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Obama's Major Speech on Jobs; GOP Campaign Heads East; Perry Responds to Obama "Advice"; Obama: "Cut Perry Some Slack"; Suspect Had Insurance on Missing Woman; Women's Hormones for Hitler; Joplin Tornado Victims Back in School; Wisconsin Recall Elections Over; Tea Party Activist Confronts Obama; "Real Housewives" Death; U.S. Birth Rate Falling; Police: School Violence Plot Foiled

Aired August 17, 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 is the top of the hour and we begin with jobs, yours and the President's. Barack Obama needs to put more Americans to work if he wants to stay in the White House a second term. And this morning we're learning the White House is planning a major speech to announce such plans.

Brianna Keilar is with the Obama bus tour in Illinois. So, what do you know about the speech Brianna?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Well, Kyra, the president, of course, under major pressure to do something on jobs. That's why he's certainly out here talking about the jobs proposals he's already put out there had here in the Midwest.

But this is being billed by a senior administration official as a major speech that he will give after Congress returns shortly after Labor Day in September, and we've learn from this official that it would be a mix of tax cuts, certainly among some other items, infrastructure spending and also it would address the problem of the long-term unemployed.

Now, the thing is, Kyra, when you look at those items, either Republicans are flat-out opposed to some of them or they have serious issues with the ways in which Democrats in the White House have so far proposed in executing those plans.

In the meantime, we're about 2-1/2 hours away from the president expected here, in case you were wondering, it is a hybrid corn seed processing and storage facility. He'll be addressing folks here in a town hall meeting, one of two today.

And if the events, Kyra, that we've seen in the last couple of days are any indication it, it will be a largely friendly crowd. Although I have to tell you I have spoken with some people who are actually lining up to go inside.

And some of them certainly did not vote for President Obama, do not expect to vote for him again in the next presidential election.

PHILLIPS: All right, Brianna Keilar. We're following it and we will talk to you again coming up in a little bit. Meanwhile, the Republican campaign trail heads east. Just a few days after the Iowa straw poll, Mitt Romney and Rick Perry leave the Midwest and they stump in New Hampshire. Romney is a solid front- runner in the Republican field, but just a few days into the campaign, Perry is stealing the spotlight with fiery comments and energized crowds.

Now Rick Perry started his day in Bedford, New Hampshire. Like a poker player, Perry saw the president and raised him. The candidate first responded to the president's suggestion that he be careful about his comments on the campaign trail.

(BEGIN VIDEO CLIP)

GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: The president said I needed to watch what I say. I just want to respond back, if I may. Mr. President, actions speak louder than words. My actions as governor are helping create jobs in this country.

(END VIDEO CLIP)

PHILLIPS: Now Mark Preston was at Perry's event and says that the candidate also took on the Fed.

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Yes, Kyra, they have Rick Perry, the Texas governor here in New Hampshire not backing down from his comments about Ben Bernanke. In fact, he later said that he was lectured by President Obama.

Rick Perry here at the politics and eggs breakfast, a time-honored tradition for presidential candidates here in New Hampshire. Perry talked about his business record, about job creation down in Texas.

He said he would be a pro-business president in what was clear today is that Rick Perry is going to take President Obama head-on in this presidential campaign. Kyra --

PHILLIPS: President Obama is shrugging off comments by Rick Perry. Yesterday, the president sat down for a one-on-one interview with our Wolf Blitzer.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: Mr. Perry just got into the presidential race, and I think that everybody who runs for president probably takes them a little bit of time before they start realizing that this isn't like running for governor or running for senator or running for Congress. You've got to be a little more careful about what you say, but I'll cut him some slack. He's only been at it for a few days now.

(END VIDEO CLIP)

PHILLIPS: Throughout the hour, we're going to hear more of Wolf Blitzer's interview with the president. In just about 15 minutes, President Obama is going to talk jobs and the economy as we heard from our Brianna Keilar. We will take that as well.

Some pretty interesting new information in the case of that American woman missing in Aruba. The prime suspect in her disappearance, Gary Giordano, apparently took out travel insurance on her. Martin Savidge joins us live once again with the very latest. Martin --

MARTIN SAVIDGE, CNN CORRESPONDENT: Good morning, Kyra. This is something investigators are looking into very, very carefully because it would come down to motivation possibly, if their impact has been a crime has taken place.

That is the question that Gary Giordano may have taken out an insurance policy. Was it a travel insurance policy or something more like a life insurance policy? Authorities at this point are not saying.

But if he did take out an insurance policy, if there was money that he would gain as a result of something perhaps happening to her then you could see why authorities down here in Aruba would look at that as possible motivation.

And we're told that may be one of the reasons why the extension for detention of Gary Giordano was granted by a judge on the island. So they're it look at that.

Something else, reports of a bloody palm print that was found out behind the Nanke Country Club, which is the area part of the beach specifically where Gary Giordano says that he and Robyn where on the day that she vanished while they were snorkeling.

Now I have to warn you, of course, there is a lot of fishing that goes on out there. Fishing can be a bloody sport at times. So here are the three things you're going to want to know is, was it her blood type? Is it human blood?

