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Bipartisan Debt Deal May Be Close; Iran Court to Rule in "Hiker" Case; "The Time is Now to Help," "Face to Face" with Magaret Cho

Aired July 31, 2011 - 17:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: If you're just tuning in, U.S. Congress could be close to a deal to raise the debt ceiling. Members of both parties are working behind closed doors right now on a new plan. This is after the Senate blocked a move to vote on another one proposed by Majority Leader Harry Reid. Sources tell us that the bipartisan plan would increase the debt limit through the end of next year, beyond the election. Cuts and spending caps are still on the table. And House Speaker John Boehner apparently is planning a conference call sometime soon with House members.

So we have up to the minute coverage of what's happening in Washington. CNN's Kate Bolduan is on Capitol Hill. Dan Lothian at the White House.

Let's begin with you, Kate. Senate leaders in both parties say they are, quote, "very close to a deal." We know they are still negotiating. But what have you been able to find out about what is in this framework of this $3 trillion deal?

KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: Now, there - we don't have specifics of, of course, the final deal because, as they always say, there's no deal until there is a deal. But we are getting some details are emerging of a tentative framework of what the negotiators are talking about.

Real quick before I get to that, we have - I don't know if we actually have the video turned around quite yet. But we did just a short time ago, my colleague, Ted Barrett was over outside Nancy Pelosi's office. She's the Democratic leader in the House. She was meeting behind closed doors with these other Senate and House Democratic leaders in her office for about an hour and a half. Obviously talking about kind of the state of play and where negotiations stand. And they were met by obviously a crush of reporters as they were heading out.

Without answering, really, any questions, the top Democratic in the Senate Harry Reid was asked do you think you'll get a deal today. And he said, I hope so. So, again, that tone of kind of optimism that we have been sensing throughout the day here on Capitol Hill.

But in terms of that framework we're talking about, you mentioned $3 trillion package. That is what the top Republican in the Senate, Mitch McConnell, said that he hopes is kind of the package in terms of the savings there. But we're also talking about a debt ceiling increase of around $2.4 trillion that would get you through 2012, a key point of contention throughout these negotiations.

We hear this could be a two-step process. And that has been a sticking point as well. But, the way this two-step process would be structured, we're told, would effectively guarantee that second extension of the debt ceiling that would have to happen early next year, that would effectively guarantee that would occur without having to face kind of this deadlock that we are facing - that we are kind of currently dealing with at this very moment.

And another interesting point, while it is - obviously gets a little complex, is that this tentative framework includes setting up a special Congressional committee of Members of Congress that would be charged with finding and recommending deeper spending cuts, finding more deficit reduction measures, more than $1 trillion is what we're hearing, and report that back to Congress and Congress then would have to vote on it.

And that's a key point and a key part of plan of where the negotiations have been in the past week, because they were trying to figure out a way, and they call it the trigger mechanism, to make sure that this committee doesn't get - doesn't end up deadlocked like so many committees and commissions do and that Congress would actually act on their recommendations.

And that, of course, we've been learning a little bit about today, Fredricka.

WHITFIELD: All right. Kate Bolduan on the Hill, thanks so much for that.

Let's go to the White House and check with our Dan Lothian who's there to get another take on perhaps the White House revealing a little bit more about how they may be involved in this or at least what they think about this framework.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, look, first of all, I think most aides here at the White House and other sources who are close to these - these negotiations will point out that significant progress has been made over the last 24 hours. But there's always a warning that we get with all of these updates, and that is that there's no deal yet. There are some key issues that still need to be worked out.

Having said that, the talks continue here at the White House behind the scenes, we're told. Vice President Biden, who has been involved in the talks over the last couple of weeks is, again, involved in those talks today, even a meeting with the president. Even though a deal may be reached over the next few hours, some of the president's top aides are already pointing out that some of the damage has already been done to the U.S. economy.

(BEGIN VIDEO CLIP)

DAVID PLOUFFE, WHITE HOUSE SENIOR ADVISER: You flash the stock market decline this week. It's clear that it's hurting consumer confidence, business confidence. We have to remove this specter. The debt ceiling has been raised dozens of times over the last couple of decades. It has to be raised again. And, again, let's remember what we're talking about here.

(END VIDEO CLIP)

LOTHIAN: Now, Fredricka, again, the word that you hear here is "hopeful," but it's cautious optimism. A lot of people pointing out to other times throughout this entire debate over the last few months, in particular over the July Fourth weekend, when some believed that they were very close to getting a deal. And the deal did not happen.

What's different this time, obviously, is that we're up against this very short deadline of August 2nd. The hope, again, is that they can get something worked out in time. But, again, no meetings planned yet at the White House.

I asked one Democratic official close to these negotiations if there was anything on the calendar for the president to come out for any briefings. I was told by this official, all things are possible. Nothing on the schedule - Fredricka.

