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Tropical Storm Karen Targets Gulf Coast; Wild Capitol Car Chase Ends In Death; Veterans Break Through Barricades; Lawmaker Slams Park Ranger For Shutdown; Milk Prices Could Head Higher; Message To Washington; Crazy Obamacare Ads; Lawmakers Adjust To Shutdown; GOP Tries Funding Only Some Pieces Of Government

Aired October 04, 2013 - 10:00   ET

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

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FREDRICKA WHITFIELD, CNN ANCHOR: Happening right now in the NEWSROOM, one piece of the puzzle solved. We know the name of the woman who sent Washington into lockdown after dramatic car chase, but why did she do it?

Plus, your grocery bill might skyrocket if the government does not act soon. It's possible milk prices can could even double. And this --

UNIDENTIFIED FEMALE: Siri, would you like to be interviewed by CNN?

SIRI: This is about you, Susan, not me.

WHITFIELD: She is a trusted confidant who always has the right answers, but who is Siri really? Finally, the mystery voice revealed.

Also ahead, Shanad O'Connor warning Miley Cyrus stop licking sledgehammers, but Miley's response has O'Connor threatening to sue. The second hour of the NEWSROOM starts right now.

With Congress stuck in a shutdown stalemate, it's taken an act of nature to get some furloughed federal workers back on the job. Tropical Storm Karen is heading for the gulf coast and FEMA has recalled some of its workers to help people in the region. A hurricane watch is up from Grand Isle, Louisiana, to west of Destin, Florida.

CNN's Indra Petersons is on the beach at Pensacola, Florida. Boy, conditions have changed quite dramatically within the last hour.

INDRA PETERSONS, AMS METEOROLOGIST: Yes, and we're definitely seeing some changes here, Fredricka, you could see a lot of people trying to soak up those last few hours of sunshine along the beach. They were hoping this was going to be a nice beach weekend with the family, but they know better. Conditions are going to be drastically changing as we go through the weekend talking about landfall Saturday night, late Saturday night into early Sunday with now Tropical Storm Karen.

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PETERSONS (voice-over): Tropical Storm Karen is heading for the gulf coast this weekend taking a similar path to that of Hurricane Katrina, which devastated the gulf coast back in 2005. Katrina was a powerful category 5 storm. Karen will be a much weaker, like likely a low Category 1, when it makes landfall late Saturday or early Sunday. Florida and the gulf coast have been pummelled with bad weather and rain all summer long with some areas breaking rainfall records. Many areas certainly don't need more rain.

CHAD MYERS, AMS METEOROLOGIST: It has been a record breaking year for rain across the south. Trees are standing in mud. When that wind comes across 60, 70 miles per hour, those trees are going to fall down.

PETERSONS: Despite the ongoing government shutdown concerns over the storm are causing some FEMA employees to return to work.

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: FEMA has begun to recall currently furloughed employees necessary to serve functions of the agency that protect life and property as they prepare for potential landfall for Tropical Storm Karen.

PETERSONS: Karen is the 11th named storm in what has been an unusually quiet hurricane season this year with only Ingrid and Humberto becoming full hurricanes so far. Last year Superstorm Sandy hit the northeast in late October. Forecasters don't know why this year has been so quiet but say another situation like Sandy is extremely unlikely.

MYERS: This is really the peak or at least the end of the peak of hurricane season right now. We are still in it. There will be more storms this year.

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PETERSONS: Fredricka, the biggest change, the winds are picking up on the coastline. We have Karen pretty far offshore, still about 100 miles off the coast of Louisiana. Currently it has actually weakened 60-mile-per-hour winds. Still, though, it has the ability to strengthen into a Category 1 hurricane.

The important thing to note whether this is a strong tropical storm or weak hurricane, you're still going to be talking about very similar effects here, anywhere from 4-8 inches of rain is possible, isolated amounts up to 12 inches on the right side of the storm as it makes its way inland.

Also in the same sector, we talk about storm surge, 1 to 3 feet, 2 to even 4 feet. So that will be a concern. The biggest concern is going to be combined with the fact we've had all this rainfall, so many places in this region, 10, 15 inches above levels.