And of course is it a palm print that matches Gary Giordano? All of that we are told is under investigation. So these are very interesting developments. The other thing, Kyra, a major search is being planned involving members of the Dutch military, involving police and may also involve volunteers.

They're going to search a large area, a very rugged, difficult terrain at the southern part of the island. All of this trying to keep in it mind that two hours between when Robyn Gardner was last seen and when Gary Giordano made the 911 call. A lot going on down here today, Kyra.

PHILLIPS: OK, Martin Savidge there live in Aruba. Martin, thanks.

Here is a pretty wild story that we've been seeing on the web. A new book from a British professor actually suggested there was a plan in place to make Adolf Hitler more feminine.

Zain Verjee told me about this this morning. I was, like, OK, this could be very interesting. Tell me more about this plan that is now been revealed. Zain, of course, you would be one to find an obscure story like this.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: You know, I love it, Kyra, the plan was to take away his mustache and give him breast. That was the strategy from a British plot that they cooked up.

The idea was essentially and seriously to lace his food with estrogen. That is a female sex hormone and the idea was if they did that, it would make him less aggressive. Also, estrogen apparently is tasteless and Hitler had food tasters as well for fear that he may be poisoned.

So they thought that if they use estrogen no one would be able to figure out that there was anything laced in the food. The scientist and author, Brian Ford, basically came across this plan when we was looking at documents that were recently declassified as to what the potential strategies beyond military could be against Hitler. So that was it, Kyra, take away the mustache and give him breast.

PHILLIPS: Estrogen or estrogen depending on your accent. Zain Verjee, sophisticated accent there. All right, but there was some other plots they had as well, right? You read a little deeper into this.

VERJEE: Yes. I did dig deep into this. One of the things was to actually pour glue down, to rain glue down, onto Nazi troops to make them stick. That was honestly one strategy.

And the other was to drop poisonous snakes on the Nazis as well. So, you know, if they couldn't kill them, they were going to come up with these different strategies and that's what we've learned, because of these documents that have come to light. Kyra, I thought you'd like that.

PHILLIPS: Yes, very interesting. Zain Verjee, thanks so much.

Well, it it's the first day of school in Joplin, Missouri. We're going to show you how students in the tornado-damaged town are trying to rebound.

Plus, it's not every day that you see a civilian slam the president of the United States to his face. Iowa Tea Party leader Ryan Rhodes joins us to talk about their little chat.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories cross country. This is the first day of school since the devastating earthquake hit Joplin, Missouri, killing 130 people. Joplin high school was among of the many buildings damaged or destroyed so students are attending classes at a middle school and a retrofitted shopping mall.

In Wisconsin, the ballots are in from the last of a series of recall elections and two Democratic state senators will retain their seats beating Republican challengers. The recall was triggered by a fight over collective bargaining rights for state employees earlier this year. In Forney, Texas, 11-year-old Caroline Gonzales is named mayor for a day. She won a Facebook contest. Her first order of business was renaming Main Street to Justin Bieber Way in honor of her favorite pop star.

President Obama set out on his Midwest bus tour to find out what's on people's minds. Well, he definitely got a piece of Ryan Rhodes' mind the other day in Iowa. Take a listen.

(BEGIN VIDEO CLIP)

RYAN RHODES, IOWA TEA PARTY CHAIRMAN: When with you're talking about civility, how is your vice president calling us terrorists?

OBAMA: Sir --

RHODES: I would like to understand that.

OBAMA: I will explain. He did not call you guys --

RHODES: He said we were acting like terrorists.

OBAMA: No, no. What he said was for us to be willing to take the economy to the brink was irresponsible. And it was.

(END VIDEO CLIP)

PHILLIPS: Ryan Rhodes is the founder and chairman of the Iowa Tea Party, joining us live from Des Moines. So, Ryan, did you get what you wanted from the president?

RYAN RHODES, IOWA TEA PARTY CHAIRMAN: Well, I got to ask a question. You know, that does say something about this American process.

PHILLIPS: Well, did he give you the answer that you were looking for? Did it satisfy you?

RHODES: Well, no. I mean, he jumped in to defending and saying, I've gotten called every name in the book. I can tell you this. I've been -- I'm catching up with him on those names in the last days from a few people.

But, you know, we're out here and the fact, is you can't have a debate when one side of the aisle, Harry Reid and whether it's Joe Biden sitting there and listening to people say it and not actually challenging them on it or whether it's people on down the party, he's the leader of that party just the same as he's the president.

And it's time for him to actually lead and not let people use that rhetoric out there. I mean, he spent most of the town hall talking about how unreasonable the other side was. So, I mean, I want to know how you come together on that when that's your general premise and starting point. PHILLIPS: Well, let me ask you, did you find it pretty remarkable, the president obviously realized you were a critic, but he stopped. He looked you in the eye and actually engaged you? Did that in any way change your mind on how you may feel about the president?

RHODES: Well, I have respect for him for doing that, but we are -- we're ideologically opposed, and I think that's pretty apparent. What he wants to do with the country and what I want to do with the country, the direction I want the country to go, are just -- they don't line up in any way, shape or form.

