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Lou Dobbs Tonight
Iran Tests Missiles Capable of Hitting Israel, U.S. Bases; Bush Criticized for Not Nominating National Intelligence Director
Aired August 11, 2004 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Tonight, an alarming development in the Middle East. Iran has successfully test fired a new missile that can strike Israel and U.S. bases on the region.
(BEGIN VIDEO CLIP)
JACK SPENCER, THE HERITAGE FOUNDATION: Iran is developing ballistic missiles. Iran is supporting and developing weapons of mass destruction programs.
(END VIDEO CLIP)
DOBBS: We'll have a special report on the emerging threat from Iran. I'll be talking about Iran, the war on terror and intelligence reform with Congresswoman Jane Harman, ranking Democrat on the House Intelligence Committee.
In our special report, The Best Government Money Can Buy, the special interest groups that make the biggest contributions to the Bush and Kerry campaigns.
And in our Face Off tonight, we debate whether nonprofit political groups are too powerful.
Also tonight, only in America, a hot new reality TV show with an incredible twist. The contestants are illegal aliens; the payoff: the chance of winning legal status in this country.
(BEGIN VIDEO CLIP)
I think it's totally bizarre. It's like here I am, I'm illegal, come and get me.
(END VIDEO CLIP)
DOBBS: And two massive storms tonight are building and targeting Florida. Governor Jeb Bush has announced a state of emergency and the director of the National Hurricane Center, Max Mayfield, joins us to tell us what the people of Florida can expect.
ANNOUNCER: This is LOU DOBBS TONIGHT for Wednesday, August 11. Here now for an hour of news, debate and opinion, Lou Dobbs.
DOBBS: Good evening.
Iran today announced a dramatic and alarming step forward in its program to develop missiles that can strike Israel and U.S. bases in the Middle East. The Iranians said they successfully test fired a new generation of missile that is capable of carrying a warhead more than 800 miles.
This development is all the more troubling because, at the same time, the United States says Iran is actively trying to develop nuclear weapons, and Iran is a strong supporter of radical Islamist terrorism.
Kitty Pilgrim reports.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN BUSINESS CORRESPONDENT (voice-over): Today, Iran said it successfully tested its latest Shahab III ballistic missile. Iran's missiles are routinely painted with threats against the United States and Israel, such as "We will stamp on America," "We will wipe Israel from the face of the earth."
CHRISTOPHER PREBLE, CATO INSTITUTE: It's serious certainly for U.S. forces in the area, and it's certainly serious for Israel. The missile has been known to exist for some time. Apparently, they tested it about two years ago. The presumption is that this new model has some improvements.
PILGRIM: Many think it's time for the world to wake up.
SPENCER: I think we need to recognize and to not be afraid to say, look, Iran supports international terrorism, Iran is developing ballistic missiles, Iran is supporting and developing weapons of mass destruction programs, and none of those things are acceptable.
PILGRIM: But, so far, the international community has been trying to cajole Iran into allowing inspectors to carry out routine inspections on its nuclear sites.
MICHAEL DONOVAN, CENTER FOR DEFENSE INFORMATION: The Europeans have to pony up to the table and be willing to downgrade their diplomatic and economic relations with Iran, if the Iranians don't play ball.
PILGRIM: In recent weeks, Tehran has stepped up its defiance to the world, denying U.N. inspectors access to several areas just before the IAEA report to the United Nations. Iran flatly refuses to give up its nuclear program, saying it's not for weapons, but for energy purposes.
But Iran has the second largest natural gas reserves in the world and the fifth largest crude oil reserves. Why would Iran need nuclear energy? U.S. Undersecretary John Bolton pointed that out to Congress a few weeks ago.
JOHN BOLTON, UNDERSECRETARY, STATE DEPARTMENT: Because I think when you see the breadth, the scope of this program, it's easy to understand why we conclude that Iran has absolutely no need for this activity unless it's in an aid of a nuclear weapons program. PILGRIM: Iran has been repeatedly caught in lies. At first, Iran denied it had enriched uranium. Then, when it was found, Iran claimed it was because of contaminated parts it had imported from Pakistan.
Military experts debate the possibility of a preemptive strike. Could Iran's nuclear reactor be eliminated by air strike, if necessary? There is a precedent. In 1981, Israel attacked and destroyed the Osirak nuclear reactor in Iraq, eliminating that threat to the region. But the consensus is Iran's program would be more difficult to eliminate.
MICHAEL O'HANLON, THE BROOKINGS INSTITUTION: Iran has a similar reactor that could be successfully attacked by the air from aircraft, but it also has underground enrichment facilities, and those are much harder to attack.
(END VIDEOTAPE)
PILGRIM: Iran claims its missile tests are for deterrent purposes. It says it's not trying to develop nuclear warheads for them, but Iran admitted today they are trying to boost the range and accuracy of the missiles in direct response to Israel's anti-missile capability -- Lou.
DOBBS: Kitty, thank you.
Iran today escalated its bellicose rhetoric against the United States as well, accusing this country of committing one of the worst crimes against humanity in the Iraqi city of Najaf.
Today, U.S. troops were apparently on the verge of launching a new offensive in Najaf against supporters of the radical cleric Muqtada al-Sadr, but, at the last minute, the troops held back.
The military says troops have already killed hundreds of al- Sadr's gunmen since the intense fighting began in Najaf last week. John Vause reports.
(BEGIN VIDEOTAPE)
JOHN VAUSE, CNN CORRESPONDENT: U.S. military officials in Najaf are making it clear that along with Iraqi national forces, they're preparing for a major confrontation with Muqtada al-Sadr's men who are holed up inside this sacred Iman Ali mosque.
One U.S. senior military commander says that Iraqi National Guardsmen have been training alongside U.S. Marines and soldiers. He says they're better prepared now than they were back in April, the last time there was an all-out offensive against al-Sadr's men.
If there is to be an offensive, it is likely to be led by Iraqi troops, an attempt to minimize the backlash, the political and religious backlash, if, in fact, the mosque is raided.
In Najaf today, U.S. warplanes and helicopters have been in the skies overhead. They've hit a number of targets on the ground. There have been clashes, too, throughout the city. Iraqi National Guardsmen are also manning checkpoints.
No one in the city is talking cease-fire, not the U.S., not the interim Iraqi government, and certainly not the radical Shia cleric Muqtada al-Sadr.
Earlier today he called on his followers to continue the fight, even if he is captured or killed. Fighting across Iraq has fled, too, in Baghdad, also in Basra, in the Mosul Province, in Diwaniya and in Kut. According to the Iraqi health ministry, 57 people are dead in the last 24 hours. Another 323 have been wounded.
John Vause, CNN, Baghdad.
(END VIDEOTAPE)
DOBBS: Nearly 20,000 American troops are fighting insurgents in Afghanistan. Today, Defense Secretary Donald Rumsfeld made a surprise visit to some of those troops. The defense secretary said the coalition is winning the war against terrorism in Afghanistan, but military officials said they expect more insurgent attacks before a general election in Afghanistan that will be held in October.
Secretary Rumsfeld also said Congress should not rush the introduction of major reforms of intelligence. Today, two key congressional committees held hearings about the intelligence reforms proposed by the September 11 commission. Lawmakers also focused on President Bush's domination of Congressman Porter Goss as the new CIA director.
Joe Johns reports.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT (voice-over): One day after his nomination to head the CIA, House Intelligence Committee Chairman Porter Goss gave up the gavel at a hearing on the 9/11 commission's recommendations.
REP. PORTER GOSS (R), CIA DIRECTOR NOMINEE: I believe it's appropriate to relinquish my position as chairman of the Permanent Select Committee on Intelligence during the pendency of the confirmation process of that nomination effective immediately.
JOHNS: Some at today's hearing, including the top Democrat on the 9/11 commission, sounded like Goss was a shoe in.
LEE HAMILTON (D), 9/11 COMMISSION VICE CHAIRMAN: And I just want to say that all of us should recognize that he takes the helm of this great agency of government at an exceedingly challenging time.
JOHNS: But Goss still has to be confirmed by the Senate, where Democrats are threatening tough hearings. They say he's too close to the White House and too partisan. SEN. CARL LEVIN (D), MICHIGAN: The independence and objectivity issue and -- whoever's appointed for whatever administration. We have to rely on that person to give the unvarnished facts.
JOHNS: However, Democrats are reluctant to flat out oppose the nomination, fearing they'll be labeled soft on national security. Two years ago before the midterm elections, Republicans targeted Democrats who raised concerns about aspects of the new Homeland Security Department.
Some Democrats are trying to shift the focus away from the Goss nomination and back to the 9/11 commission report. Democrats charge the Republican leadership and the administration are dragging their feet on the recommendations.
REP. ELLEN TAUSCHER (D), CALIFORNIA: It is vitally important that we stand behind this report, that we begin to move momentum, and that we not allow the entrenched bureaucracy that we're seeing give us the push-back.
JOHNS: Congressional Republicans and the administration pushed back.
REP. PHIL GINGREY (R), GEORGIA: So the president certainly has not been lollygagging around in regard to his responsibility.
STEPHEN CAMBONE, UNDERSECRETARY OF DEFENSE FOR INTELLIGENCE: We're moving with all the deliberate speed this requires, with the kind of hard work that you would and the American people, I think, would appreciate.
(END VIDEOTAPE)
JOHNS: Democrats want a special session of Congress during the August recess to work on the recommendations, an idea endorsed by Democratic presidential candidate John Kerry. Today, the Republican House majority leader, Tom DeLay, called the Democrats' ideas "a cheap excuse for a real security agenda" -- Lou.
DOBBS: Joe, thank you.
Joe Johns from Capitol Hill.
Coming up next, hear more on intelligence reform, the new CIA chief and the growing threat from Iran. Congresswoman Jane Harman, the ranking Democrat on the House Intelligence Committee, joins me.
Also ahead, the biggest donors to the Bush and Kerry campaigns and what they receive in return. Our series of special reports, The Best Government Money Can Buy.
