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CNN Live Today

Bush Takes Security Plans to Summit with Pacific Rim Leaders; Suicide Bomber Kills 5 Policemen in Baghdad; Congress Hopes to Finish Work on $388 Billion Spending Bill

Aired November 19, 2004 - 10:00   ET

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

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


FREDRICKA WHITFIELD, ANCHOR: All right. Got a lot ahead, beginning with these top stories now in the news.
President Bush is now on a 10-hour flight to Santiago, Chile for the weekend summit of Pacific Rim leaders. The Asia Pacific Economic Cooperation is focusing on terrorism, weapons proliferation, North Korea's suspected nuclear arms program and world trade. We have a full report on the president's agenda coming up in one minute.

Security is tight in Santiago, where protesters have been out in force this week, protesting President Bush's arrival and capitalism in general. Water cannons and tear gas have already been used on some demonstrators who began throwing stones at security forces.

And Federal Reserve Chief Alan Greenspan warned bloated trade deficits could pose a threat to the U.S. economy. The deficit swelled to an all-time high of $166 billion in the second quarter of this year. The sliding value of the dollar has some economists worried that foreign investors could start to unload U.S. stocks and bonds.

Violence in Baghdad. A car bomb exploded this morning near an Iraqi police convoy. Several people are reported wounded. And a firefight erupted outside a mosque, after several people shot at members of the Iraqi National Guard. Our reporter is there and we'll hear from him in a few minutes.

WHITFIELD: Hello, everyone. I'm Fredricka Whitfield in for Daryn Kagan this morning.

RICK SANCHEZ, CNN CO-ANCHOR: And I'm Rick Sanchez.

President Bush is en route to Santiago, Chile today for a weekend summit that's going to focus on trade, terrorism and some nuclear concerns.

And we're going to start this hour with the Asia Pacific Economic Summit, APEC for short. While the bottom line is money, a large part of the equation here is going to be about security concerns.

CNN White House correspondent Suzanne Malveaux is at her post with a preview of what the president hopes to do, and some of the people he's going to be talking to, as well.

Suzanne, over to you. SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Rick, advisers say some of the president's closest advisers say of course, one of the greatest challenges that the president is going to have in terms of foreign policy in his second term is dealing with nuclear ambitions of Iran and North Korea.

Now, President Bush leaving Fort Hood, Texas, this morning. He's on his way to the APEC summit in Chile. And it's expected that, of course, he's going to talk about trade agreements, as well as fighting terror. But the top of his agenda is to rally support to get North Korea to give up its nuclear ambitions and again engage in talks. Those six-party talks involving other countries: Russia, China, Japan and South Korea, that essentially fell art in September.

That is because North Korea's Kim Jong Il said that he wanted one-on-one dialogue with the United States. But that was a prerequisite to giving up some of his nuclear ambitions. U.S. officials say that essentially North Korea has been waiting to see the outcome of U.S. elections, to see if the White House was going to change its policy on that very issue. The Bush administration making it very clear that they are not changing their policy. Not engaging in North Korea in one-on-dialogue, but rather six-party talks.

But that is why, Rick, it is so important that the president in this first perhaps first diplomatic test, that he can actually convince some of those Asian leaders to put the pressure on North Korea to come back to the negotiating table -- Rick.

SANCHEZ: Especially if you see some of the lines that we've seen in the past. You know, there's this new report out now about the possibility of these documents found from some person in Iran. The Iranians don't have uranium, it seems. But certainly there's been questions that the North Koreans could be willing to sell for the right price to countries like Iran. So I guess, if you add it all up, there's some real concerns in that area. I imagine that's going to be a big part of the conversation that the president's going to be having with these leaders from Japan, China and others. Right -- Suzanne.

MALVEAUX: Well, that's right, Rick. As a matter of fact, what has happened is with North Korea there have been some allies, European allies that have been working directly with North Korea in trying to give economic incentives, or even some communication. They say OK, we're going to put this forward here, if you can get us a promise to give up your nuclear ambitions.

