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JonBenet Ramsey Murder Suspect Waives Extradition; Iran Issues Response on Nuclear Program

Aired August 22, 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: It's the top of the hour.
Tony Harris, what are you working on for us?

TONY HARRIS, CNN CORRESPONDENT: Hey, Kyra, just learning that prosecutors in Columbia, South Carolina, will seek the death penalty against Jerry Buck Inman -- there he is -- the Tennessee man charged in the death of 20-year-old Clemson University student Tiffany Marie Souers.

Souers, you may remember, was strangled with her bikini top. That happened earlier this summer, May 26, to be more precise about it. Inman is a registered sex offender in Tennessee and in Florida.

And this is likely to be a forensics-driven case, Kyra, when it goes to trial. Investigators working the case say they were able to match DNA evidence from the crime scene against samples in a national database. Inman is facing murder, rape, and kidnapping charges in this case. And now prosecutors are seeking the death penalty. Kyra, no trial date has been set just yet.

PHILLIPS: All right, Tony, appreciate it.

HARRIS: Sure thing.

PHILLIPS: Well, from Bangkok to Boulder, it's the strange itinerary of John Mark Karr, a man who claims he was with 6-year-old JonBenet Ramsey when she was killed almost 10 years ago.

Today, Karr waived extradition in a Los Angeles courtroom.

And our Dan Simon was there.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT: As expected, John Karr waived his extradition, which now means the Los Angeles phase of this case is over, and the focus is now squarely on Boulder, Colorado.

In terms of what happened up in the courtroom, I was sitting up there. I had a clean view of John Karr. He seemed to be somber, seemed to be taking these proceedings very seriously, seemed to have respect for the process.

At one point, his public defender asked that John Karr be able to put on civilian clothing. The judge denied that request. Sometimes, defense attorneys will ask that, so the jury pool who is watching may not be influenced by seeing a defendant wearing jail cloths.

Bottom line, the phase now in California over -- everybody is going to be watching Boulder, Colorado, now to see where this case now goes.

Dan Simon, CNN, Los Angeles.

(END VIDEOTAPE)

PHILLIPS: John and Patsy Ramsey lived for years under suspicion, both from authorities and the media. Lin Wood is a lawyer who has represented the Ramseys since 1999. He's still the family attorney and, last night, spoke to CNN's Larry King, giving his first televised interview since John Mark Karr's arrest.

(BEGIN VIDEO CLIP, "LARRY KING LIVE")

LIN WOOD, ATTORNEY FOR JOHN RAMSEY: John Ramsey wants what Mary Lacy, the district attorney in Boulder, wants, what I think many millions of Americans want. He wants the person who brutally murdered his daughter to be brought to justice.

He does not know whether Mr. Karr is guilty of that crime. He does not know the evidence upon which the district attorney is relying on making the arrest of Mr. Karr. I think his reaction can be summed up as -- as being one of -- of hope.

John wants the public to be patient, not to rush to judgment, and not to engage in the type of speculation and rumor and gossip and hearsay against this man that, unfortunately, people engaged in with respect to him and his wife, and, tragically, even, at times, his son.

John Ramsey and I both have said that we give this man a presumption of innocence. He's entitled to it. Sadly, for too many years, it wasn't given to my clients. It wasn't given to John Ramsey.

But what I saw on the cameras with respect to Mr. Karr certainly would have been a tragedy of justice had it occurred in the United States of America. We don't parade people in front of cameras. And -- and I think it's sad about what happened to this man, even though -- even though he is, in some fashion, apparently linked, through some information, to the JonBenet Ramsey case. It still should not be done, even to him.

The goal here has got to -- to be to remain focused on finding the killer of this child. We know it was not John or Patsy Ramsey or their son, Burke. We know that it was an intruder. If not Mr. Karr, it doesn't mean it was the Ramseys. It simply means that the investigation and the search for this brutal child killer must continue.

(END VIDEO CLIP)

PHILLIPS: Well, tonight, the Ramsey family and attorneys will join Larry King, 9:00 p.m. Eastern, only on CNN. A smell of rotten apples, then horrendous suffering and death, bone-chilling testimony in the trial, number two, of Saddam Hussein, accused of unleashing poison gas on tens of thousands of Kurdish civilians in the 1980s.

Our Michael Holmes is in Baghdad.

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN INTERNATIONAL CORRESPONDENT: Day two of the Anfal trial, the former Iraqi president and six co-defendants in the dock, and first testimony in this trial -- two witnesses giving evidence, the first, a chilling account of the day in 1987 that bombs fell from the sky, and, he says, chemicals came from those bombs.

ALI MUSTAFA HAMA, WITNESS (through translator): Then I smelled a strange smell, like rotten apple or garlic. A few minutes later, the people felt their eyes burning, and started vomiting. Then, darkness fell.

