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Congress to Vote on Debt Deal; Markets React to Debt Deal; Public Anger over Debt Stalemate; Reward for Stolen Assault Rifles; Lead to Identity of "D.B. Cooper"; Police: He Ordered 1,500 Killed; $180 M in Coke Found on Sunken Sub; Amy Winehouse "Adoption"; MTV Marks 30th Birthday
Aired August 01, 2011 - 09:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: It's almost 10:00 a.m. on the East Coast, 7:00 a.m. out West. I'm Kyra Phillips, thanks for joining us.
Here are some of the stories that have us talking this morning. In Washington marathon talks lead to a new debt deal, at least in theory. The President backs it along with leaders of both parties, but there is still not a reason to celebrate just yet.
In Syria, a violent crackdown on anti-government protest; more than 70 people killed and counting.
And new this morning: a big change to health coverage. Federal government will require insurers to provide birth control without co- payments.
In just a few hours, we could see the beginning of the end of the debt crisis. It's been the issue in Washington for weeks. And you are probably tired of the finger-pointing and doomsday predictions.
But today, that could all come to an end in the House and Senate if a compromise plan is approved. The deal identifies about $1 trillion in spending cuts over 10 years and raises the debt ceiling by about the same amount. Then a bipartisan committee must find ways to trim another trillion and change from the deficit later this year, a so-called deficit posse. And both chambers of Congress must vote on adding a balanced budget amendment to the constitution.
The President and House Speaker admit the plan isn't perfect, but it may just be good enough to avoid a disastrous default.
We are covering all the angles. Alison Kosik is at the New York Stock Exchange, Kate Bolduan is on the Hill, in our Washington Bureau, we have Wolf Blitzer and Zain Verjee is watching the international reaction from London and of course, Richard Quest sampling public opinion there on the Washington Mall.
Wolf, let's go ahead and start with you. How big of a test is this for President Obama and the congressional leaders who backed the deal?
WOLF BLITZER, ANCHOR, THE SITUATION ROOM: It's a huge test and it looks like they're going to have enough votes in the Senate to pass it probably overwhelmingly. A lot more than the 60 that will be needed. That would be the threshold.
It won't simply be a majority 51 and lead more than 60. I suspect they will get somewhere between 70 and 75 votes in the United States Senate. The real test, Kyra, is going to be in the House of Representative.
They need 216 votes and there few vacancies in the House. They need 216 votes in the House to pass it. It's going to be a much closer vote in the House because you have on the conservative side, Tea Party backers who don't like it.
On the liberal side, you have members of what's called the progressive caucus, the congressional black caucus. They don't like it. So you're going to have to find the centrist, those in the middle, Republicans and Democrats working together.
In the end, I suspect they will get enough more than 216 votes in the House, but there is going to be drama in the House of Representatives.
PHILLIPS: Let's lay out who stands to gain the most and the least, Wolf.
BLITZER: Well, the country stands to gain a huge amount right now because the United States for the first time in history is not going go into default at least not now. This is going to be a deal that will stay in effect throughout all of next year into 2013.
If this special committee that formed, 12 members, six Democrats and six Republicans, if they can't reach an agreement, there are automatic triggers across the board cuts, spending cuts, which will be very painful, painful for liberal Democrats, painful for conservative Republicans. So the pressure will be on to accept the recommendations of the super committee.
But in the end, at least, in the short-term, the U.S. can continue. You see the markets worldwide reacting favorably to this. It's by no means a done deal. It's by no means kind of see as all of America's economic problems - excuse me?
PHILLIPS: Could it fall apart, Wolf?
BLITZER: It can only fall apart if the House of Representatives reject it. If the House accepts it, the Senate will accept it and the president signs it into law whether tonight or tomorrow or whatever. It's going to go forward.
There will be a respite of sorts at least until Thanksgiving when the super committee is supposed to come up with its recommendation sometime in November. So we will have a few months to see what they can do.
At least in the short term, we're going to get over this hump. Now this doesn't necessarily guarantee that the credit rating agencies, Moody's and Standard & Poor's are going to not downgrade America's AAA rating. We'll see what happens over the next few weeks.
I suspect they won't do anything in the next few days, but this doesn't guarantee that America's AA credit rating is going to stay put because they had suggested they would like to see $4 trillion in cuts over the next 10 years.
This deal that they have right now is about $2.5 trillion. So it does still potentially set the stage for a reduction in America's AAA credit rating.
PHILLIPS: All right, Wolf, I know you are staying with us. We're going to talk some more in just a few minutes. Wolf, thanks so much.
So Kate, the agreement then between the president and congressional leaders mean nothing, obviously, if the rank and file members of Congress don't approve it. We were just talking about that so what are you hearing right now?
KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: I'm hearing that, you know, I think it's to say that no vote this controversial is ever easy or ever guaranteed to be quite honest. We should be learning more where rank and file members stand after they come out of their party meetings.
They are separately meetings going on in both the House and the Senate for each party. Those will be happening in next few hours. You should be able to get a little bit more of a temperature of where people stand following those meetings. Democrats in the both the House and the Senate, they're going to get a visitor. We just found out from the White House today.