And a new reality show. Sinking to a new low? These contestants aren't playing for fame or fortune. They're illegal aliens playing for a shot at legalized citizenship.
Stay with us. (COMMERCIAL BREAK)
DOBBS: My guest tonight says it's essential Congress act now to implement the recommendations of the 9/11 commission. Congresswoman Jane Harman is the ranking Democrat on the House Intelligence Committee. The committee heard testimony today from the chairman and vice chairman of the commission. She joins us tonight from Washington.
Good to have you with us.
REP. JANE HARMAN (D), HOUSE INTELLIGENCE COMMITTEE: Nice to be on this show, Lou.
DOBBS: Congresswoman, the idea that your chairman could be the new head of the CIA -- does that sit well with you? Do you think he's the right man for the job?
HARMAN: Well, I think it's the wrong job. This is not to say anything negative about Porter Goss. That's not where I'm going. What I -- where I'm going is that we have an opportunity to restructure our intelligence community.
The CIA is only one of 15 agencies, and the goal, according to the 9/11 commission and all the prior commissions, some of which I've been part of, is to restructure that whole system so that there's one person in charge so that we connect the dots the next time, which was our big mistake leading up to 9/11.
By naming Goss to head one of the 15 stovepipes, as they're called -- this doesn't move the ball forward in terms of fixing the problem and preventing the next 9/11.
DOBBS: But, traditionally, historically, the head of the CIA has been the director of intelligence, the most important voice overseeing American intelligence. You feel that Porter Goss is qualified and will do an effective job in the role as you -- as it is traditionally formed at least?
HARMAN: Well, again, I feel that Porter Goss has many qualifications. I've served with him on the Intelligence Committee for eight years, but the business model we're talking about was invented in 1947 to fight a threat, the Communist menace, that we defeated in 1989. We never revamped the job. The CIA director does get a lot of ink, but his actual authority -- or her actual authority -- is over 15 percent of the intelligence budget. The rest is run by the Pentagon.
So my point is, however good Goss is, he's not going to have a chance to succeed, if we don't change the structure, and the president is missing an opportunity to step up with specificity and articulate whether or not he will embrace the recommendations of the 9/11 commission, not just the report, and help make Congress act. That's what's necessary, and that's what I'm not seeing.
DOBBS: Is the public and media focus turned to the recommendations of the 9/11 commission. The Bush administration and its representatives started talking about caution and slowing down, and at precisely the same time, the Democrats talked about immediately implementing -- and Senator Kerry, presidential candidate, talked about immediately implementing -- them.
Is there, in your judgment, good reason, partisan politics aside, to be careful here, or do you believe that the recommendations of the 9/11 commission should be implemented period?
HARMAN: Well, I wouldn't say period, but the idea of putting one person in charge of the intelligence community has been around for 50 years. It keeps getting resurrected every 20 years or so.
This notion of a national intelligence director, which imposes jointness and integration across the 15 agencies, has been proposed for three or four years. Brent Scowcroft was the original grandfather of the proposal, a Republican. The call was made again by the joint inquiry on 9/11 on which I served. It was made again in the Senate intelligence bill and again now.
So this issue has been fully vetted, and the point I would make is that, sure, we shouldn't rush to judgment, but nor should we stall out. The threats are real. You just reported about this new missile test in Iran.
It is critically important that we get our intelligence right. We really cannot punt this thing until next March or whenever after the election.
DOBBS: Turning to what is now obviously an emerging threat from Iran, on the issue of the development of nuclear weapons, on developing missiles that have the capacity to deliver a warhead 800 miles or more, certainly within striking range of Israel and U.S. bases in the region, how seriously do you take this threat to be and what are your judgments about the policies that we should follow from here forward?
HARMAN: I take it very seriously. A number of us on a bipartisan basis over the last decade have been complaining, trying to stop Russian assistance with technology and human advisers to Iran to help develop its very sophisticated missile industry and perhaps even its nuclear industry.
We have been unable to stop Russia, and we have been unable to stop these developments. Israel is directly threatened. Iran's charter calls for the destruction of Israel, and Israel feels this acutely, as she should. And, as your report says, our troops in the region are threatened.
We need more focused strategies, as we've seemed bogged down in Iraq, the result of poor post-war planning. We have less brain cells and other ability to focus on Iran. This is another reason why we have to fix our broken intelligence system so that our policymakers in any administration get the best possible intelligence.
Let me just make one more point, Lou, because it came across to me in the hearing today. The 9/11 families were in the audience with little badges of their lost children or spouses on their lapels. They are the moral witness to what we are doing. We can't disappoint those families. We can't dishonor the senseless deaths of these people.
It is time for Congress to act. It is time for this president to step up. The 9/11 commission report, which is bipartisan, 10 people, five Democrats and five Republicans, is very thoughtful, and I don't make a pitch as a partisan Democrat. I make a pitch as a bipartisan American to Congress and to this White House to please move this.
DOBBS: Congresswoman Jane Harman, ranking Democrat on the House Intelligence Committee.
Thank you for being here.
Tonight's poll on those new threats emerging from Iran. The question: Do you think the United States should take military action against Iran, should it be proved it has nuclear weapons? Cast your vote at cnn.com/lou. We'll have the results for you later in the broadcast.
Coming right up, big money donors to the presidential campaigns and the high-profile positions many of them win in return. The Best Government Money Can Buy, our special report.
And two powerful storms are gaining strength as they barrel toward land tonight. That land is Florida. We'll be going live to the National Hurricane Center to tell you where and when they're expected to strike.
(COMMERCIAL BREAK)
ANNOUNCER: Lou DOBBS TONIGHT continues. Here now for more news, debate and opinion, Lou Dobbs.
DOBBS: On the campaign trail tonight, both candidates traveling in the West. President Bush campaigned in New Mexico, while Senator Kerry visited Nevada. Both candidates gave their usual stump speeches, but President Bush changed his slightly, and he left out a phrase he's repeated often of late.
Dana Bash reports.
(BEGIN VIDEOTAPE)
DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): The day after the Democratic convention, the president jumped back on the trail with a retooled optimistic message -- one on his bus and another repeated over and over on the stump. From Michigan...
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: When it comes to improving America's public schools, we are turning the corner, and we are not turning back.
BASH: ... to Ohio.
BUSH: When it comes to spreading the peace, we're turning the corner and we're not turning back.
BASH: But, so far this week, the president only uttered the phrase once, and aides now privately tell CNN not to look for the line much in the future, that it's not working. Why the turn-the-corner turnaround? Because Democrats seized on it as proof the president is out of touch.
SEN. JOHN F. KERRY (D-MA), DEMOCRATIC PRESIDENTIAL NOMINEE: The last time we had a president who talked about turning the corner and ran on the slogan of turning the corner was Herbert Hoover.
BASH: The problem: Most polls show the vast majority of Americans do not think the country is on track. One Democratic official tells CNN they conducted their own internal poll on the new Bush phrase, which showed how unpopular it was, and the president's opponent tried to turn it around on him as often as possible, like this after Friday's lackluster jobs report.
KERRY: America has turned the corner. Well, it must have been a U-turn.
BASH: And now this Democratic National Committee Web ad.
BUSH: We're turning the corner. Turning the corner.
JANO CABRERA, DNC SPOKESMAN: This is going to go down in history along the same lines as "mission accomplished," something that seemed like a good idea at the time, but then, in retrospect, they realized it was a mistake.
(END VIDEOTAPE)
BASH: The public explanation for pulling back the line is that the president changes his message on the stump all the time, but one Bush aide privately tells CNN that this exposes internal disagreement over how to frame the president's message, especially given the fact that times are still tough. In the words of that official, how much to acknowledge and how much to ignore -- Lou.
DOBBS: Dana, the -- Senator Kerry and his campaign are having trouble coming up with a succinct sound bite, if you will, succinct message, but apparently so is the president and the White House. Do they have a succinct message that would replace "turning the corner?"
BASH: Well, what they say is that initially when they came out of the box after the Democratic convention, they had, as we reported on their bus, talking about the fact that America is moving forward, it's the heart and soul tour. That's something that they say that they're going to focus a lot more on.
They're going try to, you know, use that message a lot more, streamline their message as one aide said today and simply not play up as much this particular line because, obviously, as we've seen, Democrats have really seized on it, and that has seemed to be working, according to the Bush campaign.
DOBBS: Dana Bash.
Thank you.
President Bush and Senator Kerry each chose not to use federal campaign funding in their race for the White House. That funding, of course, comes with strict guidelines and limitations. Instead, the two candidates have raised hundreds of millions of dollars from individuals, organizations, companies, industry leaders, many of whom receive high-profile payback in return for their efforts.
Lisa Sylvester reports from Washington.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): John Kerry sang his way to more than $7 million at this fund-raiser that brought out the Hollywood hitters. President Bush raised $1 million on a lunch break. Guests had a chance to snap a few pictures with the president.
Both candidates opted out of the public financing system for the primaries that would have limited spending to $45 million. Instead, the two men raised four to five times that amount.
FRED WERTHEIMER, PRESIDENT, DEMOCRACY 21: We've lost the cap on this, and, when you take the limits off, people rush out to raise as much money as they can get their hands on, and now we're up to each candidate raising $200 million.
SYLVESTER: The money has rushed in thanks to a system called bundling. Campaign finance laws restrict individuals from giving more than $2,000, but bundling allows middle men to raise large sums of money.
The Bush campaign ranks its bundlers: Bush Pioneers $100,000; Rangers $200,000; Super Rangers, $200,000 for the Bush campaign and $300,000 for the Republican Party. For Kerry, so called Chairs $50,000 and Vice Chairs $100,000. For their effort, the bundlers get a token gift.
WAYNE BERMAN, BUSH RANGER: Don't know what the goody is this time. I'm sure it will be cuff links, or maybe this time we'll get -- maybe we'll get a necktie or something.
SYLVESTER: But the real perk is access, as seen in 2001, when energy groups had a seat at the table with Vice President Dick Cheney who was drafting the nation's energy policy. The finance and real- estate industry has also done well in the last four years. They've raised a minimum of $24 million this election season for Mr. Bush. Lawyers and lobbyists bundled at least $12 million, and other business interests raised at least $8 million for the Bush campaign.
