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U.S. Marines Target Taliban; U.S. Soldier Captured in Afghanistan; DEA joins Jackson Death Probe; America Says Goodbye to Ed McMahon

Aired July 02, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Thursday, July 2nd, and here are the top stories in the CNN NEWSROOM.

More American workers join the unemployment line. The jobless rate for June hits a 26-year high.

Down and out in California. Budget gridlock forces the state to start paying its bills with IOUs today?

What if your office looked like this? The man who won the best job in the world contest reports for work -- nice -- and talks to CNN.

Good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

So, let's begin in Afghanistan. The most visible sign yet of President Obama's counterinsurgency strategy, 4,000 U.S. Marines stormed the Helmand River Valley today. The region is Taliban territory and the largest producer of opium in the world.

CNN is covering this developing story with Atia Abawi in Kabul and our Barbara Starr at the Pentagon.

Atia, let's start with you.

Talk to us, if you would, about the goals of this mission and all the missions to come in Afghanistan. It's civilians first. The idea is to clear and hold, but we know doing both has been a problem in the past.

ATIA ABAWI, CNN CORRESPONDENT: Exactly, Tony. Right now the mission is to secure and hold -- to clear, secure and hold these areas in Helmand Province, areas that have been full of Taliban influence.

It's been a stronghold for the Taliban. It's been a stronghold for militants fighting their battles within Afghanistan.

Let's remember that prior to President Obama's influx of troops into Afghanistan, Helmand Province saw 7,000 coalition troops in the country, primarily British troops. Now, after President Obama's influx of troops into Afghanistan, we're seeing over 13,000 coalition troops within this area.

U.S. troops coming in to reinforce these coalition troops who have been trying to fight the battle, who have been trying to secure the areas, but they didn't have the manpower to hold it. Right now, they're hoping that with the Marines, they can hold these areas that they were not able to in the past.

They're going to areas that they weren't able to go to. They're trying to secure this place for Afghans to just do their normal daily lives, to farm, to go to the marketplace, and to get ready for the August elections so they can feel secure enough to get out and vote -- Tony.

HARRIS: Good point. That is the civilians first portion of the mission.

Atia, appreciate it. Thank you.

Let's turn to Barbara Starr at the Pentagon now.

And Barbara, we've just learned today a U.S. soldier was captured in Afghanistan on Tuesday. What have you learned?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Tony, it doesn't get more serious than this. The race is on to find this young U.S. American soldier taken in eastern Afghanistan, we are told, in Paktika Province.

Apparently, for some reason, he was at a small outpost on his own, walked out, and was nabbed. The U.S. has an all-out effort now to try and find him.

A senior U.S. military official tells us that the latest intelligence they have is that this young soldier is now in the hands of the Taliban, specifically in the hands of a warlord clan called the Hakanis (ph). These are guys that operate on both sides of the border, Tony, both the Afghan and Pakistan side, so there is a good deal of concern that this soldier could be taken across the border into Pakistan. They're going all out to try and find him before that happens -- Tony.

HARRIS: Barbara Starr at the Pentagon for us.

Barbara, appreciate it. Thank you.

Unexplained deaths are on the rise within the U.S. Army's Warrior Transition Unit where wounded troops go to heal. Barbara is investigating that story, and we will check back in with her at the half-hour.

The money crisis. A new CNN/Opinion Research survey shows the economy is still the most important issue facing the country. Fifty- one percent of people say so in the poll that we have for you now, but that is down 12 percentage points since March. Fourteen percent say the deficit is the most important issue, 13 percent health care. The wars in Iraq and Afghanistan are most important to just eight percent of Americans.

New numbers to crunch on the jobless front this morning. Companies went on another job cutting spree in June, bumping the jobless rate up another notch.

CNN's Christine Romans is at the Money desk in New York this morning. Susan Lisovicz is at the New York Stock Exchange.

And Christine, let's start with you.

If you would, walk us through the numbers.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: OK. I'll walk you through them, Tony.

