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Reid Signs off on Debt Deal; Officer: I'll Kill Every One of You; Independent Voices in Debt Debate
Aired July 31, 2011 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: Hello, everyone. I'm Don Lemon. It is the top of the hour.
And we are tracking breaking developments this hour from Washington where there's word of a breakthrough in the debate over raising the nation's debt ceiling.
Senator Harry Reid, the Democratic leader in the Senate, has signed off on terms of an agreement. His support is pending the approval of his fellow Senate Democrats. Now, this is important for a whole a lot of reasons. First, the clock is ticking towards tomorrow's midnight deadline to avoid default.
And second, Monday trading begins on key Asian markets just one hour from now. And there is a lot of concern about how traders will react, if Washington doesn't reach a deal. So let's go there now.
Our congressional correspondent Kate Bolduan, standing by for us as she has been for so many days. Now Kate I realized Reid's approval is just a start but now I hear Nancy Pelosi, the Democrats' leader in the House also weighing in?
KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: She is and she was -- she's been behind closed doors for most of the day meeting with Democratic leadership. And she came out to cameras just a short time ago and of course, was asked the question on everyone's mind. Do you have a deal? Have you signed on to a deal?
And while she wouldn't endorse a deal, she wouldn't shoot one down. She said she needs to speak with her Democratic members in the House first. Listen here to her.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D), MINORITY LEADER: That we haven't really -- I haven't seen in writing, the final product and as you know with these things, the details are important and, again, I'll have a discussion with my caucus as to how this comes down.
(END VIDEO CLIP)
BOLDUAN: Now while, of course, we'll want to know what comes out of when she meets with her caucus and what she talks about, we -- we should note it is significant that we are talking about the framework of a deal, or the fact that they're even talking about elements of a deal at this point considering just 24 hours ago there was quite a different mood up here on Capitol Hill, Don.
As you will know there was quite a bit of pessimism up here that they were just still at a stalemate and that they were not moving anywhere. Of course a deal is not done until the -- until the deal is done. But they seem to be cautious, optimistic that they are moving towards something and a big endorsement, this earlier today from the top Democrat negotiator in the Senate, Harry Reid. So there are a lot of moving parts here.
LEMON: Ok.
BOLDUAN: And of course, were trying to track them all -- Don.
LEMON: Hey, let's talk about Republicans. And do we know where they stand and on the approval of this deal?
BOLDUAN: Yes. And that is a big question, because the House Republicans, they -- they -- you saw just how hard it was for the House Republican leadership to get their own bill through the House, and to get their own members onboard for this deal. Now talking about a compromise, you can only guess that might be even a tougher sale, possibly.
But they have -- we haven't heard yet from House Speaker John Boehner or House leadership and where they stand on things. We know, though, however, we are told by a top Senate Republican leadership aide that they're not there yet and that they are still working.
So it seems like they're still working on the deal. Clearly, not at a place where Harry Reid is at this point -- at this point and that's a big question of where are Republicans going to stand on this? Are they going to endorse it? And what their issues are with it -- Don.
LEMON: All right, Kate standby. Thank you very much. And from Capitol Hill to the White House now where our Dan Lothian is standing by, our White House correspondent. Dan, what is the President doing while these Senate moves are happening?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well look, just to jump off a little bit in the conversation that you were just having with Kate. One of the things the White House wants to figure out now is not only that they have Senator Harry Reid onboard with this framework or this plan, but also where does John Boehner stand. Where does the rest of the GOP stand on this deal, and potentially, what needs to happen with this deal in order to make them embrace. So that's a big focus of the White House this evening.
The President has not had anything, at least on paper, officially to us. We know that he has been busy here at the White House. We know that the Vice President has been involved in the discussions as well.
In fact, a Democratic source familiar with the talks here at the White House pointing out that the Vice President was in deep negotiations not only internally here at the White House but also with lawmakers up on the Hill. But the big issue, the big caution that everyone is giving here, is that there's still not a deal. That there's still a lot of work to be ironed out between all sides in this battle and, of course, as the clock winds down, everyone is hopeful -- hopeful that that deal can be reached soon.
LEMON: Ok so listen, if we have not seen or heard anything from the White House, and so is it fair to say that the White House has been silent or are they speaking to the media -- are they speaking through the media?
LOTHIAN: Well, you know, top aides made the Sunday morning show rounds this morning. But other than that, we're not -- we're getting bits and pieces of information about what's going on behind the scenes that the conversations continue, that they are hopeful.
But beyond that, we're not -- not getting any sort of readout of what the President is doing hour by hour. That's not completely unusual. We do know that the White House over the last few weeks has said that they don't read out every single phone call that's made, every bit of discussion taking place behind the scenes.
