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Lou Dobbs Tonight

New World Order; Geithner Grilled; State of Emergency

Aired March 03, 2009 - 19:00   ET

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

LOU DOBBS, HOST: Wolf, thank you.

Tonight President Obama and British Prime Minister Gordon Brown say globalization is not the problem, it's the solution to our economic crisis, the president dismissing all of the stock market turmoil. President Obama says it's like a tracking poll in politics. We'll have that story.

And tonight Treasury Secretary Geithner trying to avoid talking about the hidden taxes in the Obama administration's budget, we'll be telling you all about those taxes.

And tonight a collision between science and ethics that could transform mankind, it may soon be possible for parents to determine the physical and mental qualities of their children. We'll have that special report, all of that, all the day's news and much more straight ahead here tonight.

ANNOUNCER: This is LOU DOBBS TONIGHT: news, debate, and opinion for Tuesday, March 3rd. Live from New York, Lou Dobbs.

DOBBS: Good evening, everybody. President Obama and British Prime Minister Gordon today calling for a new world order to tackle our global economic crisis. President Obama said globalization can be an enormous force for good. Prime Minister Brown again pushing for what he calls a global new deal paid for by the United States, of course.

Meanwhile, two of the president's top economic officials today intensified the administration's rhetoric of fear, trying to sell the president's tax, borrow and spend plans, Treasury Secretary Geithner warning of an even longer and deeper recession without what he called aggressive action. And Budget Director Peter Orszag saying budget deficits could amount to $2 trillion more if Congress doesn't pass the president's budget. Ed Henry reports now from the White House on the summit meeting between President Obama and Prime Minister Brown.

(BEGIN VIDEOTAPE)

ED HENRY, CNN WHITE HOUSE CORRESPONDENT (voice-over): A meeting of the U.S. president and British prime minister used to mean talk of war and peace. But it's all about the global economic meltdown now.

BARACK OBAMA (D-IL), PRESIDENT OF THE UNITED STATES: My main message to the American people is to just recognize that we dug a very deep hole for ourselves. There were a lot of bad decisions that were made. We're cleaning up that mess. It's going to be sort of full of fits and starts in terms of getting the mess cleaned up. But it's going to get cleaned up.

HENRY: Prime Minister Gordon Brown is wounded at home and wanted a full fledged news conference to stand beside a popular new leader. Instead, Brown got a more low-key meeting in the Oval Office. And yet unlike Tony Blair, he didn't seem to mind being considered the American president's poodle.

GORDON BROWN, BRITISH PRIME MINISTER: And I think the history groups will record that what he has done in his first, what, nearly 50 days of office has been momentous in setting the means by which we can see the economic recovery happening.

HENRY: Brown desperately needs President Obama to help Great Britain deal with the financial crisis.

BROWN: As far as the common interests that we're pursuing, look, there is the possibility in the next few months of a global new deal that will involve all the countries of the world in sorting out and cleaning up the banking system.

HENRY: The president pointedly did not make any promises about a global new deal, focusing instead on trying to reassure Americans about 12-year lows on Wall Street.

OBAMA: What I'm looking at is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing. And, you know, the stock market is sort of like a tracking poll in politics. It bobs up and down day to day, and if you spend all your time worrying about that, then you're probably going to get the long-term strategy wrong.

(END VIDEOTAPE)

HENRY: Now, even as the president insisted he's not following the markets on a day-to-day basis, he did say that prices are so low right now on Wall Street, that it might be a good idea for Americans to go out and buy stocks if they're in it for the long term. White House spokesman Robert Gibbs was quick to stress the president was not issuing any kind of official buy signal. Perhaps, though, he's trying to put a little confidence in those sagging markets. Lou?

DOBBS: I'm not sure what you would call that, with the president of the United States, who is pretty much demonstrating he doesn't know much about economics, suggesting people go out and buy stocks. The last person who does know something about stocks, to make such a suggestion, was Warren Buffett in October, and since then the Dow Jones industrials have lost more than 2,000 points. Surely the president will refrain from doing that sort of thing again, one hopes.

But I don't quite understand the president's comment about a tracking poll, a political tracking poll when talking about the markets. Housing values have just collapsed in this country. The credit markets are absolutely resistant to flowing and to opening up. It is not simply a tracking poll called the stock market that we're looking at here, is it? HENRY: Lou, there's no doubt that there are many different barometers, and many of them, if not all of them, are pretty bad right now. The president himself has said that many times. He's hoping that he can convince the American people that if he puts his policies in place, it's going to start turning around. Exhibit "A" would be the stimulus bill, the $787 billion.

