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Phone Scandal Tabloid Shuts Down; No Deal in Debt Talks; Slavery Language in Marriage Pledge; Royal Wraps up California Trip; U.S. Cuts Back on Pakistan Aid; DEA: Pot Has No Medical Use; Jaycee Dugard Book Out Tuesday; U.S. Embassy in Syria Attacked
Aired July 11, 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: -- tabloid "News of the World" shut down. The family of a murdered teen says owner Rupert Murdoch has not apologized for his employees' hacking her phone messages.
Will and Kate wrapped up their 11-day visit to U.S. and Canada. We'll go live to the final stop at Children's Art Center in poverty-stricken Skid Row.
Urgent talks on how to slash spending. Key lawmakers head back to the White House today. They must raise the debt ceiling by August 2nd.
We begin with more stunning allegations against British tabloid "News of the World." "The Daily Mirror" is reporting that staffers with the now defunct paper tried to hack into the phones of 9/11 victims. Owner Rupert Murdoch arrived in London to personally deal with the scandal now.
CNN's Zain Verjee live in London with all the breaking developments -- Zain.
ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: Hi, Kyra. Yes, what they're doing is, the British tabloid "The Mirror" is quoting a former New York City cop that's making these allegations that "News of the World" journalists tried to hack into the mailboxes and the voicemails of victims of 9/11.
Now this former cop says he was contacted by "News of the World" journalists who said that they would pay him to retrieve these phone records right the way through to 9/11, calls to the relatives, to give them the ability to see exactly who the victims were talking to up until 9/11.
Now this former New York City cop is now a private investigator and he is saying, according to "The Daily Mirror" report, that he turned this down. He said absolutely no way, I'm am not going to do this.
A little bit of caution here, it is only "The Daily Mirror" here that is reporting this -- this supposed 9/11 hacking claim. And we don't know for a fact, Kyra, whether it actually did happen.
PHILLIPS: All right. But meanwhile, the family of this murdered girl, whose phone was hacked, is going to meet with the deputy prime minister, right? VERJEE: Right, exactly. I mean, there is so much outrage over that. And what the family wants is an apology from Rupert Murdoch. And that hasn't happened.
The thing is, is that public opinion here is so far out ahead of the government. People here are so outraged over that story as well as the overall situation with "News of the World" that the government is really jumping up here and needs to act.
One of the things that they're considering is blocking this big deal, takeover bid by Rupert Murdoch of British Sky Broadcasting here. And that is the big cause of concern and debate here right now. People don't want to see that deal go through -- Kyra.
PHILLIPS: Well, we'll continue to follow that story. I have a feeling a lot more is going to break. It's just starting to unfold.
Zain, thanks.
Well, high stakes and heated rhetoric in the debt negotiations. President Obama still trying to broker a deal. In less than two hours from now, he's going to turn to the public with a morning news conference.
Dan Lothian is at the White House. Kate Bolduan is on Capitol Hill.
Dan, let's go ahead and start with you. What's the holdup?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, look, there's still this big divide because there are those liberal Democrats who don't want to see those entitlement programs like Medicare and Social Security touch this part of this deal. And on the other side, Republicans who are simply saying no tax hikes at all.
And so what you're seeing is the president using his bully pulpit, if you will, for the second time now in as many weeks. The president holding a press conference, a chance to try to get both sides to sit down and hammer out an agreement and spell out what the consequences will be if that debt ceiling isn't raised by August 2nd.
The president, aides tell me, will continue to push for what's being called that bigger deal, up to $4 trillion in spending cuts and also tax hikes. And the reason for that is because the president believes that this is the best thing for the U.S. economy in the long term.
PHILLIPS: All right. Dan, let's get the view from Congress now. Kate Bolduan on the Hill.
So, Kate, what is the reaction or the expected reaction to the meeting?
KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: Kyra, the reaction and statements we're getting following the meeting really show that deep divisions remain, probably no surprise from what you're hearing from Dan, between Democrats and Republicans. Very little if any progress seems to have been made towards a final deal as both sides really seem to be dug in, if not more dug in, on this key sticking point especially in terms of the issue of taxes.
Just a couple of statements that are really politically charged coming out last night. The spokesman for the Republican leader in the Senate, Mitch McConnell, saying in a statement, calling it, quote, "baffling" that Democrats and the president try to continue to raise taxes in the middle of a job crisis.
At the same time, almost like it was firing back, the Senate majority leader, the Democrat, Harry Reid, his spokesman charges that Republicans are trying to -- continue to try to take the easy way out.
Republican says there's no support for tax increases. Democrats say revenue has to be part of this deal this, quote, "balanced approach," if they're going to accept significant spending cuts.
Bottom line, Kyra, one point of agreement as these talks continue is that something needs to be done, it seems, between these negotiators. But how we get there seems to be a big question.
