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Gates Book Rips Obama's War Leadership; Rodman Celebrates Kim Jong-Un's Birthday; Private Payrolls Beat Economist Estimates; NYC Officers Charged with Disability Scam
Aired January 08, 2014 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: New book and the fresh fallout.
Plus Gabrielle Giffords speaking out this morning in a new op-ed. New details about her recovery on this, the third anniversary of the shooting in Tucson.
Also the SeaWorld ripple effect. Southwest Airlines now feeling -- now feeling the weight front and center. Protests happening this morning over its ties to the water park.
And Chicago on ice. Below zero. From high above Lake Michigan an amazing shot of the Windy City frozen solid this morning.
NEWSROOM starts now.
And good morning. I'm Carol Costello. Thanks so much for joining me. This morning a devastating new book is reverberating from the political trenches in Washington to the front lines of U.S. troops serving in harm's way.
It's a memoir from the former Defense secretary, Robert Gates, the man who led the Pentagon during two wars and under two presidents, George W. Bush and Barack Obama.
In the blunt and surprising detail Gates rips Obama's leadership and his most powerful White House insiders. That could cast long shadows on the next presidential election. Days before its release leaked details contains stunning criticisms from a man publicly praised by the president.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Bob, today you're not only one of the longest serving secretaries of Defense in American history, but it is also clear that you've been one of the best.
(END VIDEO CLIP)
COSTELLO: CNN chief national security correspondent Jim Sciutto has more for you.
(BEGIN VIDEOTAPE)
JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT (voice-over): In his new book titled "Duty: Memories of a Secretary at War," the former Defense secretary delivers an unfiltered, sometimes scathing critique of the White House.
On Afghanistan, the "New York Times" and "Washington Post" report Gates writes that by early 2010 he had concluded the president, quote, "doesn't believe in his own strategy and doesn't consider the war to be his. For him it's all about getting out."
The papers report that Gates, who served under both Presidents Bush and Obama, grew concerned about the president changing course, that the president was, quote. "skeptical if not outright convinced it would fail." But Gates also says he, quote, "never doubted Obama's support for the troops, only his support for their mission."
The book is not set for release until January 14th.
Gates is especially hard on Obama's advisers, the papers report calling Vice President Joe Biden, quote, "a man of integrity," but arguing, quote, "He has been wrong on nearly every major foreign policy and national security issue over the past four decades."
At times Gates is more flattering of Obama, praising him for making decisions, quote, "opposed by his political advisers or that would be unpopular with his fellow Democrats."
That's something Gates hinted applied to the president's war-making decisions to CNN's John King in 2012.
ROBERT GATES, FORMER DEFENSE SECRETARY: I think the reality is that there a is an acknowledgment on people's part and around the world that this president is willing to use military force when our needs require it.
SCIUTTO: And he calls the president's decision to launch the raid that killed Osama bin Laden, despite Gates' own doubts, quote, "one of the most courageous decisions I had ever witnessed in the White House."
On his former colleague Hillary Clinton, Gates makes a potentially damaging charge to a 2016 presidential run, saying, quote, "Hillary told the president that her opposition to the 2007 surge in Iraq had been political because she was facing Obama in the Iowa primary."
(On camera): The White House has now responded to some of the comments in the book. A spokesperson for the National Security Council saying, quote, "The president welcomes differences of view among his national security team and wishes Secretary Gates well. However, the White House does push back hard on the strong criticism of Vice President Biden, saying, the president relies on his good counsel every day.
Jim Sciutto, CNN, Washington.
(END VIDEOTAPE)
COSTELLO: It is unusual that a former cabinet member writes a scathing account of a president still in office. Even the president's political rivals are taken aback at Gates' candor.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), ARIZONA: I think people -- his words will have a significant impact. And frankly I'm a little surprised because a lot of times people are not quite as candid as it appears that his book is.
(END VIDEO CLIP)
COSTELLO: With me to talk about this CNN military analyst General Spider Marks and John Avlon, a CNN political analyst and the executive editor for the "Daily Beast."
