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Jada Pinkett Smith Testifies before Congress about Human Trafficking; Rallying Supporters Raising Money; Girls Missing; FDA to Approve New Weight Loss Drug; Heat Wave Hurting Crops; Mission to End Slavery; A Hot Summer of Bare Knuckle Politics Between Obama, Romney; Fed Chair Gives Grave Assessment, Saying Still Big Threats to Economy; Needles Found in Delta Airline Flight Sandwiches; Shell Allowed to Drill in Arctic

Aired July 17, 2012 - 13:00   ET

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

SUZANNE MALVEAUX, CNN ANCHOR: I'm Suzanne Malveaux. This hour in the CNN NEWSROOM, we are focusing on the race for the White House as well as a controversial new obesity drug, and the worst drought in America since the 1950s. I want to get right to it.

President Obama, Mitt Romney raising money and rallying their supporters this hour. Romney holding a campaign rally in Irwin, Pennsylvania. That's about 20 minutes from now. He also attends a private fund raiser in Pittsburgh. The President, he's going to be speaking at a fund-raiser in San Antonio. We expect to hear from him any minute. We're going to take you there live when he starts his remarks. We're going to have live coverage from the Romney rally. That is also happening later this hour.

Relatives of two missing girls in Iowa say they are now bracing for the worst but hoping, hoping for the best. Eight-year-old Elizabeth Collins and 10-year-old Lera Cook, they were seen Friday riding their bikes near a lake. Now, the girls' aunt appeared on HLN along with Lera's mom and she says the family is frustrated and confused.

(BEGIN VIDEO CLIP)

TAMMY BROUSSEAU: It's very baffling to understand how someone got off with a 10-year-old and an 8-year-old at the same time because it's as though they disappeared into thin air in broad daylight.

(END VIDEO CLIP)

MALVEAUX: Authorities began searching the lake over the weekend and started draining it yesterday. They are also using dog scent dogs to help in this search.

There is no magic pill to cure the country's obesity epidemic, but today the FDA is expected to approve a new weight loss drug called Qnexa. Now, the drug along with another one last month, they are the first weight loss pills approved in some 13 years. The CDC says 35 percent of adults in the U.S. are obese, so this is something that could affect millions of people. But not everybody thinks it is a good idea. Our Senior Medical Correspondent Elizabeth Cohen has some details. Can you tell us, first of all, what do we know about the effectiveness of this drug, how well it works?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Right, that's what everyone wants no know, how much weight will I lose if I take this drug? And by the way, I want to be clear, the FDA is expected to rule on it today. It has not yet been approved. It's expected that they'll approve it, but, of course, you never quite know what the FDA is going to do. So, let's talk about what weight loss people would expect. So, in the studies, they were looking at obese people. So, average weight of 227 pounds and people got down to an average of 204 pounds. So, that's about a 23 pound weight loss right there and they kept it off for about two years. And so, that's actually pretty good compared to some other diet pills.

MALVEAUX: What does this pill actually do? Do we know?

COHEN: It does two things. One, it has an appetite suppressant which is called Fentravene which was half of the old fen-phen combination, remember that as sort of the safer half. And then other half is something called Topiramate. And what that does is it makes you feel fuller, faster. So, you don't eat as much and you feel fuller faster. And Topiramate, interestingly enough, is an anti-seizure medication. People with epilepsy take it.

MALVEAUX: There are some people who lobbied against the approving of this drug. Why is that?

COHEN: There are some serious side effects. And the concern is is that when you're talking about a diet pill, you know that a kajillion, I know that's not a real word, but you know that jillions of people are going to take this drug and they are worried you're going to see a lot of side effects. So, let's take a look at what they found in the clinical trials. In the clinical trials for this drug, they found that some people had an increased heart rate. And that's of concern, you know, for people who already have heart disease, that could be serious.

Also, other people -- a relatively small number, but some people suffered from cognitive issues like confusion and language problems. And then, folks taking Topiramate for seizures and for migraines, women, when they had babies, had a higher rate of cleft lip and cleft pallet. And so, that's a concern and that's why on this drug, when women of childbearing age take it, they're supposed to be on birth control. But we all know that that doesn't work so well. Like, in these trials, what they found was that -- actually, they had many -- something like 30-something pregnancies, even though they told the women to use birth control.

MALVEAUX: Wow. So, that wasn't working.

COHEN: Right. So, the (INAUDIBLE) birth control thing didn't work quite as well as it should have.