PHILLIPS: All right. It sure is. We'll continue to try and find the answers from you and Dan.
BOLDUAN: Right.
PHILLIPS: Thanks, guys.
Well, stay with us for President Obama's news conference less than two hours from now. It's scheduled for 11:00 Eastern. You can see it live right here on CNN.
Well, with the hopes that they'll crack down on terrorists, the White House will withhold $800 million in aid to Pakistan's military. The U.S. is trying to pressure Pakistan to crack down on the militants.
Meanwhile, a suicide bomber struck at a political rally in northwest Pakistan. At least six people were killed there, another 15 wounded.
And the death toll is rising from an explosion at a naval base in Cyprus. At least 12 soldiers were killed when munitions on a cargo ship caught fire. It's not yet known how that fire started. The blast was so huge it knocked out power to the nation's largest electricity plant which is right near that base.
Well, conservative Christian group has retracted a controversial passage about slavery from its marriage pledge but not before two presidential candidates actually signed on to it.
Deputy political director Paul Steinhauser has the rest of the story here, reading between the lines.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Boy, I'll tell you, Kyra, a lot of people talking about this story. First of all, it's Iowa, the first caucus state. That's why it's such a spotlight. That's where all the presidential candidates go.
We're talking about the Family Leader. It's one of the top social conservative groups in Iowa. Very influential, and of course social conservative voters in Iowa, very, very important.
And we're talking about traditional marriage. This all started -- well, this is a pledge for the candidates to sign to promote fidelity with your spouse and also to promote traditional marriage, not same- sex marriage.
But here's the problem. The preamble -- and I will read it. It says, "Slavery had a disastrous impact on African-American families yet sadly a child born into slavery in 1860 was more likely to be raised by his mother and father in a two-parent household than was an African-American baby born after the election of the USA's first African-American president."
That's where the trouble started. Well, the famed leader after the story got around, guess what they did? They took that preamble out. And it's no longer in the pledge. But two candidates had already signed that pledge, Michele Bachmann, the congresswoman from neighboring Minnesota, and Rick Santorum, the former senator from Pennsylvania.
Now it seems like both those campaigns are doing a bit of damage control. Here's what the Bachmann team said. "In no uncertain terms, Congresswoman Bachmann believes that slavery was horrible and economic enslavement is also horrible."
And this from Senator Santorum's campaign. Senator Santorum believed it was the right thing for the Iowa famed leader to remove the language from the preamble to the pledge about slavery.
But Kyra, this just goes to show how much trouble you can get in when something like this gets involved in presidential politics -- Kyra.
PHILLIPS: Yes. Well, Michele Bachman also involved in a war of words with Tim Pawlenty, right?
STEINHAUSER: Yes. Because again, all about Iowa. Such a crucial state. You know, it's the first caucus state. The first state to vote in the caucuses and primaries. It's a state very important for Bachmann to do well in, and Pawlenty, the guy who's former governor of neighboring Minnesota. He's known as Mr. Nice guy. But just in the last couple of days, he's had some tough language at Bachmann, saying her record of accomplishment in Congress is nonexistence.
She responded yesterday, digging at him, this war of words is heating up. We're only a month away from a crucial straw poll in Iowa. I think you're going to hear more of this battle between Republican presidential candidates -- Kyra.
PHILLIPS: All right, Paul Steinhauser. Thanks so much.
We'll have your next political update in about an hour. You can also get all the latest political news on our Web site, CNNPolitics.com. Well, NASA is tracking some space debris that might threaten the International Space Station. Right now, scientists can't say if it puts the crew in any jeopardy. They do know, though, it will come closest to the ISS around midday tomorrow, the same day Atlantis astronauts plan a spacewalk.
The royal couple's tour of North America is over. But it was a busy weekend, ranging from polo matches to making clay figures with kids on Skid Row. We're going to get all the details on Will and Kate's trip to L.A.
To celebrate a job well done, why not just blow up the boss' car?
(COMMERCIAL BREAK)
PHILLIPS: Checking stories "Cross Country."
In Brownwood, Texas, funeral services will be held today for the fan who fell to his death trying to catch a foul ball in the stands. Texas Rangers baseball team is setting up a fund for Shannon Stone's family. The club is already working on making changes to improve fan safety there at the stadium.
This is in Provo, Utah. Sales team at Adaptive Computing really know how to celebrate hitting its sales goal. With the boss' permission, the team got to blow up his 1995 Mitsubishi as a reward well done.
And this little guy set a record at a hospital in Longview, Texas. Michael Brown is the biggest baby ever born there. Are you ready for this? Sixteen pounds. He was delivered by C-section, of course. And his parents say no more kids.
Prince William and his bride, Kate, wrapping up their North American tour with three days in Los Angeles. They're back in the UK now, but not before leaving quite an impression on the folks in L.A.
Max Foster has the rest of their tour.
