon as possible.

(END VIDEO CLIP)

HARRIS: Well, President-elect Barack Obama hasn't been saying much about violence in the Middle East and that's drawing criticism. Is he hoping the situation will cool off before he takes office? CNN's Jim Acosta takes a look.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT, (voice-over): On the same day Israel launched its ground assault on Gaza, Barack Obama released a weekly web and radio address that focused solely on the economy. No mention of the violence in the Middle East.

OBAMA: Economists from across the political spectrum agree that if we don't act swiftly and boldly, we could see a much deeper economic downturn that could leading to double-digit unemployment.

ACOSTA: Pressed for a comment on the crisis, the Obama transition team returned to its line, there is one president at a time. As for that president, his deputy United Nations ambassador made current U.S. policy all too clear.

ALEJANDRO WOLFF, U.S. DEPUTY AMBASSADOR TO U.N.: We're not going to equate the actions of Israel, members state of the United Nations, with the actions of the terrorist group Hamas.

KHALED MESHAAL, HAMAS LEADER (through translator): Mr. Obama, your beginning is not good.

ACOSTA: Hamas leaders have taunted Mr. Obama, accusing him of ducking the issue, noting the president-elect's willingness to condemn last month's terrorist attacks in India and his decision to stay silent on Gaza. Until the incoming president's swearing in, other Democrats are doing the talking, like Senate Majority Leader Harry Reid, who sanctioned the Israeli ground offenses.

SEN. HARRY REID (D), SENATE MAJORITY LEADER: I think what the Israeli are doing is very important. I think its terrorist organization, Hamas, has got to be put away.

ACOSTA: Also quiet is incoming Secretary of State Hillary Clinton, whose husband, the former president, has been mentioned as a possible Middle East envoy. Mrs. Clinton is still yielding to Condoleezza Rice.

CONDOLEEZZA RICE, U.S. SECRETARY OF STATE: We need a cease-fire that is durable and sustainable.

ED ROLLINS, GOP STRATEGIST: I think what Hamas will discover very quickly is that American foreign policy towards Israel has been very consistent, whether it's a Democratic or Republican administration.

ACOSTA: And Hamas will likely discover that potential for consistency soon if the fighting is still raging in Gaza on the same day Barack Obama takes the oath of office.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

HARRIS: No let up in the Israeli and ground campaign in Gaza and Hamas militants fired dozens more rockets into southern Israel today. CNN's Anderson Cooper and our chief international correspondent Christiane Amanpour covering this story from the Israel/Gaza border. Here's part of their report from CNN's "American Morning."

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CHRISTIANE AMANPOUR, CNN CORRESPONDENT: They are being overwhelmed in Gaza City right now. And the people are questioning where are we to run to? What can we do? You know, in many of these wars and assaults that we've witnessed, there has always been a while for people to run out, to get out.

In this case, all the borders are closed. Those who want to get out cannot get out. And that is increasing the danger for them.

ANDERSON COOPER, CNN CORRESPONDENT: It's obviously not just the border with Israel. It's also the border we Egypt. That also has been closed. Residents can't go into Egypt. Five hundred and thirty Palestinians have been killed. A Norwegian doctor who's volunteering in a hospital in Gaza has said that as many as 100 of those killed have been women and children. But at this point, the battle continues. And really with no sights letting up.

AMANPOUR: Yes, it's going to be very difficult to see how they finally put an end to Hamas threat. But, of course, these casualties, the reality of them and the images that are going around the world are going to raise the pressure on Israel and the foreign minister knows it and has told us that himself.

COOPER: And, Kiran, the rockets do continue to come in to Israel. More than 16 rockets have fallen in Israel around this area, around Ashkelon, and elsewhere today. But there are no reports of any fatalities in Israel today.

(END VIDEO CLIP)

HARRIS: Anderson Cooper reports live from Israel tonight. Special coverage on "AC 360" beginning at 10:00 p.m. Eastern.

An autopsy is expected to be performed today on the body of Jett Travolta. The 16-year-old son of actor John Travolta died Friday while on vacation with his family in the Bahamas. The boy had Kawasaki disease, which can, in serious cases, weaken the arteries and cause an aneurism or heart attack. The Travolta family says Jett had frequent seizures and struck his head on the bathtub. A statement from John Travolta and wife Kelly Preston says, "Jett was the most wonderful son that two parents could ever ask for and lit up the lives of everyone he encountered. We are heartbroken that our time with him was so brief."

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HARRIS: You know, strange things can happen on live television. Wouldn't you agree there, Kyra, Kyra?

KYRA PHILLIPS, CNN ANCHOR: Oh, yes. Nothing as good as this, though, I've got to tell you.

HARRIS: Oh, Richard Simmons, a guest on CNN's "American Morning," he's just rolling, rolling, rolling.

(BEGIN VIDEO CLIP)

KIRAN CHETRY, CNN'S "AMERICAN MORNING": I love Richard Simmons. Thank you. You are -- oh my gosh. (INAUDIBLE). Thank you, Richard.

RICHARD SIMMONS: Cinderella, it fits. Everyone, let's have a ball.

(END VIDEO CLIP)

HARRIS: That's Richard saying, I love you too, Kiran.

So is Kiran on the line?

CHETRY: Hey, Tony.

HARRIS: Hey, you're on the line. Hey, we made this work. There she is, Kiran Chetry on the line with us.

Kiran, what happened?

CHETRY: I'm still wondering myself. You know, you never know what to expect when Richard "Foot" Simmons is our guest. Actually he came on -- he has -- can you believe this. It's been 15 years since he'd put out one of those "Sweating to the Oldies" DVDs? In fact this new DVD. So he comes on to talk about it and also his cause, which is fighting childhood obesity.

HARRIS: Right.

CHETRY: And we're talking about that and, you know, I just, you know, I love you. You make us laugh. I wish you were here at 6 a.m. The next thing you know, he grabs my leg and the rest is history.

HARRIS: Oh wow.

PHILLIPS: So, Kiran, I want to know, did you shave? Did you shave this morning?

CHETRY: Do what?

PHILLIPS: Did you shave?

CHETRY: Kyra, you know what I did do, though, I had on bike shorts underneath my skirt. Thank goodness. Because the way he was throwing my leg around, it could have been, you know, not so pretty.

HARRIS: So here's the deal. You know, Sanjay is a neurosurgeon. He's not a podiatrist but he was willing to play one for our benefit here. As we roll the tape again, apparently he was -- Richard Simmons was kissing your extensor digitorum, your lateral mateorolis, your extensor digitorum longus tendons. Basically, Kiran, he was trying to get to your toes, girl.

CHETRY: Yes. See, and I thought they were just Banana Republic pumps, but you (INAUDIBLE). You know my husband's with me in the car. Honey, were you jealous when Richard Simmons started kissing my foot?

HARRIS: No.

UNIDENTIFIED MALE: No. Is Rick Sanchez going to Twitter this?

PHILLIPS: I think Richard Simmons was twittering there.

HARRIS: Oh, this gets better and better and better. We can't stop showing it. Look at this.

Oh, Kiran, your -- and look at Rob. I can't believe what just happened.

All right. We're got to go. Kiran, you're a great support sport. Thank you.

CHETRY: You weren't as excited about the John Cornyn interview. We can talk about that tomorrow.

PHILLIPS: Well, it depends on whether he was kissing.

HARRIS: Oh. OK. Don't miss "American Morning." There you go. Kiran Chetry and John Roberts.

PHILLIPS: The hottest legs in television.

HARRIS: How about that? CNN NEWSROOM continues right now with this lady, Kyra Phillips. Have a great show.

PHILLIPS: Thanks, Tony.