They just released new guidance saying that Vice President Joe Biden will be coming over to join those party meetings for Democrats in the House and the Senate this morning. So you can be sure he's going to be talking about the merits of why we need to push this through and get it passed before August 2nd.
It's not clear at this moment. I'll tell you, Kyra, whether the House or the Senate will be voting on this compromise deal first. That seems to be still being worked out and we'll obviously get guidance on that shortly.
But I am told that if everyone cooperates, which is kind of a tall order often around here, they could have this passed through both the House and the Senate by the end of the day.
But as we know and as we have been talking about, there seems to be something for everyone to dislike in this compromise. I guess, that is the art of compromise and leaders are hoping that that means there is just enough for them to get that through.
That, of course, is threading that needle that's what we're going to have to be looking if they can pull that off today. PHILLIPS: OK, we'll keep our fingers crossed here. Alison Kosik is in the New York Stock Exchange. The uncertainty helped the U.S. markets lose about 4 percent of value last week. We saw the numbers pick up as soon as the opening bell rang, but now we are in negative numbers.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: We are. We are now down 100 points in a matter of minutes. You know what did it? So much for that debt relief rally, right, the manufacturing report that just came out about five minutes ago, Kyra.
That's what put us back into the red. It seems that this manufacturing report came out much worse than expected. It is actually getting close to a level that shows no growth in manufacturing.
So that's what's got investors running for the exits at this point. Also you talk about the debt deal. You know what, many traders and analysts still think the U.S. is headed for a downgrade of its pristine AAA credit rating and the deal on the table doesn't make a dent in the debt issue they say.
So you are seeing more caution in the air. So that bump that we got in the open was obviously very short-term and now, of course, the focus is shifting to the harsh realities of the economy. You know, the economy we are in the middle of is very, very slow growth.
You look at last Friday's GDP reading, it showed that economic growth is anemic. There is not enough growth happening in the economy to create jobs.
So that has everybody bracing for the jobs report this Friday and this manufacturing report that came out much worse than expected definitely not helping things here on Wall Street. Kyra --
PHILLIPS: OK, Alison, Thanks. International reaction to the debt deal now. Zain Verjee, you have been tracking that for us.
ZAIN VERJEE, CNN INTERNATIONAL CORRESPONDENT: Yes, I have, Kyra. The U.S. really took a big hit in its reputation around the world over all this wrangling and all these major question marks.
Let's take a look at the newspapers and see what "The Guardian" is saying. Its headline says "U.S. Debt Crisis: Obama's Sharp Right Turn." It says, the outlined deal on raising the debt ceiling, which emerged yesterday is not a triumph of compromise and reason.
True, it will avert a disaster, but one that had been fabricated by the Tea Party themselves, raising the U.S. debt ceiling is any other time a matter of interest and not through Congress without anyone much noticing.
Take a look at the "International Herald Tribune," Kyra, "A Tilt to the Right Leaves Obama with a Party Rift." It goes on to say, however, the debt limit showdown ends, one thing is clear under pressure from congressional Republicans, President Barack Obama has moved right ward on budget policy, deepening a rift within his party heading into the next election.
Many around the world, Kyra, saying, yes, OK, the U.S. avoided a market meltdown, but none of this that's on the table really addresses some of the long-term debt issues that need to be addressed.
PHILLIPS: Zain, thanks. Admit it, you are tired of the talk and you want Congress to take action. Well, guess what, you are not alone.
Richard Quest has been talking to a lot of fed up fellow citizens. He joins us now from the Washington Mall. So Richard, what kind of flack are you getting?
RICHARD QUEST, CNN INTERNATIONAL BUSINESS CORRESPONDENT: Well, the first thing you learn when you're a tourist in Washington is in the middle of the summer don't start early. Because if you look this way, you can see pretty much no tourists anywhere as far as the eye can see. However, we did manage to find one person here who will happily talk to me. Hello, sir. How are you?
UNIDENTIFIED MALE: I'm fine, how are you?
QUEST: Where are you from?
UNIDENTIFIED MALE: I'm from New York City.
QUEST: What do you make of the deal that was done yesterday?
UNIDENTIFIED MALE: It doesn't matter what the deal is. They have to just it get it done. Just like the NFL. It doesn't matter if the owners get more money or the players get more money, got to get it done.
QUEST: Well, why though? I mean, to the extent that it's a complicated deal. Yes, you raised the debt ceiling and yes, there will be some spending cuts, but is it a good deal do you think?
UNIDENTIFIED MALE: It doesn't matter what the deal is. My opinion is it doesn't matter. We had voted for these people to do their jobs and come up with some kind settlement and get something done.
QUEST: How annoyed were you as an ordinary American the way in which they took so long, went to the edge and nearly drove the bus over the cliff?
UNIDENTIFIED MALE: It's horrible. You know, these guys are just pointing guns at each other and it's the American people who are affected. It's awful.