(BEGIN VIDEOTAPE)
MAX FOSTER, CNN INTERNATIONAL CORRESPONDENT (voice-over): After taking Canada by storm, it was time to visit California. The duke and duchess invited some friends around to the Consul General's house where they were staying.
The next morning it was off to Santa Barbara for a game of polo. The duke was, in his words, looking forward to letting loose after a busy few days. His team won and the proud duchess presented her husband with a trophy and a kiss.
On Saturday night, they hit the red carpet.
(On camera): Well, the duchess has arrived and she hasn't disappointed.
(Voice-over): The dress by Alexander McQueen wowed the Hollywood A- listers inside. From the red carpet to Skid Row. On Sunday, the couple threw themselves into an art class with kids from this very deprived neighborhood. The artistic duchess showing her skills.
And their last engagement was a War Veteran's job fair.
(On camera): So this is the final stop on this very successful North American royal tour. But in many ways, this is the most important stop. Particularly for the duke.
PRINCE WILLIAM, DUKE OF CAMBRIDGE: I would just say on behalf of us both how grateful we are to be welcomed so warmly in the Golden State and City of Angels. Thank you so much.
FOSTER (voice-over): The public would have liked to get closer to the couple in America. But the trip has confirmed them as the biggest stars on the planet right now.
(END VIDEOTAPE)
PHILLIPS: All right, Max Foster joining me live from L.A.
So were they as big of a hit in L.A. as they were in Canada, Max? You've been following them since the beginning.
FOSTER: I think they were. It was just a different sort of vibe here, I guess. In Canada, these were these huge crowds that turned out all the time and the couple would go into them and chat directly with those crowds.
The crowds didn't get the same sort of opportunities here in Los Angeles. But there's so much buzz around them. So people were excited that they were here.
This is a scene, for example, on Canada Day in Ottawa at the start of the tour. And this is what got everyone so excited here. It's a bit more low key and about promoting British interest, whereas there, it was about representing Canada.
I can tell you that they've had this immense tour and they're really looking forward to going back to North Wales. And I've been told that they're going to go back there and disappear for a while because they're probably pretty exhausted after all this. But they certainly made an impact.
PHILLIPS: It is exhausting charming people around the world, Max. Come on. You were there. You saw it.
Max Foster, thanks so much.
Well, coming up, Halle Berry calls the police not once, but twice over the weekend. We'll have the details in your "Showbiz" headlines.
And he showed us he can handle a camera almost as well as a soccer ball. We'll tell you what David Beckham is saying about the birth of his daughter.
(COMMERCIAL BREAK)
PHILLIPS: Well, coming up, Halle Berry calls the police not once, but twice over the weekend. We'll have the details in your showbiz headlines.
And he showed us he can handle a camera almost as well as a soccer ball. We'll tell you what David Beckham is saying about the birth of his daughter.
(COMMERCIAL BREAK)
PHILLIPS: Your showbiz headlines now.
Halle Berry dialed 911 on Sunday, according to TMZ. That was her second call this weekend, after spotting an intruder on her property. No arrests were made.
And the not-so-friendly skies, Octomom Nadya Suleiman and Kirsten Johnson when Suleiman's eight kids started crying. TMZ says that when "The 3rd Rock from the Sun" actress asked that she keep the babies quiet, she responded, "Why don't you grow a baby and get a life?"
And Kate Hudson and her musician fiance, Matthew Bellamy welcomed a son over the weekend. Hudson already has a 7-year-old son Ryder from a previous marriage. And now, he's got a little a brother.
Well, David and Victoria Beckham welcome a new baby daughter into the world. Also, who can forget that beautiful photo that David posted of his pregnant wife Victoria on his Facebook page. Well, he updated his status. Giving those details about the birth and the baby's name, of course.
CNN's Zain Verjee has all of that for us now.
All these stars having babies. Hey, Zain.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Yes, including you, too, Kyra. Harper Seven. What do you think of that name? Harper Seven.
PHILLIPS: Harper Seven?
VERJEE: That's the baby girl's name.
PHILLIPS: Well, when you know the meaning of seven, then you think it's pretty cool.
(LAUGHTER)
VERJEE: Yes, right. You know, David Beckham put out this statement and he said this, Kyra. He said, "I'm so proud, so excited to announce the birth of our daughter, Harper Seven Beckham. She weighed 7 pounds, 10 ounces and arrived at 7:55 this morning here in L.A. Victoria is doing really well and her brothers are delighted to have a baby sister."
I was looking at a lot of the reaction online. And there was one I really liked, Kyra. Someone said Harper Seven, it sounds like half past seven, right?
PHILLIPS: When was she born?
VERJEE: She's born July 7th at 7:55. So, it almost -- it was just past half a 7:00. But someone wrote, well, why didn't they call her after eight? And I thought that was pretty funny. Harper Seven.
