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Interview With Chuck Leavell; Alabama Authorities Investigate Church Fires; President Bush To Sign Deficit-Reduction Act; Teen Falls Out Of Bus Window Onto Street
Aired February 08, 2006 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Few hard clues, just nine burned churches, nine congregations overcome with grief and anger.
Investigators in Alabama think all of the fires are probably linked and deliberately set. All of the churches were Baptists, four mostly white, five mostly African-American.
CNN's David Mattingly is in Boligee, Alabama.
(BEGIN VIDEOTAPE)
DAVID MATTINGLY, CNN CORRESPONDENT: The church fires investigation in Alabama continuing today -- you can see behind me, in the rubble of what used to be the Morning Star Baptist Church in Boligee, Alabama, federal agents picking through the rubble, going through piece by piece with a rake, looking for any clues they can possibly find as to how this fire was started, and, possibly, who started it.
Of course, the question remaining, why would anyone be targeting Baptist churches in rural Alabama?
MIKE BOUCHARD, ASSISTANT DIRECTOR, BUREAU OF ALCOHOL, TOBACCO AND FIREARMS: Most of the similarities we will keep close hold. But, however, there are a lot of common things that are pretty common. They're churches in remote areas. They're all the same denomination, of course.
There are a lot of similar burn patterns. A lot of them were burned before they were noticed. They burned for a long time before anyone noticed the fires. So, those are some of the similar things that we have seen.
MATTINGLY: At this point, there have been no clear suspects and no clear motive in any of the cases. Both white churches and black churches had been targeted. The only link is, they are all Baptist and all in rural Alabama.
There's very little so far that investigators have been able to go to the public with, either. They say that, in both cases, on Friday and on Tuesday, a dark SUV was spotted. According to one report, it might have contained two white men. But that's about it -- everyone asking the public to remain vigilant, to watch their churches, in hopes that this does not happen again.
David Mattingly, CNN, Boligee, Alabama.
(END VIDEOTAPE)
PHILLIPS: Stop the violence, that's the caption from President Bush today, as protests mushroom over cartoons depicting the Prophet Mohammed.
Demonstrators marched in Kabul, Afghanistan. But there was a much more violent protest to the south. Five people died when hundreds of rioters tried to storm a police station and get into a U.S. base. Protesters threw stones at the British Embassy in Tehran. Some tried to charge the main gate, but police drove them back.
In Karachi, Pakistan, Danish, Israeli and American flags went up in flames during a rally. Demonstrators shouted, "Death to Denmark" and "Death to America." The cartoons first appeared in a Danish newspaper. Hundreds of Muslims took to the streets of Sarajevo, protesting at the Norwegian, French and Danish embassies.
Condoleezza Rice says some governments are making the cartoon controversy worse. And the secretary of state doesn't hesitate to name which ones.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: Given the control of the Iranian government, which, by the way, hasn't even hidden its hand in this, that Iran and Syria have gone out of their way to inflame sentiments and to use this to their own purposes. And the world ought to call them on it.
All responsible people ought to say that there is no excuse for violence. We all need to respect each other's religions. We need to respect freedom of the press. But, you know, again, with freedom of the press comes responsibility.
(END VIDEO CLIP)
PHILLIPS: Many Muslims are punishing Danish companies for what the Danish newspaper printed. They are voting with their wallets. And the makers of some famous products are feeling the effects.
CNN's Ali Velshi has the story.
(BEGIN VIDEOTAPE)
ALI VELSHI, CNN CORRESPONDENT (voice-over): LEGO is getting caught up in a major international stumbling bloc, the protests over the controversial cartoon of the Prophet Mohammed.
You see, LEGO Toys come from Denmark. And, unfortunately, for LEGO and for other big-name companies, like Carlsberg, which sells non-alcoholic beer in the region, and for stereo-maker Bang Olufsen, it was a Danish newspaper that first published the offending cartoon.
The problem, a grassroots boycott of all things Danish is now under way in more than a dozen Gulf states.
But other than Iran, whose president has called for a boycott, other Middle Eastern governments haven't gotten involved. Danish companies export more than $1 billion a year to the Middle East.
HENRIETTE SOELVTOFT, CONFEDERATION OF DANISH INDUSTRIES: It has had a big impact for the individual companies so far, but it's difficult to come up with a qualified guess, in terms of exact numbers, when you're talking about lost export.
VELSHI: Arla Foods, a big producer of Denmark's famed Havarti cheese, says the boycott is costing about $2 million a day in lost sales.
Even Nestle is feeling the pinch, and it's not even Danish. It's Swiss. Nestle has taken out newspaper ads in Saudi Arabia, reminding people that its products are neither made in, nor imported from Denmark.
From time to time, informal boycotts gain steam in Middle Eastern countries. Most recently, general anti-American sentiment has resulted in sales drops for companies like Coke. An Iranian cola named Zam Zam, named for a holy spring in Saudi Arabia, gained market share during a recent Palestinian boycott of Coke. But boycotts like those haven't had much staying power.
Ali Velshi, CNN, New York.
(END VIDEOTAPE)
PHILLIPS: Verbal attacks, Army shootings, and low turnout, it all adds up to a day at the polls in Nepal. The threat of violence kept many voters at home for today's municipal election, the kingdom's first in seven years. A half-dozen people are dead in election- related violence, including communist rebels and a protester shot by soldiers. Critics call the election a sham, aimed at cementing the king's position, amid calls for democracy.