Nonetheless, they do say these talks do continue and there's a hope that the progress that has been made over the last 24 hours will continue towards a final deal.
LEMON: All right. Hey, listen, I want to -- Dan, can you weigh in on this for me? I just got -- some information that's saying, GOP, it's from the GOP -- a conference call tonight at 8:30 eastern. And again, this is just coming in. This is from Speaker Boehner's office. There will be a conference call tonight at 8:30 p.m. Eastern. House GOP chief and schedule -- that's where that comes from.
So can you talk to us about that or would it be better to go back and speak with -- as I get this off the printer here and speak with Kate Bolduan?
LOTHIAN: Well, I'm sure Kate can weigh in on this as well. But I think this goes back to what I was talking about. It's critical not only to get the Democrats on board, with Senator Harry Reid, other Democrats who are not quite pleased about this but perhaps willing to embrace it, because they don't want to see the U.S. default.
But it's critical as well to find out will the Republicans buy into this? Will John Boehner, who you remember was originally negotiating directly with the President and pulled out of those talks. The White House essentially leaving up to lawmakers on the Hill, to kind of -- giving them the space to work something out, and now there is this framework which is being embraced by Senator Reid. Will be -- will this be something that John Boehner will embrace, and then will be able to sell to his caucus?
And I think that's the question and that's what everybody will be watching.
LEMON: Ok, 8:30 p.m., Speaker of the House, John Boehner, scheduled a conference call. So we will let you know and we'll carry it, of course, on CNN if anything comes out of it.
Dan, thank you very much, thanks for helping me out with that new bit of information there.
So let's -- why don't we talk to Republican Senator, John Hoeven of North Dakota. He is new to Washington but he's not new to politics. Of course, he was Governor of North Dakota for ten years. So he handled a lot of budget issues before joining the Senate.
Senator Hoeven, thank you for joining us. I have an obvious question for you, but what do you make of this phone call.
SEN. JOHN HOEVEN (R), NORTH DAKOTA: Ok.
LEMON: This conference call tonight with John Boehner? Is that a sign of progress, do you think?
HOEVEN: Don, I think it is. Thanks for inviting me to be with you.
I think we're making progress and I think it's a good sign that they're having that conference call this evening. I think that they're going to go through some of the things that we put forward in an offer to the Democrats, and they're also going to talk about where the Democrats are in their approach right now and whether it's something that we can give back from the Senate to the House but then get passed in the House as well.
LEMON: Do you think we're going to have a deal tonight?
HOEVEN: You know, I'm not sure we'll have it completely wrapped up. I hope so. I'd be a little surprised if we're voting tonight but I hope we get to a plan that we're ready to vote on in the morning.
LEMON: Ok. So listen, Harry Reid has signed off, Nancy Pelosi is taking it to her caucus. You heard her speaking just a short time ago. I want to -- what's holding up Republicans? Will we see Mitch McConnell endorse a deal tonight do you believe even if it -- if it doesn't happen until tomorrow officially? But will we see that?
HOEVEN: That's the goal. I mean, that's really our goal is to get to something tonight that we can go through with our caucus. That the Democratic caucus can go through and that we're ready to have a vote on tomorrow morning. So that is definitely our goal. I think we're very close. We hope to be there.
LEMON: Ok.
(CROSSTALK)
HOEVEN: And the House is talking about it now as well, getting ready. Because obviously, whatever we do then goes right back to them, and we want them -- we want to hit this deadline so we're working very hard to keep it moving.
LEMON: Well, I'm glad I have you here because we have had -- as we're speaking, because things are unfolding either moment by moment here. When I had our White House correspondent on I talked about the conference call. I asked you about that.
New information now from our chief White House correspondent Jessica Yellin saying the holdup here, the holdup appears to be defense spending.
HOEVEN: Right.
LEMON: It says Speaker Boehner is objecting to defense spending cuts. What do you make of that?
HOEVEN: Well, there is a concern. One of the things that we've been working on is the trigger mechanism so that the committee if they don't get to the, say, $1.8 trillion cut level. And again, that number has changed a little throughout the day, but that there's an automatic reduction that goes into place.
So what is that trigger? Right now the discussion is whether that trigger should be across the board. One-half, though, of the cuts would go to defense, the other half non-defense. And there is concern in the House, and I think concern that we share in the Senate as well as to whether that's too heavy in the defense area.
LEMON: Ok.
HOEVEN: So that is something we're still trying to work out.
LEMON: You know, I think this -- I think this information is important. So if you will just stick by, I'm going to read it and I'm going to get your response to it.
HOEVEN: Sure.
