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John Boehner's Reaction to Obama's Remarks; Close Encounter in Yellowstone; Iran Accused of Arming Iraqi Insurgents; Funeral for Texas Baseball Fan; Betty Ford To Be Laid to Rest Thursday; Markets and the Debt Debate; British Tabloid Scandal Widens; Extreme Heat; Surfer's Inspirational Story; Hybrid Concierge Physician Practice; Sarah Palin Says She Could Beat Obama

Aired July 11, 2011 - 13:00   ET

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

RANDI KAYE, CNN ANCHOR: Hi there, Suzanne, thank you.

Well, bigger is better, reforms beat repairs, and sometimes you have to eat your peas. President Obama's guiding principles as he prepares to meet again with leaders of Congress over deficits, debt, and avoiding default.

As you may have seen live, right here on CNN, the president faced reporters this morning and made his case for a sweeping deal combining spending cuts, tax reforms including some increases and entitlement reform, that's Medicare, Medicaid and Social Security. It is a plan worth $4 trillion, give or take, roughly twice the size of the house Republicans now want. If you take a look here, that smaller bag of cash there, well House Republicans are looking at $2 trillion mainly in spending cuts.

The back drop, of course, is the battle over raising the nation's debt ceiling, which the treasury says has to happen by August 2nd, or the U.S. risks its first ever default. Republicans won't back an increase without equally big cuts in spending. The president says a deal will get done, and it won't just be a stop gap.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I will not sign a 30- day or a 60-day or a 90-day extension. That is just not an acceptable approach. And if we think it's going to be hard -- if we think it's hard now, imagine how these guys are going to be thinking six months from now in the middle of election season, when they're all up. It's not going to get easier, it's going to get harder. So, we might as well do it now. Pull off the Band-Aid. Eat our peas.

(END VIDEO CLIP)

KAYE: Now, I want to bring in White House Correspondent, Brianna Keilar, and from "CNN MONEY", Senior Writer, Jeanne Sahadi. Brianna, go big or go home, what is the Republican push back?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: You know Randi, we're going to be finding out very shortly because house speaker John Boehner will take to the cameras at 1:30 p.m. Eastern essentially in a rebuttal to the president's news conference earlier today. But the push back in the issue for Republicans in all - in these negotiations, and for Democrats as well, has been tax increases. You have Republicans who have insisted on no tax increases, and Democrats who have insisted that if there are going to be all these spending cuts to achieve trillions of dollars in deficit savings, they don't want to abandon - or if there are going to be cuts to some programs that are huge priorities for them, Randi, they don't want to go along without - with at least saying, look, we've pushed for some sacrifices from corporations and from wealthy Americans.

KAYE: And so what's going on here, I mean are the president and Speaker Boehner both at the mercy of their rank and file when it comes to a big historic agreement?

KEILAR: You know, certainly, and - certainly yes. Both of them are and they're trying to strike kind of a just right agreement, because on one hand, you have a lot of Republicans, and then many of them who were swept into power in the last election who came in saying, we're going to cut spending, we're going to make government smaller, and so the idea of tax increases, and certainly this is something that a lot of them have literally pledged they will not do, Randi. It would force them to go back on their words.

On the other side, you have Democrats who are saying, no, we're looking at programs, we're afraid that poor Americans, that seniors will be hurt in this, and certainly at least politically, this idea of entitlement reform that Republicans are pushing for and many Democrats are loathed to go along with, that's a winning message the Democrats have seen that they can say, no, we're not going to go along with cuts for that.

The reality is there are going to be needed Democrat and Republican votes on this. And so, you heard President Obama today in his press conference saying, you know, this is going to take some sacrifice from both sides. Clearly, the tone he's trying to strike is that he's the one urging both sides to really swallow a bitter pill.

KAYE: And you mentioned, Brianna, this pledge against raising the taxes. I want to show you -- we have a graphic here that really spells it out. There you can see it, 236 Republicans - representatives saying they're (ph), plus you have many others, saying that they have taken this pledge, they are opposed to raising taxes to any extent, and all but three are Republicans.

So, we're going to go to Jeanne Sahadi now. Jean, the treasury first said that we hit the ceiling in May, then it said it could buy time until August. What could happen August 2nd if the borrowing limit isn't raised?