He went to the Transportation Department today to tout the fact that the first shovel is essentially going into the ground in Maryland near D.C. here today to start work on a road project. But obviously the proof will be in the pudding. We still have to see whether or not all that money that's being spent is going to turn it around.

And there's been heavy criticism in the last couple of days of this president, mostly by Republicans, but by some conservative Democrats as well raising concerns, as you mentioned on the Hill today, with some of those Obama officials about the budget, about the fact that there are some taxes being raised and there is some spending going up as well...

DOBBS: Some taxes? Some taxes, did you say some taxes?

HENRY: I did say some taxes...

DOBBS: I mean my god, that budget is filled with new higher taxes. It is off-putting the degree to which Peter Orszag, the president's budget director, is saying that the world will collapse if that isn't immediately passed. The rhetoric of fear has apparently seized this administration, its imagination, as well as its public statements to the point that only a rushed, unthinking approach is acceptable. I mean this is ridiculous.

HENRY: They would insist that it is only a few taxes. For example, capital gains tax rates going up from 15 percent to 20 percent. As you know, they're going to let the Bush tax cuts, at least or proposing...

DOBBS: Yeah...

HENRY: ... to let the Bush tax cuts expire...

DOBBS: But it's the same thing again, Ed...

HENRY: ... 2010.

DOBBS: But I mean if I may. This is the same nonsense we've seen with administration after administration, only this one dealing with a real economic crisis. Making these absurd projections on economic growth in the midst of what this president is saying is, you know, approaching a catastrophe economically. It makes no sense at all what we witnessed today, at least to my view. Thanks very much, Ed Henry, at the White House.

HENRY: You're welcome.

DOBBS: Well President Obama today insisted he's not offering Russia a deal that would slow American plans to build missile defenses in Eastern Europe in return for Russian help in dealing with Iran. This after a published report said President Obama sent a secret letter to the Russian president offering Moscow a deal if Russia stops Iran from developing nuclear weapons.

Administration officials say there is no direct link between U.S. policy on missile defense and Russian policy on Iran. And meanwhile, President Medvedev saying there will be no haggling, so another problem, if you will.

The U.S. Navy tonight is investigating a startling security breech about a helicopter in the president's fleet, what is being called a malicious source in Iran gained apparent online access to blueprints of one of the president's helicopters. The Iranian hacker obtained that information from a defense contractor in Bethesda, Maryland.

Officials are not releasing the contractor's name. The Pentagon said the information is unclassified. And is not about a helicopter the president is currently using, whatever that means.

And Treasury Secretary Geithner today went to Capitol Hill for a grilling on the president's plans to expand the role of government. Geithner again using the rhetoric of fear to convince skeptical lawmakers that the president's plans will work, must work, or else. Geithner also strongly defended proposals for new higher taxes -- Louise Schiavone reports.

(BEGIN VIDEOTAPE)

LOUISE SCHIAVONE, CNN CORRESPONDENT (voice-over): He lamented the sorry state of the economy.

TIMOTHY GEITHNER, TREASURY SECRETARY: This crisis took a long time to build up. It's going to take some time to fix.

SCHIAVONE: But Treasury Secretary Geithner offered lawmakers no apologies for an Obama administration plan to make energy more expensive to producers and consumers alike.

GEITHNER: You can't address the problems (INAUDIBLE) climate change or it depends (INAUDIBLE) without changing the incentives people face for how they use energy.

SCHIAVONE: At issue a proposal in the White House budget requiring polluters, like fuel refineries and coal fired electric plants, to buy greenhouse gas emission permits from the government. The Obama budget line forecasts earnings of a minimum of $646 billion over 10 years from the tax. Republicans vow to fight it.

REP. DAVE CAMP (R), MICHIGAN: That means higher prices for Americans for food, for gas, for electricity, and in a state like Michigan, for home heating. What Americans won't end up paying more for virtually every item they purchase because of this higher tax on energy? SCHIAVONE: Most of the fees would pay for tax credits to individuals and couples. Geithner told the House Ways and Means Committee that this is also where the budget coincides with the president's vision of a greener America, with greater reliance on clean fuels, like solar and wind. As for its costs to businesses and consumers, Mr. Obama himself acknowledged the expense almost a year before his election in an interview with the "San Francisco Chronicle."

OBAMA: The electricity rates would necessarily skyrocket. Whatever the industry was, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers.

SCHIAVONE: The administration now argues that energy usage will only change under the raw pressure of expense.

