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Lou Dobbs Tonight
Battle on the Hill; Bush Calls for Unity to Tackle Nation's Problems; U.S. Military Outlines New Plans for the Iraqi Army
Aired January 03, 2007 - 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, President Bush challenging the new Democratically-controlled Congress to work with Republicans for the good of the nation. But is bipartisanship simply a political slogan for both parties?
We'll have live reports for you tonight from the White House and Capitol Hill.
Also, the antiwar protester Cindy Sheehan and her supporters break up a news conference on Capitol Hill being held by House Democrats to talk about a program that they insist did not include the war in Iraq.
We'll have that story.
And a graphic new illustration of the massive and widening gap between working men and women in this country.
And this country's corporate elites. Another top CEO resigning with a pay package of a mere $200 million for his efforts.
We'll have that special report, all of they day's news, a great deal more, straight ahead here tonight.
ANNOUNCER: This is LOU DOBBS TONIGHT, news, debate and opinion for Wednesday, January 3rd.
Live in New York, Lou Dobbs.
DOBBS: Good evening, everybody.
President Bush today declared that Republicans and Democrats have a clear opportunity to work together in the new Congress, which convenes tomorrow. President Bush called on the Congress to set aside politics and focus on the future as he outlined his domestic agenda for the next two years. But as President Bush delivered those remarks, hopes of a new spirit of bipartisanship on Capitol Hill evaporated. Congressional Republicans are furious with Democrats over their plans to push reforms through the House in the first 100 hours.
Dana Bash reports tonight from Capitol Hill on the new political battles.
And Suzanne Malveaux reports from the White House on the president's P.R. offensive. And Jamie McIntyre tonight reporting form the Pentagon on the military's urgent new efforts to build up the capabilities of the Iraqi army.
We turn first to Dana Bash on Capitol Hill -- Dana.
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Well, Lou, there certainly is an electricity here in the halls of Congress, anticipation about the changing of the guard tomorrow morning. And bipartisanship definitely is the buzz word.
CNN has learned that the White House even sent a plane to get Senate Democratic leaders who were at Gerald Ford's funeral in Michigan to bring them back in order to be at a reception at the White House with the president today. But despite all of that, there are already early signs of partisan strain.
(BEGIN VIDEOTAPE)
BASH (voice over): Across Washington, perfunctory promises to reach across party lines.
REP. RAHM EMANUEL (D), ILLINOIS: We're very clear that we want to work in a bipartisan fashion.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm looking forward to working with the new Congress.
REP. JOHN BOEHNER (R), MINORITY LEADER: Republicans want to work with Democrats.
BASH: Sounds great, but listen on.
REP. JEB HENSARLING (R), TEXAS: It appears that the first 100 hours of the Democrats' legislative agenda will come through a smoke- filled room.
UNIDENTIFIED MALE: We're clearly disappointed.
UNIDENTIFIED MALE: In my opinion, it looks as if the American people have been duped.
BASH: Not exactly the new Kumbaya Congress leading lawmakers have promised. GOP congressman are up in arms that Democrats plan to push their so-called first 100 hour agenda through the House, from ethics rules, to a minimum wage hike, and limit Republicans' ability to offer competing proposals.
It's instant role reversal.
REP. DAVID DREIER (R), CALIFORNIA: The lack of consultation with the minority, I am very disappointed.
BASH: Republicans complaining about the very tactics they used against Democrats for 12 years. And Democrats preparing to use their majority in a muscular fashion that for 12 years they described as abusive.
REP. NANCY PELOSI (D-CA), MAJORITY LEADER: But let's not have a charade about what they decide is bipartisan.
BASH: Republicans argue Nancy Pelosi is breaking her promise to make the House more open and bipartisan in order to make sure she quickly passes her campaign agenda.
REP. ADAM PUTNAM, RCCC CHAIRMAN: This is a missed opportunity to really change the way that the House does business.
BASH: Democrats insist they will be more open to Republican concerns after they deliver on their top election promises.
EMANUEL: We ran on agenda, the Democrats, to move this country in a new direction and to bring change.
BASH: But it's hardly just the complaints about rules and procedures undermining all the talk of bipartisanship. The biggest reason is competing agendas.
The president, for example, in one breath talked of working with Democrats. But in the next, pushed an idea Democrats vehemently oppose.
BUSH: ... the need to keep this economy growing by making tax relief permanent.
(END VIDEOTAPE)
BASH: House Democrats did unveil this afternoon some details about their first order of business, and that is changing the House ethics rules. Among the provisions they will be debating on Thursday and Friday of this week will be banning any lobbyist-funded travel and gifts, and also full disclosure, public disclosure of earmarks. Earmarks, of course, Lou, being lawmakers' pet funding projects.
DOBBS: Absolutely.
Dana, thank you very much.
Dana Bash from Capitol Hill.
Also on Capitol Hill, the antiwar protester Cindy Sheehan and her supporters today broke up a news conference being held by House Democrats to discuss ethics reform and reform of lobbying efforts on Capitol Hill. Sheehan and a dozen of her supporters drowned out Democratic caucus chairman Rahm Emanuel as he tried to speak to reporters about the Democratic efforts to reform specifically lobbying.
Emanuel quickly decided to simply abandon that news conference and retreated to the caucus room. Sheehan said grassroots put the Democrats in power and Democrats should be focusing on Iraq and bring home our troops. President Bush today said he is committed to tackling what he calls the most urgent needs of this country. In his statement in the Rose Garden today, President Bush outlined his domestic agenda for the last two years of his administration. The president will announce the new strategy for the war in Iraq as well next week.
