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Romney, Ryan Campaign Separately; Ryan is Darling of Tea Party; Analyzing Romney's Choice of Ryan; Lasting 2012 Olympic Impressions; U.S. Still a Safe Bet; Phelps Will Appear on the Haney Project; A City Exclusively for Women

Aired August 13, 2012 - 09:00   ET

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

DEBORAH FEYERICK, CNN ANCHOR: Hey there. Good morning, Soledad.

Well, ahead in the NEWSROOM, energize the base, check. Go bold, check. Will Mitt Romney's decision to go with a Tea Party big gun be a big gamble for the Republican ticket?

And make room for this guy. President Obama headed back to Iowa today for the fifth time this year. And you can bet there will be some tough talk for the new man in town.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: My opponent chose his running mate. The ideological leader of the Republicans in Congress, Mr. Paul Ryan.

(END VIDEO CLIP)

FEYERICK: Plus, the Olympic flame is finally out leaving team USA swimming in gold. But there's another big reason to celebrate as the curtain closes on this year's summer games.

And no men allowed. Saudi Arabia's ambitious new plan to separate the sexes, a first of its kind city exclusively for women by women and of women.

NEWSROOM begins right now.

Good morning and thanks for joining us, everyone. I'm Deborah Feyerick in for Carol Costello.

Two days since the Romney camp announced Paul Ryan is the vice presidential running mate, the Wisconsin congressman hits the campaign trail on his own. And he's set to visit the Iowa State Fair today.

Meanwhile, Mitt Romney will continue on his bus tour. The GOP candidate is in Florida making two campaign stops today, the first in St. Augustine. Romney's first event will soon get under way. Interestingly enough Romney is joined this morning by Florida senator, Marco Rubio, a man who is on the short list in the veep stakes.

Our national political correspondent Jim Acosta joining us now from Flagler College of St. Augustine and, Jim, what's going on there?

JIM ACOSTA, CNN NATIONAL POLITICAL CORRESPONDENT: Well, this Romney event is getting started a little later than the campaign expected. But they, they got in very late last night. We all got in very late last night. Well after midnight. And it's been that kind of 48 hours for this campaign. But they are very happy, I can tell you, Deb, with the rollout so far of Paul Ryan as his running mate.

They have seen bigger crowds than they've had almost throughout this entire campaign and I will tell you that they are sensitive. They do recognize that there is this debate going on that this issue of the Paul Ryan budget plan is going to be a question for them as they roll out Paul Ryan as this running mate with this campaign.

Yesterday a senior Romney adviser went as far as to say, hey, wait a minute, Mitt Romney is at the top of this ticket. He's going to be presenting his own budget plan but, Deb, later on on CNN "STATE OF THE UNION" and then later on this morning Romney advisers have been saying, well, if the Ryan budget plan were to come across a President Romney's desk, he would sign it into law.

So a couple of different stories there on the Ryan budget plan. But I will tell you they do like the way this ticket looks to the American people. They point out that Paul Ryan is the first Generation X-er to be on a presidential ticket and they trotted out his very young family out on the campaign trail yesterday. Showed the Romney grandkids playing with the Ryan kids on the Romney bus.

And -- but as you mentioned just a few moments ago, Deb, these two candidates have gone their separate ways. Paul Ryan to Wisconsin -- was in Wisconsin last night with Mitt Romney. He got on a plane to go to Iowa. We have some video of that to show you. The two men came off of the bus and then shook hands and then got on their separate planes.

Ryan going to Iowa and Mitt Romney coming here to Florida but not before Ryan had a very emotional homecoming in his home state of Wisconsin. And here is a little bit of what he had to say to the crowd there.

(BEGIN VIDEO CLIP)

REP. PAUL RYAN (R), VICE PRESIDENTIAL CANDIDATE: I'm fifth generation from this state. My family came here back in the 1800s, made a go of it. It's where we've all raised our families ever since. This is such a phenomenal place to live, to work, to raise your family.

My veins run with cheese, bratwurst and a little Spotted Cow, Leiney's and some Miller.

(END VIDEO CLIP)

FEYERICK: And, you know, Jim, as we look at that, what's also so interesting is the Ryan budget plan that you mentioned, it is so controversial and it does affect Medicare and Social Security. Is -- can we read into anything the fact that Paul Ryan is not in Florida where there's a huge senior population?