LEMON: So listen, this is again from our White House correspondent -- chief White House correspondent Jessica Yellin. According to Democrat and Republican sources familiar with the status and discussions, Speaker Boehner's objection to defense spending cuts is the outstanding holdup to the deal at this hour. Speaker Boehner and some Republicans are disputing how much in cuts the Pentagon will face in the first round.
HOEVEN: Right.
LEMON: The Speaker is trying to protect the Pentagon further in the framework's first round of cuts. Speaker's office is negotiating with the White House trying to come to a different configuration for defense cuts. Multiple sources caution that given this road block the deal isn't agreed to. Nothing is agreed to until everything is agreed to.
HOEVEN: Right.
LEMON: And according to a Democratic source, remember that the situation today, the Vice President has been on the phone with Speaker Boehner multiple times with Senator McConnell and is going back and forth with leadership in both parties. What do you make of that? HOEVEN: Well, I think that's accurate. I think that is where we are right now, and that's certainly an issue, and there are still some things to be worked out. Then again, that's why our goal is to get something in terms of a plan by tonight, and hopefully to a vote by tomorrow morning.
But again, it's got to be something that we not only get through the Senate but we've got to get it through the House as well.
LEMON: I have taxed you enough with all of this, John Hoeven and you are a good sport about it. So thank you for coming on. All right.
HOEVEN: It's good to be with you Don. The key is that we need to keep working to get an agreement and we're going stay after it.
LEMON: I will wholeheartedly agree with that. Thank you so much.
HOEVEN: Thank you.
LEMON: All right. We may not have to wait long to see the financial impact from these negotiations. It's already Monday morning in Japan and the market there opens in less than an hour.
So I want to go to Kyung Lah, she's standing by live for us in Tokyo. Hello to you Kyung. What's expected to happen there this morning?
KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT: Well, what we can tell you, Don, is that the markets earlier had been indicating the futures that is, is that the Tokyo Stock Exchange would be opening down. But now it is indicating that the market will be opening slightly higher.
Now, of course, we don't know exactly why. But certainly that does appear to be a reflection of all of that news out of Washington, that there may potentially be a deal. And so what we're seeing here is markets holding their breath. They are hoping that there is going to be some good news out of Washington.
That would certainly be good news for this market. Last week was very tough. The Nikkei was down some 2.2 percent almost every single day last week. The U.S. dollar hit a new fresh low, a four-month low -- almost every single day last week.
And what that has meant for corporate profits here is a huge chunk of change. Every time the U.S. dollar sinks and the Japanese yen rises, what that means is that these corporations lose hundreds of millions of dollars, and that money is repatriated. Corporations like Toyota, and Nissan and Canon, all those companies that sell to the American public.
So there is a lot of anticipation here, a lot of eyeballs not (AUDIO GAP) -- Don.
LEMON: You know what, Kyung thank you.
Finally, some good news -- and there something that's good news that they are potentially close to a deal but it's good news because we thought the markets in Tokyo, the Asian markets would open down. It appears now in Tokyo it's opening up, in the plus category.
So look what happens when you agree on something. It's all good news.
Thank you, but you know, we don't know how it's going go, Kyung we're going to check back with you later on, because we're going to be covering this all evening tonight at 9:00, a CNN special report.
What will it take to find a solution to the debt crisis? Wolf Blitzer and I break down 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.
Listen to this --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Two steps back, pull my Glock .40 and just put ten bullets in your (EXPLETIVE DELETED).
(END VIDEO CLIP)
LEMON: Ok, that's mild. An Ohio police officer is caught on tape threatening a motorist and it's not the first time an incident has been caught on camera. We'll show you the video that's gone viral and talk about the case with legal contributor Holly Hughes.
And of course, we're all over the debate talks right now, the debt talks. So later we're going to talk to an independent panel and get their reaction. How are they feeling? Are they feeling left out? Is there any hope that they feel in this whole situation?
And many of you are sending for and asking for information through social media. And if you want to talk to us about the debt talks or any of the stories we're covering, go to Twitter, Facebook, CNN.com/don.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
RICHARD LANG, IREPORTER: Members of Congress, would you guys please remember the golden rule? Do unto others as you would have them do unto you. It's not do unto others before they do unto you. Please, go back to Sunday school.
(END VIDEO CLIP)
LEMON: Voices of America on the debt ceiling talks coming from CNN iReporters; cnn.com/iReports.
We're not going to go far away from that story. Want to tell you about this, though. In Canton, Ohio, some residents are demanding a suspended police officer be fired. Dash-cam video that you're about to see appears to show the officer threatening to shoot people during traffic stops.
Here's Eric Mansfield of affiliate WKYC.