Welcome to you both.
GEN. JAMES "SPIDER" MARKS, CNN MILITARY ANALYST: Good morning, Carol.
JOHN AVLON, CNN POLITICAL ANALYST: Hey, Carol.
COSTELLO: Good morning. Gates' account of President Obama's distrust of military leaders is especially galling to you, General. You say it's more than dismaying. Explain.
MARKS: Well, it's a little bit frightening. When the president assumed his role as president of the United States in January of '09 the nation had been at war at that point by about eight years and there was a significant amount of experience at the very senior levels but more importantly at the junior levels where the hard-lifting was really taking place.
And to distrust that type of hard-earned experience is very frightening. Clearly there has to be civilian control of the military, we get that. And the military certainly understands that in spades. But it's important for the president to reciprocate that understanding and to give the leaders of the military during this very difficult time what they need in the field to do their job.
COSTELLO: Well --
MARKS: And I think -- I think it was a problem that existed. And then the president got on board very quickly but for him to distrust the commanders that he puts in place openly to some of his advisers is not the right way to go.
COSTELLO: Was that totally surprising, though, John? We were in the midst of very -- two unpopular wars that Americans, frankly, didn't want anything to do with anymore.
AVLON: Yes, Carol, I think that's the key point. And, you know, Secretary Gates makes it clear he has respect for President Obama's decision making ability, he was disturbed by the degree of politicization in the White House. But of course the Iraq was deeply polarizing. President Obama's opposition to it is one of the things that elevated him to the presidency. And so while he deserves great credit, I think, for keeping Secretary Gates on in that degree of continuity, it's not a shock that there wouldn't be that kind of pushback on the staff level.
And if it rose to the level of vice president, that itself is understandable. But we're walking a line here. There is politics. We do have civilian control in the military, of course. And elections have consequences.
And while the president ultimately doubled down in Iraq for a time -- in Afghanistan for a time the withdrawal from Iraq was a foregone conclusion. So there would be that tension but the continuity of the military and a new commander in chief.
COSTELLO: Yes, but --
MARKS: I would just -- Carol, I would say I disagree with John on one particular point and that the withdrawal from Iraq was not a foregone conclusion. We still had an opportunity to establish a status of forces agreement with the Iraqis that would have allowed us to establish a presence that might have been able to avert some of what we see in Iraq right now. So I think we've got to give ourselves a little bit of room here on -- in terms of what the potential outcome --
AVLON: Yes, but -- but the election predicated an ultimate drawdown. The question of the residual force, the president actually campaigned on keeping residual force. And the fact that that didn't end up occurring for the SOFA agreements is a complicated fact of history and probably a tragedy given what's going on in Iraq right now. But the elections certainly was a mandate about that war to some extent.
COSTELLO: All right. Thanks to you both. John Avlon, General Spider Marks, thank you so much for joining me this morning.
MARKS: Thank you.
COSTELLO: Four U.S. -- you're welcome.
AVLON: Thank you, Carol.
COSTELLO: Four U.S. troops are dead after a helicopter crash off the coast of England. The crash happened Tuesday night during a training mission. An investigation is expected to take several days. The Pentagon not releasing the airmen's names until their families are notified.
Today the supreme leader of North Korea, Kim Jong-Un, celebrates his 31st birthday and Dennis Rodman is celebrating right along with him.
The former NBA player sang "Happy Birthday" and also waved and bowed to his so-called dear friend. Rodman and a team -- and a team of former NBA players played an exhibition basketball game against North Korea this morning, and get this, Sky News is reporting that Rodman's team lost. Rodman is coming under fire by U.S. officials because he's rubbing elbows with North Korea's elite and criticizing Kenneth Bae, an American imprisoned in North Korea.
Bae's sister Terri Chung spoke out last night -- or spoke out last hour, rather, on CNN's "NEW DAY."