MALVEAUX: Right. And there are a lot of people who -- I've been talking with about this today because there are women who want to lose weight. Is this for obese people? Or is this something where if it -- this is not for the group that you want to lose five or 10 pounds, right?

COHEN: It's not supposed to be. If the FDA approves it, it will be for obese people or truly overweight people who also have health problems. But let me introduce you to someone, her name is Meg Evans. I'm going to show you pictures. She was in the trials and she was truly obese. She was five foot nine and she weighed 230 pounds. And so, you see the before picture on the left there with the white pants and then the after picture. She lost 50 pounds and she was thrilled. And she had high blood pressure and then once she lost the weight, she didn't have high blood pressure. It's meant for people like her. Doctors, however, can prescribe it to anyone they want. And if history is any lesson, they will prescribe it to anyone they want. I mean, people --

MALVEAUX: Would it be dangerous to take it if you weren't severely overweight or obese?

COHEN: It wouldn't necessary by be any more dangerous. But here's the deal, if you're obese, many would say it's worth taking the risks of the cognitive problems or the potential heart issues, because you're obese and you need to lose weight to be healthy. But if you're just trying to lose five pounds, should you really be taking those kinds of risks just to lose five pounds? But I know that a lot of women and men will. They -- I mean, I've talked to -- I'll be honest, I've talked to people who said, I don't care what the risk is.

MALVEAUX: Yes.

COHEN: I'm just going to take it. Even with fen-phen, where there was -- there was --

MALVEAUX: Really?

COHEN: -- some known serious heart risks. I know people who said, I don't care, I just want to lose weight.

MALVEAUX: Wow. Always go for a run, a good run.

COHEN: That could do it, too.

(CROSSTALK)

The people who lost weight on this, they also were counseled to do diet and exercise. So, I want to emphasize that. That's an important part of this.

MALVEAUX: Absolutely. All right. Elizabeth, thank you. Appreciate it.

We've all been feeling it. And we're talking about the record heat this summer and extreme weather taking a devastating toll now. More than half of the country is in a drought. That is more than a thousand counties in 26 states declared disaster areas. Some of the hardest hit areas are in the Midwest and plain states where many farmers are in danger of losing their crops. Corn, for example, this week, 38 percent of the corn crop across the country is in poor or very poor conditions, compared to just 11 percent at this time last year. Iowa is at the front and center of the problem. Earlier, governor Terry Branstand -- Branstad rather, met with farmers and state and federal agencies. Chris Welch, he was there, and, Chris, tell us about this meeting. What was the importance of this?

CHRIS WELCH, CNN CORRESPONDENT: Well Suzanne, it actually just wrapped up about a half an hour ago. And as you mentioned, governor Terry Branstad here heading up this meeting. It was made up of -- it was really a forum made up of state and federal officials as well as the governor and lieutenant governor. And basically, they wanted to get together and convene this meeting to give folks more information about this drought. This drought, as you mentioned, has been doing a lot of damage here in Iowa, really across the country, especially here in the Midwest, in Iowa, states like Indiana, Missouri, particularly hard. Here in Iowa, you know, this is the biggest corn producing state in the country, so a lot of farmers here stand to lose quite a bit if these crops are what people think they could be, if the yields are as bad as they could be.

Now, this meeting here, federal officials said, you know what? Assistance will become available once the region here, once the state of Iowa reaches -- gets into the D-2 drought territory. Now, they're already -- most of the state is already in a D-1 drought, so they don't have far to go before they reach D-2. Then they could apply for assistance, but drought assistance comes in the form of a loan. So, you know, it's not just a handout. They will be having to pay it back and meet certain qualifications, but that's kind of what folks learned in the meeting.

MALVEAUX: And Chris, we know some states, they're already plowing down their corn. Do we anticipate that farmers are at the point of no return here, where you might as well just get rid of it?

WELCH: Well, it kind of depends on where you are. You know, here in Iowa, they've had scattered rain. So, you know, you go to one person's farm, they may be looking -- they may be looking at a dire situation, whereas the person's farm directly next to them may have gotten a little more rain than them and they won't be looking as bad. You know, I talked to a farmer who -- he says, on a good year, he gets 200,000 bushels. This year he might get only 150. Here's what he says about his farm.

(BEGIN VIDEO CLIP)

DEREK MULLIN: This is our personal business, it's right out our back door. As soon as we walk out of our house, we see our investment. And when it goes downhill, it does take a toll on you. You know, one of the hardest parts about this is that you can do everything just right, planting dates, work hard at putting in a good crop, have a good stand established and when mother nature works against you, then it all seems like it was for nothing.

