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Case against Former IMF Chief in Doubt; NBA Locks out Players; 2012 Campaign Money Watch; Monaco's Prince about to Wed; Debt Talks: Both Sides Dig In; Preparing for Hot Dog Eating Contest; President Obama Called 4-Letter Word

Aired July 01, 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: It's 9:00 a.m. on the East Coast, 6:00 a.m. out West. I'm Kyra Phillips. Thanks so much for joining us.

Rebuttal witnesses taking the stand in the Casey Anthony murder trial. The judge says the case could go to the jury this weekend.

The Los Alamos National Lab closed fifth day as high winds make problems for fire crews. Ninety-four thousand acres have burned. The lab officials say toxic materials are safe.

The royal couple wakes up in Canada this morning. Prince William and Catherine in Ottawa. Their first official trip since their April wedding.

We begin with a bombshell announcement in that shocking criminal case. There may not have been a crime after all. Sources say that prosecutors now have serious doubts about the hotel maid who accused Dominique Strauss-Kahn of sexually assaulting her.

The accusations cost him his leadership of the International Monetary Fund and likely his bid to become France's next president.

Susan Candiotti has the latest.

So, Susan, what are the specific issues regarding her credibility right now?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: What a huge development this is, Kyra. Good morning to you.

I'm told by a source familiar with the case that there are at least four or five issues. One of them involves an application that she made, an asylum application when she came to the United States from her native Guinea. In it, evidently she said that she was sexually assaulted.

And now I'm told by sources that she was very believable, the facts simply weren't adding up and that turned out to be an outright lie in the words of the source familiar with the case.

There are other matters including -- reportedly according to "The New York Times" a relationship she currently has with someone who is in jail here in the United States in New York on drug and money laundering charges.

But what's stunning is that these disclosures were made by prosecutors to the defense team of Dominique Strauss-Kahn in a meeting yesterday, Thursday.

PHILLIPS: So what exactly is expected to happen today in court?

CANDIOTTI: Well, armed with this information, prosecutors will be making an official court filing. And at court, that certainly will be discussed, as well as an application to modify the circumstances surrounding Dominique Strauss-Kahn's bail. Remember, he's currently being held on $6 million bail or rather he's been allowed to live on his own under house arrest, in effect, on that bail agreement.

So they asked to modify that. He might even ask for his passport back but I am told that's unlikely. He might be allowed to travel, however, within -- in the United States. We'll see.

PHILLIPS: All right. We're watching it. Susan Candiotti, thanks so much.

And here the NBA lockout is now nine hours old and nobody knows if it will take weeks, months, or even a missed season for the players and owners to work out a new deal.

Mark McKay, everybody knew that this lockout was coming but it's still tough for fans to take.

MARK MCKAY, CNN SPORTS ANCHOR/CORRESPONDENT: It is. And the wonderment is out there, Kyra. Will an entire season be lost because of this NBA lockout which went into effect just after midnight New York time?

Basically, it does come down to money in this whole deal. The owners, they want a hard salary cap. They want to keep a bigger share of the $4 billion in basketball-related income. Players, meanwhile, they oppose the hard cap. They contend it's not a viable way to achieve competitive balance. NBA says it will lose nearly $300 million and that 22 of their 30 teams will lose money this year.

So the lockout is in effect. So what does this exactly mean? Well, during the lockout, there can be no communication between the teams and the players. Paychecks will be on hold as will health care. So if a player, say, gets injured in training or in rehab or even playing on a neighborhood basketball court, it's on them to get their insurance coverage.

Trades and signings have been put on hold and but negotiations toward a new collective bargaining deal which expired can continue, although, Kyra, there's no indication as to when either side will go back to the bargaining table.

PHILLIPS: All right. So we were talking about this morning. We've got the NFL issue and the NBA issue. You've also got the Dodgers. Apparently, you know, as we know, filed for bankruptcy, can't even pay the employees. Their checks had bounced. What's going on in pro- sports?

MCKAY: It's a perfect storm and nobody wants to endure the storm, do they, Kyra? All three are very different. The NBA claims, you know, it's lost money for several seasons and years. They want to get that back in the balance.

The National Football League currently in its lockout says -- you know, they make money so it's not about whether they lose money but how to divvy up the profits.

And of course the Dodgers, that's a complete order in its self. It's one team owner and the alleged recklessness that he had to use that team as a personal ATM during his divorce proceedings.

So all three making headlines for very wrong reasons but making big headlines nonetheless -- Kyra.

PHILLIPS: We're following all three. We'll have more on the NFL next week.

Mark, thanks so much.

MCKAY: OK.

PHILLIPS: All right. Well, the numbers are out. No, not the poll numbers, not the Dow Industrial. We're talking about the big number of bucks that your presidential candidates are raising to win the White House.

So, Jim Acosta, who's got the biggest bank?

JIM ACOSTA, CNN CORRESPONDENT: Yes, you know, sometimes these are the numbers that count, Kyra, this morning.