HOLMES: This attack is believed to be the first instance of the Iraqi government using chemical weapons against their own population. According to a Human Rights Watch report on Anfal, warplanes bombed the villages, up to 3,000 of them, and, then, troops moved in and destroyed them, moving out the survivors, many of whom were never seen again.

The second witness was a 41-year-old woman. She took the stand and described being held in a detention center for nine days, where her brother and niece disappeared. She said, during those nine days, it was like the apocalypse. Even Hitler, she said, didn't do this. She then broke down into tears.

Defendants, on their part, insisted that Iraq's military was, in fact, attacking Iranian troops and Kurdish rebels, when it launched what is now known as the Anfal campaign.

SABER ABDEL AZIZ, FORMER MILITARY INTELLIGENCE CHIEF (through translator): The Iranians and Kurds were fighting hand in hand against Iraqi forces.

HOLMES: During cross-examination, defense counsel asked the witness how he knew that the aircraft were Iraqi, and prompted the witness to say that he had indeed helped shelter the Kurdish rebels in the village.

Saddam himself challenged the witness, accusing them of being coached in their testimony -- dramatic first testimony from these two witnesses. But this could be a long trial. Officials say there could be as many as 100 more yet to give their evidence.

Michael Holmes, CNN, Baghdad.

(END VIDEOTAPE)

PHILLIPS: Iran is ready to talk, but is it ready to act? The U.N. has demanded Iran pull the plug on its nuclear activities by the end of this month. Today, Tehran responded.

Let's get straight to CNN's Aneesh Raman the only U.S. television network reporter in the Iranian capital -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Kyra, good afternoon.

Iran was faced with a simple question today: Would the country suspend its nuclear program? But it gave no simple answer; instead, a lengthy written reply to countries that had backed an incentives deal to get Iran to stop its nuclear program, ahead of a U.N. deadline to do so by the end of the month.

Within that document, we understand, Iran has said it is ready with a new formula to solve this crisis. It, as well, wants to start serious negotiations as early as tomorrow.

Now, Kyra, of course, the countries, including the U.S., that backed that deal will likely say that Iran has had time to have serious negotiations before. There seems nothing in this document that shows Iran is prepared to suspend its nuclear program, ahead of that U.N. deadline -- instead, Iran eager to make it seem that it's anxious for more dialogue, for more time to negotiate. But Iran, from the start, has said there can be no precondition to talks that require it to suspend that program.

So, where do we go from here? Today was a self-made deadline. The U.N. deadline is at the end of the month. Between now and then, we expect a press conference, a rare one, from Iran's president. He could change things a little, depending on what he says. But, again, it seems Iran remains defiant on its nuclear program. And the U.N., then, seems remain -- to essentially take action some time in September -- Kyra.

PHILLIPS: And we will be following that news conference. We will talk to you then, Aneesh. Appreciate it so much.

We have the first White House reaction now to the Iranian response today. The president just arrived in Minnesota, where he will campaign for Republican candidates.

CNN White House correspondent Suzanne Malveaux is traveling with him.

Suzanne, what is it?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, the White House, of course, is standing firm, Kyra, on its statement -- Dana Perino coming off of Air Force One, aboard Air Force One, in a gaggle to reporters, saying that the administration, of course, has received the statement from Iran, but the president, she said, has not specifically gone over it.

They said it's not up to them to parse it. It will be up to the permanent five members of the U.N. Security Council, plus Germany, to take a look at this in the days to come. But she made it clear here, saying that we are aware of the rhetoric about a nuclear program. The president made very clear to everyone yesterday at the press conference that he thinks that it's a mistake and dangerous for the region and the whole world -- that is, Iran's rejection of suspending its enrichment, uranium-enrichment program -- the United States, the White House, again saying that these talks are conditional, that it must suspend that program, before Iran, the United States and the other members of the P5+1, sit down and actually talk about this -- and, so, the Bush administration very much, very clear, pushing forward for those tough economic sanctions.

And, of course, Kyra, it's far from certain whether or not they are going to be able to pull this one off, whether Russia and China are going to get on board with tough economic sanctions.

And that is why you see the Bush administration now essentially trying to buy some time, say, look, August 31, let's wait for an official response. It is clear that Iran is not going to cooperate. But the United States does not want to paint this as some sort of battle between the Bush administration and Iran. They are going to wait for the whole international body to get together for one unified response to the regime -- Kyra.

PHILLIPS: All right, Suzanne Malveaux, thanks so much.

Well, 42 percent job approval rating, no president would covet, unless they have been even lower just weeks ago. A new CNN poll finds the president's numbers two points higher than earlier this month, and five points higher than June. His disapproval rating now stands at 57 percent. Our poll was conducted by Opinion Research Corporation.

