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President Obama Speaks In Minnesota; Obama Holds Minnesota Town Hall; GOP Field Takes Shape; Buffett to Congress: Don't Coddle Me, Interview with Reince Priebus
Aired August 15, 2011 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Think about it. Over the last six months, we've had a string of bad luck. There have been some things that we could not control. You had an Arab spring in the Middle East that promises more democracy and more human rights for people, but drove up gas prices, tough for the economy, a lot of uncertainty. And then you had the situation in Europe where they're dealing with all sorts of debt challenges, and that washes up on our shores. And you had a tsunami in Japan, and that broke supply chains and created difficulties for the economy all across the globe.
So, there were a bunch of things taking place over the last six months that were not within our control. But here is the thing -- the question is how do we handle these challenges? Do we rise to the occasion? Do we pull together? Do we make smart decisions? And what's been happening over the last six months, and a little bit longer than that if we are honest with ourselves, is that we have a political culture that doesn't seem willing to make the tough choices to move America forward.
We've got a willingness to play partisan games and engage in brinkmanship that not only costs us in terms of the economy now but also is going to place a burden on future generations. And the question is, can we break out of that pattern? Can we break out of that pattern? Think about it, we just went through this debacle with the debt ceiling, an entirely self inflicted wound. It wasn't something that was necessary. We had put forward a plan that would have stabilized our debt and our deficits for years to come, but because we've got a politics in which some folks in Congress, not the folks who are here, but some in Congress would rather see their opponents lose than America win.
We ended up creating more uncertainty and more damage to an economy that was already weak. Now, we can't have patience with that kind of behavior anymore. I know you're frustrated, and I'm frustrated, too. We've got to focus on growing the economy and putting people back to work and making sure that the American dream is there not just for this generation but for the next generation.
Another way of putting this is, we expect our political representatives to show the same level of responsibility that all of you show. I don't know most of you, but I can guess that you're all working hard, you're managing your budgets, you're putting something away for your kids' college education, and maybe for your retirement, here at the local church, working at the food pantry or doing something to help out your community, coaching little league. You are following through on your responsibilities, and that's true all across the country, people are doing the right thing.
Well, if can you do the right thing, then folks in Washington have to do the right thing. And if we do that, there is not a problem that we face that we cannot solve. Think about it, our biggest challenge right now is putting people to work. Biggest challenge is getting the economy growing as rapidly as it needs to grow. It's been growing, we've been able to reverse the recession. We've added over two million jobs in the private sector over the last 17 months. But we're not growing it as fast as we need to drive down the unemployment rate in a significant way and give people confidence.
So, here are some things we could do right now that I have been talking about for months. We could renew the payroll tax cut that we gave you in December that put $1,000 in the pocket of a typical family so that you got more money in your pockets to spend to meet your obligations, it also means businesses have more customers. And it means they might hire a few more folks as a consequence, all we need to do is renew it, it's already in place. If we have certainty next year that that same tax cut is going to be in place, then that's going to help businesses to make decisions to hire people and open up and make investments. That's something we can do right now, Congress can do that right now.
Congress, right now, could start putting folks to work rebuilding America. One of the biggest things that caused this recession was the housing bubble. And all the subprime loans that were going out, that were getting packaged in Wall Street and folks were making millions and billions of dollars off them and then the whole thing came crashing down. And no one has been hit harder than constructer workers. And so for us to say, at a time when interest rates are low, contractors are begging for work, construction workers are lining up to find jobs, let's rebuild America. We could be rebuilding roads, and bridges, and schools, and parks all across America right now. We could put hundreds of thousands of folks to work right now.
There's a bill sitting in Congress right now that would set up an infrastructure bank to get that moving, attracting private sector dollars, not just public dollars. Congress needs to move. Right now we've got our veterans coming home from Iraq and Afghanistan who've taken their place among the greatest of generations and made extraordinary sacrifices. These are -- you know I meet these young people -- I mean, young people, 23, 24 years old. They're in charge of platoons, making life or death decisions, they're in charge of millions, tens of millions, a hundred millions worth of equipment, and they're coming home and can't find work. So, we said, let's give tax credits to companies that are hiring our veterans and let's put them back to work and let's let them use their skills to get this country moving again. Congress could do that right now.