Election workers in Haiti are bleary-eyed today, as a long vote count goes on. U.N. troops are gathering ballots any way they can, with helicopters, trucks, even mules. Voters chose a president and parliament in elections the U.N. secretary-general calls a significant step forward.
A grand gesture in Havana, as Fidel Castro reminds the U.S. that it doesn't have to travel very far to find a foe. And when it comes to political poker, he knows how to up the ante.
CNN's Lucia Newman has more.
(BEGIN VIDEOTAPE)
LUCIA NEWMAN, CNN HAVANA BUREAU CHIEF (voice-over): For two weeks, bulldozers and workers labored around the clock in front of the U.S. Diplomatic Mission to build what President Fidel Castro called a surprise. Monday, at dusk, the Cuban leader unveiled that surprise, 138 black flags mounted on enormous flag poles, representing what he calls the Cuban martyrs of U.S.-backed terrorism, including the victims of a Cuban Airlines bombing, allegedly by an anti-Castro militant, now being held in the U.S. on immigration charges.
"Today, we have dressed in black to symbolize our mourning and pain for the deaths of our loved one," said Carlos Alberto Gremata (ph), son of one of the bombing victims.
The flag park is, in fact, a response to another symbol, the electronic ticker that, for weeks, has been beaming human rights messages and news from the fifth floor of the U.S. Interest Section for all to see.
Even as the flag park was unveiled, the ticker began ticking, asking, why was Castro selling cement to Venezuela, when Cubans needed it? Followed by quotes by Martin Luther King.
U.S. diplomats say the idea is to communicate free ideas to the Cuban people. But the Cuban government considers it an offensive and unacceptable provocation.
(on camera): There had been wide speculation that Castro's so- called surprise was, in fact, intended to completely block the view of the electronic message board. But, while the flag park is impressive, it's now clear that it's meant to be more of a symbol than a blackout.
Lucia Newman, CNN, Havana.
(END VIDEOTAPE)
PHILLIPS: You don't need a wiretap to know what Jimmy Carter thinks of George W. Bush's domestic spying program.
The 39th president is a unique position to speak on that matter, having signed into law the very measure Mr. Bush is accused of violating, the Foreign Intelligence Surveillance Act of 1978.
Talking about the controversy this week, Carter said -- quote -- "Under the Bush administration, there has been a disgraceful and illegal decision. We're not going to let the judges or the Congress or anyone else know that we're spying on the American people."
Carter also had words for Alberto Gonzales. The attorney general defended domestic spying before a Senate committee, saying it strikes the right balance between national security and the privacy of citizens. Carter's response: "It's a ridiculous argument, not only bad. It's ridiculous. Obviously, the attorney general, who said it's all right to torture prisoners and so far -- so forth, is going to support the person who put him in office."
His resume reads like a rock 'n' roll hall of fame, though he is not super famous himself. Keyboardist Chuck Leavell joins me to talk about the Rolling Stones and his other passion, growing trees.
That's next on LIVE FROM.
(COMMERCIAL BREAK)
PHILLIPS: Creative combinations, talented newcomers, and career comebacks -- it's time for the Grammy Awards. What surprises are in store? Well, stay with us on LIVE FROM. We will preview the Grammys.
(COMMERCIAL BREAK)
(LAUGHTER)
PHILLIPS: Well, the question for Chuck Leavell is not whom he has played keyboards with, but whom he hasn't.
(MUSIC)
PHILLIPS: He says, there's my pal.
On the with list, the Almond Brothers band, George Harrison, Eric Clapton, and those Brits that he's been kicking around with for more than 20 years, the Rolling Stones. But his day job is his other passion, growing trees and writing books. He does it all with his wife, Rose Lane , on a 2,200-acre tree plantation in Middle Georgia.
He joins me now at the CNN Center, just hours before he and Stones take the stage next door at the Philips Arena.
Great to have you.
CHUCK LEAVELL, ROLLING STONES KEYBOARDIST: Great to be here. Thanks, Kyra.
PHILLIPS: Yes.
LEAVELL: Wonderful to see you.
PHILLIPS: Hey, it's a pleasure.
LEAVELL: Thanks.
PHILLIPS: Boy, we have a lot to talk about.
I guess -- well, let's start with -- you know, since we are coming off of the Super Bowl and you guys were -- you were at the Super Bowl, right?
LEAVELL: I was.
PHILLIPS: OK?
LEAVELL: Yes. You bet.
PHILLIPS: What was it like? Was it awesome?
LEAVELL: Oh, it was fantastic. You know, what a great American institution. And to say that I was there on stage at halftime, wow. It was just a real thrill. PHILLIPS: So, of course, you know, we were looking for the wardrobe malfunction. The only thing we saw was a little bit of Mick Jagger's tummy.
(LAUGHTER)
LEAVELL: That was...
PHILLIPS: Did he plan to do that, or did you guys pull his shirt up...
LEAVELL: No.
PHILLIPS: ... before he ran out there?
LEAVELL: Top secret.
(LAUGHTER)
LEAVELL: Top secret. I can't discuss it.
PHILLIPS: We can't talk about that, huh?
(LAUGHTER)
PHILLIPS: OK. Good.
So, you know, any scoop on the band that we don't know, that we need to know, that we can, you know, have the exclusive here on CNN?