Suzanne Malveaux reports from the White House.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice over): Emerging from his first cabinet meeting of the year, President Bush didn't even mention Iraq. But once again, framing it as part of the war on terror.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: ... the need to protect ourselves from radicals and terrorists, the need to win the war on terror.
MALVEAUX: Instead, he tried to sell his domestic agenda to the incoming Democratic-controlled Congress.
BUSH: And together, we have important things to do.
MALVEAUX: The president's Rose Garden message and rate op-ed in Wednesday's "Wall Street Journal" calling for bipartisanship reflects Mr. Bush's new political reality, that he needs to change course to get things done. But even within his own party the question remains, is he willing to change course in Iraq by possibly calling for more U.S. troops?
UNIDENTIFIED MALE: I think it's very clear that the administration is very open to this possibility.
MALVEAUX: The conservative policy group the American Enterprise Institute has been lobbying the White House to order such a surge. Insiders say the debate over the prospect has been fierce, but that the president is likely to send anywhere from 20,000 to 40,000 additional men and women.
UNIDENTIFIED MALE: I don't think this is a question simply of stubbornness and refusal to admit defeat. I think this is a question of the administration recognizing that defeat will have terrible consequences.
MALVEAUX: But some warn if the president does sign off on more troops, it could be devastating.
LAWRENCE KORB, CENTER FOR AMERICAN PROGRESS: We already surged back in the fall. And what happened is more Americans died when we surged. The Iraqis were supposed to send six battalions into Baghdad, along with the extra 7,000 American troops. Only two showed up.
So when people say, "Well, you've got to train them," well, it's not a question of training. It's motivation.
MALVEAUX: But the bottom line, White House officials insist, is Mr. Bush has not signed off on anything yet.
TONY SNOW, WHITE HOUSE PRESS SECRETARY: It's not done yet. The policy is not done. He's still is talking to people.
(END VIDEOTAPE)
MALVEAUX: And Lou, those who are familiar with the president's deliberations over Iraq say they expect those consultations, discussions to wrap up sometime on Friday. And then on Monday, White House officials will reach out, make courtesy calls to members of Congress to brief them on the president's Iraq plan. And then it's likely Tuesday or Wednesday, the president will present his plan to the American people in a national address -- Lou.
DOBBS: And Cindy Sheehan and her antiwar demonstrators, apparently they're at the White House now. Is that right, Suzanne?
MALVEAUX: That's right. You might be able to hear them in the background. Cindy Sheehan and others have been announcing, calling for the names of American soldiers lost in the Iraq war.
DOBBS: Suzanne, thank you very much.
Suzanne Malveaux from the White House.
The military today reported the deaths of three more of our troops in Iraq. The three soldiers were killed in separate incidents near Baghdad. One hundred sixteen of our troops were killed in Iraq in December. That is the third highest monthly total in this entire war.
3,006 of our troops have been killed, including one now this month. 22,565 of our troops have been wounded, 10,107 of them so seriously they could not return to duty within three days.
The U.S. military today said it's moving forward with plans to give the Iraqi government total control of the Iraqi army by the end of this year. This, despite serious and persistent concerns that many Iraqi army divisions are simply incapable of fighting the insurgents without American support. Some Iraqi units are even believed to be sympathetic to the enemy.
Jamie McIntyre reports from the Pentagon now -- Jamie.
JAMIE MCINTYRE, CNN SR. PENTAGON CORRESPONDENT: Well, Lou, some boldly optimistic predictions from the top military spokesman in Iraq today, who said that by year's end, all 11 Iraqi divisions will be capable of operating independently, although they may still need some logistics and intelligence support from the U.S.
Major General Bill Caldwell acknowledged what he called some disheartening lows in 2006, but said by this time next year, the dynamic in Iraq will be "completely different."
(BEGIN VIDEO CLIP) MAJ. GEN. WILLIAM CALDWELL, SPOKESMAN, MULTINATIONAL FORCE, IRAQ: Really, the key difference that you're going to see in 2007 is, this is truly the year of transition and adaptation. We are going to transition and by the summertime have turned back over, ensure that all Iraqi army divisions are back under the Iraqi ground forces command, that they'll be in charge of all the command and control of all the Iraqi ground forces.
(END VIDEO CLIP)
MCINTYRE: General Caldwell also said the Iraqi government is investing $1.5 billion in upgraded equipment, including new helicopters, 300 armored vehicles, 600 armored Humvees.
But let's not forget that a year ago, General George Casey, the top commander, was similarly optimistic, predicting that over the course of the year, the U.S. troops would be able to be withdrawn as Iraqi troops stepped up and that the violence would wane. We know a year later, those predictions didn't come true -- Wolf.
Lou -- sorry.
DOBBS: Thank you, Jamie. I appreciate it.
Jamie McIntyre from the Pentagon.
A new CNN opinion poll shows nearly 80 percent of voters say it is time for significant changes in the U.S. policy in the war on Iraq. The poll conducted by Opinion Research Corporation also says voters from both political parties now support key elements of the Democratic agenda in the new Congress.
Bill Schneider reports.
(BEGIN VIDEOTAPE)
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice over): The new House Democratic majority is all set to hit the ground running. How far will they get?
THOM MANN, BROOKINGS INSTITUTION: The reality is those items have to clear the Senate, where super majorities will be needed, and then be signed by the president.