The Kerry-Edwards team is heavily supported by lawyers who raised a minimum of $14 million. Finance and real-estate groups also gave to Kerry at least $9 million. And the communications and electronics industry brought in a minimum of $5 million. This form from the 2000 Bush Exploratory Committee shows how secret codes are used to show what each interest group is giving. Each bundler gets a special tracking number. Donors write that number on their checks, and so the politicians know exactly who came through.
STEVE WEISSMAN, CAMPAIGN FINANCE INSTITUTE: Congressmen and presidents know that they only got where they got because they were able to get support from certain donors.
SYLVESTER: And the individual bundlers are remembered. What do Labor Secretary Elaine Chao, Homeland Security Chief Tom Ridge, Housing Secretary Alphonso Jackson and Commerce Secretary Don Evans all have in common? They all were Pioneers in 2000.
(END VIDEOTAPE)
SYLVESTER: According to analysis by the group Public Citizen, one in five of Bush's elite fund-raisers have been given a political appointment, and included in the tally are 29 current ambassadors -- Lou.
DOBBS: Lisa Sylvester.
Thank you very much.
A new political ad begins running tonight in the closely contested state of Ohio. The commercial, paid for by a pro-Democratic group called The Media Fund, targets President Bush's record on outsourcing. The ad features comments from Ohio residents on the exporting of American jobs to cheap foreign labor markets.
Independent political groups like The Media Fund will play a key role in this election. Those groups that are commonly called 527s, so named after a section of the tax code that permits their existence, are the topic of our Face Off tonight.
Joining me now to debate the issue Ellen Malcolm who is the president of America Coming Together. It's a 527 dedicated to persuading voters in swing states to vote for Senator Kerry. And Bill Allison. He's managing editor of the Center for Public Integrity who says 527s are simply a way around campaign finance laws.
Thank you both for being here.
Ellen, let me begin -- yesterday, the -- another 527, Democracy 21, two other campaign finance organization groups filed a complaint with the FEC saying that the much ballyhooed now group called the Swift Boat Veterans for Truth, that is anti-Kerry, accuse them of campaign finance law violations and trying improperly to influence the presidential election. But that's precisely what 527s are designed to do, aren't they? To influence this election.
ELLEN MALCOLM, AMERICA COMING TOGETHER: We just went through a whole big process and changed the finance law, made some important changes, took the big soft money contributions away from elected officials and from the political parties. But what the Congress did not do and I think rightly, was say that we're going to stop all political participation. And so there are political action committees, such as America Coming Together, that I'm the president of. There are 527 groups that are talking about issues, communicating with the voters. I think it's an appropriate way in our democracy to have a way that people can come together, can participate in politics. It is fully open and regulated. But it really makes sure that we all have a voice in our political system.
DOBBS: Bill, do you feel it's transparent, that it assures a voice in our political system, that it is appropriate?
BILL ALLISON, CENTER FOR PUBLIC INTEGRITY: I think that what you'll find is you can never take the money out of politics. But what these 527 groups are doing is a lot of the things that the political parties had been doing before McCain-Feingold was passed. They're doing get out the vote. They're doing issues ads. All the same things that the political parties used to do. And they're still getting the six and seven figure checks from special interest, from labor unions, corporations and the big money is still getting into politics. If the point of McCain-Feingold was to take big money out of politics, clearly it hasn't worked. These interests are still giving the money.
DOBBS: And, Bill, as a critic of 527s and this approach, what path could you follow to reverse course should you decide to go after them?
ALLISON: Well, I think that one of the problems with 527s in this current election cycle -- and if you look at a group like America Coming Together, they're reporting right now that only 2 percent of the money that they're raising is to influence federal elections. This is the federal hard money that they're raising. And that the other 98 percent is for nonfederal purposes, get out the vote drive and what not.
In fact, you mention the three groups that had filed a complaint with the FEC against the Swift Boat Veterans, those same groups filed the same kind of complaint against America Coming Together that clearly the purpose of this group is to influence a presidential election and a federal election. They won't be raising nearly as much money in 2005 as they've raised in 2004, and I think that the same kind of scrutiny that applies to political groups should apply to them.
DOBBS: Ellen, obviously your response?
MALCOLM: Well, as a political action committee, which is appropriate under the law, America Coming Together is very interested in defeating George W. Bush. We're all interested in electing progressives and Democratic candidates at all levels. So what we're doing is going door to door, talking to voters, asking them what issues are important to them, following up with information on those issues, trying to revitalize our democracy by bringing those folks to the polls. That's the essence of democracy, I believe.
DOBBS: The essence of democracy, you've raised about $125 million?
MALCOLM: Well, ACT itself has not. We've raised about $75 million. And certainly we have 85,000 members and we've got people that are volunteering to canvass with us on the streets. It really is America coming together to win this election at all levels.
DOBBS: And I'm going to give you the last word, if I may, Bill. As we listen to this -- and we're talking various 527s, Republicans, Democrats across the board. The problem is certainly not partisan. It is unique to our system in that both parties are taking advantage of it. Is it your judgment that Congress should act on this or is it, as Ellen describes it, an appropriate place for money, for the voice, for people, a case of 85,000 people and America Coming Together to be heard and to have an influence on the election? Or is it an artifice?
ALLISON: I wouldn't presume to tell Congress what to do, but I think that when you look at these groups...
DOBBS: Come on. They presume to tell you what to do. Why don't you reciprocate? You're an American. Come on.
ALLISON: I guess the point that I would make about this is that, yes, there's the 85,000 volunteers and, yes, there's the -- you look at the websites of these groups and they all look like America. What you're not seeing and what they're not advertising are the people that are writing the million dollar checks, the George Soroses, the Peter Lewises and the big money that's behind these groups which is another important part of the equation. And again, it's the same thing we saw under the soft money system. You're having big money influence politics.
DOBBS: Ellen? I said that Bill could have the last word. I have got to ask you this. Do you want to divulge the number of people who have given you a check for a million dollars or more?
MALCOLM: I don't even have that number. But I can tell you there are an awful lot of people that are very upset about the direction of this country. They think the Bush Republicans are taking this country in the wrong direction. They want to make the difference. They want to change the result of that. That's what a political action committee is all about. And that's good for our democracy.
DOBBS: Ellen Malcolm, Bill Allison, we thank you both for being here. Next time we'll take up the issue of 501s appropriately.
Named after an appropriate or inappropriate part of the tax code depending on your view. Thank you both for being here.
Still ahead, the first two major tropical storms of the season are now headed for the southeastern United States, Florida to be specific. We'll have the latest on where Tropical Storm Bonnie and Hurricane Charley are expected to make landfall.
And we'll take you behind the scenes of one of the hottest new reality shows on television. You've probably never seen anything quite like this before. We'll tell you why these contestants are risking their lives.
Then the Wal-Mart debate. Low prices, low-paying jobs. One major city has moved to stop the expansion of Wal-Mart. Those stories and a great deal more still ahead here.
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DOBBS: Two major storm systems headed toward Florida tonight. Tropical Storm Bonnie, Hurricane Charley. The storms are building. The Storm Bonnie is gaining strength as it moves through the Gulf. Hurricane warnings issued for parts of the Florida Panhandle. Nearby Hurricane Charley headed for the Cayman Islands on its way to southern Florida. We're joined now by Max Mayfield, director of the National Hurricane Center in Miami.
Max, first, good to talk with you. Is this going affect the entire state of Florida, in your best judgment right now?
MAX MAYFIELD, DIRECTOR, NATIONAL HURRICANE CENTER: It's going to have -- it's very unusual first of all to have two storms with hurricane watch or warnings out for two different systems there so much of the state will indeed be impacted. Bonnie up in the Panhandle, Charley, the Florida Keys.
DOBBS: Tropical Storm Bonnie, is there a likelihood in your judgment that it will accelerate in strength, become a hurricane?
MAYFIELD: It's a strong tropical storm right now. There is indeed a good chance that it could strengthen to a category one hurricane. So given the uncertainty that we have, we do have that hurricane warning up for much of the Florida Panhandle. The folks out there need to be preparing certainly for a category one hurricane.
DOBBS: And Charley, how strong?
MAYFIELD: Charley is a bigger concern for a bigger area. In fact, if you look at our forecast track, it's coming over western Cuba and at least at this time it looks like the main impact would be the Florida Keys and the southwest coast of Florida. And then beyond that, it will weaken but it will continue to move over the Florida Peninsula and up the east coast. I think we're going to be talking about Bonnie for several more days.
DOBBS: Very quickly, when do you expect these storms to hit?
MAYFIELD: Bonnie, tomorrow morning. The main impact from Charley will be very late Thursday night or very early Friday morning.
DOBBS: Max Mayfield, as always, thank you very much.
MAYFIELD: Thank you, sir.
DOBBS: Max Mayfield, director of the National Hurricane Center.
A different kind of storm is brewing in California. The Los Angeles city council is expected to overwhelmingly approve a law that will make it difficult at best for Wal-Mart to open its so-called supercenters in Los Angeles. Both Wal-Mart and its opponents say the vote will be a victory for their side. Casey Wian reports.
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DOBBS: difficult at best for Wal-Mart to open its so-called supercenters in Los Angeles. Both Wal-Mart and its opponents say the vote will be a victory for their side. Casey Wian reports.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): Wal-Mart plans to open 40 super centers selling groceries as well as general merchandise in California during the next three years. But the state's largest city isn't cooperating. Before Wal-Mart, or any other super center can open in economically disadvantaged areas of Los Angeles, the company must first prove it won't harm local jobs, wages or existing businesses that receive city assistance.
JAMES HAHN, MAYOR LOS ANGELES: To protect our investment, we want to make sure any super center store that comes into those areas doesn't undo what we've been doing in the past.
WIAN: Supporters of the new restrictions cited a recent U.C. Berkeley study estimating Wal-Mart costs California tax payers $86 million a year.
