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The President And Perry In Iowa; Phone Hack Scandal Flares Again; President Obama Speaks In Iowa; Obama At Rural Economic Forum; Bomb Hoax Suspect Arrested In U.S.; New Orleans Cafe Serves Up Second Helpings And Second Chances For Trouble Teens

Aired August 16, 2011 - 13:00   ET

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


RANDI KAYE, CNN ANCHOR: The straw poll is history. The caucus is still more than five months away and, still, it is all about Iowa. President Obama is just about to open a rural economic forum at Northeast Iowa Community College, We are watching that along with you. We also expect to hear from the governor of Texas and newest Republican presidential contender, Rick Perry.

He's in Dubuque, barely ten miles from the president, making up for lost time on the meet and greet circuit and turning heads with some pretty inflammatory comments. Last night, for instance, Perry warned the fed that, quote, "printing more money ahead of next year's election would be, in his view, almost treasonous." We'll talk much more about that next hour.

For his part, Mr. Obama is midway through an economic bus tour that will wrap up tomorrow in Illinois. He says he'll roll out a detailed plan to boost the economy, create jobs and tame the deficit when Congress returns next month.

Later today, Mr. Obama talks one-on-one with CNN's Wolf Blitzer. You can see that on Wolf's show, that's at 5:00 p.m. Eastern, 2:00 Pacific, only on CNN.

Now to London, where we knew we hadn't heard the last of the phone hacking scandal that doomed a best-selling tabloid and rocked the very pillars of society. Today, the parliamentary committee that grilled Rupert Murdoch and his son, James, last month released letters suggesting that illegal snooping, hacking, eavesdropping, were a lot more common at the now defunct "News of the World" than the Murdochs led on. One such letter is from a reporter named Clive Goodman who was sacked and jailed for hacking the cell phones of the royal family.

Goodman writes to his paper's human resources department, and I quote here, "This decision is inconsistent because, here's a name blacked out, and other members of staff were carrying out the same illegal procedures." He says, "This practice was widely discussed in the daily editorial conference, until explicit reference to it was banned by the editor." Now James Murdoch appears to have some explaining to do.

(BEGIN VIDEO CLIP)

TOM WATSON, MEMBER, BRITISH PARLIAMENT: It's highly likely James Murdoch will be invited back to give evidence. Before that, we want to take a very detailed account of what the former editor, Carole Malone, new the former lawyer, Tom Crone, knew. We've moved from the exposure of the hacking scandal to the second phase which is the very details of the cover-up. And we want to get our facts lined up before we consider bringing James Murdoch back, but every member of the committee is determined to get to the facts, I think it's highly likely he will be with us probably in October.

(END VIDEO CLIP)

KAYE: I want to bring in my colleague, Dan Rivers, from our London bureau. Dan, tell us about this editor who supposedly banned this open discussion of phone hacking in the "News of the World" newsroom. What should we know?

DAN RIVERS, CNN INTERNATIONAL CORRESPONDENT: Well, this is Andy Coulson who is the editor of the newspaper at the time who has always denied he had any knowledge of phone hacking, but nevertheless, stood down as editor when Clive Goodman was convicted for this. He then was forced to resign again from his job as communications director for prime minister David Cameron when this story exploded on to the front pages again.

Now, in this letter that Clive Goodman wrote to the human resources department back in 2007, it clearly -- he clearly says, Clive Goodman, that the practice of phone hacking was widely discussed in the daily editorial conference until explicit reference to it was banned by the editor, Andy Coulson. So, this is a real sort of smoking gun letter, if you like, from Clive Goodman implicating Andy Coulson at the time as having known about phone hacking, saying it was widely discussed and then saying Andy Coulson told everyone not to talk about it in the morning meetings.

KAYE: So Dan, what if either Rupert Murdoch or James Murdoch did give false testimony when they answered parliament's questions, what, if anything, can parliament do?

RIVERS: Well, there is no kind of specific punishment that Parliament can bring against James or Rupert Murdoch if they believe they have been misled. They could hold them, you know, in contempt of parliament, that doesn't really attract any practical punishment these days. In the old days, they might have been sort of locked in the tower or something. These days, it's more of a humiliation, if you like, a very public humiliation is their biggest sanction.