Trade deals. You know, trade deals have not always been good for America. There are times when we have not gotten a fair deal out of our trade deals. But we've put together a package that is going to allow us to start selling some Chevys and some Fords to Korea. I mean, we don't mind having Hyundais and Kias here, but we want made in America stuff in other countries, that's something Congress can do right now.
Add and reform. It's something that a lot of folks don't talk about, but our entrepreneurs, when they come up with a good idea, if we could reform how that system works and cut some of the red tape, we could have entrepreneurs creating businesses like Google and Microsoft right now all across the country, but we've to make this investment, and Congress could make that decision to make it happen.
So, there is no shortage of ideas to put people to work right now. What is needed is action on the part of Congress, a willingness to put the partisan games aside, and say we're going to do what is right for the country, and not what we think is going to score political points for the next election. Now, we also need to do this in a way that allows government to live within its means. Like I said, everybody here, you make responsible choices about what you can afford and what you can't afford. America needs to do and can do the exact same thing.
There are some programs that don't work, we should stop funding them. There is some red tape that needs to be cut, we should cut it. But the fact of the matter is that solving our debt and deficit problems simply requires all of us to share in a little bit of sacrifice, all of us, to be willing to do a little bit more to get this country back on track. And that's not too much to ask.
Basically, what we need to do is we need to cut about $4 trillion over the next ten years. Now that sounds like a big number, it is a big number. But you know, if we were able to, as I proposed, cut about $2 trillion in spending, if folks who could best afford it, millionaires and billionaires were willing to eliminate some of the loopholes that they take advantage of in the tax code and do a little bit more, and if we were willing to take on some of the long-term costs that we have on health care, if we do those things, we could solve this problem tomorrow.
I put a deal before the speaker of the house, John Boehner, that would have solved this problem. And he walked away because his belief was we can't ask anything of millionaires and billionaires and big corporations in order to close the deficit. Now, Warren Buffett had an op-ed that he wrote today where he said we have to stop coddling billionaires like me. That's what Warren Buffett said. He pointed out that he pays a lower tax rate than anybody in his office, including the secretary. He figured out that his tax bill, he paid about 17 percent. And the reason is because most of his wealth comes from capital gains.
You don't get those tax breaks, you're paying more than that. Now I may be wrong, but I think you're a little less wealthy than Warren Buffett, and that's just a guess. The points is, if we are willing to do something in a balanced way, making some tough choices in terms of spending cuts, but also raising revenue from folks who have done very well even in a tough economy, then we can get control of our debt and deficit and we can start still investing in things like education and basic research and infrastructure that are going to make sure that our future is bright.
It's not that complicated but it does require everybody being willing to make compromises. I was in Michigan the other day, and I said, I don't know about how things work in your house, but in my house if I said, you know, Michelle, honey, we got to cut back, so we're going to have you stop shopping completely, you can't buy shoes, you can't buy dresses, but I'm keeping my golf clubs, you know, that wouldn't go over so well. The point is, some things happen in Washington where we think that kind of compromise that we do every day in our own families with our neighbors, with our co-workers, with our friends, that somehow that's become a dirty word, and that's got to change, that's got to stop.
So, here's the bottom line. Obviously, with the markets going up and down last week, and this downgrade, a lot of folks were feeling a little anxious and distressed and feeling like, boy, we've been working so hard over the last two and a half years to get the economy back out of recession, and some folks worried we might be slipping back.
I want all of you to understand, there is nothing that we're facing that we can't solve with some spirit of America first. A willingness to say we're going to choose party -- we're going to choose country over party, we're going to choose the next generation over the next election, if we are willing to do that, then I have absolutely no doubt that we can get this economy going again, we can put people to work back again, small businesses can start growing again, but I'm going to need your help to make it happen. You've got to send a message to Washington that it's time for the games to stop, it's time to put country first
It is time for the games to stop. Some folks were asking me, well, why don't you just call Congress back. And I said, I don't think it's going to make people feel encouraged if we have Congress come back and all they are doing is arguing again. So, what they need to do is come to Cannon Falls, they need to come to -- they need to go back to their districts, talk to ordinary folks, find out how frustrated they are, and hopefully when they get back in September, they're going to have a new attitude.