All allegations denied -- British terror suspects get a hearing in London. And we will hear exactly what happened -- when LIVE FROM continues.

(COMMERCIAL BREAK)

PHILLIPS: Sirens blared, streets were cleared, and police were out in force, all because of the first court appearances of the first suspects to face charges in that alleged airline terror plot in Britain. A judge in London ordered eight suspects who face the most serious charges held until a hearing next month. Three others who are charged with lesser offenses were ordered held until another court appearance next week. Eleven others are still being held without charge.

And you can join us tonight for a special CNN PRESENTS, "In the Footsteps of Bin Laden." Our team actually traveled to four continents and 10 countries to discover the real Osama bin Laden. You can catch that tonight at 9:00 Eastern, only on CNN.

Well, Italy in the lead. Italian Prime Minister Romano Prodi is offering to command that new and broader force of U.N. peacekeepers in southern Lebanon. The United Nations wants a multinational force of 15,000 troops to keep the peace between Israel and Hezbollah.

And we still don't know who kidnapped two FOX journalists in Gaza, or why, or where they are now. We will move on to that video in a second. It has been just a week since anyone has seen or heard from reporter Steve Centanni and photographer Olaf Wiig. Their families have pleaded on TV for their release, but, so far, their captors haven't been seen or heard from either. The Palestinian prime minister has condemned the kidnapping and promised to try and help.

Well, coming up: A teacher ignites outrage.

(BEGIN VIDEO CLIP)

PATRICK BISSIG, PARENT: I think I'm asking the same question that many other parents are asking, that I know the school administrators and students are asking, and faculty. You know, what -- what was this guy thinking?

(END VIDEO CLIP)

PHILLIPS: What a teacher set on fire and who got burned -- civic lesson 101 backlash -- when LIVE FROM returns.

(COMMERCIAL BREAK)

PHILLIPS: Well, middle school and Middle America -- a social studies teacher tries to spark a debate with a couple of flags and debatable judgment.

Here's reporter Tim Seymour of CNN affiliate WHAS in Louisville, Kentucky.

(BEGIN VIDEOTAPE)

TIM SEYMOUR, WHAS REPORTER (voice-over): It was a fiery demonstration in two Friday classes at Stuart Middle School in Louisville.

KORTNEY LOWE, SEVENTH GRADER: He would throw it in the garbage can real quick, and then catch the stick and stuff on fire.

SEYMOUR (on camera): What did you think about that?

LOWE: I thought it was crazy.

SEYMOUR (voice-over): A seventh-grade teacher, apparently trying to spark his social studies students into writing a passionate paper on free speech, set fire to two U.S. flags.

MARY RITTER, PARENT: Fire is not a good idea, but, you know, if it gets them fired up -- you know, it takes a lot to get kids fired up.

SEYMOUR: This parent says his daughter was there.

PATRICK BISSIG, PARENT: Here is a teacher, someone that she's taught to respect, and here is the flag, something that she's also taught to respect, and here is this teacher who is burning and destroying something that she respects. It really confused her. SEYMOUR: So, like some others, he when the to the school today looking for an explanation.

BISSIG: I'll be honest. I -- I think I'm asking the same question that many other parents are asking, that I know the school administrators and students are asking, and faculty. You know, what -- what was this guy thinking?

SEYMOUR: The district says the teacher, Dan Holden, has been moved out of the school into a non-teaching position, while administrators investigate.

LAUREN ROBERTS, JEFFERSON COUNTY, KENTUCKY, PUBLIC SCHOOLS: The issue is the possible endangerment of children, by having an open flame in the classroom -- that is definitely a safety issue -- and, then, also, the issue of the actual burning of a flag. And the symbolism of that is highly offensive to many people.

SEYMOUR: Tim Seymour, WHAS 11 News.

(END VIDEOTAPE)

PHILLIPS: Dick Grasso was fired from his job as CEO of the New York Stock Exchange three years ago over a compensation package that approached $200 million. Every since then, he has been silent about the scandal that ended a brilliant 35-year career on Wall Street, until now.

Susan Lisovicz interviewed him for "PAULA ZAHN NOW."

Susan, what did he have to say for himself?

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Kyra.

He said an awful lot. Dick Grasso has spent the last three years fighting this case. He admits his compensation was huge, but he says it's a mistake to compare him to the executives blamed in the scandals of Enron, WorldCom, and Tyco.

(BEGIN VIDEO CLIP)

RICHARD GRASSO, FORMER NEW YORK STOCK EXCHANGE CHAIRMAN: If you can say to me, Dick, the crime you committed was cashing the check, then, let's stop the whole American capitalist system, because, when the smartest, most admired, most successful people in the world, who are your bosses, say, we think are worth X., then, you have to take that as fact.