ACOSTA: Well, that's right. I mean at the very heart of this debate over the Ryan budget plan is this issue of Medicare. The Ryan budget plan would partially privatize Medicare, give seniors the option of using vouchers or premium support payments as the Ryan folks have called them to buy plans in the open insurance market that have been approved by Medicare.

That is going to be a tough sell down here in Florida. There are a lot of seniors, as you know, down here, Deb, and the campaign knows this. They've already put out a Web video this morning going after Romney and Ryan on all of this. But the Romney campaign has been pushing back on this notion that they're hiding Paul Ryan from the state of Florida. He's going to be coming down to the Orlando area this coming Saturday.

So we're going to get a full sense, I think, today and on Saturday how seniors are responding to that budget and those plans. It's going to be a hard sell for senior citizen voters who, by the way, Deb, right now naturally gravitate toward the Republican ticket. So this goes to why this was a very big gamble for Mitt Romney to choose Paul Ryan as his running mate.

FEYERICK: All right. Jim Acosta, live for us in St. Augustine. Thanks so much and, of course, when Mitt Romney speaks, we will certainly bring portions of that to you live.

Well, one thing is certain about Mitt Romney's choice of Paul Ryan on the Republican ticket, conservatives love him and Democrats wasted no time in showing they do not.

Here is Obama's senior adviser David Axelrod on CNN's "STATE OF THE UNION."

(BEGIN VIDEO CLIP)

DAVID AXELROD, SENIOR ADVISER, OBAMA CAMPAIGN: Congressman Ryan is a right-wing ideologue and that's reflected in the positions that he's taken, you know, the budget that he constructed for the House Republicans that would include trillions of dollars of new tax cuts skewed to the wealthy so that we're giving a millionaire $250,000 tax cuts while we're cutting college aid -- college aid for kids and research and development and a whole range of things that we need to grow.

(END VIDEO CLIP)

FEYERICK: Well, Bay Buchanan is senior adviser to the Romney campaign and she joins us this morning.

And, Bay, Congressman Ryan is clearly a Tea Party hero. He wants to dramatically cut or privatize safety net programs like Social Security, Medicare, Medicaid. He is Catholic and yet the nation's Catholic bishops and nuns have denounced his cuts in this budget plan as so severe that they would, quote, "hurt hungry children, poor families, vulnerable seniors, also at risk food stamps, child care programs." Has Mitt Romney locked in the conservative vote almost to the exclusion of many other groups -- seniors, women, for example, and he's going to need all those if he's to win.

BAY BUCHANAN, SENIOR ADVISER, ROMNEY CAMPAIGN: Yes. That was an amazing assessment you've just laid out there. Listen, what Paul Ryan is is a very bold, courageous young man who is willing to put serious issues on the table, unlike so many people in this town of Washington don't want to discuss things that are controversial, won't put a tough budget forward, but he's also a fellow that's willing to listen. He has lots of ideas, talks to the Democrats and says, OK, you don't like this. What do you think it should be?

And that's what Mitt Romney wants. He wants somebody on his team that's willing to put ideas on the table. But the bottom line is Mitt Romney will making the final decision on all of them. Paul Ryan was a terrific decision, has brought enormous energy to this ticket. You can see the excitement out there and that energy is contagious. It's going to spread to the Tea Party, to the independents and to Democrats who want fiscal sanity back -- returned to Washington and jobs returned to America.

FEYERICK: You know, and Bay, there's no question, you know, that he's putting forth bold ideas but are those ideas written in stone? Mitt Romney has said he would sign the Ryan budget if it came across his desk, but for a huge portion of America it's almost like ripping a very huge band-aid off without presenting anything else that can fill the gap in a way so that there's no sort of emptiness, no vacuum.

BUCHANAN: Well, listen, the -- as I said, we're not going to be stuck to the specifics of the Ryan plan. It's going to be the Mitt Romney plan that comes down in his budget. He's going to be proposing the budget. And certainly Ryan is going to have a lot of ideas and he's just brilliant when it comes to how this is going to be done.