But I want everybody to understand here that I'm not here just to enjoy the nice weather, I'm here to enlist you in a fight. We are fighting for the future of our country. And that is a fight that we are going to win. That is a promise that I make with your help.
Thank you very much, everybody. Thank you.
All right. So everybody have a seat. Here is how we're going to do it. I'm just going to call on folks and we're going to go girl, boy, girl, boy to make sure that -- to make sure it's fair. And I've got a couple daughters, so I know sometimes, you know, all right.
Right here. Go ahead. Yes. Yes. Hold on, we've got a mike. And introduce yourself for me.
UNIDENTIFIED FEMALE: OK. Hi, I am Cecilia Fendorf (ph). And, first off, President Obama, I just -- I want to say, as a young voter, thank you for helping me believe that it will be good some day.
OBAMA: It's going to be good.
UNIDENTIFIED FEMALE: But I have a question, I promise.
OBAMA: You bet.
UNIDENTIFIED FEMALE: My question is, how are you going to use renewable energy to create jobs in the future?
OBAMA: Well, this is a great question, especially for rural communities all across America. Tom Vilsack, who was the former governor of Iowa, knows a little bit about agriculture. And so when I put Tom in as the head of the Department of Agriculture, one of the first things we talked about was, how can we mobilize the incredible resourcefulness and hard work of rural communities all across this country, not just to create jobs but also to win back energy independence. And as a consequence, we have put billions of dollars into energy research and help move in a direction of greater reliance on fuels that are homegrown.
So let me give you a couple of examples. One, obviously, is biofuels. And a lot of folks here are familiar with corn-based ethanol. But the fact of the matter is that the technology's moving where we need to start taking advantage of a whole range of biofuels, using refuse (ph), using stuff that we don't use for food, to create energy. And we are seeing incredible progress on that front, but it's key to make sure that we continue to make the research and that we also use the incredible purchasing power of the federal government to encourage it.
So one of the things that I know we're doing, is we're actually working with the Department of Defense to start saying, let's run some of these -- let me just say this. The Department of Defense uses a lot of fuel. So the question is, can we get trucks and Jeeps and, in some cases, even fighter jets running on alternative fuels, which is important for our national security, but also could provide an incredible boost to communities all across Minnesota, all across the country.
The other thing that we have to do is look at things like wind power and solar power and the next generation of electric vehicles. You know, you will recall when I came into office, they were talking about the liquidation of GM and Chrysler. And a lot of folks said, you can't help them, and it's a waste of the government's money to try and help them. But what I said was, we can't afford to lose up to a million jobs in this country, particularly in the Midwest, but we also can't afford to lose leadership in terms of building an auto industry that we used to own. And so we turned around those auto companies. They are now making a profit for the first time in decades. They're gaining market share for the first time in years.
But what we said was, if we're going to help you, then you've also got to change your ways. You can't just make money on SUVs and trucks. There's a place for SUVs and trucks, but as gas prices keep on going up, you've got to understand the market, people are going to be trying to save money. And so what we've now seen is an investment in electric vehicles.
And then what we did was we put investments in something called advance battery manufacturing, because those electric cars, how well they run depends on how good the batteries are. How long they can run before they get recharged. We only had 2 percent of the advanced battery manufacturing market when I came into office. We're on track now to have 30, 40, 50 percent of that market. We are making batteries here in the United States of America that go into electric cars made here in the United States of America. It creates jobs and it creates -- and it creates energy independence. And it also improves our environment.
So that's the kind of approach that we have to take using the private sector, understanding that ultimately the private sector is going to be creating jobs, but also understanding that the government can be an effective partner in that process. And nowhere is that more true than in rural America. So, great question.
All right. The gentleman right here. You can borrow my mike. Oh, you got it?
UNIDENTIFIED FEMALE: I got it.
OBAMA: OK.
UNIDENTIFIED FEMALE: (INAUDIBLE) hang on to it.
UNIDENTIFIED MALE: Mr. President, I'm Gary Evans (ph) from Winona, Minnesota. I run a broadband company there. And I've got a couple of messages that I hope you'll take back to your colleagues in D.C.
The first is, two year ago we had 60 employees. Tomorrow we will cross 100. We are making the investments in this country. So my first message is, help the job creators. Do what it takes.