JEANNE SAHADI, CNNMONEY.COM: Not many good things. In the near term, it's - the treasury is going to have to decide who are we going to pay and who are we not going to pay. Generally, one, deficits are about $125 billion a month. So, some days we're going to bring more than we need to pay out, and other days we won't. But (INAUDIBLE), we're in deficit. So - and they also need to plan for payments, like a big interest payment on August 15th. So, what they're going to have to do, according to bipartisan policy center, is basically delay about 44 percent of spending, starting August 3rd. Now, that's not going to be good for the economy, because people like government contractors or people that get government benefits may not get paid on time, so they're not going to have cash in their pockets. So, that's something really both parties should want to avoid. And according to President Obama, everybody sitting around that negotiating table, does want to avoid.

KAYE: And just - if you can, just remind us quickly of what the debt ceiling is. You know, opponents of raising it make it sound like this is really just a ticket to spend more.

SAHADI: Yes, that's not true. It's basically a technical measure that is a legal limit on how much the treasury can borrow. And what happens is because of all the legislation Congress of past and present have passed, they have obligated the treasury to pay far more bills than it can - than it gets in revenue coming in the door, which is what requires it to borrow. So, the Congressional resource service puts this in its reports fairly regularly, and it says, we are going to have to continually raise the debt ceiling because of all the legislation we have on the books already. So, even if we never pass a spending bill or another tax cut, we're going to have to continue to raise the debt ceiling.

KAYE: And Brianna, the political calendar, when we look at that, is really even tighter than the financial calendar, correct?

KEILAR: It is, Randi. Remember when the White House and Congressional Republicans and Democrats nearly averted a government shutdown a few months ago by striking a deal about an hour and a half before their deadline? They can't do that this time because an agreement in concept does not an agreement in legislative language make. Once they come to an agreement in concept, there is a - it has to be put into legislative language, this is something that takes a lot of time, we've heard the president say over the weekend, he thinks this has to be done in about 10 days, and that's long before the August 2nd deadline.

KAYE: All right, Brianna Keilar, Jeanne Sahadi, thank you both, appreciate it.

Our "Sound Effect" is from the biggest sports tournament you probably didn't even know was going on. The women's world cup is heading into semifinal rounds this week in Germany, and team USA is still in the mix. Brazil, on the other hand, is not. The Brazilians played the Americans to a draw, 2 to 2, in yesterday's quarterfinal match. And so, it came down to penalty kicks. Here is the kick that clinched it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: And she did it, USA makes the last score, it's been a near miracle here in Dresden.

(END VIDEO CLIP)

KAYE: The Yanks now play the French on Wednesday and Japan plays Sweden. America last took the title in 1999.

Now, some other "Top Stories" that we're following for you. Syrian pro-government demonstrators attacked the U.S. and French embassies in Damascus today. In both cases, they were beaten back by Syrian security forces. There were no casualties, but some damage was done to the U.S. embassy. U.S. officials condemn the Syrian governments slow response and its failure to prevent the attack. The attacks follow visits by the American and French ambassadors to the city of Hama last week in support of pro-democracy demonstrators.

Tough words for Iran from new secretary of defense, Leon Pennetta. Pennetta, who arrived from Baghdad today from Afghanistan, says Iran is supplying weapons with extremists in Iraq who are killing U.S. troops that are killing troops as they prepare to leave the country. Pennetta says the U.S. will not walk away from this challenge and he's urging Iraq to crack down on the insurgents.

Fourteen U.S. troops were killed in attacks in June and three more in the first 10 days of this month. The remaining 46,000 American troops in Iraq are due to pull out by the end of this year.

In Texas, funeral services were held today for a man who fell to his death at a Texas rangers baseball came. Thirty-nine-year-old Shannon Stone will be buried in his hometown Brentwood. The firefighter died Thursday after falling 20 feet while trying to catch a ball for his six-year-old son who was with him at the game. Rangers outfielder, Josh Hamilton, had tossed a foul ball into the stands. Stone reached for the ball but lost his balance and crashed head-first into a scoreboard.

The Rangers have donated an undisclosed sum of money to help the family.

And Betty Ford is to be buried in a private funeral Thursday alongside her husband in Grand Rapids, Michigan. The former first lady died of natural causes in Rancho Mirage, California on Friday, she was 93. Tomorrow, she will be remembered in the desert region that she and her rehab center made famous by treating Hollywood stars for alcoholism and other addictions. The Better Ford center has treated more than 90,000 people since it opened back in 1982. Ford revealed her own addiction to painkillers and alcohol after leaving the White House.

Even though British tabloid "News of the World" printed its last issue on Sunday, the scandal hitting Rufford Murdock news court keeps widening. The latest claims involved 911 victims and the former prime minister.