LEAVELL: Oh, man. You know, I think the scoop is, how great is it that we are still out here working? You know...
PHILLIPS: It's pretty incredible.
LEAVELL: ... what a -- what a work ethic, 40 years of the Rolling Stones, plus now. On the last tour, we celebrated 40 years. And, here we are, still out here working. I think it's just absolutely extraordinary. And I'm so glad to be a part of it.
PHILLIPS: Is there a favorite song that you love jamming to?
LEAVELL: Oh. There are so many. "Honky Tonk Women," I love that song. I remember where I was when I first heard it.
PHILLIPS: Where were you?
LEAVELL: Nashville, Tennessee, living there with one of my first bands. And...
PHILLIPS: Misfitz?
LEAVELL: No.
PHILLIPS: No, that's going way before, right?
LEAVELL: Yes, exactly.
PHILLIPS: OK. Well, let's -- we will go back there in a minute.
LEAVELL: Yes.
PHILLIPS: "Honky Tonk Woman."
LEAVELL: "Honky Tonk Women" is a great one, "Only Rock 'n' Roll," 'Jumpin' Jack Flash," "Satisfaction," "Can't Always Get What You Want." There's so many great Rolling Stones songs.
PHILLIPS: Is there one that you play and think, man, I can totally relate to this song?
LEAVELL: Oh, boy.
Well, let's see. "Only Rock 'n' Roll," that's a good example there.
(CROSSTALK)
PHILLIPS: There you go. That's perfect. If defines your soul.
LEAVELL: But I like it, like it, yes, I do.
(LAUGHTER)
PHILLIPS: Now, going back, the Misfitz, let's talk about this for a minute. OK. We have got a few pictures. We did our homework.
LEAVELL: Oh, my goodness.
PHILLIPS: Music has come a long way since that time, yes? But you have kept some...
LEAVELL: Yes, indeed.
PHILLIPS: ... of those in your roots.
LEAVELL: Well, you bet.
I had a band called the Misfitz growing up in Tuscaloosa, Alabama. We used to play the YMCA every Friday night.
PHILLIPS: Oh, my gosh.
LEAVELL: We even had our own Saturday morning television show...
PHILLIPS: Really?
LEAVELL: ... called "Tuscaloosa Bandstand." It was, of course, modeled after "American Bandstand."
And what fun were we having? And what did we play? Largely British invasion, Beatles, Stones, Zombies, Dave Clark Five, of course, with a lot of the indigenous music of the South, some good old soul music as well, R&B and soul.
PHILLIPS: Did any of the other guys make it, like you?
LEAVELL: Well, none of them quite, you know, were fortunate enough, like I have been, to work with all these wonderful different artists throughout my career.
But the cats are still playing. You know, so, that's good.
PHILLIPS: Really?
LEAVELL: Yes. They...
PHILLIPS: Do you ever...
LEAVELL: Some of them...
PHILLIPS: ... join up and jam with them?
LEAVELL: I haven't seen those guys in a long time.
(LAUGHTER)
LEAVELL: Actually, the drummer, Bill Johnson, came to the last show that we played here in Atlanta in October.
PHILLIPS: Wow.
LEAVELL: So, it was cool to see him. I hadn't seen him in 20 years.
PHILLIPS: Were you really misfits?
LEAVELL: We were.
(LAUGHTER)
LEAVELL: You bet.
PHILLIPS: You are sitting around looking at each, OK, what do we call each other?
(CROSSTALK)
PHILLIPS: Misfitz.
(LAUGHTER)
PHILLIPS: Perfect.
(CROSSTALK)
LEAVELL: We earned that reputation.
PHILLIPS: All right.
Well, we got to -- we have got to sort of turn the stone here. You mentioned Nashville.
LEAVELL: Yes.
PHILLIPS: You are a good old country boy. You're from Georgia. You have got that in your roots.
LEAVELL: Yes.
PHILLIPS: A tree farmer? Explain this to me.
LEAVELL: It's all my wife's fault.
(LAUGHTER)
LEAVELL: You see, my wife, Rose Lane, comes from a heritage and a tradition of stewardship of the land. Her father was -- tended forest land and also grew crops. Her brother continues to do that. Her grandfather did it.
And, so, in 1981, she inherited some 1,200 acres of land from her grandmother. And that responsibility fell on our shoulders. And, so, I had to go on a little educational endeavor to learn about land use, to learn about forestry. And that's what we decided to do, was use the land going forward, mostly for concerns of forestry and wildlife.
PHILLIPS: Wow.
And you write a lot about -- I mean, this takes a lot of dedication and hard work. A lot of that, you learned from your dad, right? He really taught you a lot about having a work ethic.
LEAVELL: A work ethic, absolutely.
Dad was very good about that and kept us on track. And I'm so grateful for that. And, of course, mom did, too. You know, we had great parents growing up. And I'm so grateful for that.
PHILLIPS: Did they have a musical gift, or were you sort of the unique one in the family?
LEAVELL: My mother played.
PHILLIPS: Really?
LEAVELL: She played the piano. And that's how I learned.
I used to tug at her skirt and ask her to play for me. And I would watch her hands, and I would listen, and I would get up on the stool and imitate what I saw and...
PHILLIPS: What did she play?
LEAVELL: She played the piano.
PHILLIPS: No, but what kind of music?
LEAVELL: Oh, what -- well, mostly standards of the day.
PHILLIPS: Do you remember a certain...