(END VIDEOTAPE)

SCHIAVONE: And Lou, the Treasury secretary assured Congress that no new taxes would take effect until 2011. And at that time increases would fall principally upon the very rich. Critics are skeptical. They're already concerned about the impact of Obama tax policy on businesses, including $210 billion worth of higher taxes over 10 years on companies doing business overseas, $61 billion in taxes on companies with large inventories through a change in liability allowances, potential aviation user fees of up to $77 billion, increasing top income tax rates from 35 percent to 39.6 percent for families with incomes over $250,000.

And the top capital gains tax rate would go up from 15 to 20 percent. But Lou, the most controversial proposal is efforts to limit the mortgage interest tax deduction with a sealing of 28 percent. Lou?

DOBBS: This administration is very quickly moving in a direction that is going to become clear rather quickly, I believe, just what the limits are and how far this administration can move. The idea of putting those onerous taxes on through cap and trade on the American consumer, that won't fall on the rich.

That will fall on the consumer period. This is going to be a challenging budget proposal, even for a president whose party controls both Houses of Congress. Thank you very much. Appreciate it. Louise Schiavone.

The Senate today voted for a massive government spending bill full of earmarks and pork barrel spending. I know, you've been told that there are no earmarks. You have not been told anything honestly. Senators ignoring an effort by Senator John McCain to strip out thousands of earmarks, the spending legislation will cost taxpayers more than $400 billion.

It will pay for government spending for the remainder of the financial year, at least that's the idea, which ends on September 30th. That is an open question whether or not that is actually possible. The bill contains just about 8,000 earmarks worth about $8 billion. That's a lot of earmarks for an administration and a Congress that said there wouldn't be any more earmarks.

The White House says President Obama will sign that bill despite his opposition to earmarks. That's awfully fluid and flexible of him. Officials say it is leftover business from last year. Some of the leftover business, by the way, comes from the White House Chief of Staff Rahm Emanuel. That's leftover business that's still left over.

We'd like to know what you think about the president's economic plans and his promises. The poll question tonight is President Obama says globalization is the solution to our economic crisis. Others say it's the cause of it. Which is your opinion? Globalization is the problem? Globalization is the solution? We'd like to hear from you. Cast your vote at loudobbs.com. We'll have the results here later.

Also ahead, California is on the brink. First it ran out of money, now it's running out of water. And a criminal illegal alien has been charged in one of the country's most high-profile murders. That story is next.

(COMMERCIAL BREAK)

DOBBS: New developments tonight in the eight-year-old murder of government intern Chandra levy. A criminal illegal alien already in custody charged with her murder. The suspect is Ingmar Guandique, already serving a 10-year prison sentence in California for assaulting two women. He is charged with murdering Levy in a Washington, D.C. park back in 2001. Chandra Levy's murder gained national attention after former Congressman Gary Condit admitted to having an affair with the 24-year-old woman.

Turning now to a mystery at sea, the Coast Guard tonight says it is calling off the search for three men missing off the West Coast of Florida. NFL players Marquis Cooper, Corey Smith and former University of South Florida football player William Bleakley went missing after leaving on a fishing trip Saturday. A fourth man, 24- year-old Nick Schuyler was rescued by the Coast Guard Monday. Schuyler stayed with the boat after it overturned in a storm Saturday night.

An update now on the $50 billion Bernie Madoff scheme. Tonight Madoff says he will give up his business, but he wants to keep his $7 million Manhattan penthouse. He thinks that's only fair. Madoff agreed last night to give up all ownership rights to his business in order to pay back some of the $50 billion that he apparently cheated from his clients. But his Manhattan apartment and more than $60 million in bonds are in his wife's name. And Madoff is fighting for her, and therefore, him to be able to keep those assets.

In California tonight, a new plan to save $10 million by shifting some illegal aliens into federal hands. Deporting criminal illegal aliens who reenter California illegally will no longer be sent to state prisons. Previously California put those illegal aliens on parole when they were deported. If they were returned and were arrested they were imprisoned as parole violators. Now returning illegal immigrants who have reentered the country illegally will be handed over to federal authorities for deportation, saving California a little money.

California still reeling from that $42 billion budget deficit and they're now facing yet another crisis, a lack of infrastructure, a severe drought have left the state facing a critical water shortage. A drought it's called in some places. Casey Wian has our report.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Three, forty-eight.

CASEY WIAN, CNN CORRESPONDENT (voice-over): Measurements of the snow pack in California's Sierra Nevada Mountains improved from about 60 percent of normal to 80 percent this month thanks to several big storms in February. Even so, California remains in its third consecutive year of drought and a critical water shortage is forecast for the summer.

FRANK GEHRKE, DEPT. OF WATER RESOURCES: The message I think is too little, too late. Reservoir storage has crept up from the storms the past week, but it's still way below average.

