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Lou Dobbs Tonight

Die-Hard Dems; Middle East Mess; Commander's Personal View of War; New Jobs Pay Less Than Jobs They Replaced; Message Board Delivering Messages Of Freedom To Cubans; Army First Sergeant Brent Jurgersen Survives Two Brutal Attacks In Iraq

Aired January 27, 2006 - 18:00   ET

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


CHRISTINE ROMANS, CNN ANCHOR: Good evening, everybody.
Tonight, Senator John Kerry flies in from an exclusive Swiss resort to launch a last-minute attempt to block Judge Samuel Alito's confirmation to the Supreme Court. We'll go live to Capitol Hill.

Plus, President Bush prepares for his State of the Union speech as the majority of Americans say his second term is already a failure. My guest is a former adviser to four presidents.

And middle class Americans are sharing less and less of this country's wealth. Much less, in fact. We'll have a special report.

We'll have that and a whole lot more ahead in this broadcast tonight.

But we begin tonight with the attempt by Senator John Kerry and Senator Edward Kennedy to lead a filibuster against the nomination of Judge Samuel Alito to the Supreme Court. The senators say they're taking a stand on principle, but the effort appears to be futile. Judge Alito's supporters say they have enough votes to block a filibuster, and many Democratic senators are unhappy with the strategy of their colleagues from Massachusetts.

Ed Henry reports from Capitol Hill -- Ed.

ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: That's right, Christine. In fact, Senator Kerry's filibuster may help win the hearts of some liberals heading into the 2008 presidential primaries, but others Democrats do fear that this could drive middle-of-the-road voters away from the party.

(BEGIN VIDEOTAPE)

HENRY (voice over): John Kerry was back on Capitol Hill after a long flight from Switzerland and tried to cast his quixotic filibuster of Judge Samuel Alito as a heroic effort.

SEN. JOHN KERRY (D), MASSACHUSETTS: I know this is flying against some of the sort of political punditry of Washington. I understand that. But this is a fight worth making.

HENRY: But as he tried to dodge a pack of reporters, Kerry seemed to vacillate on just how active he is in the filibuster when asked if he's leading the effort.

KERRY: No. Just supporting the effort, like others. It's -- you know, I'm very supportive of it, obviously.

UNIDENTIFIED MALE: How many votes you think you're going to get on it?

KERRY: Thank you.

HENRY: The White house had a field day with Kerry's hasty exit from the World Economic Conference in Davos.

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: I think even -- even for a senator it takes some pretty serious yodeling to call for a filibuster from a five-star ski resort in the Swiss Alps.

HENRY: And even as Democrats Hillary Clinton and Harry Reid said they'd vote for the filibuster, they acknowledged the obvious.

SEN. HARRY REID (D-NV), MINORITY LEADER: Everyone knows there are not enough votes to support a filibuster here.

HENRY: That's because Democrats up for reelection are nervous the move will backfire.

SEN. KENT CONRAD (D), NORTH DAKOTA: But I will not participate in a filibuster.

HENRY: Kerry, however, pushed on.

KERRY: I know it's an uphill battle. I've heard my colleagues, many of them. I hear the arguments, you know, reserve your gun powder for the future. Well, what is the future if it changes so dramatically at this moment in time?

(END VIDEOTAPE)

HENRY: But Congressman Harold Ford, the former co-chair of Kerry's presidential campaign, is saying tonight that he's against this filibuster. Ford, who's running for the Senate in the red state of Tennessee, is saying the Democrats need to find a way for a dignified end to all of this -- Christine.

ROMANS: So, Ed, how are the votes stacking up in the Senate tonight? How many for a filibuster, how many against it? And is it changing?

HENRY: Well, the White House says they have at least 60 votes against the filibuster. That would cut it off. But I can tell you, Democratic sources tonight are saying there actually may be at least 70 votes against the filibuster. Even some of the Democrats who are against the nomination at least want to have an up-or-down vote, as the president has called for.

So it looks like Kerry might have something like, when all is said and done, about 30 votes for the filibuster, at least 70 against it. Bottom line, it' s going to fail on Monday night. Tuesday you'll see Judge Alito confirmed as Justice Alito -- Christine.

ROMANS: All right. Ed Henry on Capitol Hill.

Thank you, Ed.

Turning now to the crisis over the victory of the radical Islamic group Hamas in the Palestinian elections, tensions are high in the West Bank and Gaza tonight as supporters of Hamas and the defeated Fatah party face off with each other. In some places, gunmen have exchanged fire, wounding several people.

We have two reports tonight from the West Bank and from Jerusalem.

Our first report is from John Vause is in Ramallah.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN CORRESPONDENT (voice over): This is a new political world for Palestinians. In overwhelming numbers, they elected a political party committed to the destruction of Israel and which says it has no interest in peace negotiations.

MAHMOUD AL-ZAHAR, HAMAS LEADER: Israel has nothing to give for the Palestinian people. All the time they were -- we are wasting our time.

VAUSE: The future of the Palestinian Authority president, Mahmoud Abbas, is also uncertain. He wants to restart peace negotiations with Israel, but Israel refuses while Hamas is in power.

(on camera): Israel could now withhold customs duties and sales taxes collected by Israel on behalf of the Palestinians, up to $50 million U.S. dollars this month alone. The Palestinian Authority says if it does not get that revenue by next week, more than 100,000 employees might not be paid.