But the thing is we welcome a debate on Medicare. We absolutely welcome it. The only person on either ticket that's ever cut $700 billion out of Medicare and that's for Medicare, the people on Medicare today, is Barack Obama. He's the one that's hitting, cutting Medicare today. And in addition to putting together a bureaucratic panel to decide what kind of care our elderly get, the answer is Barack Obama and his administration have failed the American people.

They do not have the answers and they don't have anything new and clear now that they have failed. What Romney/Ryan is fresh leadership, bold, decisive, and courageous. They will look at the problems and they recognize they're serious and they will give serious solutions to those. And all ideas will be on the table for a final cut, if you like.

FEYERICK: And, Bay, though, when you say that President Obama is the one who cut Medicare, under the Ryan plan, it's going to cost seniors a lot more money and that's what they're going to be focused on and that's one thing that could keep them from gravitating towards the Republican Party. That is something that you're going to have to contend with.

BUCHANAN: Yes.

FEYERICK: Also the female a vote, they see a lot of the -- a lot of Ryan's ideas as being anti-women. How do you see it?

BUCHANAN: Well, I -- listen, the most important thing for women is that they have jobs to take care of themselves and their families. That's the number one thing. And we know that the other ticket has completely failed to do that. But, again, the -- what we have here is, you know, Mitt Romney's plan says clearly, and Paul Ryan, that those who are presently on Medicare, those elderly that are now relying on that, we have to keep that commitment to them because they've made plans for retirement around that.

There are no changes to that unlike Barack Obama's cuts, which cut it today for those on it today. What we're talking about is seniors in the future. We want to make certain it's solvent, that it's there for them and that they have choices, possibly that might be even better than those that have it today.

So that's what we're looking at is one that is strengthens Medicare for all Americans because we do recognize the need to keep that policy in place and strong and so I think this debate is going to be a terrific one. At least it's certainly more -- it's more responsible debate than what we're hearing on the campaign of Obama which is just a tax and assault and lies and dishonesty.

Let's have a debate on the serious issues that Americans are facing today. We, our ticket, the Romney/Ryan ticket, has ideas, has proposals, is open-minded to other ideas. But the key is that we solve the problems. We discuss them. We consider options and that we solve them. And both Mitt Romney and Paul Ryan have enormous experience of doing this, are willing and courageous enough to move forward and turn this country around.

FEYERICK: OK. Well, Bay Buchanan, senior adviser to the Romney campaign, they both then certainly wanted to solve the problem. They're just coming at it from very different perspectives. Thanks so much for joining us.

BUCHANAN: You are sure welcome, Deb.

FEYERICK: Well, the president is on a bus tour of his own. Mr. Obama begins a three-day, seven-stop tour of Iowa. The first event this afternoon in Council Bluffs where he'll talk about the economy. At a campaign event in Chicago this weekend, the president welcomed Congressman Paul Ryan to the race.

(BEGIN VIDEO CLIP)

OBAMA: My opponent chose his running mate, the ideological leader of the Republicans in Congress, Mr. Paul Ryan. And I want to congratulate --

(CROWD BOOS)

OBAMA: No, no, no, no. Look, I want to congratulate Congressman Ryan. I know him. I welcome him to the race. Congressman Ryan is a decent man. He is a family man. He's an articulate spokesman for Governor Romney's vision. But it's a vision that I fundamentally disagree with.

(END VIDEO CLIP)

FEYERICK: Well, Vice President Biden is also on the campaign trail. He'll be in North Carolina.

And a dust storm rose through Phoenix covering the city in a blanket of gray. We will show you some remarkable time-lapse video of that storm.

(COMMERCIAL BREAK)

FEYERICK: And you are looking at a live picture there. Mitt Romney is getting ready to speak any minute now in St. Augustine, Florida. Of course, we will bring you some of his remarks live once he begins.

And later today, he'll address a crowd in Miami. His running mate, Paul Ryan, makes his first solo appearance as a vice presidential candidate in Des Moines, Iowa.

President Obama, also in the heartland, his fifth trip to Iowa is making seven stops over three days. And Vice President Joe Biden Stumps in Durham, North Carolina.

Well, Mitt Romney's pick of Paul Ryan to be his running mate is being described as bold but risky. Ryan is likely to firm up battle lines in large part because of his controversial budget plan. Let's talk about how that could play out on the campaign trail.