It looks like at this point, the person who's got the biggest bank right now is Mitt Romney. We haven't gotten any official totals in right now. But yesterday his campaign did confirm that he is expected to bring in between $15 and $20 million in the first quarter of fundraising this year.

That is a lot of money. Not as much money as he raised for the 2008 campaign but still way ahead of the rest of the pack.

Jon Huntsman, we can mention, he also has a pretty big fundraising hall for a guy that not a lot of people know about. $4 million. We should mention, though, half of that is money he kicked in himself. He is part of a very wealthy family that owns a chemical company out there in Utah. So not too surprising there.

And one thing we can tell you this morning is that President Obama's reelection campaign, they are very proud of the fact that they have a roughly 490,000 contributors who have donated so far to the president's campaign. That is a number that they are tweeting out and getting out today. That is way more than he had back in 2007. Of course, not too surprising back then. He was sort of a long shot for the White House. And speaking of presidential runs, we should mention that we are getting reports and we are expecting to see Thad McCotter, a congressman from Michigan, Kyra. Not a lot of people know about this guy nationally but he's well known up in Michigan, well known in Tea Party circles.

He is expected to file his paper work today to run for president. And one interesting footnote about that, McCotter plays the guitar. So we might see him out on the campaign trail striking a few cords. And you know if he decides to run and perhaps gets the nomination, he could bring Jon Huntsman on his ticket.

PHILLIPS: I was going to say they could start a band.

ACOSTA: Jon huntsman plays the keyboard.

(LAUGHTER)

ACOSTA: We'd have a whole band to contend with out there on the campaign trail. Might liven things up. Who knows?

PHILLIPS: Yes. Exactly. Then you have to worry about artists getting upset about certain songs being used at campaign rallies.

ACOSTA: That's true.

PHILLIPS: Yes. Exactly.

ACOSTA: They could have their own songs.

PHILLIPS: Tom Petty might support this.

All right. Jim, thanks.

ACOSTA: That's right.

PHILLIPS: OK. We'll 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 right here CNNPolitics.com.

A royal wedding, whispers of intrigue and a nod to vintage Hollywood. There's an intoxicating stew of juicy tidbits in today's wedding of Monaco's Prince Albert, the only son of Prince Rainier and former starlet Grace Kelly.

And of course our Zain Verjee has been following the scoop daily on this.

I don't know. Is it going to happen? Is she a runaway bride? What is going on? Nobody can get to the bottom of this.

ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: Well, she's got a couple of hours left only to decide whether she's going to bolt or not and leave him at the altar.

The situation is this. I was going through the program here. Will she or won't she go through it? Right now, they are getting ready for a civil ceremony and then afterwards there is going to be a picnic. And then tomorrow, there's another ceremony, Kyra. It's going to be a religious ceremony and fireworks are going to happen after that.

Now I'm not sure what kind of fireworks. They're hoping the regular kind of July Fourth fireworks. And a lot of people are rooting for them. The 3,500 guests there. Giorgio Armani is there, the French President Nicolas Sarkozy, supermodel Naomi Campbell, as well. Richard Branson is going to be there, too.

But all of this celebration is being overshadowed by a report that she tried to bolt and she went to an airport in Niece and tried to buy a one-way ticket to South Africa because she was learning all these alleged secrets that Prince Albert had kept and she just wanted to go.

Listen to what the couple had to say before all this drama. Listen.

(BEGIN VIDEO CLIP)

PRINCE ALBERT, MONACO: Not too nervous, not too emotional. I've got a lot of things to worry about in other areas before that day and so just trying to make sure everything goes well.

JIM BITTERMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Charlie?

(LAUGHTER)

BITTERMAN: You're calm, collected?

CHARLENE WITTSTOCK, FIANCEE: Yes, I'm fine. I mean I haven't got any problems so far.

(LAUGHTER)

WITTSTOCK: Everything seems to be going really well. And I'm excited and can't wait.

(END OF VIDEO CLIP)

VERJEE: Our reporter Jim Bitterman speaking to the two of them.

Will they be happily married, Kyra? Well, we'll find out in the next couple of hours if everything goes smoothly. The palace had denied that there's any rift between the two of them and says the bride absolutely does not have cold feet. The price tag for this wedding, only $100 million -- Kyra.

PHILLIPS: Oh, my gosh. OK, Zain. I cannot even imagine. We will be following the intrigue.

Well, coming up, what a welcome. Big crowds come out in Canada to see Britain's new princess. Oh, yes, and that other guy, too, traveling with her. We're live out of Ottawa.

A closer look at the possibly crumbling case against Dominique Strauss-Kahn. Just ahead, the extraordinary twist. (COMMERCIAL BREAK)

PHILLIPS: Checking stories "Cross Country."

In Minnesota Governor Mark Dayton calls it a day of great sorrow. For the second time in six years, stalled budget talks shut down Minnesota's state government. Few state agencies left operating do so with just skeleton crews now.