(voice over): The United States, too, make cut hundreds of millions of dollars in foreign aid if Hamas doesn't reject violence. The White House pushed for these elections but is far from happy with the result.

Hamas has promised to make life better for Palestinians. The risk is that unless it wins the support of the international community, life could become a whole lot worse.

John Vause, CNN, Ramallah.

(END VIDEOTAPE)

GUY RAZ, CNN INTERNATIONAL CORRESPONDENT: I'm Guy Raz, in Jerusalem

(BEGIN VIDEOTAPE)

RAZ (voice over): An opinion poll in Israel shows nearly 48 percent of the public wants their government to continue negotiations with the Palestinian Authority. Even one dominated by Hamas.

RA'ANAN GISSIN, ISRAELI GOVERNMENT SR. ADVISER: I don't think Israel is quite ready to admit right now and to say, listen, everything is lost, we don't have a partner on the other side. We go for unilateral steps.

RAZ: For now, the Israeli government is playing it cautiously, waiting to see the makeup of the next Palestinian government.

(on camera): But there are existential concerns as well here over a group like Hamas taking over, and it's not just because of the suicide bombs or the group's refusal to recognize Israel.

(voice over): Hamas' charter is filled with disturbing conspiracy theories not just about Israel, but Jews. But if Hamas doesn't soften its ideology, the next Israeli government may not hesitate to secure its borders, even over the objection of Palestinians.

Guy Raz, CNN, Jerusalem.

(END VIDEOTAPE)

ROMANS: The White House today stood firm in its refusal to deal with Hamas, saying Hamas cannot have one foot in politics and the other foot in terror.

Dana Bash reports from the White House.

(BEGIN VIDEOTAPE)

DANA BASH, CNN WHITE HOUSE CORRESPONDENT (voice over): In the Oval Office, President Bush welcomed Lebanese political leader Saad Hariri, son of the assassinated former prime minister. A public show that the president will not shrink from pushing for democracy in the Mideast.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It will be very important for the region for Lebanon's democracy to be able to reach its full potential.

BASH: No comment on what many see as the Bush vision gone awry, Hamas' sweeping electoral victory in the Palestinian elections.

MARTIN INDYK, SABAN CENTER FOR MIDDLE EAST POLICY: It behooves us at this moment to take the cotton wool out of our eyes and see what is actually happening here. Our enemies in the war on terror are actually using the democratic process to gain control.

BASH: Behind the scenes, the White House scrambled to deal with a host of complicated questions about what to do next, like whether to cut off U.S. funding. Most of the $1.5 billion in U.S. aid to the Palestinians since 1993 went through third parties because of concerns about corruption and Yasser Arafat's involvement in terrorism. But in recent years, President Bush authorized modest direct aid: $20 million in 2003, $20 million again in 2004, and $50 million in direct aid last year.

The White House will wait until a new government is formed before any formal decision on future aid, but one thing is clear...

MCCLELLAN: We do not and will not give money to a terrorist organization.

BASH: In Congress, sentiment is strong to cut off further aid, direct or indirect. Republican Senator John Thune quickly introduced a symbolic resolution ruling out any U.S. aid if "the Palestinian Authority maintains a position for calling for the destruction of Israel."

Such a hard line, however, just as the push for democracy itself could have unwelcome consequences.

INDYK: If we cut off the aid, do we need to worry about whether Iran will come in with its connections with Hamas and provide the funding instead?

(END VIDEOTAPE)

BASH: And although the president blamed the election results on a backlash against corruption, several Mideast experts say Mr. Bush shoulders some of the blame, too, because he did not perhaps do enough to help Palestinian president Mahmoud Abbas and perhaps for pushing for Palestinian elections too soon -- Christine.

ROMANS: All right. Dana Bash at the White House.

Thank you, Dana.

In the war in Iraq, U.S. troops and Iraqi security forces today launched a series of raids in Baghdad hunting for insurgents. They arrested at least 20 terrorist suspects.

One American commander in Iraq says the American public is not hearing the truth about the war. The officer is the author of a classic book about the U.S. military and the Vietnam War.

Jamie McIntyre reports from the Pentagon.

(BEGIN VIDEOTAPE)

JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT (voice over): For a decade now, up and coming military officers have studied how during the Vietnam War some senior military leaders abdicated their responsibility by not speaking out. Required reading, the 1997 book "Dereliction of Duty," by a bright young West Point graduate, H.R. McMaster.

Now an Army colonel, McMaster has his own truth to tell. The war in Iraq, he says, at least in his little corner of it, is going better than a lot of people think.

COL. H.R. MCMASTER, COMMANDER, 3RD ARMORED CAV. REGT.: The most tangible thing we can see is that people are happy. Hope is rekindled. Children rush to our soldiers, people spontaneously express their gratitude to us and the Iraqi army.

MCINTYRE: Colonel McMaster is the commander of the Army's 3rd Armored Cavalry Regiment which is responsible for Western Nineveh province, including Tal Afar, which was an insurgent stronghold until U.S. and Iraqi troops cleaned it up last year.

MCMASTER: I mean, the enemy now, they're pretty much -- they're scoping around like rats, you know, at night, through the water (ph) systems and so forth in the city. They can't be seen because it is -- it is them who are afraid.

MCINTYRE: Far from a broken force, McMaster insists his soldiers, now wrapping up their second tour in Iraq, are energized by the progress they see daily.