(BEGIN VIDEO CLIP)
TERRI CHUNG, SISTER OF KENNETH BAE: I was shocked by his words and I think -- I don't think Dennis Rodman -- I'm not sure where he is getting his information and I'm not sure how much credence I would give to his outbursts. I don't think -- he's certainly not a diplomat and not an authority on this case at all.
And I don't think he has any -- in any kind of position to remark on his case especially after making -- making it clear he has no intention to help.
(END VIDEO CLIP)
COSTELLO: CNN Pentagon correspondent Chris Lawrence has more for you. He's live in Washington this morning.
Hi, Chris.
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Hey, Carol. Yes -- Rodman's comments are still rippling throughout Washington this morning. There's been a lot of buzz about his so-called basketball diplomacy. But I think, you know, Kenneth Bae's sister really put things in perspective when she told CNN this isn't a game.
(BEGIN VIDEOTAPE)
LAWRENCE (voice-over): Even for a man built to shock and surprise, Dennis Rodman has one-upped himself.
DENNIS RODMAN, FORMER NBA PLAYER: We have to go back to America and take the abuse. Do you have to take the abuse? Well, we're going to take -- do you, sir? Let me know.
LAWRENCE: His eruptions on CNN's "NEW DAY" is sparking widespread reaction.
RODMAN: I was just saying, no, I don't give a (Expletive Deleted) what the -- I don't give a rat's ass what the hell you think. I'm saying to you, look at these guys here. Look at them.
LAWRENCE: Rodman drew disdain from the White House.
JAY CARNEY, WHITE HOUSE PRESS SECRETARY: I'm not going to dignify that outburst with a response.
LAWRENCE: And was disavowed by U.S. diplomats.
JEN PSAKI, STATE DEPARTMENT SPOKESPERSON: Mr. Rodman is not there representing the United States. People should remember that when they look at his comments and hear his comments.
LAWRENCE: Rodman has been under fire since he announced plans to celebrate Kim Jong-un's birthday with a celebrity basketball game in North Korea.
REP. ELIOT ENGEL (D), NEW YORK: It would be analogous to having tea or lunch with Adolf Hitler.
LAWRENCE: But some say he crossed the line with an accusation against Kenneth Bae, an American sentenced to 15 years in a North Korean labor camp. Rodman implied to Chris Cuomo that Bae deserved his fate.
RODMAN: If you understand what Kenneth Bae did.
CUOMO: Yes?
RODMAN: Do you understand what he did --
CUOMO: What did he do? You tell me.
RODMAN: -- in this country?
CUOMO: You tell me. What did he do?
RODMAN: And -- no, no, no, you tell me. You tell me. Why is he held captive?
CUOMO: They haven't released any charges.
RODMAN: Here in this country. Why?
CUOMO: They haven't released -- they haven't released any reasons.
UNIDENTIFIED MALE: Well, listen. Listen.
RODMAN: Let me do this.
ENGEL: It's outrageous. It's ridiculous. It's shameful. Those are three good words, and they will describe accusing Mr. Bae of a crime.
CHUNG: Just outraged.
LAWRENCE: Bae's sister told CNN's Anderson Cooper Rodman's words are hurting his cause.
CHUNG: It's really heartbreaking that somebody was -- who was in a position to help a fellow American refused to do so and then continue to do some more harm than good.
LAWRENCE: As for the other former players traveling with Rodman?
DAVID STERN, NBA COMMISSIONER: They were blinded by the payday.
LAWRENCE: NBA commissioner David Stern questioned the motives of everyone involved.
STERN: For what I would guess is a relatively large sum of money, they have agreed to go and give a birthday present to the leader.
(END VIDEOTAPE)
LAWRENCE: And Stern believes some of those players had no idea what they were really getting into.
This trip is being bankrolled by Paddy Power, it's a betting firm that actually cut ties with Rodman last month but it's still fulfilling its contractual obligations on this particular trip -- Carol.
COSTELLO: That's an interesting twist. And have you seen this, Chris? On the way to practice yesterday Rodman showed off a vodka bottle. See it there? It's emblazoned with his image and that of his dear, dear friend. I'm sure he'll be taking one home. I don't know.