STEVE WESTLY, CALIF. STATE CONTROLLER: The data is increasingly clear, working families can't make it on Wal-Mart wages alone. They need state funded services like Medi-Cal and Healthy Families just to get by.
WIAN: Wal-Mart funded its own study that concluded the benefits of low prices outweigh the costs of low paying jobs.
(on camera): Still, Los Angeles joins a growing number of cities fighting Wal-Mart's plans to open more than 200 super centers nation wide this year. Wal-Mart claims the Los Angeles law is actually a victory, since it falls short of the outright ban on super centers sought by labor union.
CYNTHIA LIN, WAL-MART: The reality is our stores are overwhelmingly welcomed by communities in California. What happens though is in certain communities, there are some vocal opponents. And when their criticism is valid, we certainly work with those communities. But when that criticism comes from special interest groups, or those with another agenda, we obviously keep that in perspective as well.
WIAN (voice-over): Wal-Mart super centers have already had a significant impact on California's economy. Even though only one has opened so far. The mere threat of competition from the discount giant was one cause of last winter's supermarket strike. Grocery chains and their workers are still struggling to recover from that. Casey Wian, CNN, Los Angeles.
(END VIDEOTAPE)
DOBBS: Coming up next, it's one of the hottest programs on Spanish television in this country: A reality show, one in which the contestants will do almost anything for a chance at the ultimate prize. Not fame, not money, but a shot at legalized residency in this country.
And in "Broken Borders" tonight, they've been called sweeping reforms. The problem is these new border patrol measures don't even apply to the worst offenders. We'll have that report and more coming right up.
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DOBBS: The hottest reality show on Spanish language television is offering an unusual prize, to say it mildly. Immigrants, many of them illegal, are competing to win not cash, not fame, but the hope of legalized residency in this country.
Peter Viles has more now on a show that speaks volumes about the immigration crisis in this country and perhaps our culture itself. And we should warn you, some of the pictures you will see are graphic.
(BEGIN VIDEOTAPE)
PETER VILES (voice-over): Behind the scenes at the hottest new reality TV show in Los Angeles. Like "Fear Factor," it's a contest to eat disgusting food. Today, Nachos with duck embryos.
But there's a bizarre twist, in "Gana la Verde" the prize isn't money, it's the hope of a green card, which means legal residency. Winners receive free legal advice from an immigration lawyer, which means some of the contestants are illegal aliens. This is how the show begins.
Contest includes risky stunts, jumping from one speeding truck to another, jumping from one speeding boat to another, fending off attack dogs, climbing down the side of a cliff.
Of course there's food: Contestants have eaten worms, and burritos stuffed with pig intestine, and a plate full of scorpions.
(on camera): And "Gana la Verde," is only broadcast in four American cities right now, and yet it's already a huge ratings hit. In Los Angeles alone, it's now reaching a weekly audience of 1 million viewers.
(voice-over): And it is causing controversy. Critics say the show offers false hope to immigrants, while humiliating them and exposing them to legal action.
CARL SHUSTERNMAN, IMMIGRATION ATTORNEY: And as an ex-I.N.S. Prosecutor, I think it's totally bizarre. It's like, here I am, I'm illegal, come and get me. Unfortunately for them, the criteria for getting a green card is not determined by how many worms or scorpions that you eat, it's determined whether you have relatives who are U.S. citizens who can apply for you.
WIAN: The creator of the program says no laws are being broken and no one is being misled about the ultimate prize.
LENARD LIBERMAN, LIBERMAN BROADCASTER: No one says, if you participate and do these things you have a green card. We are very up front and very honest and explain we are here to help you, we want to provide a service which is valuable to you. But I wonder if those critics would say anything if you were providing a breast implant or toaster oven? that would be a better prize?
WIAN: The federal government is no amused. In a statement, Immigrations and Customs Enforcement tells CNN, quote, "exploiting individual hopes and creating inaccurate expectations can lead the public to believe that legal immigration benefits can easily be acquired by anyone which is not the case.
(END VIDEOTAPE)
WIAN: Now, not all of the contestants are illegal. Some told us they are trying to win green cards for relatives. Now in any event, the station says literally thousands of people, Lou, are lining up to appear on this program -- Lou.
DOBBS: As we've explored this issue of illegal immigration in this country, we've encountered bizarre stories, but Pete, I think you have just reached, if not the ultimate, the penultimate with this one. Tell me at least, that these contestants are being well paid to be participating in this program?
WIAN: My understanding is that they are not being paid. And that would raise issues if they were, because, of course, it is illegal to employ an illegal alien. But our understanding is they will not being paid. We did interview a couple of them. We wanted to interview all of the contestants. Two of them, Lou, were too sick to appear on camera.
DOBBS: Peter Viles, thank you.
Media organizations today declared that illegal aliens face tougher border controls and much swifter deportation as a result of action taken by the Department of Homeland Security. But many of those headlines, in fact, completely missed the point. Bill Tucker has that report.
(BEGIN VIDEOTAPE)
BILL TUCKER (voice-over): The papers proclaim new powers for beleaguered border patrol: Illegal aliens caught within 100 miles of the Mexican or Canadian borders, in country for less than 14 days, will be subject to immediate deportation. Do not go to jail, skip the courts and leave.
There are, however, important exclusions. The rule doesn't apply to people from Canada and Mexico, a fact glossed over by much of the media. Yet almost 70 percent of the millions of people illegally entering the country are from Mexico.
DAN STEIN, FAIR: Too many members of the press a being bamboozled by immigration control when they are transparent short term band-aid remedies. They're not the real deal.
TUCKER: Of the near million arrested along the southwest border last year, only 37,000 were from countries other than Mexico. Not all of the media was fooled however, or pleased by the action from Homeland Security.
JOHN KOBYLT, "THE JOHN AND KEN SHOW": The Bush administration is just so far off the cliff on illegal immigration, I can even comprehend it any more. They seem to have no interest in the economic damage.
TUCKER: The powers to arrest and deport are not new. Congress granted the powers to the Border Patrol in 1996, but that authority has only been used in airports and seaports, until now.
(END VIDEOTAPE)
TUCKER: So why are Mexicans and Canadian are excluded from these new rules. Well, Homeland Security says it's because when they arrest Mexicans crossing the border, they go home on their own, which Lou doesn't explain why there are an estimated 5 million illegal Mexicans still in this country.
DOBBS: There's a lot to be explained about the U.S. immigration policy and its enforcement, or lack there of.
Bill Tucker, thank you.
Well, many wrote in about our report last night on "Broken Borders." And first time in that report, we told you about hospitals being required to ask patients immigration status in order to collect federal funds.
Susan Kamuda, Arundel, Maine, "Lou, if hospitals refuse to ask the immigration status of illegal aliens, then I don't expect them to ask me for an insurance card when I need medical care."
Jan, in Burlington, North Carolina, had a similar thought, "How come working Americans can't afford healthcare yet we will give it to illegal immigrants? Guess I'll denounce my American citizenship, sneak back in, pay no taxes, and get coverage for health. Then I'll head to California for a legal government license for an illegal me!"
Nancy Zaleski, of Dalton, Ohio, "I suggest we send the border patrol into the corporations to arrest and prosecute the owners, CEO's, and board members for hiring illegal aliens. Maybe the money we pay towards protecting our borders will finally be used on the real criminals."
We love hearing from you. E-mail us "Your Thoughts" at loudobbs@cnn.com. Coming up next here, middle class Americans today living in bigger homes, driving more cars. But, are they ever paying a heavy price?
That special report on the middle class squeeze is next.
(COMMERCIAL BREAK)
DOBBS: The middle class is being squeezed and it's no wonder. Our houses are bigger and so are our mortgages. We have more cars than drivers per house hold now. Record credit card debt, fewer kids, and we need two incomes to get by, as Christine Romans reports.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT: The American family is shrinking, but our houses and our debt are getting bigger. Just 30- years-ago the average home was 1500 square feet, now it's 2200 square feet, almost 50 percent larger. Then we had 1.4 kids per house hold, today we have barely one. A generation ago we had one car in the garage. Now for the first time ever, there are more cars in this country than drivers and more cars per family than kids.
DAVID LEREAH, NATL. ASSN. OF REALTORS: The middle class is buying larger homes today than it was 20-years-ago and there is this ripple effect where they have to put more furniture into those homes, more appliances.
ROMANS: A bigger house, lots more stuff, supposedly the American dream.
AMELIA TYAGI, AUTHOR, "THE TWO-INCOME TRAP": A lot of families are making it and they are living the dream. But they know they are so close to the wall. Moms working, dads working. They're committing everything to the car payments, the tuition payments, the mortgage. There's no money left over. There's nothing in the bank account. And they know, they're just one layoff away from losing it.
ROMANS: The American dream may be priceless but for nearly all of us credit cards are required. Thirty years ago credit cards were in their infancy. A decade ago families carried $2,500 in credit card debt. Today, credit card debt tops $7,000. A generation ago families saved 11 percent of their income. Today, they save nothing.
Meanwhile, average tuition at a state university has nearly doubled since the mid 70s. In the same time, the cost of health insurance increased by about 100 percent.
(END VIDEOTAPE)
ROMANS: And just as troubling real wages over the past generation for the middle class are stagnant, but the wealthiest Americans have enjoyed growth of 30 percent. The middle class and those aspire to it, struggling just to stay even.
DOBBS: Christine, thank you very much. Still ahead, we'll have the results of "Tonight's Poll." Please stay with us.
(COMMERCIAL BREAK)
Turning now to the results of our poll, 28 percent of you said the United States should take military action against Iran if it has nuclear weapons, 72 percent say, do not take action.
Thanks for being with us tonight. Please join us here tomorrow. Jean Butterfield of the American Immigration Lawyers association. She says, expediting the deportation of illegal aliens is unfair to the aliens. She's our guest tomorrow evening. Please join us. And we'll also be continuing our special report on the "Best Government Money Can Buy"; Foreign money influencing American policy.