But what is possible is that where parliament leads on this, the police may well follow. There is currently a police investigation ongoing involving 60 detectives who are looking into this. Now, if parliament comes up with evidence that shows that James Murdoch knew of criminal activities at the "News of the World" then perhaps the police will consider that and may possibly bring charges. It's not come to that yet. News international and James Murdoch are denying any wrongdoing in all this, but certainly it's not been a good day for them and this opens up the prospect that James Murdoch will be asked to come back again before politicians to be grilled once again and asked why he was inconsistent with his evidence before. KAYE: All right, Dan, we'll to leave it there because President Obama is speaking now in Iowa. Let's take a listen.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Thank you. Thank you so much. Thank you so much. Well, it is wonderful to be back in Iowa and thank you for arranging perfect weather these last couple of days. I have just been having a great time. I want to, first of all, make just a few acknowledgments. Richard Avenarius, who is the mayor of Piasta (ph), please -- where are you, Mr. Mayor? Well, he was here. Give him a round of applause anyway.

This person I know is here and I want to thank Northeast Iowa Community college for hosting us, Dr. LeeAnn Wi (ph) is here, interim president. I've got a number of members of my cabinet who are here, all of them do outstanding work day in, day out, so I couldn't be prouder of them.

First of all, this guy, you should be a little familiar with because he used to be the governor of this great state, secretary of agriculture, Tom Vilsack; secretary of the interior, Ken Salazar; secretary of transportation, Ray LaHood; secretary of housing and urban development, Sean Donovan; and the small business administrator, Karen Mills.

Well, this is an outstanding crowd and I don't want to stand in the way of a lot of good work that's going to be done, so I'm going to just make some brief remarks at the top. We've got small business owners here, we have farmers, we have ranchers, public servants, clean energy entrepreneurs, and community organizations from all across rural America. And I'm here because I want to hear from you and my cabinet wants to hear from you. There are two things that I know for sure. America is going to come back from this recession stronger than before, that I'm convinced of, I believe that.

And I'm also convinced that comeback isn't going to be driven by Washington. It's going to be -- it is going to be driven by folks here in Iowa, it's going to begin in the classrooms of community colleges like this one, it's going to start --- it's going to start on the ranch lands and farms of the Midwest, in the workshops of basement inventors, in the storefronts of small business owners, and that's why I'm here today.

Obviously, we're going through tough times right now, I don't have to tell you that. Lot of folks are looking for work, even if you have a job, or a small business or a farm, you may be getting by with fewer customers or making do with fewer shifts, or less money in tips, and for a lot of families, in rural parts of the country, these challenges aren't new. For a long time, a decade, maybe longer, you've known what it means to face hardship.

But we also know that while times may be tough, our people are tougher. You know how to make it through a hard season. You know how to look out for each other in the face of drought or tornadoes or disasters. Looking out for each other until we reach a brighter day. And that ethic, that kind of honor and self-discipline and integrity, those are the values that we associate with small towns like this one. Those are the values that built America. And while we've taken some hits, this country still has the best workers, the greatest farms, the top scientists and universities, the most successful businesses and entrepreneurs in the world.

So, as I have been saying over the last couple days, there's nothing wrong with this country, we'll get through this moment of challenge. The only question is if as a nation, we're going to do what it takes to grow this economy and put people back to work right now. And can we get our politics to match up with the decency of our people.

The question is if we're going to harness the potential to create jobs and opportunities that exist here in Iowa and all across America, we know what's possible if we're willing to fight for our future and to put aside the politics of the short term and try to get something done. Already, this administration has helped nearly 10,000 rural businesses and 35,000 small and medium sized farms and ranches to get the financing that they need, that's already happened. And that means a restaurant owner can bust down a wall and set up some more tables, it means a family farm can buy a new piece of equipment to get more product to market, and that puts people to work today.

Now, just as the interstate highways knitted the country together 50 years ago, we've also got to do some new things to meet the challenges of the 21st century. We need to expand the reach of broadband, high-speed internet, to seven million more people and hundreds of thousands of businesses in rural communities. And by taking that step, it's making it possible for folks to take classes and train for new jobs online. It's helping people sell goods not just down the street, but across the country and around the world. We have invested in clean energy like advanced biofuels so that we're moving from an economy that runs on foreign oil to one that runs on home-grown American energy. That's a whole new industry that's taking root here in Iowa and across rural America.

But the rural economy is still not as strong as it could be, and that's why I created a rural council to look for ways to promote jobs and opportunity right now. And this council has come up with a number of proposals, and we're not wasting time in taking up these proposals, we want to put them to work right now.