WIAN: Sixty percent of California's water comes from snow melting into reservoirs. These reservoirs are already so low it would take several months of unusually heavy precipitation to refill them. Late last week, California Governor Arnold Schwarzenegger declared a drought emergency and urged urban residents to cut their water use by 20 percent.

WENDY MARTIN, CALIF. DROUGHT COORDINATOR: One of the things that's really important is we want all of the citizens in California to understand that even though it's raining, or has been raining, and is projected to rain, that the water supply conditions in the state are very severe.

WIAN: Some two dozen local water agencies have already imposed mandatory restrictions. State officials predict the drought will cost California nearly $3 billion and 95,000 agricultural jobs in 2009.

LESTER SNOW, DEPT. OF WATER RESOURCES: What's so severe this year is it's happening in an economic downturn, so every job is a precious job.

WIAN: For now, California is at the whim of the weather. Man- made solutions such as new or improved reservoirs and canals are on hold because of the state's budget crisis. Lawmakers are planning to ask voters to approve up to $15 billion in bonds to upgrade California's water infrastructure.

(END VIDEOTAPE)

WIAN: But that could be a tough sell. The average California family of four is already being hit with about $1,000 in new state taxes this year. Lou? DOBBS: On top of everything else, they've got new state taxes. Have they carried out the layoffs of state government employees that was being much discussed?

WIAN: Not yet. The notices have gone out that some of those state employees are in danger of being laid off. There have been some state businesses -- some State Departments that are shutting down every other Friday to save money, but no mass layoffs yet.

DOBBS: Well have they -- what about that $42 billion deficit that was so critical?

WIAN: Well, it still is critical, Lou. There's -- that -- that deficit has been solved at least temporarily through a combination of massive tax increases, big spending cuts, and future borrowing.

DOBBS: And what about the education system that's falling apart in California?

WIAN: It's not doing too well, Lou. Ranked in the bottom three or four in the country and cuts are coming. Teachers have received notices that they could be laid off. One of the proposals that people have talked about is cutting back on the school year...

(CROSSTALK)

DOBBS: So while the unemployment rate in California is skyrocketing, while a drought is forcing thousands, tens of thousands of people out of the fields, and the orchards of California the furloughs haven't started yet. There hasn't been no downsizing in a state government that has almost doubled over the course of the last decade?

WIAN: I think downsizing is going to be coming. But it just hasn't happened yet, Lou.

DOBBS: All right. Thank you very much. I think as they say, only in California. Thank you very much, Casey Wian.

Up next, the octomom reportedly investigated by Child Services before she had octuplets.

And communist China moving to profit from the global recession right here in the good old U.S. of A. That story's next.

(COMMERCIAL BREAK)

DOBBS: Well no good news on the car industry in this country. New car sales plunging to the lowest levels in more than a quarter of a century in the month of February, sales at General Motors plummeted 53 percent from last year; Ford sales down 48 percent; Ford, by the way, the only carmaker not to accept government bailout money. Chrysler sales were down 44 percent. Toyota, the world's largest carmaker now, reported a 40 percent decline in its sales.

By the way, I think it's fair to point out Ford is the only American carmaker not run by either the -- well it's the only one that's not run by either the U.S. government or foreign companies. So Ford is sort of the last car company standing, I think, by any definition. Communist China is trying to profit from the automobile industry's troubles in this country. China is in talks with Ford now trying to buy its Volvo subsidiary. Kitty Pilgrim has our report.

(BEGIN VIDEOTAPE)

KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Of the three U.S. carmakers Ford says it doesn't need a U.S. government bailout. But it may be getting some welcome cash from the Chinese. Industry rumors say Ford, which bought Volvo 10 years ago, could be selling its Volvo unit to a little-known Chinese auto company called Geely Holding Group. Chrysler has been talking about selling 300 million in assets with Chinese carmaker Beijing Automotive, a potential buyer. Robert Scott of the pro-labor think tank Economic Policy Institute says China has lots of money.

ROBERT SCOTT, ECONOMIC POLICY INSTITUTE: China made a decision last year to invest -- I believe it was $200 billion in a sovereign wealth fund. And I think it also plans to increase that to anywhere between five and $600 billion over the next few years, so that's a huge amount of money, a huge war chest for China.

PILGRIM: Industry watchers say while unconfirmed, the Ford Volvo bid is widely discussed in automotive circles and is expected by the end of this month. Auto industry watchers like Jessica Caldwell of Edmunds.com say it would put China's Geely Holding Group in the big leagues overnight.