PHILLIPS: Now, you're backing Michele Bachmann, right?

RHODES: Yes, I decided to come out and let people know I was going to vote for Michele Bachmann last week.

PHILLIPS: And what is it that you like about Michele Bachmann, and what do you think about Rick Perry jumping in?

RHODES: Well, for Michele Bachmann, she's honest. I mean, people give her a hard time for a mistake, but she jumped at a chance to say, oops, we've got better things to talk about like the economy and jobs.

When it comes to that, she stood up and said, we have to have a balanced budget and we have to actually get our debt under control because if we don't we're not going to have a whole lot of -- we're not going to have an America left.

As to Rick Perry, you know, I think he's just starting to introduce himself to people so we'll see. I don't know enough to make much of a critique on Rick Perry.

PHILLIPS: Final question, let's just go a little bit further into your exchange with the president before I let you go. I've got a final question for you. This came after your first question to him.

(BEGIN VIDEO CLIP)

RHODES: Balanced budget is reasonable.

OBAMA: He wasn't objecting to the balanced budget amendment. He was objecting to us almost defaulting.

RHODES: Then why doesn't somebody pass a balanced budget amendment. It's simple. We can pass --

OBAMA: It doesn't sound like you're interested in listening.

RHODES: You haven't listened either. You blame it on everybody but yourself.

(END VIDEO CLIP)

PHILLIPS: I'm curious, Ryan, because as we're talking now it's much more calm and it's a civil discussion. But at that moment, it appeared to be possibly a little confrontational and neither of you were able to get your points across and the conversation didn't get to finish, and the president moved on.

Do you think maybe if you would have engaged him differently that the conversation might have lasted a little longer and you guys might have been able to get a little more in depth?

RHODES: Well, no. It's funny because that part of the question was actually me answering the person to my left who asked what the Tea Party stands for.

And then halfway through -- when I turned to the side and was kind of talking to that person is when Obama jumped in -- President Obama jumped in and said that the balanced budget wasn't what he objected to.

So it was almost like a separate conversation getting pulled in, but that -- at that point, you know -- they voted down the balanced budget. OK, for him to go out and say they weren't against the balanced budget is not -- I mean, they can pass that on its merits, in and of itself, and we could debate everything else the next day.

But if they don't want to pass a balanced budget, I just don't know how it can even plan on working to cut this.

PHILLIPS: Ryan Rhodes via Skype out of Des Moines. Thanks, Ryan.

RHODES: Thank you for having me on.

PHILLIPS: You bet. Coming up, the estranged wife of a "Real Housewives of Beverly Hills" star Taylor Armstrong has apparently committed suicide. We'll have more in your showbiz headlines.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: If your commute drives you crazy, this town may be a good fit. Getting to work within this unique city takes less than 15 minutes. Where does less time in the car mean more fun outdoors? We'll tell you after the break.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Where does less time in the car mean more fun outdoors? Hanover, New Hampshire where biking around town is a popular way to go. At the heart of the city is Ivy League College Dartmoth making a typical resident fairly in their 20s. Another plus, the natural beauty of the Vermont border and Connecticut River is wonderful.

UNIDENTIFIED MALE: We have these beautiful surroundings and it's really fun for someone from more of an urban area to come out and explore. Coming in at number six on "Money" magazine's list of best places to live is Hanover, New Hampshire.

(END VIDEO CLIP)

PHILLIPS: President Obama is getting ready to deliver a major speech on the economy and jobs, fittingly just a day after Labor Day.

The speech outlines new initiatives to get Americans working and reduce the nation's debt. Our Wolf Blitzer got to press him on the topic yesterday in his one-on-one interview.

(BEGIN VIDEO CLIP)

WOLF BLITZER, HOST, THE SITUATION ROOM: You've got something much more ambitious in mind for this September. There's been reports you want to create a new Department of Jobs, something along those lines, is that true?

OBAMA: You know, that is not true, but what is true is that I think we missed an opportunity a month ago when we could have dealt with our debt and deficit in a serious, balanced way that would have avoided these huge gyrations in the financial markets, given businesses a lot of confidence that Washington had its fiscal house in order.

And included in that, because of the savings that we'd be getting over the next 10, 20 years, more efforts on the front end to spur job creation and given that Congress failed to act, the grand bargain I was trying to cut with John Boehner didn't happen.

We're going to take one more run at Congress and we're going to say to them, look, here's a comprehensive approach that gets our debt and deficits under control and also accelerates job growth right now.

(END VIDEO CLIP)

PHILLIPS: All right, throughout the hour, we're going to hear more of Wolf Blitzer's interview with the president. Next in about a half hour, President Obama talks about the economy, politics and the state of the American dream in 2011.

All right, we've got a regular feature here called "30- second pitch" where we try to help folks who need jobs find them. This week we're giving it a little twist and trying to give back to our military vets.

We're spotlighting veteran-owned small businesses looking for work. Joining us today from New Orleans where the VA is holding a boot camp for vet entrepreneurs is Greg Simek.

Greg trained in aviation electronics, worked on marine aircraft and served in "Operation Iraqi Freedom." He's now president of True Nutrition Sciences.