So today, I'm announcing that we're ramping up our efforts to get capital to small businesses in rural areas. We're doubling the commitment we've already made through key small business lending programs. We're going to make it easier for people in rural areas looking for work to find out about companies that are hiring. We're going to do more to speed the development of next generation biofuels, and we're going to promote renewable energy and conservation. We're going to help smaller local hospitals in communities like this one to recruit doctors and the nurses that they need. And those are just some of the things that we're already announcing today, the reason we brought you all together is because I'm looking forward to hearing from you about what else we can do to jump-start the economy here in rural America.

We want to leave no stone unturned when it comes to strengthening this economy, and we're going to be able to do a lot of stuff administratively. All the proposals we're making today didn't require new laws, it just means that we're doing things smarter, we're eliminating duplication, we're allocating resources to places that we know are really making a difference.

But we could do even more if Congress is willing to get in the game. There are bipartisan ideas, common sense ideas, that have traditionally been supported by Democrats and Republicans that will put more money in your pockets, that will put our people to work, that will allow us to deal with the legacy of debt that hangs over our economy. I want to cut the payroll tax again to help families make ends meet, that's meant an extra $1,000 in the pockets of typical American families. That means more customers for your business, more buyers of your products.

I want to pass a road construction bill to put tens of thousands of people to work all across America. We've got young people returning from Iraq and Afghanistan with incredible skills, 25 year olds who've led platoons, 26 year olds handling equipment that costs hundreds of millions of dollars. Well, let's connect them to businesses that can use their talents right now. We should pass trade deals that will level the playing field for American companies and no folks benefit more than rural Americans when it comes to our trade, and that's the reason that our agricultural sector is doing incredibly well. And that has spillover effects, ripple effects, throughout the economy here.

But it also benefits manufacturing, and we've got folks in America driving Kias and Hyundais. I want to see folks in Korea driving fords and Chryslers and Chevys. I want to sell goods all over the world that are stamped with three words, made in America. And all of these proposals -- all of these proposals will make a difference for rural communities. The only thing that is holding us back is our politics. The only thing that's preventing us from passing the bills I just mentioned is the refusal of a faction in Congress to put country ahead of party. And that has to stop. Our economy cannot afford it. Our economy can't afford it.

So I don't care whether you're a Democrat, a Republican, an independent, if you're not registered with any party. I want to enlist your help. I need your help sending a message to Congress that it's time to put the politics aside and get something done.

The folks here in Iowa do the right thing. I've been traveling through these small towns and talking to folks, sitting down at diners. And you listen to people, they take such pride doing the right thing, taking care of their families, working hard, saving for the future, living within their means, giving back to their communities. You do your part. You meet your obligations. Well, it's time Washington acted as responsibly as you do every single day. It's past time.

We've got a lot of work to do and the only way it will get done is if Democrats and Republicans put country ahead of party and put the next generation ahead of the next election. And that's what I'm fighting for. That's why I'm out here visiting communities, like this one, and Decora and small towns in Minnesota and Illinois. I'm convinced. I've seen it. When we come together, there's no stopping this country. And there is no stopping us.

We can create opportunities for training and education and good careers in rural America so young people don't feel like they've got to leave their hometowns to find work. We can strengthen the middle class, restore that sense of economic security that's been missing for a lot of people for way too long. We can push through this period of economic hardship and we can get to a better place. That's why we're here together. That's what this forum's all about.

So I appreciate all of your participation. I expect great ideas coming out of these breakout sessions. I'm going to join a couple of them. Let's get to work. Thank you very much. Thank you.

RANDI KAYE, CNN ANCHOR: You have been listening to the president speaking there, just midway through his economic bus tour that we've been following. Speaking quite a bit about helping to create jobs, passing a road construction bill, putting people back to work, passing trade deals, sending a message to Congress to set aside politics, put the next generation ahead of the next election. Just some of the president's comments there in Iowa.

Now take a look at this. Remember this scene? For 10 hours, Australia held its breath as police tried to free a teenage girl from what they thought was a live bomb strapped to her neck. It was a bizarre story involving a break-in and a ransom note. Now an arrest has been made. And guess where? Right here in the U.S. We'll have that for you next.