QUEST: Long-term, even to ask the question the third time, long- term, how much do you think the deal long-term puts in place the U.S. economy so you are more comfortable? UNIDENTIFIED MALE: I don't think they can really get something done long-term right now. That's why it's just -- what is it? 2012 and they have to look at it again? Just get something done temporarily and we will have a whole new team in place and we can try again.
QUEST: Many thanks indeed. The message is clear and to the point. Get a deal done. They got a deal done. The only question is whether the deal done becomes undone by what is done later today in the House.
PHILLIPS: Say that six times really fast, Richard Quest. Live from the mall in Washington there. Thank you. Coming up, when big money is involved, drug smugglers go to great heights to get moved and sometimes great depths.
I will talk to the Coast Guard commander whose cutter found a sunken cocaine submarine. Also ahead has given the "Real World," "Teen Mom," "Jersey Shore," yes and a little music too. It's happy 30th birthday to MTV.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories cross country now. Federal agents fear some of the 26 assault rifles stolen from a California Army post may be in Fresno now. A $10,000 reward is being offered for information about the theft from Fort Irwin Army post. Check this out.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There is a huge water - a huge water --
(END VIDEO CLIP)
PHILLIPS: Well, the snake apparently was making its home on the car's engine when the family in Memphis went for a ride and it just slithered onto the hood. Luckily it eventually fell off.
He hijacked a Boeing 727, 40 years ago parachuting to an uncertain fate leaving us with the only unsolved airline hijacking in American history. Now the FBI says it may know D.B. Cooper's real name. Fed's are testing fingerprints. Right now, the new suspect can claim this is the most promising lead since 1971.
It's almost incomprehensible, but federal police in Mexico City say that a suspected leader of Horez drug cartel admits to ordering the deaths of about 1,500 people. Jose Antonio Acosta Hernandez known as El Diego was arrested over the weekend.
Mexican authorities say he targeted police, officials and drug rivals. He is also suspected of being behind the killing of three people connected with the U.S. consulate there in Horez.
Well, drug smugglers use all kind of routes and means to move their drugs. Listen to this, a homemade submarine was stopped in the Caribbean Sea earlier last month, but it sank before all the cocaine could be removed.
That is until last week when the Coast Guard Cutter Oak located the sunken ship. Commander Peter Niles is the Cutter's Commander. He joins me on the phone from Miami.
So, Commander, let's talk about why this is so significant and such a coup for the Coast Guard.
LT. COMMANDER PETER NILES, U.S. COAST GUARD (via telephone): Well, yes, ma'am. It is a coup for the Coast Guard as this stopping a semi submersible in the Caribbean for the first and represents a new tactic for smuggler who is try to get into drug contraband.
And we used the crew of the Cutter Oak and a team of highly trained FBI divers to locate the semi submersible once it sunk at approximately 75 feet of water.
We searched about a five-square mile area at about 100 feet apart and located the submersible and ultimately got 232 bales and weighing at about 15,380 pounds.
PHILLIPS: How did you get the tip, Commander?
NILES: Well, Ma'am that was used with - it wouldn't have been possible without the long range possibility of a flight deck equipped Coast Guard Cutter and a customs aircraft. It was a joint effort by multiple agencies probably involving about 1,000 people.
PHILLIPS: Wow. This area where you found this sub, it's unique, right? This is not a common area where you located drugs in the past.
NILES: Well, Ma'am, this is the area -- first of its kind with a semi submersible on this coast that we've located. So this is an area that obviously with our strong partnerships with Honduras officials that helped locate it, but it is a semi submersible, it is the first time on this coast with that.
PHILLIPS: Got it. Well, again, what you said it is quite a cope for the Coast Guard and we're actually -- we appreciate. We don't always get a bird's eye view of how this goes down.
We actually get to see it there through your video surveillance and the divers, right there actually bringing the coke out of the water. Commander Peter Niles, appreciate your time.
Coming up, an Amy Winehouse bombshell. It's pretty to believe. There are reports out there that she was actually in the process of adopting a 10-year-old girl. We're digging into that one next.
Don't forget, if you are walking away from the TV, doesn't mean you have to stop watching. You can keep streaming right here along with us. Of course, it looks like the iPad has gone down. So you know what, we will just show the iPad where normally you would see CNN happening live right here.
You know what I'll do? I will try to reboot it. How does that sound. There you go. There we go. You bring up the app there on cnn.com. It's free, by the way. You go up to live TV, click that and there comes your options. CNN NEWSROOM and let's hope it starts streaming for you live. There you go. You can take us with you wherever you go.
(COMMERCIAL BREAK)
PHILLIPS: There are reports that are floating around now that Amy Winehouse was in the process of adopting a child when she died, pretty unbelievable and maybe for good reason.
Zain is covering that story for us out of London. We will move on to other showbiz news. Remember video killed the radio star? Take a listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Ladies and gentlemen, rock and roll.
(END VIDEO CLIP)
PHILLIPS: Can you believe it's been 30 years since MTV kicked off? A.J., where were you 30 years ago?