WHITFIELD: All right. Dan Lothian, thanks so much from the White House. Appreciate that.

So the debt crisis loomed large today. When Joint Chiefs Chairman Admiral Mike Mullen made an unannounced visit to Afghanistan, troops asked him how a U.S. default would affect their paychecks.

(BEGIN VIDEO CLIP)

ADMIRAL MIKE MULLEN, JOINT CHIEFS CHAIRMAN: One of the concerns that - that young men and women expressed to me on this trip is here we are halfway around the world, fighting our country's wars, and I've got to worry about a paycheck potentially on the 15th of August, which is what would be the first payday, if you will, that from my understanding would be in jeopardy if, in fact, we default.

(END VIDEO CLIP)

WHITFIELD: The soldiers also pressed Mullen about the debt debates impact on overall military operations.

A U.S. default could certainly hurt world markets as the U.S. dollar plays a critical role in global economies. Joining me right now by phone to discuss the impact of the debt crisis on the Asian markets, which begin to open in less than three hours from now, Pauline Chiou. She is the anchor of CNNI "WORLD BUSINESS TODAY."

So, Pauline, first how do you expect the markets may react from the dribblings of a possible deal?

PAULINE CHIOU, CNN CORRESPONDENT (via telephone): Yes. Dribble, dribble, yes. We're hanging on to every word of what's coming out of Washington even though it's the early morning hours here in Asia.

Well, Fredricka, at this moment it looks like we are in for a mixed open. It looks like the Nikkei in Tokyo and the KOSPI in Seoul, South Korea, and the Shanghai Composite in Shanghai are poised for a higher open, slightly higher. Sydney, we also watch the stock market in Australia, is points for a lower open. The Hang Seng in Hong Kong is poised for a lower open by more than one percent.

But this is a far better picture than last week when all the major indices in the Asia Pacific Region ended the week down by about two to three percent. Now, China and Japan are especially interested in what's happening in Washington. And that's because China and Japan are the two biggest foreign holders of U.S. debt. China with $1.3 trillion worth of debt. Japan with more than $912 billion in U.S. treasuries.

And you had just played that sound bite of - from Admiral Mullen about U.S. military personnel wondering if they're going to get their paychecks. Well, China and Japan are wondering if they're going to get their interest payments. Because on Thursday, $90 billion of treasury bonds are due to mature. And many of those bondholders are foreign holders. So perhaps China and Japan are among those holders. These bondholders are wondering if they will get their interest payments.

So a lot at stake here in Asia as well as we're watching what's happening in Washington.

WHITFIELD: And can there be a direct correlation being made between, you know, the lower opens in large part because of a U.S. deal or no deal?

CHIOU: Oh, absolutely. Absolutely. Because if we look at last week, it was a very jittery market here in Asia and that's because we had just sort of finished focusing on the Euro Zone debt crisis. And then everything moved over to the U.S. debt crisis. And there was just a lot of caution in the Asian markets.

And a lot depends on how the dollar is doing. And right now the dollar is weak and that affects currencies here in Asia. And it also affects the price of commodities. And, for example, with a weak dollar, it's pushing up the yen. And that's bad for Japan, because Japan is mostly a country of exporters. And so a stronger yen makes their products more expensive overseas.

So that hurts the export markets and, in fact, for example, last week Canon said that - that 20 percent of their net profit for the last quarter was down mainly because of a stronger yen. So it's companies like Canon, Sony, Panasonic that are all watching this dollar/yen exchange rate. And because of what's going on in the U.S., it's pushing down the strength of the dollar which is pushing up the yen. And we're also seeing stronger currencies like Sydney in Australia, the Aussie dollar is high. The Singapore dollar is high.

So this whole debate going on in Washington is definitely affecting the markets here in Asia and also the currency markets as well.

WHITFIELD: All right. Pauline Chiou, thanks so much, reporting from Hong Kong. Appreciate that update. And this lingering question, is Washington on the right path to avoid a downgrade of the U.S. credit rating? Earlier CNN's Gloria Borger talked with a top economist about that.

(BEGIN VIDEO CLIP)

GLORIA BORGER, CNN SENIOR POLITICAL ANALYST (on camera): Do you think this is also enough to kind of avert a downgrade from our AAA status right now?

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Well, yes, of course, I'm - you know, I'm not in the rating agency. I can't speak for them.

But listening to what they have to say, I think this would be sufficient, yes. You know, now, all the rating agencies have different opinions. Some may go down a different path. But I think broadly speaking, this is a - if it comes close to what they're talking about now, this is substantive and I think it should avoid a downgrade.

(END VIDEO CLIP)

WHITFIELD: The AAA rating means the U.S. is one of the world's safest investments, and that has helped the government borrow at extremely cheap rates to meet its financial obligations.