(COMMERCIAL BREAK)

KAYE: It is a story that captivated the world. And, today, a new twist. Remember this? An 18-year-old Australian girl is at home studying for final exams when a stranger breaks in, straps what she believes is a bomb to her neck, and leaves a note demanding money. He flees and for the next 10 hours Madeleine Pulver's friends and family keep vigil in a wealthy Sidney suburb as bomb technicians remove what turns out to be a fake device. That was almost two weeks ago.

Well, today, these are the mug shots of the man police say is responsible. And, get this. He was arrested, not in Australia where this all happened, but here in the U.S. Fifty-year-old Paul Douglas Peters was taken into custody by an FBI SWAT team at his ex-wife's home outside Louisville, Kentucky, yesterday. And from what we know, he's a lawyer, a businessman and an Australian citizen, but police are still trying to figure out exactly what kind of connection he has to the Pulver family.

(BEGIN VIDEO CLIP)

DAVE HUDSON, NEW SOUTH WALES ASST. POLICE COMMISSIONER: There are some links between the two, between the suspect and the family. However, no direct links. And that's still a matter of investigation.

(END VIDEO CLIP) KAYE: Pulver's family said today they're extremely relieved about the arrest.

(BEGIN VIDEO CLIP)

BILL PULVER, FATHER OF BOMB HOAX VICTIM: These past two weeks have been a very difficult time for us and we are hopeful that this development marks the beginning of the end of this traumatic ordeal for our family.

(END VIDEO CLIP)

KAYE: But, of course, it's not over yet. Paul Douglas Peters just appeared in court in Louisville. Susan Candiotti joins us live from there now.

So, Susan, first tell us what happened in court today.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Well, it wasn't much, but the U.S. magistrate read what's a provisional arrest warrant to Mr. Peters and told him that Australia now has 60 days to formally file papers asking for his extradition. And so that's when they'll next be in court.

Randi.

KAYE: And what was he like in court? What was his demeanor like?

CANDIOTTI: Well, you know, he seemed very attentive as to what was going on. He entered the court wearing shackles on his legs and handcuffs, when he came into court and again when he left court. He listened very closely to what was said. Only briefly had to acknowledge that he understood what was going on. And after that he was represented by a lawyer. So, he didn't seem frightened, but he certainly seemed concerned and was attentive as to what was going on.

Also in court was his ex-wife. Now, she was sobbing as she left the courtroom and didn't say anything to reporters.

KAYE: We said that he's a lawyer, he's a businessman. Is there anything else about his background or any explanation as to how he knew the family or why this might have occurred?

CANDIOTTI: Well, as you heard police say, they're looking at that. But what's intriguing is the e-mail address that police say that he used that was attached to that alleged extortion note. And the e- mail address is the name of a character in a James Clavel (ph) novel that was set in Asia. This character was known for using any kind of means, like extortion and violence, to stamp out his rivals.

So what's interesting to note is that, as you said, the suspect in this case is an investment banker who did business in Asia. So is Mr. Pulver in Australia, the father of the teenager that was targeted in this alleged extortion attempt. So they're looking for -- there's some tenuous connections there and they're looking to see if they go any deeper. KAYE: How did police track him down, Susan, just quickly?

CANDIOTTI: Well, it's an amazing story. They looked at the Internet address that he used, the e-mail address, traced it to some computers in Australia, and then looked to see on surveillance video who was using those computers. Traced that to a car. The car gave them some possible names. The names led them, in essence, to a man who fit the description of what the teenager had mentioned. Traced that man to Kentucky. And, in turn, that man had wired some money to a woman in Kentucky who turned out to be his ex-wife. They went to the house and there he was in the backyard. The FBI set up a SWAT team and arrested him yesterday.

KAYE: Susan Candiotti in Kentucky. A fascinating turn of events in this one. We'll keep following it, Susan. Thank you.

Well, when you hear the term "flash mob," you may think of this. Large or small groups gathering through social media to simultaneously break into silly and harmless song and dance. But the innocent fade, just eight years old, is now becoming known for a much darker side. People are using technology to plan group crimes. In recent weeks, teens in Philadelphia gathered together and assaulted residents. And just two days ago, more than a dozen teens robbed a Maryland 7-Eleven -- you're watching it there -- all at the same time.

The Montgomery County Police, however, are using technology to fight back. They posted this footage of the crime online so the community could help them find the teens. So, take a good look there. Earlier today, CNN's Kyra Phillips asked Captain Paul Starks of the Montgomery County Sheriff's Department how his search was going.