PHILLIPS: What was his number? I thought he was number seven.
VERJEE: Yes. Well, the number is significant because David Beckham's football jersey from Manchester United and for England, he wears the number seven.
PHILLIPS: There we go.
VERJEE: That's what people are saying, right? That that's why. It's lucky seven, too. Who knows?
They're happy to get a baby girl. They knew they were going to get a girl and they were pretty excited about it. Victoria Beckham was just saying she just wants a girl, someone she can go shopping with and do makeup with.
But, you know, they're very happy. Harper Seven, though, is her name.
PHILLIPS: All right. Zain, thank you so much.
VERJEE: Do you like it?
PHILLIPS: Yes. I think -- you know me, I love unique names. You always want something that stands out and has meaning and that definitely does. Every time I hear Harper, I think of "Harper" magazine.
VERJEE: Right.
PHILLIPS: All right, Zain. We'll be chatting again.
When it comes to this tough economy -- well, celebrities are not immune. Foreclosure hits even the rich and famous. And today, a new name.
Alison Kosik at the New York Stock Exchange.
OK. Who's getting hit with foreclosure now?
ALISON KOSIK, CNN CORRESPONDENT: All right. Here's the latest, it's Carnie Wilson. We all know her as the woman who publicly has battled those weight issues. She's also the daughter of the Beach Boys Brian Wilson. She's part of the popular '90s group, Wilson Phillips, and a start of the current movie, "Bridesmaid."
So, yes, she reportedly has defaulted on her mortgage. That's from TMZ. She reportedly owes $1.6 million on her L.A. home, Kyra. TMZ says the auction for this home is set for next week, that is unless she pays up.
But you know what? She's not alone. She joins a growing list of celebs hit with foreclosure, who lost their homes. (INAUDIBLE) Nicholas Cage, Jose Canseco, Michael Vick, Aretha Franklin, they're on the list, too. Hey, they may be celebrities but they're human, too -- Kyra.
PHILLIPS: Yes, a lot of people think -- gosh, celebrities, they're often multimillionaires. You know, why are so many of them losing their homes?
KOSIK: Yes, you know what? I mean, there are a bunch of reasons. I mean, their neighborhoods -- they were slammed by the housing recession as much as the rest of America was. You know, prices fell in those (INAUDIBLE) like Palm Beach, Florida, Greenwich, Connecticut, Beverly Hills, California.
And RealtyTrac actually says prices fell so much that Jose Canseco walked away from his home. That's also known as strategic default.
And, secondly, just because you're a millionaire, hey, it doesn't mean you know how to manage your money. And think about it, before Ed McMahon died, he told Larry King, quote, "If you spend more money than you make, you know what happens." Then it can happen. Spending more than you make.
And you know what? One more thing, it's not necessarily that more celebrities are losing their homes than non-celebrities, Kyra. It's just that we know their names, it's just more public -- Kyra.
PHILLIPS: It's true. Alison, thanks.
British tabloid "News of the World" prints its last edition and closes its doors. But the troubles for some who worked there are far from over.
(COMMERCIAL BREAK)
PHILLIPS: Checking top stories:
Britain's "Daily Mirror" reporting that "News of the World" journalists unsuccessfully try to get phone records of 9/11 victims. The tabloid brought down by the phone-hacking scandal printed its final edition yesterday.
A search and rescue operation goes on in Russia after a cruise ship went down. At least 80 people have been rescued but about 100 more are still missing.
The U.S. is withholding $800 million in military aid to Pakistan. Top U.S. officials say it's meant to pressure Pakistan to crack down on militants.
Now, there's new evidence of just how strained the relations are between the U.S. and one of its most critical allies in the fight against terror. Today, a defiant Pakistan is shrugging off the White House decision to withhold $800 million in aid for that country's military.
Chris Lawrence at the Pentagon.
You know, Chris, you know, we should talk about what all the money goes toward. And it's sort of understandable when you think, you know, this is the country where they found Osama bin Laden. You wonder why the U.S. is giving so much money to its military.
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: That's right. And, really, this is part of the whole fallout from the whole Osama bin Laden operation, Kyra.
Basically, this money goes to help the Pakistani military go after some of the insurgents and even terrorist forces that the U.S. wants to target on the Pakistani side of the border. In other words, Pakistan puts about 100,000 men in this frontier area, the mountainous area near the border where a lot of the insurgents are. The U.S. gives them about $300 million a year to help pay for those troops to be there. That's been suspended.
Also, a lot of equipment that's going to some of these troops -- night vision goggles, helicopter spare parts, intelligence, reconnaissance equipment. All of this now has been suspended as part of this package.
It's really the first time that the U.S. has withheld aid in direct response to a Pakistani action, which the U.S. says is not cooperating fully in what it wants to do in terms of fighting terrorism on that side of the border.