(CROSSTALK)
PHILLIPS: OK.
LEAVELL: That sort of thing.
And growing up around the house, we could hear Ferrante & Teicher and Roger Williams on the turntable. But we also heard Ray Charles and...
PHILLIPS: Oh, wow.
LEAVELL: ... and others. So, it was a mixed bag of things.
PHILLIPS: So, of course, you started doing the rock 'n' roll thing. Did she ever say now, little Chucky, I don't know if I want you going that route?
(LAUGHTER)
LEAVELL: You know, they were always so encouraging to me, Kyra.
PHILLIPS: Go for it.
LEAVELL: They were great.
You know, they said, do what you love, love what you do, and -- and don't stop.
PHILLIPS: All right.
I know you love your family. I know you love your kids, your daughters. Wow. You are expecting your first grandbaby today.
LEAVELL: How about that?
PHILLIPS: That is...
LEAVELL: The due date is today. We will see what Mother Nature has in mind. But I'm...
PHILLIPS: Is there a name you want?
LEAVELL: Is there...
PHILLIPS: Boy, girl, a certain name?
LEAVELL: Happy, healthy is what we want.
PHILLIPS: Oh.
LEAVELL: And Amy (ph) and Steve (ph), our daughter Amy and her husband, Steve, are going to be fantastic parents. We are just so excited about this.
PHILLIPS: Well, I have a feeling I know what their first book is going to be.
(LAUGHTER)
LEAVELL: You got that right.
PHILLIPS: Amy, I love you, but I want my little grandson reading "The Tree Farmer."
Tell me what made you decide to write this book. Why a children's book?
LEAVELL: Well, Kyra, several years ago, I wrote a book called "Forever Green: The History and Hope of the American Forest."
And, of course, this is a book for adults about the concerns of forestry in our country. There was so much misinformation out there. And, at that time, I started thinking about writing a book for children.
And, finally, we were able to do that. And "The Tree farmer" is a story of a grandson who goes to visit his grandfather's tree farm for the first time and begins to understand what it is to be a tree farmer.
And I'm so glad to do this. It's -- aimed at ages 4 to 8. And the idea is to get those wonderful, tender, delicate young minds to think about issues concerning the environment, conservation and, in particular, the gifts of the forest.
PHILLIPS: Well, pretty soon, that story is going to come to life and you are going to have that little grandbaby with you on the tree farm. That will be exciting.
LEAVELL: Oh, boy, it will indeed.
PHILLIPS: Chuck, thank you so much. We are going to have to all go to the concert tonight.
LEAVELL: Yes. You bet.
(LAUGHTER)
LEAVELL: Hey, I will be there.
PHILLIPS: Yes, I hope so.
LEAVELL: And it's...
PHILLIPS: Come back and visit us again, will you?
LEAVELL: I sure will. Thanks so much for having me on.
PHILLIPS: OK. Thanks, Chuck. LEAVELL: OK.
PHILLIPS: Well, there are so many things that we could say about the next story. But why not let the witnesses do the talking?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I mean, we are all kind of like shocked behind this, because, I mean, I have never -- I have been here 42 years. I ain't never seen anything like this in my life.
(END VIDEO CLIP)
PHILLIPS: Well, outrage, as a teenager falls off a bus. But it happened -- how it happened, rather, is going to surprise you.
LIVE FROM keeps its head and hands inside the windows at all times. See, I knew it. I always told my family to keep their hands in the windows.
(COMMERCIAL BREAK)
PHILLIPS: He remains a musical icon and one of the biggest names ever to come out of Jamaica. Now that country's government plans to pay tribute to Bob Marley.
Marley's house in Kingston, known as Tuff Going International -- or Tuff Gong International, rather -- will be declared a national monument. Jamaica's education and culture minister says the move honors everything Marley did to promote his country. Marley, who also crusaded for the legalization of marijuana, died of cancer 25 years ago.
Intrigued by creative combinations? If so, tonight's Grammy Awards might be the place with you. Irish rockers U2 team up with hip-hop's Mary J. Blige. Rapper Jay Z, and rockers Linkin Park repeat their collaboration. And out of 1,100 nominees, there could be a few surprises.
Brooke Anderson joins us live from Los Angeles with a preview.
Are you going to preview -- are you going to talk about every single one of those artists?
(LAUGHTER)
BROOKE ANDERSON, CNN CORRESPONDENT: No, we are not going to talk about all 1,100, Kyra.
And you are right. There probably will be some surprises this year. There always are. As you said, there are hundreds of artists who are nominated for Grammys. But three in particular stand the most to gain from tonight's competition.
So, I want to take a look now at those artists that everybody in the music industry just cannot stop talking about. (BEGIN VIDEOTAPE)
ANDERSON (voice-over): Confident rapper and producer Kanye West, soulful singer/songwriter John Legend and musical diva Mariah Carey are each nominated for eight Grammy Awards.
Carey's Emancipation of Mimi has sold more than five million copies, a surprising success for the singer whose career was recently considered all but over.
MARIAH CAREY, GRAMMY NOMINEE: It's been such an amazing year. And this album really means so much to me that I -- you know -- I'm just full of gratitude.
ANDERSON: Carey received nominations for record and song of the year, as well as in the coveted album of the year category. But her disc faces some tough competition, including U2's How to Dismantle an Atomic Bomb, Gwen Stefani's solo debut Love Angel Music Baby, the highly regarded Chaos and Creation in the Backyard by Paul McCartney and Kanye West's sophomore standout work Late Registration.