A 26-year high for the unemployment rate, 9.5 percent. We expected it would creep higher. It's likely going to continue to move higher. No surprise there.

The surprise was the number of jobs lost last month, 467,000. Most economists have been expecting something in the middle of the 300,000 range. So, employers slashed more jobs last month, and more than people had thought -- 6.5 million jobs lost since this recession began.

Pretty tough numbers overall for the auto industry, as well. Another 27,000 jobs lost there, 900,000 job lost for the car dealers. All together, one-third of auto industry jobs have disappeared since this recession began, so even though you have GM and Chrysler, GM, hopefully Chrysler coming through the bankruptcy process, don't forget, they're coming through, closing factories, laying off more workers. The dealers are laying off more workers.

The other place we saw jobs created was in health care, some 21,000 there. We have been seeing that over and over again.

But again, the headline here is that the labor market is still fragile, it has not healed yet. Some of that optimism we saw, even just in the last few months as the pace of jobs lost were slowing, that optimism sort of turned on its head, frankly, in the month of June -- Tony.

HARRIS: Yes. And boy, if you would, maybe you could read into this new economic poll. What do you see there?

ROMANS: Sure. Well, the economy is still this first issue here. And basically, you know, one in eight say the economy is starting to recover, 48 percent say it has stabilized. But look, four in 10 think it's still in a downturn.

If you're losing your job or you know someone losing their job or you're worried about losing your job, it's hard to believe that there is a recovery even on the horizon. And what we know is the people who -- we asked the question, "Are economic conditions very poor?" Forty- one percent say they are.

You can see that in April and in March, it started to moderate a little bit, but basically any of that optimism -- even, I would say, fragile, cautious optimism -- seems to have stalled about the economy.

HARRIS: Yes. OK, Christine. Appreciate it. Thank you.

ROMANS: Sure.

HARRIS: Let's turn now to Susan Lisovicz at the New York Stock Exchange.

(STOCK MARKET REPORT)

HARRIS: You know, it looks like the state of California will have to start paying its bills with IOUs. Our blog question is for our friends in California. What's the deal? What's the fix?

Send us your comments, CNN.com/Tony.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: Well, it has been a week since Michael Jackson died. His death is now part of a federal probe. The Drug Enforcement Administration is joining the case, fanning speculation drugs may have contributed to Jackson's death.

Attorneys serving as co-executors of Jackson's will want complete control of Jackson's estate. That goes to court on Monday.

And disappointed fans wonder when they'll get a chance to say their good-byes. There won't be a viewing at Neverland Ranch. Despite all the speculation, plans for a memorial and Jackson's burial are yet to be announced.

Kara Finnstrom is at the Neverland Ranch. That's in Santa Barbara County, California.

Kara, the Drug Enforcement Administration now involved in the Jackson death investigation. How does this change the investigation?

KARA FINNSTROM, CNN CORRESPONDENT: Well, it will give it a boost, Tony, because what the DEA brings is more resources, especially some ability to access databases that will allow investigators to actually track the drug prescribing habits of doctors. And what sources are telling us is that agents are going to look at a number of doctors that have been linked to Michael Jackson, look at their practices, and then look at their supply of medicines. So, perhaps this will help answer some of the questions that really have been looming since day one here about Jackson's use of prescription drugs and whether it played any role in his death.

Now, back out here at Neverland, Tony, I want to give you a look at some large, white condolence boards that were brought out for fans to sign. They have been scribbling away throughout the morning. Some of the fans here, though, we have to say, disappointed that there is not going to be a memorial tribute here at Neverland. They're obviously waiting for word. At this point, no official word still from the family spokesperson on when or where a memorial tribute will take place, only that they are planning one. You know, word from numerous media outlets has been that it may be the Staples Center. That's home of the LA Lakers and the Clippers. But we're just going to have to wait and see, Tony, because as we've seen out here already, things have been changing quite a bit with the plans for this.

HARRIS: Well, Kara, it's a little frustrating. You know, I'm sure it is for you. I'm sure it is for fans of Michael Jackson.