SCHNEIDER: The Democratic majorities are small. One vote in the Senate. They can't do much without Republican support.
Many items on the Democrats' agenda are also favored by Republicans: allowing the federal government to negotiate lower drug prices, raising the minimum wage, cutting the interest rate on student loans, implementing the recommendations of the 9/11 Commission, ethics reform. A couple are favored by Democrats but not Republicans: banning private Social Security accounts, funding embryonic stem cell research.
Neither Democrats nor Republicans favor reducing federal tax breaks for oil companies and changing the rules so that Congress can create new spending programs only if taxes are raised or spending on other programs is cut. Message to Democrats, be careful about taxing and spending.
Americans voted to end the partisan bickering. Republicans are complaining that by suspending regular House procedures for the first 100 hours, the Democrats are using their new majority to run over them.
The Democrats' response?
PELOSI: All of these have been vetted through the committee process. Some of them have even passed on the floor.
(END VIDEOTAPE)
SCHNEIDER: To voters, the most urgent issue is Iraq. Now, are House Democrats running away from that issue? It's not on their 100- hour agenda. But Iraq will be the focus of committee hearings in both the House and Senate, and those hearings may be where the real action is -- Lou.
DOBBS: Bill, thank you very much.
Bill Schneider.
Coming up next here, corporate ethics in this country giving them -- giving way to -- well, you can't imagine this, but greed. Generous severance deals, big pay packages for CEOs as our middle class struggles to keep up.
We'll have that special report.
Also, the Catholic Church at it again, or still, supporting amnesty for illegal aliens, blasting efforts to enforce our immigration laws and secure borders.
We'll have that story.
And the Bush administration appears determined to give amnesty to illegal aliens and benefits that hard-working Americans have taken years to earn.
We'll have that special report, a great deal more still ahead.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: An agreement with Mexico awaiting the president's signature could put benefits from our overburdened Social Security system in the hands of hundreds of thousands of illegal aliens.
And Immigration Customs Enforcement finds itself under legal attack over its raids that swept up more than 1,200 illegal aliens.
Christine Romans tonight reports on a government plan that will make it easier for illegal aliens to collect U.S. Social Security.
Bill Tucker reports on the Catholic Church and its efforts to attack ICE for its raids on illegal workers.
But first we turn to Christine Romans with an astounding story -- Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, after three and a half years of legal battle, details are emerging now about an agreement between the U.S. and Mexico to expand Social Security benefits to Mexican citizens working in the United States.
(BEGIN VIDEOTAPE)
ROMANS (voice over): An illegal alien working with a fraudulent Social Security number has been paying into Social Security. Once that worker gains legal status, he can claim those Social Security credits and tap into Social Security benefits.
The Bush administration wants Mexico's citizens working in this country to qualify for Social Security payments and, in some cases, illegal aliens will benefit, too. The U.S.-Mexico Social Security Totalization Act will help workers qualify even sooner, in as little as 18 months.
SHANNON BENTON, TREA SENIOR CITIZENS LEAGUE: As far as how much they have to work in the United States to eliminate the dual taxation and claim benefits here in the U.S., they would only have to work six credits.
ROMANS: She represents 1.2 million senior citizens who filed a Freedom of Information Act request to get a look at the agreement which awaits the president's signature. Critics say it's a costly giveaway at a time when Social Security's solvency is in doubt. But the Social Security Administration estimates the agreement will cost $105 million for the first years and will have "... a negligible long- range effect on the Social Security trust fund."
But there have been concerns for years about this. The Government Accountability Office in 2003 warned, "The proposed agreement will likely increase the number of unauthorized Mexican workers and family members eligible for Social Security benefits."
(END VIDEOTAPE)
ROMANS: The White House today says the president has not yet signed this agreement and he has no immediate plans to. But under current law, many of these benefits are already available to illegal aliens once they do gain legal status -- Lou.
DOBBS: Now, let's put this in context.
ROMANS: Sure.
DOBBS: It takes an American citizen 10 years to gain Social Security eligibility and benefits? ROMANS: That's right.
DOBBS: An illegal alien, under this law, should the president have the temerity to sign it -- and he's shown no reluctance to work on behalf of the Mexican government -- how long do they have to work?
ROMANS: Six credits they call it. That's 18 months. So they work eight and a half years in Mexico, and then the U.S. government recognizes that time in Mexico as part of the 10 years it's needed in the United States.
DOBBS: That is absolutely insane. How do they excuse this? And how do they come up with an estimate of $105 million?
This government doesn't even know how many illegal aliens are in this country. Somewhere between 11 million and 20 million are the estimates.
So how can they have an estimate of any kind?
ROMANS: Well, that's something the GAO pointed out. They said any -- any risk would be to the high side of any kind of estimates. But the Social Security Administration disputed that GAO finding.
In terms of how they can -- how they can, you know, say that they want to do this with Mexico, they do it with 21 other countries. But those are industrialized countries. And the critics point out that their Social Security operations in, say, Switzerland, in Canada and some of these other countries, the U.K., are far, far different than Mexico's.
DOBBS: And this president, with the audacity to go forward with this -- I mean, this is -- just when you think that this government can't show more arrogance or more ignorance on the issue of border security and immigration, it outdoes itself.
Christine, thank you very much.
ROMANS: You're welcome.
DOBBS: Christine Romans.
That brings us to the subject of our poll tonight.
Do you believe our already broken Social Security system can handle the demand of paying benefits to illegal aliens who have worked in this country a whole 18 months? Yes or no?
