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Painful Cuts in President Obama's Budget; Egypt After the Revolution; Heroic Deputy Saves Driver From Car Fire; 10-Year-Old Blind Swimmer Making Waves; "Moby Dick" Era Ship Foun; Eighth Grade Student Interviews Eminem; Valentine's Day Duds; Dealing With Financial Relationship Baggage; Japanese Economy Slips to Number Three Behind U.S. and China; Iran's Forbidden Protest; Italians Protest Prime Minister Berlusconi; World's Chocolate Crunch; Big Brawl and Big Fines
Aired February 14, 2011 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Good morning, guys.
Your money, your world. We have two big stories that we're following. On the left, remembering those who died in Egypt. Three days after protesters toppled a dictator the euphoria fades and the reality sinks in.
On the right, the nation's budget crisis. President Obama unveils $1 trillion in spending cuts and just about every American will feel the sting.
And that's where we begin. The president's budget hot from the printer and delivered to Congress last hour. 2012 spending blueprint which share -- or shave, rather, $1.1 trillion off the deficit over the next decade. That means many government programs like home heating assistance and clean water projects could get squeezed.
The White House says the plan will help ease the debt crisis, but Republicans say it doesn't go far enough.
(BEGIN VIDEO CLIP)
JACOB LEW, DIR. WHITE HOUSE OFFICE OF MANAGEMENT & BUDGET: Our budget will get us over the next several years to the point where we can look the American people in the eye and say we're not adding to the debt anymore. We're spending money that we're -- we have each year and then we can work on bringing down our national debt.
REP. JOHN BOEHNER (R), HOUSE SPEAKER: We are broke. What's really dangerous is if we continue to do nothing and allow the status quo to stay in place. When are we going to get serious about cutting spending?
(END OF VIDEO CLIP)
PHILLIPS: Christine Romans, live in New York.
Christine, let's break it down and talk about what's on the line here for you, me and every other taxpayer. CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, look, about half of the government agencies would see their -- would see their funding reduced. So that's just about everything you could think of that we would touch. One of the things I want to zero in on are Pell Grants.
The president wants to make permanent the $5500 limit for Pell Grants. He'd raise that in the health care reform. And to do that, that means he would have to cut in some other places. So a Pell Grant now some students can get two Pell Grants a year, Kyra. They can get one for the school year and one for the summer school. Not anymore. It would be just one Pell Grant a year at $5500.
Also it would reduce loan subsidies for graduate and professional students.
Did you know that some students, they don't have the interest on their student loans begin until they graduate. Well, the taxpayer pays that interest bill in the interim. No more. The interest would start to accrue right away and then the student would have to start paying it back once they graduate.
So that's a way to save some money. And this is sort of how the White House is trying to pitch this, Kyra, to invest in certain areas, like this part of education, but to do that you have to have belt tightening around it to make sure that you're making the right kinds of choices.
A lot of other things in here as well. The low-income heating assistance program. The president wants to cut that back to 2008 levels, Kyra. That's not popular with Democrats. Many of whom before this budget was even out were already saying don't touch this important -- this important subsidy for the poor.
But the White House is saying, no, no, no. Those -- this is one of those areas where we have to pull it back. We can't help everyone. It was never meant to be a program to help everyone. And we need to go back to 2008 level so it would be cutting about $2 billion out of that program as well.
You go down the line. A lot of different things that you and I and our families are going to feel as the White House try to say yes, we're serious on debt reduction but we have to invest in our future at the same time. And as you pointed out, the Republicans say nope, none of this goes far enough -- Kyra.
PHILLIPS: Well, we're also looking at changes at the mortgage tax break, too, right?
ROMANS: A lot of talk about this. And this is the most loved and beloved tax break out there. For middle class and upper middle class and very rich people, they write off their mortgage interest, zeroing in very closely, but the White House wants to do for people who make $209,000 maybe or higher to limit some of those deductions.
It would raise a lot of money. That tax deduction is something like $131 billion a year in revenue that goes right back to taxpayers. That break could raise an awful lot of money for this budget -- Kyra.
PHILLIPS: All right, Christine Romans, live in New York. Christine, thanks.
The president's $1 trillion deficit cutting goal seems big, but the deficit commission wanted him to cut nearly four times that amount according to his plan that was unveiled late last year. Now that panel urged the president to take the scalpel to some of the biggest deficit causes, Medicare, Medicaid and Social Security. But President Obama's budget side skirts tough cuts in those areas.
All right. Let's turn to Egypt now. A nation reborn. A democracy only a few days old and what can be more democratic than this. Some protesters already return to Tahrir Square. Their beef? Just three days after overthrowing a dictator, democracy is not coming fast enough to their liking.