(BEGIN VIDEOTAPE)
DANIEL HARLESS, CANTON OHIO POLICE OFFICER: (INAUDIBLE) Two steps back, pull my Glock .40 and put ten bullets in your (EXPLETIVE DELETED).
ERIC MANSFIELD, WKYC REPORTER: It was posted one week ago; already it's an online must-see. Canton police officer, Daniel Harless berating a driver who appears to be trying to show Harless his concealed carry license so that Harless would know he was armed.
HARLESS: (INAUDIBLE) in your (EXPLETIVE DELETED) head.
MANSFIELD: But now comes a second video.
HARLESS: I'll kill every one of you (EXPLETIVE DELETED).
MANSFIELD: This one from a year ago.
HARLESS: I'm telling you what, (EXPLETIVE DELETED) -- (EXPLETIVE DELETED) I will shoot you in the face and I'll go to sleep tonight.
MANSFIELD: As Harless' temper again flares while instructing two people in the backseat of a car during a traffic stop for suspected drunk driving.
PHILIP MULIVOR, OHIOANS FOR CONCEALED CARRY: Well, it looks like we're seeing repeat behavior. It's a disturbing pattern.
MANSFIELD: Philip Mulivor is with Ohioans for Concealed Carry, a group that is calling for Harless' job.
MULIVOR: In both cases this officer's behavior is entirely egregious; he needs to be removed at once.
MANSFIELD: In both cases, Officer Harless is encountering a gun during a traffic stop which is always a perceived threat for police. Now it's up to police brass to determine what's acceptable.
HARLESS: Mother (EXPLETIVE DELETED) -- get the (EXPLETIVE DELETED) before I shoot you.
(END VIDEOTAPE)
LEMON: Ok. So I should tell you that Officer Daniel Harless has not been charged with a crime. He is on paid administrative leave from his job while these incidents are investigated. The group pushing for his dismissal is Ohioans for Concealed Carry -- Ohioans for Concealed Carry.
Philip is a leader of the group, you saw him in that report. He joins us now from Cleveland. Philip, Canton police say they are investigating. So what's the process and how long will it take?
MULIVOR (via telephone): Well, no one knows the answer to that question. We're waiting and we're trying to be very patient, but in the meantime, the citizens of Canton and the area are very nervous. There's been a loss of confidence in the local police force, and this creates some serious public safety issues. People have to have confidence and safe in their local police, and until this issue is resolved with Officer Harless, we have a very bad situation on our hands here.
LEMON: Yes. You released this videotape. Correct?
MULIVOR: That's correct.
LEMON: You did. And because you feel, I would imagine that this officer is a menace or a danger to society?
MULIVOR: Yes. This is a police officer that threatened an unarmed, handcuffed citizen with execution. The video, I think you just played it, is extraordinary. His behavior amounts to one of the worst instances of police abuse in modern U.S. history. It's a very, very serious situation.
My group became interested in this whole unfortunate event, because it -- it brings to light a problem with the Ohio concealed carry notification block. That was the way we entered this whole -- this whole issue.
LEMON: Uh-huh.
MULIVOR: But our concern now is also to make sure that people are safe and they have this person removed at once.
LEMON: What's interesting is that, for people, especially carrying, a consent to conceal -- consent to carry, excuse me, when usually people who are in those groups are very pro-police officers. And I would imagine that you think -- because the videotape is so damning when you see it, that you're just not having it. And you understand the pressures of the police?
MULIVOR: Of course. And we have many police officers and law enforcement administrators that are not only founders of our organization, but are active members, and have been so throughout our 12-year history. We're a very pro-police observation.
We work very closely with police organizations in the state of Ohio, and we want everybody to be safe. We want people who choose to obtain a concealed carry license and carry a handgun to be safe. We want police officers to be safe. That's one of the reasons that this is such an incredibly disconcerting circumstance.
LEMON: All right. Philip Mulivor, thank you. Come back and let us know what happens if you indeed get what you wanted to get this officer fired. We appreciate you coming on.
I want to tell you what the Canton Police Department said. They released this statement. It says, quote, "The officer was relieved of duty and has not worked since the incident. It is being fully investigated." You know many critics say the extremes are dominating the debt ceiling negotiations but do the independent voters in the middle have a voice in any of this? We'll ask a group of them, next.
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(BEGIN VIDEO CLIP)
JOE GANDELMAN, EDITOR IN CHIEF, "THE MODERATE VOICE": The way the system is set up for years, consensus was a virtue in American politics and is no longer the idea of compromise that's considered as something of weakness. And so independents have to keep pushing for people to try to come together and work on common ground.
(END VIDEO CLIP)
LEMON: You hear that. That was February of 2010; over a year ago. That was one of the members of our regular panel of independent experts from the last time we had them on back in February of 2010.
