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Lou Dobbs Tonight
No U.S. Troop Cuts From Iraq?; Bush Administration Allows Mexican Trucks Access to U.S. Highways
Aired September 07, 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, the Bush administration again defying the will of the Congress and the American people. The Bush administration, in the dark of night, permitting Mexican trucks unlimited access to our highways. We will have the story.
Also, the toy industry refusing to take responsibility for dangerous imports from communist China. Toy companies demanding new safety guidelines for their products after allowing a flood of toxic imports into this country.
Federal agents break up a marriage fraud ring, selling green cards to illegal aliens. Incredibly, a federal government official responsible for enforcement of our immigration laws among those charged.
And three of the country's best political analyst and strategists will join me to discuss all of the week's top political stories.
All that, all the day's news, and much more straight ahead here tonight.
ANNOUNCER: This is LOU DOBBS TONIGHT: news, debate, and opinion for Friday, September 7.
Live from New York, Lou Dobbs.
DOBBS: Good evening, everybody.
The U.S. commander in Iraq, General David Petraeus, is expected now to recommend that the United States should not withdraw troops from Iraq before next spring. U.S. military officials said reports that General Petraeus may accept some troop cuts in Iraq early next year are -- quote -- "total nonsense."
General Petraeus will give testimony to Congress Monday. Top Senate Democrats today accused the Bush administration of trying to manipulate the general's testimony.
We begin tonight with a report by Jamie McIntyre in Washington -- Jamie.
JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Lou, here's what our sources say General Petraeus will say next week: The surge is working, but not as fast as he expected. There are some hopeful signs, but it's too soon to bring some troops home.
(BEGIN VIDEOTAPE)
MCINTYRE (voice-over): CNN has learned that when General David Petraeus meets with President Bush and reports to Congress, he will recommend maintaining the current, higher U.S. troop levels in Iraq until spring, when the surge will begin to be phased out.
And officials familiar with the thinking of the top commander strongly dispute published reports in "The New York Times" and "Washington Post" suggesting General Petraeus would be OK with pulling back or pulling out one brigade, roughly 4,000 troops, in a nod to critics in Congress.
That's nonsense, one military official told CNN, insisting Petraeus believes at this crucial time, every brigade is important. In an April interview with CNN, General Petraeus promised, as he has many times, to give the unvarnished truth about the prospects for success.
(on camera): If in September, you think this surge strategy is not working, are you going to be able to tell that to the president and presumably the Congress?
GENERAL DAVID PETRAEUS, U.S. COMMANDER IN IRAQ: Not only will I be able to. Ambassador Crocker and I will do that. We have an obligation to the young men and women who are out there giving their all to do just that.
MCINTYRE (voice-over): Some of the general's thinking is revealed in a letter he sent to all U.S. troops in Iraq on the eve of his congressional testimony. In it, he acknowledges, while the security improvements have been dramatic in some areas, such as Ramadi and Anbar Province, overall, progress has been uneven, and the Iraqis have not used the breathing space to embrace reconciliation.
He concedes: "It has not worked out as well as we had hoped. We are a long way from the goal line. It's clearly taking more time than we initially expected."
(END VIDEOTAPE)
MCINTYRE: Ultimately, it will be up to President Bush to decide if he should order a brigade home before the surge is scheduled to end. But, if he does, sources tell CNN, it will not be on the recommendation of General Petraeus -- Lou.
DOBBS: Jamie, thank you very much -- Jamie McIntyre, our Pentagon correspondent, reporting from Washington.
General Petraeus, as I said, will give his testimony to Congress Monday. But senior Democrats today accused the White House of trying to dictate what the general will say. Those Democrats also raising questions about General Petraeus' commitment to tell Congress the whole truth about this war.
Dana Bash has our report from Capitol Hill.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice-over): The Senate's number two Democrat is accusing the administration of manipulating information in its highly-anticipated Iraq report.
SEN. RICHARD DURBIN (D), ILLINOIS: By carefully manipulating the statistics, the Bush/Petraeus report will try to persuade us that violence in Iraq is decreasing and the surge is working.
BASH: Senator Dick Durbin says he's been in e-mail contact with civilian employees gathering data on Iraq progress.
DURBIN: Some of them I correspond with almost on a daily basis. And when they send a discouraging report about things that were happening in Baghdad, they were reminded by their superiors that that's unacceptable -- we need a positive report. And it would be sent back for editing and changing.
Now, that's a fact.
BASH: General David Petraeus is expected to testify next week that the troop surge has produced progress on the ground. Democrats are engaged in a coordinated effort to minimize the impact of that testimony, which could undermine their ability to convince wavering Republicans to vote for troop withdrawal.
They also point to Friday's testimony from the head of the independent Government Accountability Office. He took issue with the claim General Petraeus is expected to make that sectarian violence is down.
DAVID WALKER, COMPTROLLER GENERAL, GOVERNMENT ACCOUNTABILITY OFFICE: We could not get comfortable with the methodology that is used in determining sectarian violence vs. nonsectarian violence.
MCINTYRE: The Senate's top Democrat questioned Petraeus' credibility.
SEN. HARRY REID (D-NV), MAJORITY LEADER: He's made a number of statements over the years that have not proven to be factual. I have every belief that this good man, General Petraeus, will give us what he feels is the right thing to do in this report. It is now not his report, it's President Bush's report.
(END VIDEOTAPE)
BASH: An administration official called charges they're manipulating Iraq data absurd. A Republican leadership aide accused Democrats of trying to discredit Petraeus and noted that the general, his approval rating, Lou, is four times higher than that of congressional Democrats -- Lou.