A.J. HAMMER, HOST, "SHOWBIZ TONIGHT": I was 2 years old, Kyra. What are you talking about?
PHILLIPS: Come on, we were all talking about how we're all spinning by at that time trying to make it in the business.
HAMMER: Right. Well, I wasn't quite there yet, but the truth is I didn't see the launch of MTV itself. I didn't have cable in my house. I remember going to my friend Steve's house in high school and being so fascinated with not only MTV, but the fact that if you can figure it out, you can actually listen to the TV in stereo.
It was fascinating. But, you know, this is a pretty big anniversary here with MTV just turning 30. Just after midnight on this date in 1981, a whole new kind of TV channel aimed at teens, 20 something, launched with the words you just heard, "Ladies and gentlemen, rock 'n' roll."
And then, yes, came the clip of the video we saw a little bit, a video killed the radio star by the British new wave group, "The Bugles." And really, a cultural shift began.
Image suddenly became as important as the music for artists. Kyra, I'm going to go a little deeper right now with another trivia question for you on this MTV anniversary. Can you name the second video ever to be shown?
PHILLIPS: My gosh, no. I won't even try.
HAMMER: It's almost impossible, but Pat Benetar, one of the huge artists of the time played her video for you better run. Believe it or not, when you look at MTV today, the channel was originally set up with the idea of playing music videos 24 hours a day, seven days a week, which it did for a very long time.
MTV really catapulted videos in the mainstream. They became more or less a marketing tool for record companies and musicians either had to embrace the medium or quite frankly, they risked retirement. Think back to a giant moment for both the network and Michael Jackson himself. Jackson's "Billy Gene" and his 14-minute Thriller video/short film back in 1983. That's really what turned him into a mega star.
But also made MTV a household name at the time. Let's not forget MTV's other important contributions. They have been an actual player in politics. They have a very young audience. The network hosted a town hall back in 1994. You might remember this.
Presidential candidate Bill Clinton was there and Clinton, of course, courting the youth vote. He answered question from a 17-year- old, boxers or briefs. We can thank, Kyra, and something we will never forget or live down is MTV brought us what we now call the reality TV.
Because if you remember the real world that was really one of the originators in the medium. In 1992, it made its debut with a concept that really is common place. Now you have a bunch of strangers and keep the cameras rolling.
They one up it launching the Osbournes, putting celebrities into that kind of fly on the wall TV show and that really broke the mold on how celebrities approach selling themselves to their audience.
And then, of course, brought us to "Jersey Shore." You may remember a week before it debuted, none of us knew what a snookie was, Kyra.
PHILLIPS: Now everybody knows. You pointed out, she is a bestselling author.
HAMMER: Yes. Good for all of us, really. But MTV really got back at us in finding new ways to keep the relevance. We love them for it. MTV, I need to point out as a move, remember Beefis and Butt Head? Well, they are coming back.
PHILLIPS: Boy, really? You're serious?
HAMMER: Yes.
PHILLIPS: I'm hearing in my ear, yes, they are. That will be part two to the discussion. On that note that we were talking about the kickoff of MTV and we remember and we were so young. Talking about video killed the radio star.
Apparently, our Zain Verjee, she's going to talk us about Amy Winehouse in just a second. But, Zain, I want to bring you into this discussion while I've got A.J. too. You say that's actually the first song you played as a radio D.J.?
VERJEE: Yes. It was in Kenya and I was doing the love show, which was a called love lines at the time. Kind of like the Delilah of Kenya almost. When we launched this private radio station, it was a big deal because in Kenya at that time everything had been state control.
So it created all this buzz and that was the first song that was played on the breakfast show on capital FM radio. Video killed the radio star. It also launched my career.
PHILLIPS: There you go. A.J., thanks. We will be talking again. Hopefully not about Beefis and Butt Head. But Zain, on that note, I do want to turn to a little more bit of a serious entertainment story that these reports floating around today. What do we know about Amy Winehouse possibly in the process of adopting a child when she died?
VERJEE: Yes, I know. This report came out in "The Daily Mirror," which is a tabloid here. But what they are saying is that Amy Winehouse was in the process of adopting a 10-year-old girl from the island of St. Lucia. She went back and forth to the island and kind of really hit it off with this girl.
Her name is Danica. Apparently, Amy Winehouse had booked tickets even to go St. Lucia and to visit. According to this report, the kid's grandma said that the lawyers were hired and the adoption was going to move forward.
She also said that Danica's mother said she would be okay with having her daughter adopted because she was poor. She couldn't support her family. And that even the father was OK with it. Danica is devastated. She's already even started calling Amy Winehouse mom.
Over the situation, it's unclear because the family is saying that's not the case and CNN can't independently confirm the report. But that is out there and there may be a 10-year-old girl who had her heartbroken and her life devastated. Kyra --
PHILLIPS: Zain in London this morning. Zain, thanks.
Remember Pat Boone? Huge pop star in the 50s and 60s? Well, now he is a big star for Republican candidates. Wait until you hear what he is doing to help out.
Speaking of helping out, there is a group asking all of us to donate money to help pay down the national debt. We will hear from the founders, coming up.