Greg, great to see you. I'm curious, how has the transition been for you fighting in a war to running a small business?

GREG SIMEK, PRESIDENT, TRUE NUTRITION SCIENCES: Hi, Kyra. Thanks for having me. You know, there are actually quite a few similarities. I think my biggest takeaway from serving in the war and serving in the military was self-discipline.

It really takes a lot of discipline to really have that big vision and carry through and carry out your own plans through the thick and thin with your own small business.

PHILLIPS: And what made you decide to create True Nutrition Sciences?

SIMEK: Absolutely great question. I think during my time in the Marine Corps I really became entrenched in the fitness and health lifestyle. I really found that exercising and lifting and fitness in general helped me not only physically compete with the challenges of serving in the military, but also psychologically as well.

You feel a lot more energy, a lot more balanced, just a general overall improvement in health and welfare. So after I got out of the Marines, I attended college on the GI bill and during a class we were asked to write a business plan.

I took my interest in health and wellness and wrote a business plan focusing on nutritional supplements, protein being number one. So after college, I decided to take the plunge and invest all of my savings into the True Nutrition Sciences to really create the number one or highest quality protein and other nutritional supplements on the market.

PHILLIPS: Well, when it comes to eating right and being in shape, we know the Marines can do that very well. All right, let's get ready for our 30-second pitch here, if you don't mind. We'll start the clock, Greg. For all the businesses out there that you want to hire you, take it away.

SIMEK: Absolutely, well, this is our protein supplement. I would encourage everyone to check out our web site at truscience.com. That's tru, no "e." We have coupon for 10 percent off every product on the web site. Reviews are incredible. Simple Google search I think will yield phenomenal results. Coupon code is CNN. Again, the web site is truscience.com.

PHILLIPS: All right, Greg Simek, I like the CNN password there. It's trunutritionsciences, we hope you get some business. Keep us updated. Let us know what happens, Greg.

SIMEK: Thank you. Thank you for having me.

PHILLIPS: No problem. Again, we're going to be focusing on vet- owned businesses all week. If you'd like to do a 30-second pitch, e- mail us 30secondpitch@cnn.com. We'll try and help.

A tragic death hits the "Real Housewives of Beverly Hills." And a major retailer tells the "Jersey Shore," we're going to pay you not to wear our clothes.

"Showbiz Tonight" host A.J. Hammer has the details. But first, why don't we start with the "Real Housewives" news.

A.J. HAMMER, HOST, "SHOWBIZ TONIGHT": Yes, really shocking story here, Kyra. Russell Armstrong, the estranged husband of "Real Housewives of Beverly Hills" star Taylor Armstrong was found dead Monday night in an apparent suicide.

I spoke with Russell Armstrong's attorney, Ronald Richards yesterday. He told me that he saw no signs that Armstrong was so acutely depressed. But he did say the reality show was 100 percent responsible for Armstrong's recent difficulties. Watch what he said.

(BEGIN VIDEO CLIP)

RONALD RICHARDS, RUSSELL ARMSTRONG'S FORMER ATTORNEY: The show characterized him as someone that abused his spouse. It highlighted ancient financial negatives in his past and put him in a spotlight that he wasn't coped to deal with.

(END VIDEO CLIP)

HAMMER: And it is understandable how difficult that must be when it's playing out for the whole world to see. The couple did have a very troubled relationship, but while Russell apparently wanted to save the marriage, Taylor filed for divorce exactly a month ago and publicly accused Russell of mental and physical abuse, which the attorney touched on there.

And as he also mentioned, Russell was under severe financial pressure. He declared bankruptcy a few years ago, reportedly owed as much as $10 million. And one of the saddest parts of this is that Russell and taylor have a 5-year-old daughter.

The second season of "The Real Housewives of Beverly Hills" had been scheduled to debut on September 5th, Kyra. That may or may not happen. Producers are apparently in the process of figuring out exactly what to do here. They have to look at whether or not they need to edit the series or perhaps even postpone its launch in a couple of weeks.

PHILLIPS: All right, let's turn to a lighter note here. "Jersey Shore," the crew being offered money not to wear a certain company's clothes. What's that about?

HAMMER: Yes. Lighter indeed. This is fantastic. Abercrombie and Fitch apparently doesn't want to be associated with Mike "the situation" Sorrentino and the rest of the "Jersey Shore" cast. They actually released a statement about this and I will read to you now.

"We are deeply concerned that Mr. Sorrentino's association with our brand could cause significant damage to our image. We have therefore offered a substantial payment to Mike "the situation" Sorrentino and the producers of MTV's "Jersey Shore" to have the character wear an alternative brand. We've also extended this offer to other members of the cast and are urgently awaiting a response."

Now MTV is telling "SHOWBIZ TONIGHT" neither the situation or anybody else from the show is going to be responding to the Abercrombie statement. But Kyra, I believe, I'm pretty sure, this is a first.

PHILLIPS: Of course, as you're talking about the clips we're rolling, they're wearing no clothes practically. We'll see how this all unfolds. A.J., thanks. Your source for everything entertainment, A.J. Hammer "SHOWBIZ TONIGHT" every night on HLN at 11:00 p.m. Eastern.