DOBBS: Dana, the idea that General Petraeus, in Washington speak, the Senate majority leader just said that General Petraeus has lied when he said he had made statements that were not factual. Did the Senate majority leader lay out specific statements that were, as he put it, not factual?
BASH: Well, what he said is that back when General Petraeus was in charge of making sure that Iraqi troops were trained, he said that there was progress there and that at the time that's what he thought, but it turned out according to Senator Reid that the progress wasn't, in fact, the case.
That is something that he said that General Petraeus said at the time and it didn't pan out, if you will. So, that is one of the pieces of evidence, if you will, that Senator Reid gave to say that, you know, he doesn't necessarily think that things that General Petraeus turn out to be true.
DOBBS: Dana, thank you very much -- Dana Bash from Capitol Hill.
In Iraq, insurgents killed seven more of our troops, four Marines in Al Anbar Province, three soldiers north of Baghdad; 18 of our troops have been killed so far this month; 3,760 of our troops have been killed since this war began, 27,767 of our troops wounded, 12,476 of them seriously.
President Bush is expected to give a new assessment of the progress of the war in Iraq in a prime-time address to the nation next week. The White House saying officials have not yet decided a precise date and location for the speech. The president's address is likely to focus on the report on Iraq by General David Petraeus and Ambassador Ryan Crocker.
President Bush today focused on efforts to end North Korea's nuclear program during a meeting with the South Korean president in Australia. The meeting ended on a tense and contentious note, when President Bush and President Roh apparently disagreed about policy toward North Korea.
White House officials blamed their disagreement on what they called a translation error.
Suzanne Malveaux has our report from Sydney, Australia.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): It was a rare unscripted exchange. President Bush publicly challenged to explain his position on how to formally end the Korean War. It happened after private talks and pleasantries with South Korea's President, Roh Moo-hyun.
ROH MOO-HYUN, PRESIDENT OF SOUTH KOREA (through translator): I think I might be wrong -- I think I did not hear President Bush mention the -- a declaration to end the Korean War just now.
Did you say so, President Bush?
MALVEAUX: Surprised, President Bush reaffirmed U.S.-Korean policy. The U.S. will only initiate a formal declaration of peace between North and South Korea after North Korea's leader, Kim Jong Il, no longer poses a threat.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I said it's up to Kim Jong Il as to whether or not we're able to sign a peace treaty to end the Korean War. He's got to get rid of his weapons in a verifiable fashion.
MALVEAUX: But Roh, throwing his head back in laughter, was not satisfied.
ROH (through translator): I believe that they are the same thing, Mr. President. If you could be a little bit clearer in your message, I think...
BUSH: I can't make it any more clear, Mr. President. We look forward to the day when we can end the Korean War. That will end -- will happen when Kim Jong Il verifiably gets rid of his weapons programs and his weapons.
MALVEAUX: South Korea plays a vital role as a member of the six-party talks aimed at convincing North Korea to disarm. The country is also eager to reunite with its northern neighbor.
But, with more than 37,000 U.S. troops helping keep the peace along the along the North-South Korean border, the Bush administration is reluctant to make any changes while it still considers North Korea a threat.
(END VIDEOTAPE)
MALVEAUX: Now, White House officials say this exchange between President Bush and Roh, in this case, they say was lost in translation.
They say that both of these leaders agree on the expectations of North Korea. They also say there's no tension between these leaders.
And, Lou, I think what you're seeing, in part, here, as all leaders do, they play to the domestic audience. There are quite a few South Koreans who want to see a South Korean leadership take a more aggressive, assertive role with the United States. And that might have played a part in this exchange -- Lou.
DOBBS: Well, the suggestion that that would be a matter of translation problem, of course, is palpable nonsense, since both heads of state have the best translators possible available to them.
And the idea that President Roh would point his finger at President Bush and throw his head back, like a -- a high school debater, playing with theatrics, I mean, my gosh. What did the Bush White House officials traveling with the president say? I mean, that was a disgusting display, in my opinion, by a head of state, and certainly by President Roh of South Korea.
MALVEAUX: Lou, I think it was quite surprising for the president and for the administration officials who were there in the audience. There were people who were laughing a little bit nervously about this. President Bush turning to Secretary Rice a couple of times during that exchange, so, obviously, this was very unexpected.
DOBBS: Yes.
MALVEAUX: Aides immediately came out, realizing there was going to be a problem, and went forward, and said there was a loss in translation here.
But I think what you're seeing from President Roh is really kind of a display of putting President Bush on the spot, saying, I want you to say this. I want you to be very clear in making the statement, because there's a lot of work, a lot of political capital that President Roh put into reuniting with North Korea and bringing North Korea to the table.
DOBBS: Well, I think it's also important that we point out that President Roh was also on factual grounds at sea. Only the United Nations could declare a truce with the North Koreans, because the war declaration, if you will, going back to the beginning of the Korean War was, of course, passed by the United Nations.
MALVEAUX: Well, obviously, he wants to actually put pressure on President Bush to make that happen. So...
DOBBS: Yes.
MALVEAUX: ... you're right in that sense.
DOBBS: Thank you very much. And we appreciate it, Suzanne Malveaux...
MALVEAUX: Thank you.
DOBBS: ... from Sydney, Australia.
Coming up next here, the Bush administration again defying the will of the Congress and the American people on the issue of giving unfettered access to American highways to Mexican trucks. Casey Wian will have that report for us coming up -- Casey.
CASEY WIAN, CNN CORRESPONDENT: Lou, the Transportation Department waited until 9:00 last night to officially open U.S. highways to more Mexican trucks. Lawmakers say it's a decision they will not let stand -- Lou.
DOBBS: That report coming up. Thank you, Casey.