What does it take to confirm that, for goodness sakes? Is it a call to the Staples Center? Why haven't we been able to sort of nail this down?

FINNSTROM: We're working on it, Tony. We just want to make sure that it doesn't change again.

HARRIS: Yes. No, I get it. I mean, come on, you call the Staples Center, you talk to the person who runs the place and say, hey, look, is it scheduled or not?

All right. I know it's a lot more complicated than that.

Kara Finnstrom for us.

Kara, appreciate it. Thank you.

You know, it will be a test of wills Monday when a court could decide who's in charge of Michael Jackson's estate. Anderson Cooper asked Los Angeles attorney Charles Baumer about that last night on "AC 360."

(BEGIN VIDEO CLIP)

ANDERSON COOPER, HOST, "AC 360": Chuck, do we know who is in control of -- I mean, is there one person -- you liken it to when a king dies and lots of people are kind of competing for control. Is there somebody who is in charge of Michael Jackson's empire?

CHARLES BAUMER, ATTORNEY: We have two groups competing right now, the two gentleman named as executors and the family, because the family objected to admitting the will to probate and appointing them as temporary executors of the estate. That is one of the things that will be thrashed out Monday in court.

It's quite possible that the judge will say here we have a valid will. The attorneys filed papers today saying everything needs to be started immediately. They wanted all the powers likened to what an individual could do with the assets.

So, it's much more likely than not that they will wind up being in control after Monday. You never know what a judge is going to do, but, as Jeffrey says, it's a valid will.

(END VIDEO CLIP) HARRIS: Wow. OK.

Go behind the gates and get a look inside the Neverland Ranch. Larry King has a pass to go inside the house and tour the property, and you're invited to go along.

"LARRY KING LIVE" from Neverland, tonight at 9:00 Eastern.

So, you need cash flow to keep the business running and to pay your employees. So what do you do with an IOU? Two states now handing them out.

Boy. Send me your thoughts. Yes, I went on a bit here. Send me your comments at CNN.com/tony.

(COMMERCIAL BREAK)

HARRIS: It is certainly a sign of the tough economy. California today about to start paying its bills with IOUs.

The dramatic step coming after the legislature failed to deal with a $26 billion deficit. Social services and education programs, along with small business owners, expected to be the ones most impacted by this.

Dana Howard of affiliate KXTV tells us how some vendors aren't so sure about these IOU vouchers.

(BEGIN VIDEOTAPE)

DANA HOWARD, REPORTER, KXTV (voice-over): They quietly click away in their cubicles, ordering, troubleshooting, billing to and for the state of California. In fact, two-thirds of the accounts receivable at Sacramento Technology Group are state accounts, and getting paid for them in the form of IOUs has the owner more than a little concerned.

JOHN RILEY, SACRAMENTO TECHNOLOGY GROUP: Pretty hard to deal with the state, though, when all you're going to get is an IOU and you don't really have a say in it.

HOWARD: John Riley says he has to rely on his bank to accept the IOUs. The state wants to pay his company. It will be the generosity of banks, he says, that both the state and its vendors will have to rely on.

RILEY: If the banks that we finance our things through is willing to take the IOUs and hold on to them and accept them, then, obviously, we can continue. But I can't believe that that's going to continue forever from the banks.

CATHY MCCANN-LAWSON, DAYCARE CENTER DIRECTOR: It's just mind- boggling, frankly.

HOWARD: Cathy McCann-Lawson is the director of a daycare center for 150 developmentally disabled adults. The center won't give an IOU, but the agency the center falls under will. It was lucky, she says, to find a bank willing to give the agency a line of credit so that it could continue funding the center, but McCann worries other centers around the state won't have such good luck, and that the governor and lawmakers are missing a very big picture.

MCCANN-LAWSON: Are they thinking this through to the end? If they make these cuts, and programs are forced to close that serve this population, then where are these people going to go?

(END VIDEOTAPE)

HARRIS: OK. So how do these IOUs work, and who gets them?