Secondly, it was already apparent as the debt debate went on that the mood in America had shifted again to skepticism. So I'm hoping that you and your colleagues will do everything possible to make certain that confidence is restored to the country and that we have a bright future. I think broadband is a key and I appreciate what you did for it during the stimulus act.
Thank you.
OBAMA: Thank you.
We were talking earlier about rural America. Despite all its incredible advantages, especially its people, a disadvantage is that rural America, by definition, is a little more spread out. It's a little more stretched out. Right, population density isn't as great. So as a consequence, when we've seen all these investments in wireless and broadband and all these new technologies that are stitching the world together, a lot of times rural America is left out. And that's why when we came into office, one of the big investments we said we were going to make is in broadband technology so that we can connect every single town all across America. We want 98 percent coverage when it comes to broadband and we want that same kinds of coverage when it comes to wireless. Because what that means is -- what that means is, is that if there's a small business in Cannon Falls that's got a great idea, you don't have to just confine your market to Cannon Falls, you can start selling in Rochester, and then you start selling in Des Moines, and then you start to sell in New York, and maybe you start selling something in Paris. And there are incredible opportunities in terms of business growth, but it requires a connection to all these wider markets. Yes, the days are gone where any business is going to succeed just by selling right where they're located. And that's why we've made such a big investment in this, and I'm pleased to see that it's working.
In terms of boosting folks' confidence, I think people would actually feel pretty confident if they felt like their leaders were working together. I mean that's my belief. But I also think that they're looking for some practical common sense.
You know, I know it's not election season yet, but I just have to mention, you know, the debate the other party candidates were having the other day, when they were asked to reduce our deficit, reduce our debt, would you be willing to take a deal where it was $5 of spending cuts for every $1 of increased revenues. Who would take it? Everybody said no. They said how about 10 to one. $10 of cuts for every dollar increase in revenue. Are you saying that none of you would take it? And everybody raised their hand. None of them would take it.
Think about that. I mean that's just not common sense. Ronald Reagan, George H.W. Bush, Bill Clinton, the last time we had a balanced budget. All of them understood that you have to take a balanced approach to solving our deficit and debt problems. The same way a family would. You -- if you knew that you had to cut down on your budget, you wouldn't stop funding the college fund for your kid. You wouldn't say, sorry, Johnny, you know, things are tight, so we're going to keep on, you know, taking our -- you know, annual vacation, and I'm going to buy a new car next year, but you're not going to college. That's not how you balance your budget.
Well, the American people are expecting that same kind of common sense reflected. And if it was there, I guarantee you confidence would go up. I speak to CEOs of companies all across America and what they tell me is, you know what, we're actually willing to do a little bit more when it comes to our personal taxes, because they know they've done very well. They said the single most important thing we want is making sure that middle class families -
(END LIVE COVERAGE)
RANDI KAYE, CNN ANCHOR: You've been listening to President Obama there in Cannon Falls, Minnesota. One of the first moments in his three-day, three-state tour. He explained that we've had some bad luck here in the U.S. for the last six months. He wants to rebuild America right now. He says that is possible. It can put hundreds of thousands of folks to work right now. He says it is time for the games to stop. Time to put the country first.
So as I said, this is three days, three states, five little towns under a very big political spotlight. Any second now, we've been listening there, but any second now he should continue with those questions from Cannon Falls, Minnesota. Stop number one on what the White House is calling the economic bus tour.
Republicans have other names for it. Mitt Romney calls it a magical misery tour. And RNC points out, and I quote, "it just happens to crisscross several battleground states critical to the president's re- election."
He'll be in Iowa this evening and tomorrow, Illinois on Wednesday.
Cannon Falls, just south of Minneapolis, hasn't hosted a U.S. president since Calvin Coolidge in 1928. In his outdoor town hall, President Obama reflected on more recent history, the gridlock of summer 2011.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: But some in Congress would rather see their opponents lose than America win. We ended up creating more uncertainty and more damage to an economy that was already weak.
Now we can't have patience with that kind of behavior anymore. I know you're frustrated. And I'm frustrated, too. We've got to focus on growing this economy, putting people back to work and making sure that the American dream is there, not just for this generation, but for the next generation.