Also, a troubling new twist on a scam to permit foreigners to permanently stay in this country. We will have that special report, a fascinating study and why, at least in part, U.S. immigration laws aren't being enforced. We will be telling you about corruption in high places.
The toy industry tries to avoid taking any responsibility, of course, over the crisis in dangerous toy imports from communist China. That report, and a great deal more, coming right up.
Stay with us.
(COMMERCIAL BREAK)
DOBBS: The Department of Transportation in the dark of night last night granted Mexican trucks widespread access to American highways.
And, as Casey Wian now reports, the federal government acted in spite of concerns that the plan would create a safety hazard on this nation's highways and threaten our national security.
(BEGIN VIDEOTAPE)
WIAN (voice-over): Literally under the cover of darkness, the Transportation Department late Thursday launched its one-year pilot program that will allow hundreds of Mexican trucks unrestricted access to U.S. highways, that despite the objections of Congress, trucking unions, and border security advocates.
TODD SPENCER, OWNER-OPERATOR, INDEPENDENT DRIVERS ASSOCIATION: The arrogance and the attitude that we're witnessing right now, that's going to try to shove this program through, open up the border, regardless of the views of the American people, regardless of the views of the Congress.
WIAN: Since 1982, most Mexican trucks have been restricted to 25-mile cargo transfer zones near the border. The Bush administration says it's meeting long-overdue obligations under the North American Free Trade Agreement and points out that U.S. trucks will now have greater access to Mexico.
BRIGHAM MCCOWN, FORMER DEPARTMENT OF TRANSPORTATION OFFICIAL: For the first time ever, U.S. companies will be allowed to go south of the border. And, so, my money is on the Americans, believe it or not, because I think Americans can compete, and I think we will do very well.
WIAN: Many say the deal compromises border security, American trucking jobs and U.S. highway safety.
One congressman compares the Mexican truck program to an agreement later rescinded to sell several U.S. port operations to a company based in Dubai.
REP. STEVE KAGEN (D), WISCONSIN: America is not for sale. When President Bush arranged the Dubai Ports deal, the American people rejected it. And now the administration is attempting to do it again. Mexican trucks do not meet our U.S. standards, period.
WIAN: The final hurdle was cleared after the Transportation Department issued its response to deficiencies in the program uncovered by its inspector general. One example, concerns that regulators would not live up to their promise to inspect every Mexican truck involved in the pilot program every time it crosses the border -- that will be a tough task, considering more than 2,000 Mexican trucks cross at San Diego's Otay Mesa port of entry daily. More than 3,000 cross each day in Laredo, Texas.
And at many crossings, Customs and Border Protection says it has a shortage of manpower and can't assist with the program.
(END VIDEOTAPE)
WIAN: Inspections will be mostly be performed by personnel from the Department of Transportation and from state highway patrols. They will be responsible for separating trucks allowed full access to U.S. highways from those that must stay near the border -- Lou.
DOBBS: Casey, I find it fascinating that this administration cloaks their absurd decision here in the cloak -- and under the cloak of darkness, by the way -- in their -- living up to their obligations under the Mexican/Canadian/American NAFTA treaty.
But they are not in any way living up to their obligations to the American people to enforce border security, to enforce port security, or to stop illegal immigration. This administration, and this -- in this undertaking and its rationalization of it, I think we can fairly say, and I will say, the Department of Transportation is cowardly, and this decision is rationalized to such an extreme that it's an outright lie.
It's a lie to Congress. It's a lie to the American people.
WIAN: Lou, I...
(CROSSTALK)
DOBBS: You're waiting for the question, aren't you?
(LAUGHTER)
(CROSSTALK)
DOBBS: All I have got is a statement on that.
(LAUGHTER)
WIAN: Well, you can certainly make the case that they are being disingenuous in a lot of different ways.
For example, that former DOT official who says he is betting his money on American truckers going into Mexico and recouping the jobs that they have lost from the Mexican truckers coming into the U.S., I don't know how that is going to happen, when Mexican truck drivers make a fraction of what American truck drivers make -- Lou.
DOBBS: And that idea that that former negotiator of that deal is the person the Department of Transportation puts forward to speak for the Department of Transportation and this Bush administration apparent manifest destiny-driven toward open borders and an abject disregard of American workers, our American middle class, driver safety, I mean, it's just -- I cannot think of a more disgusting display by the Department of Transportation in some time.
And these cowards at the Department of Transportation won't speak to the issue themselves. They go to a former Bush administration official to give you comment, to give everyone else comment on this, and don't have the guts to stand up and speak as the officials of the Department of Transportation. I think it's disgusting.
WIAN: Lou, in fairness, I have to say, they did hold a conference call late last night.
(LAUGHTER)
DOBBS: About what time would you say that was?
WIAN: I'm not sure. I know it was after 9:00.
(LAUGHTER)
DOBBS: Well...
(CROSSTALK)
WIAN: Most people were watching football, I think.
DOBBS: Yes, I think so, too.
(LAUGHTER)
DOBBS: And it's very nice of them to do that.
We thank you very much, Casey Wian, reporting from Los Angeles.
WIAN: OK.
DOBBS: That brings us to the subject of our poll tonight. Are you outraged that this administration went forward with the Mexican trucking deal in the dark of night, yes or no? Notice I didn't ask if you're surprised. Cast your vote at loudobbs.com. We will have the results coming up here later in the broadcast.
Next, a massive case of green cards for sale at the federal Office of Citizenship and Immigration Services. A former CIS immigration officer and his sister pleading guilty today to a criminal scheme in which hundreds received fraudulent green cards; 28 others are also charged in the corruption scandal.
Bill Tucker is here now with the report for us -- Bill.