Nicole Lapin is here.

Nicole, if you would, sort this out for us, please.

NICOLE LAPIN, CNN.COM CORRESPONDENT: How about a little Schoolhouse Rock CNN NEWSROOM style?

HARRIS: OK. Yes.

LAPIN: We call it, "I'm an IOU, So What Do I Do?"

Let's start with the comptroller.

The state has already started issuing about $3 billion in IOUs to pay some of its bills. So, look at that.

Those checks go to businesses that contract with the state. So, Tony, the guy that delivers fries to the prison.

Then, for example, some people also getting tax refunds like that person who has a smile on her face, at least for now. And some different state programs like Cal grants, which, of course, gives student loans for education, and they're already hurting.

Then we have that person or the business taking the IOU to the bank. Tony, Bank of America and almost 20 credit unions have already decided they're going to accept them for the time being. Wells Fargo and Bank of the West has not decided.

So then, in theory, the state pays back the banks by October 1st, assuming, though, that there is enough money in the treasury by then. And they really, Tony, can do whatever they want.

In 1992 -- this was 17 years ago when this was the last time we saw this. Banks accepted it for the first month, but then stopped, saying that that interest rate they were getting wasn't worth all the hassle. I think it was about five percent.

HARRIS: Hey, are you walking over here?

LAPIN: No.

HARRIS: OK. You going to stay over there? LAPIN: I can, if you want me to.

HARRIS: No, no, no, no.

LAPIN: But I want to show you what these IOUs will look like, because...

HARRIS: Would you, please?

LAPIN: Well, we don't really know exactly what they look like, but we have a little graphic from the state that says regular state checks. That's basically what they're going to look like. They're going to be printed on darker green paper and bear the issue and maturity dates and the word "registered" on them.

The blogossphere has a different idea of what these checks are going to look like, as you can imagine. A little Monopoly money here. We have the nice state of California with the governator and the IOU.

HARRIS: I love it.

LAPIN: And then we have One Arnold Buck.

And, you know, Tony, since you are just so fun to work with, I actually...

HARRIS: Oh, thanks.

LAPIN: I created a little IOU for you, as well.

HARRIS: Oh you did? All right.

LAPIN: So here it is. Take this to the bank.

HARRIS: Take it to the bank? Got to sign it, date it.

LAPIN: I'm going to sign it.

HARRIS: All right.

LAPIN: Sign, sealed and delivered.

HARRIS: There you go.

LAPIN: Take that to the bank.

HARRIS: Thank you for my IOU.

What is it worth? I get to fill in the amount?

LAPIN: You get to fill in whatever you want. A lot of people are talking about this on the blog, because the question is, are you kidding me? Are you kidding me?

HARRIS: Are you kidding me? That segues me perfectly.

Thank you, Nicole.

LAPIN: You're welcome. You're welcome.

HARRIS: Thank you.

So, let me understand this, taking a step back here. I'm a vendor doing construction work for the state -- Tony's Tin Roof and Tackle Shop. I'm expecting a check -- a check that I can cash for hard-core greenbacks to pay my employees, to pay my mortgage. Now I'm told I'm getting an IOU from the state instead of my dollars, and the IOU may not be payable until October.

Californians, this question is for you and for anyone else who wants to weigh in. What up with that?

Explain this system to the rest of us, please. Tell me you didn't vote for this. And what is the fix?

All right. Do me a favor. Just go to CNN.com/tony and leave me your comments.

Governor Schwarzenegger talks about the next steps in this process at a noon Eastern news conference, and we are working to bring it to you live.

Four thousand U.S. troops begin a major offensive in Afghanistan, and it has Pakistan moving its military.

Senior International Correspondent Nic Robertson joins us next in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: North Korea testing missiles and the world's patience again today. South Korean news reports say the regime of Pyongyang fired off four short-range missiles today. Reports say they flew about 60 miles and fell into the sea. North Korea has been hinting at a long-range missile launch aimed toward Hawaii. These new tests only aggravate tensions that developed after North Korea announced its underground nuclear tests in May.