The Bush administration has been very clear on this. That they are not willing to engage one-on-one. There's been some discussion about this behind the scenes and whether or not that is the best route to take. But they believe that if they involve multiparty talks with these other nations, they'll be much more effective when it comes to North Korea.

As you know, in the case with Iran, they are also engaged in the international community. The International Atomic Energy Agency trying to put the squeeze on them, the pressure on them to cut -- to prove that they are actually going to come clean and give up they're...

(LAUGHTER)

MALVEAUX: Enriching uranium program. They say it's for a nuclear fuel. But the Bush administration believes that they could use it to make a nuclear weapon.

SANCHEZ: Yes. And make sure they don't draw that line between those two countries. Suzanne Malveaux following this story for us, we'll be getting back to you. Thanks so much.

Fred, over to you.

WHITFIELD: Well, now the fight for Iraq and insurgent strikes that thundered across Baghdad earlier this morning. CNN's Karl Penhaul is there with this developing story -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Fredricka. Well, mid-afternoon here in a residential sector in eastern Baghdad, a suicide car bomber detonated a Mercedes vehicle laden with explosives. That explosion took place as the suicide bomber was driving past a police checkpoint made up of three police vehicles. Police have told us that in that explosion, five police officers were killed. He says that four others were wounded. And at least six civilians have also been wounded and hospitalized following that attack.

The attack, though, came after another incident this morning. At the end of Friday prayers in the old city of Baghdad in the northern area, the so-called Azamiyah District, we're told by witnesses that at a sermon there, the imam, the cleric of a mosque was giving a fierier sermon denouncing the U.S.-led assault on the city of Falluja. And we're told that sometime during or after that sermon, a gun fight broke out between some of those who were going to the prayers and also between a group of Iraqi National Guard, who were posted somewhere near the mosque.

Police tell us that in that gunfight at least two civilians were killed and seven others were wounded. It seems that this may be linked to threats over the last few days by the Iraqi government to take action against those clerics, who are seen to be inciting anti- American violence -- Fredricka.

WHITFIELD: All right Karl Penhaul. Thanks for that report from Baghdad -- Rick.

SANCHEZ: Meanwhile, staying in that country, Falluja remains secure but dangerous, as U.S. troops continue to locate pockets of die hard insurgents there. During recent raids, an apparent safe house used by both al Qaeda and some wanted terrorists, like Abu Musab al Zarqawi, was uncovered along with a bomb-making workshop there.

CNN's Jane Arraf is embedded with the U.S. Marines in Falluja. She joins us now by phone to bring us up to date on what was found when they went in and looked yesterday.

Jane, to you. JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Rick, they are continuing to find things like that in other sectors of the city. Essentially we have to remember that this is a city where U.S. forces haven't been since April, when they withdrew. And there are untold things behind these closed and locked doors.

Rick, it's just going to get a tiny bit noisy right now. There are tanks passing by. This is still combat. They're still search and attack operations going on here. There are still insurgents outside. And I hope you can still hear me.

But the other development that's happening, civilians are starting to come out. Yesterday, we went to a mosque where Marines are distributing food, aid and shelter. There are civilians carrying white flags crossing streets to get to the center. We met a woman whose nephew had been wounded, a very small child. She said that they had lost five members of their family when the call came from the mosque that they should go outside their homes. They went inside and they were shot -- Rick.

SANCHEZ: I imagine it's kind of difficult to talk over tanks, so we're going to let you go, Jane. And hopefully we'll be able to meet up with you a little bit later. Just for clarification sakes. We had mentioned that you're embedded with the U.S. Army. Indeed Jane Arraf is embedded -- oh, pardon me. I had said she was embedded with the Marines; she is indeed embedded with the U.S. Army -- Fred.

WHITFIELD: All right, all working together out there.

All right, Rick. Well, Congress gets down to the business of spending your tax dollars. After the break, why Uncle Sam will soon be seeing even more red ink. We'll have a live report from Capitol Hill.

SANCHEZ: Also, travel on the cheap. We're going to tell you where you can find the best Web site to find the best deals.

WHITFIELD: And still to come, are they or aren't they? The Bush administration says it has new information about Iran's possible nuclear ambitions. Why these latest claims may be hard to sell to the rest of the world.