KANYE WEST, GRAMMY NOMINEE: The Grammys were one of my muses for this album. We wouldn't make it and say I hope to win album of the year. We're making it to win album of the year.
ANDERSON: Music industry experts say the album of the year will be a close call, but West has a good shot.
GEOFF MAYFIELD, "BILLBOARD": He is one of those guys who not only sells well but does speak to critics, does speak to fellow musicians.
ANDERSON: West's seven other nominations include record of the year for Gold Digger.
His protege, newcomer John Legend, who has signed to West's label, is up for awards, including best new artist and best R B album for Get Lifted.
JOHN LEGEND, GRAMMY NOMINEE: This is a big reward for what we've been working on for the past five, six years.
ANDERSON: Legend will be playing at tonight's awards. Also slated to perform, Kanye and Miss Mariah Carey.
(END VIDEOTAPE)
LEAVELL: And, in about five minutes, the very first celebrity arrivals will begin.
Kyra, 108 Grammys will be presented tonight, although, during the telecast, the three-and-a-half-hour telecast, only 11 of those Grammys will be awarded. The other 97 are actually presented at a pre-Grammy show that begins a little bit earlier. So, it should be a very memorable night. It is the 48th annual Grammy Awards.
PHILLIPS: All right. We will be looking forward to it, find out all the winners, and talk to you again tomorrow.
Thanks, Brooke.
COOPER: Sounds...
(CROSSTALK)
PHILLIPS: Well, President Bush about to sign the deficit reduction act in the East Room of the White House. He may make some comments on other newsworthy items. We will bring that to you live.
The news keeps coming. We will keep bringing it to you -- more LIVE FROM after this.
(COMMERCIAL BREAK)
PHILLIPS: Well, they say they agree on the ends, just not the means.
Republican Senator John McCain and Democrat Barack Obama have apparently made up. They had had a public spat earlier this week over the best way to reform the rules for lobbyists on Capitol Hill. McCain wants a task force from both parties. Obama favors a bill backed by Democrats.
A guilty plea by the once powerful lobbyist Jack Abramoff gave the reform effort new energy, but one senator says his colleagues are already losing interest in cracking down on lobbyists.
(BEGIN VIDEO CLIP)
SEN. RUSS FEINGOLD (D), WISCONSIN: Jack Abramoff's guilty plea inspired immediate promises that Congress would act on lobbying reform. And it certainly seemed like we were on a fast track to get something done. I still have high hopes that that can happen, but I must say the last few weeks have not been encouraging in some ways.
Already we are hearing the sound of furious backpedaling in the corridors of power.
(END VIDEO CLIP)
PHILLIPS: Jack Abramoff, of course, is the one-time D.C. lobbyist who has pleaded guilty to corruption charges. He is also the central figure in a federal investigation of influence pedaling in Congress.
A final solution to a decade-old problem or bad idea that would burden tax payers? Like so many ideas in Washington, it depends on which side you listen to. Senators are debating a bill that would create a $140 billion fund to compensate people sickened by asbestos. It would also ends asbestos-related court cases. Supporters say it's a win, win, win proposition for victims, businesses, and courts.
(BEGIN VIDEO CLIP) SEN. ORRIN HATCH (R), UTAH: This bill provides real compensation to real victims with real injuries. This bill stops a rampaging personal injury trial bar. This bill fixes a broken legal system that benefits personal injury lawyers at the expense of asbestos victims. And this bill provides certainty to everyone involved.
Straight now to the president of the United States, getting ready to sign the Deficit Reduction Act of 2005. We are also told the vice president is also in the room. Let's listen in.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Welcome, please be seated. Thanks for coming. Welcome to the White House.
In a few moments I will sign a Deficit Reduction Act of 2005. This important piece of legislation restrains federal spending and it will leave more money in the pockets of those who know how to use it best, the American people.
I appreciate the vice president being here. Speaker welcome, Leader Frist, thank you all for coming. Senator McConnell, Senator Santorum, Senator Judd Greg, chairman of the Senate Budget Committee.
Congressman John Boehner, House majority leader. Roy Blunt, House majority whip, Congressman Nussle, chairman of the House Budget Committee.
I want to thank you all for coming. I appreciate the members of the cabinet who are here, as well as all the members of the United States Congress and the Senate who have come for this important bill signing.
Our economy is strong and it is getting stronger. We are now entering our fifth year of uninterrupted economic growth. And last year our economy grew at a healthy 3.5 percent. Real after-tax income is up nearly eight percent per American since 2001. Productivity growth is high. Small businesses are thriving.
America's added 4.7 million new jobs over the last two and a half years. The unemployment rate is down to 4.7 percent, the lowest level since July 2001.
Our economy leads the world, yet we cannot be complacent. To keep our economic momentum, we need to look at the challenges down the road and respond with wise policies now. One of the most important policies we need to pursue is spending restraint in Washington D.C.
Earlier this week, I sent Congress a disciplined federal budget for 2007. And this morning I traveled to New Hampshire with Chairman Gregg, Senator Sununu, and Congressman Bass and Congressman Bradley to discuss the new budget proposal in detail.