MCMASTER: Our soldiers ought to be exhausted now, but -- but they're not. I mean, it seems like we're gaining energy every day because we see the difference we are making in real people's lives.

MCINTYRE: It's not the picture of Iraq that most Americans believe, but McMaster, who literally wrote the book on speaking truth to power, insists it's more accurate than the unrelenting violence would seem to indicate.

MCMASTER: There are people in the neighborhood where we're living who are naming their children after our soldiers, you know. And I know people don't see that.

(END VIDEOTAPE)

MCINTYRE: As his troops prepare to withdraw from Tal Afar and be replace by other soldiers, McMaster insists that he has won a victory there. But he says it's a fragile victory. The last time U.S. troops pulled out, the insurgents pulled back in. This time, he says the troops replacing his troops are bound and determined that that's not going to happen -- Christine.

ROMANS: All right. Jamie McIntyre.

Thanks, Jamie.

Coming up, the U.S. green card, a potent symbol of our nation's commitment to legal immigration, despite our growing illegal alien crisis. A special report on that ahead.

Plus, an urgent appeal from Immigration and Customs officials. Their probe of that massive border tunnel is heating up.

Bill Gates is taking sides with Google and communist China and against the cause of free speech. We'll tell you what he said in Davos, Switzerland.

And why communist Cuba is now trying to censor a beacon of hope for its citizens. The new war of words between the U.S. and Cuba coming up.

(COMMERCIAL BREAK)

ROMANS: In Colombia tonight, government officials say they have broken up a fake passport ring that they claim has ties to al Qaeda and Hamas. Nineteen people are under arrest for allegedly taking part in this operation.

Colombia says these suspects helped supply fake passports to Middle Eastern citizens to facilitate their entry into the United States and Europe. U.S. homeland security officials say there is no evidence that the operation was tied to any overseas terrorist organization.

U.S. Immigration and Customs Enforcement officials say their probe into who built that sophisticated border tunnel is moving swiftly. U.S. agents are conducting forensic testing of this massive tunnel the size of eight football fields that connects Otay Mesa, California, with the area around the Tijuana, Mexico, airport.

Agents want to know if drugs other than marijuana were smuggled through this tunnel. They want to know if illegal aliens or even weapons were smuggled into the U.S. as well. Officials found some two tons of marijuana in this tunnel and they're working under the assumption that members of the Arellano-Felix drug cartel is behind its construction.

This drug cartel based in the Tijuana area, it's been in operation since at least the early '90s. Officials call them a violent, highly organized gang. They say this gang may be diversifying its operations and smuggling highly potent crystal meth into the United States now.

Four top lieutenants of this organization are still on the loose and wanted by the United States. The U.S. is willing to pay a reward of as much as $2 million for information that leads to the arrests of any of these men.

ICE officials are issuing an urgent appeal tonight to anyone who helped construct or use this border tunnel. They say these people must turn themselves in to U.S. authorities as soon as possible. ICE says it has information that the lives of these workers are in grave danger as the probe into this border tunnel intensifies.

It says, "Given the sophistication of this tunnel, it's clear that the people responsible have significant resources at their disposal. There is no doubt that an organization like this will take whatever steps necessary to protect their interests, including taking human lives."

The head of the U.S. Border Patrol says he cannot rule out Mexico's involvement in a bold military incursion just days ago. Several men dressed in Mexican military uniforms were photographed helping Mexican drug smugglers on the U.S. side of the border.

Mexican officials deny any involvement, but U.S. Border Patrol chief David Aguilar says he's not convinced considering the men were dressed in military uniforms, driving military vehicles, and carrying military weapons. Aguilar and other U.S. officials are demanding that Mexico complete a full investigation.

As Mexican military incursions escalate, the Mexican government is accusing the United States of being too tough on border security. Some groups go so far as to call our illegal alien policies racist. What is lost in this debate are the hundreds of thousands of foreigners winning legal U.S. citizenship each year. It's a figure no other country can match.

(BEGIN VIDEOTAPE)

ROMANS (voice over): The United States has the most generous immigration policy in the world. Of the million people earning legal status in 2004, more than 400,000 were the relatives of U.S. citizens, 50,000 obtained a green card through a lottery system meant to keep immigration diverse, and at least 71,000 found refuge fleeing persecution.

Citizens of Mexico obtained the largest number of green cards every year. More than India, the Philippines and China combined. And Mexicans account for the greatest number of new Americans every year.

Indeed, the U.S. grants citizenship to more immigrants than any other developed country. A policy some criticize.

ROY BECK, NUMBERS USA: You can have reciprocity in terms of students and scholars and executives so that people are moving around the world. But to be bringing in a million people legally and making them citizens and to live here for life makes no sense at all.

ROMANS: While he'd like to see the U.S. restrict immigration like many other countries do, others would like to see it expanded.

TAMAR JACOBY, THE MANHATTAN INSTITUTE: The U.S. is doing, I think -- you know, gets a -- gets a C, where some countries get an F. But we can do a lot better, too, I think, if we recognize the reality of the flow and the contribution that these people make.

ROMANS: There is no doubt that the contribution legal immigrants make to American society.

(END VIDEOTAPE)

ROMANS: But as the United States tries to control illegal immigration, the name-calling is heating up, and that's what's so confounding. This is, by all account, the most generous country in the world to immigrants.