You know, he was talking about the battle over President Obama's health care bill back then, but he could have been describing the current frustration over the debt ceiling debate. Sounds liked same thing over and over again, right?
We've decided it is time to bring back that panel of independents. Hey guys, long time no see. Joe Gandelman is the editor in chief of "The Moderate Voice" blog; Omar Ali is an historian and independent political analyst; and Nicole Neily is an executive director of Independent Women's Forum.
So, there's lots of talk about the extremes dominating the debt limit debate. So where's the independent voice in all of this? Joe, where is it?
GANDELMAN: Well, independent voices, getting sort of edged out as the center is clearly under attack. Right before I came down here tonight I read something from a Tea Party leader who said that didn't want his party to go moderate on them. And so the independents are sort of being edged out because essentially what you have is -- I mean, I just want to say, watching what's going on right now I keep thinking, 235 years of American history had produced leaders in a situation like this? It's just astounding.
That's my reaction as I read it.
LEMON: Nicole, had you heard anything from either side in this debate that resonates with you as an independent?
NICOLE NEILY, EXEC. DIR., INDEPENDENT WOMEN'S FORUM: I think it's been great actually that they haven't had earmarks to try and twist people's arms with. We've been left out of the process for so long because both sides have been able to buy votes. So that has been encouraging.
But at the same time, I think future generations are also being left out of this debate. We're borrowing 40 cents for every dollar we spend. So I mean it's not getting any better.
LEMON: Yes. Ok. So listen, we know there are a host of potential presidential candidates for 2012 on the right, and of course, the President. Is there anyone in this group that's still appealing to you, Omar, as an independent?
OMAR ALI, ASSOCIATE PROFESSOR, UNC-GREENSBORO: Well, I mean, I think President Obama's trying to make a case for himself. I happen to have supported President Obama the last time around as did millions of independents around the country because he was reaching out beyond sort of this strict partisanship kind of way that politicians do politics in America.
Now, one of the things is that President Obama wants to attract independents. And you kind of try to see -- you see him trying to do that in the midst of this crisis in Congress. He's got to take a firm stance around issues that will open up the process because we have 80 percent of Americans who are unhappy and don't trust the American government. We have 9.8 percent unemployment rate. And that's a crisis that's going on right now.
There is a connection between the political process and the economy, and if President Obama wants to gain the support of independents, he needs to come out very strongly in support of things that can open things up.
(CROSSTALK)
LEMON: Guys can we get shorter answers? I want to make sure I get everyone in -- everyone in here. So I'm going to ask you this, Omar, how do you feel that President Obama's performed as leader in this debt ceiling debate?
ALI: I think he's been challenged, because he's in a system that's completely bipartisan. And in that kind of a system, it's very hard to actually have compromise, because the politicians are looking out for their interests over the country's interests.
LEMON: Ok. Joe?
ALI: And so that's a very difficult position.
LEMON: Joe?
GANDELMAN: Well, I think he's been doing everything he can try to do, but this idea of leading from behind has not been -- that kind of strategy of leading behind doesn't work, because he's also working in a new -- what I call the talk radio political culture which is really set up towards sound bites and confrontation and no compromise.
The idea of aggregating interests and, you know, a compromise and finding common ground. Those are dirty concepts to some people right now.
LEMON: Yes. Go ahead Nicole.
(CROSSTALK)
GANDELMAN: It's very difficult to do that when you have a policy -- yes.
NEILY: I don't think he's been leading at all. His whole Twitter campaign the other day trying to intimidate members of Congress into seeking compromise; it was his compromise. It was his answer that they were seeking. I found that really threatening and menacing.
I'm really worried about inflation. I think that it's pretty sure that our bond ratings are going to drop regardless of either plan that gets passed. And that's going to drive interest rates and that's going to hurt everyday Americans.
LEMON: Well, and that's a whole another topic, that we're not going to get into here now.
So let's just really quickly; if you had to cast your ballot today, Nicole, would it be President Obama? Would it be someone on the right or none of the above?
NEILY: Right now I'm for none of the above. There aren't a lot on the right that I'm crazy about.
LEMON: Omar?
ALI: I would support President Obama, if he came out strongly for structural reforms to open up the process.
LEMON: Joe?
GANDELMAN: Right now I would support President Obama, because I'm being turned off by some of the things that I see on -- on the right with the inability to compromise and just -- basically governing by political hostage-taking. I'm very turned off by that.
LEMON: And just as quick, an answer for this. How do you feel about the Tea Party influence in these debt ceiling negotiations? Joe?