And in Georgia today, some of the state's top new anti-immigration laws go into effect. Monday a federal judge put the kibosh on two of the more controversial parts of that law namely police checks on immigration status of anyone suspected of being in the country illegally.

And along the San Francisco Bay, more than 5,000 commuters have to find another way to work this morning. There's no Golden Gate ferry service because of a one-day labor strike by the ticket takers.

And on that extraordinary new twist in the Dominique Strauss-Kahn legal case. Sources say prosecutors now have grave doubts about the hotel maid who accused him of sexual assault. The allegations cost the Frenchman his job as head of the IMF.

And our next guest has worked in the legal system on both sides of the courtroom. Holly Hughes, criminal defense attorney and former prosecutor.

So, basically, what's come to light is this woman who made the sexual assault allegations has a questionable background?

HOLLY HUGHES, CRIMINAL DEFENSE ATTORNEY: That's exactly right, Kyra. What we're finding out today and we're finding it out from the prosecutors. Remember, that a prosecutor has a duty to release not just favorable information, but you know stuff that's going to harm their case as well. It's called Brady material.

And so they have found out that this victim who is alleging sexual assault by Strauss-Kahn has had ties to people who are locked up for drug trafficking charges and money laundering charges and very huge amounts of drugs and money moving through these folks' hands.

We've also found out, Kyra, that on her asylum application when she tried to get into the United States, she had made allegations of rape in the past that were not substantiated.

So this is a credibility question. This comes down to -- is her word credible? And the prosecutor has to reveal to the defense side, even though it's harmful to them, hey, guys, you need to know there's these issues.

PHILLIPS: So she's made allegations of rape in the past. So is the idea here that possibly this could have been some sort of setup?

HUGHES: Well, it is a possibility. We have to remember that what we have here is the gold standard of evidence. We have DNA. But the very unique thing --

PHILLIPS: So something did happen because of that.

HUGHES: Something happened.

PHILLIPS: Right.

HUGHES: Absolutely, Kyra. But the unique thing about a sexual assault allegation is that even though you have evidence which in any other case would be slam dunk. You found someone's DNA on a murder scene, you would think a bad sign.

But with sexual assault, the accuser can still say consensual and then it's about the he said/she said. It comes down to credibility because the DNA can very reasonably be explained. That's what we're looking at in this situation now.

And Strauss-Kahn's supporters are saying what they have said all along, this is setup. This is political sabotage. And the prosecution really has to rethink whether or not they're going to go forward. And the talk is, Kyra, they are considering dismissing the felony counts and possibly talking about a plea deal to some misdemeanors.

PHILLIPS: Wow. All right, we will follow it. That will change the whole dynamic.

HUGHES: Yes, it will.

PHILLIPS: Thanks, Holly.

HUGHES: Thank you.

PHILLIPS: For luck, some baseball players don't shave in the playoffs, by the way. Hockey players smack the goalie's pads before the start of the game.

So, what about tennis players? We're going to take a look at the Wimbledon superstitions.

And is the lure of a cold beer or crisp wine enough to get diners in the door? Some fast food locations are hoping so.

(COMMERCIAL BREAK)

PHILLIPS: Let's get some showbiz headlines for you.

Octomom roaring back into the headlines with a pretty jaw-dropping interview. According to "In Touch" magazine, Nadia Suleiman say her babies disgust her and her older kids are animals. These would be the 14 children, by the way, that she underwent IVF treatments to have.

Actor Tobey Maguire trying to distance himself from a scandal. Lawyer of Maguire denies any wrongdoing in connection with that high stakes Hollywood poker ring. The guy who ran it is convicted of running a Ponzi scheme and now, there's a lawsuit to try to get some of the victims' money back.

And Los Angeles police recruiting celebrity volunteers are asking stars with lots of Twitter followers to spread the word part of a local freeway will be closed this month. William Shatner has agreed to help and got a plug-in for his new project, "L.A. friends., have you heard about Carmageddon? The 405 will close on July 16th and 17th. Stay at home preparing for The Captains on 7/21."

Ashton Kutcher also stepped of, kind of, after winning -- or warning, rather, of closure that he tweeted, "In exchange, I would like a free pass on the spotlight ticket. It was yellow!"

Well, Stevie Wonder famously saying the song "Superstition ain't the Way." But don't tell that to tennis players like Rafael Nadal.

Wimbledon men's semifinals are today.

And our Zain Verjee has been digging into players' superstitions.

So, what do you think? Are we going to see the rabbit feet or maybe the horseshoes out there on the court, Zain?

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Well, Kyra, I'm following the really important stuff today. This is a big one. OK? Wimbledon men's semifinals.

Let's go to Andy Murray. He has been growing and growing and growing his beard and there's all those chatter on social media whether this is just a superstition and he's just doesn't want to shave it because if he does, he might lose.

Now, Andy Murray himself says he's just lazy, that's why he's not doing it.