JESSICA CALDWELL, EDMUNDS.COM: Geely is a relatively small automotive company in China. They do basically three main lines. It's not a big player yet, so this exposure that they're getting right now is really good, especially making some sort of alliance with Volvo, and that would pretty much propel them onto the world stage.

PILGRIM: Auto analysts say Volvo's production would certainly be moved at least in part to China, where labor is cheap. Volvos could become a new Chinese export to the United States.

(END VIDEOTAPE)

PILGRIM: Now industry watchers say Ford is clearly ready to unload Volvo. We saw sales drop 32 percent in the last year in the United States. Ford today said we're not commenting on that report. We're in the midst of exploring our strategic options for Volvo, which as we have said could include a sale -- Lou.

DOBBS: I love it. These companies still are trying to talk cute like...

PILGRIM: Yeah.

DOBBS: ... you know as if the SEC were watching now or something. It's sort of silly, isn't it?

PILGRIM: I mean everyone we talk to says this is under active discussion.

DOBBS: And Volvo, but you know you think maybe they ought to hang on to Volvo. Sales were only down 32 percent. That sounds pretty good in this environment.

PILGRIM: You know what they were telling us. It's such a great brand that the Chinese would really benefit from the validity of this brand, if they actually got it at bargain basement prices.

(CROSSTALK)

DOBBS: ... of those Chrysler assets and what would they do? Go to Detroit, just uproot all the equipment and ship it all to China?

PILGRIM: You know, you know the odds are that they move production to China is absolutely, I don't know...

DOBBS: Well I don't know. When you -- you know the average price of a house last month, the median price of a house sold in Detroit was $7,500. They could just move a lot of Chinese folks into Detroit. It's starting to sound like it might be an economic possibility. You know a dispiriting tale at best. Thanks very much, Kitty -- Kitty Pilgrim.

Well coming up here next, new threats to our Second Amendment rights. We'll tell you all about that.

And I'll be talking with the attorney general of the state of Arizona. He's setting an example for the entire nation on how to deal with Mexico's violent drug cartels. Stay with us.

(COMMERCIAL BREAK)

DOBBS: A controversial proposal tonight could force gun owners in Wisconsin to pay for the state's spending problems. Wisconsin's governor, Jim Doyle, wants to raise background check fees by nearly 300 percent from $8 to $30, which would be basically a tax increase on Americans who want to exercise their second amendment rights. That extra money, we're told, would be used to cover various unrelated expenses, and to curb an almost $6 billion state deficit. How about that.

And meanwhile, in New Jersey, a bill that would limit gun purchases to one per month was defeated in the senate. Much to the disappointment of Governor John Corzine. Critics of the legislation say New Jersey gun laws are strict enough and that the one per month law is not only ineffective, it would be an infringement upon our constitutional rights.

The drug wars in a raging along our southern border tonight are posing a rising and worsening threat to the United States. In Arizona, cities there are experiencing an increase in human smuggling, kidnappings and violent crime. My guest is leading a new campaign against human smugglers and drug traffickers in his state. Joining me now is Arizona's Attorney General, Terri Goddard. Mr. Attorney General, good to have you with us. TERRY GODDARD, ARIZONA ATTORNEY GENERAL: Good evening. Pleasure to be here.

DOBBS: We have heard variously from the department of homeland secretary, Janet Napolitano, that the problem apparently in Mexico is that the second amendment of our constitution is somehow an inconvenience for the government of Mexico. Is that -- I can't even believe two national officials would talk like that when we have basically a war raging just south of your state.

GODDARD: Well, there is a war raging in Mexico. And a lot of the arms that are being used by the drug cartels in that war come from sources in the United States. 90% of the weapons that have been traced from Mexico are found to come from the U.S.

DOBBS: I'm sorry, just out of curiosity, because what I would hike to know about that is, the DEA, the justice department say that the Mexican government will not give them the serial numbers for the weapons that were under discussion, and that number, 90%, we've heard. But the facts are, we haven't been given the serial numbers for the weapons.

GODDARD: Actually, the e-trace program run by the bureau of alcohol, tobacco and firearms has been chasing down some weapons that were found at crime scenes. We're involved right now in Arizona in a prosecution against an individual arms dealer selling to straw buyers, that's a contravention of law. What the Mexican authorities have asked us to do, and we're talking seriously, is to try to make sure that the illegal sales don't continue, or we do everything we can to stop them.

DOBBS: And the weapons that were sold by this -- allegedly by the dealer there in Arizona, they were what? What brands? What type of weapon?

GODDARD: Mostly AK-47s. There were 500 in the last year. I can't go into detail, because this is a case that actually started trial today.

DOBBS: Okay. So as we look at this, and we hear that the second amendment is then somehow a problem, the AK-47, these were fully automatic weapons?