(END VIDEO CLIP)

LISOVICZ: Among the many luminaries who sat on the board and signed off on Grasso's compensation were Hank Paulson, before he became treasury secretary, former Secretary of State Madeleine Albright, Viacom's former number two, Mel Karmazin, and former Time Warner CEO Gerald Levin -- Kyra.

PHILLIPS: We haven't heard from Grasso in three years. Besides, you know, your intelligence and charm to get him to talk, Susan...

(LAUGHTER)

PHILLIPS: ... why is he talking now?

LISOVICZ: Because we are on the eve of a pivotal court battle between Dick Grasso and his former ally, the New York state attorney general, Eliot Spitzer, who is now running for governor. So, it's a sensitive time for Mr. Spitzer. It comes just a few weeks before the November elections.

The trial is set mid-October. And Dick Grasso wants to clear his name. He really could have settled at this point. But he says it's a matter of principle, and he plans on an act two. And he is fighting it. He has spent -- spent the last three years -- rather than move on with his life, he is fighting this case.

(LAUGHTER)

PHILLIPS: All right. Susan, what's...

LISOVICZ: And what you're looking at...

PHILLIPS: Yes.

(LAUGHTER)

PHILLIPS: What's the deal? Here we are, talking about the seriousness of this case and this guy's life, and the two of you going for a Hail Mary on there the roller coaster.

LISOVICZ: The Hail Mary is that, and among the other prayers I said.

(LAUGHTER)

LISOVICZ: You know, it was interesting. There were only two stipulations that Dick Grasso had to do this interview.

One of them was to do the interview in Jackson Heights, where he was raised. It's a working-class neighborhood in Queens, New York. He worked his way up, to become the first chairman of the NYSE to do that.

But the other one was to ride the Cyclone, which you see now...

(LAUGHTER)

LISOVICZ: ... that wooden, rickety, stomach-churning Cyclone, five times in a row. That was a personal dare.

(LAUGHTER)

LISOVICZ: And I did it. He sat by me. And, as you can see...

(LAUGHTER) LISOVICZ: ... the cameras rolled.

PHILLIPS: He's always going for that adrenaline rush, isn't he?

LISOVICZ: Yes. I mean, you know, it's actually a good metaphor. I really didn't think of it at the time.

Again, it was a -- it was a personal dare. Coney Island has always been a place of retreat for Dick Grasso. But it really does sort of conjure up the -- the highs that he has had in his life, leading the most powerful stock exchange in the world, and some of those stomach-churning lows. And he's trying to dig out from them right now. And he -- he faces a very important court battle. I mean, he could -- he has more to lose -- let me put it this way -- than Eliot Spitzer.

PHILLIPS: Well, you know, his compensation was jaw-dropping, even on Wall Street, you know? So, what do you think? Is this an open-and-shut case?

LISOVICZ: Well, you know, you might think so, because Eliot Spitzer, if you remember, when he filed suit two years ago, he said, you know, this is excessive. This is unreasonable for a not-for- profit institution.

I talked to corporate governance expert Jack Coffee at Columbia University. He runs their department there. And he said, you know, there's not a whole heck of a lot of law written on what is excessive for not-for-profits. And, beyond that, it's not like the NYSE is your average not-for-profit. This is a very -- this is a -- an institution that generates hundreds of millions of dollars in revenue.

Now, the other point is that there were a lot of people who signed off on Dick Grasso's pay. So, it's -- it's going to be decided by a judge. This judge is fairly familiar with this case. He decided one of the few cases that could really be linked to it, a case involving a college president, a university president, I should say.

It was not favorable. It was not a favorable ruling for that university president, who was ousted for what was considered excessive pay and perks.

PHILLIPS: All right. Your exclusive interview on "PAULA ZAHN NOW" tonight, 8:00 p.m. Eastern.

Meanwhile, what's happening on Wall Street, Susan?

LISOVICZ: Not a whole heck of a lot since we last spoke, Kyra.

(LAUGHTER)

LISOVICZ: These are the dog days.

You know, we had a terrific week last week, five straight wins for the three major averages, one of the best weeks of the year. But the average is really close to the flatline right now. The Dow is down two points. The Nasdaq is up two points, light volume.

And we will give you a full wrap-up of this trading day when we meet in the next 30 minutes -- Kyra, back to you.

PHILLIPS: Sounds good. Thanks, Susan.

LISOVICZ: You're welcome.

PHILLIPS: Well, he has got a one-way ticket to Boulder, but what else lies in store for John Mark Karr? We're tracking all the latest developments in a case that just continues to defy solving.