(END VIDEO CLIP)
KAYE: And before I go any further, I want you to know that Wolf Blitzer is interviewing the president one-on-one. And you can see it all on Wolf's show tomorrow. That's "The Situation Room." It airs at 5:00 p.m. Eastern, 2:00 Pacific, only on CNN.
A presidential road trip always comes with baggage. Mr. Obama is weighed down with a fragile economy, an exhausting fight over debt, and now this, a job approval rating below 40 percent. This from the Gallop daily tracking poll. And it's never been lower. At the same time, the anti-Obama pre 2012 campaign rhetoric has never been higher. Fresh off his seventh place finish in the Iowa straw poll, Mitt Romney said this today in New Hampshire.
(BEGIN VIDEOTAPE)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: The president has set about a bus tour today going to swing states. And, frankly, I think the American people would rather see him in Washington working on getting this economy going again. He seems to be more intent on trying to save his job than to try and create jobs for the American people. I saw this morning that his approval ratings are at an all-time low for him. That is not because he's not campaigning. It's because he's not leading.
(END VIDEO CLIP)
KAYE: I mentioned the Iowa poll. It was narrowly won, as you may know, by Minnesota Congresswoman Michele Bachman. Now one of three apparent front-runners for the GOP nomination. The others are Mitt Romney, despite his showing in Iowa. And the newest force in the race, Texas Governor Rick Perry.
And all this brings me to a Republican leader who's not running for anything, but has a huge role to play in the year ahead. Reince Priebus heads the Republican National Committee and he joins me on the phone from, where else, Cannon Falls, Minnesota. What are the odds?
Mr. Priebus, thank you so much for your time. You're shadowing the president's bus tour, of course, You say it's not about the economy, this is about the election. Am I right?
REINCE PRIEBUS, CHAIRMAN, REPUBLICAN NATIONAL COMMITTEE (via telephone): Well, that's right. I mean he's spending taxpayer dollars on a bus tour disguised as some kind of, you know, economic event for the country, when we all know what it is. It's a campaign event paid for by the taxpayers.
You just heard his speech. I mean he's living in an alternative universe. He's talking about who's playing games in Washington. This president is the king of games and the king of speeches and the king of campaigning, and he hasn't led on a single thing in the country since he passed $1 trillion stimulus package that lost 2.5 million jobs.
So, I just -- you know, he can go and keep competing for the forensic speech award, but the American people are looking for somebody to start leading the country, and he is blaming bad luck, the "Arab Spring" for our problems in this country? Well, how about out of control spending and entitlements that are out of control, and a president that is not engaged? That's the problem.
KAYE: Let me ask you about the RNC airing the radio ads and the Web spot, calling it quote, "the debt end bus tour," D-E-B-T, the debt end bus tour. Explain what you mean by that.
PRIEBUS: Well, that's right. I mean, that's exactly why we're in Minnesota. We're launching the debt end bus tour. We're doing new media, digital rich, commercials, radio ads, text campaigns, to highlight to the American people that what this president is the king of, is not only the king of games, he's the king of debt, he's the king of failed promises, he's the king of saying one thing and doing another.
And that's why we're here in Minnesota. We're going to be in Iowa. We're going to be throughout the Midwest and we're going to be highlighting to the American people that what this president is feeding us is a bunch of dog food and he's trying to disguise it as some economic food for America. It's a joke and it's paid for by the American people.
And it's about time that some people start calling it what it is, and it's a fraud. And that's what we're doing here in Minnesota.
KAYE: Well, let's talk about the GOP field in the wake of the Iowa straw poll. You look at the names now, and you have Rick Perry in and Tim Pawlenty out, Michele Bachmann as the frontrunner in the straw poll, Mitt Romney came in seventh. Just how important would you say Iowa is?
PRIEBUS: Well, I think it's important. I mean, obviously, all these tests are all important. It creates a tremendous amount of buzz for our candidates. I'm a big believer in these big primaries. I think it gets the voices out. It gets a lot to earn media out there, gets people in the newspapers, on television.
And we start to have a conversation with many different candidates about what we need to do to change directions in this country, save America economically, and make Barack Obama a one-term president. I think that's great.
KAYE: Reince Priebus, pleasure to have you on, RNC chairman. Enjoy your time there in Cannon Falls. That's a lovely place.