Our Wolf Blitzer sat down with the president and asked him about the rumors he may create a Department of Jobs. Is it true? "Political Buzz" coming up.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now. Presidential candidate Rick Perry took aim at President Obama's economic policies this morning, saying they're killing jobs. Perry also took a swipe at critics claiming his Texas job creation was luck.

A lightning strike threw a scare into Orlando's Sea World amusement park. No one took a direct hit, but several people went to the hospital to get checked out.

A police panel has found no evidence of London police misconduct in the phone hacking probe. The commission says four former Scotland Yard officials will face no further police inquiry.

"Political Buzz." Your rapid-fire look at the hottest political topics of the day. Three questions, 30 seconds on the clock. And playing today, Democratic strategist Maria Cardona, founder of Citizen Jane Politics Patricia Murphy, and CNN contributor and talk show radio host Dana Loesh.

All right, ladies, first question. President Obama will make a major speech on jobs in September. He told Wolf Blitzer what he won't do.

(BEGIN VIDEO CLIP)

BLITZER: There's been reports you want to create a new department of jobs, something along those lines. Is that true?

OBAMA: You know, that is not true.

(END VIDEO CLIP)

PHILLIPS: Okay, so what should the president do to show the American people he's serious about jobs? Dana?

DANA LOESCH, CNN CONTRIBUTOR: Well, I'm glad at least he's not going to create a department of jobs. Again, as I've always said, I think the government needs to back up. But you don't send a message -- why is he traveling around in this big, giant black hertz-mobile all around the country? It's like -- I read an article last night that compared it to Darth Vader's helmet. It just doesn't -- usually when you go out on a bus, you have political slogans or you have the stars and stripes or the American eagle. It looks very foreboding.

But I would say what I think what the president needs to do is get back to Washington, D.C., quit campaigning on the taxpayers' dime and let's get serious about jobs and let's -

(BUZZER SOUNDS)

LOESCH: (INAUDIBLE) government regulations and let the market breathe!

PHILLIPS: Maria?

MARIA CARDONA, DEMOCRATIC STRATEGIST: I think he needs to continue to do what he's been doing for several weeks now, Kyra, which is focusing on jobs, jobs, jobs. Unfortunately, Republicans since they've taken over Congress have done absolutely zero to try to create American jobs. They've done the opposite in focusing on the debt. And we've had the downgrade debacle.

Americans want jobs. It's the number one issue. President Obama will be talking about proposals that we hope Republicans will join him on because historically, they have enjoyed bipartisan support, like trade agreement. Like patent reform, extending the payroll tax cut. These are all things Congress can do now -

(BUZZER SOUNDS)

CARDONA: -- and President Obama wants to continue to do that.

PHILLIPS: Patricia.

PATRICIA MURPHY, FOUNDER, CITIZEN JANE POLITICS: I have to say, he needs to do something new. He needs to do something more than what Maria is talking about. He needs to come out with a proposal that could pass and that could work. And he needs to look like he cares.

We saw him come out after the S&P downgrade three days later. His attitude was kind of, eh, and he didn't have anything new to say. He needs to say something new, he needs to get aggressive.

PHILLIPS: OK. Question number two, ladies. Texas governor Rick Perry already getting criticized by his fellow Republicans. Take a look at what Rick Santorum told our John King.

We don't have it? all right. Well, then let's -- have you ladies heard actually what he said on John king last night? you did?

LOESCH: Yes. You're not in Texas anymore.

PHILLIPS: There we go! Perfect. OK, excellent. Make sure we're all on board.

So, let me go ahead and throw out the question. Has Rick Perry's rhetoric already gone too far? Maria?

CARDONA: Absolutely it's gone to far, Kyra! And while that kind of disgusting rhetoric, which is exactly what Americans have had it with Washington and their elected leaders, might endear him to the Tea Party faithful, it will do absolutely the opposite in appealing to the all-important independent, sensible, rational mainstream voters and even moderate Republicans, which is what he'll need if he ever wants to make it through a general election. He's gone too far, and I think Americans will see him for what he is.

PHILLIPS: Dana?

LOESCH: Well, I have to correct Maria really quick on how Congress works. Republicans control one-half of one-third of Congress. That's not controlling Congress. As far as Santorum's remarks go, Santorum is the Bill Paxton of the Republican primary. He looks like every other guy out there in a suit. And no offense to Santorum, but he does.

I think if we're going to talk about rhetoric, let's look at some of the rhetoric we've seen post-Tucson, especially in Wisconsin. Let's talk about some of the president's statements. "Bring a gun to a knife fight." We just had a nonunion business owner in Ohio that was shot by a union worker. Maybe they took that statement literally. We can go and look at some of the -

(BUZZER SOUNDS)

LOESCH: -- But at the end of the day, I don't think Perry crossed any lines.

PHILLIPS: Patricia?

MURPHY: Oh, I think he crossed a whole lot of lines for normal Americans, for people who are just listening to things and they want Washington to calm down, they want Washington to start getting something done.