(COMMERCIAL BREAK)

KAYE: The debt ceiling debate is big news at the White House and in Washington, but how are the negotiations being viewed on Wall Street? Well, right now the Dow is down about 160 right there. Alison Kosik joins me from the New York stock exchange. How much of this can we blame on the debt ceiling negotiations?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hey, Randi. You know, part of the fell-off you can blame on those negotiations, because the fact is the debt ceiling is really a big concern on Wall Street. But the reality is, the markets actually fell way before the president spoke because we've got debt problems all around the world.

You know, first of all here in the U.S., we've got congressional leaders still negotiating on a debt ceiling. And you know what? Wall Street is betting a deal will be done in time, but the problem here, at least for the markets, is the longer it's pushed off, the more nervous investors are getting. But as I said, there's problems in other places, and like in Europe are getting worse. The focus now is actually on Italy, and worries that it may default on its debt.

Then we've got the Greek debt load, they've been a big problem for months. But Italy is more important, it's a much bigger economy than Greece is.

Also, Thursday in going on the market, European banks, they're undergoing stress tests, and many are expected to fail these tests, meaning they may not have the right mix of cash and debt to survive a new financial crisis. So, bottom line with this, Randi, the U.S. debt problems, they are only part of the story as to what's happening with the financial markets today - Randi.

KAYE: Yes, and where do we go from here is the question? I mean, can we expect the market to keep dropping as the debt ceiling negotiations drag on, which they certainly seem to be doing?

KOSIK: They do. But you know, we won't necessarily see the markets turn lower. We're getting in the second quarter earnings season, in fact it begins later today after the bell. We're going to get the quarterly report card from aluminum giant, Alcoa. And you know, its expectations are generally high for this report card, and that would - could wind up happening if you could see the market swaying more towards the positive side after sharing the spotlight, you know, with these debt negotiations. But it's also the fact remains that we've still got a lot of negative forces on the market, the economy is still a big concern after Friday's dismal jobs report, and the debt ceiling is still going to be this underlying issue, because it really doesn't go away until we have a deal because the prospect of the U.S. defaulting could really whirl (ph) the markets - Randi.

KAYE: And the president, today, Alison, really had some tough words. I mean he says that he will not accept a continuing resolution, whether it's 30 days or 60 days. Is that something that Wall Street would welcome?

KOSIK: You know, I talked to a few traders, and although the president was saying defiantly he would not accept that, traders actually think maybe he would. And they saw it as a positive that they see maybe a 90-day continued resolution would be a positive because it would mean that negotiations are closer to a settlement.

And these traders tell me, you know what, if this happens, you could see the market rally again. But the reality is, it would very -- it would be one of those short time -- short term bumps because once that 90 day time period is up, you'd see the market fall back because the debt ceiling would only be raised by just enough to cover the amount of the continuing resolution and, of course, they'd be fight all the same old battles all over again.

What you see about Wall Street is, they're really headline driven at this point. And that if there is some sort of 90-day continuing resolution, the market would rally on that. But in the short term.

Randi.

KAYE: All right, Alison Kosik at the stock exchange for us. Thank you, Alison.

Well, the salacious saga that killed the British tabloid "News of the World" is widening. And now there are allegations against another paper owned by media mogul Rupert Murdoch. One day after the paper printed its final edition, Britain's "Daily Mirror" is reporting that journalists from "News of the World" tried unsuccessfully to gather phone records of 9/11 attack victims. "New of the World" is closed after being exposed for hacking into the phone of a murdered schoolgirl. Dan Rivers joins us now live with the latest.

Dan, what do we know about the "Daily Mirror's" report about the 9/11 victims?

DAN RIVERS, CNN CORRESPONDENT: Well, this is the allegation from "The Mirror," that the journalists from "The News of the World" contacted a former New York policeman to try and get phone numbers of families of those killed in 9/11. According to this account, the phone numbers were not handed over. But I think it shows how international this story is becoming. It's no longer a small, parochial story in the UK about the dodgy practices of a tabloid here. It's getting a lot bigger than that.

And one illustration of how much bigger it's getting is that the latest victim that is alleging that they were targeted is the former prime minister here, Gordon Brown, who is suggesting that he was targeted by "The Sun" newspaper, a different newspaper to "The News of the World." It's sister publication, but owned by Rupert Murdoch, none the less, and also "The Sunday Times," also, again, a Murdoch publication. And those inquiries and attempts to get personal information related to an illness that his son had, his bank details, his property transactions and so on. So this is getting bigger. It's not going away.