The budget strategy begins with keeping taxes low. So that Americans can spend, save and invest more of their own money. And that'll help keep our economy growing and creating jobs. Budget funds are priorities starting with funding the United States military. Promoting alternative sources of energy, investing in math and science education and basic research. And helping to care for the poor and the elderly.
The same time my budget tightens the belt on government spending. Every American family has to set priorities and live within a budget. And the American people expect us to do the same right here in Washington D.C.
Federal budget has two types of spending, discretionary spending and mandatory spending. Discretionary spending is the kind of spending Congress votes on every year. Last year Congress met my request and passed bills that cut discretionary spending not related to defense or homeland security.
And this year my budget again proposes to cut this spending. My budget also proposes again to keep the growth and overall discretionary spending below the rate of inflation so we can stay on track to cut the deficit in half by 2009.
In the long run, the biggest challenge to our budget is mandatory spending or entitlement programs like Medicare and Medicaid and Social Security. Entitlement spending is determined by a specific formula and arrives as automatically year after year unless the Congress intervenes.
Together Medicare and Medicaid and Social Security are now growing faster than the economy, faster than the population, and nearly three times the rate of inflation. And the retirement of baby boom generation will put even more strains on these programs.
By 2030, spending for Medicare and Medicaid and Social Security alone will be almost 60 percent of the entire federal budget. And that will leave future generations with impossible choices. Staggering tax increases, immense deficits or deep cuts in every category of spending.
Bringing entitlement spending under control is a critical priority of our government. We need to slow the annual growth of entitlement programs to levels that we can afford. We do not need to cut these programs. There's an important distinction, it is the difference between slowing your car down to the speed limit, or putting your car into reverse.
By making wise reforms that will reduce the annual growth of mandatory spending, the Deficit Reduction Act will save taxpayers nearly $40 billion over the next five years. It's about $300 per taxpayer. The Deficit Reduction Act is estimated to slow the pace of spending growth in both Medicare and Medicaid.
Medicare's a federal program that provide health care for older Americans. Medicaid is a program administered in conjunction with the states that provides income for low-income Americans, families with children and some seniors. These programs are providing vital services to millions of Americans in need.
Yet the cost of Medicare and Medicaid are straining budgets at both the state and federal level. The bill I signed today restrained spending for entitlement programs while ensuring that Americans who rely on Medicare and Medicaid continue to get the care they need.
The Deficit Reduction Act is estimated to reduce the growth and Medicare spending by more than $6 billion over the next five years. The bill together with the Medicare Act of 2003 requires wealthier citizens to pay higher premiums for their Medicare coverage.
The savings created by this reform and others will make it possible to increase federal funding for important areas like kidney dialysis in rural hospitals. With this bill, we are showing that we can keep the promise of Medicare and be good stewards of the taxpayer's money at the same time.
The Deficit Reduction Act will also reduce the growth in Medicaid spending by nearly $5 billion over the next five years. This bill helps restrain Medicare spending by reducing federal overpayment for prescription drugs.
Taxpayers should not have to pay inflated mark-ups for the medicine that the people on Medicaid depend. The bill gives governors more flexibility to design Medicaid benefits to meet the needs of their states efficiently and affordably.
The bill tightens the loopholes that allow people to gain in the system by transferring assets to their children so they can qualify for Medicaid benefits. Along with governors of both parties, we are sending a clear message. Medicaid will always provide help for those in need.
But we will never tolerate ways for auditor abuse. The Deficit Reduction Act reforms and Medicare and Medicaid are a step on a road to long-term stability for these important programs.
Now we need to continue finding ways to make Medicare and Medicaid more efficient. My budget next year proposes another $36 billion in savings on Medicare and more than a billion in savings on Medicaid.
Budget proposals will slow the annual growth in Medicare over the next five years from 8.1 percent to 7.7 percent. That seems reasonable. And together with the bill I signed today, my budget will slow the average annual growth of Medicaid over the next five years from 6.9 percent a year to 6.6 percent a year.
This is progress in the right direction. These growth rates are still unsustainable. In the long-run, insuring the stability of Medicare and Medicaid requires structural reform. So I propose the bipartisan commission to examine the full impact of baby-boomer requirements on Medicare and Medicaid as well as Social Security.
Commission will include members of Congress from both political parties. It will recommend long-term solutions that will keep the promise of these vital programs while addressing their growing costs. I look forward to working with Congress to get this problem solved for generations to come.
The Deficit Reduction Act delivers savings in mandatory spending. It also shows the compassion of America. This bill provides new resources for programs that serve some of our citizens with the greatest needs, including hurricane victims, children in low-income families struggling to make their heating bills.
The Deficit Reduction Act makes important improvements to federal student loan programs. The bill cuts excess government subsidies to lenders and makes other reforms that will help us reduce overall student loan costs by about $22 billion.
With that money, we will save the tax payers $12 billion because we intend to increase student aid by 10 additional billion. What I'm telling you is the students are getting the money and we're making the program a lot more efficient for the tax payers.
The Deficit Reduction Act also reauthorizes welfare reform for another five years. Welfare reform has proved a tremendous success over the past decade. By insisting on programs that require work and self-efficiency in return for federal aid, we've helped cut welfare cases by more than half since 1996.
PHILLIPS: President of the United States talking about the Deficit Reduction Act of 2005. More money, increases, military and homeland security. Some of the major cuts, Medicare and Medicaid patients. We'll continue to follow that. You can also go to CNN.com/pipeline and watch the rest of it in it entirety.