(END VIDEO CLIP)

WELCH: And Suzanne, another important point that came out of this meeting is the fact that it's not really the corn -- it's not just the corn, it's not just the soybean producers and farmers that were hurt from this. In the immediacy, it is perhaps even more so the livestock farmers and ranchers because those animals need that corn and need that feed to keep their animals growing.

MALVEAUX: And Chris, I imagine the drought is also affecting the prices at the grocery stores that all rely on this corn.

WELCH: Yes, a lot of experts anticipate that it won't be corn right away. That will come down the road, but the first way we will -- first aspect of price increases we will see will come in the beef. And that is because the farmers, the ranchers who are trying to feed their cattle are dealing with higher corn prices out here in the field. So, it will come to the beef market first.

MALVEAUX: All right, Chris, thank you very much. Good to see you as always.

Here's what we're working on for this hour.

(voice-over): Two Americans kidnapped at gunpoint from a tourist bus in Egypt are now reunited with their families. We're live from Jerusalem where the reunion took place.

How did sewing needles end up in the sandwiches of four airline passengers on four different flights? We've got the very latest on this bizarre and scary story.

And the state of Michigan is being sued on behalf of parents who say their kids can't read.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: This case, simply put, is about the right of children to read. A right guaranteed under the constitution.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

MALVEAUX: Actress Jada Smith today took her fight against human trafficking and sex slavery to Capitol Hill. She testified before the Senate foreign relations committee. A panel plans to develop a strategy to stop human trafficking over the next 10 years. Jada Smith, she says her daughter inspired her to take action.

(BEGIN VIDEO CLIP)

JADA PINKETT SMITH, ACTRESS: Until recently, I, like many people, was unaware of its prevalence and magnitude. It took my 11-year-old daughter, Willow, who is here with us today, to bring it to my attention. After watching the Kony 2012 video and learning children in Africa were being stolen from their families, forced into sexual slavery or used as child soldiers, she started doing some research. She discovered that this wasn't only happening to children in Africa or far off places, but that children in every country, including our own, are being forced into slavery. Now, this spurred me into action. (END VIDEO CLIP)

MALVEAUX: The State Department says as many as 27 million people are enslaved worldwide and the FBI estimates more than 15,000 of them are here in the United States.

(END VIDEO CLIP)

UNIDENTIFIED MALE: A Delta air lines passenger says he thought it was a toothpick when he bit into it, but he says this object in his turkey sandwich actually was a needle. It was one of several found in sandwiches on Delta flights from the Netherlands to the U.S.

Now, Delta switched to serving prepackaged meals on the flights while authorities are investigating this. CNN's Sandra Endo, she's following the story.

(BEGIN VIDEO CLIP)

SANDRA ENDO, CNN CORRESPONDENT: Suzanne, the FBI and local authorities in the Netherlands are trying to find out how the needles got into those turkey sandwiches. A Delta spokesperson said the needles were found in sandwiches on flights from Amsterdam to Minneapolis, Seattle and two flights to Atlanta.

Two of the needles were found by passengers and one was discovered by an air marshal. When Delta found about the needles in the food, the airline said it notified all 18 flights from Amsterdam to stop serving the sandwiches.

Here's what one passenger who got one of the contaminated sandwiches said when he spoke with station KSTP.

(BEGIN VIDEO CLIP)

DR. JACK DROGT, FOUND NEEDLE IN SANDWICH: I bit down on it so that I wasn't biting down on the sharp side but on the flat side. It could have been, you know, a bad injury orally. But had I taken a big swallow and swallowed that down, I'd have a needle inside. That would be very concerning to me.

ENDO (voice-over): Gate Gourmet provided the sandwiches, which were prepared in Amsterdam to Delta. In a statement, a spokesperson for the company says, "This is a terribly upsetting situation. First and foremost is the safety of the traveling public. There's nothing more important to us at all than the safety of the passengers and crews."

Gate Gourmet said it's fully cooperating with the FBI local authorities in the Netherlands and its own conducting its own full- scale investigation. The company says it does provide food to other airlines but have received no other reports or complaints. Suzanne?

MALVEAUX: Thank you.

Coming up at 1:30, we're going to talk to one of the passengers who had the needle in his sandwich. He says he took a second bite into the sandwich when the needle punctured the roof of his mouth. We're going to hear his story at the bottom of the hour.

But first, a woman accuses George Zimmerman of molesting her for nearly a decade. So how could this information hurt the man who killed Trayvon Martin?