(COMMERCIAL BREAK)

PHILLIPS: John Mark Karr agrees to be sent to Boulder, Colorado, where he's expected to face charges in the 1996 murder of JonBenet Ramsey. Apart from his own admissions about being at the scene of the crime, it's fair from a slam -- it's far, rather, from a slam-dunk for prosecutors.

I talked about it last hour with Nancy Grace of CNN Headline News and Court TV.

(BEGIN VIDEO CLIP)

NANCY GRACE, HOST, "NANCY GRACE": In order to believe Karr's statement, you have to believe that he stayed in the home and hid while the Ramseys were away, that he sat in the bedroom, and waited, hidden, while Patsy Ramsey came in and read a bed -- a good night story, that then he got the girl to come willingly downstairs, fed her pineapple, went into a little-known spot in the home, sexually tortured her, and then killed her, and the girl never cried out, then sat around -- think about this -- sat around, lounging in the home, writing a copious ransom note. Ridiculous.

PHILLIPS: So, you're not buying any of that?

GRACE: I'm not buying one word of it. And I'm not afraid to go out on a limb. It's common sense.

However, I cannot turn away from the hard evidence of this handwriting sample.

PHILLIPS: Well...

GRACE: Can't do it.

PHILLIPS: Interesting.

All right, what about the -- his background? We're learning so much more about his bizarre background. The latest thing to come out today through ABC News is that his mother tried to kill him when he was a baby, and that his brother came to his rescue, and that she later was put into a -- a mental institution.

I mean, could it be that this guy is just, you know, crazed, from the time that he was a child, had all these issues -- and we're learning more about his family -- and -- and that, you know, he just could be obsessed with -- with these cases, or with this child, or with the death of this child, because of everything that happened to him growing up?

GRACE: Friend, you and I see the world through two different sets of glasses. Everything I hear, I -- I look at it as to how it will come out in court.

I'm sorry the man may have been as a victim as a child, as an infant. In my mind, he probably doesn't even remember it, if the story is even true.

What I care about is, how does it relate to the death of JonBenet Ramsey? Do I care? No. Unless he's going to mount an insanity defense, then, I would be remotely interested in it.

(END VIDEO CLIP)

PHILLIPS: Now, remember, you can see the ever-so-sassy Nancy Grace in the afternoons on Court TV and tonight, at 8:00 p.m. Eastern, on CNN Headline News.

Tonight, the Ramsey family and attorneys will join Larry King tonight, 9:00 p.m. Eastern, only on CNN.

Karr's arrest in Bangkok draws more attention to Thailand's thriving sex trade. We did some digging. And you might be shocked at what we found.

(BEGIN VIDEOTAPE)

UNIDENTIFIED CORRESPONDENT (voice-over): The sex trade in Thailand is a giant industry, generating an estimated $4 billion a year in revenue.

Several million people earn a living, either directly or indirectly, in the trade. Tens of thousands of the victims are children, some as young as 6 years old, many who say they were sold or forced by families into prostitution, and many who suffered physical violence or torture -- one international symbol of the Thai sex trade, Bangkok's notorious Patpong district of strip joints, massage parlors, and bars.

The U.S. Justice Department says that two to 14 percent of the gross domestic product in Thailand, Indonesia, Malaysia and the Philippines derives from sex tourism. The department says typical child sex tourists are males from Western Europe and North America.

Prostitution has long been illegal in Thailand, but the government has also been known for its lax attitudes on the issue. As an example, the U.S. Justice Department says that police corruption is common, and that police have been known to guard brothels and procure children for prostitution.

The International Center for Missing and Exploited Children says Thailand is one of 95 countries with no child pornography legislation at all.

(END VIDEOTAPE)

PHILLIPS: Well, prepare for trial on a first degree murder charge. That was the message a judge gave Kevin Ray Underwood today. He's the Oklahoma man accused of strangling a 10-year-old girl who lived in his apartment complex. Jamie Rose Bolin was found nearly decapitated in a bathtub of Underwood's apartment. After his arrest, his online writings came to light, blogs about cannibalism and feeling isolated.

Well, a new twist in the case of a recaptured inmate accused of killing two people while on the run in Virginia. The brother of Charles Morva has also been arrested. Michael Morva is charged with conspiracy in the escape. Here's what he just told reporters after a court appearance.

(BEGIN VIDEO CLIP)

MICHAEL MORVA, BROTHER OF MURDER SUSPECT: My brother is the killer, all right? I didn't do anything. I wasn't a part of it.

QUESTION: You didn't help plan it?

MORVA: No, I did not help plan it. I didn't do anything wrong. All right? The police came and knocked on my door at 3:00 in the morning when I was asleep and woke me up and told me what had happened. I had nothing to do with this. This is wrong. This is wrong. You know, this is wrong. Why am I here?