So tonight at 9:00 P.M., CNN Special Report, just what will it take to find a solution to the debt crisis? Wolf Blitzer and Don Lemon breakdown the obstacles and the options. Don't miss "Get It Done: Countdown to Debt Crisis" tonight 9:00 P.M. Eastern right here on CNN.

And comedienne/actress/activist Margaret Cho, you know her for her comedy and for being a gay rights activist.

(BEGIN VIDEO CLIP)

MARGARET CHO, COMEDIENNE/ACTIVIST: In my world, you know, everything is gay. Everything is - is queer. And so to move outside of that is just always this sort of a strange experience.

(END VIDEO CLIP)

WHITFIELD: And today "Face to Face," she's talking about her very open marriage. "Face to Face" with Margaret Cho, later in the NEWSROOM.

But first, new hope for two American hikers held in an Iranian jail. While the hikers' supporters rally state side, Iran makes a surprise move.

(COMMERCIAL BREAK)

WHITFIELD: Welcome back. Some developments in the debt limit debate.

Let's go to Kate Bolduan on Capitol Hill. Kate? BOLDUAN: Hey, there, Frericka. What we are now learning for - this is a very big development. This is the first member of the key negotiators in these - in these debt talks has come out publicly to say he is on board. This coming from Senate Majority Leader Harry Reid, the top Democrat in the Senate.

A statement we just received from his office says Senator Reid has signed - has signed off on the debt ceiling agreement pending caucus approval. Of course, pending caucus approval means that pending - getting the same sign-off from his fellow Democrats. That, of course, leads me to believe he will probably be having a caucus meeting or at least some kind of conference call with his members at some point soon to discuss this with - with them.

But this is a major development. Because as we know, you and I, we were just talking yesterday, this is the same man who came back from a meeting at the White House with the president, seeming very pessimistic about the prospects of a deal. Today, we heard him speak cautiously optimistic as he said. And now we have for the first time one of the key negotiators publicly coming out to say that he has signed on to these - to the debt ceiling agreement.

Of course, we need to get more details about what the final deal is looking like. But, Fredricka, this is a big move. This is a very big - very big moment and a very big development in these debt talks that have been at a stalemate for longer than they have been moving forward at this point, Fredricka.

WHITFIELD: And the video we were seeing is the kind of crush of photographers trying to run up to Harry Reid as he was leaving one of the offices there. I think you described the last time we spoke that he didn't say anything during that moment. But this new development, you're just now learning off camera, in an off camera moment.

Now, there was also to be a conference call that was going to be called today with House Speaker John Boehner. Is that still on schedule?

BOLDUAN: As far as we know, this is a conference call that House Speaker John Boehner, the top Republican in the House, that he has planned to have with his Republican members in the House.

As far as we know, that conference call is still on. We haven't gotten a real read of exactly what time that conference call will be. But, of course, at this point we're now - we're very interested to see how this develops in the next few hours. And we'll obviously be reaching out very shortly to all of the key negotiators to see if they share the same sentiment that - that Harry Reid does.

WHITFIELD: Right. All right. Everybody's at the edge of their seats. All right. Thanks so much, Kate Bolduan, Capitol Hill. Appreciate that.

Right. Also on the edge of their seats, families of two American hikers held in an Iranian jail. Now they have new hope this afternoon. The hikers appeared in an Iranian courtroom earlier today and we're getting word the court could rule on the hikers' fate within the week.

Susan Candiotti has been following this story from the very beginning, joining us right now from New York. What is the latest, Susan?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hi, Fred.

Well, tonight the State Department is weighing in. A spokesman saying the trial for American hikers Josh Fattal and Shane Bauer is over. And a verdict on their spy charges could be only days away. After a final court hearing today without cameras, their lawyer says the two men again told the court they are not spies and did not illegally cross the border.

The trial today comes two years to the day the men were seized. The hikers' lawyer tells CNN the timing may be right to free Shane Bauer and Josh Fattal. Because the holy month of Ramadan is beginning and it's not unusual to release prisoners as a sign of goodwill. Their lawyer says even if the two men are found guilty, he hopes that they would be sentenced to time served.

Tonight their families issued a statement asking supporters to pray for an end to their ordeal. In their words, "We are pleased that today's hearing was the final session in the case and now hope for an outcome that will bring freedom for Shane and Josh."

On Friday in New York, outside Iran's mission, their families and Sarah Shourd, Bauer's fiancee who was freed last year, staged a rally with supporters marking the hikers' two-year-long captivity. Shourd says they were seized at gunpoint in 2009 while hiking near Iraq's border with Iran.