(BEGIN VIDEO CLIP)

CAPT. PAUL STARKS, MONTGOMERY CO. POLICE (via telephone): Quality of life here in Montgomery County is very good. And evidence of that is, like I said, we're getting a lot of response from sources in the community who have seen this video, who are concerned and are calling police with tips relating to the identities of the individuals involved in this crime. If you look at the tape, some of the suspects are laughing and smiling. And I can assure you, we're taking this crime very seriously.

(END VIDEO CLIP)

KAYE: And so there you have it. They are looking for those teens. You heard the Montgomery County Police trying to find out who they are. If you recognize any of them, if you live in that area, you can certainly help by calling the Montgomery County Sheriff's Department.

Meanwhile, there's a New Orleans restaurant that has more than serving food on its plate. Join us for a visit to Cafe Reconcile where the secret ingredient is hope, just ahead.

And "Money" magazine is out with its list of best places to live, where you can find work.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (voice-over): If you're looking for a job, you should move here. What town cuts the mustard in more ways than one? We'll tell you after the break.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

REYNOLDS WOLF, AMS METEOROLOGIST: What town cuts the mustard in more ways than one? Try Middleton, Wisconsin, home to the National Mustard Museum, where you can see and taste thousands of mustards. Another plus to living here, 17,000 people have jobs in town, and that's impressive since the population is 17,400.

UNIDENTIFIED: The most unique part about Middleton is the camaraderie of the community, how people really help each other. They don't have to know each other. They just feel like we're all one big family.

WOLF: Middleton, Wisconsin is number eight on "Money" magazine's list of the best places to live.

(END VIDEO CLIP)

KAYE: We all know New Orleans is known for its cuisine but Ed Lavandera is about to take us to a New Orleans restaurant you probably never heard of. It's called Cafe Reconcile. And what makes it unique is the staff.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice over): Chef Joe is cooking.

JOE SMITH, EXECUTIVE CHEF, CAFE RECONCILE: When the teacher is ready, the pupil will appear.

LAVANDERA: But the ingredients in this kitchen are a heaping side of hope and a dash of reality.

SMITH: That's what a lot of people do, especially in positions to hire. They judge you by your appearance.

LAVANDERA: This is Cafe Reconcile, a ding experience like you've never seen.

SMITH: This is the kitchen of life. We not only train in techniques in the kitchen, but we train in techniques to live life.

LAVANDERA: Cafe Reconcile opened 11 years ago in Central New Orleans.

SISTER MARY LOU SPRECHA, EXEC. DIR., CAFE RECONCILE: Should I sing a little song, about my church, or no?

LAVANDERA: Sister Mary Lou Sprecha is the cafe's heart and soul.

(On camera): What does this place mean to you? I'll start off with that.

SPRECHA: Wow. I can't say it without crying.

LAVANDERA: These are kids on the fringe, you think?

SPRECHA: Oh, yeah. Many of them have experienced violence first-hand, lost somebody to death in their family, murder.

LAVANDERA (voice over): Cafe Reconcile takes teenagers on the brink and prepares them to enter the work force. Hundreds of these graduates now work in some of New Orleans' top restaurants, like inside the Lowes (ph) Hotel. Each class learns to run this kitchen first, but before they get here, they learn life skills in a classroom.

UNIDENTIFIED FEMALE: You don't got no job, you don't got no money --

LAVANDERA: It's about building a foundation.

UNIDENTIFIED MALE: You think before you speak. That's what we're talking about, OK?

LAVANDERA: Every morning starts with a prayer, a chance to talk through frustration and on some mornings, a time to talk about a friend that was murdered. Sister Mary Lou consoles the young woman.

SPRECHA: What happened?

UNIDENTIFIED FEMALE: Shot in the face, in the chest.

SPRECHA: I'm so sad. I'm going to put my hands on you and I'm going to pray and pray and pray.

LAVANDERA (on camera): A white Catholic nun from Iowa comes in here, into one of the toughest neighborhoods in New Orleans, and connects with these kids.

SPRECHA: She's crazy.

LAVANDERA (voice over): It's become a hugely popular lunch spot. Before Leonard Alvis entered the program, he had been in and out of jail five times for drug possession.

(on camera): Where do you think you would be if you weren't going through this program?

LEONARD ALVIS, CAFE RECONCILE STUDENT: I would be somewhere in jail because I was really a wreck. I was a real wreck.