PHILLIPS: And now you wonder, Chris -- it will be interesting to track and see how much of a difference this does make and if, indeed, they do track militants even more after losing this money. No doubt this will affect the relationship between the U.S. and Pakistan as well.
LAWRENCE: That's right. It's a very -- the word you keep hearing from officials, Kyra, is complicated. We have a very complicated relationship with Pakistan.
And there is some element here -- you know, that old saying about don't cut off your nose to spite your face, because we're giving them the money to go after the militants and insurgents that the United States has a vested interest in seeing captured or killed. But the relationship, obviously, is very difficult on both sides, because here at home, you've got political pressure from Congress. As part of the new defense spending bill, both the secretary of defense and the secretary of state have to sort of write a report on exactly where this money is going before Congress sort of loosens the purse strings and authorizes that money to go to Pakistan.
And on their side, their military was humiliated by that bin Laden raid. And there's a lot of internal, domestic pressure on Pakistan's side to sort of stand firm and be tough with the U.S. at this point.
PHILLIPS: Wow, it's interesting to see what develops now, Chris.
Chris Lawrence at the Pentagon -- thanks.
Take a look at this -- several security officers inside Syria firing on protesters. It was amateur video that was posted on YouTube.
Now, the U.S. State Department suggests Syrians are spying on protesters here in the U.S., and helping to fuel the violence you're seeing right here.
CNN foreign affairs correspondent Jill Dougherty -- basically saying this looks like spying.
JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Yes, Kyra. You know, it is kind of a surprising report. What they're saying is that they have reports, indications, that the staff -- some staff at the Syrian embassy here in the United States have been going to demonstrations that Syrians here in the U.S. have been holding against the Syrian government and they've been videotaping these people.
And then they also say that back in Syria, the Syrian government has retaliated against some of the families of those people who turned up at those demonstrations. So, it's a worrisome thing. And, you know, this actually started, remember -- well, it started a while ago. But the most recent incident, excuse me, is when the U.S. ambassador - sorry -- Robert Ford went to the city of Hama, which is a rested city, a site of some very serious demonstrations and very serious crackdown.
He went there, spent the night, spent another day and, remember, on Friday we had a report about how his car was mobbed by friendly Syrians. So this is really getting pretty personal.
PHILLIPS: And what's the deal with the ambassador's Facebook page?
DOUGHERTY: Yes. The U.S. Ambassador Robert Ford, has a Facebook page, the embassy does. And he put a posting up there. He said that they had, on Saturday, demonstrations that were taking place against the U.S. embassy. People, Syrians, throwing rocks and throwing food. In fact, eggs and tomatoes.
And on this Facebook posting the ambassador says that's pretty ironic because the Syrian government is allowing that demonstration to take place against the U.S. embassy but is not allowing and, in fact, brutally cracking down on demonstrations in other parts of the country. And then in another rather ironic aside, he said people ought to save the food that they're throwing for hungry Syrians, who basically can't get food.
And Kyra, I think it's interesting, too. I just went on that site, checked out that Facebook blog and there is a lot of response. Obviously, this is a way of the U.S. government getting out its message on Facebook. Just check it out.
PHILLIPS: All right. Jill Dougherty at the State Department.
Jill, thanks. And lot to talk but little agreement as Washington races to avoid a looming crisis over our national debt. Today, congressional leaders are returning to the White House in search of a deal that would slash trillions of dollars from government spending. Last night they actually met for 75 minutes but only agreed to return to the negotiating table today. The parties are divided over huge philosophical differences. Republicans say that tax hikes are unacceptable. Democrats oppose cuts to Social Security and Medicare.
Well, 90 minutes from now, President Obama will address the debt crisis, 11:00 a.m. Eastern at a news conference at the White House. We will carry it live.
Well, a pathetic debt debate. Harsh words from John Avlon with just 23 days to go before America defaults on its debt. Our CNN contributor doesn't stop there either. John says the debate's childish rhetoric is pushing America to its brink.
You've never hold back, John, from your opinion on things.
But you tend to wonder, what the heck is going on with all this back and forth? And you've this looming deadline. Meanwhile, we wonder how we're going to pay the bills.
JOHN AVLON, CNN CONTRIBUTOR: That's right. Kyra, we're playing this game of chicken with the American economy. And, look, it's pretty basic. To deal with the deficit and the debt, you need to have revenue increases, spending cuts and entitlement reforms. And right now that's what's being put forward. The problem is, you've got liberals oppose any entitlement reform, conservatives oppose any revenue increases. And the compromise is being consideration collaboration in Washington. We need to be able to reason together.
But some folks would rather demagogue the deficit and the debt than actually deal with it. That's just totally dishonest and it's dangerous for the economy.
PHILLIPS: Well, is there anything, that you think, that the president can say at this news conference at 11:00 a.m. that would push the two sides into making a deal?