But I wanted to ask you, how does Rodman's role in North Korea complicate things for the Pentagon, for the State Department?
LAWRENCE: Well, it's frustrating because people like former ambassador Bill Richardson who was able to travel to North Korea and speak with Kim Jong-Un's father when he was in power, there were at least some channels for some sort of negotiation. There is none right now with Kim Jong-Un. No one has been able to get close to him except for Dennis Rodman.
And I think there is some frustration when the U.S. is not able to send an envoy to negotiate for Kenneth Bae's release and yet Dennis Rodman is there in North Korea basically blaming Bae for being in the situation that he's in. It's a frustrating situation all around.
COSTELLO: Chris Lawrence reporting live this morning. Thank you.
The polar vortex that has gripped much of this country this week is on its way out, but it's sure taking its time. Check out this water main break earlier near Atlanta. Ice forming on the power lines as water shoots up into the air. The temperatures were hovering around 20 degrees. All that water froze when it landed.
This picture is from a pilot flying near Chicago. It shows a frozen Lake Michigan from several thousand feet in the air.
Isn't that beautiful? Chicago looks like a block of ice there.
And in upstate New York people are digging out from more than a foot of snow. It's supposed to start warming up, though, by Saturday. Most of the country's temperatures will be back to, quote, "normal."
Three years ago today a gunman opened fire at a campaign event in Tucson, Arizona, critically wounding former Arizona Congresswoman Gabby Giffords and killing six others. Today in a "New York Times" op-ed Giffords is revealing the progress she's made since the incident including movement in her right arm.
And she compared her ongoing recovery to the efforts to reform the nation's gun laws, writing in part, quote, "Our fight is a lot -- our fight is a lot more like my rehab. Every day we must wake up resolved and determined. I am committed to my rehab and I'm committed to my country and my resolution standing with a vast majority of Americans who know we can and must be safer, is to cede no ground to those who would convince us the path is too steep or we too weak," end quote.
That op-ed in the "New York Times" if we want -- if you want to read more.
Still to come in the NEWSROOM, a December surge in hiring. How big is it?
Christine Romans is here.
CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Carol, best private sector hiring in December all year. And construction jobs best since 2006. I'll tell you where else the hiring was at the end of the year when we come back.
(COMMERCIAL BREAK)
COSTELLO: Checking our top stories 17 minutes past the hour.
A Russian research vessel is finally free from thick ice in Antarctica. The ship got stuck on Christmas Eve and 52 of its passengers were rescued last week. A Chinese icebreaker that helped in the rescue also got stuck but it also escaped the ice about an hour after the Russian ship did.
The grandson of one of the founders of a Vail ski resort was killed in an avalanche in Colorado. Officials say 24-year-old Tony Siebert died in an avalanche prone back country area near Vail Mountain. His friends posted this tribute video of him. Three other people were trapped by the avalanche but they escaped unharmed.
No relief yet for many weary JetBlue passengers. The airline says all passengers whose flights were cancelled Monday should make their intended destinations by tomorrow. JetBlue is operating normally but has a massive logjam of stranded passengers. The airline cancelled hundreds of flights and grounded all planes in the New York City area and Boston area on Monday night. JetBlue is offering frequent flyer points and $50 credit for future flights to those impacted.
The economy got one last Christmas present. A new report just out last hour says private hiring surged by 238,000 jobs in December, making December the strongest month for private hiring in all of 2013.
CNN chief business correspondent Christine Romans is in New York with more.
Good morning, Christine.
ROMANS: Good morning, Carol. This is a report from ADP, that's the private payroll processor. You know, like cut the checks so they do a report every month about, you know, what they're seeing out there. The big government report comes Friday. What they found 238,000 private sector jobs created in December. And, Carol, that would be the strongest private sector jobs growth all year. A couple of numbers I found in this report that are pretty interesting, 108,000 jobs, they say, created from small business, that's 50 or fewer employees, those are the small companies that just or below the Obamacare guidelines for providing health insurance. There seemed to be a lot of job creation in those very small companies.