(BEGIN VIDEO CLIP)

SARAH SHOURD, FREED HIKER: I would ask the Iranian authorities to show Shane and Josh the same compassion that they showed me. They deserve it just as much as I do. And they really have been suffering so long. I would also, if I could speak to Shane and Josh, I would tell them that it's because of them that I'm standing here today.

(END VIDEO CLIP)

CANDIOTTI: Now, today's hearing in Tehran lasted for four hours. Tonight, the State Department again is calling for the men to be reunited with their families, Fred.

WHITFIELD: And so I wonder, too, you know, Susan, there had been some kind of rumblings that a prisoner swap was not out of the realm of possibilities. What's the latest on that?

CANDIOTTI: You know, there was a suggestion of that, but we've seen no evidence of it. And the State Department has repeatedly said that was not in the cards and it would not happen. So we doubt that that's the case.

And we also haven't seen any of Iran's evidence that they said they had irrefutable evidence that these two men were spies. But because the hearing has been closed, we've heard nothing about that either.

WHITFIELD: All right. Susan Candiotti in New York, thanks so much for that.

So with so many people struggling to make ends meet, any little bit kind of helps. In a moment, you'll meet a man whose life work is providing that little bit of extra support to people.

(COMMERCIAL BREAK)

WHITFIELD: The time is now to help. For Sal Dimiceli, it's more than a saying, it's his passion. When he was just 12, he vowed to help people in need. And for much of his adult life, this CNN Hero has been doing just that in Lake Geneva, Wisconsin.

(BEGIN VIDEOTAPE)

SAL DIMICELI, CNN HERO, COMMUNITY CRUSADER (on camera): When I go through suburbia America, in the small towns, everybody's trying to hold their head up with pride.

You've been looking for work?

UNIDENTIFIED MALE: Yes.

DIMICELI: OK. I know it's tough in a recession.

UNIDENTIFIED FEMALE: I sold all my jewelry yesterday.

DIMICELI (voice-over): These people behind closed doors, they tell their neighbors they're fine. They'd soon go in the house and starve.

(on camera): How much do you owe right now?

UNIDENTIFIED FEMALE: Gas bill, I owe about $800.

DIMICELI: I find the situation is getting worse. They need food. They need help with the utilities. This is 2011 in America? We should be helping each other.

I am Sal Dimiceli. My mission is to help my fellow Americans who have fallen on hard times. In a week, I receive 20 to 30 letters.

Me and my family are in desperate need of help. We do not want to become homeless.

I want to verify it's genuine and I want to get to them as quickly as possible.

I know right now it's tough for everybody. But we'll be here for you. We'll help you out.

I tell them how I grew up in poverty and how I understand.

Here's $100 for gas.

I help people with necessities of daily life. And at the same time, I get them together to do a budget so they can continue to survive.

I brought this for you so you can go get your wedding band back. I want them to feel free of that pain.

UNIDENTIFIED FEMALE: I'm so happy.

UNIDENTIFIED MALE: Thank you!

DIMICELI: I want them to feel the compassion that we're trying to share with them, to wrap our arms around them and say, come on, I have a little extra strength I want to share with you. And let's get you back on your feet.

(END VIDEOTAPE)

WHITFIELD: For decades, Dimiceli's nonprofit has provided basic needs and often much more to more than 500 people a year.

If you know someone who deserves a special recognition, just go to CNNHeroes.com.

Open marriage, it's how comedienne Margaret Cho describes her commitment to her husband and others.

(BEGIN VIDEO CLIP)

CHO: I think there's intimacy that is possible with everybody in the world. A type of it, you know.

(END VIDEO CLIP)

WHITFIELD: She does not hold back in my "Face to Face" conversation, next.

(COMMERCIAL BREAK)

WHITFIELD: All right.

You know Margaret Cho for her stand-up comedy, her role in "Drop Dead Diva" and her activism. She's quirky, fun and extremely honest. In my exclusive "Face to Face" interview, Cho explains her personal life.

(BEGIN VIDEOTAPE)

WHITFIELD (on camera): For a very long time you've been an advocate of gay rights, of women's rights. And you just mentioned, you know, as being a member of the gay community, however, at the same time you are married to a heterosexual man.

CHO: Yes. But I'm bisexual. So that I have different aspects of my life that seem contradictory, but they're not, because that's who I am.

WHITFIELD: You kind of made a funny of that in that, you know, in the past on your tour, I'm the one that I want, saying that you are heterophobic, actually. CHO: I was the ship comedienne on the lesbian love boat.

Yes. I'm kind of heterophobic. I'm kind of scared of straight people, but they're OK. You know, I have a lot of straight friends. No. It's just a funny juxtaposition. Because in my world, you know, everything is gay, everything is - is queer. And so to move outside of that is just always a sort of a strange experience.

WHITFIELD: How do you help people kind of understand, then, the dynamic of, you know, you being bisexual, living with a man who's heterosexual, and how you make plans going forward?