WHITFIELD: So saturated.

PETERSONS: Once you add in the strong winds, you're going to be talking about the trees just to be rooted right out of the ground and that's the big concern here moving forward. Taking a look behind me, we know it will not stay this way. Things will change quickly. WHITFIELD: It really does change on a dime sometimes. Just about 10 minutes ago it looked dark and now the clouds have lightened a bit and we know it will change again in a matter of minutes. Indra, thank you so much there.

All right on to the nation's capitol where gunshots, panic and chaos, all unfolded on Capitol Hill.

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UNIDENTIFIED FEMALE: My -- what the -- just happened?

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WHITFIELD: A police car slamming into a barricade in a wild, high- speed chase that sent lawmakers and tourists scrambling for cover. The surreal explosion of violence began a block from the White House and then ended up right near the U.S. capitol with police fatally shooting the woman who was behind the wheel and discovering there was a baby, unharmed, in the back seat.

CNN's Deborah Feyerick is working her sources and has more information about this woman who died and her struggles and what may have led up to this anyway -- Deborah.

DEBORAH FEYERICK, CNN NATIONAL CORRESPONDENT: Yes, well, Fred, we do have some new information. We're being told by a source on the investigation that investigators did find two different medications in Miriam Carey's apartment. One of the medications was to treat schizophrenia and symptoms of bipolar disorder. The other medication was an antidepressant.

Now the source says the boyfriend said that Miriam Carey had been delusional back in December. He had actually called police saying she was complaining of President Obama having placed her home under electronic surveillance and saying that the city of Stamford, where she lived, was under lockdown. She simply was behaving irrationally.

A mental examination was actually done at the time because the boyfriend was concerned that his child, that little girl you see there who is being taken from the vehicle, he was concerned that perhaps she was in danger, that her safety was at risk and that's why he called police in the first place. Stamford police were supposed to have a press conference at 11:00 today.

They've now canceled that press conference while this investigation is going on. But, again, Miriam Carey had been acting sort of crazy. We now know that there were two medications that were found in her home. The boyfriend who was questioned by authorities apparently said that she had stopped taking those medications -- Fred.

WHITFIELD: A sad situation. All right, thanks so much. Again, there was a 1-year-old in the back seat and as far as we know, unharmed physically. Thanks so much, Deborah.

The government shutdown now in its fourth day and for one lawmaker anger over the shutdown is moving from Capitol Hill to the World War II Memorial, which has been closed since the standoff began. Well, here is what happened when Congressman Randy Neugebauer of Texas faced off with one of the site's park rangers.

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REPRESENTATIVE RANDY NEUGEBAUER (R), TEXAS: How do you look at them and say -- how are you going to deny them access?

UNIDENTIFIED FEMALE: It's difficult.

NEUGEBAUER: Well, it should be difficult.

UNIDENTIFIED FEMALE: It is difficult. I'm sorry, sir.

NEUGEBAUER: Park service should be ashamed of themselves.

UNIDENTIFIED FEMALE: I'm not ashamed.

NEUGEBAUER: You should be.

UNIDENTIFIED MALE: It doesn't cost any money to come in here.

UNIDENTIFIED MALE: This woman is doing her job just like me. I'm a 30-year federal veteran. I'm out of work.

NEUGEBAUER: The reason you are is Mr. Reid --

UNIDENTIFIED MALE: No, it's because the government won't do its job and pass a budget.

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WHITFIELD: But what Neugebauer didn't mention, also, was that he actually cast a vote to delay health care setting up this shutdown and the closure of the national parks and museums including this one where earlier this week bus loads of veterans, some in wheelchairs, rode past the barricades and entered the memorial anyway.

Still to come, crazy campaigns on a serious topic.

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UNIDENTIFIED MALE: So what actually happens when dozens of plans compete for your business? You win.

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WHITFIELD: We'll show you how some states are pitching health care.