(COMMERCIAL BREAK)
PHILLIPS: Checking top stories now. Finally there's a deal in place to raise the debt limit and reduce government spending. The House and Senate must still approve it. The Senate set to go first today. New this morning, a big change to health coverage. The federal government will require insurers to provide birth control without copayments.
Norway's home grown terror suspect reportedly bought some bomb-making material on eBay. Britain's Sunday "Telegraph" reporting that Anders Behring Breivik used the site to get sulfur powder.
Wolf Blitzer now in our Washington bureau. Wolf, we have an agreement, but no vote. So, let's lay it out if you can for Americans to tune it in at half past the hour now. Could this fall apart so close, so much happening overnight? Could it still dismantle?
BLITZER: I suspect it won't. It will be close in the House of Representatives, and a lot closer than in the Senate. The Senate it will pass overwhelmingly, a lot more than the 60 votes they need. Probably in the 70s, at least my informal count. It looks like it will do well in the Senate.
The House needs 216 votes to pass it. There are a few vacancies. It will be a close vote in the House because a lot of the liberal Democrats don't like it. A lot of the very conservative Republicans don't like it. So, it will be basically a coalition of centrists, Democrats and Republicans. Moderate Republicans, moderate Democrats. The speaker of the House is on board.
You know, Nancy Pelosi's position remains a little bit murky at this time. In the statements she's made so far, she hasn't come out with a full, one hundred percent ringing endorsement. She says she's reading it, she's studying it, she wants to consult with her Democratic caucus. It will be interesting to see how she votes.
I notice that Steny Hoyer, the minority leader, the Democratic minority leader - the Democratic minority whip -- Nancy Pelosi is now the minority leader in the House, he is out there. He's speaking robustly in favor of this deal that the president cobbled together. She is not speaking right now. So, it could.
I wouldn't necessarily be completely surprised, Kyra if in the end, Steny Hoyer votes with the president, with Boehner in favor of this deal; Nancy Pelosi on the other hand votes against it. That may not happen. We will see what happens in the course of today. But I wouldn't be necessarily be completely surprised. It wouldn't be the first time that Nancy Pelosi voted against what the president wants. Steny Hoyer votes with the president. It happened on expanding the war in Afghanistan, for example, as the president recently sought in terms of reductions but continuing it through the end of 2014 for all practical purposes.
So, it's a little bit murky up there on the House Democratic side right now.
PHILLIPS: I tell you, if it passes, you know, Americans stand to gain so much.
BLITZER: If it passes, the United States, for one thing, averts default. Which it's never happened before, which is a huge - obviously -- step forward. On the other hand, it doesn't necessarily guarantee that the credit rating agencies at Moody's, Standard and Poor's, Finch, that they would maintain America's AAA credit rating. It's probably going to be maintained for the time being. That's just what I'm hearing.
But they wanted really $4 trillion in guaranteed spending cuts. And they are not going to get it. They have less than $2.5 trillion, at least, according to this deal, if it all works out as planned right now. That's a big if.
So, you never know what the rating agencies are going to do down the road. At least for now, I think, the U.S. stays AAA. A few weeks from now, who knows?
PHILLIPS: All right. Wolf Blitzer, you are watching it for us all morning, all afternoon. You'll be talking about it, I'm sure, in the "Sit Room" for your show. We appreciate it, Wolf. Always love it when you weigh in. Thanks so much.
Well, "Political Buzz," your rapid-fire look at the hottest political topics of the day. Three questions, 20 seconds on the clock. Playing today, Democratic strategist Maria Cardona. Sirius XM political talk show host and comedian Pete Dominick. And CNN contributor and talk show host Dana Loesch. Hey, guys.
First question: They got a deal done. Still waiting for the vote, though, as we've pointed out. But who will pay the real price politically? Democrats or Republicans? Maria?
MARIA CARDONA, DEMOCRATIC STRATEGIST: Definitely the Republicans, Kyra, especially the Tea Party caucus because overwhelmingly, Americans believe they have been the ones who have been crybabies on the playground, willing to basically take their ball home if they don't get everything that they want. Their "my way or the highway" attitude, whereas President Obama and the Democrats have been much more willing to negotiate and put their most sacred programs on the table for the sake of this economy.
(BUZZER SOUNDS)
PHILLIPS: Dana?
DANA LOESCH, CNN CONTRIBUTOR: I find that absolutely hysterical because Democrats didn't produce a budget -
CARDONA: Of course you would.
LOESCH: -- and Democrats didn't produce a plan. It's - well, because that's the facts and the unfortunate matter of it. And Republicans were the ones who actually put forth proposal after proposal.
Ultimately, I think both parties will take a hit. Majority of the Americans for a long time have been wanting limiting spending. That's what they said in the exit polls last election. And I tell you, if these super committees -
(BUZZER SOUNDS)
LOESCH: -- decide to do what I think they will do and increase taxes, both of them will take a massive hit.
CARDONA: Look at the polls, Dana -
PHILLIPS: Pete? Pete?