GODDARD: I'm sure they weren't when they were sold. How they're being used in Mexico, frankly, I can't tell you. I believe they're used as automatic weapons. But the bottom line is the straw buyer. This is not a second amendment issue, Mr. Dobbs. This is a question of following the existing arms laws in the United States.

DOBBS: Yeah, I would think that would be the case. And this is a federal prosecution?

GODDARD: No, it's a state prosecution. I know that's confusing.

DOBBS: That is.

GODDARD: The investigation was done by the bureau of alcohol, tobacco and firearms, but Arizona prosecutors are taking it to court.

DOBBS: I guess I have to ask this question, why in the world isn't it a federal prosecution and why isn't the ATF the relevant agency?

GODDARD: Well, I'm not the best person to ask. We were delighted to be able to take this case. Because we've been for years investigating human smuggling and the money transfers that are part and parcel of facilitating human smuggling. So this is the other half, I believe, of some of the same criminal enterprises.

DOBBS: Here's where I get confused. If you would help me out. The United States government, the federal government's responsible for securing the border. If they were doing their jobs, there would be no human smuggling. If the federal government were securing the border between Mexico, let's say, and Arizona, there would be no arms traffic. So this could save you a lot of trouble, and you could say as the attorney general of the state of Arizona could say that phoenix has become the kidnapping capital of the United States, and the United States government could secure the public safety here by stopping both arms trafficking and human smuggling, and by the way, the fact that Mexico remains the principal source of methamphetamines, marijuana, cocaine and heroin into the United States. Help me out.

GODDARD: Well, you've thrown a lot of curveballs at me here.

DOBBS: I'm sorry.

GODDARD: First and foremost, I would say our U.S. attorney in Arizona has the highest caseload in the United States for a similar office, and they're doing mostly immigration cases.

DOBBS: Surely.

GODDARD: That's one of the reasons that the bureau of alcohol and tobacco came to us, because there was an extra prosecution capacity. But as I said, this is something we've been working on for a long time in Arizona. I would be delighted to work more on the kidnappings that you referred to. We're in serious trouble there because some of the drop house related crimes are something that is causing a great deal of concern in our state.

DOBBS: And there were demonstrations against sheriff of Maricopa County, Joe Arpaio, over the weekend. I'm just at a loss as to how people who are in this country illegally, who would, if the federal government were doing its job, or if the state government working with the federal government was doing its job in securing that border, why would there be a protest against the sheriff who's basically trying under 287G of the U.S. code, trying to stop illegal immigration? It's a little confusing to me.

GODDARD: Sometimes it gets very confusing down on the border. In this case, a lot of people felt that the sheriff was not just going after people here that were illegal, but many that were actually United States citizens. DOBBS: How about you, you're the attorney general of the state. Have you ever found him to be in violation of state law? Or in any way violating civil rights of the residents of the state?

GODDARD: We haven't found him to be so. There's certainly been some anecdotal complaints to my office. But we don't have jurisdiction in this area. It's a justice department issue, if it belongs in anybody's court.

DOBBS: All right. So far, well, I guess we can say that the U.S. justice department has looked into it, I assume. Is that correct?

GODDARD: They're not talking. But I assume that they've been looking into the complaints that they've received, yes, sir.

DOBBS: And they've never brought an action of any kind?

GODDARD: Not that I'm aware of. You probably heard about it before I have.

DOBBS: I've never heard of it. I was just trying to catch up with the latest from law enforcement of the state of Arizona. Mr. Attorney general, we appreciate your being with us.

GODDARD: Mr. Dobbs, good evening to you.

DOBBS: Thank you very much.

Up next, the president and the prime minister, whatever could this are. Could it be the beginning of a beautiful new friendship, a new world order? Did I mention you'll be paying for it?

Republican chairman Michael Steele and a fellow by the name of Rush Limbaugh. Top radio show host, telling us what their listeners, what's going on in Washington, D.C. Who made Rush Limbaugh the head of the Republican Party? Does he mind? What is the white house doing? Is this a strategy?

(COMMERCIAL BREAK)

DOBBS: Joining me now, three of my favorite radio talk show hosts. In Cincinnati from WBVZ in Ohio, Lincoln Ware. Lincoln, great to have you with us. And from WBCM in Baltimore, Tom Marr. Good to have you here. Here in New York, my colleague from WOR, Steve Marzberg, Steve, great to see you.

The president today said buy stocks. What do you think Steve?