He has not crossed the line, though, for people who are the base Republican voters who I talk to who say they want to see somebody put the fight to Obama. They want somebody who is going to get aggressive with this president, tell them they're going to stop his policies in their tracks. That is something that a lot of these other Republican candidates won't do. Mitt Romney won't do it. We haven't heard a lot of these campaigners get aggressive in the way that Rick Perry has.

(BUZZER SOUNDS)

MURPHY: So, if you're talking to base voters, that's what he needs to say, but for the moderates, for the business community in the Republican party, he has gone a little too far -

(BUZZER SOUNDS) PHILLIPS: Ooh, you got a double buzz on that one!

MURPHY: I know!

(LAUGHTER)

PHILLIPS: Patricia, we've got to school you. There we go, we made up for it.

All right, now, your "Buzzer Beater." 20 seconds each for this one. Take a listen to this.

(BEGIN VIDEO CLIP)

REP. MICHELE BACHMANN (R-MN), PRESIDENTIAL CANDIDATE: Before we get started, let's all say happy birthday to Elvis Presley today! Happy birthday!

(END VIDEO CLIP)

PHILLIPS: OK, unfortunately, she was saying that on the day that he died. So, when you look at her other factual errors, ladies, is this a mistake that maybe Americans are going to not care about. Care about? Patricia?

MURPHY: I don't think anybody except for a small swath of Elvis lovers really care when he died or when he was born.

They are going to care about Michelle Obama - sorry, Michele Bachmann's - credibility. They want to know that she's going to be capable of running the country with she makes gaffe after gaffe after gaffe. It does become a problem. She needs to tighten it up. Her staff needs to tighten it up. This looks like sloppy staff work to me, really. She does need to clean it up.

PHILLIPS: Dana?

LOESCH: Oh, I don't think it's going to matter. At least she didn't say corpsman or acknowledge a Medal of Honor recipient as being alive when in fact they weren't. Again, I agree with what was just said. I don't think a lot of people really pay attention to when Elvis died except for me. I was raised in a family that loved Elvis. It's an obligation.

PHILLIPS: Maria?

CARDONA: I think she lost the Graceland vote. But I'm going to agree with Patricia. This was absolutely sloppy, sloppy staff work. Speaking as a former staffer, these are rare moments that are off the cuff. These things are normally planned.

So, I'm going to give her the benefit of the doubt and say this was God awful sloppy staff work, and if it wasn't, it does continue to drive the narrative that she's just not ready for primetime.

PHILLIPS: All right. Wow, ladies, you all agreed on the final point. OK, well, here's to -- we will celebrate Elvis' birthday on the right date. OK. Thanks, guys.

Now an update to a story we told you about last week. The horrific hit-and-run death of a black man in Mississippi. A white teenager has now been arrested in the case. And CNN's Drew Griffin is joining us with the new developments. Drew?

DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT: Kyra, CNN can now confirm that the death of this black man named James Craig Anderson is by a group of white teenagers in Mississippi. Is being investigated as a federal hate crime. The Heinz County, Mississippi prosecutor tells us he invited federal prosecutors to insist on the investigation of the murder of Anderson and to possibly bring federal charges against some of the other teenagers involved.

This murder sparked controversy and outrage after CNN aired this exclusive and disturbing video. Prosecutors tells us it shows the final act in the beating of a black man. That act is a large pickup truck being used to drive over this wounded man and killing him.

The teenager accused of this crime reportedly called a friend right after this, saying, "I ran that nigger over." that is according to police.

Prosecutors say this started out for a night of partying for seven white teens who decided to end the night by seeking a black person "to mess with," that's a quote. No other reason. The victim chosen at random after being spotted in this Jackson, Mississippi, parking lot. Darrel Dedmon, an 18-year-old, has been charged with the murder. One other person involved is 18-year-old John Rice. He has been charged with a lesser crime, is out on bail. There have been no pleas for either one of these fellows, and these guys' attorneys won't answer our calls.

But five other teens who took part in this, Kyra, have not been charged. And that has sparked some protests in the community. This weekend, this was a march and vigil that was held calling for among other things more charges to be filed.

But here is the problem, and it's why feds may be involved. Mississippi doesn't have a stand-alone hate crime on its book. A person who commits a crime where hate is a motivator, faces additional penalties. But you can't just charge someone with a hate crime. The feds can.

And right now, we understand FBI agents are on the ground in Jackson, Mississippi, conducting an investigation for the U.S. Justice Department to see if this will lead to more charges, perhaps against thiose other teens involved.

PHILLIPS: And possibly even more crimes?

GRIFFIN: Possibly even more crimes. Our sources are confirming that this particular group of teens, this group of teens from a neighboring white county, may be connected to other racially motivated attacks in and near Jackson, Mississippi. This group has a history, according to the prosecutor there. He wants help from the FBI to help him with this case and investigating past crimes as well.

PHILLIPS: Heart0wrenching. All right, Drew, thanks.

Visitors to Orlando's Sea World get a pretty dangerous brush with nature yesterday. Not from the resident wildlife, but a bolt of lightning. We'll have the update.

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PHILLIPS: Checking stories "Cross-Country."