BILL TUCKER, CNN CORRESPONDENT: Lou, marriage fraud in the name of a green card is hardly anything new, but this one does have a very unique twist as you just alluded to.
One of the primary leaders of this marriage fraud ring worked for the government. Here's what Philip Browne, employee of the United States Citizenship and Immigration Services and his sister, Beverly Mozer-Browne, pled guilty to today, that they arranged marriages between American citizens and people seeking green cards, charging between $8,000 and $16,000, that the American citizens who agreed to enter into these sham marriages were paid for their services.
Browne and his sister provided fictitious documents for the application process. Those applications then approved without anyone having to show up for an interview, because -- well, that's right -- Philip Browne was the one who processed the applications.
The scheme collected them $1 million during the four-and-a-half years that it lasted, from April of 2001 through November of 2005. They did not act alone. As you mentioned, Lou, 28 other defendants named in the 13-count indictment -- 26 pled guilty, never went to trial. One did go to trial, was found guilty by the jury.
And, Lou, the other, well, she hasn't gone to trial, because she's now on the lam.
DOBBS: Unbelievable.
This is -- you know, the old Immigration and Naturalization Service was regarded as one of the most corrupt, if not the most corrupt, federal agencies in the entire federal government. But this continues to go on and on. And to the credit of the government, they are investigating and trying to seek this out.
But this is part of now what seems to be -- I mean, the culture that's been created, in which we don't permit the Border Patrol to do its job, this administration does not, in which the Customs and Immigration Services are simply overwhelmed with the sheer numbers and their inability to process them, Immigration and Customs Enforcement, basically 3,000 agents in the field, trying to bring to justice 500,000 criminal illegal aliens, it is -- this is disgusting.
And this administration, I think, it is despicable what they have done in the name of free markets, open borders, globalization, and amnesty, comprehensive immigration reform. This is disgusting, what is happening to this country. And this is, to me, symbolic of it.
TUCKER: You're absolutely right, in that this doesn't stand alone. This is part and parcel of the whole fabric that you just laid out. So, it shouldn't be surprising, but it should be upsetting to people.
DOBBS: And the morale of those agents in each of those agencies I mentioned, no one could blame them for being literally depressed at what they're being subjected to and what they are being asked to accomplish with so little support and absolutely no direction from this administration, and an all-but-absent oversight from the U.S. Congress.
Bill Tucker, thank you. That's a deeply troubling story, and we will continue to follow it. Thank you very much, Bill Tucker.
Time now for some of your thoughts.
Jerry in Texas said: "Just when you thought the president could not make a worse mess of things, he takes stupid to a new high, or low. Mexican trucks roaming free in this country? I bet the drug dealers are dancing in the streets in Mexico."
No bet.
And Robert in Washington: "Mexican trucks hit the U.S. roads. The Congress STRIVE Act selling out American workers. Ramos and Compean sit in prison. Looks like our leaders are working for the other side."
You couldn't be more right.
And Connie in Florida: "While the Mexican trucks are wearing out our roads and using other facilities, who is paying the cost? Surely not the Mexican business. Could it be the American taxpayers, as usual?"
It certainly could.
We will have more of your thoughts coming up here in just a moment.
Up next, the rhetoric on the war on terror heating up on the presidential campaign trail. We will have the report.
American toy manufacturers continue to put dangerous toys in our children's hands -- make that -- we said manufacturers, didn't we? Oh, no. They are toy brands. They don't actually make anything. They don't really create any value. They leave it to the people who like to add value and lead to the toys. We will have a special report on a broken system failing to protect American consumers and our children.
Stay with us. We're coming right back.
(COMMERCIAL BREAK)
DOBBS: The CEO of the world's largest toy company, or brand, if you prefer, Mattel, will testify before the U.S. Senate next week.
He will be facing some tough questions about why his branding company imported millions of unsafe toys from communist China.
And as Kitty Pilgrim now reports, it seems the best solution toy companies and brands can come up with to ask the federal government for new safety guidelines.
(BEGIN VIDEO TAPE)
KITTY PILGRIM, CNN CORRESPONDENT (voice-over): In the United States, lead paint in toys was banned as hazardous for children back in the 1960s and U.S.-made toys were safe. But now, with U.S. companies outsourcing the manufacturing of toys to China, the influx of toxic toys means the United States is importing a Third World problem. LORI WALLACH, PUBLIC CITIZEN: I suspect that with the offshoring of so much production, not just of toys, but other products, that we've been having serious safety problems for a long time. But because there's been recent incidents, testing is increased so we're finding more and more of it. I think it's probably been there for a while.
PILGRIM: Nobody knows how many Chinese made toys are toxic or how long American children have been exposed to the lead in those toys. Exposure to the metal can cause learning and behavioral problems, seizures, even death.
The case of a 4-year-old Minnesota child Jarnell Brown was highlighted in Congress this week.
SEN. BYRON DORGAN (D), NORTH DAKOTA: Jarnell is dead because he was visiting a friend's house and he swallowed a small, heart-shaped token that came on a bracelet, that came with a pair of Reebok tennis shoes. And it turns out that little charm, that little jewelry charm contained 99 percent lead.
PILGRIM: Despite that example, the United States still doesn't have agreements with Chinese manufacturers on acceptable level of lead in children's jewelry. The Chinese position is the that lead is harmless unless it is easily ingested by being on the surface of the products.
But it was on the surface paint of toys imported by Mattel this year. It appears Chinese manufacturers thought they could get away with bending the rules.