Cast your vote at LouDobbs.com. The results coming up here later.
Immigration and Customs officials tonight are under fire. They're facing new lawsuits and an attack from the Catholic Church over last month's raids that netted more than 1,000 illegal aliens working at Swift meatpacking plants in six states. This outrage over the fact that a federal agency actually, for a change, and so rarely, actually enforced U.S. law.
Bill Tucker reports.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice over): Even before these raids were carried out, they were mired in legal challenge. Swift and Company filing request for a temporary restraining order to stop the raids from taking place. Since the raids, four additional lawsuits representing 256 people have been filed. Not all of the complaints are of the legal kind.
The Minnesota Catholic Conference, led by a group of seven bishops, is angry about the raid, saying they've heartlessly divided families, and they are calling for an end to any enforcement action.
BISHOP BERNARD HARRINGTON, MINN. CATHOLIC CONFERENCE: We're saying, let the politicians solve the law. That's their responsibility. But they aren't even doing that. They have to stand up and say the system is broken, now we must address the dignity of human beings, we must address the fact that we have 12 million people living in our country.
We can't split up families by sending some back. There has to be a process that allows these things to become legalized.
TUCKER: Bishop Harrington's diocese includes the town of Worthington, Minnesota. Fifteen of the people arrested in Worthington have been charged with aggravated identity theft.
A spokesman for Immigration and Customs Enforcement says the raids were law enforcement actions and nothing more. "Immigration and Customs Enforcement targets its efforts at those breaking the law. If you're breaking the law, you shouldn't be surprised that you might be caught in an enforcement action."
Advocates for enforcement of immigration law find it disturbing that the ICE action is being met with protests over the simple fact that an agency is fulfilling its responsibility under the law.
JOHN KEELEY, CENTER FOR IMMIGRATION STUDIES: If the men and women in ICE are going to get beat up politically here, or even have their careers in jeopardy for, number one, enforcing the law and, number two, targeting felonies perpetrated against U.S. citizens, I don't think we have much hope for the U.S. government enforcing immigration laws.
TUCKER: In his view, the consequences are dire, particularly with an administration that has never supported immigration enforcement.
(END VIDEOTAPE)
TUCKER: Now, ICE has won all of the legal challenges and complaints against it except for one. That's where the plaintiff has complained that he's fluent only in the Mayan tongue Keketua (ph). And ICE failed to provide its notice to appear in that language.
Now, Lou, I know it sounds -- but it's true. In the complaint the plaintiff admits that he is here illegally -- Lou.
DOBBS: Couldn't they have gotten Mel Gibson to do translation or something? I mean, that's striking.
You know, I just -- as I said to Christine, just about the time you think this government can't display more ignorance, more arrogance, you come up against a Catholic Church lecturing on a very secular matter, and that is border enforcement and U.S. law. These sanctimonious bishops are just out of control.
What in the world are they thinking?
TUCKER: I don't know. And you can't help but wonder, would they be so forgiving and so easy if these people were breaking church law?
DOBBS: Yes. Well -- well, I won't go there. But there's plenty of public record on that as well.
Thank you very much.
Bill Tucker.
Coming up next, the gap between this nation's wealthiest and it's poorest citizens continues to widen. We'll have a report on why.
And the new Congress making big promises about looking out for the middle class. Some are saying it's business as usual, however, in Washington. Let's hope not. We'll hear from our distinguished panel of political analysts.
Two U.S. Border Patrol agents convicted of shooting a Mexican drug smuggler are preparing to report to prison while his immunity from prosecution keeps him from prison.
We'll be talking with two congressmen who are trying to right this wrong.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: A stunning example tonight of the widening divide between this country's wealthy elites and our middle class. The CEO of Home Depot, Bob Nardelli, leaving his job but taking away $210 million.
Lisa Sylvester reports.
(BEGIN VIDEOTAPE)
LISA SYLVESTER, CNN CORRESPONDENT (voice over): Home Depot began the year by cleaning house. CEO Robert Nardelli parted ways with the company under a mutual agreement. The chief executive has been under fire from shareholders. The stock price is now lower than the day Nardelli walked in the door, despite the fact he collected more than $150 million in six years, with an annual bonus of $3 million. Like a new breed of CEOs, Nardelli's compensation package was virtually guaranteed and includes a platinum parachute of another $210 million.
RICHARD FERLAUTO, AFSCME: He came in with a huge package that was guaranteed, and now he's leaving with even a bigger package that's guaranteed. And in between, shareholders get very little return.
SYLVESTER: Congressman Barney Frank heads the House Financial Services Committee. He's pushing for legislation that would allow stockholders to vote on corporate compensation packages like Robert Nardelli's.
REP. BARNEY FRANK (D), MASSACHUSETTS: It is excessive, particularly given the fact that they were firing him.
SYLVESTER: Other CEOs that have had a lucrative exit include Pfizer's former CEO, Hank McKinnell. He received $200 million.
Former Fannie Mae CEO Franklin Raines will receive a $1.5 million pension every year for life, plus stocks. He was forced out for irregular company accounting.
Critics say these jumbo compensation packages are down right obscene when stacked against the wages of the average employee.
BOB WOODHOUSE, Americans UNITED: In the first two hours and two minutes of the first work day of the year, the CEOs at large companies in America, those with a billion dollars in revenue or more, will have already made more than a minimum wage worker will make for an entire year.