Police in Tulsa, Oklahoma, say the longest standoff in their city's history is over with a 25-year-old man coming from down his perch atop a radio tower. The guy was up there since last Thursday. And after my mental evaluation, police say they plan charging him with trespassing.

In Albuquerque, New Mexico, Antonio Chacon was in the right place at the right time. He says he chased a van after sighing a neighbor's six-year-old daughter being forced into it. The suspect allegedly crashed his vehicle after a 15-minute chase through the streets of Albuquerque. Police say it was a real close call for this little girl, and they say her neighbor is a hero.

(BEGIN VIDEO CLIP)

SGT. TRISH HOFFMAN, ALBUQUERQUE POLICE DEPARTMENT: She had injuries on her. She was bruised and banged up. Her shirt was ripped.

I think that should give people a lot of hope that there are people that are willing to do the right thing.

(END VIDEO CLIP)

PHILLIPS: The suspect faces charges of attempted kidnapping.

We have another rescue to tell you about, this one at a Chatsworth, California, last night. Two teens found themselves in a pretty tight spot, stuck on a cliff ledge some 300 feet in the air. Firefighters used a helicopter to get them down.

And this morning's "Daily Dose," America's birth weight falling and is falling fast. According to the National Center for Health Statistics, the number of births across the country dropped to 4 million last year. That's down from 4.3 million in 2007. Experts feel the economy downturn is to blame. In fact, during the financial slumps of the 1970s and early '90s, birth rates fell more than 15 percent.

Well, college loan debts are getting even heavier, up to 25 percent. And now even outpacing credit card debt. That story, next.

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PHILLIPS: Well, as tough as it is when parents are unemployed, think how it affects the children as well.

Well, now, a new study is ranking the best and the worst states for kids. Alison Kosik of the New York Stock Exchange.

I guess we should start with the bad news.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Here's the bad news. Yes, definitely the bad economy clearly affecting kids, Kyra. What the study does is looks at states across the country, ranks them by looking at 10 key areas, including economic conditions, like the percentage of kids living in poverty, the percentage of kids and families where both parents are unemployed.

And here's what it found. In Louisiana, Mississippi, and Alabama -- those were ranked as the worst states for a child's well- being. The poverty rates on the Gulf Coast were absolutely stunning -- 25 percent in Alabama, 31 percent in Mississippi. That was actually the worst in the nation.

Now, the flip side, New Hampshire was the best state for kids, only 11 percent of children there live below the poverty line in 2009 -- Kyra.

PHILLIPS: Well, we also know that college costs are rising for our kids, and then there's this new report out showing that student loan debt is way up.

KOSIK: Oh, yes. Way up. And that's according to the New York Federal Reserve. Student debt has actually soared by 25 percent in the past few years. You know, one big problem here is a growing number of people -- they aren't paying back their student loans. Instead, what they're doing is they're choosing to pay off other debt first.

So, what you see happening is credit card and mortgage delinquency rates -- they have fallen. But student loan delinquencies they have shot up. You know what, Kyra? It's just another reality that the high cost of higher education means, you know, everybody is incurring more debt to get through college. And everybody hopes it will pay off -- Kyra.

PHILLIPS: Oh, yes. And with my little twins, I've already crunched the numbers, it's amazing how much college is going to cost when they're 18. We're talking possibly millions

KOSIK: You go to those 529s!

PHILLIPS: Oh, exactly. I did it the first week. Great advice. Good advice to all new parents. Thanks, Alison.

We'll take a quick break. More from the CNN NEWSROOM straight ahead.

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PHILLIPS: All right. Breaking news now that we want to tell you about. We are actually monitoring a live news conference that's just about to happen. Do we have that picture, Scotty?

There it is. It's out of our affiliate WFTS. The Tampa Police Department is about to hold a news conference. Apparently, there was some type of plot that was foiled, some students planning to kill the principal and a number of students at Freedom High School in central Florida.

Our David Mattingly has been working the story for us, bringing us details.

What do we know as we await the news conference?

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: Nothing to confirm with the police, but we had a spokesperson with the Hillsborough School District. They sent out an automated call to parents this morning alerting them that this was going to be coming up.

But they don't have any details right now of exactly what this former student might have been planning to do. They do tell us that they have been told this was a former student that was arrested, a male who has not attended. It was Freedom High School there in the Tampa area. He hasn't been there for a year and a half.

The school is not in session right now. This plot was supposed to take place sometime at the beginning of the school year. That does not happen until Tuesday of next week.

So, right now, even the spokesperson for the school system is telling us he doesn't know ne any details. And he's going to be watching that press conference, just like we are and just like so many parents in Tampa might be doing that right now.

PHILLIPS: So, did somebody get a tip, tip off authorities? And they might have seized -- I don't know, a computer or something to -- do we know yet how they found out about this?

MATTINGLY: So many questions and absolutely no answers right now about what the police know, what led them to this young man, and what he was it actually planning to do. So, like I said, just along with the school system and all the parents, we're waiting to find out what kind of threat there was here and how real was it, how far down the road was it to possibly being carried out.

PHILLIPS: Got it. We'll follow it with you. Thanks so much, David.