Joel Goldstein is a vice presidential scholar from the St. Louis University School of Law.

Welcome, Joe.

Well, we've studied vice presidential choices through the years. Has there ever been a running mate like Ryan who is more likely to define the presidential platform than in some respects the other way around?

JOEL GOLDSTEIN, AUTHOR, "THE MODERN AMERICAN VICE PRESIDENCY": Deb, I don't recall that we've ever had quite this situation before. The ideas identified that are identified with Representative Ryan seem to be the ones that will define the Republican platform in this election.

In 1996, Bob Dole chose Jack Kemp to emphasize supply side economics. But those ideas have been around for a number of years and weren't so clearly at that point identified with Secretary Kemp. Dwight Eisenhower chose Richard Nixon who had been very involved with the anti-communist idea in 1952, but, again, not so much so as Representative Ryan.

So I think this situation really is a unique one.

FEYERICK: You know, it's so interesting you mentioned Jack Kemp, obviously who was a mentor to Paul Ryan. But do you see is there the risk, perhaps, that Paul Ryan could eclipse Mitt Romney?

GOLDSTEIN: Well, I think it's difficult for a presidential candidate to be eclipsed by the vice presidential candidate. There will be three debates, only one presidential debate. The presidential candidates will receive a lot more attention.

But I think it does create a situation for Governor Romney that it's a little bit delicate. On the one hand, the Ryan economic plan really now is owned by Governor Romney. If he tries to retreat from it, is there some indications he may be doing a little bit, then it creates the impression that he's a little bit of changing his position, which is something that he's been accused of doing in the past. So it creates a difficult dynamic for him, I think.

FEYERICK: And Joe Biden welcomed Paul Ryan to the race. Both men were young when elected to Congress. Both men are Catholic. Both were hit by early tragedy when they were young. Ryan was 16 when his father died. Biden lost his wife and infant daughter.

How do each of them succeed separately in capturing the public's imagination? What do -- what do they have to do?

GOLDSTEIN: Well, it's difficult as the vice presidential candidate. I mean, you are playing a supporting role where you're championing the presidential candidate, you're trying to make the case to sell his leadership ability, and then you're also trying to make the case against the opposition.

The vice presidential candidate typically sort of leads the attack on the other ticket. But it doesn't mean that you have to do it in a nasty or negative way but I think that's the challenge both to champion the standard-bearer and to explain why the other ticket would be a disaster for the country.

FEYERICK: All right. Joe Goldstein for us in St. Louis -- thank you so much for those insights. Really appreciate it.

And we are looking at some live pictures of Mitt Romney who is getting ready to speak in St. Augustine, Florida. Of course, we will have that as soon as he steps to the mike.

Stay with us.

(COMMERCIAL BREAK)

FEYERICK: We know you're going to miss that melody.

Well, stellar Olympic games for American TV viewers ended way too soon deliberately, on purpose. The closing ceremony began with the traditional parade of athletes, but NBC cut away from the elaborate musical portion of the show before it was over to debut a new sitcom.

Well, that infuriated viewers cheated out of seeing several rock legends perform including the Who.

Finally, the Olympic flame was slowly extinguished, the 2012 games ended with the USA having won the most medals, 104 in all.

And the Olympics gave us so many unforgettable images but what the world did not see deserves notice. All the intricate preparations paid off. There wasn't a single act of terrorism or even a hint of a security problem.

Here's Amanda Davies on some of the signature moments of the games.

(BEGIN VIDEOTAPE)

AMANDA DAVIES, CNN CORRESPONDENT: London 2012, seven years of planning, 17 days of great stories, success, and celebration.

(MUSIC)

DAVIES (voice-over): It all started with the Daniel Craig, the corgis and, of course, the queen.

And finally, we got the answer to a long-running mystery.

(on camera): And then created history.

(voice-over): We said hello to a new generation.

(on camera): But all were welcomed with open arms.

(voice-over): We bid farewell to some true greats. Many were stronger than ever. Will were those who were older than ever. But others saw their bodies let them down.

(on camera): We've had our fair share of scandal with seating, with security, and even social media.

(voice-over): Sadly, there's been the drugs as well.

While some bent their bodies, others chose to bend the rules.