Egypt's military now running the country, the Constitution dissolved, the parliament disbanded, and the clock ticking. Six months until the people can elect their new leader.
Let's get the latest from Cairo. CNN's Fionnuala Sweeney there now.
So, Fionnuala, let's talk about the biggest and most immediate challenges.
FIONNUALA SWEENEY, CNN CORRESPONDENT: Well, we just had a statement from the military authorities in which they really in the substance and the tone in which this message was delivered, they are really getting fed up with the protesters.
Let's show you a picture of Tahir Square now. You couldn't see cars there for the last couple of few weeks, but now you can. But there are still pockets of protesters, and all across the city, there are pockets of protesters who believe that now that they have freedom, that they can vent about any of or all of their frustrations, many of which are legitimate.
So we're seeing protests like a few moments ago, walking to the state TV building, of the very same police who are in the crowd attacking protesters a couple of weeks ago, now demanding, you know, results and reform for them, higher pay, the removal of their boss, the head of their department, the police.
And the government now making it quite clear that it didn't issue an explicit warning that it want to see these small pockets of protesters off the street, the country back -- running back to normal so that they can put it, as they said, the wheels of democracy and the wheels of industry get Egypt up and running.
We should say that the stock market have been due to open on Wednesday. And that's being put off indefinitely. We haven't heard a date yet because there are concerns that the country isn't stable enough to allow the markets to open -- Kyra.
PHILLIPS: All right. And how are people reacting to the military being in charge now, Fionnuala?
SWEENEY: Well, for the most part, people are very happy to see the military in charge. They recognize the need for stability not just in this country but also in the region. And they recognize the devil will be in the details as the country makes its slow transition to democracy.
I think, however, as time goes on, if change doesn't happen fast enough, they will be upset. And there are some protesters who want to stay in Tahir Square who say they want to see the state of emergency lifted, they want to see freedom of the press. Indeed, we're hearing indications that freedom of the press has already been lifted or enacted so the state newspaper, the state television can be the same as any independent newspapers.
So for the moment there is a cohesiveness. But for the most part, the people prepared to work together. But from that communique, the fifth communique we received from the military since Friday, we now are getting the sense that the authorities want to see the protesters off the street. We're going to have to see just how that evolves over the next few days.
PHILLIPS: OK. Fionnuala Sweeney there live in Cairo. Fionnuala, thanks.
And the successful protests have sent a new energy through similar movements in other Arab states.
In Yemen protests turned violent today when an anti-government rally was crashed by supporters of the longtime president. The two sides first threw rocks at each other and then things turned pretty ugly with daggers and other knives enter the fray. Witnesses say that it was the pro-government demonstrators who had the weapons.
Yemen's growing instability is of particular concern to Washington. Officials fear that the U.S. backed president is toppled, terrorists can build on the foothold that they already have there.
And in Algeria new signs that the government is bending the protest there. That government says it will lift the state of emergency that's been in place for almost 20 years. That means that Algerians will be able to publicly express their opinions for the first time since 1992.
Foreign minister says the ban will be lifted in the coming days. The move is widely viewed as an attempt to diffuse the same kind of uprising that ousted the president of Egypt and Tunisia.
Social media made a major role in organizing that anti-government movement in Egypt as we all know. And it's certainly no coincidence that the U.S. State Department is reaching out to Internet users in Iran.
It launched a Farsi language Twitter feed yesterday on the eve of a scheduled protest. Opposition leaders and activists in Iran have called the protest in support of the Egyptian revolution. Now as soon as the call to action went out Iran's government began rounding up the activists.
Thousands of conservatives have spoken and they want Congressman Ron Paul to run for president. There he is at the annual CPAC convention over the weekend. Texas representative with libertarian leanings led all potential candidates into the straw poll taking 30 percent of the vote. He beat out former Massachusetts governor Mitt Romney, by the way, who came in second with 23 percent of the vote.
So will Ron Paul make a 2012 White House bid? Here's what he said on "AMERICAN MORNING."
(BEGIN VIDEO CLIP)
REP. RON PAUL (R), TEXAS: I think there's a lot of people very, very interested. And some days I sort of think well, maybe if there were less I could just go away and relax a bit. But it seems like the enthusiasm of that -- those number of people, you know, makes me keep thinking, you know, what should I do and when should I do it. So it's not an easy decision for me. And I am still thinking about it.
(END OF VIDEO CLIP)
PHILLIPS: Donald Trump also made headlines at the conference and he says that Paul has a, quote, "zero chance" of getting elected.
Congressman Gabrielle Giffords can now lip sync the words to "Twinkle, Twinkle Little Star" five weeks after she was shot in the head during that Tucson rampage. Giffords' rep said that she's determined to learn to speak again. She is mouthing words, calling her astronaut brother-in-law. In a video, she even mouthed "happy birthday to you" as a surprise for her husband. Giffords began intensive rehab at a Texas hospital last month.