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WHITFIELD: All right, so the stalemate in Washington could mean higher prices at the grocery store because with Congress locked up not passing a budget, it means they're not likely to pass a new farm bill. And that means you could see higher prices at the grocery store for stuff like milk, cheese, and butter. Alison Kosik is at the New York Stock Exchange with more on this. Explain.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes. How high could prices go? Let's just talk about milk for a second, you know, I was in the grocery store last night and saw a gallon of organic milk for $5.39. Imagine paying double that, $10 and change for a gallon of milk? That is a possibility and here is why. Because the farm bill expired Monday at midnight, it was the same time the government shutdown.

What this it bill does is a lot of things including managing food stamps and regulating crop insurance and that helped give farmers a cash buffer and without it the cost of maintaining their livestock can easily outweigh the sales that they make and the bad part about this is there's this trickledown effect with this. Starting in January consumers will face the impact of the higher costs that farmers are paying to feed and transport their livestock.

One New York agriculture rep said that could mean in the coming months the price for milk may double from $3 to $6 per gallon, and that ripples to other milk dependent foods like cheese and butter. Analysts expect Congress to extend the law for another year or two instead of agreeing on a new bill, but the problem is it's not clear when that may happen -- Fredricka.

WHITFIELD: And that's tough to hear. There are so many other food prices that have been going up.

KOSIK: Exactly. I mean, the Farm Bureau says you look at food prices. They've increased about 3 percent so far this year. Some items that have seen retail increases include chicken up 61 cents to just under $4 a pound. Milk has gone up a quarter a gallon. Bread and orange juice prices, yes, they're up as well. And, you know, the problem feels even worse because our wages -- wages for Americans are still stagnant. So as we see the food prices go up, it hurts our pocketbooks.

WHITFIELD: That is a big pinch. All right, thank you so much, Alison Kosik.

The anger on the government shutdown isn't confined to Washington. All this week we have traveled across the country to ask what Americans think. And today CNN's Ted Rowlands is in St. Louis asking Middle America what's their message to Washington, how angry are they?

TED ROWLANDS, CNN CORRESPONDENT: Well, Fred, we're getting the same message pretty much in every city we go to. People are not happy with the shutdown and with the federal government. We're in St. Louis, and that means the St. Louis arch, which is a federal monument which means it is closed because of the shutdown.

I mean, 75 parks employees out of work, furloughed. Another 50 employees that work inside the arch also out of work. They run the trolley, the gift shop, et cetera, and then the visitors, the angry visitors including Douglas Brower. He had this on his bucket list. He's from New Jersey. Douglas, what message do you have for the folks in Washington? UNIDENTIFIED MALE: Well, I think if they would stop playing silly games like little kids and get this it done and straightened out. Otherwise come November or whenever they're up for re-election, don't worry, we're not voting for you.

ROWLANDS: And this was a trip you had planned?

UNIDENTIFIED MALE: Yes. This was on my bucket list and not going to get to do it, I guess.

ROWLANDS: You can see the outside. You can't ride up into the arch. This is Marla Maples also here. She is here from Pittsburgh to watch the Cardinals/Pirates game, but also wanted to see the arch and go up in it. Your message to Washington and lawmakers.

UNIDENTIFIED FEMALE: I think it's a shame that --

ROWLANDS: This is a family program.

UNIDENTIFIED FEMALE: But I think it's a shame that the American people and visitors to our country can't see these national monuments that we have around the country. They're beautiful to see. It's a shame we can't see them now.

ROWLANDS: Fred, this is really the theme that we've been getting is that people are disgusted. Their sense of disappointment, but there's also a sense of anger. A lot of people tune out Washington and expect the worst. But when they create something like this that actually impacts people's lives, it really does turn people off to the core and we've seen it all weeklong and we're seeing it again here in St. Louis today.

WHITFIELD: Clearly a giant ripple effect from the tourists to the people operating the trolleys to the business that is are relying on the tourism there and if tourists can't get to where they want to with the arch there, that means no business for the others. Ted Rowlands, thank you so much from St. Louis, a beautiful city.

All right, so after all you've heard about the government shutdown, how about you? What's your message to Washington? Make a little video for us if you don't mind and send it to ireport.com. As this shutdown continues, we may share your views here on CNN.