SYLVESTER: Shareholder groups are also pushing for more transparency. Many executive compensation packages are kept a secret. For example, Home Depot has named a new CEO but will not reveal his take-home pay.
(END VIDEOTAPE)
SYLVESTER: Runaway executive pay is an issue that should receive more attention now that Democrats are in control of Congress. They are concerned not only because of the disparity between the CEOs at the top and the average worker, but also because of the impact it has on workers' pensions -- Lou.
DOBBS: And it's an example, and unfortunately it is a gross example, where the SEC does have a legitimate ability here under law and regulation to inquire into whether or not the shareholders of Home Depot have actually been diminished as a result of the actions of the board which has permitted this pay and the failure of Nardelli to deliver anything remotely resembling shareholder value, which is often the Wall Street jargon to rationalize these obscene and excessive pay packages. It's remarkable.
Lisa, thank you very much.
Lisa Sylvester from Washington.
The AFL-CIO secretary-treasurer, Richard Trumka, had this to say about Home Depot's pay-out to Nardelli: "Home Depot," he said, "must take critical steps to ensure that working men and women who are interested in the company are not victims of runaway executive pay or options abuse." It seems way too late for that.
Up next, two U.S. border patrol agents about to go to prison for doing their jobs. Congressman Walter Jones and Congressman Ted Poe, they want those agents to receive a presidential pardon. They're working to achieve just that. They'll be our guests here.
And the new Congress hasn't yet convened, but it's business at usual already. We'll have a report on what we can expect with the Democrats now in control of Congress.
And more than a dozen people dead after two massive winter storms in the west. That story, a great deal more coming right up. Stay with us.
(COMMERCIAL BREAK)
DOBBS: The days of official mourning are ended. Former President Gerald R. Ford has reached his final resting place. An estimated 57,000 people filed passed Ford's casket at his presidential museum in Grand Rapids, Michigan. The final funeral service held at Grace Episcopal Church where the Ford family has worshiped since the 1940s. The 38th president of the United States laid to rest on a hillside overlooking the presidential museum.
Thirteen deaths are now blamed on the back-to-back blizzards striking the nation's Midwest. New Mexico, one of several states where residents in rural areas were cut off for days. National Guard helicopters were dropping MREs, meals ready to eat in remote homes. Bails of hay being dropped for cattle. One big challenge remaining, restoring power to thousands of customers. As one guardsman put it, you lose power out here, you might as well be in the 1985.
The Democrats take over control of the House and the Senate tomorrow and their leaders have outlined ambitious plans. But there are already signs that bitter partisanship may derail some of that agenda at least, leaving the nation's middle class no better than they were under the Republicans. Candy Crowley joins us now live with this preview. Candy, we're going to see a lot of celebrating over the next few days with the Democrats in particular. What do you think we can expect to be accomplished?
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Well, I think what you'll see -- I wouldn't look for anything big. The president talked today about Social Security reform and Medicare reform. There are just so many fundamental differences between Democrats and Republicans on this. I don't see anything major happening on it.
But you do have things like minimum wage, which Democrats are determined, and the increase in minimum wage. The Democrats are determined to put out there. The president has signaled that he's ready to discuss that. So you could get a minimum wage. You could get a decrease in the interest on student loans.
So the Democrats have put forth what basically is a modest agenda, ethics reform, maybe having an outside ethics investigations when needed, that sort of thing. Looks like they may -- who's going to vote against ethics reform? I'm not sure there's a single person up there that will do it.
DOBBS: Well Candy, as you know, that isn't the way they do it down yonder. They simply let it die of its own accord. The Democrats have the capacity here and we will certainly, we in the national news media will be holding them accountable on this, because we've seen what happens over the past 30 years when the House and the Senate under the control of either party it's embarked on excesses that were unimaginable.
CROWLEY: Absolutely, absolutely. And I think ethics is one thing that they're not going to be able to -- so much focus has been on that, and we know from the exit polls in the election that corruption was one of the things that people did go out and vote on. So there's that, but there's so many things in the fates that argue against major reforms. There is not much of a majority in the Senate, as you know.
DOBBS: Right.
CROWLEY: The one thing that I think -- that will get a good look is immigration reform. As you know, the president was closer to the Democrats than he was to the Republicans on this. And if they're going to accomplish something major, it may be immigration reform.
DOBBS: When you call it immigration reform, as an old and getting older reporter, when I hear that word "reform," I get real suspicious.
CROWLEY: How about just an immigration bill?
DOBBS: Yes, it's illegal immigration amnesty and giveaway. In the minds of some, and I would be one of those some. Thank you very much, Candy Crowley. We look forward to your reporting as you begin on this new era. Thank you very much.
CROWLEY: New adventure, thanks, Lou.
DOBBS: Coming up next, two U.S. border patrol agents preparing to go to prison for doing their job, trying to protect us from drug traffickers. We'll be joined by two U.S. congressmen fighting this brave wrong. Stay with us.
(COMMERCIAL BREAK)
DOBBS: A new study shows that a key component of what some call the North American Union simply won't work. A Texas A&M transportation study shows the trans-Texas corridor, that's the super highway from the Mexican border across Texas, won't meet the state's needs and will lack necessary funding.
As it stands, the overall plan, officially called the Security Prosperity Partnership of North America, it was signed by the presidents of the United States and Mexico, the prime minister of Canada, without congressional debate, approval, national dialogue or discussion. It has major corporate backers, of course. Its goal is for the three countries to integrate their economies.