Mattel has been in denial about the extent of the problem. But it's issued three recalls this summer alone and has pushed an aggressive P.R. campaign of concern for U.S. children. The company has been fined twice by the Consumer Products Safety Commission for not reporting problems with imported toys in a timely fashion. (END VIDEO TAPE)
PILGRIM: Now, the Mattel CEO, Bob Eckert, is scheduled to testify on Capitol Hill next week to discuss safety enforcement. Well, that's a little late after a million toys had to be pulled this week. The Toy Industry Association is calling for new guidelines on toys. But if the past is any guide, it seems the guidelines will be ignored by China -- Lou.
DOBBS: Well, you know, it's time a few people just say it straight -- Mattel exercised absolutely no oversight over the manufacture of those toys in China. Mattel is not a toy manufacturer, it's a toy brand. It's a little like the political parties -- the Democrats and the Republicans. They're just branding organizations. They're just marketing organizations. There's nothing to them.
And the idea that they would talk about they need more guidelines -- we've got guidelines. We've got federal laws. And these -- these CEOs of these toy companies and distributors, who are taking no responsibility for the safety of those products, is one issue. The other issue is -- and Laura Wallach, the Public Citizen -- Public Citizen doing a terrific job in focusing on this issue, trying to protect the American public and the American consumer. The idea that this federal government is taking no responsibility -- you notice we don't hear a lot from the free market, free trade crowd, the people who think that if everything is Mr. Market it will be fine.
You know, the idiotic libertarians are slinking around in the dark here. This is a job for our government. Get used to it. There is a role for it and it is to protect the American people.
PILGRIM: Certainly to institute new federal standards is not the panacea, because...
DOBBS: We've got them.
PILGRIM: ...to enforce those...
DOBBS: Absolutely.
PILGRIM: ...is more important.
DOBBS: What you're seeing is a company that is absolutely dedicated to profit, taking no responsibility for manufacturing and has no ability to manufacture. And another just extraordinary, in many cases, tragic, incidents of just absurd trade policies, absurd business practices and a government that is in the hands of their corporate masters, right along with both political parties, in my judgment.
Kitty, thank you very much.
Kitty Pilgrim.
We'll continue to follow this story, of course, closely. Democratic and Republican presidential candidates talking tough on the issue of terrorism. Will that tough talk helped the candidates' campaigns?
Will it triangulate?
We'll find out.
Also, the newest Republican presidential candidate. One former Senator, Fred Thompson, hits the campaign trail. We'll tell you how Thompson does without a script.
And the market tumbles on new concerns about the housing crisis, rising crude oil crisis and a credit crisis. Three top political analysts and strategists join us to discuss the political impact on some disturbing economic trends, and more.
Stay with us.
We're coming right back.
(COMMERCIAL BREAK)
DOBBS: The Catholic Diocese of San Diego will pay almost $200 million to settle 144 claims of sexual abuse. The San Diego settlement is the second largest payment by a diocese. The largest payout, of course, that of the Los Angeles diocese.
San Diego, the largest of the five dioceses around the country, however, to file for bankruptcy. The Catholic Church has paid out now more than $2 billion in sexual abuse settlements since 1950.
Despite the magnitude of the sex abuse scandal, few of the archbishops and bishops in charge of these dioceses have ever been held accountable in court.
A disgraced Democratic fundraiser and former fugitive is now in FBI custody. Norman Hsu arrested last night at a hospital in Grand Junction, Colorado, where he was on the run after not turning over his passport and appearing in a bail reduction hearing before a California judge the previous day. Hsu posted bail last week when he turned himself in. He had spent 15 years on the lam from a theft conviction. Hsu's legal troubles have prompted a number of Democratic lawmakers, including Senator Hillary Clinton and Governor Ed Rendell of Pennsylvania to return or give to charity the contributions they received from him.
Senator Clinton today repeated her call for a withdrawal of American troops from Iraq. Speaking in New Jersey, the senator said that President Bush squandered the support the United States received after September 11th. Senator Clinton said if she's elected president, she would send prominent Americans to foreign capitals with the message, "The era of cowboy diplomacy is over."
The newest candidate for the Republican presidential nomination today explained his support for the war in Iraq during a campaign appearance in Iowa. Fred Thompson says progress has been made since the president sent in an additional 30,000 combat troops. But Thompson warned, as well, about America's military capability, saying the Marines and Army are stretched too thin after their lengthy tours of duty in Iraq and Afghanistan.
The former senator and former Hollywood actor campaigning on his second day as an officially declared candidate.
Rudy Giuliani, the presidential candidate most associated with the response to the September 11th attacks, continues to criticize Democrats on their positions on the war on terror.
But as Bill Schneider now reports, the Democratic candidates are fighting back.
(BEGIN VIDEOTAPE)
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST (voice over): Republicans are sending a clear signal. They want the 2008 election to be about the war on terror, just like the 2004 election. RUDY GIULIANI (R) PRESIDENTIAL CANDIDATE: Being on offense against terrorism, unlike the Democrats, who are on defense against terrorism.
SCHNEIDER: Rudy Giuliani is the Republicans' national frontrunner and he claims fighting terrorism as his issue.
GIULIANI: In this era of the terrorist war on us, I think we should call it the terrorist war on us or, if we want, the Islamic terrorist war on us.
SCHNEIDER: But this Democratic candidate, the same one who once called the global war on terror a bumper sticker slogan, sounded anything but defensive.
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: The results are in on George Bush's so-called global war on terror. And it's not just a failure, it is a double-edged failure.
SCHNEIDER: John Edwards proposed an aggressive new policy against terrorism.
EDWARDS: Instead of cold war institutions designed to win traditional wars and protect traditional borders, we need new institutions designed to share intelligence, cooperate across borders and take out small, hostile groups.
SCHNEIDER: Organized around a new alliance.
EDWARDS: A new multilateral organization called the Counterterrorism and Intelligence Treaty Organization.