All right, the government is adding computer capacity to handle the unexpectedly high new health care law web traffic and the Obama administration says the system is being streamlined to improve performance. Meanwhile, several states are getting the word out with about health care exchanges through ad campaigns and, guess what, some of those ads a bit extreme.

CNN's Christine Romans joining us live from New York. To what extreme do you mean?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: You know they're either creative or whacky, I guess, depending on your taste. These states, Fredricka, that are trying to get the word out about these health insurance exchanges, trying to get their uninsured state residents in on the action. Check out this ad from Minnesota. It's Paul Bunyan waterskiing and they had this unfortunate run-in with a tree. Listen.

The tag lane is Minnesota, the land of 10,000 reasons to get health insurance, Fredricka. Look at this one from Washington State. You can see a raccoon jumping out of a trash can, this raccoon hurtling to a woman. Watch. It flies in slow motion through the air, teeth bared. This little girl names Chance shows up, there she is, taunting this woman.

Chance is featured in a number of that state's spots. I guess, she's meant to highlight the freak accidents that could befall anybody who doesn't have health insurance. This is from Oregon, listen. It's so nice, right? Happy.

WHITFIELD: Sounds like the Coke commercial from the '70s.

ROMANS: Folksy music videos. The tag line is long live Oregonians. Fredricka, what they all have in common, they never say the word Obamacare. They never say the word affordable care act.

WHITFIELD: What do they say? Then how do people know what they're talking about?

ROMANS: Well, exactly. They have a tag line with a web address to go to. I think ad agencies have apparently decided that to sell Obamacare you don't want to say Obamacare. Don't make it heavy and health care insurance. That's too scary.

WHITFIELD: But it's sending the message -- an interesting point of view. They think it's scary but at the same time sending the message we want to entice you to come to these sites.

WHITFIELD: Health insurance, signing up, getting it, understanding the forms, open enrolment --

WHITFIELD: That's scary. That right there is scary.

ROMANS: But, you know, they don't want to make it sound hard or difficult. They want as many people as possible to sign up, to take a look, to look at their policies. It's very happy. Health insurance is happy.

WHITFIELD: Be well. Stay well. Happy.

ROMANS: Exactly.

WHITFIELD: Got it. Got the message, a little chuckle or two from those ads.

All right, still to come, Republicans say they are doing everything they can to keep certain parts of the government up and running. Democrats say it's all a gimmick.

(COMMERCIAL BREAK) WHITFIELD: Welcome back to the NEWSROOM. I'm Fredricka Whitfield in for Carol Costello. The government shutdown now in its fourth day and with no signs of a compromise, top lawmakers are scrambling to adjust. President Obama had canceled a trip to an Asian Economic Summit. Secretary of State John Kerry will take his place.

And at this hour House Republicans are needing to walk through their party's next steps. Yesterday, the House passed several separate bills funding everything from clinical trials to veterans' benefits only to see them rejected by the Senate. Democrats continue to press for clean proposals with no changes to Obamacare.

And now there are international concerns because many people in charge of overseeing sanctions on Iran have been furloughed. Joining me now from Boston is former U.S. ambassador to NATO, Nicholas Burns. Good to see you, Ambassador. So how do these furloughs, in your view, impact the U.S. ability to monitor Iran?

NICHOLAS BURNS, FORMER AMBASSADOR TO NATO: I think they are having impact. Now Iran is not off the hook. The sanctions are in place. But when you can't staff fully the Treasury Department, which is responsible for implementing these sanctions and the State Department, you have a problem. This is a full-time job to maintain American, European sanctions on the Iranian government.

It's a vital national priority, and we can't be a part-time government. We're the world's global power, the most powerful country in the world and we've got to be operating at full strength and we're not, in my view, because of the unreasonable demands of the Republicans. So I hope they would relent and let the government go back to full strength.

WHITFIELD: And then they're not in full strength now in your view so how does this, I guess, travel overseas to all the U.S. interests and embassies? Are you concerned about security measures being taken at all of these U.S. interests?