And other stories making news later today:

Next hour, GOP presidential candidate Rick Perry campaigning in New Hampshire.

Meanwhile, President Obama holds two town hall meetings in Illinois as he wraps his Midwest bus tour.

And then later at 3:00 p.m. Eastern Time, Libya's transitional government formally opens its embassy in Washington.

Mortgage rates hit record lows, and next hour in the CNN NEWSROOM, some tips on whether you should refinance now or wait until later.

Plus, hundreds of calls tying up the phone lines at the L.A. Sheriff's Office all because of a tweet. Was it a prank that went wrong? Well, rapper The Game joins us to tell us his side of the story.

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PHILLIPS: Let's get you straight to Tampa now. Police are holding that news conference on that plot that was revealed to shoot students and possibly a principal at a Central Florida school. Apparently, cops found a manifesto.

Let's take it live.

CHIEF JANE CASTOR, TAMPA, FLORIDA POLICE: And then he also mentioned his desire to cause more casualties than were suffered at Columbine.

We had officers found material in his room that could be used for making explosive devices. We called our bomb team in, the experts. And they in fact said that, yes, the material that he had could be made into explosive devices and could cause serious injury, up to and including death, if they were to be detonated.

And the material that they found included fuel sources, shrapnel, plastic tubing, timing and fusing devices within his room. The individual -- we did not find any firearms at that apartment yesterday, but Jared Cano has been arrested in the past for carrying a concealed firearm at that was stolen in a burglary that he committed.

So he does have an extensive criminal record that Major Newman will talk about in just one minute, but I do want to raise some of the individuals and groups that were involved in this investigation. One, the individual that came forth with information -- that's what we need in this community, is to have the citizens involved in keeping this community safe. And that was a prime example of allowing us to avoid a very serious event yesterday.

I also want to thank the Hillsborough County School System. They are our partners day in and day out, not only keeping our schools safe, but also keeping the city of Tampa and the residents safe as well. We have an amazing working relationship, and I can say that with TPD and Hillsborough County School System working in concert yesterday with a sense of urgency in investigating this very, very thoroughly, that we were probably able to thwart potentially a catastrophic event the likes of which the city of Tampa has not seen and hopefully never will.

So I want to thank them for their involvement as well, and I also want to praise the members of the Tampa Police Department, again, who acted very urgently, took this information seriously, and were able to see it through to taking this individual into custody and taking all of the material that he intended to use in this event next week, to get that of the streets as well.

And now I will turn it over to Major Newman, and he will discuss the relationship that we have had, the police department has had with Jared Cano in the past. And just if you aren't familiar with the charges, or you haven't been advised of the charges, he was charged yesterday with threatening to throw, project, place or discharge a destructive device, possession of bomb-making materials, and also cultivation of marijuana in his room at his house, and possession of marijuana and drug paraphernalia as well.

Major Newman.

Good morning.

MAJ. JOHN NEWMAN, TAMPA, FLORIDA, POLICE: Once we were able to identify Mr. Cano's whereabouts, where he lived, and what his relationship was to the New Tampa Freedom High School area, I notified the supervisor, Sergeant Pryor (ph), who works out there, works very intimately with that neighborhood, and particularly that school. And we verified through our system that Mr. Cano had indeed been on our juvenile checklist at one point in '08 and '09.

He had been arrested recently for a burglary in which a firearm was stolen, and he has some other charges involving (INAUDIBLE), possession of marijuana. He was on some sanctions that required us to do juvenile checks, which most of you know is consider one of our best practices, constantly going out and checking on our juveniles that may or may not have a sanction.

So we've been very, very familiar with him. But then, besides looking at the data set that we had available, talking to the street officers, particularly the sergeant that is assign up in New Tampa. He was very familiar with Mr. Cano.

He was actually there for several of the arrests, understood that he no longer had any dealings with Freedom High School, he was a former student. But that kind of information, that kind of intimacy, knowing the folks that are in your area that may be causing problems was invaluable for us in this investigation.

QUESTION: Could you spell your name?

NEWMAN: Sure. Newman, N-E-W-M-A-N.

QUESTION: Can we have a first name?

NEWMAN: I sure do. It's John.

QUESTION: J-O-H-N?

NEWMAN: J-O-H-N, District 2.

UNIDENTIFIED FEMALE: And now Mr. Lewis Brinson from the Hillsborough School System is going to come up and speak to the actions taken by the school system. LEWIS BRINSON, SUPERINTENDENT FOR ADMINISTRATION: Good morning. My name is Lewis Brinson. I'm the assistant superintendent for administration.

First, let me start by saying that I want to praise the relationship that we have with the city of Tampa Police Department, and also the citizens for coming forward, because it's going to take an entire village to stop these kinds of situations from happening. And I just want to praise them for working with us in the past, and I look forward to the continued working relationship.

It's unfortunate that we have a situation like this, but it it's more fortunate that we stopped it. And we have to continue to work together to stop these events from happening.

So what do we do now to recover? We sent out a parent link to all of the parents at Freedom, letting them know about this incident, letting them know that if they have questions or concerns about anything that's going to happen next Tuesday when we -

(END LIVE COVERAGE)