We'll hope you'll be with us. For all of us here, good night from New York. "ANDERSON COOPER 360" is next.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired August 11, 2004 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LOU DOBBS, CNN ANCHOR: Tonight, an alarming development in the Middle East. Iran has successfully test fired a new missile that can strike Israel and U.S. bases on the region.
(BEGIN VIDEO CLIP)
JACK SPENCER, THE HERITAGE FOUNDATION: Iran is developing ballistic missiles. Iran is supporting and developing weapons of mass destruction programs.
(END VIDEO CLIP)
DOBBS: We'll have a special report on the emerging threat from Iran. I'll be talking about Iran, the war on terror and intelligence reform with Congresswoman Jane Harman, ranking Democrat on the House Intelligence Committee.
In our special report, The Best Government Money Can Buy, the special interest groups that make the biggest contributions to the Bush and Kerry campaigns.
And in our Face Off tonight, we debate whether nonprofit political groups are too powerful.
Also tonight, only in America, a hot new reality TV show with an incredible twist. The contestants are illegal aliens; the payoff: the chance of winning legal status in this country.
(BEGIN VIDEO CLIP)
I think it's totally bizarre. It's like here I am, I'm illegal, come and get me.
(END VIDEO CLIP)
DOBBS: And two massive storms tonight are building and targeting Florida. Governor Jeb Bush has announced a state of emergency and the director of the National Hurricane Center, Max Mayfield, joins us to tell us what the people of Florida can expect.
ANNOUNCER: This is LOU DOBBS TONIGHT for Wednesday, August 11. Here now for an hour of news, debate and opinion, Lou Dobbs.
DOBBS: Good evening.
Iran today announced a dramatic and alarming step forward in its program to develop missiles that can strike Israel and U.S. bases in the Middle East. The Iranians said they successfully test fired a new generation of missile that is capable of carrying a warhead more than 800 miles.
This development is all the more troubling because, at the same time, the United States says Iran is actively trying to develop nuclear weapons, and Iran is a strong supporter of radical Islamist terrorism.
Kitty Pilgrim reports.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN BUSINESS CORRESPONDENT (voice-over): Today, Iran said it successfully tested its latest Shahab III ballistic missile. Iran's missiles are routinely painted with threats against the United States and Israel, such as "We will stamp on America," "We will wipe Israel from the face of the earth."
CHRISTOPHER PREBLE, CATO INSTITUTE: It's serious certainly for U.S. forces in the area, and it's certainly serious for Israel. The missile has been known to exist for some time. Apparently, they tested it about two years ago. The presumption is that this new model has some improvements.
PILGRIM: Many think it's time for the world to wake up.
SPENCER: I think we need to recognize and to not be afraid to say, look, Iran supports international terrorism, Iran is developing ballistic missiles, Iran is supporting and developing weapons of mass destruction programs, and none of those things are acceptable.
PILGRIM: But, so far, the international community has been trying to cajole Iran into allowing inspectors to carry out routine inspections on its nuclear sites.
MICHAEL DONOVAN, CENTER FOR DEFENSE INFORMATION: The Europeans have to pony up to the table and be willing to downgrade their diplomatic and economic relations with Iran, if the Iranians don't play ball.
PILGRIM: In recent weeks, Tehran has stepped up its defiance to the world, denying U.N. inspectors access to several areas just before the IAEA report to the United Nations. Iran flatly refuses to give up its nuclear program, saying it's not for weapons, but for energy purposes.
But Iran has the second largest natural gas reserves in the world and the fifth largest crude oil reserves. Why would Iran need nuclear energy? U.S. Undersecretary John Bolton pointed that out to Congress a few weeks ago.
JOHN BOLTON, UNDERSECRETARY, STATE DEPARTMENT: Because I think when you see the breadth, the scope of this program, it's easy to understand why we conclude that Iran has absolutely no need for this activity unless it's in an aid of a nuclear weapons program. PILGRIM: Iran has been repeatedly caught in lies. At first, Iran denied it had enriched uranium. Then, when it was found, Iran claimed it was because of contaminated parts it had imported from Pakistan.
Military experts debate the possibility of a preemptive strike. Could Iran's nuclear reactor be eliminated by air strike, if necessary? There is a precedent. In 1981, Israel attacked and destroyed the Osirak nuclear reactor in Iraq, eliminating that threat to the region. But the consensus is Iran's program would be more difficult to eliminate.
MICHAEL O'HANLON, THE BROOKINGS INSTITUTION: Iran has a similar reactor that could be successfully attacked by the air from aircraft, but it also has underground enrichment facilities, and those are much harder to attack.
(END VIDEOTAPE)
PILGRIM: Iran claims its missile tests are for deterrent purposes. It says it's not trying to develop nuclear warheads for them, but Iran admitted today they are trying to boost the range and accuracy of the missiles in direct response to Israel's anti-missile capability -- Lou.
DOBBS: Kitty, thank you.
Iran today escalated its bellicose rhetoric against the United States as well, accusing this country of committing one of the worst crimes against humanity in the Iraqi city of Najaf.
Today, U.S. troops were apparently on the verge of launching a new offensive in Najaf against supporters of the radical cleric Muqtada al-Sadr, but, at the last minute, the troops held back.
The military says troops have already killed hundreds of al- Sadr's gunmen since the intense fighting began in Najaf last week. John Vause reports.
(BEGIN VIDEOTAPE)
JOHN VAUSE, CNN CORRESPONDENT: U.S. military officials in Najaf are making it clear that along with Iraqi national forces, they're preparing for a major confrontation with Muqtada al-Sadr's men who are holed up inside this sacred Iman Ali mosque.
One U.S. senior military commander says that Iraqi National Guardsmen have been training alongside U.S. Marines and soldiers. He says they're better prepared now than they were back in April, the last time there was an all-out offensive against al-Sadr's men.
If there is to be an offensive, it is likely to be led by Iraqi troops, an attempt to minimize the backlash, the political and religious backlash, if, in fact, the mosque is raided.
In Najaf today, U.S. warplanes and helicopters have been in the skies overhead. They've hit a number of targets on the ground. There have been clashes, too, throughout the city. Iraqi National Guardsmen are also manning checkpoints.
No one in the city is talking cease-fire, not the U.S., not the interim Iraqi government, and certainly not the radical Shia cleric Muqtada al-Sadr.
Earlier today he called on his followers to continue the fight, even if he is captured or killed. Fighting across Iraq has fled, too, in Baghdad, also in Basra, in the Mosul Province, in Diwaniya and in Kut. According to the Iraqi health ministry, 57 people are dead in the last 24 hours. Another 323 have been wounded.
John Vause, CNN, Baghdad.
(END VIDEOTAPE)
DOBBS: Nearly 20,000 American troops are fighting insurgents in Afghanistan. Today, Defense Secretary Donald Rumsfeld made a surprise visit to some of those troops. The defense secretary said the coalition is winning the war against terrorism in Afghanistan, but military officials said they expect more insurgent attacks before a general election in Afghanistan that will be held in October.
Secretary Rumsfeld also said Congress should not rush the introduction of major reforms of intelligence. Today, two key congressional committees held hearings about the intelligence reforms proposed by the September 11 commission. Lawmakers also focused on President Bush's domination of Congressman Porter Goss as the new CIA director.
Joe Johns reports.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT (voice-over): One day after his nomination to head the CIA, House Intelligence Committee Chairman Porter Goss gave up the gavel at a hearing on the 9/11 commission's recommendations.
REP. PORTER GOSS (R), CIA DIRECTOR NOMINEE: I believe it's appropriate to relinquish my position as chairman of the Permanent Select Committee on Intelligence during the pendency of the confirmation process of that nomination effective immediately.
JOHNS: Some at today's hearing, including the top Democrat on the 9/11 commission, sounded like Goss was a shoe in.
LEE HAMILTON (D), 9/11 COMMISSION VICE CHAIRMAN: And I just want to say that all of us should recognize that he takes the helm of this great agency of government at an exceedingly challenging time.
JOHNS: But Goss still has to be confirmed by the Senate, where Democrats are threatening tough hearings. They say he's too close to the White House and too partisan. SEN. CARL LEVIN (D), MICHIGAN: The independence and objectivity issue and -- whoever's appointed for whatever administration. We have to rely on that person to give the unvarnished facts.
JOHNS: However, Democrats are reluctant to flat out oppose the nomination, fearing they'll be labeled soft on national security. Two years ago before the midterm elections, Republicans targeted Democrats who raised concerns about aspects of the new Homeland Security Department.
Some Democrats are trying to shift the focus away from the Goss nomination and back to the 9/11 commission report. Democrats charge the Republican leadership and the administration are dragging their feet on the recommendations.
REP. ELLEN TAUSCHER (D), CALIFORNIA: It is vitally important that we stand behind this report, that we begin to move momentum, and that we not allow the entrenched bureaucracy that we're seeing give us the push-back.
JOHNS: Congressional Republicans and the administration pushed back.
REP. PHIL GINGREY (R), GEORGIA: So the president certainly has not been lollygagging around in regard to his responsibility.
STEPHEN CAMBONE, UNDERSECRETARY OF DEFENSE FOR INTELLIGENCE: We're moving with all the deliberate speed this requires, with the kind of hard work that you would and the American people, I think, would appreciate.
(END VIDEOTAPE)
JOHNS: Democrats want a special session of Congress during the August recess to work on the recommendations, an idea endorsed by Democratic presidential candidate John Kerry. Today, the Republican House majority leader, Tom DeLay, called the Democrats' ideas "a cheap excuse for a real security agenda" -- Lou.
DOBBS: Joe, thank you.
Joe Johns from Capitol Hill.
Coming up next, hear more on intelligence reform, the new CIA chief and the growing threat from Iran. Congresswoman Jane Harman, the ranking Democrat on the House Intelligence Committee, joins me.
Also ahead, the biggest donors to the Bush and Kerry campaigns and what they receive in return. Our series of special reports, The Best Government Money Can Buy.
And a new reality show. Sinking to a new low? These contestants aren't playing for fame or fortune. They're illegal aliens playing for a shot at legalized citizenship.