SCHNEIDER: Republicans are certain to argue they have made the country safer.
GIULIANI: All you have to do is pick up this morning's newspapers and you can see that that same movement and same group of people that killed so many people on September 11th were attempting to do the same thing in Germany and the German police stopped them.
SCHNEIDER: That shows multilateralism works, Edwards argued, even though it is usually derided by the Bush administration.
But is the country safer?
SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: I believe we are safer than we were. We are not yet safe enough.
SCHNEIDER: Edwards' answer?
EDWARDS: Some running for the Democratic nomination have even argued that the Bush/Cheney approach has made us safer. It has not.
(END VIDEOTAPE)
SCHNEIDER: Edwards' message is if the Republicans want to re-run the 2004 campaign, bring them on -- Lou.
DOBBS: How did that campaign work out?
SCHNEIDER: It didn't work out well for the Democrats and that's why they're determined not to let it happen again.
DOBBS: So why in the world are they talking about bringing it on?
This looks like pretty thin gruel to me, Bill Schneider.
Isn't there something stronger in here that these candidates should be putting forward if they're going to be taken seriously and take preeminence in national security and vigor in the fight against radical Islamist terror?
SCHNEIDER: Well, he's arguing SCHNEIDER: Well, he's arguing that the key to fighting radical Islamic terror is intelligence. And that has to be done in coordination with other countries.
Now, the administration will say look, we foiled -- we helped foil the plot in Germany, the plot against JFK Airport and other places. They can rank -- they can list a number of cases where attacks have been foiled by intelligence.
DOBBS: One thing...
SCHNEIDER: But the argument is that this can only be through coordinating intelligence activity.
DOBBS: I like it when the words get better -- coordinated, comprehensive, all of this nonsense.
The one thing -- I think you hit on it -- the issue is intelligence. And it's still a manifest lack of intelligence in our nation's capital.
Thank you very much.
SCHNEIDER: Sure.
Bill Schneider, we appreciate it.
Next, three of the best political analysts and strategists will join me to talk about the top political stories and more.
Stay with us.
We're coming right back.
(COMMERCIAL BREAK)
DOBBS: Stocks dropped on Wall Street after a worse than expected employment report. The Dow dropping 250 points. Crude oil prices rising sharply, up to almost $77 a barrel.
Former Federal Reserve Chairman Alan Greenspan waxing nostalgic, saying the turmoil in our markets today reminds him of the financial crises of 1998 and 1987, including the stock market crash.
Joining me now, three of the best political analysts in the country -- Republican strategist, former White House political director Ed Rollins; Michael Goodwin, Pulitzer Prize winning columnist, "New York Daily News"; Democratic strategist and National Committeeman Robert Zimmerman. Also a supporter, we should point out, of Senator Hillary Clinton's campaign, although we have been managing on occasion to get him to differ with the senator on a couple of points.
ED ROLLINS, REPUBLICAN STRATEGIST: Rare occasions.
ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: That's my intention, yes.
DOBBS: How badly did we need Fed Chairman Greenspan to come out and say that this was reminiscent, to him, of financial crises going back to the 19th century, but specifically '98 and the stock market crash of '97?
ROLLINS: We didn't need it. Certainly, Alan has to remember, every time he used to speak, he would send flutters through the marketplace. This is not a time to have someone out there pontificating who's not in the role of chairman. And I think, to a certain extent, it didn't do anybody any good.
DOBBS: And the candidates are watching what's happening and hardly mentioning it.
I think, in fairness, we have to say Senator Clinton did urge action on the home mortgages.
What do you see happening here?
MICHAEL GOODWIN, "NEW YORK DAILY NEWS": Well, I think, first of all, that there's increased talk of recession, which seems ever more likely to a lot of economists and people in the market, which is just terrible for the country. I mean to be in a recession during a war is kind of the worst of all possible worlds. So I think we're really headed for a troubled time.
And I'm not sure how we can stop it at this point. I mean the housing situation, which is leading us down, is clearly affecting...
DOBBS: We aren't going to stop it with an administration committed to more Mr. Market, free trade nonsense. I mean it's frightening to see, is it not, Robert Zimmerman, a lack of, if you will, Illumanatis (ph)...
ZIMMERMAN: Yes.
DOBBS: ...certainly not intelligentsia, in this administration, including Henry Paulson, who thinks everything is just boffo with China?
ZIMMERMAN: Well, that's -- that's the first problem we have is that the administration has failed to come to grips with this issue. But now it's also important for the Democratic leadership in Congress to start -- to start showing initiative.
DOBBS: Oh, man, you just scared me.
(LAUGHTER)
DOBBS: You know, there's an old saying. You know, it's one thing to be stupid, it's and another to be stupid and aggressive.
(LAUGHTER)
DOBBS: I mean do you want Harry Reid charging ahead here?
UNIDENTIFIED MALE: Chasing (INAUDIBLE).
ZIMMERMAN: I want to see more initiatives to rebuild our manufacturing base. I want to see more initiatives to hold...
DOBBS: Hey, me, too.
ZIMMERMAN: I want to see more initiatives to hold China accountable.
DOBBS: I'm just nervous about the leadership thing. I can think of a lot of senators and Congressmen I'd like to see (INAUDIBLE)...
ZIMMERMAN: It's what we have and...
ROLLINS: It used to be great -- it used to be great before air- conditioning when they went home in July and didn't come back until January. And I think at this point in time, we might be better served if they would take another longer break here as opposed to...
DOBBS: Well, I mean I have a...
(CROSSTALK)
DOBBS: I have -- I can imagine, as you said, the Democratic leadership -- I see Harry Reid and George Bush arm in arm sort of skipping along the Rose Garden path there on their way to a bipartisan solution to economic challenges.