AVLON: I do. I think there are two things. One, he needs to point out that the Republican coalition is very focused on dealing with the deficit and the debt. If that's your number one priority, then you need to give a little.
And tax reform, in particular, offers the opportunity to raise revenues without raising rates. This is very important. If you close tax loopholes, these are -- effectively tax loopholes are earmarks embedded in the tax code. If you close those, you could increase revenues without raising rates. That should be a place for compromise, something that both parties have talked a lot about.
Now you're not going to please the ideological litmus test folks. But that can't drive the debate. So that's an area that's a real -- is an opportunity for compromise. With everything, you've to define the common ground and then build on it. That should be an area we can agree on and then move this ball forward.
PHILLIPS: So who do you think the bigger problem is for the president right now? Is it the Democrats or the Republicans?
(LAUGHTER)
AVLON: Look --
PHILLIPS: As he laughs.
AVLON: Those on the far left were very -- well, you know, it's a great point because when the president was noted as offering entitlement reform as part of a grand bargain -- remember the president's the one pushing the deal with the big deal package. Put a $4 trillion deficit reduction on the table.
Democrats and liberal activists, in particular, were very angry and upset to hear that entitlement reform was on the table. Now, folks on the far right are saying, look, if there's anything that raises any revenue, we're going to call that a tax hike.
Now, that changes in the definition in the middle of the game on this case. I understand you don't want to raise everybody's taxes if you're a Republican, but you need to find a way to get some revenue. Everyone's got to give a little bit. Everyone's got to be at the table, everyone's got to give a little bit to get the American economy on sound, long-term fiscal footing.
And the far left and the far right may both be unhappy, but that's usually a sign of a plan that can actually move forward to solve problems.
PHILLIPS: John Avlon, thanks for weighing in. We'll see what happens.
AVLON: Thank you. We'll see.
PHILLIPS: The nation's drug enforcement agency strikes a blow against medical marijuana. The DEA says it's just as bad as heroin. What this means for medical marijuana, next.
And also after the break, we're going to talk to the man behind the ledge, a film where the atheists are the good guys.
(COMMERCIAL BREAK)
PHILLIPS: "The Ledge." It's a movie about faith, love and religion. But don't expect the Christian in this film to be the good guy. How about an atheist as your hero?
(BEGIN VIDEO CLIP)
U0NIDENTIFIED MALE: What did God do to you to make you so angry at him?
UNIDENTIFIED MALE: Look at the world that he created. All the beauty, wars and plagues and genocides and earthquakes and tidal waves. And then, after all that suffering, what does your God do next? He sends most of us to hell.
(END VIDEO CLIP)
PHILLIPS: Matthew Chapman wrote and directed this film with the hope that atheists would come out of the closet and be proud and Christians would apologize for being so judgmental.
Matthew, you're an outspoken atheist. Why did you make this film and why now?
MATTHEW CHAPMAN, WRITER/DIRECTOR, "THE LEDGE": Well, I mean, there hasn't been anything like this before. And I was -- you know, I've traveled a lot in the Midwest and the south and seen a lot of people like Joe, the fundamentalist in the film, and I've never seen a portrayal of that kind of a character put in conflict with someone who shares my beliefs, which are that there probably isn't any God, and we need to think about, you know, reality in life in a rational, humane way. And that life would probably be better if we behaved that way.
PHILLIPS: It's obvious in the film you are questioning faith. Let roll another (INAUDIBLE) and I've got another question for you.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: You have to accept Jesus Christ as your lord and savior. That is your only entrance requirement.
UNIDENTIFIED MALE: OK. So the (INAUDIBLE), the Hindus, the Muslims, the atheists, the Buddhists -- all damned, right?
UNIDENTIFIED MALE: They have to accept Jesus Christ.
UNIDENTIFIED MALE: And the Catholics, because they're not born again, right?
UNIDENTIFIED MALE: Right.
(END VIDEO CLIP)
PHILLIPS: We've looked at two clips now. Obviously one is about why do bad things happen to good people. And then as we heard from this one, too, if you don't accept Jesus, you go to hell. What about everybody else?
These two topics and debates are nothing new. So, what differentiates your movie from anything else that's been out there that sort of debates the issue of atheism?
CHAPMAN: Well, first of all, I would say there haven't been a lot of discussions like this. Second of all, it's a thriller. I mean, it opened in Russia, for example, on 200 screens. It did better than "Thor," it came in only in third place to "Pirates of the Caribbean" and "Kung Fu Panda." So it's a very entertaining movie whether you are interested in the underlying message or not. 00PHILLIPS: Why do you think that is? Do you think it's because it's a thriller and these are some incredible actors? Or do you think it's the issue of atheism and the fact that the hero in this film is an atheist?