Still ahead, Google's new China venture gets support from fierce archenemy Microsoft.

And middle class workers have said it for years, new jobs are paying less. Well, now there's some startling proof. A special report on that ahead. (COMMERCIAL BREAK)

ROMANS: Google faces intense criticism in this country for its complete cave-in to the communist Chinese government over Internet censorship. But Microsoft chairman Bill Gates doesn't seem to have any problem at all with Google's sellout.

Gates said in Davos, Switzerland, today that Internet companies should continue doing business in China even if communist China demands that they censor material. Gates says the Internet, even a censored Internet, contributes to Chinese political engagement and will prevent more censorship.

That brings us to our poll tonight. Is Google's relationship with the communist Chinese government enough to make you stop Googling?

Cast your vote at LouDobbs.com. We'll bring you the results later in the broadcast.

Taking a look now at some of your thoughts, many of you wrote in about Labor Secretary Elaine Chao's comment that American workers have a skills gap.

Joanna from California, "Skills gap? The Labor secretary is absolutely right. How may of our scientists, engineers and mechanics know how to sling hamburgers at Jack in the Box or McDonald's? We're all going to have to be retrained."

Jim in Virginia, "I'm one of the skills gap folks that Secretary Chao must be talking about. I have a Masters degree in chemical engineering and nearly 30 years of R&D ad manufacturing experience. I've been outsourced three times since the age of 50. The skills gap I have is that I only speak three languages, but unfortunately none of them is Chinese."

And Dallas in Indiana, "The failure of the intelligence community to predict Hamas and the failure of homeland security to secure our borders, and the inability to see that free trade is hurting the average American tells me that maybe the lack of skill may be in the government."

We love hearing from you. Send us your thoughts at loudobbs@cnn.com.

Coming up, the new study that confirms what middle class workers have been saying for years, our nation's economy is not creating good- paying jobs. A special report coming up.

Plus, three of our nation's most distinguished political journalists on the uranium nuclear crisis and the rest of this week's headlines.

And the new U.S. war of words with Cuba. Why a beacon of hope for Cuban citizens may soon be extinguished.

(COMMERCIAL BREAK)

ROMANS: Still ahead, an alarming new poll for the White House. Former presidential adviser David Gergen will be my guest.

But first, a check of this hour's top stories.

New evidence tonight that the Judge Samuel Alito filibuster threat launched by some Democrats is hopelessly doomed. Most of the Democratic members of the bipartisan Gang of 14 now say they will either support the Alito nomination or at least vote against a filibuster. Alito's Senate supporters say they have more than a enough votes to confirm Judge Alito to the Supreme Court.

The FAA tonight is recommending banning a landing technique that may have contributed to a fatal jet crash in Chicago. This technique relying on reverse thrusters to slow planes down was used by Southwest Airlines pilots before their plane skidded off the runway in December. That crash killed a 6-year-old boy in a car hit by the jet.

And the U.S. Agriculture Department now wants to import poultry that's been processed in China. That's despite the fact that thousands of Chinese birds have died from bird flu. Critics say this plan would raise safety concerns.

President Bush will deliver his State of the Union speech next Tuesday, but the president is suffering from a serious image problem with voters. It's a problem that began when President Bush started his second term one year ago.

Bill Schneider reports.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice over): The image of good character helped George W. Bush get elected in 2000. He was the unClinton.

BUSH: When I put my hand on the bible, I will swear to not only uphold the laws of our land, I will swear to uphold the honor and dignity of the office to which I have been elected, so help me god.

(APPLAUSE)

SCHNEIDER: When he first took office in 2001, 64 percent considered President Bush honest and trustworthy. When he took office again a year ago, a majority still felt that way.

And now? A year of scandals and investigations has taken its toll. The public is now divided over whether Bush is honest and trustworthy.

Bush has always been seen as a strong leader. Sixty-one percent called him a strong and decisive leader when he first took office in 2001. Even before 9/11.

BUSH: And the people who knocked these buildings down will hear all of us soon.

SCHNEIDER: Sixty-one percent still felt that way when he started his second term.

And now?

BUSH: We're a party with ideas, we know how to lead.

SCHNEIDER: A bear majority called Bush a strong and decisive leader.

Under President Clinton, the country was divided. Bush offered this alternative...

BUSH: Why don't we have a uniter, not a divider.

SCHNEIDER: When he first took office, most people did see Bush as a uniter, not a divider. By the time he started his second term, Americans were not sure. They were divided over whether Bush was a divider.

No more. Now, most Americans call Bush a divider, not a uniter.

(END VIDEOTAPE)

SCHNEIDER: President Bush has to do a lot of things in his State of the Union speech. One of them is to begin the project of reclaiming the image he once had and lost -- Christine.

ROMANS: Bill, those are grim -- those are grim numbers.

SCHNEIDER: Indeed, they are.

ROMANS: How much faith do you have that he's going to be able to in that speech to try to turn it around? We heard him talking all week in the days coming up to this speech. What can he really do to turn it around?

SCHNEIDER: I think the one subject that Americans are most concerned about, one of the keys to his side, is Iraq. Americans want to know if there's an end game, an exit strategy, a light at the end of the tunnel. They're going to be paying attention it him, particularly what he says about Iraq on Tuesday night.