And also in construction, Carol. Some 48,000 or so -- 46,000 to 48,000 jobs created in construction. That would make it the best month for construction workers since 2006. So that's where we saw some strength there.
We'll know for sure what the federal government says on Friday when we get the December jobs report. But it looks like, at least from this report, hiring picking up at the end of the year -- Carol.
COSTELLO: All right. Christine Romans, many thanks.
Still to come in NEWSROOM retired New York cops and firefighters busted. Most accused of a 9/11 disability scam.
Susan Candiotti is on the story.
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Claiming to be suffering from post-traumatic stress following the 9/11 terror attacks to get full time disability. Prosecutors are accusing about 100 police and firefighters of doing that. I'll have details coming up in a live report.
(COMMERCIAL BREAK)
COSTELLO: If true it is a despicable thing to do, using 9/11 to illegally collect worker's comp. New York police officers and firefighters say they were fully disabled and could no longer work. But the pictures tell a far different story.
The man in the middle is one of more than 100 retired officers accused of cheating the system out of hundreds of millions of dollars. He didn't look so disabled to me, either. I mean, this money is meant to go to people who deserve it.
CNN's Susan Candiotti has more on this.
(BEGIN VIDEOTAPE)
CANDIOTTI (voice-over): The accused New York City police officers and firefighters were supposed to be disabled, unable to work, suffering from severe depression and anxiety. More than half claiming post- traumatic stress after the 9/11 terrorist attacks. But photos filed by prosecutors paint a very different picture.
This retired officer flipping the bird on a water craft. This defendant playing basketball and this one deep sea fishing. Retired cops, firefighters and alleged ringleaders pleaded not guilty. Defense lawyers say photos don't prove anything. JOSEPH CONWAY, DEFENSE LAWYER: If you have somebody fishing on one particular day that doesn't mean they do not have some kind of psychological illness.
CANDIOTTI: But prosecutors contend it was massive fraud. A Social Security disability scheme designed to rip off taxpayers to the tune of hundreds of millions of dollars dating back to 1988.
CYRUS VANCE, MANHATTAN DISTRICT ATTORNEY: This fraud not only forced federal taxpayers to finance the lifestyles of New York scammers, it also took away, importantly, from the already limited resources we have for people who actually suffer from psychiatric disabilities.
CANDIOTTI: Authorities charged four masterminds with recruiting and coaching applicants on what to tell doctors, even duplicating forms, sometimes in the same handwriting.
"I am unable to perform any type of work activity in and out of the house" matches another form word and word. Documents charge the accused ringleaders got kickbacks when defendants received their disability checks. They were also warned not to withdraw too much at once to avoid suspicion.
Authorities say videos and wire taps will help prove their case.
The man in the middle, demonstrating martial arts, is a retired officer allegedly on permanent disability.
(END VIDEOTAPE)
CANDIOTTI: Prosecutors say the defendants collected on average about $50,000 a year on top of state disability pensions in many cases. And some of the accused did have legitimate disabilities but to qualify for full Social Security disability they had to prove they couldn't work at all.
And apparently according to prosecutors, Carol, that was a lie.
COSTELLO: It's just unbelievable. Is there any way to get any of this money back?
CANDIOTTI: Well, of course, it depends. If prosecutors win their case they promise to get the money back which could be difficult and get it to those who certainly deserve it. And of course it just such a -- it makes all the people who legitimately need this money look bad, people who actually do deserve to get the money.
COSTELLO: Susan Candiotti, reporting live from New York today.
Still to come in the NEWSROOM, disturbing new details about charges prosecutors did not want to lay on the big banks.
Evan Perez has more on why some banks may be too big to jail -- Evan.
EVAN PEREZ, CNN CORRESPONDENT: Hi. Yes, we have -- upcoming we have some details of some meetings between regulators and prosecutors on whether or not JPMorgan will face charges.
We'll be right back with that.
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