There's been royals and runaways and rain -- quite a lot of it. Then lightning struck once, twice, three times.

(on camera): There's been talk of a new world order. Not all of it deliberate but as far as the hosts are concerned, Britannia still rules away.

(CHEERS)

DAVIES (voice-over): Some flew -- some fell. Others were just left hanging.

UNIDENTIFIED MALE: Give me a ladder.

DAVIES: There's been love, there's been tears. We've had a whole lot of laughs along the way.

(on camera): So as we're left looking at the legacy of London 2012 -- Rio, it's over to you.

Amanda Davies, CNN, London.

(END VIDEOTAPE)

FEYERICK: Just great the strength of human spirit.

Well, the Vatican says it is a case literally of the butler did it. It is a tale of deceit and intrigue. Secret documents, a scandalous leak and one of the assistants closest to the pope.

(COMMERCIAL BREAK)

FEYERICK: Well, it's been one year since Congress' debate over the debt ceiling sparked a downgrade of the U.S. credit ratings by Standard & Poor's. It was supposed to hurt America's ability to raise money from foreign investors. But to most of the world, the U.S. is still the safest investment going.

Alison Kosik is at the New York Stock Exchange to explain -- Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Deb, you know the funny thing about this, that you'd never know it would happen that the credit rating was downgraded because the impact in the bond market. It never materialized what everybody expected to happen was that investors would sell treasuries because the U.S. was deemed less credit-worthy and could have a harder time paying back its debts.

Well, guess what? Instead the opposite happened. Investors have flooded into U.S. treasuries, pushing interest rates down. In fact, you look at the 10-year treasury rates now, they're at record lows.

So what that's done is it's pushed mortgage rates to record lows as well.

One trader puts it this way saying that investors realize, as bad as the U.S. economy is right now, the U.S. is still the prettiest girl at the party if you compare us to Europe and its financial situation -- Deb.

FEYERICK: You know, Alison, is there any chance if the U.S. is the prettiest girl at the party that it actually gets its AAA rating back anytime soon?

KOSIK: Well, just remember the U.S. still has AAA rating at Moody's and Fitch. Those are the other two major credit ratings agency. Now, when Standard & Poor's will restore the AAA status, that's really anyone's guess.

Now, the downgrade actually has as much to do with Congress' inability to reach an agreement on the debt ceiling as it did with the country's actual ability to repay its debt. Now, Congress is facing another test of that ability later this year and you can bet that Standard & Poor's is going to be watching very, very closely, again, when we smack our heads at the ceiling, the debt ceiling again -- Deb.

FEYERICK: All right, Ali Kosik at the New York Stock Exchange. Thanks so much.

Well, stories we're watching right now in THE NEWSROOM:

Today, the Vatican says the pope's butler Paolo Gabriele will be charged with leaking secret documents from Pope Benedict's apartment and passing them to an Italian journalist. The documents appeared in a best-selling book. According to a Vatican spokesman, a second man, a Vatican computer expert, will be charged as an accomplice.

And in Iran, the death toll now stands at more than 300 after two earthquakes struck the northwest part of the country over the weekend. More than 3,000 people have been injured by the quakes, which destroyed or damaged dozens of villages.

Sarah Palin will not address the Republican National Convention later this month. The former vice presidential candidate says, quote, "This year is a good opportunity for other voices to speak at the convention. I'm excited to hear them," unquote.

Palin has not said whether she will attend the convention in Tampa.

Well, Paul Ryan just stepped on to the biggest staining in the country and a lot are asking, just who is he?

Paul Ryan is a congressman from Wisconsin's first district, that includes much of southeastern Wisconsin, including Milwaukee. He grew up and still lives in Janesville, where a General Motors assembly closed about four years ago. His wife is a former congressional aide, now raising their three children.

He's been elected seven times, serving in Congress 14 years, and he's up for re-election this November. Ryan is the chairman of the House Budget Committee. And for a college job, he drove the Oscar Mayer Wienermobile.

Congressman Ryan's pick is described by some as high risk, high reward.

To break this all down, I am joined by two men with different opinions. L.Z. Granderson is a CNN contributor and CNN writer for ESPN. Will Cain is an analyst for 'The Blaze" and also a CNN contributor.