And a bit of warm-up for the central part of the country today, but other sections need to watch for blustery winds. Rob Marciano in the Severe Weather Center for us.
ROB MARCIANO, AMS METEOROLOGIST: Yes. Two spots.
PHILLIPS: That's still -- you know calming down a little bit but --
MARCIANO: We got a different kind of --
PHILLIPS: Different kind of week than last week.
MARCIANO: Intense weather. Yes.
PHILLIPS: Yes.
(WEATHER REPORT)
MARCIANO: High-profile vehicles and, you know, might have some trouble on the interstate. Or if you're traveling --
PHILLIPS: By an egg?
MARCIANO: By an egg, yes. Maybe that would a dangerous situation.
PHILLIPS: I was just -- looking at the clips we had. Why don't we start with that? Lady Gaga, the Grammys.
MARCIANO: Did you watch last night?
PHILLIPS: Coming in via egg. OK. She's just over the top. Now if you could, what would you come to work in?
MARCIANO: Yes. An egg, but I'd color it more like an Easter egg.
PHILLIPS: Yes. Maybe a little more pop?
MARCIANO: Yes.
PHILLIPS: Yes. All right. Well, as you know, egg and all she ended up doing pretty well. She got Best Pop Vocal Album for the (INAUDIBLE) "Monster."
Do you like her music?
MARCIANO: Oh, yes. Popping in the club. It rocks. But I think she was supposed to hatch right there in front of the paparazzi and that didn't work out.
PHILLIPS: That didn't happen?
MARCIANO: Theoretically --
PHILLIPS: Wouldn't you get claustrophobic?
MARCIANO: I wouldn't be able to do it.
PHILLIPS: Yes.
MARCIANO: Yes.
PHILLIPS: Neither would I.
MARCIANO: But I'm not Lady Gaga. I wouldn't be all --
PHILLIPS: Yes, that's true. Thanks god.
MARCIANO: She loves things she does.
PHILLIPS: All right. But here's the duet that I loved. Cee Lo and Gwyneth Paltrow. This was bad. Let's take a listen to this.
MARCIANO: Yes, I was surprised.
PHILLIPS: I thought it was Elton John for a minute and then I realized it was Cee Lo and the Muppets. And Gwyneth Paltrow, how sexy did she look? Wow.
MARCIANO: She looked great. And you know, that's a good nice way to soften up that song which is really controversial when you hear the non-radio cut of it.
PHILLIPS: Oh really?
MARCIANO: Yes.
PHILLIPS: You have to bring me up to date.
MARCIANO: Well, it's not supposed to be "forget you."
PHILLIPS: Oh it's supposed to be -- oh.
MARCIANO: Starts with an F.
PHILLIPS: The F word.
MARCIANO: Anyway, it's a catchy tune.
PHILLIPS: I need to get -- get into the program. Actually, that song is right up my alley.
MARCIANO: I think you'll like it.
PHILLIPS: That might be a theme song on really bad days.
MARCIANO: I'll (INAUDIBLE) for you on the Internet.
(LAUGHTER)
PHILLIPS: All right. Thanks for playing, Rob.
MARCIANO: You bet.
PHILLIPS: All right. So how would you react if one of your idols called you up on the phone at random?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: He answered the phone and he said, Annie, hey, how are you doing? And I almost had a heart attack.
(END OF VIDEO CLIP)
PHILLIPS: Yes. Her heart started palpitating after Eminem called her. Love her impression of him, by the way. It all started as an assignment in journalism class. We'll have her story just a few minutes.
(COMMERCIAL BREAK)
(MUSIC)
PHILLIPS: Well, the perils of public safety caught on tape, and it tops our look at Cross Country this morning, beginning in Pasco County, Florida. That where a deputy's dash cam captures his amazing Saturday morning rescue of a 63-year-old man trapped in his burning car. Deputy Kelly Endricks, pulling the man out of that fiery wreck just in the nick of time.
(BEGIN VIDEO CLIP)
KELLY ENDRICKS, DEPUTY, PASCO COUNTY SHERIFF'S DEPARTMENT: I wanted to get whoever's inside the car out, that was my main focus. That's why I went right to the first window, bashed that open first, hoping he'd come out the back. When he said he couldn't get there, I just went to the sunroof and hit that one open.
(END VIDEO CLIP)
PHILLIPS: Wichita, Kansas, a 10-year-old is making waves in his first year on the Neptune swim team. Andrew McLeod is legally blind, but it's not stopping him from becoming the best swimmer possible. His parents credit the weekly one-on-one coaching sessions that Andrew has received.