KAYE: Yes. And as it gets bigger, I mean you've got to wonder how all of this might affect Rupert Murdoch's acquisition of British Sky Broadcasting.

RIVERS: Well, that now has been referred to the competition commission, which looks into issues of plurality here in the U.K. media. That was something that they were resisting all the way along, News Corp. Now, though, they've embraced it and it's effectively giving them 24 weeks of breathing space while that's looked into by the competition commission. And I guess they're hoping that the kind of -- the hysteria around this story calms down a bit and allows them to perhaps get that deal through. It's looking less and less likely, it must be said, that that deal would be approved now.

But, yes, there are all sorts of strands to the stories. One of the newspaper here has got a headline that the queen's personal details were sold by corrupt police officers that were charged with protecting her to a journalists from "The News of the World." Now, the palace isn't commenting on this saying that this is -- they don't comment on an active police investigation. But if this is true, I mean it's difficult to imagine a sort of more breach of security for the royal family. Because it's not only her phone numbers and those around her that supposedly were handed over, but also her itinerary as well. Where she was going to be and when. You imagine if that got into the wrong hands.

KAYE: Yes. And Murdoch was in London, wasn't he? I mean has he addressed this at all?

RIVERS: He's in London and has kept a fairly low profile. He was pictured yesterday with his embattled chief executive, Rebekah Brooks, having a meal in an exclusive area of London. But no comment, really. He's not come out and held a press conference. He's here, we think, to deal with this crisis in his media empire. But so far he's just not coming out and talking to anyone, which is quite extraordinary giving some of the allegations swirling around his publications. Now not just "The News of the World," which has been shut down, but this is also spreading to "The Sun" and "The Sunday Times."

KAYE: Yes. Yes. Well, I would imagine at some point he'll probably have to say something.

Dan Rivers in London for us. Dan, thank you.

Well, we are breaking records with the heat. Have you noticed. More states are facing triple digits today. We've got the highs and more highs straight ahead.

(COMMERCIAL BREAK)

KAYE: Checking top stories for you now.

At least one person is dead after a train crash in Maine. It happened in north Berwick around 11:00 a.m. this morning when an Amtrak train collided with a dump truck. The driver of the truck was killed. So far there are no reports of any serious injuries of train passengers.

A suburban Dallas school superintendent may get fired tonight after just one day on the job. Kathy Augustine used to be a deputy superintendent in the Atlanta school system, which has been hit by a grade changing scandal. Well, investigators released a report last week accusing her of withholding information and making false statements. Augustine has denied the allegations, but Texas school board has scheduled a vote tonight on whether she should be fired.

NASA has concluded that a piece of nearby space junk poses no threat at all to the Atlantis space shuttle or the International Space Station. Atlantis docked with the Space Station yesterday. Earlier, mission controllers worried that the remains of an old satellite could threaten the mission, but now they say the debris will pass by at a safe distance.

Federal authorities want to know how a stun gun turned up on a JetBlue airplane. A cleaning crew at Newark-Liberty Airport found the gun in a seat back pocket last Friday on an airliner that had arrived from Boston. It's not clear who the gun belonged to or how it might have been brought on that flight.

Well, it is about to get hot, hot, hot in some regions of the country. Eighteen states and parts of the plains, the Midwest and the southeast are under heat advisories this week. Temperatures could exceed 105 degrees Fahrenheit in some areas. So let's get the very latest now from Jacqui Jeras.

Boy, that -- I'm looking at that map behind you and it looks pretty darn hot.

JACQUI JERAS, AMS METEOROLOGIST: It does. It's wicked hot. You know, and it's really become downright dangerous, Randi. In fact, we're got reports from three states at least now that are reporting heat-related fatalities in the last couple of days. So Texas, parts of Arkansas have seen that, and now into Illinois. We just got a report from last night that a man in his 50s succumbed to the heat. Didn't have any air conditioning, unfortunately. So it's dangerous.

And check on your neighbors, check on your friends and don't forget about those pets either because this is day three of this heat wave. And we're talking about at least another day for most of you and perhaps as much as a week to go for places like Oklahoma City and down into parts of Texas. So this is really gripping the nation.

This is the worst heat that we've seen so far this summer. It feels like 99 already in Kansas City, 104 in Memphis, 98 degrees in Houston. And we're going to see more of this tomorrow. You know, we see more heat-related deaths than any other weather phenomenon. In 2010 alone, 138 people died from that heat. A number of records. Yesterday, Wichita, Kansas, taking the highest number there at 111 degrees.