(END VIDEO CLIP)

PHILLIPS: Corporal Eric Sutphin was the deputy killed near the Virginia Tech campus yesterday. His patrol car, now a makeshift memorial. Investigators say that Charles Morva will be charged in that killing, and he too is expected in court today.

Also in Georgia, a major backyard drug bust. Feds stormed a house in the suburbs of Atlanta called Buford seizing almost 190 pounds of crystal meth buried in trash cans in the backyard. They are calling it one of the largest meth busts on the East Coast. Drug enforcement agents also seized 90 pounds of cocaine and arrested four men.

Well, it doesn't have the ring of Friday the 13th, but did you greet Tuesday the 22nd with a sense of impending doom? Some people did because of this man, Iran's president Mahmoud Ahmadinejad. Well, his country delivered its formal, written response to U.N. nuclear demands, but some people were expecting more than words.

Let's find out why from international security analyst Jim Walsh. All right, Jim. I have a feeling you are not buying into any of this August 22nd stuff.

JIM WALSH, INTL. SECURITY ANALYST: Not one word of it, Kyra. Right you are. PHILLIPS: OK, but all the Internet Web sites, they've been full of speculation. Ahmadinejad mentions August 22nd, you know, it is a date, right? Supposed to be a day of reckoning for Shiites, the return of the 12th imam. I mean, it seems like -- no, you're not going for it?

WALSH: No, no. These dates happens, let's see, every day. Doomsday scenarios are as old as the American republic and they exist in every country. And they all have one thing in common. They all turn out to be false. And despite that, people seem irresistibly drawn to them, to believe that because it turns out to be a particular day, certain things are going to happen.

Listen. First of all, Ahmadinejad is not the head of Iran. The head of Iran is the supreme ruler, Khamenei. He the one who calls the shots. He's been around for over a decade. We have had these dates before. Nothing has ever happened.

You had report from Tehran earlier today suggesting that life was normal on the streets of Tehran. So I think we're going to find out that this story is like all the ones before it. The day will end and nothing much will have happened.

PHILLIPS: But -- and I can see what you are saying about the date, but at the same time, I mean, this is a country that censors a lot of the news so Iranians may say how they feel, may not really say how they feel. So you sometimes don't get as sense for, OK, how serious does everybody take this president, someone who says that Israel should be wiped off the face of the earth, someone who says the Holocaust never happened.

I realize he's the president, he's not the supreme ruler, but he's that wildcard. He's the one the president talks about and so many other critics talk about when they mention the axis of evil.

WALSH: Absolutely right, Kyra, and that's why I think a lot of that talk is sort of misplaced. We need to pay attention to how the country is organized. And the key player in Iran is the supreme leader, he's the one we should keep our eye on.

But so Ahmadinejad is president and he's worth watching, as well. But if you -- you know, let's say it's true that on the street Iranians might be reluctant to talk about things. Normally not something like this, normally something relating to politics.

But judge by behavior. Were the shops closed? Were people buying up, hoarding, you know, milk and bread getting ready for the return of the imam? Were the street empty in Tehran? No. None of that was true. It was just another day in the Islamic public.

PHILLIPS: All right, all this back and forth about the U.N. Security Council trying to strike a deal with Iran about the nuke facilities, are they making nuclear bombs, or are they just trying to produce energy? It is a constant back and forth. How many times do we talk about this subject, and how many times do we talk about, OK, is there going to be some type of resolution? When it comes down to it and the U.S. or the U.N. Security Council says all right, we are slapping on sanctions to Iran, do sanctions really affect Iran to the point where they would back off and say all right, that's it. You can come inspect the nuke facilities, we're not going to make bombs?

WALSH: Well, first of all, Kyra, I hope this continues to be talked about on and on, because this is my chance to talk to you every once in awhile, and I like that. But will sanctions work, that's the more important question.

The particular sanctions, no, because they are modest in nature. It's restricting travel of particular people. It's restricting exports of missile parts or things that might be used in a civilian nuclear program. They are narrowly drawn. They are unlikely in and of themselves to have an impact.

But the talk about political crisis and the talk about sanctions has had a broader financial impact on Iran. Even before today, going back a month ago or two months ago, businesses -- foreign businesses were pulling back. They weren't investing. They weren't closing the deals in Iran because they were concerned about instability and the political confrontation.

So it's not the sanctions themselves which are rather narrow, but it will have an impact on the economy because foreigners will not invest in Iran as they might have otherwise. And Iran is desperate for foreign investment.

It has a lot of money because of the high price of oil, but it doesn't have the capital infrastructure. It can't produce enough of its own gasoline even though it's swimming in oil. It's needs to have foreigners come in and build plants. That's not going to happen if the political crisis continues.

PHILLIPS: Jim Walsh, always great talking to you.

WALSH: Great talking to you.

PHILLIPS: Straight ahead, pounds lost, dreams fulfilled.