They're not waiting for the president to say we're going to remove troops immediately, because they understand the risks involved in Iraq. But they do want to know that there is an end in sight to this terrible war.

ROMANS: All right. Bill Schneider. Thank you, Bill.

President Bush's image is not his only problem as he pushes his second-term agenda. Most Americans might have already written him off as a second-term president. A new opinion poll says majority of American, 58 percent, believe the president's second term is a failure. Joining me now from Davos, Switzerland, former presidential adviser David Gergen. He has served four of our presidents.

Welcome to the program this evening. Already written off. There's some time to go yet, David, and a State of the Union address coming up here. What chance does he have to turn it around?

DAVID GERGEN, FMR. PRESIDENTIAL ADVISER: Well, it's a very good point that he has a lot of time left. Indeed, the president has more than 1,000 days left in office. And as you'll recall, that's more time than Jack Kennedy had an entire presidency. So there's a long way to go here, and I think the president can't turn it around instantly. He will come in flush from victory with the Alito, I think, nomination cinched up in the Senate.

But even so, I think he's coming into another tough year on the international front. Here in Davos at the World Economic Forum, there is sense that there's a gathering storm in the Middle East. Because it's not just Iraq now, but it's also Iran. And suddenly, the relationship between the Palestinians and the Israelis has become a lot more problematic. So there a lot of people here feel he's going into some of the most difficult waters he's faced on the international side.

ROMANS: You mention the Middle East. You've got an NSA scandal, you've got Hamas, a victory there. You've got Iraq. And you have a president who has all of these complications sort of boiling up around him. How does he manage all of this and also manage his image? I know he has been out this week -- there's been no shortage of questions and answer sessions from the president this week. Is this part of the strategy, to cover all these bases?

GERGEN: I think is. And, of course, he will try to put forward some proposals on the domestic side, such as health care. But the big proposal he was planning for this year, which was tax reform, has now been shelved by the White House. It just didn't -- they just didn't have a plan that was going to win a lot of support.

So what we're looking at on the domestic side is a lot of smaller proposals, not that they're unimportant, but they're smaller. But to come back to it, I think his hands -- he's going have his hands very full now with not just Iraq, but Iran is coming up very rapidly. And this Israeli issue with the Palestinians is going to be very tough. The next six to 12 months are going to be crucial in Iraq and could be well crucial in Iran and in what we --- the Israeli/Palestinian issue.

ROMANS: Let's talk about that issue for a moment, because the president has some important choices that he can make.

GERGEN: Sure.

ROMAN: You know, it is illegal to give money to a terrorist organization, which Hamas has been listed as. But if you take the money away from the table, do you drive away the moderates? Do you drive away the people in the Palestinian world who -- do you drive them further towards extremism? I mean, it's a tricky balance. GERGEN: It is a tricky balance. For America's purposes, it's obvious that it would be very helpful now if we stick very closely with the Europeans, have them stick with us, as opposed to the way we went into Iraq. And at this moment, we are very united with the Europeans. And I think the president has bipartisan support, and the Congress, to be pretty tough on Hamas.

I think instead of saying it's the president's choice, which way to go, it's really for the president to say it's Hamas' choice. They have to decide, are they going to be for terrorism, as they have been in the past, or now that they're running a government, are they going to be about seeking peace and consensus, which is giving up some of their past views.

He's yearly got to lay it out in a firm but not bellicose, not war-like way. This is really up to you, Hamas. You've got to decide which way you're going to go, and then we will make our decision about how much support you'll get.

ROMANS: All right. David Gergen in Davos, Switzerland. His advice...

GERGEN: In other words, he's got put the onus back on them.

ROMANS: All right, indeed. David Gergen.

GERGEN: Thank you very much.

ROMANS: Thank you very much, David.

Join us Tuesday for a special edition of LOU DOBBS TONIGHT. LOU DOBBS TONIGHT will have reporters across the entire country to find out the true state of the union, how middle-class Americans are affected by policies made in Washington.

Please join us Tuesday at 6:00 p.m. Eastern for this special broadcast with Lou Dobbs.

The latest evidence of the war of the middle class in this country comes in a new report from the conference of mayors. It finds that new jobs being created in our country pay significantly less than the jobs they replaced, 21 percent less, to be exact.

Bill Tucker reports.

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Manufacturing jobs are dwindling. On the rise are jobs in retail and health care. But those new jobs pay less, on average, $9,000 a year less, according to a study just released by the U.S. Conference of Mayors.

MAYOR KWAME KILPATRICK, DETROIT: When people work in a factory -- I mean, you're talking about a job with health benefits, a pension and a wage. Average wage there was about $43,000-plus dollars. And so when a job comes back at $34,000, people say, yes, they got job, but now they're less able to take care of their families. They can't pay the same house note.

TUCKER: It's not that jobs are not being created. Since 2003, 4.5 million jobs have been created. They pay less and have fewer benefits. Middle-class working people are sharing less and less of the economic wealth.

Look at what's happened to wages since 1979. Dramatic gains of productivity have outpaced gains in wages. It's a disturbing trend for the economy.

JOSH BIVENS, ECONOMIC POLICY INSTITUTE: Essentially, what keeps the U.S. economy going is consumption. That's the big thing. And if you squeeze wages hard enough, you won't have enough consumption demand to sustain an economic recovery.