One other quick note I want to mention. We've had some severe thunderstorms rumbling across parts of the upper Midwest. A severe thunderstorm warnings was in effect across the Detroit area. And these storms have a history of causing a lot of wind damage. Airport delays to go along with that as well.

Randi.

KAYE: All right, Jacqui, thank you very much.

Pro-surfer Bethany Hamilton is making her mark on the sport. Not letting a near fatal shark attack stop her from reaching her dreams. You will meet her. She'll be right here in studio, next.

(COMMERCIAL BREAK)

KAYE: As we've been telling you, negotiations continue regarding the debt ceiling. House Speaker John Boehner is expected to make some comments in just a few minutes from now. You're looking at a live picture on Capitol Hill. We will bring you those comments as soon as he starts to speak right here on CNN.

An inspiration for all. You may remember the story of Bethany Hamilton, an up and coming teen surfer who was attacked by a shark back in 2003. She lost her left arm in that attack, but vowed to get back on the board. And she has many times. Bethany has been a fixture on the pro-surfing circuit for several years now. Her determination and drive to overcome the tragic attack wasn't lost on Hollywood. The story is told in the movie, "Soul Surfer." Bethany and her mother Sherry join me now in Studio.

Now, great to have you here.

BETHANY HAMILTON, PROFESSIONAL SURFER: Thank you for having me.

KAYE: Congratulations on the movie and your new book that you've written.

HAMILTON: Thank you.

KAYE: First, let me ask you, I know you were injured not too long ago in Indonesia. What happened and how are you doing?

HAMILTON: Well, I was on a surf trip in Indonesia just searching for waves, and where I was, it's basically in the middle of nowhere. No any kind of -- like no Internet or phone service or anything like that. And I was surfing and I hit my fin on my arm. A little gash. And I ended up damaging a nerve. So then I ended up having to get surgery about a week later and the doctor repaired my nerve. So I'm in the healing mode right now and I haven't surfed for like two weeks. So I'm a bit -- my scales are drying out, but --

KAYE: I bet.

HAMILTON: So I'm just happy that I'm OK.

KAYE: I bet you were a little concerned, I mean, because I understand you lost quite a bit of blood there.

HAMILTON: Yes, I did, and we were at least a 15 hour boat ride from any kind of help so it was a bit intimidating at the time. So, yes.

CHETRY: So when do you think you might be back on the board and competing again?

HAMILTON: I think I have a couple weeks, so.

CHETRY: That's it?

HAMILTON: It's OK. I'm just trying to take it one day at a time.

CHETRY: The movie, "Soul Surfer," a big success. Opened really well, doing well in the theaters, coming out on DVD.

What was it like -- I mean, I understand that you were on set for much of it, your family. What was it like to be there and sort of relive all of this? HAMILTON: It was exciting and an amazing journey making the film. You know, Sean McNamara, the director of the film really allowed my family and I to be a part of every step of the way, from casting to script writing and then we all pretty much lived on set and it was really good and helped keep the authenticity and truth in our story. And that's what really mattered to us.

CHETRY: And a lot of new details are in the movie and also certainly in your book, Cheri, about what happened that day that you lost your arm.

Is there anything, Cheri, that you can tell us that we should know that we haven't heard before?

CHERI HAMILTON, BETHANY'S MOTHER: Well, one detail that I just learned which didn't make my book, the day we shot the Thailand scene, the next day the tsunami hit Hawaii. It was small, but it was just interesting that that happened.

CHETRY: But, as you worked on the movie and you saw it all, I mean, how difficult was it to just relive all of that as a family?

C. HAMILTON: A few scenes were traumatic. I had to walk away from the monitor. I couldn't handle it.

B. HAMILTON: I guess being the parents, it was a bit rough. For me, I've healed so well from the whole experience and I just enjoyed getting to know Anna Sophia who played me. I thought she did an amazing job. And just -- I learned a lot every day on set of how making a movie is so difficult. It was really a lot of fun, though.

CHETRY: The movie is called "Soul Surfer," as we mentioned. How important is your faith to you, because I know that certainly played a big role, and even there was a little bit of controversy about the role of faith in the film.

B. HAMILTON: Yes. I mean, my faith in God is part of who I am and so I think it's important to share who I am and what I believe in. And it was important to show the struggles we went through, but also triumphing over that --

(CROSSTALK)

CHETRY: I'm sorry to interrupt you. So sorry to interrupt you but House Speaker John Boehner is speaking now so let's listen in first.