(COMMERCIAL BREAK)

UNIDENTIFIED MALE: There are new accusation against George Zimmerman, the man charged in the fatal shooting of Trayvon Martin. A woman now claims that Zimmerman sexually abused her for about a decade, and says the abuse started when they were children. A Florida judge released an audiotape of her accusation.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It started when I was 6. He's about almost two years older than I am. He would reach under the blankets and try to do things, and I would try to push him off, but he was bigger and stronger and older. And it was in front of everybody. And I don't know how I didn't say anything, but I just didn't know any better.

(END VIDEO CLIP)

MALVEAUX: The unidentified woman is known only as Witness Number 9. Now, CNN reached out to her father, who said the family would not be speaking to the media.

Meanwhile, Zimmerman's lawyer calls the claim not relevant to the Martin case.

Want to bring in our CNN legal contributor, Paul Callan, to talk a little about it.

Do we think this has any impact at all on the allegation -- in this allegation in the case of Trayvon Martin?

PAUL CALLAN, CNN CORRESPONDENT: In terms of its ability to influence public opinion, yes, it's a very prejudicial piece of information. I mean, it really, it will damage Zimmerman's public image on the one hand.

On the other hand, I don't think there's any theory of law that would render this admissible in the current trial. I mean, you're talking about claims going back to when O'Mara was 9 or 10 years old -- I'm sorry, not O'Mara -- when Zimmerman was 9 or 10 years old. Wouldn't be admissible in evidence.

Criminal propensity is not admissible in a criminal case generally. So at the trial you're not going to see this come out.

MALVEAUX: And alleged racism plays a part in this case. I want you to listen to Witness Number 9, what she said, the statement on Zimmerman regarding that.

(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: I was afraid that he may have done something because the kid was black, because growing up, they've always made -- him and his family have always made statements that they don't like black people if they don't act like white people.

(END VIDEO CLIP)

MALVEAUX: So, Paul, when you take a look at this statement, could this be used in the case against Zimmerman? Would this be relevant?

CALLAN: Highly unlikely that it will be used in a state case. Now, Suzanne, if this was a federal case for civil rights violations, wholly different thing. But here the only issue for the court and for the jury is did Zimmerman act in self-defense, or was the use of deadly physical force not justified?

The fact that years ago his family made racist comments or even that he made racist comments, very, very hard to get that into evidence. It really would have to be very close in time to the shooting itself. Then it might be relevant, but the fact that you have a history of saying racist things in the past generally, you can't get that into evidence in a criminal case unless it's a civil rights case.

MALVEAUX: And Monday, prosecutors released nearly 150 of Zimmerman's recorded jailhouse phone calls. There's an article in the "Miami Herald" today that says one of the calls suggests that his attorney knew from the start that there were tens of thousands of dollars of donations that were pouring into Zimmerman and that they kept this quiet.

How is this -- is this significant? What could happen to him, the attorney?

CALLAN: This is very, very significant, I think, in that -- I've always wondered why mark O'Mara, the defense attorney, didn't say to the judge, you know, Judge, I didn't tell him that he had to reveal about the fundraising efforts and how much money was in the account.

And O'Mara has always kind of taken a public position that he didn't know what was going on. These tapes would suggest that O'Mara did know.

And if you look, Suzanne, at how this played out at the bond hearing, Zimmerman didn't actively say anything to the judge about it. He just sat silently while his wife lied about the money. O'Mara did the same thing, if these tapes are true. So I think this is -- this is a very harmful bit of evidence with respect to Mr. O'Mara's reputation. Maybe he's got an explanation for it. We'll see.

MALVEAUX: All right. Paul Callan, appreciate it. Thank you very much.

Want to go directly to Romney, who's making a statement. I want to take that live.

(BEGIN VIDEO CLIP) FORMER GOV. MITT ROMNEY, R-MASS., PRESIDENTIAL CANDIDATE: You know, it is that enthusiasm and that optimism that I'm convinced is going to drive America to an economic rebound, is going to create jobs, a brighter future for our kids.

I am not someone who's looking to America to decline. I'm looking to America to take off and it's going to happen with new leadership.

(APPLAUSE)

ROMNEY: We're going to have to take a very different direction than this country's been on in the last 31/2 years if we're going to see the kind of bright future we'd like to see for ourselves, for our friends and neighbors and for our children.

Because the president came into office and recognized things were in trouble and went on the "Today" show after being inaugurated and said, look, if I can't turn around the economy in three years, I'd be looking at a one-term proposition. Well, he's right.