And the remains of a Nantucket, Massachusetts whaling ship with a connection to the literary classic "Moby Dick" has been discovered off the coast of Hawaii. The ship "Two Brothers," found 600 miles northwest of Honolulu, had been captured by George Pollard, Jr. Pollard was the captain of the whaler "Essex" when it was hit by a whale in the 1820s and sank in the South Pacific, inspiring that famous novel.
All right, let's Zoom In on Bloomfield Hills, Michigan, that's just near Detroit. And a young journalist with a very bright future. She's in the eighth grade and got a big-time interview with Eminem. Annie Reed is her name and, now, everyone wants to interview her. The story from Brandon Truttling of WXYZ.
(BEGIN VIDEOTAPE)
BRANDON TRUTTLING, WXYZ CORRESPONDENT (voice-over): A tad soft- spoken, Annie Reed's popularity here at East Hills Middle School is now at ear ringing levels after the huge Eminem fan got the opportunity that many of his fans can only dream of.
Weeks back, a journalism teacher at the school issued an assignment allowing students to pick something to write about.
ANNIE REED, EIGHTH GRADER WHO INTERVIEWED EMINEM: And I decided I wanted to write about Eminem because he grew up in Detroit, so I thought it'd be fun to do a piece on him. And my teacher told me, "You know, you're going to have to try and interview him."
TRUTTLING (voice-over): Pressure was on, and Annie responded.
REED: I sent 20 letters out that didn't get responses. I called Interscope and Shady Records, and I got a hold of some of his agents.
TRUTTLING (voice-over): And a week ago, she got to talk and interview you know who.
REED: He answered the phone, and he said, "Annie, hey, how you doing?" And I almost had a heart attack. TRUTTING (voice-over): Annie says they talked for about 10 to 15 minutes.
REED: He talked about how he really liked Detroit, because we're a city like no other, which is one of the things he said. He also told me what music he listened to growing up.
TRUTTLING (voice-over): After the interview was over --
REED: I called a couple of my friends, and I was jumping around, screaming. I was so excited.
(END VIDEOTAPE)
PHILLIPS: And no surprise, Annie definitely says she's thinking about a future in journalism.
Well, it's Valentine's Day. Plenty of talk about love, romantic dinners, maybe a late night rendezvous? How about debt? Well, that's a dirty little secret in a lot of relationships, and we're talking about how to deal with it.
(BEGIN VIDEO CLIP)
(MUSIC)
UNIDENTIFIED FEMALE: The worst valentine gift I've ever received was socks. Something like socks with little hearts and stuff all over it.
UNIDENTIFIED FEMALE: Cheap, bad, assorted gas station flowers.
UNIDENTIFIED FEMALE: Not one. No Valentine's gift is the worst gift I've ever received.
UNIDENTIFIED MALE: The worst gift I've ever given was a toaster. I thought that was a good, creative gift, but it wasn't.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
PHILLIPS: All right, when you think of pillow talk, "debt" really isn't the first word that pops into your mind, right? Credit card bills, invoices, high interest rates. Bottom line, Red ink is just not sexy, but it is a dirty little secret for a lot of couples out there.
So, we've enlisted some help to try and sort through the financial relationship baggage on this valentine's day . Michelle Singletary, syndicated finance columnist and the author of "Your Money and Your Man - How You and Prince Charming Can Spend Well and Live Rich." She's joining us via Skype from Miami.
So, Michelle, you say step number one, here, is stop the risky behavior. Easier said than done.
MICHELLE SINGLETARY, PERSONAL FINANCE COLUMNIST: It is definitely easier said than done. But you've got to do it.
Listen -- Happy Valentine's Day to everybody out there. People are going to restaurants and buying chocolate and giving teddy bears. But really, behind all of that -- that sweetness is a lot of sadness. And people need to stop the lying, we call it financial infidelity, the secret purchases, the clothes in the trunk, the credit card bills you haven't told your loved one about.
So, you're going to be all kissy-face today and, then, tomorrow all the stuff and the bad stuff comes right back into your relationship. So just stop it.
PHILLIPS: Even in the courting phase, right? You've got to be upfront about your debt and the money that you make or that you're not making, because once you're married, that could turn into a huge nightmare.
SINGLETARY: Absolutely. What people are always asking me, "When should you talk about money, when you're courting or dating? And I say, "Listen. The hon -- the first date is too soon and the honeymoon is too late.
So, when you're dating --
(LAUGHTER)
SINGLETARY: When you're dating someone, you want to look at their financial values. How do they deal with money? What do they think about debt? Those are the kind of questions, not what car he drives or what kind of job she has. But do they believe in tithing, for example? What kind of car do they want?