Let's Rafael Nadal and that's who he's playing. Now, Nadal has this weird thing where he lines up his water bottles exactly right, facing the court and the labels have to be facing absolutely perfectly. Also he will not get on the court unless he avoids the white lines. So, he doesn't step on them because he thinks it would be bad luck.

Let me show you a picture of Novak Djokovic, also a semifinalist. He actually avoids using the same shower twice in a row. Everyone saying, oh, he's just superstitious. He's saying it's his thing. It's a routine thing.

And, finally, OK, the other guy. He is playing, Jo-Wilfried Tsonga, amazing player, by the way. I'm actually rooting for him. His superstition is don't have any superstition. And it seems to be working for him.

We don't know of any, but we will find out whose worked and who didn't by the end of the day. Kyra, do you have any superstitions?

PHILLIPS: I don't have any superstitions.

VERJEE: You don't? PHILLIPS: No, no, I don't.

VERJEE: Not even one.

PHILLIPS: I have a lot of good luck charms, though. I have them all in different --

VERJEE: What?

PHILLIPS: They usually involve little angels of some sort. What about you? Any good luck charms? Any superstitions?

VERJEE: I do. I won't walk under a ladder because I think it's bad luck. I always knock on wood or on my head if I can't find wood. The only thing is I have to have things color coded, otherwise, I can't concentrate.

As you can see with my note, everything has to be black, blue and red. Otherwise, I can't concentrate. My highlight is out in different colors. That's the only thing, but that's more obsessive compulsive.

PHILLIPS: Yes. Exactly, I think we're more OCD than anything else.

Thank you, Zain. Well, you always bring us luck, that's for sure.

Two American icons, fast food and cold beer. As we go into this Fourth of July weekend, we ask you: do they belong on the same menu?

Alison Kosik at the New York Stock Exchange with more of what could become a dinnertime trends. Tell us, Alison.

ALISON KOSIK, CNN CORRESPONDENT: You know, Kyra, sometimes, you just want to kick back and, you know, have a beer and a burger and it's really not the usual option at fast food places. But now, it's all about how to lure the customer in and, hey, what better way than to sell booze?

Two Sonic locations in Florida are going to soon begin selling beer and wine at their stores and you're going to have a few choices here, three draft beers, 25 bottled ones and 10 different wines. Now, the thing here, it's not going to be served to people who eat in their cars, though.

Burger King, by the way, already offers alcohol at specialty whopper bar locations. Chipotle sells beer and so does Starbucks in four of its shop and adding shop. Starbucks is kind of a double fisted. A little coffee, a little beer, you're all set to go for the morning, Kyra.

PHILLIPS: Bad economy is the justification for drinking booze?

KOSIK: You know -- yes. You know what? It could be part of it because you think about it. Sometimes it's hard for these places, these fast food places to compete with chains like Applebee's and Friday's, you know, where you can have an affordable meal and a drink with it. Some experts say offering beer and wine could boost slow evening business. But, you know, all this doesn't come without its critics. Some are worried about people having this quick meal and a drink and then getting behind a wheel. Others worry it sends the wrong message to kids.

Another concern here the combination of fast food and beer could also add to the obesity epidemic.

There's always a critic for everything.

PHILLIPS: Yes, there is. Alison, thanks.

Well, coming up, Prince William and Princess Kate spending first full day in Canada. We'll see how they are being received.

Also ahead, a new twist in the case of Amanda Knox, American college student convicted of murder in Italy.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now:

The sexual assault case former IMF chief, Dominique Strauss-Kahn, could be in jeopardy. A source familiar with the case tells CNN that prosecutors have found major credibility problems with the hotel maid who accuses Kahn of assault.

A judge declares an indefinite recess in the Casey Anthony murder trial. Yesterday, the defense rested its case without Anthony testifying. The prosecution was expected to call rebuttal witnesses today.

And the NBA still in limbo. Owners begin a lockout until the collective bargaining agreement can be hammered out with the players union.

Well, forget a royal reception. Prince William and Duchess Kate are getting a rock star reception from Canadians. They are in Ottawa today.

And our Max Foster is there.

Max, let's talk about what they'll be up to.

MAX FOSTER, CNN CORRESPONDENT: Yes. We'll get ready for the big one. There are thousands and thousands of people showing up here in Ottawa for Canada Day celebrations. Of course, the guest of honor this year, are the duke and duchess and people are genuinely excited.

You can see some of the crowd gathered behind me. There's going to be a changing of the guard ceremony. So, lots of pomp and pageantry. You're also going to see them arriving here at opened-top carriage. They're going to relive the royal wedding and the crowd definitely excited about this one.

(BEGIN VIDEOTAPE)

FOSTER: Where are you from?

UNIDENTIFIED FEMALE: From outside of Toronto.

FOSTER: And on full display coming here? The ring. The Diana/Catherine ring. So, you are Catherine fans?