Good morning, guys. Well, first, your thoughts on Paul Ryan.

L.Z. GRANDERSON, CNN CONTRIBUTOR: Good morning.

FEYERICK: Will, where do you think Paul Ryan stands?

WILL CAIN, CONTRIBUTOR: Well, I know where Paul Ryan stands because he's put it out there boldly and specifically.

I'm excited about it, Deb. I'm excited about it shows leadership both from Mitt Romney in picking somebody who has been so specific and so bold in some of their solutions to our problems, and it's obviously -- I'm talking about Paul Ryan's leadership in touching issues that are politically unpopular.

Will this play well politically? That's the risk you reference, Deb. Will this work among the electorate?

Well, Americans have shown time after time that they want to solve our deficit problems but they don't want to touch entitlements. You can't have that both ways. Will they be willing to reward somebody who has risked talking about how to do that, how to reform entitlements?

That's what we'll find out with Paul Ryan. I hope we have an honest debate. I hope that's what we have in the next couple of months.

FEYERICK: L.Z., do you find it as -- do you find entitlements something the Democrats are not willing to deal with or just coming at it from a different perspective?

GRANDERSON: No, I don't think it's anything Democrats aren't willing to deal with. It's just a very, very sensitive conversation to have because how do you go about taking care of the country's least protected while trying to save money? It's a different conversation.

It certainly is one that the Democrats have been avoiding for political reasons as well and I agree with Will. I think Paul Ryan's presence will force some specifics from the Democrats' side.

There are a lot of things about Paul Ryan that I happen to like. I think we probably have a great deal in common. We're both Midwest guys who currently live in small towns.

But I do not agree with the way Paul Ryan thinks the country should be heading in terms of what we're cutting. I don't think that cutting out the poor as much as his budget proposal does, is what the country is about. I do think there needs to be a balance but I don't believe the way he's doing it is the way that's most compassionate.

FEYERICK: OK. And, gentlemen, we're looking at also we put up pictures of Mitt Romney who is in St. Augustine. We're going to take a quick listen. Just stand by for a moment.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: He knows how to solve problems. He did not just go to Washington and become involved in public service to try and make a name for himself. He instead went to make things better for the American people. He attacks problems and he recognizes that there are honest differences between honest people, and he looks to find ways to find common ground, to bring people together.

He's come up with ideas that are very different from the president's. The president's idea, for instance, for Medicare was to cut it by $700 billion.

(BOOS)

That's not the right answer. We want to make sure we preserve and protect Medicare.

The president's plan for our budget deficit was to make it worse. And Paul Ryan and I are going to get America to cut our spending and to finally get us to a balanced budget.

(APPLAUSE)

ROMNEY: Now, as you know, about four years ago, candidate Obama was speaking in Denver to the Democratic convention, and he got the up there and made a lot of promises. And he did it in front of those Greek columns.

I don't think he'll be standing in front of Greek columns at this year's convention. He won't want to remind people of Greece because that's where he's taking our country if we don't get off the road we're on.

(APPLAUSE)

He said that he would be able to measure progress and measure success by a whole series of his own standards. Number one was being able to create jobs. But I hope he understands that he hasn't done that -- 23 million Americans out of work or stopped looking for work and can't find the jobs they need to put food on the table for their families is unacceptable. It's a moral failure for a country as successful as ours not to have created these jobs.

Mr. President, by your own measure, you've failed to deliver the jobs Americans need.

(APPLAUSE)

FEYERICK: All right. And, Will and L.Z., you are listening to the president talk about -- sorry, you are listening to the presidential candidate, the presumptive nominee there, talking about what needs to happen.

It's so interesting because when I hear him say that the president cut $700 billion from Medicare, that would be something. If I were the president, I would say, look, I'm willing to look at these programs, these entitlement programs and see where we need to cut out the fat, where we need to trim. It's always the perspective, the position from where you're coming.

Will, when Mitt Romney just said, you know, that Paul Ryan brings people together, do you think he's going to bring people together or he's going to alienate a large block of voters?

CAIN: Well, I think we're going to learn a lot about the American people over the next several months. Certainly, we're going to be divided on Paul Ryan's solutions to our problems, right? There will be people like L.Z. and myself who have different opinions on whether or not these are the right solutions.