I was dating this guy once and on our first date, and he had just paid off his car note, and he was talking about his next car already. That brother didn't get another date.
(LAUGHTER)
PHILLIPS: And you -- and if -- if you're not strong like you, OK, and you know how to say, "Guess what, brother. You're not getting another date." You do say you need to get some counseling, you need to get some professional help. So, Is there -- are there -- is it your typical marriage counselor or do you suggest other types of referrals?
SINGLETARY: Definitely marriage therapy. And there are many more therapists, now, who actually have a component of their practice where they know about the financial part of it. So, they can talk to you about all the issues behind the money.
Couples think it's about the money, but it's never about the money. It's all the issues, the baggage you bring to the relationship. So, you want to find a therapist like that.
And listen, you can find one in your church. My church, actually, First Baptist Church of Glenarden in Maryland, wonderful church, actually has a program called "Do you think you want to get married?" And it's for people to sort of sort through a lot of these things even before you even think that you want to get married.
So, that's one place to look. Your job. Your benefits might include some therapy, some couples therapy. And guess what? Your boss won't know. They're not privy to this information.
And then, if you go online, you can type in "marriage counseling," and there are all kinds of associations where you can find a therapist in your local area.
And so, those are places. And just take this seriously. If you can't handle this yourself, if you're arguing and you need a mediator, you need to get some help, you need to get some therapy..
PHILLIPS: Yes, and you mentioned, too, that debtadvice.org, a credit card counseling -- or, a credit counseling agency, that's a good idea, too. Sometimes you'll want to stay away from the sort of personal types of counseling and really meet with a businessperson that knows how to direct you and how to deal with your money.
OK. Also, develop of financial health plan.
SINGLETARY: That's exactly right. Listen, when my husband -- hi, Boo. When we decided -- when we got married, we came up with a plan on how to handle our marriage. One of the things that we talked about was that neither one of us could buy anything over a certain amount without being in agreement.
Let's say our pinpoint is $200. So, he couldn't buy anything more than $200 and I couldn't buy anything more than $200. That's a health plan for your marriage.
One of the other things that we did was, it takes two yeses and one no. So, if one of us says, "No, you can't buy that Maserati," guess what? We can't get that Maserati.
And that means that you're putting into place some stop gaps so that you won't have these arguments.
And another thing is, put -- give each other an allowance. You get a certain amount of money you can spend without the other one getting on your nerves about it. This is simple stuff that people don't want to do, because they want to go off and do whatever they want.
But if you want a successful, healthy marriage when it comes to your money in particular, these are the kinds of things that you put in place so that you -- on this day and time, when you are at the restaurant, you really truly are happy, it's not just a facade.
PHILLIPS: All right, final question. What's your husband doing for you this evening? Or has he already done something this morning?
SINGLETARY: Well, you know.
(LAUGHTER) SINGLETARY: All year long. This is so funny. When Valentine's Day comes or his birthday -- actually, we're in Miami because it's his birthday, I won't tell you the big number, but he knows. I brought him to Miami for his birthday and Valentine's Day.
Now, you all, all my fans know how cheap I am. So I went all out for my boo, and I just want to say Happy Valentine's to him. Because he's made my life wonderful and guess what? When the money's right -- everything else is good, too.
(LAUGHTER)
PHILLIPS: Michelle Singletary. I agree with you. I'm in a beautiful relationship as well. It's like Valentine's is every day. Michelle, it's always fun talking to you. Thanks so much.
SINGLETARY: You're so welcome. Happy Valentine's Day to everyone out there.
PHILLIPS: And same to you. Share the love.
(STOCK MARKET REPORT)
PHILLIPS: So how do some veterans get rewarded for their service? With unsanitary surgical equipment, soiled sheets, and empty pantries. A VA hospital that has had at least a year to make improvements after another health debacle. Well, it still has a long way to go.
(COMMERCIAL BREAK)
PHILLIPS: It is half past the hour. Some stories that we're talking about this morning. Three days after toppling Hosni Mubarak from power, Egyptians return to Tahir Square to honor the protesters killed in that uprising. Now, while some citizens help clean up the square, dozens of others held their own protests. They say democracy is taking too long.
Protests turned violent in Yemen. Yet another Arab state caught in anti-government uprising. Witnesses say that hundreds of men supporting the president converged on the rally and some of them even pulled out knives. Washington is worried that terror groups in Yemen could seize on the instability there.
And this morning on Capitol Hill , lawmakers looking over the White House's proposed budget cut -- $1.1 trillion slashed over the next decade. Republicans lawmakers say those cuts just aren't deep enough.
Well, it is hard to believe that we're talking about this topic, but sadly there is no shortage of examples. Our veterans, our warriors, our heroes, failed again by a system that's supposed to help them. A year after a VA hospital in St. Louis might have exposed hundreds of veterans to hepatitis and HIV, well, it's back in the news.