UNIDENTIFIED FEMALE: We are Catherine fans, yes.

FOSTER: And you come up -- I came over here because you've got the ultimate, I think, slogan, which is just creative. Will and Kate, you're worth the wait.

UNIDENTIFIED FEMALE: We have been waiting since 11:00 last night. So, they're definitely been worth the wait. No sleep, but we're good. We're hanging in there.

FOSTER: Catherine fan?

UNIDENTIFIED FEMALE: Huge Catherine fan. She's gorgeous. Just beautiful.

FOSTER: Excited?

UNIDENTIFIED FEMALE: Very.

FOSTER: Excited?

(CHEERS)

(END VIDEOTAPE)

ANNOUNCER: The duke and duchess of Cambridge.

FOSTER: That's nothing, Kyra. We are about position there. It's completely jam-packed now. So, we're going to see lots of that later on today. They've got it all set up.

PHILLIPS: What are they announcing behind you? I heard their name. There's -- what's going on?

ANNOUNCER: Welcome you to Canada's capital region.

FOSTER: Yes. Well, basically, there's a huge stage to my side and we'll show you that later on. But it's a big Canada Day celebration. There's going to be lots of cultural performances and that's what today is really about.

Their first engagement, though, is that citizenship ceremony where 25 international people are going to become Canadians and it's going to be interesting to see William's reaction there because the Canadians have to pledge allegiance to the sovereign, currently the queen, his grandmother. But one day, it's going to be him.

So, a poignant moment for him. Also, a poignant moment because today would have been Diana's 50th birthday. So, certainly, a lot of coverage parallel to Catherine and Diana yet again.

PHILLIPS: Wow.

FOSTER: You know, (INAUDIBLE). You know, there are some similarities if you look at the way she works the crowd. She's got that gift.

PHILLIPS: Absolutely. A lot of people have compared the two. Max, talk to you again soon.

Well, this morning, a source tells CNN that Treasury Secretary Timothy Geithner is considering leaving his post. He's the last remaining member of the president's original economic team. Geithner says that he will remain at his job, quote, "for the foreseeable future."

Source tells us he could leave after a deal is reached to raise the national debt ceiling.

Such a compromise doesn't imminent though. Both Democrats and Republicans appear to be digging in their heels as the August 2nd deadline approaches.

Kate Bolduan is up on the hill.

So, Kate, where do things stand this morning?

KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: Not much further along, if at all, really, quite honestly, Kyra. There still is a very big divide between Democrats and Republicans in both terms of policy, as well as the politics of this negotiation to raise the federal debt ceiling.

And right now, it's centering largely on the issue of taxes. Democrats continue to insist that any package have to include new revenue and they are proposing, they propose somewhere in the area of more than $400 billion of new revenue. To do that, that would include closing some corporate loopholes which they absolutely railed against on the Senate floor yesterday and also limiting some deductions.

On the flip side, Republicans say there is a reality that everyone needs to face here, that anything that amounts to a tax increase cannot pass the House, the Republican-controlled House. And so, they say that is absolutely a no-go.

As you said, it seems both sides are digging in their heels at this point. At the same time, Democrat sources, officials have told CNN that they are kind of pushing to accelerate this deadline at this point, pushing for a deal by July 22nd to allow for time to legislation to actually be written and agreed to by both chambers to meet the August 2nd deadline.

And the big point at this very moment, Kyra, is that they are still are no bipartisan meetings on the schedule in terms of the real negotiators here, the leaders, both parties and both the House and the Senate and the White House, despite the fact the Senate has canceled its July Fourth break and plan to be in town next week. And House will also be in town. So, it kind of leaves you to wonder if it's not as much about everybody being in town, it's what they're going to do while they're here.

PHILLIPS: Well, yes. I mean, you made the point. They canceled their break. But doesn't mean the senators are actually going to be working on Fourth of July, right?

BOLDUAN: That's absolutely right. It's a federal holiday. The federal government is closed there. The House and Senate are both -- they're not going to be working and everyone will be away in their home districts on the day of the 4th. The Senate is scheduled to come back and work on Tuesday and House is scheduled to come back on Wednesday.

But, again, there is no major legislation planned to be really debated and we'll see what meetings will enter the schedule in the coming days. We'll see what happens.

BOLDUAN: All right. Kate, thanks.

And once again, the Treasury Secretary says that if the debt ceiling isn't raised by August 2nd, then the U.S. won't have enough money to even pay its bills.

In an one-on-one interview with CNN's Wolf Blitzer, former President Clinton actually talked about whether this is a hard deadline and why it's such a big deal.

(BEGIN VIDEO CLIP)

WILLIAM J. CLINTON, FORMER U.S. PRESIDENT: Well, I think, I know it's a hard deadline in the sense that just letting it happen will have, at the very least, a short term adverse effect on our standing in the world, on our credit, on people thinking we're a grown-up country who know what we are doing. Now, how bad the long-term damage is will be determined by how quickly we remedy it, but it's -- since it's never happened before, it's impossible to be absolutely specific, but it's nutty.