B. HAMILTON: OK.

(JOINED IN PROGRESS)

JOHN BOEHNER (R), SPEAKER OF THE HOUSE: Our disagreements are not personal. They never have been. But the gulf between the two parties now is about policy. It's not about process, and it's not about personalities.

The President and I agree that the current levels of spending, including entitlement spending, are unsustainable. The president and I do not agree on his view that government needs more revenues through higher taxes on job creators. The president and I also disagree on the extent of the entitlement problem and what is necessary in order to solve it.

Most Americans would say that a balanced approach is a simple one. The administration gets its debt limit increase, and the American people get their spending cuts and their reforms. And adding tax increase is to the equation doesn't balance anything.

The American people understand that tax hikes destroy jobs. And the last thing we should be doing right now at a time of 9.2 percent unemployment is an acting more government policies that will destroy jobs. What the American people want is for us to work together to remove government barriers that are getting in the way of job creation and real economic growth.

Two of the biggest obstacles to job growth that we face are out of control entitlement spending and the current tax code. And I think the fundamental questions are this. Can you control government spending without fundamentally reforming entitlements? I think the answer is no. Do you need to raise taxes in order to get control of spending? I think the answer is no.

If you want to see an increase in government revenues, then let's grow the economy, create jobs, broaden the tax base and lower rates. Senator Rubio said last week we don't need more taxes. What we need are more taxpayers.

So our disagreement with the president is not about closing loopholes. None of us are fond of -- of loopholes. Our disagreement is over the idea of raising taxes on the very people that we're asking to create jobs in our country.

I agree with the president that the national debt limit must be raised, and I'm glad that he made the case for it today. But the American people will not accept-- and the House cannot pass -- a bill that raises taxes on job creators.

The House can only pass a debt limit bill that includes spending cuts larger than the hike in the debt limit, as well as real restraint on future spending.

My colleagues and I believe we should enact a balanced budget amendment to keep the federal government from spending as into the same situation again. I think we also need real reductions in spending right now and spending gaps to ensure that any progress that we make is not undone in the future.

Listen, I agree with the president we cannot allow our nation to default on our debt. But to prevent the default, a bill must pass the Congress. And a bill that doesn't meet these tests can't pass the House of Representatives. This is the message that we would take again to the White House today and hope that we can work our way through this. QUESTION: Mr. Speaker, is your side willing to carry most of the water here, if you can get the president to set aside the tax issue? You have, you know, anywhere from 80 to 120 people on your side of the aisle who don't want to vote for a debt ceiling increase no matter what. How can you get past that unless the president limits the tax?

BOEHNER: I do think that whatever agreement that we come to is going to have to pass the House and Senate on a bipartisan basis.

QUESTION: How much?

QUESTION: Extraordinary moment today at the White House if a Democratic president is saying that we need to cut entitlements. He also praised you for making a good-faith effort to come at a -- at a big agreement to deal with this issue.

On a personal level, are you disappointed that this moment seems to have gone away, this idea of a big agreement that would really, truly deal with the deficit crisis?

BOEHNER: So we have been involved in -- in, I think, very sincere and honest negotiations and honest discussions. I think the president and I both understand that -- that the nation faces a very difficult decision. And there clearly is no personality difference between the president and I. I get along with him fine.

This boils down to two things, and I said it on Saturday night. The president continues to insist on raising taxes, and they're just not serious enough about fundamental entitlement reform to solve the problem for the near to intermediate future. I want to get there. I want to do what I think is in the right -- the best interests of the country. But it takes two to tango, and they're not there yet.

QUESTION: Mr. Speaker, you say that tax increases can't pass the House, but you talked to the president about the massive -- the -- the big deal, $4 trillion, that included a massive tax increase. What do you...

BOEHNER: There were no tax increases ever on the table. There was never any agreement to -- to allow tax rates to go up in any discussions I've ever had with the White House -- not one.

QUESTION: Mr. Speaker, the president today sends that he's prepared to take significant heat from his party to get something done. Are you no longer are not willing to take similar heat? If you are, where?

BOEHNER: I understand that this is going to take sacrifice, and it's going to take political capital on both sides. And I'm certainly willing to take my fair share of it. But if we're going to take political capital, then let's step up and do the big thing and the right thing for the country.

QUESTION: Is that the 4 trillion?

(END COVERAGE) CHETRY: All right. You've been listening there to House Speaker John Boehner, also talking tough just like President Obama earlier today saying that he had several questions, one of them being, can you Control spending without reforming entitlements? His answer for that was no.