The one thing we should be able to come together on this is the right debate to have. This is an issue we can no longer pretend doesn't exist -- this problem with our mounting debt, our yearly deficit, and the role entitlements play.

What I hope doesn't happen, Deb, when this would be pulling people apart, if we have this debate and it boils down to Paul Ryan wants to throw grandma off the cliff and he wants to end Medicare as we know it. He wants to change Medicare for those people under 55 like myself who will not have it as it exists today in the future. We just -- that's not an option for us.

How it is today will not exist. So the question is how do we fix it? If we disagree on how to fix it? Great. But let's at least have the discussion.

FEYERICK: OK. So, L.Z., let me ask you this --

GRANDERSON: And I agree with the discussion.

FEYERICK: OK.

GRANDERSON: I was going to say I agree we definitely need to have a discussion and I want it to be an honest discussion.

FEYERICK: Right.

GRANDERSON: Mitt Romney has not been honest. He hasn't even been honest when he introduced Paul Ryan. He described him as someone who was thrust into politics because of their passion.

When you look at Paul Ryan's biography, politics is something he was interested in as far back as his teenage years when he was in high school. Even his own brothers say he used to talk about politics around the dinner table. So it's not as if he was thrust into politics. He wanted this career.

And if you check Paul Ryan's voting record, you will see an individual who wasn't about voting for cutting deficit. He actually voted to increase deficits. So, if we're going to have a conversation, then we want to have an honest conversation. Look at Paul Ryan's voting record and not just what he's talking about in terms of cuts. Look at what he voted to spend on, because he did a lot of spending in his 13 years in Congress.

FEYERICK: Right. I'm always uncomfortable when we use words like lies or dishonesty, because I do think that both sides are coming to this from very different perspectives. But this really comes down to an election about the size and scope of government, letting businesses thrive. But will that vision lift America up fast enough and create jobs because President Obama found that really he couldn't -- Will?

CAIN: Well, I mean, that depends on whether or not you think government is the primary driver of the economy and jobs or whether or not you think the private sector is and how much you enable both, right? And you're right. There's a differing opinion on who drives that vote and who is enabled. Is it the government and should be enabled throughout the economy to spur job growth or is the private sector, unencumbered, the better driver of job growth?

I do think we have a fundamental choice, a broad scoped debate to have here. And obviously you know where I stand. I think the private sector and the Republicans hopefully championing of that is the better answer.

FEYERICK: And, Will, very -- I'm sorry, L.Z., very quickly, do you -- do you believe that the American people have enough faith in business to create jobs especially given what we're seeing over the last couple of years?

GRANDERSON: Well, you've got to keep in mind that we've had more than 24 consecutive months of job creation. I know the mantra for the Republican Party is to keep saying President Obama hasn't created jobs. Well, the same metrics that you use to talk about the jobs that were lost, the same metrics that are used to talk about the jobs were created, and over two straight years, we've had job creation.

There are currently 3.5 million jobs that are going unfulfilled right now, unfilled right now. So it's not as if there aren't think jobs per se. The question is: does the American people have the training need in order to get those jobs out there, as well jobs in the future?

And I go back to Paul Ryan's budget, because in his budget he's cutting a lot of training out of it. He's cutting a lot of educational grants out of it. He's cutting the pathway that Americans need to get to those jobs -- 3.5 million jobs today, but also the jobs of the future. They're all going to be in science, technology, engineering, mathematics. American people need to be trained in that. You need the government's help to help train people to get to that place so they can be effective workers in the private sector.

FEYERICK: Hard to imagine there are 3.5 million jobs that remain unfilled he especially with so many folks out of work.

GRANDERSON: Absolutely, 3.5 million.

FEYERICK: Gentlemen, we could talk forever. Thanks so much as always.

CAIN: Thank you.

GRANDERSON: Thank you.

FEYERICK: Well, coming up, you know him for his unparalleled exploits in the water. We'll tell you why legend Michael Phelps will be trying to avoid the water in his next athletic endeavor.

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FEYERICK: So what's next for Olympic hero Michael Phelps? It looks like the decorated swimmer is already willing to try another sport.

Joining me from Los Angeles CNN's Showbiz correspondent, Nischelle Turner. Hi Nischelle. So Michael Phelps is out of the water and onto dry land.