LOESCH: I know. I have been, Maria.
PETE DOMINICK, SIRIUS XM RADIO HOST: The problem is -- ladies. Ladies!
(LAUGHTER)
DOMINICK: I think the problem here - I think the problem here is that people are concerned about who wins and loses politically. We can all make arguments and speculate. Who really loses? I think in the end, the American people who are looking for jobs -- 16 or 20 million people are looking for jobs. This deficit -
(BUZZER SOUNDS)
DOMINICK: -- cutting plan does nothing to help them find jobs. And that's what Americans want right now, to back to work.
PHILLIPS: Well, House speaker Nancy Pelosi (sic) clearly not the president's go-to gal on the debt deal. And now she is slow to endorse the final version. So, what kind of message is that sending? Dana?
LOESCH: I tell you, I thought we were supposed to be about compromises and leaving ultimatums at the door.
Honestly, you know, I can't criticize Pelosi for being slow to endorse it because I don't like this plan. It doesn't go as far as I want to, as far as I would like to see it go. So, I think you know, this just shows you that both bases within either party are really unhappy with the terms of the deal. And not because it's moderate, centrist plan, but because -
(BUZZER SOUNDS)
LOESCH: -- it's cosmetic. There's no cuts. There's nothing.
PHILLIPS: Maria?
CARDONA: I think it shows that she is the kind of a leader that she needs to be of the Democrats. She's going to listen to her caucus, see what they have to say. And don't forget, she has actually been behind the scenes, part of the negotiations every single step of the way. On the phone with Biden, on the phone with President Obama, up until the time that he announced his deal.
And Boehner is now going to need her if he is going to do what he needs to do to get this past the House.
(BUZZER SOUNDS)
PHILLIPS: Pete?
DOMINICK: Nancy Pelosi is a better much, much more experienced negotiator than President Obama, and she is trying to protect herself. And if she was negotiating this, she probably would have driven a much harder bargain than President Obama, who I would love to buy a car or frankly anything from. He'll start at $60,000, I'll offer $30,000. He'll hand me the keys; it'll be great!
PHILLIPS: All right, guys, your "Buzzer Beater." Twenty seconds each on the clock. Seventy-seven-year-old Pat Boone whose career has gone from 50s crooner to heavy metal rocker. Well, now he has a new gig. Take a listen.
(BEGIN AUDIO CLIP)
PAT BOONE, SINGER: Hello, my friend. This is Pat Boone. Yes, that Pat Boone. The "Love Letters in the Sand" guy. I am still singing at concerts. But today, a spokesman for the 60 Plus Association, I am singing the praises of Jane Norton. We need strong leaders in the Senate like Jane Norton --
(END AUDIO CLIP)
PHILLIPS: All right. He is doing robocalls for Republican candidates, you guys! The last time he ruled the pop charts, Eisenhower was in the White House. So, what other ancient celebrities should we likely out there see stumping for politicians? Maria?
CARDONA: I would love to see Betty White, Kyra. As you know, she is not only popular with the elderly, but with the young people. Imagine her robocalls, basically telling people how the GOP and Republicans want to hang the elderly out to dry and the young people, too!
PHILLIPS:
LOESCH: Oh, forevermore, let's talk about the Medicare cuts the Democrats proposed in this. No, if Betty White's career can last this long, why not Pat Boone's? I would love to see Alice Cooper out there. Or Gene Simmons. Because they are both, from what I hear, Republicans.
PHILLIPS: And they're very outspoken. Pete?
DOMINICK: Whoever the Democrats march out, hopefully they won't have to spend half the robocall tell them who they are and that they are still working. Maybe someone you can recognize the name of. Or maybe they could march out some obscure celebrity that could dress up as Jesus Christ and advocate what he would have wanted in budget cuts.
(LAUGHTER)
PHILLIPS: Dana, Maria, Pete, thank you so much for once again making all of our day.
OK, well, coming up with the national debt snowballing and this new compromise, still not a done deal. How about cutting the government check yourself? A New York couple is asking all of us to kick in. You will meet them, next.
(COMMERCIAL BREAK)
PHILLIPS: We have been hearing about the different math and methods and plans to help cut down national debt. Well, take a listen to this one. Some regular folks are soliciting donations from the nation. They are asking you and me and everybody to kick in whatever we can towards the $14.3 trillion tab.
Seth and Terry Eisenberg are cofounders of the Association to Reduce the Nation's Debt. And guys, first things first. I want to know how much you raised so far. Seth?
SETH EISENBERG, CO-FOUNDER, ASSOCIATION TO REDUCE THE NATION'S DEBT: Well, we've had tremendous success so far. We are a new organization. It's only been month old. And in light of that, in just the past three days, we've raised over several thousand dollars. Our support has been wonderful. We've noticed traffic on our Web site has gone up by 2,000 percent in the last week. Amazing amount of hits on our Facebook, and things are really starting to happen for us. We are really excited about the possibilities about what we can do for our nation.
PHILLIPS: Well, as we look at the Facebook page here and the activity, Terry, how did you come up with this idea?