STEVE MARZBERG, WOR: After he said I can't watch the gyrations of the market. You know, like a political tracking poll. As everybody watches it every day and see their savings and 401(k) and futures go down the tubes. What was that about, buy stocks now is a good buying opportunity? Here was a guy expressing no confidence in the capitalist market. Done nothing but trash everybody who buys stocks. DOBBS: He's not alone in that right now.

MARZBERG: But look, he's put us there. He's help put us there. Look at the wealth in the market how it tanked since he's become president. What.

DOBBS: What do you think?

TOM MARR, WCBM IN BALTIMORE: I think it's interesting how he talks about 401(k)s. They're 101(k)s. I don't think he knows anything about the free market at all. This is his Dow, this is his stock market. He talked about it bobbing up and down today? It's sinking like a rock on water on his watch. Can't blame it on George Bush.

LINCOLN WARE, WDBZ IN CINCINNATI: But you've got to look at the day-to-day. You've got to build the confidence up. If you don't have confidence, people are not going to invest in the markets. He says don't like for day-to-day, look down the road. Look now. If I looked at my 401(k) now, I'm not happy. I don't have any confidence.

MARZBERG: But he keeps telling us things are going to get worse. It's going to take a decade to get out of this. And keeps spending more. What confidence is he instilling in anybody?

WARE: I don't know if it's going to take a decade to get out of this, maybe a year and a half or two. But not a decade. Come on. You're stretching it a bit.

MARR: Lincoln, the real problem here is that he's counting on big government to get us out of it. The only thing big government can do is screw things up. You don't increase taxes on anybody, reduce taxes and actually cut spending.

DOBBS: That's just not true. George Bush showed us that government can be extraordinarily effective. He was a genius. He just --

WARE: Oh, come on. He cut taxes.

DOBBS: It was just brilliant.

WARE: He cut taxes, didn't put any more money in the infrastructure. Didn't take care of the health care. Didn't do anything for education.

DOBBS: Are you talking about George W. Bush? Are you talking about George W. Bush?

WARE: To get us back to where we need to be.

MARZBERG: Why are we debating George W. Bush?

DOBBS: Because I wanted to. Because I wanted to.

MARR: Let's just say this. It's amazing, Lou, for me to hear that he didn't do anything for health care when we got this very expensive prescription --

DOBBS: $400 billion worth.

MARR: $400 billion worth. And his economy was good -- hold on, Lincoln. Hold on, Lincoln. I didn't interrupt you. Don't interrupt me.

WARE: Yes, you did. I mean, who are you? You're cut from the same cloth. Come on. I'm not going to apologize to you.

MARR: I may be in who's who in broadcasting, you're in who's he.

WARE: You're in who's were.

DOBBS: Wow, you guys are getting -- it's just politics, guys, for crying out loud. Now, let me say, Lincoln, I've got to ask you a question.

WARE: Yes.

DOBBS: What the heck were you trying to say there before Tom interrupted you?

WARE: I can't even remember now.

DOBBS: Let me bring up something I think is fascinating. And that is, Michael Steele just -- I'm starting to use an expression that would be inappropriate for the hour -- went after Rush Limbaugh. And I don't understand what's going on there.

WARE: Everything he said --

MARR: Whoa, whoa, whoa.

MARZBERG: He thinks you're asking him.

DOBBS: I'm sorry. Go ahead, Lincoln.

WARE: Everything he said was true. He didn't need to apologize.

MARZBERG: Look, you see, what Michael Steele unfortunately, and I love him, but I think he's making mistakes here. He's falling into the trap. Rahm Emanuel has a bogeyman now. What about Barack Obama radically changing this nation in ways we never could have imagined? We don't need to talk about that. Rush Limbaugh. Michael Steele plays into that? I'm glad he apologized.

WARE: Why should he apologize? He might as well have castrated himself when he apologized to Rush Limbaugh. He has no power, or respect from the party now.

MARR: Since I know him better than just everybody here, I'd like to say something about Michael Steele. No one worked harder for Michael to get elected to the United States senate at the national level than Rush Limbaugh did. I know. I was part of that effort. Michael Steele goes on a show where he's not going to get votes anyway. He hears -- and he says terrible things about Rush Limbaugh. You never hear Rush Limbaugh, number one, being rude to anybody on his show. And Rush Limbaugh -- no, you don't. Rush Limbaugh is not the leader of the Republican Party. He's been very upset -- no question he's the leader of the conservative movement in America. And Michael Steele owes him an apology and he's done himself irreparable damage.

DOBBS: We're going to be back with our panel. We're going to huddle here. We're going to set new rules and then we're going to come out and fight some more.