Its operating rooms shut down because of contaminated equipment. Here we go again. An investigation also showed soiled linens, empty pantries and what some critics call, dangerously low staffing levels. Missouri Congressman Russ Carnahan had a meeting late last week with the VA director to talk about this. Carnahan's on the phone with us now.
Congressman, first of all, how did that meeting go with Secretary Shinseki? Are you happy with what you heard? Obviously you haven't gotten the results that you asked for a year ago.
REP. RUSS CARNAHAN (D), MISSOURI (via telephone): Well, you know, I'm from the Show Me State and we've had some very frank conversations. We want to see results. We had a very frank and very direct conference about these multiple ongoing problems, and also about the multiple investigations that are ongoing that we expect results from very soon.
And those to be -- We want the secretary to use those as powerful tools to reform this system and to be sure we get a top to bottom review of the Cochran VA Medical Center, where they have had some of the lowest patient satisfaction scores in the entire VA system. That's not what our veterans deserve and that's not what they've earned.
PHILLIPS: Now, Congressman, this is the same conversation we were having a year ago. Where are the checks and balances? The VA even said, it came all the way from the top, that changes were going to be made, that veterans, that health care is the number one priority. I mean, we're getting the same song and dance and yet, we're seeing the same problems exist.
CARNAHAN: We have. And it's one of the great frustrations here. I'm going to continue to press the VA and work with our local leaders at the VA, our veterans in the St. Louis region , to be sure we can get a comprehensive turnaround plan for this particular facility.
There have been positive changes. They are in the process of building a new sterilization unit at the facility. It's not up and running yet. But we've got to continue to press to get these changes made better and sooner.
PHILLIPS: And it's not just you. Let's talk about other members of Congress there, that are appalled at this. Senator McCaskill now talking about this plan for veterans to judge their care.
Can you tell us about that?
CARNAHAN: Well, you know, one of the best things for us to do is to listen to veterans. They're the ones that are, you know, have stood up for us, around the world to protect us. This is a way for us to listen to them and stand up for them.
And our VA system nationally provides some great care. So we have to be sure and acknowledge that. But, we're really focused on some of the ongoing, systemic issues at the Cochran VA so we can turn this facility around. And we're going to do that best by --
PHILLIPS: You also said --
CARNAHAN: -- I think by listening to veterans.
PHILLIPS: Well, you set up a place on your web site, as well, for veterans to air out their issues.
What's the best web site for vets to reach out to, Congressman?
CARNAHAN: Well, I hope our St. Louis regional vets will connect with us. We're gathering their stories at carnahan.house.gov. And -- but also, their local veterans organizations. We need them at the table to be sure to continue what the VA is doing well, but get to the bottom of who is responsible for the shortcomings. We get these changes made and really get this particular facility turned around.
PHILLIPS: Congressman Russ Carnahan. Hopefully the next time we have a conversation, these problems will be fixed.
Thanks, Congressman.
CARNAHAN: I hope we'll be talking about the reforms and the new VA there.
PHILLIPS: Amen.
CARNAHAN: Thank you.
PHILLIPS: Well, if all of this sounds familiar to you, there is a good reason. The St. Louis facility that we're talking about -- John Cochran VA Medical Center. Well, last year about 1,800 vets could have been exposed to HIV and hepatitis at the dental clinic there.
And there's been so many other examples over the last couple of years that we've talked about. You know, last week we told you how 500 vets around Dayton, Ohio, might have been exposed to HIV and hepatitis over an 18-year period because of a sloppy dentist.
In 2009, hundreds of vets were possibly exposed to HIV and hepatitis through dirty colonoscopy equipment at centers in Miami and Murfreesboro, Tennessee. Then a facility in Philadelphia botched prostate cancer treatments.
And in 2009, about 600 vets got letters from the VA informing them that they had the cruel Lou Gehrig's disease. Basically told them they were going to die soon. Turned out, the letters were a mistake. A coding error, according to the VA.
More from the CNN NEWSROOM straight ahead.
(COMMERCIAL BREAK)
PHILLIPS: All right. Let's take a look ahead at what's making news later this week. The 135th Westminster Kennel Club Dog Show gets started tonight with the final slated for tomorrow evening. Don't bark at us if you miss it.
Wednesday, Dexter County, Texas. Miss San Antonio goes to court hoping to keep her tiara and title as she competes for Ms. Texas honors. Pageant officials say they had second thoughts after Ramirez gained wait and was late to various Miss San Antonio functions. Ramirez has a temporary restraining order, delaying her crown from possibly being stripped until Wednesday's hearing.