CHO: Well, I don't know. No, he's - he's the best.

WHITFIELD: Is it like an open marriage?

CHO: Well, yes.

WHITFIELD: Do you see other people?

CHO: Yes, yes, yes.

WHITFIELD: Does he?

CHO: Yes, yes. But we don't really live together either, so it's really -

WHITFIELD: So now I'm confused. So, I mean, it's not a - I guess committed relationship? I guess people think marriage -

CHO: It is committed. I mean, we're married.

WHITFIELD: OK.

CHO: And we're married forever. And that's something that I'm so grateful for and so happy for. But I also know that I cannot be monogamous. I'm just slutty.

So that - and I understand that about myself and I'm fine with it and he's fine with it, you know? And that has no effect on my commitment to him. I think sexual monogamy is really a lie that people say that they're going to do it and they only do it for like five years or six years or seven years. Most marriages last for about that long. And I've been - I've been with my husband for 11 years. We've been married for eight.

You know, I - I feel like my way works for me. But, you know, other people don't necessarily understand or want to get their minds around it. They're like, well, aren't you jealous? And I'm like no. I mean, I don't know. Like I'm just - I'm not and he's not of me. So it's -

WHITFIELD: You kind of know how you can trust one another?

CHO: Yes.

WHITFIELD: And it has nothing to do with relationship or commitment to one another.

CHO: Right.

WHITFIELD: Because it's OK to have a commitment with others, too.

CHO: Yes. But -

WHITFIELD: But there are other areas where you have trust.

CHO: -- there are other kinds, yes, other kinds of commitments. It's just sort of like you could have other different kinds of friends, you know. That there's different kinds of relationships that you can have. I mean, I think, you know.

I think there's intimacy that is possible with everybody in the world. A type of it, you know. But for - for me and him, it's very - it's very deep and very eternal. So it sort of doesn't matter the sort of smaller relationships you have in between.

WHITFIELD: So can I ask you more about this?

CHO: Yes.

WHITFIELD: So, say, for instance, you know, you all are in the same city. And one of you has decided to make a date with somebody else. Do you talk about that first?

CHO: Yes.

WHITFIELD: I'm not going to be able to go to the show with you on that one because I'm now going to hang out with someone --

CHO: Yes, of course.

WHITFIELD: Yes?

CHO: Of course. Of course. You know, if you make a plan, you tell your friend or whatever, your roommate, and, you know, like - and - you know, to me, it's sort of - I don't know. It's a very easy thing -

WHITFIELD: It's very normal.

CHO: -- to negotiate.

WHITFIELD: It's a very normal thing.

(END VIDEOTAPE)

WHITFIELD: And there's more. Comedian Margaret Cho is taking cues from the Beatles in her next project.

(BEGIN VIDEO CLIP)

CHO: The songs are, like, really melodic pop, so it's very Beatles- esque. So it's called the Yellow Album. (END VIDEO CLIP)

WHITFIELD: Hear about it later in the NEWSROOM.

(COMMERCIAL BREAK)

WHITFIELD: Our top story right now, there's no deal to raise the federal government's debt ceiling just yet, but it appears Congress is a lot closer. Earlier this afternoon, the Senate blocked a move to vote on a plan put forth by Majority Leader Harry Reid.

Parts of that plan, however, might be included in a new deal that is being hashed out by negotiators from both parties, and sources tell us that this one would increase the debt limit through the end of next year, beyond the election, and already our Kate Bolduan reporting that Senate Majority Leader Harry Reid gives a big thumb's up to that proposal. But he's hoping that the rest of the caucus might do the same.

All right, predictably, the TV talk shows were all about the debt talks in Washington this morning. Here are some of the highlights.

(BEGIN VIDEOTAPE)

SEN. MITCH MCCONNELL (R), MINORITY LEADER: At the end of the day, we cannot allow our economy to lapse into this default. It will be devastating.

BORGER: Can you announce this morning that a plan has been reached, that there's a deal?

MCCONNELL: Well, we're very close. I think we're very close to being in a position where hopefully I can recommend to my members they take a serious look at it and support it.

DAVID PLOUFFE, SENIOR WHITE HOUSE ADVISER: I think what's clear is that there's general agreement that we're going to have deficit reduction in two stages. The first is going to be something the parties largely agree on, about $1 trillion dollars in deficit reduction.

The second stage is going to be the trickier elements of entitlement reform and tax reform, which the super-committee is going to be charged with.

UNIDENTIFIED MALE: But I would think one of the hardest things for you to sell your members is that if - if this committee cannot agree on cuts for these various programs, in any - any program, then triggers - this will set off a trigger where there will be automatic cuts in these programs and also in defense spending.

SEN. CHUCK SCHUMER (D), NEW YORK: The key with the trigger is one word -- "equality." It should be equally tough on Democrats and Republicans.