PRIEBUS: (INAUDIBLE) in the Midwest, that's for sure.
KAYE: Thank you.
Coming up, why a man that paid nearly $7 million in federal taxes last year wants the government to take more. Don't go anywhere.
(COMMERCIAL BREAK)
KAYE: Well, as you just heard, President Obama was speaking about billionaire Warren Buffett. He is making news today. In a "New York Times" op-ed, he essentially begs Congress to make the rich like himself pay more taxes. Buffett, who paid nearly $7 million in federal taxes last year, says he shouldn't pay a lower tax rate than the other people in his office. And the super rich should not longer be protected like endangered spotted owl.
He writes, quote, "Our leaders asked for shared sacrifice. But when they did the asking they spared me. I checked with my mega-rich friends to learn what pain they were expecting, they too were left untouched.
But for those making more than $1 million I would raise taxes, of course, including dividends and capital gains. And for those who make $10 million or more, I would suggest an additional increase in rate. My friends and I have been coddled long enough by a billionaire-friendly Congress. It's time for our government to set serious about shared sacrifice."
And according to results of a CNN/ORC International poll released last Wednesday, many Americans agree that it's the only way the country can dig itself out of its concern mess. In the survey, take a look here -- 63 percent of the people interviewed said they think the new bipartisan committee in charge of deficit reduction should raise taxes on higher income Americans and businesses.
And just how many Americans are considered, quote, "rich"? Three percent of tax returns were filed by people earning a gross suggested income of $200,000 or more. Americans earning $1 million or more were more rare, surprising just 0.2 percent of total tax filers.
And the wealthiest taxpayers, those earning $10 million or more, were only 8,274 strong, according to the IRS.
Out of these nearly 4 million rich people making more than $200,000 a year, 1,470 didn't pay any income tax whatsoever in 2009. Those who did pay taxes earned a total of $2 trillion in income, about 26 percent of total taxpayer income in 2009.
For a link to the article, check out my Facebook page, Facebook.com/RandiKayeCNN.
Up next, remembering the victims of Saturday's deadly stage collapse. Just two days later, the Indiana state ferry has reopened with a memorial service.
(COMMERCIAL BREAK)
KAYE: Checking the hour's top stories right now.
The Indiana state fair re-opens with a memorial service for the people killed after a stage collapsed during a violent storm over the weekend. As you can see in this video, a wind gust took down the stage Saturday night just minutes before the band Sugarland was set to perform. People in the crowd rushed to the rescue, trying to help those trapped under the stage.
Just look at that come down.
Five were killed, at least 40 others injured.
Police say the stage collapsed minutes after a warning to concertgoers about the storm.
Protesters could disrupt the ride home for San Francisco subway commuters today. Officials for the San Francisco Bay Area rapid transit system are warning riders of a protest at the civics center station later today.
Members of the group Anonymous are organizing that demo. This after claiming it hacked the transit system's Web site mybart.org on Sunday. The group says it acted on response to BART cutting cell phone stations at some of the stations last week. BART says the blocked service keep potential protesters coordinating their activities.
The University of North Dakota is one step closer to retiring its nickname, the Fighting Sioux mascot. The NCAA has given a school until the end of the day to make a change saying its 90-year-old moniker is abusive toward Native Americans. UND says the school was in the process of changing it when legislators passed a law ordering them to.
But the school needs to follow the rules if they don't want to face sanctions. The University of North Dakota is set to join the Big Sky Conference next year.
"Money" magazine is out with a list of the best places to live. And this year, focusing on towns with less than 50,000 people. Can you guess the community we're talking about today?
Here's a clue.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE REPORTER: This town has something in common with the home of Kentucky Derby and has more than 300 days of sunshine. But places plenty of space to horse in, we'll let you know after the break.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
UNIDENTIFIED MALE: ...to horse around? Number one on Money Magazine's list of best places to live is Louisville, Colorado, not to be confused with Louisville, Kentucky. The outdoors is what attracts people to this town. It has 27 parks and 27 miles of trails to keep you out of the sun.
(VIDEO CLIP)
UNIDENTIFIED FEMALE: When you get a little older and you need a little space and have a family, Louisville is the perfect place.
(END VIDEO CLIP)
UNIDENTIFIED MALE: And the perfect place to own a home. Real estate values in town have barely budged in six years.