His disagreement with the president he says is about raising taxes on people that they are asking to create jobs. They said that the Republicans will not pass a bill that raises taxes. And some of his closing words there, I want to get there, it takes two to tango, they're not there yet. Will they get there by the deadline, August 2nd, we will wait and see.

In the meantime, we're going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

CHETRY: And there she is, Bethany Hamilton, pro-surfer and inspiration to so many. She's in studio with us along with her mom, Cheri. We were talking to her before John Boehner, the House Speaker had come out to make some comments on the debt ceiling.

So we just wanted to just continue that and say a thank you, a formal thank you for coming into studio. Didn't want to leave the interview just as we did.

So I just want to mention, though, the DVD about your movie, "Soul Surfer." Comes out August 2nd. And you have the book, "Raising a Soul Surfer," which is certainly going to be an interesting read.

So, thank you both for coming in.

B. HAMILTON: Mahalo.

KAYE: Mahalo. Very nice. Hawaiian. Appreciate it. Thank you.

Well, time right now, 43 minutes past the hour. Let's take a look at some of the news and other headlines that you may have missed.

President Obama is scheduled to meet with congressional leaders just about 25 minutes from now to once again discuss the debt ceiling. At a news conference a short time ago he reinforced his commitment to get a deal done before the looming August 2nd deadline, but he stressed that compromise on both sides is essential. The president met with congressional leaders for roughly 75 minutes last night.

A shocking new development in the scandal surrounding media mogul, Rupert Murdoch. Former British Prime Minister Gordon Brown now accusing journalists from across Rupert Murdoch's News International media group of illegally trying to obtain private medical information about his family, details of his bank accounts and even his phone messages. These claims are the latest in the eavesdropping scandal that brought down Murdoch's "News of the World" newspaper. "News of the World" published its final issue yesterday. First Lady Michelle Obama plans to travel to Palm Desert, California, to attend former First Lady Betty Ford's funeral. Secretary of State Hillary Clinton will also attend the service and will be accompanied by her husband former President Bill Clinton. According to a family representative, there will be two services for the former first lady. One will take place tomorrow in California, and the other will be on Thursday, in Grand Rapids, Michigan.

Yesterday's women's soccer game between the U.S. and Brazil produced a sports moment so amazing that you have to see it to believe it. Down a goal with the final moments of extra time ticking away, yes, it seems the U.S. were poised for a disappointing defeat. But then, as you saw there, the amazing happened in a desperate flurry. The U.S. midfielder Megan Repinoe streaked down the sideline, sent a booming Hail Mary across, towards the box. The pass is miraculously headed into the goal, as you saw by U.S. forward Ally Wambach to tie the game at two goals apiece. The U.S. went on to prevail in penalty kicks and will now play France in the next round. Pretty cool.

Well, your doctor's cell phone number, more face time during appointments and special office hours -- how much more money would you shell out to get these services from your doctor, a little extra care? An interesting twist on concierge medical service in less than 80 seconds.

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KAYE: Would you pay extra money for VIP access to your doctor? Some doctors are offering a new concierge service that allows patients to actually upgrade their care. For an extra $100 to $200 a month, you get some special privileges, like enhanced annual physicals, one-on- one time with your doctor and access to your doctor's cell phone number, which, of course, could be key. On the other hand, doctors are not forced to drop out of insurance networks or cut a large portion of their practice, like traditional concierge models. What we're talking about is a new hybrid twist on a movement in medicine that is certainly gaining momentum.

Wayne Lipton pioneered the hybrid concierge practice model. He's the founder of Concierge Choice Physicians, and he joins us now from New York.

Thanks for being on the show, Wayne. Tell me first what's the difference between the hybrid concierge model versus the traditional concierge practice that we know has been around for years?

WAYNE LIPTON, FOUNDER, CONCIERGE CHOICE PHYSICIANS: Well, the full model of concierge started with doctors who took their practices of 1,500 to 3,000 patients and narrowed them down to just a couple of hundred people who all agreed to pay a membership fee. We looked at this as a very tough thing to do, somewhat unfair. It disenfranchised literally thousands of patients. So we came up with a hybrid approach where doctors would spend a portion of their time delivering concierge services and the vast majority of their time continuing with their traditional practices. KAYE: So how exactly does it work? I mean, say -- if a patient who does not for the concierge service is sick and comes to office but a concierge patient walks in, does the patient who doesn't pay for that extra service get the boot, go to the back of the line?