The tough part on the Democratic side, if we don't come to an agreement, there will be cuts in programs that we liked - helping middle-class kids go to college, prescription drugs. On the Republican side, we believe that the triggers should have revenues, potentially, so that they would have to do things they hate, like close tax loopholes for oil companies and corporate jets.

UNIDENTIFIED MALE: Can Speaker Boehner pass this bill, whatever it ends up being, with more Democrats than Republicans and still retain his speakership?

REP. KEVIN MCCARTHY (R), MAJORITY WHIP: Speaker Boehner has been the leader on this of changing Washington. First and foremost, now we're cutting. Before, we were spending. The president, to me, has been somewhat - look, you cannot be the leader of the free world and sit on the sidelines and tweet and think you're going to get the job done.

We have been out front negotiating, talking, but we've laid out a clear set of principles that we're going to bring accountability back, and we're going to change the way Washington works.

(END VIDEOTAPE)

WHITFIELD: So people have been very busy tweeting about the debt talks. We pulled a few for you to see.

Kathleen Hennessey tweets this, "Outside the Capitol, a man holds a sign reading 'I see debt people.'" And here's the picture lots of people have been tweeting about, the guy that you just saw in a flash.

And here's a tweet from Wil Wheaton, "This is a totally manufactured, wholly-unnecessary, self-inflicted debt crisis. My country is governed by corrupt, idiotic children."

And KenTremendous tweets, "Seems like they're making the debt ceiling progress. Man, what are the odds that it could come right down to the wire like this?"

And Dave Weigel tweets this, "Question that stumps senators of both parties today, 'What do Democrats get out of this debt limit deal?'"

But Tagen Goddard has a different take. He tweets, "The big question, will Republicans actually back the proposed debt deal? Some conservatives say the GOP got played."

All right, tonight, more talk on this debt deal special at 9:00 P.M. Eastern time. Just what will it take to find a solution to this debt crisis? Wolf Blitzer and Don Lemon break down the obstacles and the options. Don't miss "Get It Done: Countdown to Debt Crisis," tonight, 9:00 Eastern, right here on CNN.

So what exactly does it mean if the U.S. credit rating slips from AAA to AA? We'll have some of the answers, next.

(COMMERCIAL BREAK)

WHITFIELD: Some other stories we're following. Iran says verdicts in the case of three American hikers held on spy charges will be announced within a week.

Josh Fattal and Shane Bauer were in a Tehran courtroom today two years after their arrest near Iran's border with Iraq. A third hiker, Sarah Shourd, was released last fall for medical reasons.

Actor Matt Damon rallied with thousands of teachers in Washington yesterday. The rally is billed as a Save Our Schools demonstration to protest the use of standardized tests to judge a teacher's effectiveness. Damon credited public schoolteachers with his success.

And Indianapolis Colts quarterback Peyton Manning just got a whole lot richer. Manning reportedly has signed a five-year contract worth $90 million. That works out to $18 million a year.

Manning is a four-time Most Valuable Player in the NFL.

And they are fired up about the debt ceiling debate. iReporters are making their voices heard on the web. Here are some of their opinions.

(BEGIN VIDEOTAPE)

BRETT BAYNE, IREPORTERS: This is your country's darkest hour. It's time to end tax breaks for millionaires and big oil companies. It's time to stop rushing to their defense and come to our rescue. It's time the super-wealthy were made part of our national debt reduction program.

It's simple. The time for compromise was weeks ago. Do your jobs, Congress.

MARIE COX, IREPORTER: Let's get out of this mess that we're in, regardless of who got us here and how it happened. We've never defaulted on a loan. Let's not start now. Let's not shipwreck this country.

FREDERIC LUMIERE, IREPORTER: The problem is, we have politicians who design plans, and you have the other side who votes against the plan. It doesn't matter what is in the plan. Each politician wants to be able to say that their plan prevailed.

VERNON HILL, IREPORTER: How can this happen? How can we elect, quote, "career politicians," unquote, that have done nothing to prevent this situation? Why are they so stupid and refuse to realize that they cannot keep spending money?

CM HOPKINS, IREPORTER: I'm with the majority of Americans who are working hard to repay what we've borrowed. I'm not defaulting on the debts I've incurred. I'm not walking away way from my obligations. We're using a strict budget to make sure our payments are met and that we'll be clear of debt very soon.

I expect my government to do the same.

CLIFF OLNEY, IREPORTER: Raising the debt ceiling should be very simple. A one-sentence statement that says it's now this amount rather than that amount. The way that we correct our deficit and our debt is through a balanced approach, and most recognize this.