Critics say the union fights U.S. interest and could be the first step to a loss of U.S. sovereignty. It wouldn't be the first step, but the first major step at least under the terms of this agreement. We'll see what happens and we're going to follow it very closely on this broadcast.
Two U.S. border patrol agents who were convicted of shooting a Mexican drug dealer that they were at the time pursuing across the border are scheduled to begin serving their prison terms later this month. Their supporters say the agents were simply doing their jobs.
Members of Congress have petitioned the president to pardon those agents. Two of the congressmen join us here tonight. Congressman Ted Poe, Republican from Texas, Congressman Walter Jones, Republican from North Carolina. Gentlemen, good to have you with us.
Let me turn first to you Congressman Jones. The idea that the president -- how many of you signed the letter, first, 50 congressmen?
REP. WALTER JONES (R), NORTH CAROLINA: Yes, sir, we sent a letter back in December initiated by Dana Rohrabacher with 55 members of Congress asking the president to consider a pardon. I myself had sent three letters to the president of the United States and I have been so disappointed in the indifference of this White House and the president, quite frankly.
DOBBS: He hasn't responded? Not one of his senior aides has called you or said...
JONES: Well, we received a "No" response, if I can put it that way, from the Justice Department, that said nothing, quite frankly.
DOBBS: Same story for you, Congressman?
REP. TED POE (R), TEXAS: Yes, the letters that we sent to the president -- we didn't get a letter back from the president, the White House. We got a letter back from a junior U.S. attorney in the Justice Department, saying the U.S. Attorney's Office is not going to do anything about the case.
DOBBS: Before we even get to the merits of this, you're both Republicans. You've both been to the White House. You rub shoulders with this president.
You're from Texas, for crying out loud. How long have you known this president?
POE: I've known the president a long time, even before he was governor of the state, 15 years.
DOBBS: So he doesn't really -- how do you explain this?
POE: I don't understand it. It seems to be blissful indifference at the administrative level on this issue of the border agents that were wrongfully convicted in this matter.
DOBBS: You and everyone who watches this broadcast knows, you and Congressman Jones, that the U.S. Justice Department had to go after these two agents. They had to make a conscious decision to do this and they had to do so it seems -- I'll say it straight out. I'd love to hear what you think. But it seems like they had to do so at direct orders of Alberto Gonzalez, the U.S. Attorney General.
JONES: Lou, I will speak quickly because Ted's a former judge in Texas. But I will tell you what I know about it. And I'm learning something new each and every day. I'll be speaking to one of the attorneys for one of these two men tomorrow morning.
I believe sincerely that this whole prosecution of these two men is one of the greatest examples of an injustice that I have ever seen. And somewhere along the way, I think there's a skunk.
DOBBS: You got an idea where that skunk is, Congressman Poe?
POE: The Justice Department had a choice here to prosecute a known drug dealer bringing in a lot of dope into the United States or prosecute two border agents that violated some policy. And they chose the side of the illegal drug smuggler over the border agents. And that seems to be the policy of our federal government: when in doubt, take the side of the illegals. And I think the American public is tired of that policy from the Justice Department.
DOBBS: Well, you know, I won't speak for anybody but myself. But I'm sure tired of what looks like to be sheer accommodation to the government of Mexico, rather than inspired defense of U.S. sovereignty and the men and women who support and defend the borders of this country.
POE: No question about it. These two border agents, one of them nominated for Border Agent of the Year, doing their job. And they're being punished for doing their job. Our government's on the wrong side of this issue. We treated the illegal -- taxpayers treated the illegal. He's suing the federal government for $5 million. He's a known drug smuggler. He was given immunity from prosecution for bringing drugs into the United States.
MATTHEWS: The Border Patrol Council, the union tells me, Congressman Jones, that this would have been an administrative issue, the firing of their weapons, unless the U.S. Attorney decides to go after this case, give a drug dealer immunity to testify against two agents who everyone said -- is satisfied was transporting drugs, fleeing our federal agents. I mean, I don't understand it.
JONES: Lou, as you know, the prosecutor, the federal prosecutor wanted to charge these and did charge them with attempted murder for shooting an illegal drug smuggler, as you said.
And I hope -- Lou, I want to thank you and CNN for your interest in this issue. And I want to remind the people watching this show that they can call 202-456-1111 and let their outrage speak to the president of the United States and remind him that he is to defend this country from an invasion south of the border, in this case, a drug smuggler.
DOBBS: Well, you know, when you can't even get a Republican president to respond to a fellow Texan, two Republican Congressmen, respond to 55 U.S. Congressmen...
POE: I called the White House this week asking for even a verbal response and didn't get any response to that.
DOBBS: You know, there's arrogance and there's sorry arrogance. Where does this fit?
POE: Well, we need an answer and we deserve an answer. And I'm not going to categorize which type of arrogance. Lou, I'll let you do that.
DOBBS: I'll leave those choices to the viewers. But it's one or the other and it sure isn't right.
Thank you very much, gentlemen.
Thank you for pursuing this and pursuing a further investigation.
JONES: Thank you, sir.
POE: Thank you, Lou.
DOBBS: Congressman Poe, Congressman Jones.
Coming up at the top of the hour here , the "SITUATION ROOM" with Wolf Blitzer -- Wolf.
WOLF BLITZER, CNN ANCHOR: Thanks very much, Lou.
Are Nouri al-Maliki's days as Iraq's prime minister numbered?