LIPTON: No, no, no. There's no prioritization. That would be inappropriate. In fact, the first thing, the most important thing in a practice is if someone's particularly ill or has a priority need, then that priority need is taken first. There are no concierge police.

Doctors take an hour or two each day and devote it to patients who are members of the concierge program for enhanced physicals and follow-up visits, usually one or two visits an hour, which differentiates from the standard practice, where it could be four to six people in an hour.

KAYE: And doctors -- as you say, they set aside these specific hours for concierge patients, one or two patients during those hours versus maybe four to six patients. But do those who aren't paying for this extra service -- I mean, would you say that they're getting the equal amount of time and just as good a service from their doctor as those who are paying for the service?

LIPTON: Well, the nice thing about a hybrid program is that the patient, whether they're a traditional patient or a concierge patient, still has the same doctor delivering their care. So we're convinced -- and we've seen this time and time again -- the patients get very much the same care.

But with the enhanced service, a doctor can do more than just deliver the care. They can be a part of the advice and advocacy for the patient. They can help them manage some of the emotional needs, and they can help them -- encourage them to do the right thing for themselves.

KAYE: So is this what it comes down to? I mean, is this what people have to do to get great health care these days, is pay up?

LIPTON: Well, health care is shifting. You know, right now, there's a move toward what I call factory medicine, where there are larger and larger entities, depersonalization. And I believe there's a schism in health care, where people will be either part of the factory system, or they'll be part of a private health care system.

The hybrid concierge program for primary care doctors is a great way to encourage patients to have a choice and to encourage doctors to continue to be great doctors. So we see this as a gap -- actually, it's a tremendous problem solver for health care today.

KAYE: All right. Wayne Lipton, appreciate your coming on the show and your insight into this new trend. Thank you so much.

Well, imagine shopping for groceries in the subway without you ever taking a step inside a store? We take you underground to show you exactly how. That's next. (COMMERCIAL BREAK)

KAYE: Every day on this show, we do a segment called "The Big I." It's about big idea, innovations and solutions to problems. Well, today we're going underground to do two things at once, a little grocery shopping and catching the subway train. You're probably asking, What? How does that work, right?

All we have to do is look towards the South Koreans to show us something about time management. See those pictures those guys are putting up? That's an experimental virtual grocery store being plastered to the walls of, believe it or not, the subway.

Home Plus (ph), a South Korean grocery chain, has developed a system that basically allows commuters to restock their kitchens while they wait for the train. This is an exact replica of what you would see on store shelves. Each grocery product has a unique code, and all you have to do is use an app on your smartphone to snap a photo. The app uses the code and the picture to identify the product and its price, which then go into an on-line shopping cart. Once you check out, your groceries are delivered right to your door.

How cool is that? Apparently, it's that simple and that productive. Home Plus reports the virtual grocery store is a huge hit and has increased on-line sales by more than 100 percent. For much more on this, you could check out my Facebook page /Randikcnn.

The Republican race in Iowa is tightening up, with Michele Bachmann scoring a big win. Your CNN "Political Update" is next.

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KAYE: Time now for a CNN "Political Update" and a little bit of confidence from Sarah Palin, talking about what might happen if she decides to run. CNN political producer Shannon Travis joining me now from Washington. Hi, there, Shannon. What are we hearing from the former Alaska governor, exactly?

SHANNON TRAVIS, CNN POLITICAL PRODUCER: Hey, there, Randi. You're right, a lot of confidence from the former Alaska governor. Sarah Palin in a "Newsweek" interview basically said that she could win the presidency if she decides to run.

Take a listen to one of these quotes here that stuck out at me. Quote, "I'm not too egotistical as to believe that it has to be me or it can only be me to turn things around, but I do believe I can win."

The former Alaska governor is also saying that the field needs to widen, that there need to be more candidates. You know that there are 10 major candidates now. And she also says that her daughter, Bristol, wants her to win.

Moving on to another -- an actual candidate, Michele Bachmann, the congresswoman. She's rising in the polls, possibly posing a threat to some of her Republican rivals. There's a new poll from the Iwillrepublican.com (ph), where she is at 25 percent. That's a few points ahead of Mitt Romney. He's at 21 percent. And Tim Pawlenty and Herman Cain are both at 9 percent. She's been rising in some recent polls.

And another story, Randi, that you mentioned earlier this hour, the funeral for former first lady Betty Ford. The current first lady, Michelle Obama -- she'll be attending that funeral tomorrow in Palm Desert, California -- Randi.

KAYE: All right, Shannon. Thank you very much for the update. And your next update from "The Best Political Team on Television" is just an hour away.