TUCKER: The mayors are concerned because as wages fall, so does the tax base and the ability of a city to deliver on services. They want the administration to wake up to the issue.

KILPATRICK: If we don't seriously start to look at the wage gap, that where jobs that were last or jobs that are gained -- and not just say the economy is coming back -- then we will never get to a place where all metros strong or America is once again strong like it was in the 1990s.

TUCKER: America's major cities account for 87 percent of the country's gross domestic output.

(END VIDEOTAPE)

TUCKER: Adding to the concern over the weakening wages is a simple and almost unnoticed statistic in today's GDP report. Last year, we outspent our incomes by $41.5 billion and the country posted its first negative annual savings rate since 1933. In short, Christine, the consumers are running out of cash to prop up this economy.

ROMANS: And it sounds like the mayors are aware of this, yet on Washington and in Wall Street, we keep hearing how good this economy is. It depends on who you are. If you are average Joe, working family, it's not a great economy?

TUCKER: No. The comment that has been made by a number of economists is, which economy are you in? We are no longer one economy, but a set of diverse economies. And if you're in that top tier, that top 90 percent, you're doing fine and, in fact, doing better.

ROMANS: A lot of voters in that other economy, too. Great. Thanks, Bill Tucker.

Just ahead tonight, Senator John Kerry jets back from Switzerland to try to block the confirmation of Judge Samuel Alito to the Supreme Court. Was his effort worth all that jet fuel? Three of our country's top political commentators join us next. And a desperate move from the Cuban President Fidel Castro. How he's trying to stop the U.S. government from communicating with the Cuban people.

Stay with us.

(COMMERCIAL BREAK)

ROMANS: The shocking victory of radical Islamist group Hamas in the Palestinian elections was just one of the major stories this week.

Joining me now for more on the week that was, Joe Klein, columnist for "Time" Magazine; Ed Rollins, political strategist and former political director in the Reagan White House; and our very own Jeffrey Toobin, senior legal analyst. Thank you all for being here. What does the Hamas victory mean for stability in the Middle East -- Joe.

JOE KLEIN, COLUMNIST, "TIME" MAGAZINE: Well, we've had a bunch of elections in the Middle East in the past year or two, and not a single one of them has led to greater stability.

In fact, each has led to greater instability. In Iraq, in Iran, in even those kind of phony elections they had in Saudi Arabia and Egypt, the religious nationalists were empowered. This isn't going to make things any better.

JEFFREY TOOBIN, CNN SR. LEGAL ANALYST: What does that mean for what -- the Bush doctrine that we have to export democracy, that democracy is always good, and -- but look who wins. I mean, look who wins.

ROMANS: But you're saying maybe a ballot box is not necessarily a true democracy?

KLEIN: No. I mean, you know, people who really study democracy -- Bush is all about the rhetoric of democracy. The reality of democracy is that you have to have a middle class. You have to have the rule of law and you have to have freedom of speech. You have to have economic development, the kind of nation-building that his president ...

TOOBIN: But these are real elections. I mean, Hamas really did win.

KLEIN: Yes, but ...

ED ROLLINS, POLITICAL STRATEGIST: It's unfortunate and I think the critical thing here, I think this is the most disturbing to me and to our allies, certainly Israel, this election, because I think these are terrorists.

These are people who have literally been on the streets and thrown fire bombs and shot and killed people. And unless they show a total change of thought process, there's not going to be a peace in the Middle East in a long, long time. ROMANS: And I want to look at that Bush doctrine, exactly what it is, because on January 20th, last year, the president summed it up as this. "It is the policy of the United States to seek and support the growth of Democratic movements and institutions in every nation and culture."

He's got to be careful how he handles this here going forward, because this is also an organization with ties to Iran, which is a whole different kind of problem for the White House.

ROLLINS: Well, just, the mere fact you have a vote, and the mere fact that some people got elected doesn't necessarily mean you have a good system. And I think Joe's point, it's the economic stability.

What we have in our democracy is we allowed the system of capitalism that allowed small people to grow and prosper over time. And that's critical in that part of the country. And I don't see any signs of it at this point in time.

KLEIN: There's an old Islamist saying that was popular during the election in Algeria about ten years ago. One man, one vote, one time. And I think that what we see ...

TOOBIN: What do you mean by that? I don't ...

KLEIN: I mean that when the radicals come to power, there is no guarantee that there will be another election.

TOOBIN: I see.

KLEIN: And what you've had is not only the possible empowerment of Iran in Palestine, in the Palestinian territories, but you've already certainly had that with what's going to be the new government in Iraq. You know, the -- Sadr and other radicals in Iraq said last week that if we invade Iran, they're going to be on Iran's side.

ROMANS: Ed, how do you think the president is handling this so far?

ROLLINS: Well, I think to a certain extend, I think he's as shocked as anybody else was and obviously the information in the polling was terrible.

ROMANS: This is where Lou would say, how come our intelligence doesn't know this was going happen?

(CROSSTALK)

TOOBIN: So what? I mean, you know, even it's not our intelligence didn't know, it's the facts are the facts.

ROMANS: Right.

ROLLINS: In answer to your question, you know, I think the president, I think the secretary of state stepped out and basically said they have to behave. And they have to -- and if they don't behave -- I mean, the great fear here is we're now just into states. We're now into almost borderless ideologies and obviously this is a group that has certainly not been favorable to us or favorable to our allies.