(COMMERCIAL BREAK)

(WEATHER REPORT)

NARRATOR: She's been around since MTV's first astronaut first rocked into your living rooms in 1981. And now Judy McGrath is running the show. Now CEO of MTV Networks, McGrath is in charge of nearly 95 TV channels worldwide, including VH1, Nickelodeon and Logo, a new network targeting gay and lesbian viewers set to launch in 2005. At the age of 51, McGrath is credited with keeping the sometimes- controversial networks young and hip.

(COMMERCIAL BREAK)

SANCHEZ: Welcome back to CNN LIVE TODAY. I'm Rick Sanchez.

For Americans, maybe yourself, living with maxed out credit cards and a budget bursting at the seams, take solace. There's a similar fiscal strain on Capitol Hill. In fact, folks you have nothing on your federal government.

CNN congressional correspondent Joe Johns is joining us now from Capitol Hill to try and make sense of this story, which is really about borrowing an awful lot of money and spending an awful lot of money.

Joe, to you.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Certainly that's true, Rick. Many here on Capitol Hill now hoping the 108-Congress has finally entered the race to the finish line. Of course, work began bright and early on the floor of the House of Representatives today. The focus behind the scenes, of course, is a massive piece of catchall legislation that the authorities are trying to cobble together, to put this work to bed before the Thanksgiving holiday.

One important piece of business that has been completed, another huge spending bill. This, of course, a bill to raise the federal borrowing limit by $800 billion. Democrats kicking and screaming, of course, about that bill. Including Congressman Hastings of Florida on the floor today talking about it.

(BEGIN VIDEO CLIP)

REP. ALCEE HASTINGS (D), FLORIDA: Just yesterday, my friends in the majority voted to again raise the debt limit. They added billions and possibly trillions more to our national debt, leaving our children and grandchildren to pick up the tab for generations to come. And they called themselves the party of fiscal responsibility. Shame on them.

(END VIDEO CLIP)

JOHNS: Republicans, of course, accentuating the positive; choosing to try to talk about the successes of the 108 in its final days. Among them, Republican Congressman Pete Sessions.

(BEGIN VIDEO CLIP)

REP. PETE SESSIONS (R), TEXAS: We're proud that we will have in place this next year again, once again for low-income seniors, the ability for this government to help them not have to make a decision in buying and receiving their prescription drugs. That's something I'm proud of.

(END VIDEO CLIP)

JOHNS: Of course, the big question is how long will all of this take? The best guess right now is the House of Representatives will probably take up that big spending bill late this evening. The Senate possibly tomorrow. Of course, this will include nine different, unfinished spending bills that the Congress has to get out of the way before they leave for the holidays.

Rick, back to you.

SANCHEZ: Joe, Republicans -- are Republicans concerned in this case that they may be setting themselves up for a bit of a backlash? Many would argue they changed the rules on the Tom DeLay issue and now they're changing the debt ceiling, as well. All in a matter of days.

JOHNS: Well, that's something that Democrats will always howl about in this situation, because they are in the minority. But the bottom line on it is, that the Treasury Department has said this has to be done. They've run out of maneuvers to try to figure out how to pay the government's bills until the Congress raises the debt ceiling. So it's something that just simply has to be done, the administration says. And they view it as something that they have no choice on.

SANCHEZ: So in other words, if they didn't do this, they would have been in what, default?

JOHNS: Right, that's the problem. The governments has a number of, you know, huge obligations out there that it has to pay for. And simply has run out of money. The Treasury Department has been sort of smoke and mirrors, you might call it, to try to figure out how to pay these bills until the Congress increases the debt limit. It would be a big problem for the credit of the United States, of course. And some bills wouldn't get paid if they didn't raise the debt limit -- Rick.

SANCHEZ: Joe Johns, thanks so much for making sense of this for us. We'll certainly be getting back to you as well.

Fred, over to you.

WHITFIELD: Well, other business on the Hill. Embattled Republican Senator Arlen Specter has won his battle to chair the Senate Judiciary Committee. That chairmanship reveal -- seemed in peril rather, earlier this month after the moderate Republican suggested that judicial nominees would have difficulty winning approval, if they opposed abortion rights.