An American soldier in Taliban hands today in Afghanistan. Afghan police say the soldier was snatched in broad daylight Tuesday, in the eastern part of the country. The U.S. Military says it is exhausting all resources to find the missing American.

In southern Afghanistan, thousands of U.S> Marines swarmed into Helmand Province today. Their goal -- crush the Taliban. The blitz underscores President Obama's news counterinsurgency strategy and highlights new cooperation with Pakistan, along Helmand's border with that country.

Senior international correspondent Nic Robertson joins me now from Pakistan's capital, Islamabad.

Nic, good to see you, as always. First of all, I want to get to the mission in a moment, but, what are you learning about the status of the missing American soldier?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we know that he's been taken by a group affiliated with the Taliban. And this is the same group who've been involved in kidnapping other people.

We learned recently of David Rodhe, the "New York Times" journalist who was freed. This same group or these people from the same group are believed to have this soldier right now and, therefore, it opens the possibility that they've moved him across the border into Pakistan for safe keeping.

Now, that's absolutely speculation at this time. But that's exactly what the same group did with David Rodhe. So that can't be ruled out. And certainly, we can expect the Taliban to play this out to get maximum publicity out of it because this, for them, is about as big a fish as they've ever caught. So, all the stories they make up about their attacks, this will be for them, much bigger.

HARRIS: Yes. OK. And Nic, let's turn to the offensive now. The military force deployed in this particular operation is tasked with both clearing and holding territory. We know how difficult that has been in the past.

But what is need to bring the long-term success against the Taliban in Helmand province?

ROBERTSON: You need to build up the Afghan security forces, the Afghan army, the Afghan police and to do that you need to provide security in those areas and that's, obviously, what the main priority of the Marines is going to be.

But this hold phase -- and we've seen this play out in other parts of Afghanistan -- the hold phase is to convince the people in the area that the Marines take -- that the Marines are there to help them and that they should -- the people should support the Marines and, more essentially, the Afghan government.

To do that, though, you need people who work in civil affairs -- the doctors, the vets, the agriculture specialists who can really help the local people because, otherwise, the Taliban come back in and that is what we've seen in other locations. And that's going to be, perhaps, the toughest challenge for these Marines is winning over support of the population by showing that they could make a positive change for the people that live there -- Tony.

HARRIS: Well, this is interesting, Nic. So we see the Marines moving in to Helmand Province and we see that Pakistani forces are moving to the border.

Have we ever seen this kind of coordination before?

ROBERTSON: No, we haven't. What we're seeing and what the pattern is emerging is slowly by slowly this sort of inching forward cooperation. This is something that's been talked about and talked about for a long time. But, now, you know, Pakistani army telling us that they're moving troops along that border and that is new and different. But let's not fool ourselves. There's a myriad of ways for these Taliban fighters to get out of Afghanistan, to go to ground in other places. We were down in the same area last year, watching similar things and they fade away and you lose them.

HARRIS: And you lose them.

All right. Our senior international correspondent Nic Robertson for us.

Nic, thank you, as always.

Some of America's wounded warriors are fighting another battle.

CNN's Barbara Starr looks at whether some of our heroes are getting all the help they need on the road to recovery.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Army Warrant Officer 1 Judson Erik Mount's wife Jennifer knew something was wrong when she didn't get a scheduled phone call from her husband at his barracks at Brooke Army Medical Center in Texas. She tells CNN, he was found two days later dead in his room.

Mount was recovering from shrapnel wounds he got in Iraq. In an outpatient rehab unit, he was supposed to get the best of care. His widow believes he died from a reaction to multiple prescription drugs. But so far, she says, the Army hasn't told her what happened, only that it's under investigation. The general who oversees the Army's care program is not surprised.

GEN. GARY CHEEK, WARRIOR TRANSITION PROGRAM: We are seeing a rise in our deaths due to drug toxicity and, as we described, illegal drugs or alcohol, et cetera, and prescription drugs.