That makes one shudder, does it not?
GOODWIN: Well, look -- and I think that the problems are so complicated and they really require great sacrifice. I mean, for example, the entitlement program, all the spending, the budget deficit -- each of these things figures into it in some way. And neither party has shown the nerve and the guts to stand up to this -- this deluge of red ink.
ZIMMERMAN: But let's remember, the Democratic leadership, to their credit, has stood up to the Bush tax cuts. They've been joined by many Republicans, as well as being unfair and inequitable to the middle class. Today, the House and the Senate and passed the largest college aid program since the G.I. Bill of Rights.
DOBBS: Right.
ZIMMERMAN: So you're seeing some important steps to move forward. And, in fact, President Bush announced today he was going to sign the Democratic program. So maybe there is some potential for some positive bipartisanship, although I'm skeptical myself.
ROLLINS: Every time this president signs something that the Democrats passed that relates to education, it usually screws up education and makes me very nervous.
ZIMMERMAN: Well, based upon history, you're right.
ROLLINS: And my great concern is that, at this point, in time, I'm not sure we need another -- when more kids are trying to get into college than ever before, that we need another program that's making it -- another big federal program that will grow massively.
DOBBS: And, at the same time, if we're going to spend money, let's get some middle class kids in to school who desperately need it. But at the same time, we're coming off a cut by the Bush administration and the previous Congress in the Pell grants, some $15 billion rolled back. A lot of work to be done.
But let's go to the other issue.
And let's start with the Department of Transportation and this administration in a -- under the cloak of darkness approving the go- ahead to give Mexican trucks unfettered access on our nation's highways.
Is it time to recall, impeach, do something to get this administration to wake up to the people it does ostensibly serve?
ROLLINS: Well, you can say in a cloak of darkness. You've given them plenty of warning not to do this a lot of other people were very concerned. I think they were frightened, basically, to move it forward in a public...
DOBBS: In the light of day?
ROLLINS: ...in the light of day. And I think, to a certain extent, that the first big rig that crashes somewhere down in Texas or Arizona or somewhere because it has improper safety issues...
DOBBS: Why...
ROLLINS: ...will basically start...
DOBBS: Why should we have to wait for that?
ROLLINS: ...start Americans...
ROLLINS: It will happen. You won't have to wait very long.
DOBBS: It should -- well, I mean are we going to just tolerate this -- this bunch of ignoramuses that makes up the Bush administration?
It is...
GOODWIN: Well, I think it...
DOBBS: It's too late to impeach this president. It doesn't make any sense to recall him. But, my God, every step this administration takes in nearly every department -- I mean, I'm telling you, January 2009 can't get here too soon, almost irrespective of who wins.
(LAUGHTER)
ZIMMERMAN: I wouldn't go that far.
(LAUGHTER)
DOBBS: Well, you would. You have -- you have, as the saying goes, you have a horse in this race.
ZIMMERMAN: I've got a commitment in this race.
ROLLINS: Yeah.
ZIMMERMAN: But the bigger issue is this. You know, as much as we may be frustrated by the role of Congress, the only way to stop this administration from an incredible lack of interest in the borders -- not even a lack of concern, a lack of interest in border and port security is bipartisan -- bipartisan...
(CROSSTALK)
DOBBS: Well, this Senate Democratic leadership, this House Democratic leadership, the Democratic Party is pushing this nonsensical comprehensive immigration reform that would leave borders wide open, leave illegal immigration unchecked. They're as big a bunch of jerks...
UNIDENTIFIED MALE: See what you started?
DOBBS: ...as anybody in the administration.
ZIMMERMAN: Let's remember, though, in terms of letting the Mexican -- the trucks from Mexico move unrestricted through the U.S., you're seeing Republicans and Democrats work together to stand up to this administration.
DOBBS: Well...
ZIMMERMAN: And you've seen, by the way, a Congress vote.
DOBBS: Well, let's see -- let's see what they do, because all I've heard from them is blather and nonsense. ZIMMERMAN: Well, one thing they're concerned...
(CROSSTALK)
DOBBS: Let's see if they've got the guts to get something done.
ZIMMERMAN: I have not heard one presidential candidate speak out, with the exception of Duncan Hunter. And I don't consider him exactly someone I'd quote as a role model (ph). But I've not seen a presidential candidate speak out.
DOBBS: Well, why not?
ZIMMERMAN: Because he's been irresponsible on virtually every major program that's come before in this debate.
DOBBS: Ooh.
ZIMMERMAN: But on this issue, he's taken the Bush administration to task...
DOBBS: Well, I guess we know how you feel about Duncan Hunter.
ROLLINS: As the (INAUDIBLE)...
DOBBS: We'll be back and talk more about Hillary Clinton in just a moment.
(LAUGHTER)
DOBBS: But first, coming up at the top of the hour, "THE SITUATION ROOM" WITH WOLF BLITZER" -- Wolf.
WOLF BLITZER, HOST, "THE SITUATION ROOM": Thanks very much, Lou.
It's the first videotape of Osama bin Laden to be released in three years. We're going to talk about it with Michael Scheuer, the former head of the CIA unit hunting the al Qaeda leader. Bin Laden mentions Scheuer's book in his videotape. Scheuer says bin Laden is threatening an attack right now.
Also, four months after her disappearance, there's a horrible new twist in the case of that missing girl, Madeleine McCann. Her mother falls under a cloud of suspicion.
All that, Lou, and a lot more, coming up right here in "THE SITUATION ROOM".
DOBBS: Thank you, Wolf.
We'll be waiting for that.
And we're going to go to commercial break here real quick.
We'll be back with our panel.