LAVANDERA (voice over): Cafe Reconcile is a safe place for these young students but life outside this kitchen isn't safe. Two months ago, Sister Mary Lou got a phone call that made her question whether she could go on.

SPRECHA: It was horrible. I threw up my arms, said I'm done.

(END VIDEOTAPE)

LAVANDERA: And Randi, there's a second part to this story. Tomorrow, we'll delve deeper into what it was that made Sister Mary Lou Sprecha want to walk away, the very moving story. And, also, the reason why you can't really judge a book by its cover. One of the kids at this school will blow you away. It's the reason Sister Mary Lou keeps coming back.

KAYE: I'm so impressed by Sister Mary Lou and those kids. That's the kind of story that just makes you feel so good inside. You say this cafe is pretty popular, huh?

LAVANDERA: It really is. On their busiest days, they can serve lunch up to 200 people. It's amazing when you think about this. They've got a small staff of about 10 people. They've got a $1 million budget. But it's the kids that do the work. And remember, this is a 12-week program. This restaurant constantly turns over its staff so all of these kids are retrained, a new group of kids comes in. And as the Chef Joe told me, find any other restaurant in America that basically turns its staff over every 10 weeks or so, and ask me if they're still in business in a few months.

KAYE: Did you get a chance to try the food?

LAVANDERA: Oh, we did. If you go to CNN.com on our blog, we did a whole bunch of extra web stuff there. You can watch the feast that we delved into pretty good. It was a great way to end that story.

KAYE: I'm sure. I'm sure. That's the kind of story shoot you like. Ed, thank you so much. We look forward to part two of your report coming up tomorrow right here on CNN.

A teenaged girl dies suddenly after swimming in a river. We'll tell you what killed her and what her mother hopes others can learn from it.

(COMMERCIAL BREAK)

KAYE: Time right now, 37 minutes past the hour, let's check the latest headlines and other news you may have missed.

We just heard from President Obama, who was in day two of his three-day Midwest bus tour focusing on the economy. Today he's in a small Iowa town for a talk with farmers, small business owners and rural organizations.

In a speech seen here on CNN just moments ago, the president said he's doubling his commitment to get more people working through small business lending programs. CNN's Wolf Blitzer interviews the president today on "THE SITUATION ROOM" that starts at 5:00 p.m. Eastern. Don't miss that one.

One of the Republicans who wants President Obama's job also is in Iowa today. This is Governor Rick Perry speaking in Iowa with a group of people there, sitting at the table in a very intense conversation, it appears. He's already just days into his campaign. He's already generating controversy. He warned Federal Reserve Chairman Ben Bernanke against using a strategy called quantitative easing to stimulate the economy. He suggested if Bernanke were to institute that strategy and start printing money, it would be quote almost treacherous or treasonous.

A Texas Rangers baseball fan who fell to his death last month will be immortalized with a statue. The Rangers say a full sized bronze statue will depict Shannon Stone and his six-year-old son, Cooper. Stone fell over a railing while trying to catch a ball for his son. The Rangers expect to have the statue up in their ballpark in time for opening day next year.

A self-styled vampire is in jail for allegedly breaking into a stranger's apartment and biting her on the neck. The 19-year-old Lyle Monroe Bensley is charged with burglary with intent to commit assault. Police in Galveston, Texas say Bensley's would-be victim managed to get away and suffered only minor injuries. They say when he was taken into custody, he told them he was a 500-year-old vampire who needed to feed. His bond is set at $40,000. He has been placed on mental health hold.

Friends, family members and classmates are mourning the sudden death of a 16-year-old Florida girl. Doctors say Courtney Nash was the victim of a brain parasite that apparently entered her nose while swimming in a Florida river, at a spot her family had visited for years. Experts say the warm, stagnant fresh water there was a perfect breeding ground for the parasite. The girl's mother hopes her family's ordeal will be a warning for others.

(BEGIN VIDEO CLIP)

PJ NASH-RYDER, MOTHER OF COURTNEY NASH: If we can save other people's lives, and they don't have to go through what I went through, I think this would just be a blessing in disguise.

EC

KAYE: We'll talk more with Courtney Nash's mom in the next hour of CNN NEWSROOM

Up next, yoga breaks, exercise classes and a healthy fresh diet. Sounds like an experience you would get at a spa, right? Well, how about this, how about an elementary school. Dr. Sanjay Gupta will explain in just 90 seconds.