TERRY EISENBERG, CO-FOUNDER, ASSOCIATION TO REDUCE the NATION'S DEBT: We have four children and one grandchild, and we are concerned about their future. We want to ensure they have the same opportunities that we have had.
PHILLIPS: All right. Seth, I don't want to rain on your parade here, but I got to play a little bit of a devil's advocate. But at the rate of $1,000 a month, $14 billion month, nearly 1.2 billion years to actually get there.
So, what's the reality of this really making a dent? You guys are sounding very positive, but we are talking about a lot of money here, my friend.
SETH EISENBERG: You're right. We are. But we want people to understand is we are not trying to pay off the debt. We understand that's a very high number to do.
What we need to show the world, show our creditors and show the credit rating agencies that we have a plan that we know how to manage our debt. The concern is not really this phenomenon about the debt ceiling crisis. It's about the growth of our debt in and of itself.
And we need to be able show the world that we are doing something about it. We can show the world that the Americans are united, that we're proud, that we're patriotic. And we are going to stand together in this time of crisis and do something about it.
Not only that, but by actually helping to reduce the amount of existing debts, we free up interest payments that can be used to help create jobs, stimulate the economy, use for education and all sorts of other domestic programs that we need desperately need our money to go for instead of wasting it on interest payments.
PHILLIPS: So, Terry, are you actually writing checks and sending it straight to the Treasury?
TERRY EISENBERG: Yes, we are. We definitely are doing that.
SETH EISENBERG: We have sent checks, and what we are hoping to do is get a lot of money because we want to speak as a unified voice to really show the politicians and the world what we are doing. I would like to go down to Washington with a large check and say Dear Mr. President and Mr. Speaker and Mr. Senate majority leader, the American people are working hard to do their part. And we are asking you to keep focusing on helping the debt issue also.
TERRY EISENBERG: We've had a tremendous amount of support. It feels so good to know so many people are behind us.
PHILLIPS: Well, I'll tell you what. You guys are pretty creative and gutsy. Seth and Terry Eisenberg. It's called the Association to Reduce The Nation's Debt. They are asking for you to help in and pay off -- the trillions of dollars.
Guys, thanks so much.
SETH AND TERRY EISENBERG: Thank you.
PHILLIPS: All right, well, birth control for women now going to be completely free. Not even a co-pay. Before we see what the reaction is, we're going to explain how it works. That's just ahead.
(COMMERCIAL BREAK)
PHILLIPS: Here's some stories making news later today.
At noon Eastern, a status hearing is being held in Chicago in a courtroom for convicted - or former governor Rod Blagojevich.
And NASA is unveiling images from the Dawn Spacecraft's orbit of the Astra Investa during a news conference at noon.
And at 6:00 Eastern, a memorial garden being dedicated to the victims of the Interstate 35 bridge collapse in Minneapolis four years ago today.
All right. Birth control for women is now going to be free. Not even a co-pay. Senior medical correspondent Elizabeth Cohen here to explain exactly how this would work.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: You know, this is surprisingly simple. The government tells private health care insurers, you have to pay for birth control. You can't charge a co- pay.
PHILLIPS: Yes, that's it. No debate.
COHEN: That's it. Birth control pill, IUD, getting your tubes tied, anything, this is all part of that health care reform bill that passed. There is one thing I think that will disappoint women, is that they won't pay for the husband to get a vasectomy. Or your boyfriend or any guy. They won't pay for that. This is just for women.
So, if your chosen form of birth control is that your husband gets snipped, forget it. They won't pay for that.
PHILLIPS: So, are there other things that are going to be covered, or did you name them all?
COHEN: Well, that's just under contraception. There's a whole bunch others like screening for HPV, screening for gestational diabetes and also, breast pumps for nursing mothers.
PHILLIPS: And why was this decision made?
COHEN: The decision was made because this is sort of the newer way of thinking is that prevention is the best medicine, both in terms of health and in terms of money. So, 40 percent of pregnancies are unintended. And those moms do not do as well when you look at their health, those babies don't do as well. Babies and mothers do better when the mom wanted that pregnancy.
So, this is a way of not having babies that are not wanted, and also a way of keeping mothers and babies healthier.
PHILLIPS: And the reaction has been?
COHEN: You know, according to one poll, about 77 percent of Americans support this. They want women to have free birth control.
Now, Catholic groups don't like this. Far-right groups don't like this. They say, why should my taxpayer dollars go to something I object to? That I philosophically object to and feel really is immoral?
PHILLIPS: Elizabeth, thanks.
COHEN: Thanks.
PHILLIPS: Well, Jon Huntsman unloaded on Mitt Romney for what he called "ducking the debt debate." Here's what Romney just said, coming up in our political ticker.
(COMMERCIAL BREAK)
PHILLIPS: As you know, lawmakers there on Capitol Hill could be just hours away from passing a debt compromise. Just moments ago, we heard from Senate majority leader Harry Reid on the floor. Let's go ahead and take a listen. (BEGIN VIDEO CLIP)
SEN. HARRY REID (D-NV), MAJORITY LEADER: It was a compromise. It's not always easy for two sides to reach consensus, but that's what we did. We did it on a bipartisan basis.