Well, earlier today, reporters drew out President Bush on the cartoon controversy in the mushrooming protest in the Muslim world.
(BEGIN VIDEO CLIP)
BUSH: We reject violence as a way to express discontent with what may be printed the free press. I call upon the governments around the world to stop the violence, to be respectful, and to protect property, protect the lives of innocent diplomats who are serving their countries overseas.
PHILLIPS: CNN White House correspondent Suzanne Malveaux joins me with more.
Suzanne, how concerned is the Bush administration about the protests that are taking place across the world? You were actually in the room.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Kyra, actually, I mean there is a certain amount of alarm here at the White House when you look at least in Afghanistan. That U.S. base, some 600 protesters at least trying to attack that facility.
What they're trying to do, essentially, is get across a very clear message. And just by the fact that the president -- this was the only thing that he really talked about today, was this very issue. He brought it up himself. Kind of indicates just how important it is.
First of all, they want to make clear that they believe in freedom of speech and freedom of religion. And that certainly that expression, however, has consequences. On the other hand, they also want to get across the point across that the U.S. understands the kind of passion and anger that the Muslims feel over the offensive cartoon. But at the same time, they are condemning the violence behind this.
Kyra, I have to tell you, those who were actually involved in some of those discussions initially with the Danish people, the officials there, there was some misunderstanding initially. They felt that perhaps they felt they were killing the messenger. That is, the United States blaming Denmark for their remarks here. As opposed to those remarks themselves.
And the president, the White House, wanted to make it very clear that they stand by the Danish Prime Minister. The president giving a phone call for support. But at the same time, of course, condemning that violence -- Kyra.
PHILLIPS: You know, Suzanne, we've done so many interviews over the past week or so to get various opinions from various types of Muslims. And elsewhere, political leaders, and they're saying that it's not just about the cartoons. It's so many other things that have reached -- that were happening and in the cartoon controversy sort of triggered all this violence.
So is the Bush administration commenting on if the insurgency could be involved? That was one thing. The fact that Osama bin Laden was probably very happy with this?
MALVEAUX: Well, they recognize that this is a much bigger problem and a larger issue. As you mention, of course, there's the whole image of the United States, and of course, the policy that many people object to. Namely Iraq, as well as the Palestinian/Israeli conflict. We heard from Secretary Rice earlier today, flatly saying that she believes Iran and Syria are contributing, inciting this violence here. So this is a much larger issue.
That is why the United States and the president specifically coming out very strong today with this clear message but also, very, very sensitive, as you can tell by some of the language the president uses and other officials -- that this is something that they are really trying to balance here. Saying that look, we stick by our European allies, but at the same time, we do not want to offend the Muslim community.
PHILLIPS: Suzanne Malveaux live from the White House. Thanks, Suzanne. Since HIV/AIDS appeared more than 25 years, it's infected more than 40 million people, and each year, it still claims more than three million lives. Today Secretary of State Condoleezza Rice addressed some different figures in the U.S. Worldwide AIDS Relief Program.
President Bush launched the program in 2003 to fight the disease in more than 120 countries. Last year, funding increase for programs promoting abstinence and fidelity, but also for condoms and other means of birth control. Overall, spending will rise again this year, and likely next, despite many other cuts in social programs for 2007.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: We will not defeat this disease in a month or in a year, but if we sustain our commitment, if we match our compassion with action, we will one day bring hope to all who are living in the shadow of HIV/AIDS.
(END VIDEO CLIP)
PHILLIPS: Small town sleaze, big-time scandal. A police chief is accused of conspiring to make drugs while his wife allegedly got prisoners out of jail for a little hanky-panky. And the mayor's in trouble, too. LIVE FROM is innocent until proven guilty after this.
(COMMERCIAL BREAK)
The town of Lonoke, Arkansas, just may need a bigger jail. The town's mayor and police chief are both under arrest on a long and complicated series of charges, the most sensational involve the chief's wife and some allegedly illicit activities with prisoners.
Jared Clark (ph) of CNN affiliate KTVH in Little Rock has more.
(BEGIN VIDEOTAPE)
LONA MCCASTLAIN, PROSECUTOR: This investigation is ongoing.
JARED CLARK, KTVH REPORTER: Prosecutor Lona McCastlain says it's not easy filing charges against city leaders, but it had to be done.
MCCASTLAIN: The prosecutor's office works hand in hand with law enforcement. And it is a very sad day, it's a very disturbing day, when we have to file charges on law enforcement.
UNIDENTIFIED MALE: None of these charges are true.
CLARK: On Monday, Police Chief Jay Campbell was arrested and charged with seven counts involving theft of services, burglary, and conspiracy to manufacture meth. Affidavits show Chief Campbell allegedly had city prisoners install a sidewalk by a swimming pool at his home. He also allegedly had prisoners refurbish his party barge. Another affidavit accuses the chief of being involved in a plan to manufacture meth to set up the arrest of a man.
City Mayor Thomas Privett was also arrested and charged with a misdemeanor for allegedly having inmates hang Christmas lights at his house and do yard work.
UNIDENTIFIED MALE: No, I don't have any comment.
CLARK: The chief's wife Kelly Campbell was arrested and charged with 13 counts related to sex and drugs. Affidavits allege Kelly Campbell brought liquor and marijuana in the prison. The affidavit also shows she allegedly paid hundreds to inmates to stay quiet about the events.