And Friday marks the 10-year anniversary of the death of Dale Earnhardt Sr. It was turn four on the last lap of the 2001 Daytona 500, when the Intimidator wept into the wall one final time. And even in death, the elder Earnhardt remains one of the sports most beloved drivers. Big E, and number three, to be warmly remembered, come Friday.
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UNIDENTIFIED MALE: History was made Friday when Egyptian President Hosni Mubarak bowed to pressure from peaceful protesters and stepped down from office. No word what he'll do next but there's really only one job available for an 82-year-old man.
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PHILLIPS: Now earlier I told you that Texas Congressman Ron Paul won the presidential straw poll at the gathering of conservatives in Washington over the weekend. But who were the other winners coming out of the conference?
CNN's political director joins us from the politics desk in Washington. Paul Steinhauser. So who is smiling this morning?
PAUL STEINHAUSER, CNN'S DEPUTY POLITICAL DIRECTOR: I think Mitt Romney maybe smiling Kyra and here's why. Listen, this is the Conservative Political Action Conference; it's the largest annual gathering of conservatives. Romney, the former Massachusetts governor who ran last time, he's considered more the establishment candidate. So he finished second. I guess you could say a pretty decent finish there and maybe he's kind of happy.
Somebody else who could be considered smiling, somebody who wasn't even there -- Chris Christie, the governor of New Jersey. You know, Kyra, he keeps saying I am not running for the White House. But he finished third and tied for third in the balloting there. Not bad for somebody who didn't show up, didn't speak and says he's not interested in running for the White House -- Kyra.
PHILLIPS: All right and also Paul, the straw polls, what's your take? I mean, do they really matter?
STEINHAUSER: Well, yes and no. Yes, because this is CPAC, the largest gathering of conservatives. And let's take Romney for instance, he won four years ago, a similar situation a year before the primaries. He went from being basically a small lower tier candidate to -- one of the top tier candidates because of his victory at CPAC.
Look, here is the other side of it, the no, listen, CPAC has never gotten it right, and for Ron Paul winning it two years in a row, somebody who is not considered, somebody who could win the Republican nomination maybe it kind of dilutes a little bit.
And one other thing, Kyra, check this out. They also asked on that straw poll ballot, do you like the current crop of candidates or potential candidates on the Republican side or do you want somebody else? Look at that 43 percent say they are not satisfied, they are looking for somebody else. Maybe there is a Republican out there we don't even know about yet Kyra, who could maybe become the nominee -- Kyra.
PHILLIPS: Well, there's always a surprise. Isn't there? Thank you, Paul.
STEINHAUSER: Yes.
PHILLIPS: We're going to have your next political update in just about an hour. And a reminder for all the latest political news, you can always go to our Web site 24/7, CNNPolitics.com.
All right, today's "Flashback" and fitting in light of last night's tribute to Aretha Franklin at the start of last night's Grammys. It was on this date 44 years ago, the queen of soul laid the vocal tracks down on what was to become her first number one hit. We're going to show our favorite diva a little respect this morning.
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(ARETHA FRANKLIN PERFORMING "RESPECT")
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PHILLIPS: Well, the potential carryover from the Egyptian revolution, will it inspire people and other Middle East nations to challenge their government with calls for greater democracy? Namely, Iran?
CNN's Zain Verjee live in London with our "Morning Passport" among other stories going global today. Hi, Zain.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Hey there, Kyra. How are you?
We're keeping a close eye on what's happening in Iran right now. Basically protesters and security forces have clashed in Tehran. Rubber bullets and tear gas has been fired, and the home of the opposition leader Mousavi has been blocked.
People though are still out on the streets. Many Kyra, are scared to go on the streets, so just look at what they were doing last night. They're too afraid to go out on the streets, so people were on their balconies or in their homes just shouting "Allahu Akbar" which translates into "God is great." That's their way of resisting the regime.
The U.S. State Department Kyra, has also launched this new Farsi Twitter feed basically to try and connect with users in Iran. The State Department says that it really wants to start a conversation with Iranians that way.
People that had no problem getting out on the streets and demonstrating were women in Italy and they were upset with Silvio Berlusconi, the Prime Minister embroiled in a sex scandal. And their message to him was basically that Italy is not a brothel. They went out on the streets saying that Italy you know, has -- is a country that has respect for women and has values. Berlusconi himself said that he's not going to step down as Prime Minister and that he was -- he respects women.
Kyra, there's another story I'm following closely, and it could be a total nightmare for someone like you who is a chocolate lover. Some experts are saying that there may be a chocolate drought, you know, and the reason for that is in Ivory Coast a lot of people have been fleeing because of the violence and instability in that country.
They've just been leaving, and that's where 40 percent of the world's cocoa exists and is made. So the farmers aren't there and the expertise in making the cocoa means that there's less -- basically, it's going to drive up the prices of chocolate.