Fellow Republicans unanimously approved his chairmanship, after he promised there'd be no such litmus test, and that President Bush's nominees would get fair and fast committee hearings.

A recount of the governor's race is scheduled to get under way tomorrow in Washington State. Workers will begin their scrutiny with four counties in a statewide recount of some 2.8 million ballots. The process should be completed by Wednesday. But election officials warn that it could be Christmas before Washington State residents know who the next governor is. In the closest governor's race in state history, the Republican leads by a mere 261 votes.

SANCHEZ: Righting a wrong nearly 60 years in the making. Still to come, how some Minnesota students made sure that a 77-year-old woman received a high school honor that she had been denied. GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: And do you want to get out of town? We'll show you the best places to go for travel deals when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

WHITFIELD: Whether you're looking for a warm beach this winter or thinking about staying in a European villa, there are plenty of great deals out there. CNNfn personal finance editor Gerri Willis has some cheap travel Web site you may not have heard about.

And Gerri we know that American Airlines is offering a lot of deals to destination Miami or other places in Florida. But what other great deals are out there domestically?

WILLIS: Hey, Fredricka, we're talking really, really low prices. Think about this, Jet Blue, New York to Orlando one day, $69. United, coast-to-coast deals, $119 each way. These are great deals. And as you said, American just yesterday saying we're going to cut some of the prices on our fares to southern Florida.

WHITFIELD: Wow. All right, best places to find these deals? Only on the Web site?

WILLIS: Well, the best strategy right now, get on the web. Because there are fabulous Web site where you can find really good deals. Let's talk about some of them. Quick Book, great place for spa retreats, golf getaways. They don't charge processing fees is what you want to know about that one.

Now if you're traveling at the last minute, let's say your boss gives you the day off, maybe you want to get away really quickly. Go to lastminutetravel.com, site59.com, they have some amazing deals there. And don't forget resortvacationstogo, this is a clearinghouse for resorts in Canada, Mexico and the Caribbean. You're seeing them right there.

WHITFIELD: And some times there seem to be some secrets to try to get the best deal. At least try to get some negotiating power when it comes down to airfare deals, as well as hotels. What are they?

WILLIS: Well, if you're shopping for a hotel, I got to tell you, the best thing to do, think about the best rate guarantees at some of the big chains out there: Hilton, Starwood, Marriott. They guarantee that their room will be cheapest if you get it from them. So that's a great place to start.

One strategy when you're getting the hotel room, think about this. You want to get upgrades, right? You want to get the bigger room, maybe a little extra space. Best way to do it, get there before the business travelers do, because they're always upgrading. You want to get there before nighttime, which is when they usually arrive.

WHITFIELD: Wow. And so apparently flights and hotels aren't the only things on sale. Sometimes you can get some good rates on rental cars, as well. WILLIS: Absolutely. Well, first let's talk a little bit about the usual suspects being hotel rooms. You don't have to do that. You can get actually a villa. Maybe an entire country house. Where you go for that, some Web site we want to talk about here: vacationspot.com, rentvellas.com, laterooms for last-minute travel booking, if you want to try something just a little out of the mainstream.

WHITFIELD: Mmm, and sometimes that's nice. Sometimes a little bed and breakfasts are good ideas, too.

WILLIS: Absolutely.

WHITFIELD: All right. Well, let's talk about trying to get some of the other deals maybe on the rental cars, since I jumped ahead.

Willis: Oh, no problem. Go to comparisontravel.com. Free upgrades here that you'll want to know about. Because at the end of the day, you don't want to pay great rates for everything but the car. You want to get a deal on the car, too.

(LAUGHTER)

WILLIS: So check out that web site, as well -- Fredricka.

WHITFIELD: All right. Gerri Willis, thanks so much.

WILLIS: Thank you.

SANCHEZ: We're going to be following this story as well. Looking for ways to end a human catastrophe. After the break, there's some new hope for the war-torn Sudan in that Darfur area and its devastated refugees.