STARR: Drug and alcohol deaths among soldiers in these high- care, outpatient Warrior Transition units are up dramatically. Nine soldiers have died, four other deaths are under investigation in just the last nine months. Almost double the number from the previous year. Some units are also seeing a dramatic rise in soldiers with mental health issues, such as depression, stress and anxiety.

CHEEK: We've got about a 40 percent increase in the soldiers in the Warrior Transition unit with behavioral health conditions.

STARR: The Army is trying to keep soldiers from dying, due to alcohol and drugs. Those deemed high-risk are checked on several times a day. Alcohol use may be restricted. There is more monitoring of prescription drugs, only a small supply may be given out at a time and doctors check for possible deadly drug interactions.

(END VIDEOTAPE) STARR: But, Tony, sadly, the real fact is some soldiers are just falling between the cracks. What we found out from a U.S. Military official is at Brooke Medical Center, in this case of Warrant Officer Mount, in fact, two Military personnel were fired from the Warrior Transition unit because they failed to check on him, go to his room and make sure that he was OK when they should have.

So, the Army's trying to get a handle on all of this. But you know, if sounds to you like prescription drugs -- aren't we hearing about that in the Michael Jackson case, in the Heath Ledger accidental overdose. What the Military tells us is that the research is showing that this is an epidemic, if you will, in America. Prescription drug accidental overdoses. Still, these kids are supposed to be very closely monitored -- Tony.

HARRIS: All right, Barbara. Barbara Starr at the Pentagon for us.

Barbara, Thank you.

(MUSIC PLAYING)

It has been a full week since we first learned of Michael Jackson's death. And plans for his memorial have yet to be announced. The public viewing at Jackson's Neverland ranch has been canceled.

You know, there's been plenty of talk whether drugs were involved in Jackson's death and now the feds are involved -- the Drug Enforcement Administration is investigating. One thing that is under control for the moment -- Michael Jackson's estate. He named two attorneys as executors and put everything into a trust.

Now, last night on "ANDERSON COOPER 360" we heard, it's at best, the grownups are in charge.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN HOST: You looked at the will. You think it's a very thoughtful will?

CHARLES BLAMER, ATTORNEY: Yes, I think it's a thoughtful will from -- and one of the interesting things about the will is normally you initial at the bottom of a page and not every paragraph. Somebody might have thought there'd be a will contest because he didn't name the family. So they wanted it clear that he had everything of his intent is clearly spelled out. Yes, I read this paragraph, yes, I agree with it.

COOPER: And Jeff, he also named executors to his will.

JEFFREY TOOBIN, CNN LEGAL ANALYST: And these are real, serious professionals. All of us who followed the Jackson saga have seen a lot of third-rate people, people who really just didn't have any quality except an ability to leech off of Michael Jackson. But the author of this will is John Bronca, who's one of the leading entertainment attorneys in L.A. These are people who really know what they're doing and this will illustrates it. It's a professional will, it's very hard to imagine how it could be challenged and you know, the grownups are in charge this time.

(END VIDEO CLIP)

HARRIS: Jeffrey Toobin.

All right, tonight at 9:00 Eastern, a primetime exclusive. Boy, this is big. Larry King, live from Neverland ranch. He has a pass and he will take you inside Michael Jackson's one-time home. That's "LARRY KING LIVE," CNN tonight at 9:00 Eastern.

Hundreds turned out in Los Angeles last night to remember Ed McMahon. Friends and family honored the long-time "Tonight Show" sidekick at the Television Academy of Arts and Sciences. The tribute focused on his humor, his spirit and his Military service, which he did not flaunt.

(BEGIN VIDEO CLIP)

LEX MCMAHON, ED MCMAHON'S SON: Over the years, Ed told me he that he wanted to be remembered as a good entertainer and a great Marine. Considering Ed was an entertainment giant, this speaks volumes in regards to his love of the Marine Corps with its inherent brotherhood and core values of respect, honor and integrity. These are the defining forces of Ed's character.