CHAPMAN: I think it's a bit of both. And I think that the things that we've seen happen in the last 10 years, as a result of faith, whether it be on the very extreme end where you have people flying planes into buildings, or whether it's the break that religion has put on social progress for gay people and women and women's rights.
I think people are a little fed up with religion being this constant naysayer, the constant pulling back of progress. And I'm kind of hopeful people will look at this film and say maybe there's a better way of looking at life than referring to books that were written in the bronze age.
PHILLIPS: But is a better way at looking at life being an atheist? I mean, the numbers are still so low. It's like three, four percent of people -- or Americans are atheist or agnostic.
Why are you still an atheist?
(LAUGHTER)
PHILLIPS: That's a loaded question, isn't it?
(LAUGHTER)
CHAPMAN: I mean, once you become an atheist, it's kind of, I think, rather hard to go back. I mean, I always say if you took away all the bad things you had in religion, all the problems that religion causes to gay people, to women, to infidels, as all religions find a way of calling other religions, infidels, you removed all the violence, it would still rather be like having a 40-year-old person wandering around, who believes in Father Christmas.
It's all perfectly harmless. But is that the kind of person you want, for example, running the country? And I don't know if you know this, but the figures for the likelihood of atheist, an atheist becoming a presidential winner are 45 percent. Forty-five percent of Americans wouldn't even consider voting for an atheist candidate. Fifty-five percent would consider voting for a gay person, more people who consider voting for a Muslim.
So, you're right. It's a very unpopular viewpoint to have but what can you do? If you believe it, you believe it.
PHILLIPS: Matthew Chapman. The movie is "The Ledge." Thanks for talking with us about it today.
CHAPMAN: Thank you.
PHILLIPS: And if you'd like to read more about this story or other stories about religion, you just go to our belief blog at CNN.com.
Marijuana isn't medicine. That's the word from the Federal Drug Enforcement Administration.
CNN medical correspondent Elizabeth Cohen is here to talk about what the new memo says.
And what does that mean for medical marijuana and that industry?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right, exactly. That's an excellent question.
So let's get to the memo first. So this memo came from the drug enforcement agency. And they put it in black and white, very simple. They said marijuana does not have a medical use and it has a high potential for abuse. So, they sort of just said there's a lot of debate here. They said this is where we stand. And they have said it before. But this is the first time they've said it in many years.
PHILLIPS: So let's talk about the states where medical marijuana is legalized. What does that mean for the people using it?
COHEN: Right. Sixteen states and the District of Columbia, you can use medical marijuana as long as you get your card and all of that. And what that means for those people is, probably nothing. Which is sort of surprising, right? You think the Feds lay down the law that you can't use it.
But the DEA doesn't tend to go after individuals. They may go after large organizations but they don't tend to go after individuals. So those individuals are probably pretty safe right now.
PHILLIPS: So will pro-marijuana groups fight this decision?
COHEN: They said they have. In fact, they said they welcome this decision, which is sort of surprising. But because they say this is now in black and white and recent, that they can appeal it. They can actually take it to court. So they say at the end of the day, they will win. PHILLIPS: OK. We'll see what happens.
Elizabeth, thanks.
COHEN: Thanks.
Well what an incredible story. Well actually, we're hearing a pretty amazing interview. A lot of people have been waiting to hear from Jaycee Dugard, she's actually speaking publicly for the very first time.
You may remember she was the young girl held in captivity for 18 years. She actually talks about how she survived that ordeal. We will hear from her straight ahead.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories now cross country.
(BEGIN VIDEO CLIP) UNIDENTIFIED FEMALE: What's going on?
UNIDENTIFIED FEMALE: A grown man just attacked my son from behind. And they're still fighting out here.
UNIDENTIFIED FEMALE: They're still fighting?
UNIDENTIFIED FEMALE: These people are crazy. Yes.
(END VIDEO CLIP)
PHILLIPS: Well, that call came during a youth baseball tournament in Castle Rock, Colorado. A fight broke out after a bad call. Three parents, one of them a town prosecutor face criminal charges of assault now. Police say it's hard to tell who actually started that fight.
Los Angeles may be a priceless piece of history. But its owner wants at least $95,000 for a piece of the American flag that wound up flying on the moon after Apollo 11. The top bid so far $60,000. Now along with the flag, you'll get an autographed picture of astronaut Neil Armstrong.
Christian Lopez, a cell phone salesman is a real Yankee fan, after catching Derek Jeter's 3,000th hit -- it was a homer by the way -- he gave it back. It's worth up to $250,000. Lopez got free tickets for the rest of the season to the ultra-posh legends sections worth thousands of dollars and autographed balls, bats, even a jersey from Jeter.
Kidnapping victim Jaycee Dugard says that she did what she did to just try and survive during her 18 years in captivity. Kidnapped at age 11 by a convicted sex offender and held in tents in a backyard in California, she endured horrible abuse. She even gave birth to two children. Now, at the age of 31, she's talking about it.