WHITFIELD: Plus, could there be new evidence on Iran's nuclear plans? Is the intelligence right? Or is it way off the mark?

(COMMERCIAL BREAK)

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Aired November 19, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, ANCHOR: All right. Got a lot ahead, beginning with these top stories now in the news.
President Bush is now on a 10-hour flight to Santiago, Chile for the weekend summit of Pacific Rim leaders. The Asia Pacific Economic Cooperation is focusing on terrorism, weapons proliferation, North Korea's suspected nuclear arms program and world trade. We have a full report on the president's agenda coming up in one minute.

Security is tight in Santiago, where protesters have been out in force this week, protesting President Bush's arrival and capitalism in general. Water cannons and tear gas have already been used on some demonstrators who began throwing stones at security forces.

And Federal Reserve Chief Alan Greenspan warned bloated trade deficits could pose a threat to the U.S. economy. The deficit swelled to an all-time high of $166 billion in the second quarter of this year. The sliding value of the dollar has some economists worried that foreign investors could start to unload U.S. stocks and bonds.

Violence in Baghdad. A car bomb exploded this morning near an Iraqi police convoy. Several people are reported wounded. And a firefight erupted outside a mosque, after several people shot at members of the Iraqi National Guard. Our reporter is there and we'll hear from him in a few minutes.

WHITFIELD: Hello, everyone. I'm Fredricka Whitfield in for Daryn Kagan this morning.

RICK SANCHEZ, CNN CO-ANCHOR: And I'm Rick Sanchez.

President Bush is en route to Santiago, Chile today for a weekend summit that's going to focus on trade, terrorism and some nuclear concerns.

And we're going to start this hour with the Asia Pacific Economic Summit, APEC for short. While the bottom line is money, a large part of the equation here is going to be about security concerns.

CNN White House correspondent Suzanne Malveaux is at her post with a preview of what the president hopes to do, and some of the people he's going to be talking to, as well.

Suzanne, over to you. SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Rick, advisers say some of the president's closest advisers say of course, one of the greatest challenges that the president is going to have in terms of foreign policy in his second term is dealing with nuclear ambitions of Iran and North Korea.

Now, President Bush leaving Fort Hood, Texas, this morning. He's on his way to the APEC summit in Chile. And it's expected that, of course, he's going to talk about trade agreements, as well as fighting terror. But the top of his agenda is to rally support to get North Korea to give up its nuclear ambitions and again engage in talks. Those six-party talks involving other countries: Russia, China, Japan and South Korea, that essentially fell art in September.

That is because North Korea's Kim Jong Il said that he wanted one-on-one dialogue with the United States. But that was a prerequisite to giving up some of his nuclear ambitions. U.S. officials say that essentially North Korea has been waiting to see the outcome of U.S. elections, to see if the White House was going to change its policy on that very issue. The Bush administration making it very clear that they are not changing their policy. Not engaging in North Korea in one-on-dialogue, but rather six-party talks.

But that is why, Rick, it is so important that the president in this first perhaps first diplomatic test, that he can actually convince some of those Asian leaders to put the pressure on North Korea to come back to the negotiating table -- Rick.

SANCHEZ: Especially if you see some of the lines that we've seen in the past. You know, there's this new report out now about the possibility of these documents found from some person in Iran. The Iranians don't have uranium, it seems. But certainly there's been questions that the North Koreans could be willing to sell for the right price to countries like Iran. So I guess, if you add it all up, there's some real concerns in that area. I imagine that's going to be a big part of the conversation that the president's going to be having with these leaders from Japan, China and others. Right -- Suzanne.

MALVEAUX: Well, that's right, Rick. As a matter of fact, what has happened is with North Korea there have been some allies, European allies that have been working directly with North Korea in trying to give economic incentives, or even some communication. They say OK, we're going to put this forward here, if you can get us a promise to give up your nuclear ambitions.

The Bush administration has been very clear on this. That they are not willing to engage one-on-one. There's been some discussion about this behind the scenes and whether or not that is the best route to take. But they believe that if they involve multiparty talks with these other nations, they'll be much more effective when it comes to North Korea.