RANDI KAYE, CNN NEWSROOM, ANCHOR: The world was shocked by last month's twin terror attacks in Norway, shocking in a different way. Suspect Anders Breivik has returned to the scene of the most deadly attack. You may recall, first there was a bombing in the capital, Oslo, that killed eight people last month. As first responders rushed to care for the wounded, the attacker went to a nearby island and opened fire on anyone and everyone he encountered. By the time he surrendered, 69 people were dead or dying, many of them children. Anders Breivik has admitted carrying out the attacks.
With the country still struggling with this event, Breivik returned to the island over the weekend. He's seen in these pictures wearing a bullet-proof vest and a leash held by a police guard. For 8 hours he led police through a simulation of his actions. At times, he stopped, even held his arm up as if pretending to take aim at his victims. A police prosector says Breivik showed no remorse. Officials say the simulation was needed to clarify details of the attack that would be used at Breivik's trial.
In Iraq insurgents carried out a series of deadly attacks across the country today. By the time it was all over at least 75 people were dead. More than 250 wounded. The violence hit just about every region of the country and appeared to target security forces in both Sunni and Shiite areas. In all, there were 20 bombings and shootings, making it the deadliest single day in months. There have been no claims of responsibility but a jihadist web site did praise the attacks.
In Egypt, the site of Hosni Mubarak on a bed and in a cage, apparently, was too much for the judge hearing his criminal case. The former President was back in court, back in that cage today. The judge said that spectacle will no longer be televised. He defended the move as necessary to protect the public interest. Mubarak, on trial with his two sons is charged with the killing of anti-government protestors earlier this year and corruption. He faces the death penalty if convicted. The trial is scheduled to resume September 5th.
Up next, is the future of farming in shipping containers in abandoned parking lots. Stick around with more on that.
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KAYE: If my next guest has his way every city in the world will be filled with old shipping containers. But it could be a good thing actually. His company uses containers to grow fresh local produce. He claims in a 320-square foot area, he can produce an acre's worth of produce in a controlled environment that saves water, lights and nutrients. If you live in Atlanta, you may have eaten a PodPonics plant for dinner without even knowing it. The startup already supplies 150 pounds of lettuce, arugula and other micro greens to local restaurants. Matt Liotta, the founder and CEO of PodPonics joins me for today's Big Eye. Glad you're with us.
MATT LIOTTA, FOUNDER AND CEO, PODPONICS: Thank you.
KAYE: Tell us how you grow this type of thing, I guess, in a pod. Is that how it works?
LIOTTA: That's correct. What we do is convert the shipping container into a controlled environment that provides just the perfect environment for the crops that we grow, in this case, lettuce. And what happens there is we use a technology called hydroponics as well as some other technology that we invented using computer controls and other things to give the plant exactly what it needs and only what it needs so there's no waste whatsoever.
KAYE: So, when you say hydroponics, does that mean it grows in water?
LIOTTA: That's correct.
KAYE: You brought some here. Tell me what are we looking at here because it really looks fresh to me. It doesn't look what I might buy in other places.
LIOTTA: What you see here is our salad mix that we provide. It has five different types of lettuce varieties in it. We've selected those varieties based upon taste and color and we've sampled this with various chefs in the Atlanta area and we've sort of honed in on just a really well-tasting salad.
KAYE: So does this take locally grown to the next step? I mean, is this similar to that?
LIOTTA: Well, this is the epitome of locally grown in that we actually grow it in the city of Atlanta as opposed to 100 miles closer or something like that. So, we really divorced (INAUDIBLE) land from food production, which is the important part here. So, we can bring production of food at the place that it's actually consumed.
KAYE: It sounds great. Is it more expensive? Or how does that work?
LIOTTA: It retails for about the same price as you would expect an organic product in the store shelves.
KAYE: And if it's the epitome of local, it's as fresh as it can possibly be.
LIOTTA: Absolutely. This was actually harvested this morning so it's literally just hours old.
KAYE: Wow, that -- that's pretty good.
LIOTTA: Most of the comparable products you see in the store shelves in Atlanta are at least a week old.
KAYE: So, I'm looking at this and I'm wondering, it's obviously free of pesticides.