What you're really saying when you don't raise the debt limit is not you want to balance the budget in the future. It is, I'm sorry, I'm so mad, I can't get my way, I'm not going to pay our past debts. And a grown-up country can't do that. We can't afford to do that.

(END VIDEO CLIP)

PHILLIPS: Clinton went on to say that he believes Congress will reach some kind of short-term deal.

Coming up on this Fourth of July weekend, expect a year a lot of people singing the national anthem. But don't expect our next guest to be one of them. A pastor explains his objection to the "Star- Spangled Banner."

(COMMERCIAL BREAK) PHILLIPS: Well, it's Fourth of July weekend when red, white, and blue pride is on full display, flags are everywhere, the rocket's red glare, and the national anthem playing almost on a loop. Well, the song makes most people feel pretty patriotic but not everybody.

Pastor Mark Schloneger wrote an opinion piece for CNN.com "Why I Don't Sing the 'Star-Spangled Banner'" and he joins us now from Charlottesville, West Virginia.

Pastor, good morning.

Now, you say you love your country. You point that out in your write. Yet you won't sing the "Star-Spangled Banner," a very patriotic song.

So, let me ask you, can you be a patriot and also be a Mennonite?

MARK SCHLONEGER, MENNONITE PASTOR: I guess I would ask what your definition of being a patriot would be. I think it's possible to love your country and to be a Mennonite.

But what I am trying to communicate not what it means to be a Mennonite but what is means to be a Christian. And part of my objection to participating in the national anthem is it is a song that is a war anthem essentially and the ritual of placing your hand over your heart and -- I, as someone who believes passionately that following Jesus means witnessing for peace, I have objection to participating in that, although I totally understand why people would.

PHILLIPS: Well, let me ask you this. You write. I'm going to quote here from your article. "That's because we recognize only one Christian nation, the church, the holy nation that is bound together by a living faith in Jesus rather than by man-made, blood-soaked borders."

So, let me ask you this -- how do you reconcile that with our history and the system of government that you live under every single day that allows you the freedom to even say the things that you're telling me right now?

SCHLONEGER: Well, I would ask you -- where do you believe that your freedom comes from? You know, there are a number of people, as I was reading through, there are a number of comments, over 4,000 comments, writing that they thought that I only recognized one nation and I was very careful in my language that I only recognize one Christian nation, and that's the church.

I don't expect the United States government to do the mission or be the part of the ministry of the church. I want the church to be the church, and the government to be the government.

And I would also say that my freedom does not come from the blood of my enemies. I believe that my freedom comes from the blood that was shed by Jesus on the cross so I would have a different understanding of what freedom is.

PHILLIPS: OK. Then, final question. Let me ask you, because you go on to write that you, quote, "pledge your allegiance to Jesus alone."

Let me just read to you a couple of lines from the "Star-Spangled Banner" and I want to get your reaction. Here it is. "Blessed with victory and peace, may the heaven rescued land praise the power that has made and preserved us a nation, then conquer we must, when our cause, it is just, and this be our motto, in God is our trust."

Now, pastor, that song actually recognizes your creator.

SCHLONEGER: Well, I think you can recognize your creator. I mean, there's a -- I would have the same objection to the "under God" language in the Pledge of Allegiance. I have more an objection to saying the pledge itself than trying to redeem it by putting God language in it. And so I think that the way of Jesus requires us to carry the cross, Jesus asked his disciples to carry their cross daily and I don't think it is consistent with the language of Jesus, the teachings of Jesus to carry a cross in one hand and a gun in the other.

And so, that's where my objections lie. I have received many e-mails, one of the e-mails said -- agreed with a lot of the things that I was saying but that she sings the anthem remembering the service of her grandfather in World War II and I'm very sympathetic to that. I'm not advocating that we stop playing the national anthem. I'm merely describing on why I choose not to participate.

PHILLIPS: Well, like you said you've received a lot of e-mails and a lot of hits on CNN.com, that's for sure.

Pastor, thanks so much.

You can read Mark's entire piece at CNN.com/opinion. If you like, you can join the conversation and leave a comment for him. There are already, I'm told, more than 4,000 comments that people have posted.

Coming up, we're going to tell you how prosecuting Boston mobster James Bulger is going to cost taxpayers.

Also ahead, quickly becoming one of the biggest Fourth of July holiday traditions and some may say one of the grossest holiday traditions.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories cross-country.

After 16 years on the run, Boston mobster James "Whitey" Bulger back home. In court on Thursday, the 82-year-old accused murderer got a public defender but lost his petition to have two pending racketeering cases against him combined.

Police in New Orleans suburbs say they arrested a man who robbed a local convenience store with his 5-year-old son. Besides one count of simple robbery, Michael Perry also faces an additional charge of contributing to the delinquency of a minor.