KLEIN: I think he was totally knocked off guard. Let me quote from him yesterday. Bush said, "the people are demanding honest government. The people want services. They want to be able to raise their children in an environment where they can get a decent education and they can find healthcare."

You know, why is it that George Bush sounds like -- you know, when he talks about the Palestinians, he sounds like Ted Kennedy talking about the Americans. He was obviously backfooted on this and not exactly sure how to handle it.

ROMANS: Well, let's talk about the middle of the road, moderate Palestinians who may have voted for this terrorism organization, because they were so sick and tired of the other corruption they'd seen. Does the United States have to be very careful? Does the White House, Ed, have to be very careful about alienating that middle of the road, the people who really are the partners in peace?

ROLLINS: I don't believe there are any moderates there. I don't believe there are -- you know, -- I think I've heard about moderates in Iraq and Iran and now obviously there, and I think the bottom line is you've got a bunch of people who believed in terrorism, have believed in violence, and they've got to prove to me ...

TOOBIN: And they are due to receive a great deal of money from the United States taxpayers. What happens now? Do we continue to support the Palestinian enemy? I don't see how it's possible.

KLEIN: We can, but then Iran is going to rush in. You know, I think ...

ROLLINS: This is not our taxpayer dollars.

KLEIN: Let me get one cheer for democracy. There may not be very many moderates there now, although I think that there are. But there are going to be a lot more as this Hamas government has to deal with reality.

ROMANS: Right

KLEIN: I mean, the deputies, the Parliament members who live in Gaza are going have to cross through Israel to get to the Parliament.

ROMANS: Let's talk about the latest poll ratings on the president, 58 percent of Americans consider his second term a failure so far. He's got some time. David Gergen was pointing out, he's got plenty of time here, more time left than John Kennedy had in his entire tenure. What does the president need do quickly, gentlemen, to get it back on track?

ROLLINS: Well, first of all, I disagree with David. The end of a term usually the sands run out faster than the beginning, and I think to a certain extent, he's had a miserable, miserable year.

Whether he's going to have a miserable presidency is going to be measured, if there is any initiatives that come out. Right now I don't see any initiatives that he can have, and certainly nothing that's going it take attention away from the war which is obviously ...

KLEIN: He needs some big ideas that will capture the imagination of the American people on issues that they're actually concerned about like healthcare, like immigration, like energy independence.

TOOBIN: I think there are two things left in the Bush presidency. There's Iraq and there's the appointment of judges. And he'll continue to do that, because the Constitution says he has to do that. But other than that, I don't see much happening.

ROMANS: And then here's the NSA wiretapping scandal which is now called the terrorist eavesdropping ...

KLEIN: Terrorist surveillance.

ROMANS: Surveillance -- that's right. Sorry, eavesdropping. Anyway, well, we can talk about that again later. Thanks, gentlemen, very much. Ed Rollins, Joe Klein, Jeffrey Toobin, see you soon.

A reminder now to vote in tonight's poll. Is Google's relationship with the communist Chinese government enough to make you stop Googling? Cast your vote at LouDobbs.com. We'll bring you the results in just a few minutes.

Coming up at the top of hour here on CNN, "THE SITUATION ROOM" with Wolf Blitzer -- Wolf.

WOLF BLITZER, CNN ANCHOR: Thanks very much, Christine.

Mideast democracy, a double-edged sword? Will President Bush punish the Palestinians now for electing has Hamas?

Also, first it was Bill Clinton and Monica Lewinsky. Now Ken Starr is taking on Arnold Schwarzenegger. We'll have details.

And the Oprah Winfrey effect, high powered book publishers taken to task. Find out how this may change what all of us read.

And Michelle Kwan -- should she be allowed on the Olympic team even though she missed the main competition? We're going to bring you the decision of the U.S. Olympic Committee. All that coming up right at the top of the hour -- Christine.

ROMANS: All right, Wolf. We'll be watching.

Just ahead, we'll tell you who made our honor roll this week and a war of words in Havana. How the communist Cuban government is trying to silence a message of democracy from the United States.

And a weekly tribute to our nation's heroes. Army First Sergeant Brent Jurgersen was critically wounded in Iraq, twice. We'll have the story of his remarkable recovery, just ahead.

(COMMERCIAL BREAK)

ROMANS: Tonight, communist Cuba is escalating its battle with the United States over an electronic message board outside the U.S. mission in Havana. That sign has been delivering messages of freedom to the Cuban people, much to the outrage of Fidel Castro. Lucia Newman reports from Havana.

(BEGIN VIDEOTAPE)

LUCIA NEWMAN, CNN CORRESPONDENT (voice-over): As a bright red electronic ticker from the U.S. diplomatic mission in Havana streams human rights messages that can be seen blocks away, Cuban government bulldozers work around the clock, building a response.

This is the latest salvo in the war of the words between officials in Washington and Havana. Cuba's Fidel Castro personally inspecting the progress of the construction on Wednesday night, as the electronic ticker overhead asks, "why aren't Cubans allowed to stay in tourist hotels?"

"This is a provocation from that nest of cockroaches, as people call them. And excuse me for offending the cockroaches," said President Castro.

It's the second time he's publicly referred to the American diplomats in Cuba as cockroaches. First was Tuesday, when he organized more than a million people to march past the U.S. interest section. The U.S. responded with the ticker, in full view of everyone.