And how angry are U.S. officials with Iraq for the growing controversy over Saddam Hussein's execution?
We'll get some answers Pulitzer Prize-winning "New York Times" reporter John Burns in Baghdad.
Also, a dire warning from a top religious broadcaster of a terrorist attack he says could kill millions of Americans. We'll have details of Pat Robertson's prediction and where he says he's getting his information.
Plus, the new Democratic leadership poised to make history tomorrow. We're going to show you something you might know about Harry Reid and Nancy Pelosi. All that coming up right here in the "SITUATION ROOM" -- Lou.
DOBBS: Wolf, thank you.
Coming up next, our political round table. Democrats, are they taking control of Congress to make good on promises of bipartisanship or just taking control of Congress?
Stay with us.
(COMMERCIAL BREAK)
DOBBS: Joining me now, three of the very best political analysts in the country: former White House political director, Republican strategist Ed Rollins; Democratic strategist, Democratic National Committeeman Robert Zimmerman; and "New York Daily News columnist and editorial board member Errol Louis.
Gentlemen, good to have you with us.
My gosh, the president wrote an editorial in the "Wall Street Journal", gave a Rose Garden statement -- its...
ED ROLLINS, REPUBLICAN STRATEGIST: This was his party's fault. It sounds like it was Republicans that were basically keeping him from doing everything he wanted to do.
DOBBS: It was a remarkable performance. I mean, he's got -- he's figured out that he wants line item veto. He talked about working people, small business people, entrepreneurs. What happened to all those big multinationals and corporate America that's been dominating his agenda for six years?
ROLLINS: I don't know. Maybe it's Christmas spirit or whatever. But the key thing -- the key thing is he'll have good cooperation for about a day. And once they get through their victory parties tomorrow and get back to trench warfare next week, then he's got a very tough couple of weeks here.
Whatever he lays out for his Iraq policy obviously will be opposed by the Democrats. Whatever he put out for a budget will be opposed the Democrats. And whatever they decide to pass jointly will not be in his best interest or the country's best interest.
DOBBS: What do you think, Errol?
ERROL LOUIS, "NEW YORK DAILY NEWS": Well, that sounds about right. I mean, the president got religion on earmarks. He was shocked to discover that over 15,000 were passed last year. His solution, of course, is the line item veto, enabling him to make those choices. And, of course, he talked about not using political legislation just to make a statement.
And I had to go back and think, was like, "Now, was this the guy who suggested six Constitutional amendments, including the ban on same sex marriage?" And in fact, it was. So he's going to try and dig in. As a first attempt, this one was almost laughable. I think it will get more serious, as Ed suggests, where they start digging in on the details and trying to gum up the works.
ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: You know, it reminded - it sort of reminded me of that scene in "Casablanca" where they were shocked about the gambling that was going on at the casino. The point is, this president expresses shock, of course, at the plight of this country during his press conference yet it was his party and his presidency that's given us the situation.
DOBBS: OK, now that was all good, leading right up to November 7th, Robert.
ZIMMERMAN: OK, here we go.
DOBBS: But now you've got the Senate and the House, Rahm Emanuel standing out and Cindy Sheehan and her supporters shouting are down the Democrats right there on Capitol Hill, saying you're talking about everything but the war in Iraq. We've got more than 3,000 people dead, more than 20,000 people wounded. What in the heck? Where is the sense of urgency? What are you doing?
ZIMMERMAN: Well, I think the fact that we've even changed the dialogue about the war in Iraq.
DOBBS: Oh, baloney. Wait, Robert...
ZIMMERMAN: Let me finish my point.
DOBBS: Wait a minute, no. Changing the dialogue...
ZIMMERMAN: Absolutely.
DOBBS: You guys have been after these Republicans, and deservedly so, let me say. But now is the time to get serious. We've got people dying, we have confused strategy, we're hearing more nonsense about a discussion of a change of strategy.
ZIMMERMAN: Lou, what you're hearing from Democrats is, first of all, the idea of holding different types of -- a number of Democrats have put forward different plans to address the war in Iraq, from phased redeployment to partitioning the region. Democrats at least are pledged to hold hearings to begin to develop an exit strategy.
Let's not forget what Senator Warner told us, and he pointed out -- and it was absolutely on target -- because there wasn't the due diligence done by Congress, we've walked into this terrible quagmire in Iraq. The Democratic leadership of the Congress owes the people hearings.
DOBBS: I'll be honest with you. I don't know how you're going to do it.
ZIMMERMAN: We have one commander in chief. DOBBS: I'm sick of the history of this. My God, that is stipulated, demonstrated and on the record.
But we have people dying, and I see politics continued being played here, Errol.
LOUIS: Well, look, the protest that you saw in the middle of the press conference where Cindy Sheehan and other people started yelling at them, that's the hot seat that Nancy Pelosi is on and she knows that she's on it. Of the 30-odd seats by which the Democrats took the majority, at least 18 of those seats were in districts that either used to be represented by Republicans or voted for Bush in 2004 or both.
The Democrats are caught in the middle. They came in with a certain amount of rhetoric, they're going to be pushed from the left, they're going to be pushed from the right. They've got to figure out a way to make it work.
DOBBS: Well, as you know, I've had a bellyful of both Republicans and Democrats when we've got people dying, when we've got serious issues.
ROLLINS: Unfortunately, Lou, we're going to continue to have people dying and we're not going to have a new, clear strategy. The president is basically going to keep our troops there for a substantial period of time. And I think his comments last week, we now have to come up with a strategy to win. How do you define winning in a country that's in absolute, total disarray? Is winning...