We're going to find out what the prospects are for Fred Thompson and Norman Hsu. He has returned to the coop, as it were.
We'll be right back.
(COMMERCIAL BREAK.
DOBBS: Well, Norman Hsu, a fugitive from justice for some 15 years, is back in custody tonight. He gave a little money to your favorite candidate and sprinkled it around the Democratic Party with some vitality.
Your thoughts?
ZIMMERMAN: He gave to it a lot of Democratic candidates, for that matter. He gave it to a lot of universities and foundations.
DOBBS: That's what I said.
ZIMMERMAN: Norman -- look, every campaign, tragically, has a Norman Hsu story where you've got a donor who engages in...
DOBBS: Duncan Hunter doesn't.
ZIMMERMAN: He doesn't have any donors. That's part of the problem.
(LAUGHTER)
ZIMMERMAN: But, no the point is...
DOBBS: Why are you so -- of all the people to pick on you...
ZIMMERMAN: But the bigger issue than Duncan Hunter is the fact that if you truly want to change the system -- and that's what this represents...
DOBBS: Oh, my...
(CROSSTALK)
DOBBS: Don't give me that...
(CROSSTALK)
ZIMMERMAN: Absolutely.
DOBBS: Come on, I've heard that nonsense.
ZIMMERMAN: No. We have to go to public financing.
DOBBS: You know...
(CROSSTALK)
DOBBS: ...John McCain and Russ Feingold, we've watched that...
(CROSSTALK) DOBBS: The American people aren't buying this stuff.
ZIMMERMAN: I would...
DOBBS: Come on.
ZIMMERMAN: I would warn the middle class when you raise the issue...
(CROSSTALK)
DOBBS: You're doggone right I did, and that's why I want public financing for campaigns.
ZIMMERMAN: That's what I'm talking about...
(CROSSTALK)
ROLLINS: Here's one of the major fundraisers for the Democratic Party...
ZIMMERMAN: Proud of it.
ROLLINS: ...who was listed as a co-chairman, along with Mr. Hsu, on Mrs. Clinton's big event here in New York and basically you're talking about public financing now?
DOBBS: Right.
ROLLINS: I mean (INAUDIBLE)...
ZIMMERMAN: Absolutely I am, Ed, because until we have it in place, Democrats are not going to unilaterally...
(CROSSTALK)
DOBBS:
Are you kidding?
It makes his job easier.
(LAUGHTER)
ZIMMERMAN: The Democrats will not unilaterally...
(CROSSTALK) DOBBS: Let me turn...
(CROSSTALK)
DOBBS: Let me turn now to Fred Thompson. Not in the debate. His campaign -- he's on "The Today Show". Not "The Today Show," "The Tonight Show".
ZIMMERMAN: "The Tonight Show." DOBBS: And he's running ads leading into the debate.
Is this working for him?
ROLLINS: Well, you know, he's now -- he's now come back to earth. I mean he's -- he obviously got a quick start here. But the reality is now he has to stand there with Giuliani and McCain and Romney and he has to debate. He has to go out and present something. He has to go raise money. He has to put a staff together.
And we're going to find out in about 45 days whether he's a serious candidate or not. I think the potential is there, but he hasn't proven to me that he's yet a serious candidate.
GOODWIN: Yes, it's very odd because it look -- it looks as though he wanted to delay the actual entry into the race as long as possible. And presumably he thought he was doing better on the outside than he will on the inside. So I think we're going to find out pretty quickly what he has.
But can I go back to Mr. Hsu for a moment?
DOBBS: Please.
UNIDENTIFIED MALE: I would like you to.
GOODWIN: Because I think the issue here is not that the poor candidates just had to take dirty money because there isn't public financing. I think they'll take anybody's money any time without doing any serious vetting. And now they got caught at it. And I think we're going to find a lot of Mr. Hsu's money comes from some very mysterious people...
ZIMMERMAN: You know, I understand...
GOODWIN: ...and I think the campaigns ought to be vetting them better, not waiting for to get caught.
(CROSSTALK)
DOBBS: Hey, look, corporate America -- the big money is going to dominate the electoral process and the legislative process in this country until we go to public financing of campaigns and take them out.
(CROSSTALK)
ZIMMERMAN: And that was my...
GOODWIN: But this was not corporate American money. No, but this is something else.
(CROSSTALK)
DOBBS: ...understand that.
(CROSSTALK)
DOBBS: But it is everywhere else.
(CROSSTALK)
ROLLINS: And let's be realistic about this. There was an...
DOBBS: Let's be real quick about it.
ROLLINS: OK.
DOBBS: If we're going to be realistic.
ZIMMERMAN: (INAUDIBLE) the campaign, of course...
DOBBS: You've got 10 seconds.
ZIMMERMAN: ...Ed may never have heard of any campaign in the Republican Party. There's not a campaign that doesn't have problems with donors, despite the best efforts of campaigns. Until you move to public financing, you're not going to be able to correct that...
DOBBS: Isn't that what I just said?
(CROSSTALK)
ZIMMERMAN: ...and corporate money is going to be bigger this year than ever before.
ROLLINS: The last presidential campaign I ran, we took public money and we basically...
DOBBS: We're out.
ROLLINS: ...49 states...
DOBBS: We've got to go.
Guys...
(LAUGHTER)
DOBBS: And, by the way the 2008 elections cost just under $2 billion, all told.
Still ahead, the results of our poll.
We'll be right back.
(COMMERCIAL BREAK)
DOBBS: Results of our poll -- 99 percent of you are outraged the Bush administration went forward with the Mexican trucking deal in the dark of night.
We thank you for being with us. "THE SITUATION ROOM" begins now with Wolf Blitzer.
We're out of time -- Wolf.
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