(END VIDEOTAPE)

WHITFIELD: Something else we've heard over and over, if no deal is reached, the country's credit rating could be downgraded. Our Mary Snow takes a look at what exactly that could mean to you.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT: Never before has the U.S. had its credit rating downgraded, so it's difficult to quantify the impact. But one immediate impact would be higher borrowing costs, and that would affect everybody.

(voice-over): On Capitol Hill, officials from credit rating agencies fielded questions, but gave no direct answers about whether they'd downgrade the U.S. government's stellar credit rating. At the same time, a senior government bank examiner told lawmakers there's reason to worry.

REP. BRAD MILLER (D), NORTH CAROLINA: Am I right to worry that - that this could be real bad if our debt was downgraded?

DAVID WILSON, OFFICE OF THE COMPTROLLER OF THE CURRENCY: You know, it's - it's hard to measure, but I think you're right to worry. I mean, it could happen. It could - could be a big thing.

SNOW: Just how big is a mystery, since a downgrade of the U.S.'s AAA rating, the highest there is, would be unprecedented.

(on camera): Big picture, one economist estimates that a credit downgrade could eventually cost the U.S. government $100 billion a year in extra borrowing costs over the long term. Now, consumers would also pay. If interest rates on U.S. treasuries rise, that would mean higher borrowing costs on things like home mortgages, car loans and student loans, but exactly how much is unclear.

But just to give you an example of the impact of rising interest rates, let's say interest rates were to go up by one percentage point. On a $200,000 mortgage, that would mean an extra $124 in payments each month.

(voice-over): Credit cards would be affected. 401(k)s could lose ground from stock market losses triggered by a credit downgrade. Businesses, too, would feel the effects.

CHARLES RILEY, CNNMONEY.COM: Businesses are always talking about how uncertainty in the market is prohibiting them from making big - big investments, big business decisions, hiring more people. This is not going to help that if the United States is downgraded.

SNOW: While many view a downgrade as damaging, economics professor Joseph Foudy says it wouldn't be catastrophic.

JOSEPH FOUDY, NYU STERN SCHOOL OF BUSINESS: Even countries like China, which make noises about let's put their money somewhere else, where could they put it? You know, there's no market in the world that's as large as this, where you can buy and sell hundreds of billions of dollars of securities every week or every month, if you need to.

SNOW (on camera): Even with a last-minute deal to raise the nation's debt ceiling, the U.S. credit rating may still suffer, and that's because rating agencies are looking to see if long-term plans to cut the nation's debt are sufficient. And some on Wall Street now believe that a credit downgrade is inevitable.

(END VIDEOTAPE)

WHITFIELD: All right, thanks to Mary Snow.

And presidential candidates are heading to one key state this week. We'll tell you where it is and why it's so popular, next.

(COMMERCIAL BREAK)

WHITFIELD: There's more going on in the political arena than just debt talks. This week we see more action on the campaign trail.

CNN's deputy political director Paul Steinhauser has details in this political look ahead.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Hey, Fred.

There's a lot of action on the presidential campaign trail in Iowa this week. You know, that makes sense because we're less than two weeks away from a major straw poll in a state that kicks off the race for the White House.

Wednesday, Republican Party officials begin three days of meetings in Tampa, Florida, the site of next year's GOP convention.

Friday, expect lots of reaction to what's considered the most important economic number in politics - the jobs report. This is the government's outlook, the July unemployment figures.

And Saturday, Rick Perry is in the spotlight, the long-time Texas governor who's moving closer and closer to a bid for the Republican presidential nomination. He holds a national day of prayer at Reliant Stadium in Houston - Fred.

WHITFIELD: All right. Thanks so much, Paul.

And for the latest political news, you know exactly where to go, CNNPolitics.com.

Keys to greatness. For some of us, it is the difference between success and failure.

(BEGIN VIDEO CLIP)

CHO: Whatever I can do to help others, it's - that's a major part of - of my work. (END VIDEO CLIP)

WHITFIELD: Comedienne Margaret Cho talks about what gets her to the top, next, "Face to Face."

(COMMERCIAL BREAK)

WHITFIELD: Actress, activist and comedienne Margaret Cho creates her own opportunities. She also makes sure there is time for others. She talks about those projects in this exclusive "Face to Face."

(BEGIN VIDEOTAPE)

WHITFIELD: Your next project, Yellow.

CHO: Well, it's the Yellow Album. It's - it's a comedy album.

I - I released a comedy album last year called "Cho Dependent," which is all comedy songs that I wrote with Ani DiFranco and Patty Griffin and Andrew Bird and so many amazing musicians. And so my new album - "Cho Dependent" was really well received. It got a Grammy nomination.

So now I'm doing an album that's all about race, but it's also - the songs are like really melodic pop, so it's very Beatles-esque. So it's called the Yellow Album. And I wrote a song and sang it with my parents on there, because they are great musicians and great singers, so we have a wonderful, wonderful sort of trio.