(APPLAUSE)

ROMNEY: Now, I think he's got the message that there are 23 million Americans that are out of work or that have stopped looking for work or can only get part-time jobs. I think he has heard that about half of this year's college graduates can't find work or find work that's consistent with their college degree.

I think he's heard the message that the median income in America has dropped by 10 percent in the last four years. I think he's seen the record number of foreclosures. And so he has to recognize his policies have failed to get America working again. And my guess is he wonders why that is. And I have the answer for him. Liberal policies don't make good jobs.

(APPLAUSE)

ROMNEY: You look at them one by one. Everybody knows that our health care system has all sorts of problems and things that need to be corrected, most important of which -- or one of the most important is it's very expensive. Health insurance is extraordinarily expensive. There are a lot of things that need to be done to improve health care, but ObamaCare is not the answer. We have got to replace it and get rid of it.

(APPLAUSE)

MALVEAUX (voice-over): You're listening to Mitt Romney out of Irwin, Pennsylvania.

(END VIDEO CLIP)

MALVEAUX: Why an eighth grader who can only read at a third-grade level is the subject of a lawsuit against the State of Michigan. We're going to hear from the ACLU, who is taking this on -- up next.

And don't forget, you can watch CNN live on your computer while you're at work. Head to CNN.com/TV.

(COMMERCIAL BREAK)

MALVEAUX: State of Michigan is getting sued for failing to do its job. That is teaching students how to read. That is right. The ACLU filed what it calls a first-of-a-kind lawsuit against the state for actually failing to teach students to read at grade level. We are going to bring more of that story to you after the break. We're going to be talking to Carrie Moss, the executive director of the ACLU, who's actually filing that suit.

We're going to take a quick break first.

(COMMERCIAL BREAK)

MALVEAUX: In Chicago, a video posted on Facebook leads to the arrest of three teens on first-degree murder charges. The medical examiner says 62-year-old Delfino Mora died from blunt head injury just a day after he was allegedly punched and knocked to the ground by a 16-year- old boy. Two other boys seen in these pictures are accused of using a cell phone to record the attack. Prosecutors say the boy who attacked Mora posted the video on his Facebook page and that eventually led to police finding the suspect.

A teenager from Ohio suspected of being a drug kingpin. Well, police say a 17-year-old high school student was at the head of a marijuana distribution ring that operated to Cincinnati area high schools. He had six lieutenants selling as much as $20,000 in high-grade pot to students every month. Authorities seized 600 marijuana plants with a street value of $3 million. The minor was not named and will face charges in juvenile court.

President Obama, first lady, taking to the big screen in the Jumbotron, that is. Pretty cute.

(BEGIN VIDEO CLIP)

(SHOUTING)

(CHEERING)

(END VIDEO CLIP)

MALVEAUX: The Obamas caught on the kiss cam during the USA women's basketball game versus Brazil last night, took two rounds on the kiss cam and a little prodding by their daughter, Malia, before the couple finally puckered up. By the way, the U.S. team won.

Mitt Romney is stepping up attacks against President Obama, accusing Obama of helping political donors instead of middle class Americans. The Obama campaign is firing back with a new ad targeting Romney and his tax returns. It's going to be a long, hot summer of bare knuckle politics. The election just 16 weeks away.

Jim Acosta joining us live with the latest on Romney's offense. So Romney accusing the president of cronyism. What are they throwing out today?

JIM ACOSTA, CNN POLITICAL CORRESPONDENT: Right. Well, Mitt Romney just used the term "crony capitalism," Suzanne, at an event that's going on right now in Irwin, Pennsylvania, just outside of Pittsburgh.

You're right. It is bare knuckle time in this campaign. Maybe brass knuckles time might be more like it.

Listen to what John Sununu, who's a top surrogate for the Romney campaign, what he said on a conference call earlier this afternoon. He basically said that President Obama does not understand how the economy works and listen to the phrase he used in describing that.

OK. I'm being told we don't have that sound. I'll read to you the quote he said. He said, Suzanne, quote, "I wish this president would learn how to be American." And then in the Q&A session with reporters during that same conference call, he was asked about that comment, and he went on to say that, well, I think the president just doesn't understand how jobs are created in this country, or something to that effect. That drew a pretty sharp response from the Obama campaign. They put out a statement, Suzanne, accusing the Romney campaign of going off the deep end.

This just goes to show you that this back and forth with these personal, very partisan, personal attacks are just going back and forth between both campaigns and showing no sign of letting up.