(END VIDEO CLIP)

UNIDENTIFIED MALE: I lost six-and-a-half inches in six weeks, and went to 229 in three weeks, because I was mad.

(END VIDEO CLIP)

PHILLIPS: He wanted to be a soldier but he had a battle to fight before he could even enlist. Hear how he did it straight ahead on LIVE FROM.

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PHILLIPS: Resting and recuperating. Former President Ford is said to be doing fine after getting a pacemaker at the Mayo Clinic. He was admitted last week and probably will be there a few more days. His wife and children are with him. Gerald Ford is 93 years old.

Hundreds, maybe thousands, of marine reservists are heading back to Iraq and Afghanistan. The Corps announced an involuntarily call-up today, as many as 2,500 troops at any one time to fill shortages and manpower. The calls will go out over the next several months to marines who left active duty, but still have time remaining on their eight-year obligations.

Now a story of losing to win. A Nebraska man starts basic training today at Fort Benning, Georgia. But he's not nearly the man he used to be, and he couldn't be happier. Reporter Owen Lei of CNN affiliate KETV tells us his story.

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OWEN LEI, KETV REPORTER (voice-over): On Tuesday, 21-year-old Beorn Thrasher fulfills his lifelong dream.

BEORN TRASHER, ARMY RECRUIT: Fort Benning infantry...

LEI: He's heading to army boot camp. But just one year ago, he couldn't run like this. Thrasher weighed 400 pounds. This was his jacket, these were his jeans.

THRASHER: And then I went to the store to buy some 58s, and they didn't even have any. And this was the big and tall store, you know?

LEI: Doctors said he was borderline diabetic, and he knew he couldn't enlist at that weight. So in one year, he lost 170 pounds.

THRASHER: And they took my blood pressure and everything, and everything was perfect. And that was just -- it was so cool, you know?

LEI: He had some big habits to give up, like his regular order at Taco Bell.

THRASHER: Six chalupas, three hardshells, three soft shells, I think two or three grilled stuffed burritos, two -- I think it was three quesadillas. And then pop. I think that's about -- I think something to that effect. It was about $33.

LEI (on camera): Thrasher's diet was simple. First he cut out soft drinks and lost some weight. Next, he cut portions and lost some more weight. And finally, he cut fast food all together, and switched to healthier foods.

(voice-over): And then he began to exercise. He had lost 150 pounds when he stopped by the West Ohama recruiting office. Staff Sergeant Brad Russell told him he was still 20 pounds too heavy.

STAFF SGT. BRAD RUSSELL, U.S. ARMY RECRUITER: We usually tell them, you know, hey, you know, work on it, come back in a couple weeks, we'll see where you're at. Probably nine times out of ten, we never see them again.

THRASHER: And I went and I lost six-a-half inches in three weeks, and went to 229 in three weeks. Because I was mad.

RUSSELL: And you see how it's broken down over here?

LEI: And Russell says Thrasher is exactly what the army wants.

RUSSELL: As long as he keeps that drive and that determination, he can make it all the way up to the top.

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PHILLIPS: Well, just in case you're curious about the physical requirements to join the army, here's an example that we calculated using tables provided by the U.S. Army Web site. For a man between the ages of 21 and 27 who stands six feet tall, the maximum allowable weight is 203 pounds. The maximum allowable body fat is 26 percent.

Well, it's alarmingly common and often unreported. A crime against the elderly. Millions of senior citizens abused by their own families. One woman's ordeal, straight ahead on LIVE FROM.

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PHILLIPS: Well, if it were a brand name, Brooke Astor would rank up there with Gucci and Bentley and San Tropez. High society personified. And lately, though, at 104, she's been one of the higher profile alleged victims of a scandalous crime: elder abuse. Most victims suffer far from the public eye, in silence, seclusion and bitter shame.

Here's a look at it by CNN's Alina Cho.

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ALINA CHO, CNN CORRESPONDENT (voice-over): For two long years, this woman -- we'll call her Betty -- says she was a prisoner in her own home, held hostage by the most unlikely of abusers.

"BETTY," VICTIM OF ELDER ABUSE: When she'd come down, she'd get mad, she'd slap me. "I'm sick of this," she said. "Why don't you just die? Get it over with."

CHO: Betty, whose real identity we concealed for legal reasons, was 60 at the time. She was in a car accident and bedridden. Unable to care for herself, she relied on her daughter, but instead of watching over her, Betty says her daughter stole her retirement money, beat her, even left her in soiled bed sheets for days.

"BETTY": There was nothing there except my box spring and mattress. My clothes, my jewelry, everything was gone, and I weighed probably about 87 pounds by then.