As you know, in the case with Iran, they are also engaged in the international community. The International Atomic Energy Agency trying to put the squeeze on them, the pressure on them to cut -- to prove that they are actually going to come clean and give up they're...

(LAUGHTER)

MALVEAUX: Enriching uranium program. They say it's for a nuclear fuel. But the Bush administration believes that they could use it to make a nuclear weapon.

SANCHEZ: Yes. And make sure they don't draw that line between those two countries. Suzanne Malveaux following this story for us, we'll be getting back to you. Thanks so much.

Fred, over to you.

WHITFIELD: Well, now the fight for Iraq and insurgent strikes that thundered across Baghdad earlier this morning. CNN's Karl Penhaul is there with this developing story -- Karl.

KARL PENHAUL, CNN CORRESPONDENT: Hi there, Fredricka. Well, mid-afternoon here in a residential sector in eastern Baghdad, a suicide car bomber detonated a Mercedes vehicle laden with explosives. That explosion took place as the suicide bomber was driving past a police checkpoint made up of three police vehicles. Police have told us that in that explosion, five police officers were killed. He says that four others were wounded. And at least six civilians have also been wounded and hospitalized following that attack.

The attack, though, came after another incident this morning. At the end of Friday prayers in the old city of Baghdad in the northern area, the so-called Azamiyah District, we're told by witnesses that at a sermon there, the imam, the cleric of a mosque was giving a fierier sermon denouncing the U.S.-led assault on the city of Falluja. And we're told that sometime during or after that sermon, a gun fight broke out between some of those who were going to the prayers and also between a group of Iraqi National Guard, who were posted somewhere near the mosque.

Police tell us that in that gunfight at least two civilians were killed and seven others were wounded. It seems that this may be linked to threats over the last few days by the Iraqi government to take action against those clerics, who are seen to be inciting anti- American violence -- Fredricka.

WHITFIELD: All right Karl Penhaul. Thanks for that report from Baghdad -- Rick.

SANCHEZ: Meanwhile, staying in that country, Falluja remains secure but dangerous, as U.S. troops continue to locate pockets of die hard insurgents there. During recent raids, an apparent safe house used by both al Qaeda and some wanted terrorists, like Abu Musab al Zarqawi, was uncovered along with a bomb-making workshop there.

CNN's Jane Arraf is embedded with the U.S. Marines in Falluja. She joins us now by phone to bring us up to date on what was found when they went in and looked yesterday.

Jane, to you. JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Rick, they are continuing to find things like that in other sectors of the city. Essentially we have to remember that this is a city where U.S. forces haven't been since April, when they withdrew. And there are untold things behind these closed and locked doors.

Rick, it's just going to get a tiny bit noisy right now. There are tanks passing by. This is still combat. They're still search and attack operations going on here. There are still insurgents outside. And I hope you can still hear me.

But the other development that's happening, civilians are starting to come out. Yesterday, we went to a mosque where Marines are distributing food, aid and shelter. There are civilians carrying white flags crossing streets to get to the center. We met a woman whose nephew had been wounded, a very small child. She said that they had lost five members of their family when the call came from the mosque that they should go outside their homes. They went inside and they were shot -- Rick.

SANCHEZ: I imagine it's kind of difficult to talk over tanks, so we're going to let you go, Jane. And hopefully we'll be able to meet up with you a little bit later. Just for clarification sakes. We had mentioned that you're embedded with the U.S. Army. Indeed Jane Arraf is embedded -- oh, pardon me. I had said she was embedded with the Marines; she is indeed embedded with the U.S. Army -- Fred.

WHITFIELD: All right, all working together out there.

All right, Rick. Well, Congress gets down to the business of spending your tax dollars. After the break, why Uncle Sam will soon be seeing even more red ink. We'll have a live report from Capitol Hill.

SANCHEZ: Also, travel on the cheap. We're going to tell you where you can find the best Web site to find the best deals.

WHITFIELD: And still to come, are they or aren't they? The Bush administration says it has new information about Iran's possible nuclear ambitions. Why these latest claims may be hard to sell to the rest of the world.