(END VIDEO CLIP)

HARRIS: Boy, that's nice. Ed McMahon died last night after a long hospitalization for several health problems. He was 86 years old.

You know, it's called the best job in the world. I think I have it. Actually, some young guy in New Zealand says he does. His third day on the job, next.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Oh, my gosh, we have a mini tsunami on our campus. The water was coming just that fast.

(END VIDEO CLIP)

HARRIS: Wow, a gusher hits a college campus. In the St. Louis suburbs, a water main break flooded a street with four to five feet of water. The school's library and some dorms took on water. One witness says it took utility crews about an hour and a half to shut off the spigot.

Take a look at this. Hey, Rob, are you there? Chicago's famed Sears Tower known for its spectacular views. But take a look at this vantage point. Yikes! Straight down through the floor.

Could you handle that? What to you think? Could you?

ROB MARCIANO, AMS METEOROLOGIST: I don't know. I'm just hoping the engine -- I'd like to see the engineers' references before I jump down that sucker. My goodness, that's scary.

HARRIS: So, we're talking bout a new transparent set of balconies on the 103rd floor sky deck. Fittingly, they call it the ledge.

MARCIANO: Yes.

HARRIS: Yes -- not -- I couldn't handle that. I absolutely -- look at those kids, fearless kids.

MARCIANO: Well, fearless kids.

HARRIS: Yes, yes, yes. But I guess this level, the balcony is on that sky deck opening just in time for the big Fourth of July holiday weekend. By the way, 1,353 feet to the ground. Hello.

MARCIANO: Tallest building in the U.S., right? Soon to be the (INAUDIBLE) Tower, I'm told.

HARRIS: Yes, that's right.

(WEATHER REPORT)

HARRIS: In May, a British charity worker won a contest for what was dubbed the best job in the world. He had plenty to tell CNN about his 40-hour workweek as caretaker of an island off of Australia.

(BEGIN VIDEO CLIP)

UNIDENFITIFED FEMALE: You've been on the job now for two whole days.

What have been your main observations about it?

VOICE OF BEN SOUTHALL, ISLAND CARETAKER: It's been beautiful. I mean, really, it's been the most idyllic island paradise I could of imagined. I'm actually sitting here this evening, overlooking the Coral Sea, where earlier on today I headed out on a motor launch to another luxury resort called Hayman Island. I went to White Haven Beach earlier and we've flown around this afternoon in the sea plane.

So, it's really been in the deep end. It's lovely, lovely experiences I'm having here. My job, obviously, is and try to get this message across to everybody out around the world that this is the place to come and have a holiday. I know there's a global credit crunch but this is still one of those extreme destinations where everyone just says, look, this is what you're going to come and get. Look at the brochures. Don't you see, this is what everyone's going to deliver because it's perfect out here. It really is.

(END VIDEO CLIP) HARRIS: So, aside from, let's see -- swimming, snorkeling and relaxing, Ben has to blog about his job. It's part of his six-month contract with Queensland Australia's Tourism Department.

Still to come, creating more jobs to put more people back to work. The president looks for innovation.

(COMMERCIAL BREAK)

HARRIS: Bringing jobs back to America. Take a look. Here's one way to do it -- manufacturing streetcars. This is the first American- made streetcar in 58 years. It was built by Oregon Iron Works and it will start rolling on Portland's new line. The company hopes to produce 24 to 30 streetcars a year and sell them to other communities.

Creating jobs: It is a top priority for the Obama administration. This afternoon the president meets with leaders of companies that are doing just that in this stuff economic climate.

Senior White House correspondent Ed Henry is with us from Washington.

Ed, great to see you.

The president has said that he is frustrated that he can't get the stimulus money out of the door faster and keep it safe and targeted. The June jobs report will likely add to that frustration.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: It is. And it's adding to the political pressure, Tony, because the immediate reaction from Republicans on capitol hill -- people like Congressman Eric Cantor, one of the Republican leaders up there, saying, look, Mr. President, where's the stimulus money? Why has there not been a bigger bounce for people? Why are we not seeing more job growth?