Stay with us. (COMMERCIAL BREAK)
DOBBS: My guest tonight says it's essential Congress act now to implement the recommendations of the 9/11 commission. Congresswoman Jane Harman is the ranking Democrat on the House Intelligence Committee. The committee heard testimony today from the chairman and vice chairman of the commission. She joins us tonight from Washington.
Good to have you with us.
REP. JANE HARMAN (D), HOUSE INTELLIGENCE COMMITTEE: Nice to be on this show, Lou.
DOBBS: Congresswoman, the idea that your chairman could be the new head of the CIA -- does that sit well with you? Do you think he's the right man for the job?
HARMAN: Well, I think it's the wrong job. This is not to say anything negative about Porter Goss. That's not where I'm going. What I -- where I'm going is that we have an opportunity to restructure our intelligence community.
The CIA is only one of 15 agencies, and the goal, according to the 9/11 commission and all the prior commissions, some of which I've been part of, is to restructure that whole system so that there's one person in charge so that we connect the dots the next time, which was our big mistake leading up to 9/11.
By naming Goss to head one of the 15 stovepipes, as they're called -- this doesn't move the ball forward in terms of fixing the problem and preventing the next 9/11.
DOBBS: But, traditionally, historically, the head of the CIA has been the director of intelligence, the most important voice overseeing American intelligence. You feel that Porter Goss is qualified and will do an effective job in the role as you -- as it is traditionally formed at least?
HARMAN: Well, again, I feel that Porter Goss has many qualifications. I've served with him on the Intelligence Committee for eight years, but the business model we're talking about was invented in 1947 to fight a threat, the Communist menace, that we defeated in 1989. We never revamped the job. The CIA director does get a lot of ink, but his actual authority -- or her actual authority -- is over 15 percent of the intelligence budget. The rest is run by the Pentagon.
So my point is, however good Goss is, he's not going to have a chance to succeed, if we don't change the structure, and the president is missing an opportunity to step up with specificity and articulate whether or not he will embrace the recommendations of the 9/11 commission, not just the report, and help make Congress act. That's what's necessary, and that's what I'm not seeing.
DOBBS: Is the public and media focus turned to the recommendations of the 9/11 commission. The Bush administration and its representatives started talking about caution and slowing down, and at precisely the same time, the Democrats talked about immediately implementing -- and Senator Kerry, presidential candidate, talked about immediately implementing -- them.
Is there, in your judgment, good reason, partisan politics aside, to be careful here, or do you believe that the recommendations of the 9/11 commission should be implemented period?
HARMAN: Well, I wouldn't say period, but the idea of putting one person in charge of the intelligence community has been around for 50 years. It keeps getting resurrected every 20 years or so.
This notion of a national intelligence director, which imposes jointness and integration across the 15 agencies, has been proposed for three or four years. Brent Scowcroft was the original grandfather of the proposal, a Republican. The call was made again by the joint inquiry on 9/11 on which I served. It was made again in the Senate intelligence bill and again now.
So this issue has been fully vetted, and the point I would make is that, sure, we shouldn't rush to judgment, but nor should we stall out. The threats are real. You just reported about this new missile test in Iran.
It is critically important that we get our intelligence right. We really cannot punt this thing until next March or whenever after the election.
DOBBS: Turning to what is now obviously an emerging threat from Iran, on the issue of the development of nuclear weapons, on developing missiles that have the capacity to deliver a warhead 800 miles or more, certainly within striking range of Israel and U.S. bases in the region, how seriously do you take this threat to be and what are your judgments about the policies that we should follow from here forward?
HARMAN: I take it very seriously. A number of us on a bipartisan basis over the last decade have been complaining, trying to stop Russian assistance with technology and human advisers to Iran to help develop its very sophisticated missile industry and perhaps even its nuclear industry.
We have been unable to stop Russia, and we have been unable to stop these developments. Israel is directly threatened. Iran's charter calls for the destruction of Israel, and Israel feels this acutely, as she should. And, as your report says, our troops in the region are threatened.
We need more focused strategies, as we've seemed bogged down in Iraq, the result of poor post-war planning. We have less brain cells and other ability to focus on Iran. This is another reason why we have to fix our broken intelligence system so that our policymakers in any administration get the best possible intelligence.
Let me just make one more point, Lou, because it came across to me in the hearing today. The 9/11 families were in the audience with little badges of their lost children or spouses on their lapels. They are the moral witness to what we are doing. We can't disappoint those families. We can't dishonor the senseless deaths of these people.
It is time for Congress to act. It is time for this president to step up. The 9/11 commission report, which is bipartisan, 10 people, five Democrats and five Republicans, is very thoughtful, and I don't make a pitch as a partisan Democrat. I make a pitch as a bipartisan American to Congress and to this White House to please move this.
DOBBS: Congresswoman Jane Harman, ranking Democrat on the House Intelligence Committee.
Thank you for being here.
Tonight's poll on those new threats emerging from Iran. The question: Do you think the United States should take military action against Iran, should it be proved it has nuclear weapons? Cast your vote at cnn.com/lou. We'll have the results for you later in the broadcast.
Coming right up, big money donors to the presidential campaigns and the high-profile positions many of them win in return. The Best Government Money Can Buy, our special report.
And two powerful storms are gaining strength as they barrel toward land tonight. That land is Florida. We'll be going live to the National Hurricane Center to tell you where and when they're expected to strike.
(COMMERCIAL BREAK)
ANNOUNCER: Lou DOBBS TONIGHT continues. Here now for more news, debate and opinion, Lou Dobbs.
DOBBS: On the campaign trail tonight, both candidates traveling in the West. President Bush campaigned in New Mexico, while Senator Kerry visited Nevada. Both candidates gave their usual stump speeches, but President Bush changed his slightly, and he left out a phrase he's repeated often of late.
Dana Bash reports.
(BEGIN VIDEOTAPE)
DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice-over): The day after the Democratic convention, the president jumped back on the trail with a retooled optimistic message -- one on his bus and another repeated over and over on the stump. From Michigan...
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: When it comes to improving America's public schools, we are turning the corner, and we are not turning back.
BASH: ... to Ohio.
BUSH: When it comes to spreading the peace, we're turning the corner and we're not turning back.
BASH: But, so far this week, the president only uttered the phrase once, and aides now privately tell CNN not to look for the line much in the future, that it's not working. Why the turn-the-corner turnaround? Because Democrats seized on it as proof the president is out of touch.
SEN. JOHN F. KERRY (D-MA), DEMOCRATIC PRESIDENTIAL NOMINEE: The last time we had a president who talked about turning the corner and ran on the slogan of turning the corner was Herbert Hoover.
BASH: The problem: Most polls show the vast majority of Americans do not think the country is on track. One Democratic official tells CNN they conducted their own internal poll on the new Bush phrase, which showed how unpopular it was, and the president's opponent tried to turn it around on him as often as possible, like this after Friday's lackluster jobs report.
KERRY: America has turned the corner. Well, it must have been a U-turn.
BASH: And now this Democratic National Committee Web ad.
BUSH: We're turning the corner. Turning the corner.
JANO CABRERA, DNC SPOKESMAN: This is going to go down in history along the same lines as "mission accomplished," something that seemed like a good idea at the time, but then, in retrospect, they realized it was a mistake.
(END VIDEOTAPE)
BASH: The public explanation for pulling back the line is that the president changes his message on the stump all the time, but one Bush aide privately tells CNN that this exposes internal disagreement over how to frame the president's message, especially given the fact that times are still tough. In the words of that official, how much to acknowledge and how much to ignore -- Lou.
DOBBS: Dana, the -- Senator Kerry and his campaign are having trouble coming up with a succinct sound bite, if you will, succinct message, but apparently so is the president and the White House. Do they have a succinct message that would replace "turning the corner?"
BASH: Well, what they say is that initially when they came out of the box after the Democratic convention, they had, as we reported on their bus, talking about the fact that America is moving forward, it's the heart and soul tour. That's something that they say that they're going to focus a lot more on.
They're going try to, you know, use that message a lot more, streamline their message as one aide said today and simply not play up as much this particular line because, obviously, as we've seen, Democrats have really seized on it, and that has seemed to be working, according to the Bush campaign.
DOBBS: Dana Bash.
Thank you.
President Bush and Senator Kerry each chose not to use federal campaign funding in their race for the White House. That funding, of course, comes with strict guidelines and limitations. Instead, the two candidates have raised hundreds of millions of dollars from individuals, organizations, companies, industry leaders, many of whom receive high-profile payback in return for their efforts.
Lisa Sylvester reports from Washington.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice-over): John Kerry sang his way to more than $7 million at this fund-raiser that brought out the Hollywood hitters. President Bush raised $1 million on a lunch break. Guests had a chance to snap a few pictures with the president.
Both candidates opted out of the public financing system for the primaries that would have limited spending to $45 million. Instead, the two men raised four to five times that amount.
FRED WERTHEIMER, PRESIDENT, DEMOCRACY 21: We've lost the cap on this, and, when you take the limits off, people rush out to raise as much money as they can get their hands on, and now we're up to each candidate raising $200 million.
SYLVESTER: The money has rushed in thanks to a system called bundling. Campaign finance laws restrict individuals from giving more than $2,000, but bundling allows middle men to raise large sums of money.
The Bush campaign ranks its bundlers: Bush Pioneers $100,000; Rangers $200,000; Super Rangers, $200,000 for the Bush campaign and $300,000 for the Republican Party. For Kerry, so called Chairs $50,000 and Vice Chairs $100,000. For their effort, the bundlers get a token gift.
WAYNE BERMAN, BUSH RANGER: Don't know what the goody is this time. I'm sure it will be cuff links, or maybe this time we'll get -- maybe we'll get a necktie or something.
SYLVESTER: But the real perk is access, as seen in 2001, when energy groups had a seat at the table with Vice President Dick Cheney who was drafting the nation's energy policy. The finance and real- estate industry has also done well in the last four years. They've raised a minimum of $24 million this election season for Mr. Bush. Lawyers and lobbyists bundled at least $12 million, and other business interests raised at least $8 million for the Bush campaign.