NISCHELLE TURNER, CNN ENTERTAINMENT CORRESPONDENT: Hey.

You know Deb, there's been a ton of speculation about which reality show would scoop Michael Phelps up but I don't think I ever heard the "Haney Project" as an option but here we have it. This is the show where Hank Haney, one of the best golf coaches in the world, works with a celebrity on their golf game.

Now, Haney has already jokingly tweeted that he's heard Phelps' desire and work ethic won't really be a problem. But you know those 22 Olympic medals are not going to help much on the golf course and Phelps has been on Twitter saying that he's really looking forward to this. Well, when someone asked him if he had a golf handicap, he replied, "Yes, but it's not good, LOL."

So we'll have to see how he swings the clubs. Because the "Haney Project" featured Charles Barkley one season and anyone who has seen Charles Barkley play golf, well, you know my mama always said, if you don't have anything nice to say, don't say anything at all. So Deb, back to you.

FEYERICK: Absolutely. It will be very interesting. It will be very interesting to see how he handles something when he's sort out of his element. Ok but Nischelle will be back with us next hour.

TURNER: Yes.

FEYERICK: With a lot more showbiz headlines including the arrest of an NFL player and what punishment he is getting from his team.

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FEYERICK: And checking our "Top Stories".

Gabby Giffords is finally back home in Arizona, 19 months after she and 18 others were shot at a political event in Tucson. The former Arizona Congresswoman and husband Mark Kelly have moved into a home they recently bought in central Tucson. Giffords has spent most of her time since the shooting at medical facilities in Houston recovering from her injuries. Her husband says Gabby has been waiting for this day a long time.

And this morning Reverend Billy Graham is hospitalized in Ashville, North Carolina. The 93-year-old Evangelist is suffering from a pulmonary infection thought to be bronchitis. Graham's spokesman says he's being treated with antibiotics and is improving. Doctors expect him to remain in the hospital for another day or two.

And wildfire is a familiar and frightening story during the drought. This morning, two are burning in Northern California. Together, they've already burned 5,000 acres and they are growing. People had to evacuate a subdivision about 100 miles north of San Francisco as the fire advanced. Here's something suspicious. The fires started at about the same time along Highway 20 in Lake County.

And check out this picture. A CNN iReporter captured time-lapse video of a dust storm sweeping through the Phoenix area over the weekend. The storm brought wind gusts as high as 40 miles an hour.

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FEYERICK: Well, Saudi Arabia is bringing a new meaning to the phrase girl power. The country's planning to build a city exclusively for women run by women. This new city would prevent women from breaking the country's strict Islamic laws.

CNN's Nic Robertson has a preview.

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Deb, what the Saudi authorities are trying to do here is put more women into the workplace. Barely 15 percent of women are in the workforce in Saudi Arabia. That compares very poorly with the rest of the region; 60 percent or almost 60 percent, for example, here in the United Arab Emirates.

Why aren't they putting women directly into the workplace for men? Because Islamic law says you can't do that and this is the Saudi solution. The agency, the government agency that is funding this project says it's going to cost about $130 million to create this women-only work environment.

They're saying that there is space but perhaps up to 50 different businesses that could employ as many as 5,000 women at this one particular site in the east of Saudi Arabia. And they're saying that they will perhaps, if this works, then try and replicate it in as many as 40 other sites across the country.

So an effort to sort of redress the balance of the female to male workforce and a recognition as well that while Saudi Arabia puts a lot of money on certain -- certainly a lot of money into female education, they're over-producing female graduates, if you will, of the unemployed female workforce.

80 percent of them are university graduates. Until now, they've been geared to go very much into the education sector. Many of those not finding jobs are leaving the country. So this business plan, this women-only business city, is hoped to get women working in the pharmaceutical and the textile and in the -- in the food processing industry.

So it's an expansion of wealth for the roles for women but to find more space for all those educated women Saudi Arabia is producing -- Deb. FEYERICK: Nic Robertson. 80 percent of college grads, well, we wish them well.

Well, back in the U.S., $100 million in Manhattan and what would you buy? You could buy pretty much anything. We're going to go on a tour of the city's most expensive listing ever.

The next hour of NEWSROOM starts after a quick break.

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