Orville, California, Butte College has new claim to fame with its array of 25,000 solar panels, the school is the first college in the U.S. history to generate all of its electricity from renewable energy.

And in Yuma, Arizona, the ceremonial groundbreaking for a new federal courthouse named in honor of Judge John M. Roll. You may remember he was one of the six people who died in the January 8th shooting that nearly killed Congresswoman Gabby Giffords.

Ok. As you savor your July Fourth holiday barbecue and casually glance at those hot dogs on the grill, you may ask yourself, could I eat 70 of those under ten minutes? If the answer is yes, then maybe next year, you could win Nathan's annual hot dog eating contest.

Poor senior correspondent Allan Chernoff has been given the assignment. The breaking news investigative piece of the day.

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Kyra, it's going to be fantastic. I already have my all-access press pass for major league eating right here, going it happen at Coney Island on July Fourth. And this year, lots of excitement.

Number one, the women are going to finally, finally have equality. For the first time, there will be a women's division and a men's division. Two separate competitions. This sets the stage for Sonya Thomas to finally gain a mustard yellow belt. She holds the world's record for women, 41 hot dogs in only ten minutes.

America hero Joey Chestnut, who holds the world's record of 68 hot dogs in ten minutes. Well, he is saying he is going to hit 70 dogs this year. Let's see if he can do it. Lots of excitement.

And his old rival, Takeru Kobayashi (ph), well, he is going to be eating alone at a Manhattan bar challenging all the other competitors. He was banned last year from the competition due to a contractual dispute. He was arrested when he tried to jump on to the stage. This year, he'll be in Manhattan just trying to show he still got it -- Kyra.

PHILLIPS: Gosh. All right, now this is new. You mentioned there are now Chinese competitors that have entered this year?

CHERNOFF: Indeed, there are. This is the great challenge to the American eaters. Indeed, in just a couple of hours, they will be appearing at the weigh-in here in Manhattan. Lots of excitement. They are threatening to take the Mustard Yellow belt over to Beijing.

(BEGIN VIDEO CLIP)

GEORGE SHEA, CHAIR, MAJOR LEAGUE EATING: They represent a potential threat to our possession of the Mustard Belt. So China is expanding and rising as a political and global power, economic and otherwise. If they take the belt, it's going to hit us right where we breathe. It's going to -- they are going to be eating our lunch literally.

(END VIDEO CLIP)

CHERNOFF: Kyra, let's just hold our hands in prayer that Joey Chestnut can come through for the good old US of A. Our prestige is at stake here.

PHILLIPS: I -- I and you know what? I shouldn't be laughing; this is a very serious issue. Allan, thank you very much. We will stay tuned.

All right, George Carlin had his seven words that you can't say on television. Well, now Mark Halperin is starting his own list.

Coming up, Jeanne Moos looks at the four letter words that got the political analyst in some pretty big trouble.

(COMMERCIAL BREAK)

PHILLIPS: Stories making news later today: 11:30 Eastern, former IMF Chief, Dominique Strauss-Kahn back in a New York courtroom.

At 1:30 Eastern, the man arrested Wednesday by the FBI for allegedly flying on a fraudulent boarding pass is set to appear in a U.S. district courtroom.

And around 4:00 Eastern, President Obama heads for Camp David for the 4th of July weekend.

All right, we're following lots of developments in the next hour of the CNN NEWSROOM including on Dominique Strauss-Kahn in court. Let's check in first with Susan Candiotti -- Susan.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hi Kyra.

Well, I'm here in New York. And of course there are stunning developments that are happening involving this case that could possibly wind up sending the felony charges against him down the drain. And I'll have a live report coming up on that in the next hour -- Kyra.

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: I'm David Mattingly in Orlando. The Casey Anthony murder trial is supposed to be wrapping up today, but it's on hold. I'll explain why coming up.

MARK MCKAY, CNN SPORTS CORRESPONDENT: I'm Mark McKay. The NBA has joined the NFL in locking out its players. Are two seasons now in jeopardy? We'll talk about it at the top of the hour.

PHILLIPS: Thanks guys.

Also, next hour, Britain's royal newlyweds on hand to help celebrate candidate -- Canada rather. We'll take you live to Ottawa.

(COMMERCIAL BREAK)

PHILLIPS: Ok, tennis superstar Maria Sharapova, one win actually away from a Wimbledon title now. So you might want to have ear plugs ready if you want to watch. Right Jeff Fischel?

JEFF FISCHEL, HLN SPORTS ANCHOR: Oh man.

PHILLIPS: If you have another option, I don't know.

FISCHEL: The loudest player you will hear on tour, she's also one of the best. Her grunts measure at 105 decibels. That's enough to cause hearing loss.

So here she was yesterday in the semis. Yes, there it is, every time. But she's on a roll. She beat Sabine Lisicki yesterday, 6-4, 6-3. Sharapova going for her first Grand Slam title since 2008 and you can watch without a mute button.