LIOTTA: That's correct. Because we control the environment we have no need to put pesticides on it. That saves energy, that saves money but, more importantly, it avoids having pesticides on the food that you consume.
KAYE: Does that make it organic or does it differ from an organic lettuce. LIOTTA: Organic is actually -- has several other characteristics besides pesticides. And, in fact, organic lettuce does have pesticides oftentimes. They're just organic derived. Ours are different than organic in the sense that there is no pesticide.
KAYE: I also know that this -- from what I understand, you can really save on energy the way that you're growing this.
LIOTTA: That's correct.
KAYE: How does that work?
LIOTTA: When you actually look at the total energy footprint of like seed to sale in a customer's hand, there's a lot of different energy inputs in traditional agriculture that we don't have because we're right at the point of consumption, we can avoid a lot transportation costs. We don't have any of the costs associated with producing the pesticides, applying the pesticides and because we don't waste any fertilizer or water, we also save on the energy associated with that.
KAYE: And can you grow this anywhere? I mean, does it matter if you're Alaska or in Florida or Houston or wherever you are?
LIOTTA: That's correct. You can grow it anywhere and we've really divorced the local climate from the crop selection. So we're able to grow it here in Atlanta where traditionally lettuce is -- is tough to grow in the middle of the summer or in a very tough winter we're able to grow without concern for season or for weather.
KAYE: Well, all right. Because it's lunch time, I'm going to just kind of put this to the side and keep it for myself for later.
LIOTTA: Okay. Very good.
KAYE: Thank you, Matt. Appreciate it.
LIOTTA: No problem.
KAYE: A very interesting product. For more about PodPonics, you can check out my Facebook page at Randi Kaye, CNN. And don't forget to tune in tomorrow, same Big I time, same Big I Channel.
Well, it was a big weekend for Republican presidential candidates. Are there three front runners now. We'll check in with our Paul Steinhauser right after this.
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KAYE: Time now for a CNN political update. After a big weekend in Republican presidential politics, it looks like a top tier of candidates is beginning to emerge. Deputy political director Paul Steinhauser standing by with much more on this. So, Paul, is the battle for the GOP nomination essentially now a three-way race?
PAUL STEINHAUSER, DEPUTY POLITICAL DIRECTOR: Yes, a lot of people are saying that, Randi. You know, a lot has changed in the last week. We said a week ago that things could be different, a very different race for the Republican nomination now than it was a couple days ago. It has changed. Tim Pawlenty is out. Rick Perry is in and you have the results of the straw poll in Iowa, going with Michele Bachmann winning.
So, I think, yeah, you're right, we do kind of have a top tier. And I think number one in that tier would be former Massachusetts governor Mitt Romney. He's still the front runner in most of the national polls. He's the overwhelming front-runner right now in New Hampshire. Michele Bachmann part of that tier as well. Listen, she's the front- runner in Iowa and winning the straw poll only cements that status.
And now, let's add Rick Perry to that top tier because he is climbing in the national polls and he's got a pretty formidable organization we think, soon to come on the campaign trail. And that's where he was today and will be today and tomorrow in Iowa. Remember he announced in South Carolina the other day on the day of the straw poll. That maybe upset some people in Iowa. So he went to Iowa yesterday. He's there today. He'll be there tomorrow.
Meanwhile, Mitt Romney had some criticism of Perry and the rest of the field. Let's hear what he said today in New Hampshire.
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MITT ROMNEY, FORMER MASSACHUSETTS GOVERNOR: I respect the other people in this race but I think the only other person that has that kind of extensive private sector experience besides me in the Republican race is Herman Cain and I -- I respect Herman Cain but I also think it's helpful to have had that government experience that I've had.
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STEINHAUSER: There you go, Romney touting his government experience but counting his business world experience. Is that a dig at Rick Perry? I don't know, the campaign says no but maybe it sounds like it to me. Hey, Randi, Perry in Iowa just a few moments ago responded and said, "You know what, I'm thinking Texas is the real economy," so we'll see where this goes from here Randi.
KAYE: All right, we'll keep watching it Paul. Thank you. And I want to let you know Wolf Blitzer is interviewing President Obama one on one. You can see it all on Wolf's show tomorrow, that's the Situation Room. It airs at 5 p.m. Eastern, 2 Pacific, only on CNN.