A reminder to vote in tonight's poll. The president says globalization is the solution to our economic crisis. Others say it is the cause of it. Which do you believe? Globalization is the problem? Globalization is the solution? Like to hear from you. Cast your vote at loudobbs.com. We'll have the results in just a few moments.

(COMMERCIAL BREAK)

DOBBS: We're back now with our panel. Lincoln Ware, Steve Marr. Steve, let me start.

To a comment today. We have just very little time. And just want to, in the question we have asked our audience. Globalization, the president says is the solution. Or is it the cause of our crisis? What is your view real quick?

MARZBERG: I think if we are talking financially, the economic crisis it is part of the problem. It could be part of the solution. Not in Obama's hands.

DOBBS: Tom?

MARR: Globalization is here whether we like it or not. Obama's job right new should be the U.S. economy not to get along with Gordon Brown and the rest of the world to straighten it out. Take care of the folks at home first. If we get taken care of the rest of the world will follow.

WARE: As the world goes so goes the United States. It is a world economy. Got to get in the water and play with everybody.

DOBBS: Lincoln, good to have you with us. Steve, Tom, thank you very much. Gentlemen. Thank you for getting along so well. Wonderful.

WARE: Tom, you got to watch that guy.

MARR: Yes, you do.

DOBBS: Coming up at the top of the hour, Campbell Brown, "NO BIAS, NO BULL."

Campbell, you are back. Great to see you. You are a lot -- let me put it this way, it's great to see you.

CAMPBELL BROWN, CNN ANCHOR: Thank you, Lou. It's good to be back and good to see you too.

Of course, tonight we are following up on your conversation. President Obama's new campaign to pump up confidence in his plans to revive this economy on life support. So far his stimulus package. Other massive infusions of taxpayer dollars have done little to inspire Wall Street. Many are asking where the recovery is. Ali Velshi is going to be here to break it all down for us.

And talking about stimulus cash, we are taking up the president's challenge to follow the money to see if it is helping create jobs and rebuild the country. We will show you one project that could be just another bridge to nowhere.

That all coming up at the top of the hour. Lou?

DOBBS: Shovel ready no doubt.

BROWN: Yep.

DOBBS: All right. Campbell, thanks. Good to see you.

Still ahead the results of our poll and some of your thoughts. Stay with us. We'll be right back.

(COMMERCIAL BREAK)

DOBBS: Tonight our gut check. We salute republican congressman Paul Ryan for his remarks about the president's $3.6 trillion budget. The ranking republican on the house budget committee said the president's budget does not reflect any change of tone in Washington and will only serve to make the government even bigger.

REP. PAUL RYAN (R), HOUSE BUDGET CMTE.: What's most distressing about this budget is it takes a decidable ideological turn away from what built this country for the type of governing in Europe that provides social stagnation we have not seen here.

DOBBS: Since republicans don't have the votes to stop that budget, he added, it is his party's responsibility to bring the American people the facts.

Well tonight's poll results. 93 percent of you say that globalization is the cause of our economic crisis, not as President Obama said the solution.

Time now for some of your thoughts.

Sharon in Wisconsin said, "Lou, I saw this on the back of an SUV. I'll keep my money, my freedom and my guns. You can keep the change."

Mark in Virginia said, I have just got to say thank you for sharing that with us. That sound like it will be a very popular bumper sticker to me. "Lou, I figured out why the democratic lawmakers don't mind voting in tax increases it's because they just don't bother paying their taxes." Well, sometimes. Roy in California said, "How about a daily tax on congressional seats. For each day the congressman doesn't show up, a no-show tax should be charged." That's a great idea.

Gordon in California, "The Chinese are now sending rockets to the moon. That makes perfect sense to me, we probably outsourced production of all the part to China so they're just cutting out the middleman."

And Charles in West Virginia, "Perhaps the attorney general and the president would rather only criminals own guns. Then the legal and law-abiding citizens of our country."

We love hearing from you. Send us your thoughts to loudobbs.com.

Join me on the radio Monday through Friday for the Lou Dobbs show, 2:00 to 4:00 p.m. each afternoon Monday through Friday on WOR, 710 radio in New York. Tomorrow, noted economist, Pat Choate joins us, the latest on the president avenue budget and New Jersey State Senator Jeff Van Drew joins me. He'll be talking about his opposition to a bill that would have -- well, rolled back the second amendment in the state of New Jersey. Go to loudobbsradio.com to get the listings in your area.

We want to hear more from you send us your I-reports as well. Grab your camera, send us a video, click on loudobbs.com. Let us hear from you. Your responses, could be used on our broadcast.

Thank you for being with us tonight. For all of us here, good night from New York.

Campbell Brown "NO BIAS, NO BULL" starts now.