Now, you can download a noise reduction tool called the Wimbledon net mix. So if you watch online you can control how loud the announcers are, the crowd, the ball and yes the player's grunts.

From the grass courts of Wimbledon to the ivy of Wrigley Field, Giants second baseman, Emanuel Burress -- look at this diving stop and gets starting Castro at first. Later in the game, Castro up again and it happens again, the exact same play. Castro however and his coming teammates would get the last laugh. Teammate Gio Soto, Giovanni Soto, the game winning home run in the bottom of the 13th, the kids call it a walkout homerun. The Cubs win.

Golf, Erik Compton is just of the great stories. He's had two heart transplants and on Sunday he won the Mexican Open. Kyra checkout this approach yesterday, the 11th at the AT&T National, the first round, oh right in the cup.

PHILLIPS: That's what keeps you coming back.

FISCHEL: Absolutely and forget all the bad ones just a shot like that. He finished six over on the day.

On day one of the NBA lockout, Memphis Grizzlies forward Shane Battier is hoping he can sweet talk the NBA into ending it. Checkout his tweets to the league, "Dear NBA, the lockout hasn't even started and I already miss your loving touch. Come back, baby. Can we get some cocktails and talk this out?"

"Let's make this work for the kids. They're going to blame themselves for our problems. Come on, come back, I'll tell you I love you more NBA."

"Dear NBA, I hate public break-ups. I'm sorry, call me, it's never too late. Hugs and kisses."

PHILLIPS: That's great. Maybe he ought to get involved in some other negotiations going in our political world right now.

FISCHEL: It might just work.

PHILLIPS: Hey, come on baby let's have some cocktails, let's talk this out. Thanks, Jeff.

FISCHEL: All right.

PHILLIPS: Well, there's certain four-letter words that you can definitely get away with, but not when you direct them at the President of the United States. And that's what one political analyst discovered when he put his foot in his mouth and the "d" word just sort of came out of it.

Jeanne Moos reports.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): There hasn't been a guy you could call "Dick" in the Oval Office since President Richard Nixon. But suddenly on morning TV the "d" word raises its ugly head. Begins with "d" rhymes with "Hick".

MARK HALPERIN, POLITICAL ANALYST: We're on the seven-second delay today.

UNIDENTIFIED FEMALE: Oh, Lord.

HALPERIN: I want to characterize how I though the President behaved.

UNIDENTIFIED FEMALE: Go for it. Let's see what happens.

HALPERIN: I thought he was kind of a (EXPLETIVE DELETED) yesterday.

UNIDENTIFIED MALE: Oh my God. Delay that. What are you doing?

HALPERIN: I think the President --

I can't believe you. I was joking. Don't do that. Did we delay that?

MOOS: Nope, no delay. There wasn't much of a delay in the apology either. After all, Mark Halperin is a big time political writer and analyst.

HALPERIN: It's an absolutely apology -- heartfelt to the President and to the viewers. I made a mistake.

UNIDENTIFIED MALE: Amen.

HALPERIN: And I'm sorry and I shouldn't have said it.

MOOS: MSNBC suspended Halperin indefinitely as an analyst, saying, "We apologize to the President, the White House and all of the viewers." The White House spokesman said he had called the network.

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: It would be inappropriate to say that about any president of either party.

MOOS: Actually the "d" word seemed to be part of a larger inside joke about the show's delay button.

The delay was set up almost three years ago after the host himself Joe Scarborough swore without realizing it.

JOE SCARBOROUGH, MSNBC HOST: Screaming (EXPLETIVE DELETED) you at the top of their lungs. My wife is going --

MOOS: After that, two delay buttons were established. One for live remotes and one for the studio. Before the show, the hosts were joking about testing the buttons and there was a new executive producer manning the control.

ALEX KORSON, EXECUTIVE PRODUCER: So there's this one button here. Right? You think this is it. Well, apparently there's this other button over here.

UNIDENTIFIED FEMALE: Ok. Alex, you're supposed to actually know how to do the job before you get the job.

MOOS: If you really want to see a guy having trouble with buttons, check this Tucson, Arizona cable access host trying to cut off an obscene prank caller.

UNIDENTIFIED MALE: (EXPLETIVE DELETED)

UNIDENTIFIED MALE: Ok. Tell you what.

MOOS: Remember the good old days when Jon Stewart was celebrated for using the "d" word to attack the then-host of a CNN show called "CROSSFIRE".

UNIDENTIFIED MALE: You're as big a (EXPLETIVE DELETED) on your show as you are on any show.

MOOS: It turns out Mark Halperin apologized a couple of years ago for saying that John Edwards thinks Obama is kind of P-word that means "timid". Now that he's used the D-word as well, the Web site Gawker reports that Halperin has called Obama both types of genitalia.

Hey, as you look for the "d" spot, disconnect.

UNIDENTIFIED MALE: One button, two buttons --

MOOS: Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

PHILLIPS: Yikes.