The Kerry-Edwards team is heavily supported by lawyers who raised a minimum of $14 million. Finance and real-estate groups also gave to Kerry at least $9 million. And the communications and electronics industry brought in a minimum of $5 million. This form from the 2000 Bush Exploratory Committee shows how secret codes are used to show what each interest group is giving. Each bundler gets a special tracking number. Donors write that number on their checks, and so the politicians know exactly who came through.
STEVE WEISSMAN, CAMPAIGN FINANCE INSTITUTE: Congressmen and presidents know that they only got where they got because they were able to get support from certain donors.
SYLVESTER: And the individual bundlers are remembered. What do Labor Secretary Elaine Chao, Homeland Security Chief Tom Ridge, Housing Secretary Alphonso Jackson and Commerce Secretary Don Evans all have in common? They all were Pioneers in 2000.
(END VIDEOTAPE)
SYLVESTER: According to analysis by the group Public Citizen, one in five of Bush's elite fund-raisers have been given a political appointment, and included in the tally are 29 current ambassadors -- Lou.
DOBBS: Lisa Sylvester.
Thank you very much.
A new political ad begins running tonight in the closely contested state of Ohio. The commercial, paid for by a pro-Democratic group called The Media Fund, targets President Bush's record on outsourcing. The ad features comments from Ohio residents on the exporting of American jobs to cheap foreign labor markets.
Independent political groups like The Media Fund will play a key role in this election. Those groups that are commonly called 527s, so named after a section of the tax code that permits their existence, are the topic of our Face Off tonight.
Joining me now to debate the issue Ellen Malcolm who is the president of America Coming Together. It's a 527 dedicated to persuading voters in swing states to vote for Senator Kerry. And Bill Allison. He's managing editor of the Center for Public Integrity who says 527s are simply a way around campaign finance laws.
Thank you both for being here.
Ellen, let me begin -- yesterday, the -- another 527, Democracy 21, two other campaign finance organization groups filed a complaint with the FEC saying that the much ballyhooed now group called the Swift Boat Veterans for Truth, that is anti-Kerry, accuse them of campaign finance law violations and trying improperly to influence the presidential election. But that's precisely what 527s are designed to do, aren't they? To influence this election.
ELLEN MALCOLM, AMERICA COMING TOGETHER: We just went through a whole big process and changed the finance law, made some important changes, took the big soft money contributions away from elected officials and from the political parties. But what the Congress did not do and I think rightly, was say that we're going to stop all political participation. And so there are political action committees, such as America Coming Together, that I'm the president of. There are 527 groups that are talking about issues, communicating with the voters. I think it's an appropriate way in our democracy to have a way that people can come together, can participate in politics. It is fully open and regulated. But it really makes sure that we all have a voice in our political system.
DOBBS: Bill, do you feel it's transparent, that it assures a voice in our political system, that it is appropriate?
BILL ALLISON, CENTER FOR PUBLIC INTEGRITY: I think that what you'll find is you can never take the money out of politics. But what these 527 groups are doing is a lot of the things that the political parties had been doing before McCain-Feingold was passed. They're doing get out the vote. They're doing issues ads. All the same things that the political parties used to do. And they're still getting the six and seven figure checks from special interest, from labor unions, corporations and the big money is still getting into politics. If the point of McCain-Feingold was to take big money out of politics, clearly it hasn't worked. These interests are still giving the money.
DOBBS: And, Bill, as a critic of 527s and this approach, what path could you follow to reverse course should you decide to go after them?
ALLISON: Well, I think that one of the problems with 527s in this current election cycle -- and if you look at a group like America Coming Together, they're reporting right now that only 2 percent of the money that they're raising is to influence federal elections. This is the federal hard money that they're raising. And that the other 98 percent is for nonfederal purposes, get out the vote drive and what not.
In fact, you mention the three groups that had filed a complaint with the FEC against the Swift Boat Veterans, those same groups filed the same kind of complaint against America Coming Together that clearly the purpose of this group is to influence a presidential election and a federal election. They won't be raising nearly as much money in 2005 as they've raised in 2004, and I think that the same kind of scrutiny that applies to political groups should apply to them.
DOBBS: Ellen, obviously your response?
MALCOLM: Well, as a political action committee, which is appropriate under the law, America Coming Together is very interested in defeating George W. Bush. We're all interested in electing progressives and Democratic candidates at all levels. So what we're doing is going door to door, talking to voters, asking them what issues are important to them, following up with information on those issues, trying to revitalize our democracy by bringing those folks to the polls. That's the essence of democracy, I believe.
DOBBS: The essence of democracy, you've raised about $125 million?
MALCOLM: Well, ACT itself has not. We've raised about $75 million. And certainly we have 85,000 members and we've got people that are volunteering to canvass with us on the streets. It really is America coming together to win this election at all levels.
DOBBS: And I'm going to give you the last word, if I may, Bill. As we listen to this -- and we're talking various 527s, Republicans, Democrats across the board. The problem is certainly not partisan. It is unique to our system in that both parties are taking advantage of it. Is it your judgment that Congress should act on this or is it, as Ellen describes it, an appropriate place for money, for the voice, for people, a case of 85,000 people and America Coming Together to be heard and to have an influence on the election? Or is it an artifice?
ALLISON: I wouldn't presume to tell Congress what to do, but I think that when you look at these groups...
DOBBS: Come on. They presume to tell you what to do. Why don't you reciprocate? You're an American. Come on.
ALLISON: I guess the point that I would make about this is that, yes, there's the 85,000 volunteers and, yes, there's the -- you look at the websites of these groups and they all look like America. What you're not seeing and what they're not advertising are the people that are writing the million dollar checks, the George Soroses, the Peter Lewises and the big money that's behind these groups which is another important part of the equation. And again, it's the same thing we saw under the soft money system. You're having big money influence politics.
DOBBS: Ellen? I said that Bill could have the last word. I have got to ask you this. Do you want to divulge the number of people who have given you a check for a million dollars or more?
MALCOLM: I don't even have that number. But I can tell you there are an awful lot of people that are very upset about the direction of this country. They think the Bush Republicans are taking this country in the wrong direction. They want to make the difference. They want to change the result of that. That's what a political action committee is all about. And that's good for our democracy.
DOBBS: Ellen Malcolm, Bill Allison, we thank you both for being here. Next time we'll take up the issue of 501s appropriately.
Named after an appropriate or inappropriate part of the tax code depending on your view. Thank you both for being here.
Still ahead, the first two major tropical storms of the season are now headed for the southeastern United States, Florida to be specific. We'll have the latest on where Tropical Storm Bonnie and Hurricane Charley are expected to make landfall.
And we'll take you behind the scenes of one of the hottest new reality shows on television. You've probably never seen anything quite like this before. We'll tell you why these contestants are risking their lives.
Then the Wal-Mart debate. Low prices, low-paying jobs. One major city has moved to stop the expansion of Wal-Mart. Those stories and a great deal more still ahead here.
(COMMERCIAL BREAK)
DOBBS: Two major storm systems headed toward Florida tonight. Tropical Storm Bonnie, Hurricane Charley. The storms are building. The Storm Bonnie is gaining strength as it moves through the Gulf. Hurricane warnings issued for parts of the Florida Panhandle. Nearby Hurricane Charley headed for the Cayman Islands on its way to southern Florida. We're joined now by Max Mayfield, director of the National Hurricane Center in Miami.
Max, first, good to talk with you. Is this going affect the entire state of Florida, in your best judgment right now?
MAX MAYFIELD, DIRECTOR, NATIONAL HURRICANE CENTER: It's going to have -- it's very unusual first of all to have two storms with hurricane watch or warnings out for two different systems there so much of the state will indeed be impacted. Bonnie up in the Panhandle, Charley, the Florida Keys.
DOBBS: Tropical Storm Bonnie, is there a likelihood in your judgment that it will accelerate in strength, become a hurricane?
MAYFIELD: It's a strong tropical storm right now. There is indeed a good chance that it could strengthen to a category one hurricane. So given the uncertainty that we have, we do have that hurricane warning up for much of the Florida Panhandle. The folks out there need to be preparing certainly for a category one hurricane.
DOBBS: And Charley, how strong?
MAYFIELD: Charley is a bigger concern for a bigger area. In fact, if you look at our forecast track, it's coming over western Cuba and at least at this time it looks like the main impact would be the Florida Keys and the southwest coast of Florida. And then beyond that, it will weaken but it will continue to move over the Florida Peninsula and up the east coast. I think we're going to be talking about Bonnie for several more days.
DOBBS: Very quickly, when do you expect these storms to hit?
MAYFIELD: Bonnie, tomorrow morning. The main impact from Charley will be very late Thursday night or very early Friday morning.
DOBBS: Max Mayfield, as always, thank you very much.
MAYFIELD: Thank you, sir.
DOBBS: Max Mayfield, director of the National Hurricane Center.
A different kind of storm is brewing in California. The Los Angeles city council is expected to overwhelmingly approve a law that will make it difficult at best for Wal-Mart to open its so-called supercenters in Los Angeles. Both Wal-Mart and its opponents say the vote will be a victory for their side. Casey Wian reports.
(BEGIN VIDEOTAPE)
DOBBS: difficult at best for Wal-Mart to open its so-called supercenters in Los Angeles. Both Wal-Mart and its opponents say the vote will be a victory for their side. Casey Wian reports.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): Wal-Mart plans to open 40 super centers selling groceries as well as general merchandise in California during the next three years. But the state's largest city isn't cooperating. Before Wal-Mart, or any other super center can open in economically disadvantaged areas of Los Angeles, the company must first prove it won't harm local jobs, wages or existing businesses that receive city assistance.
JAMES HAHN, MAYOR LOS ANGELES: To protect our investment, we want to make sure any super center store that comes into those areas doesn't undo what we've been doing in the past.
WIAN: Supporters of the new restrictions cited a recent U.C. Berkeley study estimating Wal-Mart costs California tax payers $86 million a year.