BURNS: Well, sure. We have well over 275 embassies and consulates in the world. You want them to be at full strength. You want them to be able to deploy all of the security officials we need to protect our people and to protect our facilities and we can't do that right now. So there are real consequences from a government shutdown.

The government is vital for the success of this country every day of the week, not just some days of the week, and you saw, you mentioned your broadcast that President Obama has now been forced to cancel his trip to Asia. This is a consequential summit of all the leaders of the Pacific Rim and of Asia and we are a pacific power.

You have this really now unfortunate circumstance where the Chinese president, our competitor, Xiaping is traveling throughout these countries and our president cannot. We can't be a part-time power and that's what's happening. Our credibility will be affected by the shutdown.

WHITFIELD: The U.S. State Department says it has disrupted a training program for new officers. Are U.S. diplomats, in your view, at risk abroad?

BURNS: I think it's hard to say this. This would be issue specific. I don't want to over generalize things, but I do think the general proposition that the government is a full-time business, that you can't just do it part time, that we've got to have our people out doing their jobs every day of the week and now you have, you know, several hundred thousand government employees furloughed, they're not being paid.

They're not at work. They're not allowed to come to work. This is not a serious proposition for the greatest country in the world and I really hope they'll be able to resolve the problem in Washington. I think President Obama has been entirely reasonable about this and I just hope we can get back to being the kind of world power that we need to be.

WHITFIELD: Do you see this as an embarrassment, don't you, on the world stage?

BURNS: Well, you know, countries have credibility or they gain or lose credibility. And right now when the American president can't show up at a major international meeting, a very important one in Asia, it's going to hurt our credibility. It will send a signal, unfortunately, that the United States is not serious about Asia and you've seen President Obama has said Asia is our number one vital priority in the world. That's how the government shutdown has a real impact.

WHITFIELD: OK. All right, thanks so much, Ambassador Nicholas Burns, always good to see you. Appreciate it from Boston today.

So the Republican-controlled House of Representatives' latest attempt to reopen only parts of the government is being called a gimmick by some. The House passed bills that would fund only certain parts of the government. President Obama and Democrats insist that is the wrong path, but Republicans say it is about finding a middle ground.

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REPRESENTATIVE TIM HUELSKAMP (R), KANSAS: We have sent over bills to find the veterans to open our national parks, to take care of NIH, to make sure the National Guard can operate this weekend in Kansas. We're doing those things we think we can agree on, but you'll see in the votes the House Democrats are opposed to anything unless they get everything. And that's a pretty unreasonable offer.

REPRESENTATIVE STENY HOYER (D), HOUSE MINORITY WHIP: It's a gimmick. It's a ploy. It's politics as usual. The Senate will never take up these bills and the president has already said he would veto them.

(END VIDEO CLIP)

WHITFIELD: Joining me now to talk about it is Democratic Congresswoman Louise Slaughter of New York. She is also a ranking member of the House Rules Committee. So Congresswoman, good to see you. You hear the Republicans saying the Democrats -- REPRESENTATIVE LOUISE SLAUGHTER (D), NEW YORK: Yes.

WHITFIELD: I'm doing great. I wonder how you're doing. You heard them say Democrats won't negotiate, Democrats saying that this is a gimmick, these offerings from the Republicans. No one seems to agree. Do you see that there will be any middle ground that will be agreed upon? Will there be any sort of compromise?

SLAUGHTER: Fredricka, let me sort of sum up what I think is happening here. We had a rules committee meeting last night again. They really enjoy breaking the government down in these little pieces because they want to get only the government that they want, only they, themselves. Now shortly after lunch we are going to be voting I think unanimously in the House to retroactively pay the federal workers, as we should.

But the logical question then is if we're going to pay them why don't we let them go to work? I think the reason for that is as long as they keep this going and they know full well that the Senate is not the going to take this up. They get great satisfaction and believe, I think, that they're going to get away with saying to people, well, we did clinical trials. We did do something for the veterans and I want to tell you all the veterans programs that I've heard from are pretty sore about it.