So I know that you may -- you may hurt -- you may be hurt by that.
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PHILLIPS: So what are we going to do? What are we going to have instead? Because I know you -- I know you have had lots of chocolate with me. So you know, what's our alternative?
VERJEE: Well, since its Valentine's Day, if we don't get chocolate, I think roses. Kyra, you know, that -- that's a good substitute.
What's your favorite chocolate anyway?
PHILLIPS: Oh my gosh, I love, love, love just milk chocolate. A really good, milk, and of course chocolate --
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VERJEE: Yes, just not dark?
PHILLIPS: Yes, exactly. By the way, happy Valentine's Day.
VERJEE: All right.
PHILLIPS: Thanks for wearing red for us.
VERJEE: Happy Valentine's Day. Yes, I know, I was going to say, you're wearing yellow. What's going on?
PHILLIPS: I thought it was Easter. I screwed up. I love you.
VERJEE: I love you.
PHILLIPS: All right, we're following lots of developments in the next hour of CNN NEWSROOM. Let's check in first with Pentagon correspondent, Barbara Starr. She's live in Washington. And hey, all right, everyone's got their red on this morning. Happy Valentine's Day, Barbara. Take it away.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: You, too, Kyra.
So how many of your tax dollars Kyra, is it going to keep to -- to take to keep the U.S. military rolling along next year? We'll have that story coming up.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: I'm Stephanie Elam in New York. Love is in the air, America. Do you feel it? Apparently you guys are feeling a little bit more romantic out there because folks are spending a little bit more this year. I'll tell you by how much more coming up in the next hour.
ROB MARCIANO, AMS METEOROLOGIST: And if part of your Valentine's Day requires a -- a cold shower, how about a polar bear plunge? We'll have a video of that out of Portland. Plus a snow (INAUDIBLE) in Florida and the blustery conditions across northeast, all in the next hour -- Kyra.
PHILLIPS: Is that true, Rob? Are you spending money on Valentine's Day like Stephanie says you should be?
MARCIANO: It's not about money. It's all about what's in your heart.
ELAM: But men always spend more. Come on, men always spend more.
PHILLIPS: Barbara, do you want to weigh in?
STARR: I think as they say here at the Pentagon, I have nothing for you on that.
PHILLIPS: All right, guys. See you next hour, which is in about four minutes away.
Love then marriage? Not necessarily? Apparently one Texas woman planned her dream wedding, the ring, the dress, the date, before even meeting Mr. Right. We're talking to the wannabe bride behind "Project Husband". That's coming up in the next hour of the CNN NEWSROOM.
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PHILLIPS: Can't believe it's been ten years, Jeff Fischel, since Dale Earnhardt died. It happened on my shift. I remember it like it was yesterday.
JEFF FISCHEL, HLN SPORTS: Nascar fans have not forgotten and they will not forget this week. Dale Jr., of course, huge for him this week; his father lost his life ten years ago at the Daytona 500. Yesterday at the trials -- there's Dale Jr. -- he won the pole position for next Sunday's 500. Dale Jr. says he doesn't want to talk about what it would mean if he should win but boy, would that be a fairy tale for him to pull it out next Sunday.
All right. Let's go hockey, big brawl and big fines. The Islanders and Penguins slugged it out on Long Island; the Friday night game, 346 penalty minutes, 10 ejections. Pens owner Mario Lemieux, the former great, says, you know, he's almost embarrassed for the league right now. Two Islanders suspended for 13 games, the team itself -- the Islanders -- fined $100,000 for this.
All right. Maybe golfer D.A. Points should hire comedian Bill Murray to be his caddy full-time. They're at the Pebble Beach Pro-Am. They're teamed up. Murray can be a little distracting on the golf course. There he is, making sure the putt goes down. But, Points said he's just what he needed. He needed a little fun, he needed a little distraction. Points actually won his first PGA event, pulling it out of Pebble Beach. He says, you know what, Murray with all the antics, that was what helped me -- it kept me loose.
PHILLIPS: Kept him relaxed.
FISCHEL: Because he would have been thinking about it.
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FISCHEL: A guy who does need to loosen up a bit on the golf course. Of course, Tiger Woods just heard -- Tiger Woods has been fined for spitting at the event. He was just overseas this weekend.
PHILLIPS: Oh, God.
FISCHEL: Maybe that might be something you might see Bill Murray do at Pebble Beach and people would laugh but Tiger's getting fined for it.
PHILLIPS: Well, it fits right in with all his other tacky behavior.
Thanks, Jeff.
FISCHEL: Saying nothing. I'm saying nothing.
PHILLIPS: Happy Valentine's Day.
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