WHITFIELD: Oh, so this is a family affair?

CHO: Yes. It's beautiful. And - and so I'm excited about that. And I'm writing with Ben Lee and also The Posies, which is a fantastic, fantastic band. So I'm really excited about that record.

WHITFIELD: Do you find your parents in the audience sometimes? Do you have to change your material or do you even feel a bit nervous about delivering certain things when you know your parents are listening?

CHO: No. No. Because they don't really know what I'm talking about, so they don't care. They have never had any idea what I've -

WHITFIELD: They never said, "Come on, Margaret -"

CHO: No. They don't really know. Well, they don't really know, you know? And they've always been very accepting of gays, lesbians and, you know, they're - they're super, like, open to queer stuff. You know, they have always been, so that's never been an issue.

No. They don't really - no.

WHITFIELD: OK. I'm convinced. That's cool.

CHO: Yes.

WHITFIELD: So, I liked to ask all my "Face to Face" guests three things, three keys to their success, three keys to their greatness. What would be three things that, you know, you've been able to use along the way, that you share with others?

CHO: Well, I think, you know, I'm very driven. You know, I really enjoy working, and my work is my social life also. So that's the main thing, you know, that there is no divide. You know, that - that if I'm working, that it definitely is social. It's a chance for me to connect with people.

The other thing is I always try to just know that things happen for a reason and that - that it's never, you know, a failure or whatever, that it's just - it's another direction to go on or that it's something that's being revealed.

And then the third thing is that you should always give something back. You know, whether that's about doing charity work or advocacy or activism, it's also, you know, activism on a very kind of a small level, like helping people. Like, you know, helping other comics, helping people write. Whatever I can do to help others, it's - that's a major part of - of my work.

WHITFIELD: Fantastic. Margaret Cho, so great to meet you.

CHO: So great to meet you. Thank you.

WHITFIELD: Thanks so much. Lots of fun.

(END VIDEOTAPE)

WHITFIELD: All right. Margaret Cho, Face to Face."

And there is one more we didn't get to this weekend because of all the breaking news involving the debt ceiling limit. We'll try to bring that to you next week, and - and Jacqui, you'll probably recall, Tracy Morgan, you know, kind of crossed the line, according to a lot of people. And she, Margaret Cho, has worked with him on "30 Rock" and a lot of other projects and she comments about that incident that happened and how it really is a difficult kind of quandary for a lot of comedians because they are expected to push the limits, but then they also have to know when to draw the line.

So more Margaret Cho next weekend.

JACQUI JERAS, AMS METEOROLOGIST: She's (INAUDIBLE).

WHITFIELD: She is very candid, very funny. She really is very enjoyable, as you could tell.

JERAS: Absolutely.

WHITFIELD: All right. As you are, too. Very enjoyable Jacqui Jeras.

JERAS: Oh, back at you, girl.

WHITFIELD: So, what do you have going on? JERAS: Well, we've got a lot of different things going on, and we've been specifically - can't talk today - focusing on the tropics, right? Because we've been watching this area of disturbed weather. We're concerned about what kind of an impact it's going to have in the U.S. Virgin Islands as well as into Puerto Rico in the upcoming days. And it had been showing some signs that this might develop into a tropical depression or tropical storm today.

Now, the hurricane hunters are flying into it even as we speak. Based on their information, as well as the satellite information here - we just don't have that close circulation yet. So we're not getting TD- 5. We're not getting Tropical Storm Emily. Not yet, but that's still very likely going to happen, probably even within the next 24 hours.

The computer model forecasts are showing better consensus now, bringing it very near or even over the Virgin Islands and Puerto Rico, this would happen on Wednesday. So all you folks need to be on high alert and be prepared for a strong tropical storm or maybe a hurricane by the middle of the week.

Still too soon to tell what it's doing to the U.S. right now. Best estimate, kind of staying clear of there. This is that time of the year where we get tracks very often that will move up towards in this direction, and that may very well be what we see.

Now - (AUDIO GAP) the heat, yes, once again, I know we're sounding like a broken record, but this is important because we're going to see this heat begin to build again. So it was still very hot this weekend but watch for the heat indices to be reaching up to 110 this week, and Wednesday it looks like we're going to peak out, so be prepared for that in the nation's midsection, as well as stormy weather along the East Coast of the country and the Upper Midwest as you head back to work and back to reality.

(CROSSTALK)

WHITFIELD: That's right. Reality check.

All right. Thanks so much, Jacqui. Appreciate that. And you have a great work week.

JERAS: You, too.

WHITFIELD: All right. I'm Fredricka Whitfield. Thanks so much for being with us this afternoon. More CNN NEWSROOM, straight ahead at the top of the hour with Don Lemon. Have a great week.

(COMMERCIAL BREAK)