MALVEAUX: And the Obama campaign is hammering away at Romney over his tax returns in a new campaign ad. How would you describe that?

ACOSTA: You have to take a look at the ad. This came out just this morning, and they are not letting up on Mitt Romney's refusal to release any more than two years of tax returns. As you know, he's already released a 2010 return. He's planning on releasing his 2011 return. A 2011 estimate is already out.

By the way, Mitt Romney gave an interview to "The National Review Online," where he basically said, again, he's not going to do that, he's not going to hand over to the Obama campaign more fresh opposition research material.

But look at this Obama campaign ad that came out earlier this morning. They are not letting up on this issue.

(BEGIN VIDEO CLIP)

ANNOUNCER: Tax havens, offshore accounts, carried interest. Mitt Romney has used every trick in the book. Romney admits that over the last two years he's paid less than 15 percent in taxes on $43 million in income. Makes you wonder if some years he paid any taxes at all. We don't know, because Romney has released just one full year of his tax returns and won't release anything before 2010.

MITT ROMNEY, (R), FORMER MASSACHUSETTS GOVERNOR & PRESIDENTIAL CANDIDATE: You know what, I've put out as much as we're going to put out. ANNOUNCER: What is Mitt Romney hiding?

(END VIDEO CLIP)

ACOSTA: So there you have it. That ad is as about as sharp and personal as it gets, you know, and the Romney campaign is not letting any of this go unanswered. They just put out a press release, just a few moments ago, Suzanne, saying to President Obama, if Bain Capital is so bad, if Bain is so bad, why have you taken campaign contributions from people associated with Bain?

So it's now a mud fight. Both sides are throwing it -- Suzanne?

MALVEAUX: Jim, real quick here. There's a lot of speculation Romney might announce his V.P. pick soon. "The New York Times" saying the announcement could come as early as this week. Are they essentially going to try to change the subject here? Is it too early to play the V.P. card, do you think?

ACOSTA: You know, I got to tell you, Suzanne, I think it might be a little too early. But, hey, this is obviously in the hands of the Romney campaign.

There's a really interesting "New York Times" article that came out this morning, Suzanne, that takes readers inside the vice presidential selection process and talks about some of the very personal questions that are being asked of some of these vice presidential potential nominees. But it sounds as though the Romney campaign is not quite ready to make this pick. It just -- we aren't seeing the signs that they're on the verge of making the selection.

However, we should note, Suzanne, that tomorrow Mitt Romney is scheduled to be in Ohio, and the man who a lot of people in Washington say is at the very top of his list, Rob Portman, from Ohio. That would be a perfect opportunity to let that one out of the bag.

By the way, the Obama campaign, they're not saying they're preparing for this. But interesting timing. They're sending Joe Biden to Ohio the next day, almost as if it's an anticipation of a potential vice presidential announcement.

Or maybe I've been thinking about -- maybe I've just been paying attention to this too long --

(LAUGHER)

-- and thinking about this too much. Might be that also.

MALVEAUX: You're eating, breathing, living. I know what that's like.

(LAUGHTER)

We're going to be on top of that tomorrow. We'll come back to you and see if it actually happens.

ACOSTA: All right, sounds good. Take care. MALVEAUX: Doom and gloom on the Hill, as Ben Bernanke describes what's derailing the U.S. economic recovery.

(COMMERCIAL BREAK)

MALVEAUX: Familiar face on Capitol Hill today. Top Republican aides tell us former Vice President Dick Cheney will attend a House leadership meeting. That's happening this afternoon. He's also going to meet with a team that helps round up votes in the House. They're talking about strategy for dealing with automatic cuts for defense programs. Those cuts would go into effect next year. Also on Capitol Hill today, a warning from the Federal Reserve Chairman Ben Bernanke. He told a Senate Banking Committee there, there are still big threats to the U.S. economic recovery. He made no mention of stimulus plans.

I want to bring in Alison Kosik at the New York Stock Exchange.

He said essentially Europe's debt crisis was the biggest threat. He also talked about a fiscal cliff in the hearing. Specifically, what was he referring to?

ALISON KOSIK, CNN CORRESPONDENT: OK, the good old fiscal cliff. Yes, get ready, Suzanne, to hear that phrase a lot over the next six months. What that is is essentially a handful of different policies schedule to automatically expire early next year that would literally take billions of dollars out of the economy when the economy barely has a pulse unless Congress does something.