STEVE WESTLY, CALIF. STATE CONTROLLER: The data is increasingly clear, working families can't make it on Wal-Mart wages alone. They need state funded services like Medi-Cal and Healthy Families just to get by.
WIAN: Wal-Mart funded its own study that concluded the benefits of low prices outweigh the costs of low paying jobs.
(on camera): Still, Los Angeles joins a growing number of cities fighting Wal-Mart's plans to open more than 200 super centers nation wide this year. Wal-Mart claims the Los Angeles law is actually a victory, since it falls short of the outright ban on super centers sought by labor union.
CYNTHIA LIN, WAL-MART: The reality is our stores are overwhelmingly welcomed by communities in California. What happens though is in certain communities, there are some vocal opponents. And when their criticism is valid, we certainly work with those communities. But when that criticism comes from special interest groups, or those with another agenda, we obviously keep that in perspective as well.
WIAN (voice-over): Wal-Mart super centers have already had a significant impact on California's economy. Even though only one has opened so far. The mere threat of competition from the discount giant was one cause of last winter's supermarket strike. Grocery chains and their workers are still struggling to recover from that. Casey Wian, CNN, Los Angeles.
(END VIDEOTAPE)
DOBBS: Coming up next, it's one of the hottest programs on Spanish television in this country: A reality show, one in which the contestants will do almost anything for a chance at the ultimate prize. Not fame, not money, but a shot at legalized residency in this country.
And in "Broken Borders" tonight, they've been called sweeping reforms. The problem is these new border patrol measures don't even apply to the worst offenders. We'll have that report and more coming right up.
(COMMERCIAL BREAK)
DOBBS: The hottest reality show on Spanish language television is offering an unusual prize, to say it mildly. Immigrants, many of them illegal, are competing to win not cash, not fame, but the hope of legalized residency in this country.
Peter Viles has more now on a show that speaks volumes about the immigration crisis in this country and perhaps our culture itself. And we should warn you, some of the pictures you will see are graphic.
(BEGIN VIDEOTAPE)
PETER VILES (voice-over): Behind the scenes at the hottest new reality TV show in Los Angeles. Like "Fear Factor," it's a contest to eat disgusting food. Today, Nachos with duck embryos.
But there's a bizarre twist, in "Gana la Verde" the prize isn't money, it's the hope of a green card, which means legal residency. Winners receive free legal advice from an immigration lawyer, which means some of the contestants are illegal aliens. This is how the show begins.
Contest includes risky stunts, jumping from one speeding truck to another, jumping from one speeding boat to another, fending off attack dogs, climbing down the side of a cliff.
Of course there's food: Contestants have eaten worms, and burritos stuffed with pig intestine, and a plate full of scorpions.
(on camera): And "Gana la Verde," is only broadcast in four American cities right now, and yet it's already a huge ratings hit. In Los Angeles alone, it's now reaching a weekly audience of 1 million viewers.
(voice-over): And it is causing controversy. Critics say the show offers false hope to immigrants, while humiliating them and exposing them to legal action.
CARL SHUSTERNMAN, IMMIGRATION ATTORNEY: And as an ex-I.N.S. Prosecutor, I think it's totally bizarre. It's like, here I am, I'm illegal, come and get me. Unfortunately for them, the criteria for getting a green card is not determined by how many worms or scorpions that you eat, it's determined whether you have relatives who are U.S. citizens who can apply for you.
WIAN: The creator of the program says no laws are being broken and no one is being misled about the ultimate prize.
LENARD LIBERMAN, LIBERMAN BROADCASTER: No one says, if you participate and do these things you have a green card. We are very up front and very honest and explain we are here to help you, we want to provide a service which is valuable to you. But I wonder if those critics would say anything if you were providing a breast implant or toaster oven? that would be a better prize?
WIAN: The federal government is no amused. In a statement, Immigrations and Customs Enforcement tells CNN, quote, "exploiting individual hopes and creating inaccurate expectations can lead the public to believe that legal immigration benefits can easily be acquired by anyone which is not the case.
(END VIDEOTAPE)
WIAN: Now, not all of the contestants are illegal. Some told us they are trying to win green cards for relatives. Now in any event, the station says literally thousands of people, Lou, are lining up to appear on this program -- Lou.
DOBBS: As we've explored this issue of illegal immigration in this country, we've encountered bizarre stories, but Pete, I think you have just reached, if not the ultimate, the penultimate with this one. Tell me at least, that these contestants are being well paid to be participating in this program?
WIAN: My understanding is that they are not being paid. And that would raise issues if they were, because, of course, it is illegal to employ an illegal alien. But our understanding is they will not being paid. We did interview a couple of them. We wanted to interview all of the contestants. Two of them, Lou, were too sick to appear on camera.
DOBBS: Peter Viles, thank you.
Media organizations today declared that illegal aliens face tougher border controls and much swifter deportation as a result of action taken by the Department of Homeland Security. But many of those headlines, in fact, completely missed the point. Bill Tucker has that report.
(BEGIN VIDEOTAPE)
BILL TUCKER (voice-over): The papers proclaim new powers for beleaguered border patrol: Illegal aliens caught within 100 miles of the Mexican or Canadian borders, in country for less than 14 days, will be subject to immediate deportation. Do not go to jail, skip the courts and leave.
There are, however, important exclusions. The rule doesn't apply to people from Canada and Mexico, a fact glossed over by much of the media. Yet almost 70 percent of the millions of people illegally entering the country are from Mexico.
DAN STEIN, FAIR: Too many members of the press a being bamboozled by immigration control when they are transparent short term band-aid remedies. They're not the real deal.
TUCKER: Of the near million arrested along the southwest border last year, only 37,000 were from countries other than Mexico. Not all of the media was fooled however, or pleased by the action from Homeland Security.
JOHN KOBYLT, "THE JOHN AND KEN SHOW": The Bush administration is just so far off the cliff on illegal immigration, I can even comprehend it any more. They seem to have no interest in the economic damage.
TUCKER: The powers to arrest and deport are not new. Congress granted the powers to the Border Patrol in 1996, but that authority has only been used in airports and seaports, until now.
(END VIDEOTAPE)
TUCKER: So why are Mexicans and Canadian are excluded from these new rules. Well, Homeland Security says it's because when they arrest Mexicans crossing the border, they go home on their own, which Lou doesn't explain why there are an estimated 5 million illegal Mexicans still in this country.
DOBBS: There's a lot to be explained about the U.S. immigration policy and its enforcement, or lack there of.
Bill Tucker, thank you.
Well, many wrote in about our report last night on "Broken Borders." And first time in that report, we told you about hospitals being required to ask patients immigration status in order to collect federal funds.
Susan Kamuda, Arundel, Maine, "Lou, if hospitals refuse to ask the immigration status of illegal aliens, then I don't expect them to ask me for an insurance card when I need medical care."
Jan, in Burlington, North Carolina, had a similar thought, "How come working Americans can't afford healthcare yet we will give it to illegal immigrants? Guess I'll denounce my American citizenship, sneak back in, pay no taxes, and get coverage for health. Then I'll head to California for a legal government license for an illegal me!"
Nancy Zaleski, of Dalton, Ohio, "I suggest we send the border patrol into the corporations to arrest and prosecute the owners, CEO's, and board members for hiring illegal aliens. Maybe the money we pay towards protecting our borders will finally be used on the real criminals."
We love hearing from you. E-mail us "Your Thoughts" at loudobbs@cnn.com. Coming up next here, middle class Americans today living in bigger homes, driving more cars. But, are they ever paying a heavy price?
That special report on the middle class squeeze is next.
(COMMERCIAL BREAK)
DOBBS: The middle class is being squeezed and it's no wonder. Our houses are bigger and so are our mortgages. We have more cars than drivers per house hold now. Record credit card debt, fewer kids, and we need two incomes to get by, as Christine Romans reports.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT: The American family is shrinking, but our houses and our debt are getting bigger. Just 30- years-ago the average home was 1500 square feet, now it's 2200 square feet, almost 50 percent larger. Then we had 1.4 kids per house hold, today we have barely one. A generation ago we had one car in the garage. Now for the first time ever, there are more cars in this country than drivers and more cars per family than kids.
DAVID LEREAH, NATL. ASSN. OF REALTORS: The middle class is buying larger homes today than it was 20-years-ago and there is this ripple effect where they have to put more furniture into those homes, more appliances.
ROMANS: A bigger house, lots more stuff, supposedly the American dream.
AMELIA TYAGI, AUTHOR, "THE TWO-INCOME TRAP": A lot of families are making it and they are living the dream. But they know they are so close to the wall. Moms working, dads working. They're committing everything to the car payments, the tuition payments, the mortgage. There's no money left over. There's nothing in the bank account. And they know, they're just one layoff away from losing it.
ROMANS: The American dream may be priceless but for nearly all of us credit cards are required. Thirty years ago credit cards were in their infancy. A decade ago families carried $2,500 in credit card debt. Today, credit card debt tops $7,000. A generation ago families saved 11 percent of their income. Today, they save nothing.
Meanwhile, average tuition at a state university has nearly doubled since the mid 70s. In the same time, the cost of health insurance increased by about 100 percent.
(END VIDEOTAPE)
ROMANS: And just as troubling real wages over the past generation for the middle class are stagnant, but the wealthiest Americans have enjoyed growth of 30 percent. The middle class and those aspire to it, struggling just to stay even.
DOBBS: Christine, thank you very much. Still ahead, we'll have the results of "Tonight's Poll." Please stay with us.
(COMMERCIAL BREAK)
Turning now to the results of our poll, 28 percent of you said the United States should take military action against Iran if it has nuclear weapons, 72 percent say, do not take action.
Thanks for being with us tonight. Please join us here tomorrow. Jean Butterfield of the American Immigration Lawyers association. She says, expediting the deportation of illegal aliens is unfair to the aliens. She's our guest tomorrow evening. Please join us. And we'll also be continuing our special report on the "Best Government Money Can Buy"; Foreign money influencing American policy.
We'll hope you'll be with us. For all of us here, good night from New York. "ANDERSON COOPER 360" is next.
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