(BEGIN VIDEO CLIP)
JAYCEE DUGARD, KIDNAPPING SURVIVOR: There was not a day that I didn't cry. I felt like there would never, ever be a day that I wouldn't cry again. And then, after a while, I told myself I can't cry anymore.
DIANE SAWYER, ABC HOST: What's the most haunting memory?
DUGARD: That lock, hearing the lock. I know I said that earlier, but for some reason that -- and the bed, it was squeaky bed. A squeaky pull-out bed.
I guess the noise -- the sounds. It's weird what sticks in your sticks in your head but -- sounds.
SAWYER: How did you stay sane?
DUGARD: I don't know. I was still alive. There was still hope -- still hope.
SAWYER: I am trying to imagine how you are coping. I am trying to imagine.
DUGARD: I don't know. I can't imagine being beaten to death, you know but -- and you can't imagine being kidnapped and raped, you know. So it's just -- you just do what you have to do to survive.
(END VIDEO CLIP)
PHILLIPS: And her kidnappers, Phillip and Nancy Garrido are serving long prison sentences now. Dugard's book is titled "A Stolen Life".
We have breaking news out of Syria right now. The U.S. Embassy in Damascus attacked. CNN's Arwa Damon in Damascus joins us on the phone. Arwa, so what's happening there right now?
ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT (via telephone): Hi Kyra. The situation right now does appear to be under control but according to a U.S. official at the embassy in Damascus, the embassy was attacked by a mob. He said that the building sustained some damage. No personnel were injured. And they were saying that the Syrian government was slow in responding with additional security measures. The U.S. Embassy is calling the government to abide by the protections required under the Vienna Convention.
Now from the outside, you would see that the windows are cracked. A graffiti has been sprayed. The U.S. Embassy flag has been damaged although the American flag continues to fly over the embassy according to this official.
The official also said that this was an unfortunate distraction, because the Syrian government continues to beat, imprison, torture and kill people who want to peacefully protest. The official said that he couldn't characterize the mob but he noted that it is still ironic that the government allows this type of a protest to go on but won't allow protests where people have no weapons and are only carrying olive branches to take place.
Now, the relationship between Syria and the U.S., especially the U.S. embassy has been fairly tense since the U.S. Ambassador took a trip to Hamar (ph) earlier in the week -- Kyra.
PHILLIPS: And that we also hear that the French embassy has been attacked? Is this connected?
DAMON: Yes, we heard that the French embassy was attacked as well; there are numerous reports about that. That information we've not yet been able to confirm. Both the French and the U.S. have, in fact seen, the embassies, that is -- have seen demonstrations in front of them in the past. And in some cases, they have had eggs and tomatoes thrown at them.
A lot of anger is being geared towards France because it is leading the charge trying to pass the United Nations resolution condemning the Syrian government. A lot of anger and frustration being targeted at the U.S. for that reason as well, and also because a lot of those who support the government perceive the U.S. as meddling inside it's Syria's affairs. They perceive the U.S. as being on the side of the anti-government demonstration that's somehow implicit in this conspiracy theory to try to bring down the regime of Bashar Al Assad -- Kyra.
PHILLIPS: Arwa Damon for us via Damascus on the phone. We'll follow the breaking news, Arwa thanks.
Well, Tour de France riders go down in a pileup while a car knocks down another cyclist. We'll have the latest details in sports.
(COMMERCIAL BREAK)
PHILLIPS: The stories making news later today: President Obama holding a news conference at the White House on those debt reduction talks. That's at 11:00 Eastern.
At 1:00 Eastern, the Jobs for America's summit being held in the U.S. Chamber of Commerce in Washington.
And the girlfriend of reputed Boston mob boss, James "Whitey" Bulger, Katherine Gray, appears for a bail hearing in Boston at 2:30 Eastern.
All right. We're following lots of developments in the next hour of the CNN NEWSROOM. Let's go and check in first with Dan Lothian at the White House -- Dan.
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, that press conference from President Obama will be the second in as many weeks as he tries to put pressure on both Democrats and Republicans to find some areas of compromise in order to get the debt ceiling raised. I'll have more on that story at the top of the hour.
ALISON KOSIK, CNN CORRESPONDENT: I'm Alison Kosik at the New York Stock Exchange. Couldn't get a mortgage? Or you're stuck with a high interest rates but you don't know why? That's all about to change, new rules look to pull back the curtain on lending. I'll have details in the next hour.
MAX FOSTER, CNN CORRESPONDENT: And I'm Max Foster in Los Angeles. I'll have all the pictures from the whirlwind royal tour of California in the next hour.
PHILLIPS: It sounds good. Thanks guys.
Well, the royal couple also visited an art center for Inner-City kids in the final day of their tour in California.
And coming up this hour we're going to talk to the kids about what they thought of Will and Kate.
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