(COMMERCIAL BREAK)

KAYE: Obesity in children is among the most significant health problems in the U.S. The startling reality is this: According to the CDC, childhood obesity affects 17 percent of all children and teens. That is triple the rate from just 30 years ago. A number of schools are taking the initiative to teach their students very some important lessons that could save their lives. Here's Chief Medical Correspondent Doctor Sanjay Gupta.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Randi, they say if you can get to age 50 without any risk factors for heart disease, you have virtually zero chance of ever having a heart attack. That's the good news. But trouble does start early. In fact, the numbers are pretty shocking. About one in five kids isn't just overweight, but obese. You have heard these terrible numbers. There are best practices out there. We found a school in Illinois where they're doing everything they can to turn that around.

(BEGIN VIDEOTAPE)

GUPTA (voice over): Northeast Elementary School in Danville, Illinois, the kids here eat healthy foods.

UNIDENTIFIED MALE: We had chicken sandwich and apples, yogurt.

UNIDENTIFIED FEMALE: Fruit and juice.

GUPTA: When she got hired, the school board told the Principal McIntire, make health a priority.

CHERYL MCINTIRE, PRINCIPAL, NORTHEAST ELEMENTARY MAGNET SCHOOL: We had lots of fried food, we had a lot of processed food. Now nothing is fried. We have to have fish several times a month. We have fresh fruit and vegetables at every lunch.

GUPTA: There are also 30-minute physical education classes every single day. Kids take yoga breaks during class. The annual fund- raising event that used to be a bake sale is now a one mile walk. All these changes made northeast the first elementary school in the country to earn a gold award from the nonprofit group Alliance for a Healthier Generation, co-founded by the Clinton foundation. The changes at school are changing habits at home as well.

MCINTIRE: They're going home and talking to their parents about the new things that they have tried and tasted at school, and encouraging their parents to buy it at home.

GUPTA (On camera): Because you said these students are sort of a mirror of the community at large.

MCINTIRE: They are. The word has gotten out that this is what we have to offer here and parents have come to us wanting that for their children.

GUPTA: Heart disease is America's number one killer. The risks start right here, with children. Northeast Elementary is one of a growing number of schools fighting back and pointing the way toward a healthier future.

(END VIDEOTAPE)

GUPTA: I want to add this as well, Randi, when we talked for this documentary, "The Last Heart Attack," Mr. Clinton was very candid about his own history of heart disease. And how his doctors missed it when he was in the White House despite receiving executive-level health care. But also, how he has completely reversed now his own heart problems. So I think there are some real lessons in there for everyone, Randi.

KAYE: Great lessons. Thank you. Certainly, Sanjay. Thank you.

Be sure to tune in to CNN this weekend. Dr. Sanjay Gupta reports, "The Last Heart Attack" this Sunday night at 8:00 Eastern. Sanjay talks to doctors on the cutting edge of heart disease prevention, including a former surgeon who developed a radical diet he says can make anyone heart attack-proof in just one month.

Coming up, bloodshed in Syria as heavy shelling and machine gunfire is reported in a key port city. Residents say Palestinian refugees are caught in the middle of President Assad's crackdown. A live report right after this short break.

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KAYE: Heavy shelling is reported in the Syrian port city of Latakia today. It is the latest city to be targeted by President Assad's crackdown against anti-government protesters. Reuters reports at least 34 people in Latakia have been killed over the past four days. Residents say they have come under heavy tank shelling and machine gun and sniper fire today.

Much of the shelling has occurred in a part of the city housing a Palestinian refugee camp. Witnesses say scores of Palestinians have fled the camp to escape the fighting.

CNN's Arwa Damon is monitoring the situation from Beirut. She joins us right now. Arwa, you have spoken to some of the residents of Latakia today. What are they saying about conditions there?

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, Randi, they are telling us that around 70 percent of the residents have evacuated or at least tried to flee. However, there have been a number of disturbing reports where those families fleeing are said to have come under fire by Syrian security forces at checkpoints. We have also received reports from the activist residents of the area that hundreds of families ended up detained or held at a stadium. Reportedly their cell phones and I.D.'s taken off of them, all of which is painting an increasingly disturbing picture.

Activists were saying they were trying to move around to ascertain the extent of the damage, the extent of the casualties, but still struggling because Syrian security forces are quite simply fanned out everywhere.

We are also hearing various reports that again, mass detentions are taking place as well. This particular neighborhood was really the epicenter of anti-government demonstrations in Latakia, and a lot of what we have been seeing (AUDIO GAP) deliberately trying to target these areas where demonstrators were taking to the streets.