The electronic ticker put up last week mixes news headlines with human rights quotations, such as "no man is good enough to govern another without that person's consent. Abraham Lincoln." Or "read what you want, say what you think."

All this treacherous and unacceptable behavior from a diplomatic mission, says Castro. "The U.S. mission is the command post of the counterrevolutionaries in Cuba," he claims.

Washington's man in Havana insists the messages aren't meant to provoke, but rather to communicate with the Cuban people.

(on camera): Some of your diplomatic colleagues here are saying that you're pushing the limits of acceptable diplomatic behavior?

MICHAEL PARMLEY, U.S. INTERESTS SECTION CHIEF: International relations have evolved from being exclusively communications between governments of one country and another into being exchanges between peoples.

NEWMAN (voice-over): Castro says Washington is provoking him to rupture diplomatic relations, already at their lowest level.

(on camera): No one is saying when the mysterious construction will be completed, but whatever it is, U.S. officials say that they're sure that the aim is to block their messages.

Lucia Newman, CNN, Havana.

(END VIDEOTAPE)

ROMANS: Each week on this broadcast, we salute the individuals and organizations making positive contributions to the country. Among those earning our admiration and respect this week, Republican Congressman Chris Smith, the chairman of the House Global Human Rights Subcommittee. He is holding hearings on Capitol Hill over Google's agreement to censor material on its new Chinese Web site. Congressman Smith calls it a shocking case of putting profits over principles.

Also, retired Army officer Andrew Krepinevich. His new Pentagon- commissioned report is raising important questions over whether our troops are stretched too thin in Iraq and Afghanistan. This report, entitled "The Thin Green Line," says the U.S. Army is overextended and near a breaking point.

And finally, John Allison, chairman and CEO of North Carolina- based bank BB&T. His bank is now refusing to lend money to developers building on property seized through eminent domain. He says the very idea that private property could be seized by the government for private use is just plain wrong.

To check out who's on the honor roll, you can always log on to our Web site, LouDobbs.com.

Still ahead, the results of our poll, and our weekly tribute to our nation's heroes. One American soldier fights back after he was severely wounded in two attacks in Iraq. His story is next.

(COMMERCIAL BREAK)

ROMANS: And now our weekly tribute to our nation's heroes, the men and women bravely serving our country around the world. Tonight, the remarkable story of Army First Sergeant Brent Jurgersen. He survived not one, but two brutal attacks in Iraq.

(BEGIN VIDEOTAPE)

ROMANS (voice-over): Brent Jurgersen has been in the military for more than 16 years, and as an Army first sergeant, he is fiercely committed to his country and the 300-plus troops he led into war in February 2004.

1ST SGT. BRENT JURGERSEN, U.S. ARMY: I challenged myself to know every single soldier and every single soldier's family.

ROMANS: He knew their name and their wives' names, and promised to bring them home safely.

JURGERSEN: You are responsible for them. I mean, if anything happens to them, it's your responsibility.

ROMANS: In Iraq, Jurgersen took care of his troops, assigning tasks, hiring workers, making logistical runs. Then one day while out on an engineer mission, something went wrong.

JURGERSEN: All of a sudden, something hit me. The bullet struck my M-16, broke the charging handle off, and continued on, striking me in the face right below my nose.

ROMANS: The bullet penetrated his lip, broke seven teeth, shredded his tongue, and lodged in the back of his throat. He was in a coma for five days. When he woke, all he wanted to know...

JURGERSEN: How soon I can go back to Iraq and be with the guys.

ROMANS: To everyone's surprise, he was back in Iraq in four months.

JURGERSEN: Coming back to Iraq was the right thing to do, and I don't regret it at all.

ROMANS: He returned to lead his troops. With less than a month to go before being rotated out, he was securing polling sites when his Humvee was hit.

JURGERSEN: Heard a loud blast. And a light -- a bright flash. And I remember waking up, crumpled up against the radios in the truck, and the truck was filled full of smoke.

ROMANS: Jurgersen was critically injured again. This time, he had a traumatic brain injury. His right hand was fractured. His right knee injured, and his left leg was amputated.

But still, the warrior determined to bring his troops home. He pushed himself to recover in time to fly to Germany to welcome them.

JURGERSEN: It's the best medicine that there is. It's better than any doctor or any pill that they can give you. It's completion. It's knowing that -- that you guys are all home safe.

(END VIDEOTAPE)

ROMANS: First Sergeant Brent Jurgersen says his family has been a critical part of his recovery, and he's been selected to attend sergeant major academy this summer.

Earlier this week, we reported on a very worthy cause, the Intrepid Fallen Heroes Fund. It's trying to raise $35 million to build a state-of-the-art facility for American troops severely wounded in Iraq and Afghanistan. The center will be built at the Brooke Army Medical Center in San Antonio, Texas. To contribute to the fund, please call 1-800-340-HERO. You can also go to the Web site, FallenHeroesFund.org, or you can link to it through our Web site, LouDobbs.com.

Now, the results of tonight's poll. Fifty-seven percent of you said Google's relationship with the communist Chinese government is enough to make you stop Googling.

Thanks for being with us tonight. Please join us next week. Our guests will include the Reverend Jesse Jackson and award-winning journalist Peter Lance. For all of us here, good night from New York. "THE SITUATION ROOM" starts right now with Wolf Blitzer -- Wolf.

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