GANDELMAN: I think it's been -- it's too excessive. The Tea Party did win a significant amount of power but they didn't win control of all three branches of government, and have a veto power over the American economy. I've been thoroughly shocked at this situation we're in right now.
LEMON: Omar?
ALI: I think that the Tea Party, it's a marginal force of Americans to tell you the truth in the sense that 40 percent of Americans are independents. Tea Party folks are mostly part of the Republican Party. So where I see it is in support of the 40 percent of Americans who don't like any party whatsoever.
LEMON: And Nicole.
NEILY: I think the Republicans sold off their principles for too long. I think the Tea Party has been a good thing and encouraging them to return to a constitutional government, limit a government and actually questioning the size and the scope of what the federal government does, because they can't do everything and we don't have the money to do everything.
LEMON: All right. I'm so glad to have you guys back. You're going to be on much more as we get closer to this election. Nicole Neily, Omar Ali and Joe Gandelman. Thank you so much. We appreciate it. We like hearing independent voices. Thanks again.
ALI: Thanks so much, Don.
LEMON: Tonight at 9:00 p.m. Eastern, a CNN special report on what it will take to find a solution to the debt crisis. Wolf Blitzer and I break down the obstacles and the options. Don't miss "Get It Done: Countdown to Debt Crisis" tonight at 9:00 Eastern right here on CNN.
And when we come right back a recap of where we stand on the debt crisis talk. We leave you with a live picture from the Capitol.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Why are they so stupid and (INAUDIBLE) they cannot keep spending money when the bank is broke and they have no more money in the bank. Who are they fooling?
(END VIDEO CLIP)
LEMON: All right. We're listening to you. The American people, on how you feel about the negotiations in Washington. Those are our I- reporters. You can send to iReport, cnn.com/cnnireport.
We have some new information in here. In just about an hour from now we're being told that House Speaker John Boehner is expected to hold a news conference. A conference call. Excuse me. A conference call, with fellow Republicans to discuss the status of talks to raise the nation's debt ceiling. Here's what sources are telling CNN. They say that Boehner will tell members that there is no deal yet. That there is no deal yet. They're still working on it, and the sticking points, defense cuts, and this in the first round of cuts.
OK. So again, he will hold a conference call, at 8:30 tonight. House Republican leader John Boehner. So we will let you know what happens as soon as we find out about that. Let's tell you now about the Democratic side. Harry Reid, leader in the Senate, has already signed off on the deal, but his support is pending the approval of his fellow Senate Democrat. House democratic leader Nancy Pelosi spoke with reporters just a short time ago and she says she wants to see the final product before she can support it. She also said she would meet with House Democrats starting tomorrow.
In others, the State Department is urging Iran to release two detained American hikers saying they've been imprisoned far too long. An Iranian court is expected to issue a verdict this week in the espionage issue of Josh Fattal and Shane Bauer. A court hearing took place today, two years to the day since they were detained near Iran's border with Iraq. A third hiker, Sarah Shourd was released last year for medical reasons.
All right. That's Cairo, Egypt. And a fire in the cockpit that sent nearly 300 passengers racing for exits just before takeoff. Imagine that video. That's your flight. Look at it. Unbelievable. The Boeing 777 was still at the gate when the co-pilot saw smoke coming out of the instrument panel. Several minor injuries were reported among the passengers as they evacuated quite quickly, of course. The fire put out and another flight took the passengers to Saudi Arabia.
Syrian tanks stormed residential neighborhoods killing dozens. That report is next.
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LEMON: We want to turn now to the Middle East. A bloody day in Syria as military tanks assaulted the city of Hama. Now according to the official Syrian news agency, Syrian forces were battling armed gangs that had taken over parts of the city. But human rights groups say it was an unprovoked raid on civilians. CNN's Arwa Damon is in Beirut with the very latest for us.
(BEGIN VIDEOTAPE)
ARWA DAMON, CNN CORRESPONDENT (on camera): Eyewitnesses described they woke up at around 4:00 in the morning on Sunday to the sound of tanks firing indiscriminately into residential areas, they say. At which point hundreds of people were said to have taken to the streets. Some of them seeking safety. Others trying to set up makeshift barricades or use whatever means they had available to try fight back against the Syrian military.
According to one eyewitness, the Syrian security forces have now taken control over some parts of the city and are preventing people from being able to freely move around, just causing great problems for those wounded and in hospitals.
UNIDENTIFIED MALE: Hospital like, you know, they started (INAUDIBLE) but the thing is, the security forces blocked all the roads. So it was really difficult for the people to reach the hospital, and security forces and army tanks, whenever they see a car moving they start shooting at the car. Also there's another hospital called (INAUDIBLE) hospital here during the revolution here in Syria, especially in Hama. It was surrounded by a lot of, like an army of soldiers, a lot of intelligence people, a lot of security forces, and it's really awful. People here now on the streets, I'm here right now talking to you from the streets. I have nigh my knife. I have like my neighbors are trying to protect the neighborhood using sticks, swords, knives and that's all.