DOBBS: How do you dare say we're going to come up with a strategy to win four years into a war?
ROLLINS: I'm just telling you that's what he said. Is winning destroying all the Sunnis and the Shiites who become the leaders of the country? We cannot put this thing back together again. And I think I'm...
DOBBS: Should we get out?
ROLLINS: I think I have reluctantly come to that position that we have to get out, we have to stay somewhere in the region to make sure the rest of it doesn't explode. But I think at this point in time, there's no clear-cut way we can win this battle.
ZIMMERMAN: Ed, it's a very courageous position you're taking and it's called phased redeployment and I admire so many people who've come to that conclusion including Senator Smith who reached that conclusion, Senator Hagel as well.
But the reality is this. We still in our country, a Constitution. We still have one commander in chief. Leader Harry Reid, Speaker Nancy Pelosi, they can put ideas on the table as they have but they cannot...
DOBBS: But you've just exculpated the Republican Congress you were criticizing just moments ago for their failure...
ZIMMERMAN: No, because they didn't hold the hearings.
(CROSSTALK)
DOBBS: ...on come on. Either they've got a responsibility here or they don't, whether they're Republicans or Democrats, the Constitution says they have a responsibility.
ZIMMERMAN: Absolutely. The Republicans didn't step up and hold their hearings. The Democrats are proposing alternatives. In fact, one of the great travesties in the first six years of the bush White House...
DOBBS: But I don't -- look, the travesty we're living with.
ZIMMERMAN: That's right.
DOBBS: I want to know what the future holds and what the hope is for extrication of those troops.
ZIMMERMAN: The only hope for the future is when this president realizes that we're not going to solve the crisis in Iraq with stubbornness or with troop escalation but with...
LOUIS: Realistically, there's no...
DOBBS: Well, I can see partisanship has left this discussion altogether.
ZIMMERMAN: No, we need diplomatic escalation. You're seeing Republicans joining Democrats in the Congress around increasing focus on diplomacy.
LOUIS: Robert is assuming, I think, overoptimistically that the president is going to shift dramatically over the last 24 months of his administration. It's not going to happen.
ZIMMERMAN: No, I'm saying that the Republicans and Democrats in Congress are shifting dramatically, and they're demanding an escalation of diplomacy, not an escalation of troops.
ROLLINS: I think there's going to be an escalation of troops and I think the reality is we're going to pay a heavier price. And I think what bothers me is there is no clear-cut strategy to get out of there or to win. And I think at the end of the day, we're going to create more chaos and lose more American lives.
DOBBS: Very quickly, 2008, it's upon us. Partisanship is alive and well. And within the Democratic contenders, Senator Hillary Clinton saying Barack Obama is going to diminish. Is she right?
ZIMMERMAN: Quite to the contrary. You have a very open battle for that nomination. No one -- the concept of our front-runner is obsolete and it's going to be a very fierce, competitive battle for that nomination. DOBBS: That would be a phased, strategic assertion of advantage in a political year, I believe.
Ed Rollins, Mayor Giuliani, he stepped into it, 140 pages of his presidential campaign playbook.
ROLLINS: Well, it doesn't do much for his security business, I would think, to lose your playbook. But I think -- all I can tell you, I've been around this business for 40 years. I think everything I've learned in those 40 years is not going to be very relevant in this campaign. McCain and Giuliani, obviously, have the name ID and have a lot of resources.
I'm not sure there's great enthusiasm across the country for them. They've got to go out and prove themselves. They're not going to win this by polls, and the country is still -- at least Republicans are still looking for a conservative alternative. It's not Mitt Romney at this point in time, and so I think there's a long way for this to play out.
DOBBS: Hillary Clinton, Errol, says that her chief competitors at this stage are John Edwards and Barack Obama. Do you concur?
LOUIS: That sounds about right, if you believe the polls. But what she does say, which is also indicated by the polls, is that she's stuck at 30 percent. If she can't take advantage of the fact that the Democrats haven't decided who they want for president, that's not going to necessarily help her. You can be in front at 30 percent and you can at 30 percent all the way through the primaries and you don't win that way.
DOBBS: And I'm going to give the last word to you but it's got to be yes or no. The fact is, we can leave it with this. Does this newly-elected Democratic Congress now have the substantial responsibility to influence the direction of the war in Iraq?
ZIMMERMAN: Absolutely.
DOBBS: We can leave it there. Robert Zimmerman, Errol Louis, Ed Rollins, as always, thank you gentlemen. And we'll be talking again shortly, say, Friday.
Still ahead, the results of our poll, more of your thoughts. Stay with us.
(COMMERCIAL BREAK)
DOBBS: The results of tonight's poll, overwhelming, 98 percent of you saying you don't believe our already broken Social Security system can handle paying benefits to illegal aliens who work in this country 18 months.
Time now for more of your thoughts.
Shawn in Nevada saying, "Don't you just love this, Lou? President Bush is now stating it's time Congress give the president a line-item veto."
And Ron in Virginia: "Lou, when it comes to the truth, you're our city of refuge from the ignorance. You're our cool drink of knowledge in the dry desert of stupidity and a star that leads wise men to think for themselves. Keep up the good work." And I'm going to keep that on my wall. We thank you for those nice words.
Thanks for being with us here tonight. For all of us, good night from New York. "THE SITUATION ROOM" begins now with Wolf Blitzer -- Wolf.
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