CHO: Betty is not alone. As many as five million elderly people in the United States are victims of abuse. According to the National Center on Elder Abuse, two-thirds of elderly abuse cases involve family members.

Betty says she never imagined her own daughter could do this.

"BETTY": I loved her very much, but she was always money hungry.

CHO: CNN contacted Betty's daughter, who says the allegation of abuse are false, and that she wants nothing to do her mother. Betty says she was so miserable she tried to kill herself. After that, she says, her daughter kicked her out, but she told no one about the way she says her daughter mistreated her.

"BETTY": I was scared. I wouldn't tell them. I was ashamed.

CHO: Enter Ricker Hamilton, a social worker in Portland, Maine, who gave an impromptu speech on elder abuse at a local YMCA dinner. Betty was in the audience.

"BETTY": Every word that came out of his mouth was mine.

RICKER HAMILTON, ADULT PROTECTIVE SERVICES: She reached a point in her life that she wanted to die. She couldn't take living in the bed in the basement any longer. She couldn't take that a loved one was doing this to her.

CHO: Most abused seniors never speak up. Eighty-four percent of elder abuse cases are never reported.

Detective Cheryl Homes is with the Portland Police Department investigating elder abuse. The majority of her cases involve theft.

DET. CHERYL HOLMES, PORTLAND POLICE: This is like taking candy from babies. When you get older, you get confused, and that's what some of these suspects play on, the fact that, OK, so they get $100 laying on the table. I'm not going to take $100; I'm going to take $40, and let them wonder.

I wish there was more elders rescued, as the animals are rescued and as children, you know, rescued. They lived their life, and they're vulnerable and they deserve to be cared for and kept safe.

CHO: Betty ultimately sued her daughter for all the money she says was stolen from her, $55,000, her entire retirement nest egg. After legal fees she recovered about half of it, and now relies on Social Security. But she is living on her own. At 70, Betty walks eight miles as day, has a boyfriend, and urges other seniors to take control of their golden years.

"BETTY": You can love your children. You can say to yourself, my children would never be ever be ever do this. But my advice to every person that reaches the age of 50, make out a will. Put somebody in charge of your money that you can trust.

CHO: Alina Cho, CNN, Portland, Maine.

(END VIDEOTAPE) PHILLIPS: So how do you spot elder abuse? Alina talked to several experts who said there are obvious signs: cuts, bruises, even something as simple as broken eyeglasses. Social workers say that one of the biggest indicators of elder abuse is isolation. So if suddenly you don't see an elderly person you know at the grocery store or at church, if he or she suddenly disappears, that may be a sign something is wrong. In those cases, don't hesitate to pick up the phone and report your suspicions. And you can see more of Alina's reports weekday morning. Join Soledad and Miles on "AMERICAN MORNING" at 6:00 a.m. Eastern.

Time to check in with Wolf. He's standing by in "THE SIT ROOM." What's going on at the top of the hour, Wolf?

WOLF BLITZER, CNN ANCHOR: Thanks, Kyra. Happening now, involuntary recall. More on the Pentagon thing. It might force thousands of U.S. marines back into service and potentially back to war.

Plus nuclear reaction. Iran is willing to talk about its nuclear program, but also sounds defiant. And when it comes to the war in Iraq, he's been one of the president's biggest supporters, but what's going on right now? We're going to tell you what Senator John McCain is saying.

Also, terror politics. Republicans and Democrats capitalizing on security and fear. Find out who is benefiting in the polls. All that, plus my live interview with Joe Lieberman. All that coming up right here in "THE SITUATION ROOM" -- Kyra?

PHILLIPS: All right Wolf, thanks. Well the closing bell and a wrap of action -- all the action rather on Wall Street, straight ahead. Susan Lisovicz standing by.

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PHILLIPS: Well are gas prices really on a downhill slide? "USA TODAY" says that prices likely have peaked for $3 plus for self-serve regular and probably will fall in the fall. But analysts warn that forecasts could change in a heartbeat if a storm like Katrina, for example, disrupts production or something else happens to spooks the markets. Now the government says the average price for a gallon of regular unleaded is now $2.92 the lowest in two months.

Mission accomplished, well, almost. Katrina survivor Rockey Vaccarella with a duplicate of a FEMA trailer in toe is pulling into the nation's Capitol today. Now he hauled it from southern Louisiana all the way to Washington, drawing plenty of attention along the way about the slow pace of storm recovery. Vaccarella still has one thing on his to-do list, persuade President Bush to sit down in the trailer for an old fashioned dinner. Unfortunately for Vaccarella, well the president left Washington earlier today for Minnesota. My guess is he will wait.

Well it's not marked on the calendar, but today is a national holiday for million of video gamers, Madden Day. Susan Lisovicz live from the New York Stock Exchange to explain. All right, were you one of those gamers as a kid, Susan?

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