DAMON: The crackdown in Hama appearing to happen in conjunction with similar crackdowns in other parts of the country (INAUDIBLE) outskirts in Damascus and in the southern province of (INAUDIBLE) to name a view. Activists say that they believe that this crackdown coming just before the holy month of Ramadan is set to start is to send a message to the demonstrators, to stay off the streets. After this had been planning daily massive demonstrations after they break their fast and go to prayers trying to put even more pressure on the Syrian government.
The message - most certainly heard, the casualties incredibly high, yet the demonstrators, the activists continue to say that they will take to the streets and risk their lives because they firmly believe that at this point they cannot go back and they cannot allow this regime to stay in control.
Arwa Damon, CNN, Beirut.
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LEMON: All right. Arwa, thank you very much.
President Obama said today he was appalled by the carnage and vowed to put more pressure on Syria's leadership. In a statement, the president said "the reports out of Hama are horrifying and demonstrate the true character of the Syrian regime.
In the midst of the country's debt crisis, millions of Americans are also facing poverty. How does that look through eye of our children? Students. You'll meet two young people who made it their personal mission to find out.
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ZET HARRIS, I-REPORTER: 98 percent of the American people out there tonight, do not hold this (INAUDIBLE) financial as the top two percent. They pay for these people's campaigns. They pay for lobbyist who pushed the agenda. And because of that, our voices aren't heard.
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LEMON: Thank you, I-reporter Zet Harris. Young person speaking out about what's happening in Washington right now. More of your comments from I-report, CNN.com/ ireport. We'll get them on television. That's where you can go.
You know and what matters tonight is our partnership with "Essence" magazine. We want to talk to two more young people and see how they feel. Because more than 43 million Americans live in poverty. That is according to the latest figures in the census bureau and as of June more than 14 million Americans were unemployed. College students Amanda James and Shelby Bryant armed themselves with video cameras and are traveling across America to document the faces of poverty.
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LEMON: What have you learned? Shelby?
SHELBY BRYANT, STUDENT: Honestly, the thing that I learned, the thing I'm taking away from this most is that this stories that, of struggle actually have a light lining around them. Everything has a - everything has a fire basically. Everyone that we're meeting has a positive outlook.
AMANDA JONES, STUDENT: The stories that we found of struggle have so much strength. That's been one of the things that's been eye opening for both of us.
Absolutely.
You know, when we were in Baltimore, it was the first day of our trip and we met women who were single moms living one of the rough areas of Baltimore. In a neighborhood of (INAUDIBLE) Heights, and one of the women who we we're interviewing invited us back to her neighborhood.
UNIDENTIFIED FEMALE: When's the last time you heard about, like, someone you know getting shot or robbed or -
UNIDENTIFIED FEMALE: Murdered?
UNIDENTIFIED FEMALE: We got to see what it's like for her living a daily life in an area she doesn't feel safe to walk with her children. Yet she has decided to overcome. It's her internal environment and believe that it's her internal environment. It's not where you live or what you look like on the outside that matters, it's what you have on the inside.
LEMON: It's overcoming the obstacles. And it's interesting because people your age, you would think if you watch the reality shows that are on now especially, you would think most people your age are wealthy and driving around in these fancy cars. And their parents have a lot of money. Do you know what I'm talking about. But that's not the reality of it. That's not the reality of what's happening in America, all across America, at least, right?
JONES: This was definitely a step away from the private universities we both went to
BRYANT: And that, also, has been another surprising part. We come from very different backgrounds than everyone that we've been spending all of our time with but we have been welcomed with open arms. That has been really inspiring to see this sort of strength in humanity and this openness and acceptance of people who are just - wanting to share their stories with us.
LEMON: What do you have advice for people who are watching? Especially your age.
JONES: I would say from a personal perspective, living that sort of comfortable life is much more predictable than a life living on the road for the past three weeks and this has been the best three weeks of my life. And still going to neighborhoods that I typically wouldn't drive through or spending time with people who I don't typically interact with for three weeks at a time has been more of a learning experience than being around people who are in college. So I couldn't recommend it more.
LEMON: Yes. Thank you, Amanda and thank you Shelby. Appreciate it.
JONES: Thank you so much.
(END VIDEOTAPE)
LEMON: Great young ladies there. The student's poverty tour is a part of a program called No Nonsense socks for America which donates socks to kids in need. If you want to follow Shelby and Amanda's tour or help out, you can visit their web site at socksforamerican.com. or go to Facebook and search for no nonsense socks for America.