In addition, she's accused of having sex with inmates up to 20 times in different places, including the Lonoke Police Department and this Holiday Inn. Affidavits say inmates took pictures of some of the events. The prosecutor says she believes the accounts despite the fact the info is coming from prisoners.
LONA MCCASTLAIN, PROSECUTOR: We play what we are dealt. And our witnesses aren't always law-abiding, voting citizens. But you just have to deal with that.
CLARK: It's also alleged Jay and Kelly Campbell were involved in stealing and pawning $7,000 worth of jewelry from their neighbor's home. Jay Campbell is on administrative leave from the Lonoke Police Department.
Sean O'Nale is the interim chief and says morale at the department has taken a hit.
SEAN O'NALE, INTERIM CHIEF, LONOKE, ARK. POLICE DEPT.: There's a lot of things that are still unanswered. There's some concerns I'm sure that some officers have and some more people in the community have. But I don't expect this to be over with immediately.
CLARK: Neither does the county prosecutor, who says it's still possible more charges could be filed and more people could be involved in the alleged crimes.
(END VIDEOTAPE)
PHILLIPS: Well, a trip to the restroom sent a teenager flying. His outraged friends tell the tale.
(BEGIN VIDEO CLIP)
VICTOR REYES, BUS PASSENGER: All you heard was a big thump. And I looked out the window. And you see a big hole, you look back, you don't see him at all.
(END VIDEO CLIP)
PHILLIPS: A drive to remember coming up on LIVE FROM.
(COMMERCIAL BREAK)
PHILLIPS: That was certainly not how Jose Gonzales thought a trip to the restroom would turn out. A sharp turn leads to a turn of events that has everyone on a chartered bus talking.
Lucky for us they talked to Rebecca Hall of our affiliate WXXA in New York.
(BEGIN VIDEOTAPE)
DAWN YOUNG, BUS PASSENGER: He went to the bathroom. We heard a bang. And I think it was him that called his friend's name.
REYES: All you heard was a big thump. And I look out the window. You see a big hole, you look back, you don't see him at all. YOUNG: And we were screaming for the bus driving to stop the bus.
REBECCA HALL, WXXA CORRESPONDENT (voice-over): A nerve-wracking ride for the group of people on this PJ tour bus.
YOUNG: I didn't know what to think.
HALL: They came to Albany from the New York City area to lobby at the state capital for AIDS awareness. Not even out of Albany and on the way home.
LT. MICHAEL TIETZ, NEW YORK STATE POLICE: A 17-year-old male apparently was in the bathroom. And somehow fell out of the window of the bathroom onto the road.
YOUNG: I didn't expect him to be out the window.
HALL: Seventeen-year-old Jose Gonzales rushed to Albany Medical Center. His guardian says other passengers were concerned about that bathroom window from the get go.
REYES: Everybody said it. They said they thought the window was wobbly. They said that nobody trusted the window. Nobody wanted to place their hands on the window.
HALL: An issue police will be looking into. A bus ride these lobbyists won't soon forget.
YOUNG: I mean we are all kind of like shocked by this. Because I mean I've been here 42 years. And I ain't never seen anything like this in my life.
(END VIDEOTAPE)
PHILLIPS: Well, time to check in with CNN's Wolf Blitzer standing by in Washington to tell us what's coming up at the top of the hour in "THE SITUATION ROOM." Hey, Wolf.
WOLF BLITZER, CNN ANCHOR: Thanks very much Kyra.
We have got lots of news that we are following, including more on the cartoon outrage. Riots and violence escalating rhetoric. We are going to speak with the man accused of fanning the flames in the Middle East. Does he feel any remorse? I'll ask him some tough questions.
Also, presidents, politics and a funeral. Republicans cry foul today over comments made at the service for Coretta Scott King.
Also, Alabama church fires. Investigators say the fires are motivated by hate. The Feds are making the case a top priority.
And a big fat disappointment. A new study shows it doesn't matter what you eat when it comes to heart disease and cancer. So should you throw all those low cal foods in your fridge, should you throw them all out?
Kyra, what's the answer?
PHILLIPS: Heck no. Keep some. Throw out some. Right? It's all about balance.
BLITZER: That is correct. That is the correct answer.
And Kyra, you did an excellent job covering the funeral yesterday.
PHILLIPS: Oh, Wolf Blitzer. Oh, I have got a passion for civil rights and of course Coretta Scott King. Pretty amazing woman.
Thanks, Wolf.
BLITZER: Good work.
PHILLIPS: Well, the news keeps coming, and we keep bringing it to you. More LIVE FROM right after this.
(COMMERCIAL BREAK)
PHILLIPS: Well, that does it for us. The closing bell is about to ring.
Ali Velshi standing by to take it away from here. Hi Ali.
VELSHI: Kyra, good to see you. I'm sorry we don't get to chat a little more today.
PHILLIPS: We still have tomorrow.
VELSHI: We will do that. And I tell you as much as we are sorry about it, there's some folks over at the exchanges who are pretty happy about the way today has gone. We are seeing some very, very strong numbers on the Dow and the NASDAQ.
The Dow Jones right now is closing about 105 points higher to 10,855 on strong earnings news from Cisco and Pepsi and news that Pfizer might be selling off one of its units.
The NASDAQ closing 22 points higher to 2,267.
Let's go over to Wolf in "THE SITUATION ROOM."
BLITZER: Thank you very much, Ali.
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