Now, some of what would happen here is, number one, the Bush tax cuts would expire. President Obama says he wants to extend these cuts for Americans who make less than $250,000 a year, but let them expire for families with net incomes above that level. What would also happen is the payroll tax cut. That would go away. That would mean less money in your paycheck. The alternative minimum tax would expand to upper middle income earners. Some people would be paying more in taxes. Also a bunch of spending cuts kick in. All together, most of those cuts are targeted at military defense. It would cut about $10 billion from the budget next year. And for millions of Americans, their extended unemployment benefits would run out.

Bernanke says the consequences are serious if Congress just sits on their hands and does nothing.

(BEGIN VIDEO CLIP)

BEN BERNANKE, CHAIRMAN, FEDERAL RESERVE: The Congressional Budget Office has estimated that if the full range of tax increases and spending cuts were allowed to take effect, a scenario widely referred to as the fiscal cliff, a shallow recession would occur early next year and one and a quarter million fewer jobs would be created in 2013.

(END VIDEO CLIP)

KOSIK: And, you know what, Suzanne, many economists say, you know what, Chairman Bernanke, we agree with you -- Suzanne?

MALVEAUX: Keeping in mind, all these warnings over the economic picture here, what does he look -- when he sees the big picture, is it moderate growth?

KOSIK: You know what, he does still see moderate growth. He's really sticking to his guns about still seeing moderate growth. You know, but many would say that's being pretty generous. Many would call this growth anemic, especially when you're looking at the Fed's expectation for economic growth to be up to 2.4 percent for the entire year. So, yes, the economy is slowly but surely recovering. We're seeing slowdowns in certain areas, especially in important areas like manufacturing and jobs.

One real takeaway you can certainly walk away with after watching Bernanke on the Hill is his tone, Suzanne, was definitely more downbeat today than he was in June -- Suzanne?

MALVEAUX: All right. Thank you, Alison. Appreciate it.

Checking your 401K these days could also lead to disappointment. It's not just growing as fast as you like.

Our Poppy Harlow, along with financial experts, have tips to grow your retirement fund in this tough economy.

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POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: Hey, there, everyone. Here on the "Help Desk" today we're helping you prepare for retirement. Always important.

With me, Greg Olsen and Donna Rosato, our two money experts.

Greg, this question comes for you. Take a listen.

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UNIDENTIFIED FEMALE: My question is about 401K. I have quite a bit of money invested there. It doesn't seem to be growing. So my question would be, what's the best way to move that and where to move it to build on it?

(END VIDEO CLIP)

HARLOW: You know, Greg, she also told me, the market is so volatile now, you don't really know where to put it.

GREG OLSEN, PARTNER, LENOX ADVISORS: Understood. Unless her 401K -- if she's still at her employer, there's not much she can do in terms of moving her 401K.

MALVEAUX: Right.

OLSEN: The good news is that most likely it's not specific to her 401K program. A year ago, the S&P was sitting at over 1,300. Today, the S&P is sitting a little over 1,300. So it's not specific to her 401K. A lot of people are feeling the same thing. The one thing that I would recommend is look for a target asset allocation fund that's closest to her age, within her 401K. Allocate the money toward that and then contribute as much as possible.

MALVEAUX: I wonder, Donna, if she should maybe put a little less than maybe she is in her 401K and put it elsewhere in the market, an IRA, for example, she might have more options?

DONNA ROSATO, SENIOR WRITER, MONEY: A lot of our readers do get a little frustrated. But I think people underestimate of the power of the 401K. You can put a lot more into your 401K than you can into an IRA, up to $17,500 a year. Plus, it's automatic and you get an employer match.

That said, people are not often happy with their choices. So I think a good rule of thumb is, put in enough money to your 401K to get the employer match, then if you want more choices, go to an IRA and fund that. You're going to feel like you have more control about where the money's going.

HARLOW: Absolutely.

Thank you both. We appreciate it.

If you have a question you want our experts to tackle, upload a 30- second video with your question to ireport.com.

(END VIDEOTAPE)

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MALVEAUX: We told you about needles found in sandwiches on four Delta Airlines flights from the Netherlands. A passenger who bit into one of those needles is joining us. Jim Tonjes, he was on a flight from Amsterdam to Minneapolis. He joins us live.

Jim, wow. What happened? Can you describe?