And the initial response from White House officials here has been, look, if not for the stimulus package, that economic recovery that was signed into law about four months ago, this job loss would be even worse.

So, they're saying that, look, there has been some job growth, some sectors, some parts of the country. But it's been overwhelmed by this ongoing recession. And one area that's particularly hard hit, we talk about 9.5 percent unemployment around the country which is high. The president's predicted it's going to go up to 10 percent. But African-American population -- 14.7 percent unemployment.

We've got a special guest here, Jullian Bond, the chairman of the NAACP. Just came out of the meeting with Valerie Jarrett, one of the president's senior advisors. This has to be something that in particular has to concern the White House, has to concern you. Unemployment among African-Americans, even higher than the national average.

JULLIAN BOND, NAACP: It historically has been higher than the national average. And as odd as it sounds, this 14 percent for blacks and 9 percent for whites, is good news. Because typically it would have been 18 percent for blacks. So, the fact that those numbers are coming down a bit are good news. But you can't think that 14 percent unemployment is ever good news for anybody.

HENRY: Absolutely.

BOND: So, we are worried about it, and I hope the White House is worried about it, too. In fact, I'm sure they are.

HENRY: What about the political calculation for the president? Because he passed -- you know he signed into law the economic stimulus package. He kept telling Congress they had to pass it during the first 100 days. They did it, he got it and now Republicans are saying, where's the bounce from that because people are not going to see this recovery yet.

BOND: They're going to find something negative to say about everything. If he moon walked, they'd say he copied it from Michael Jackson.

But the stimulus package apparently is working. You look around the country, you see cranes, you see buildings going up. It's never enough. We need to do much, much more. But it seems to me to be working.

HENRY: OK. You heard it there from Jullian Bond, the NAACP chairman, Tony.

Obviously the president though, feeling some of that political pressure from Republicans saying they want to see more actual results from the economic recovery package. That's why we're going to see the president about 2:20 Eastern time in the Rose Garden today.

Before that he has meetings with CEOs of small and large businesses who are trying to create jobs. The president going to come out in the Rose Garden and address reporters and try to talk about his reaction to what's a bleak jobs report.

As I noted, the president's already predicted it's going to reach 10 percent by the end of the year. So, it's going to get worse before it gets better -- Tony.

HARRIS: Ed Henry, thank you. And our thanks to Chairman Bond.

Looking ahead to the next hour in the CNN NEWSROOM -- California's money troubles. The legislature fails to fix a budget hole. Now the state is telling vendors, we'll pay you later. Governor Arnold Schwarzenegger talks about his state's I.O.U. dilemma just minutes from now.

Plus, the debate over health care is building. You've seen the ads for and against. Now an insurance insider is spilling the beans on some of the ads shaping this debate.

And the American Medical Association -- is it altering its position on the president's health plan? You'll want to hear what the AMA's president is saying.

All that, and more, in the next hour of CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Opposition figures in Iran issuing some strong statements of dissent and questioning the legitimacy of the current government. Pretty strong indeed.

CNN's Reza Sayah is following the story from our Iran Desk.

And, Reza, two presidential candidates and a former president keeping up the fight. How is the current government reacting?

REZA SAYAH, CNN CORRESPONDENT: Well, the current government wants these opposition leaders to keep quiet and go away, but they're still making a lot of noise.

Some strong statements against the regime, none stronger than what former President Mohammad Khatami said. He, of course, a support of Mir Hossein Mousavi. He really lashed out at the regime, accusing the government of a velvet revolution against the people of Iran through propaganda and fear. He goes further, saying the government reacted to the great movement with bloodshed and forced confessions.

Also opposition leaders Mehdi Karroubi and Mir Hossein Mousavi, once again coming out and calling these elections illegitimate. Also the British government calling the European Union to pull out all its ambassadors from Iran. This would be an unprecedented show of unity against Iran. Tony, look for a decision on that request to be made in the coming weeks.

HARRIS: OK, Reza. Appreciate it. Thank you.