So, I believe that reasonable Republicans and Democrats alike understood in this case, without compromise, our country faced a very, very difficult situation.
But we did send, Mr. President, to the world and the American people, that our great democracy is working. As difficult and as hard as it is, it works.
(END VIDEO CLIP)
PHILLIPS: Alison Kosik from the New York Stock Exchange, where the market is trading lower despite the debt agreement in Washington. So, Alison, what do you think is going on with these losses?
ALISON KOSIK, CNN BUSINESS CORRESPODENT: Yes, we saw that rally fizzle out. The Dow climbed as much as 120 points at the open and then fizzled out quickly. This all has to do with a dismal manufacturing reading that came out at the top of the hour. It came in much weaker than expected, stripping away all the gains we saw on the heels of this debt deal.
You know, you also have to consider that some investors could be a bit nervous to buy in and stick to the buys until the congressional vote is actually done. You think about it, it's going to need votes from both sides of the aisle, and those will need to be gathered at the last minute.
You know, remember, this deal was just put on the table less than 24 hours ago. Now, it is expected to pass, but here's an interesting tidbit for you, Kyra. The last time a measure of this magnitude failed to pass was in September of 2008 -- September 29th to be exact -- when the House at first rejected a $700 billion bank bailout bill. We watched the Dow plunge almost 800 points that day. Many were saying it was just too rushed.
So, at this point as we washed this deal go through the process, everybody is hoping that the vote goes a lot smoother than it did back then for the bailout deal. Kyra?
PHILLIPS: OK, Alison. Thanks.
Let's check stories now "Cross-Country."
After a weekend of air, ground, and water searches, still no sign of a missing New Hampshire girl. Eleven-year-old Celina Cass has not been seen since last Monday night. Her father spoke publicly for the first time yesterday. He says Celina is not the type to run away, so he does fear that she has been kidnapped.
A teenager is dead, and three other people wounded after a shooting near a George Clinton concert in Cleveland. Police say it started as a fist fight and quickly got out of hand. They don't think it was related in any other way to the show.
And this.
(BEGIN VIDEO CLIP)
AUTOMATED VOICE: You may now share your vows with (INAUDIBLE).
(END VIDEO CLIP)
PHILLIPS: An unusual wedding in Houston. The happy couple is married by a computer. The groom is a web developer; created the program as a stand-in for their minister friend who couldn't be there. They did still have to get a justice of the peace, though, to formally sign off.
Continuing debt ceiling coverage coming up in the next two hours of the NEWSROOM. We will talk live to two members of Congress. One a member of the Tea Party, the other a Democrat. Hear how each views the debt ceiling compromise.
Plus, the White House briefing starts in less than an hour. We will bring you that live as well. And of course, analysis and reaction from The Best Political Team on Television.
(COMMERCIAL BREAK)
PHILLIPS: Here is Joe Johns, here with today's "Political Ticker." So, Joe, what are the candidates on the campaign trail saying about the debt deal? I know you've been tracking that.
JOE JOHNS, CNN SENIOR CORRESPONDENT: Hey, Kyra. Mixed bag. No big surprises, but they are not exactly speaking with one voice, either. Mitt Romney just put out a statement a few minutes ago. He took the opportunity to blast president in a statement. He says, "As president, my plan would have produced a budget that was cut, capped and balanced, not one that opens the door to higher taxes and puts defense cuts on the table. President Obama's leadership failure has pushed the economy to the brink at the eleventh hour and 59th minute. And while I appreciate the extraordinarily difficult situation President Obama's, quote, 'lack of leadership' has placed Republican members of Congress in," he says "I personally cannot support the deal."
Congresswoman Michele Bachman in fact had to do more than just weigh in. She had to cut short a campaign trip in Iowa to come back to Washington in anticipation of a vote on the House floor. She was supposed to make two appearances in person out there today, but looks like that's out. She is voting against it. Her statement said, quote, "Someone has to say no, and I will."
Jon Huntsman, on the other hand is going a completely different direction on this. The statement he put out supports the deal. He says that while some of the his opponents, quote, "ducked the debate entirely, others would have allowed the nation to slide into default and President Obama refused to offer any plan/" But he says he is standing with congressional Republicans, working for spending cuts. "Debt crisis like this is a time for leadership, not a time for waiting to see which way the political winds blow."
So, that's a sampling of what people are saying, Kyra, out on the campaign trail. I expect we will be hearing a whole lot more over the next year approaching the elections.
PHILLIPS: No doubt. Joe, thanks.
We'll have you next political update in just about an hour. And a reminder, for all the latest political news, go to our Web site, CNNpolitics.com.
That does it for us. We'll see you back here tomorrow morning. Drew Griffin in for Suzanne Malveaux today. Hello, sir.
DREW GRIFFIN, CNN ANCHOR: Taking over as we what these guys in Washington are going to do today, Kyra. Let's get right to it, shall we?