JIM TONJES, FOUND NEEDLE IN AIRLINE SANDWICH: Yes, when they served the second meal on board, basically what it was, it's considered a light snack. And they gave us a choice between a cold salad or a hot turkey sandwich. I chose the turkey sandwich. When they served it, I took one bite and tasted that and took the second bite and I bit into and I felt this real jab in the top of my mouth. The first reaction was sometimes they'll put a toothpick in. When I felt to see what it was and pulled it out and it was a needle about one inch long. It looked like a sewing needle but it was sharp on both ends. It didn't have an eye on one end.

MALVEAUX: What did you do? Did you hand that sandwich to somebody and ask what happened?

TONJES: No, I -- basically, you call the flight attendant. They immediately came and I showed that to them. They immediately brought the purser, who is in charge of the airplane, back. She looked at it and was asking questions. She went back up and was talking to the cockpit. On our flight, within two minutes, a passenger on the other side rang his call button, and they went over there and he said, look what I just found in my sandwich. They said, oh my god. It's the same thing we had on the other side. He found exactly the same thing in his sandwich also. And so they took the sandwiches, the needles away. And when we landed in Minneapolis, they confiscated all the sandwiches and x-rayed them and they actually found one more that had a needle in it.

MALVEAUX: All right. We're glad you're OK. And that they will get to the bottom of this. We appreciate your story. And do let us know if you've been compensated and how things go on your next flight. Thank you.

TONJES: OK. Thank you.

MALVEAUX: Sure. Thank you.

Drilling for oil in the Arctic has been off limits until now. There could be a gold mine of oil out there, but it also raises the risk for an environmental disaster.

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MALVEAUX: No question America needs more energy but there's plenty of debate about where and how to get it. Drilling for oil in the Arctic has been off limits until now. After years of lawsuits and resistance from environmental groups, Shell has been given the OK to drill off the coast of northern Alaska. It's the first offshore drilling project approved since the 2010 B.P. disaster in the Gulf of Mexico.

CNN's Miguel Marquez takes us "In Depth" on the fight for oil in the Arctic.

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MIGUEL MARQUEZ, CNN CORRESPONDENT (voice-over): It's a massive gamble. If it pays, Shell Oil will reap the benefit of being the first to establish a new market for oil in one of harshest climates on earth.

We will be drilling them like they are the most complex, most difficult wells we drilled in company history.

MARQUEZ: The plan, to sink to exploration drills in Arctic waters, one in the Belford Sea (ph), the other in the Chukchi Sea. The wells won't bring up oil but are designed to confirm what Shell believes is down there, at least 26 billion barrels of black gold, enough to supply 20 percent of America's needs.

UNIDENTIFIED MALE: If Shell really hits something this summer then I think things will heat up even more.

MARQUEZ (on camera): It's going to be a gold rush for oil.

UNIDENTIFIED MALE: It will be an undersea gold rush for oil. MARQUEZ (voice-over): But some of the native people who live here (INAUDIBLE). Eskimos fear, if the oil starts to flow, their way of life could be threatened.

ABIGAIL MUCHUVUK (ph), ALASKA RESIDENT: Our subsistence for the winter, it comes from the ocean, the fish and the whale. It's going to ruin our ocean.

MARQUEZ: Abigail Muchuvuk (ph) has lived in the tiny community of Point Hope her entire life. She is doing what she's done for years, preparing a seal skin to be made into winter boots, or mukluks, as they call them here.

MUCHUVUK (ph): When you're 79 years old, you don't move like a young lady, but you have to keep working on these skins.

MARQUEZ: She, like everyone else here, uses every bit of the animals. Same goes for walruses and especially whales. The people here still get by mostly like they've done for thousands of years, surviving the brutal winter by hunting whales and other sea animals during the short but intense summer.

The winter is a much different story. The winds can blow at hurricane strength. The ice can move like a freight train, weighing a million tons. And unforgiving and rapidly changing climate.

(on camera): This is the point of Point Hope. It separates the Baring Sea there, from the Chukchi there. About 90 miles that way, that's where Shell hopes to drill this summer. If you look out this way, toward the Baring Sea, we've just been here for a few minutes, and in that short time, the weather has changed enormously.

(SHOUTING)

MARQUEZ: It's a story we've heard before: tradition and culture threatened by change, modern life and necessity. This time, the stakes coundn't be higher: oil that could help power an America boom, pitted against a way of life for people living on the edge.

Miguel Marquez, CNN, Point Hope, Alaska.

(END VIDEOTAPE)

MALVEAUX: Be sure to catch Miguel's special report: Cold Wars: The Fight for Arctic Oil on The Sweep on "ERIN BURNETT OUTFRONT at 7:00 pm Eastern.

CNN NEWSHOUR continues right now with Deborah Feyerick.