KAYE: Arwa Damon in Beirut, following all of the events in Syria for us. Arwa, thank you.

Time right now, about ten minutes before the hour. Let's take a look at some other top international stories that we're following along with you.

U.S. officials say forces loyal to Libyan leader Moammar Gadhafi fired a scud missile at rebel forces on Sunday. The missile landed in the desert, causing no injuries. It is believed to be the first time Libya has fired a scud in years. A NATO official called the firing a desperation move.

Al Qaeda's new leader is calling on his followers to target Americans in revenge for the death of Osama bin Laden. The appeal by Ayman Al-Zawahri was made in a new video released on jihadist Web sites three weeks before the tenth anniversary of the 9/11 attacks. CNN has not verified the authenticity of that video.

The leaders of France and Germany held talks today in a bid to help the battered euro and in turn global markets. French president Nicolas Sarkozy and German chancellor Angela Merkel sat down together in Paris. They proposed that all countries using the euro should have mandatory balanced budgets and better coordination of their economies.

Coming up, now the cheapest light bulb is made from nothing more than a plastic bottle, bleach and water. Yes, you have to see it to believe it. So, don't go anywhere.

(COMMERCIAL BREAK)

KAYE: Everyone is gearing up for the 2012 election. But one former candidate is looking back at her 2010 campaign. Time now for CNN's political update.

Kate Bolduan standing by at the political desk. Hi there, Kate. Christine O'Donnell is who we're surfaced about. She has surfaced again!

KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: She certainly has, Randi. Well, Christine O'Donnell, I'm sure you remember her, all you political junkies. She's already told America that she is not a witch. Remember this in the now infamous campaign commercial when she was running for Delaware's Senate seat.

Well, the ad was response, as you'll remember, to her past comments that she said she had kind of dabbled in witchcraft. Well, now, O'Donnell also says the ad itself was a mistake. In an interview with ABC to promote her new book, of course, called "Trouble maker," O'Donnell says that she hated it and said in the book, she wrote that she came away from the ad, quote, "thinking I never should have even read that stupid line."

She's now blaming the ad for hurting her on the campaign trail. I'm sure not the last we've heard from Christine O'Donnell. And in other political ticker news, Newt Gingrich, the current House speaker and presidential Republican candidate. He said today that that committee set up by the debt ceiling agreement to find more than $1 trillion in federal spending cuts - well, the committee, he says, should be cut itself. Gingrich making a speech at The Heritage Foundation today and said, quote, "why is it super other than they've aggravated power into 12 people who will spend the next few months fighting?". Very good question, Mr. Gingrich.

Gingrich called the idea of the super committee and its task absurd, he said. And he also said he didn't expect anything more to come from it than more political impasse. The committee has until Thanksgiving to report back to Congress.

KAYE: And then we get to do all of this all over again, and you get to move back into Capitol Hill where you were for so long.

BOLDUAN: I miss my sleeping back so much. Yes.

KAYE: We need to get you a big comfy office there. All right. Kate, appreciate it. Thank you.

BOLDUAN: Thanks, Randi.

KAYE: And one more political note. I want to let you know that Wolf Blitzer is interviewing President Obama one-on-one. And you can see it on Wolf's show today. "THE SITUATION ROOM" airs at 5:00 p.m. Eastern; that is 2:00 Pacific only on CNN.

Coming up, how the world's cheapest light bulb is made from nothing more than a plastic bottle, bleach and some water. Keep it here.

(COMMERCIAL BREAK)

KAYE: A light for every poor family in the Philippines. Sounds impossible, right? Some homes can't afford electricity, and others connected to an electrical grid.

But students from the Massachusetts Institute of Technology had the bright idea to create light bulbs from nothing more than a one- liter plastic bottle, water and bleach. It is really that simple, apparently. The water refracts the sun's light across the home, and the bleach keeps it clear from algae.

According to Reuters, the device can be installed into a metal roof in less than an hour, lasts up to five years, and is equivalent to a 60-watt bulb. Reuters also reports that 10,000 have been installed across poor towns in the Philippines. The light, of course, only works when the sun is out but raises the standard of living for those who need it.

And for more about MIT's light bulb, you can visit my Facebook page at Facebook.com/RandiKayeCNN. And don't forget to tune in tomorrow, same "Big I" time, same "Big I" channel.