The debt crisis didn't begin a year ago or a decade ago. It's been growing for even longer than that. We're going to look back at a quarter century of failure coming up.
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LEMON: Live pictures now of Washington and the clock right in the middle. That's ominous. One day, four hours and seven minutes. Just about seven minutes until default. That's the deadline. That is the official deadline.
But really, it is now because the markets in Asia and Europe open very soon. We are showing you the White House and the Capitol because they're working on these negotiations right now. We're going to continue to follow it right here on CNN. Make sure that you watch Wolf Blitzer and I tonight, 9:00. "Get It Done" is going to air tonight. So make sure you watch us.
And you know, we keep hearing the same question over and over during the debt debate - how did we get here? Well, the answer is very simple. A billion here, a billion there, pretty soon you're talking real money. Trillions, right? We look back at a quarter century of cheap talk and avoiding the hard choices.
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REP. WILLIAM GRAY (D), MAJORITY WHIP: Will there be some compromising? Absolutely. I think that there will be. There has to be. Because I think it's absolutely important that we get a conference report so that we can continue the momentum and send the signal to the financial markets and to the world and to the American people that we are serious about dealing with deficits and debt reduction.
SEN. WARREN RUDMAN (R), NEW HAMPSHIRE: This congress has lacked the guts, I think the administration on some occasion has lacked the guts to face up to trying to do something real about this budget. And I must say that this will compel the Congress and future administrations than this one to do something real. What it really is, is it is an infusion of backbone.
RONALD REAGAN, FMR. U.S. PRESIDENT: It's funny how some of those who have been screaming the loudest about deficits are now obstructing and delaying, doing everything they can to try and sink this bill which will be coming to a vote, as I understand, in the Senate this afternoon. Now I'm not accusing anybody of insincerity, but the next time one of those folks gets up and complains about the deficit, they'd better have a smile on their face.
GEORGE BUSH, FMR. U.S. PRESIDENT: The American people know budget deficits threaten the long-term economic health of our country, and over the years we've accumulated federal debt totaling $65,000 for every family of four in America. This debt does not create more wealth, it merely helps pay for our current consumption. It reminds me of the old fellow who bragged to his family that he finally borrowed enough money to pay off his debts.
The deficit. The big spending deficit is a dark cloud hovering over the future of these kids and the federal government spends too much of your hard-earned money. Help me put an end to that.
I have asked Congress to take over 4,000 specific projects, 250 federal programs and send them the way of the pet rocks and the mood rings and they refused to act.
BILL CLINTON, FMR. U.S. PRESIDENT: You got to get the debt down because otherwise the interest payments eat you alive, just like your home mortgage payments or anything else.
REP. NEWT GINGRICH (R), HOUSE SPEAKER: Interest now costs more than the Defense Department. So literally, you will pay more taxes if you go out and get a job just to pay interest on the debt than you'll pay to defend the country.
HILLARY CLINTON, U.S. SECRETARY OF STATE: The president has asked Congress to raise our nation's debt limit by nearly $1 trillion. They don't want a debt limit. They want unlimited debt so that they can continue to press misguided economic policies that have done nothing to stop the loss of 2.2 million jobs. Raising debt limits is not the way to manage a sinking economy.
GEORGE H.W. BUSH, FMR. U.S. PRESIDENT: My budget will maintain strict discipline in the spending of tax dollars and keep our commitment to cutting the deficit in half over five years.
SEN. HARRY REID (D), MINORITY LEADER: The Bush plan would take our already-record high $4.3 trillion debt and put us another $2 trillion in the red. That's an immoral burden to place on the backs of the next generation.
(END VIDEO CLIP)
LEMON: We've been here before, haven't we? Listen, the House Speaker is saying he is going to have a conference call with his members to talk about a deal, saying there's not one yet and there are some sticking points. We'll tell what you they are after the break.
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LEMON: All right. In about 30 minutes, House Speaker John Boehner is expected to hold a press conference, excuse me, a conference call - sorry about that - to tell his members that there is no deal yet and that the sticking point is potential cuts to defense spending. A conference call at 8:30 with House Speaker John Boehner.
Senate democratic leader Harry Reid has already signed off on the deal but his support is pending the approval of his fellow Senate democrats.
And House speaker Nancy Pelosi, the former House Speaker, I should say, Nancy Pelosi said recently she wants to see the final product before she can support it. She meets with House Democrats tomorrow.
Make sure you join Wolf Blitzer and I at 9:00 p.m. Eastern time, one hour where we're going to have this special report on the debt crisis. We will see you then.