(COMMERCIAL BREAK)

(WEATHER REPORT)

NARRATOR: She's been around since MTV's first astronaut first rocked into your living rooms in 1981. And now Judy McGrath is running the show. Now CEO of MTV Networks, McGrath is in charge of nearly 95 TV channels worldwide, including VH1, Nickelodeon and Logo, a new network targeting gay and lesbian viewers set to launch in 2005. At the age of 51, McGrath is credited with keeping the sometimes- controversial networks young and hip.

(COMMERCIAL BREAK)

SANCHEZ: Welcome back to CNN LIVE TODAY. I'm Rick Sanchez.

For Americans, maybe yourself, living with maxed out credit cards and a budget bursting at the seams, take solace. There's a similar fiscal strain on Capitol Hill. In fact, folks you have nothing on your federal government.

CNN congressional correspondent Joe Johns is joining us now from Capitol Hill to try and make sense of this story, which is really about borrowing an awful lot of money and spending an awful lot of money.

Joe, to you.

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT: Certainly that's true, Rick. Many here on Capitol Hill now hoping the 108-Congress has finally entered the race to the finish line. Of course, work began bright and early on the floor of the House of Representatives today. The focus behind the scenes, of course, is a massive piece of catchall legislation that the authorities are trying to cobble together, to put this work to bed before the Thanksgiving holiday.

One important piece of business that has been completed, another huge spending bill. This, of course, a bill to raise the federal borrowing limit by $800 billion. Democrats kicking and screaming, of course, about that bill. Including Congressman Hastings of Florida on the floor today talking about it.

(BEGIN VIDEO CLIP)

REP. ALCEE HASTINGS (D), FLORIDA: Just yesterday, my friends in the majority voted to again raise the debt limit. They added billions and possibly trillions more to our national debt, leaving our children and grandchildren to pick up the tab for generations to come. And they called themselves the party of fiscal responsibility. Shame on them.

(END VIDEO CLIP)

JOHNS: Republicans, of course, accentuating the positive; choosing to try to talk about the successes of the 108 in its final days. Among them, Republican Congressman Pete Sessions.

(BEGIN VIDEO CLIP)

REP. PETE SESSIONS (R), TEXAS: We're proud that we will have in place this next year again, once again for low-income seniors, the ability for this government to help them not have to make a decision in buying and receiving their prescription drugs. That's something I'm proud of.

(END VIDEO CLIP)

JOHNS: Of course, the big question is how long will all of this take? The best guess right now is the House of Representatives will probably take up that big spending bill late this evening. The Senate possibly tomorrow. Of course, this will include nine different, unfinished spending bills that the Congress has to get out of the way before they leave for the holidays.

Rick, back to you.

SANCHEZ: Joe, Republicans -- are Republicans concerned in this case that they may be setting themselves up for a bit of a backlash? Many would argue they changed the rules on the Tom DeLay issue and now they're changing the debt ceiling, as well. All in a matter of days.

JOHNS: Well, that's something that Democrats will always howl about in this situation, because they are in the minority. But the bottom line on it is, that the Treasury Department has said this has to be done. They've run out of maneuvers to try to figure out how to pay the government's bills until the Congress raises the debt ceiling. So it's something that just simply has to be done, the administration says. And they view it as something that they have no choice on.

SANCHEZ: So in other words, if they didn't do this, they would have been in what, default?

JOHNS: Right, that's the problem. The governments has a number of, you know, huge obligations out there that it has to pay for. And simply has run out of money. The Treasury Department has been sort of smoke and mirrors, you might call it, to try to figure out how to pay these bills until the Congress increases the debt limit. It would be a big problem for the credit of the United States, of course. And some bills wouldn't get paid if they didn't raise the debt limit -- Rick.

SANCHEZ: Joe Johns, thanks so much for making sense of this for us. We'll certainly be getting back to you as well.

Fred, over to you.

WHITFIELD: Well, other business on the Hill. Embattled Republican Senator Arlen Specter has won his battle to chair the Senate Judiciary Committee. That chairmanship reveal -- seemed in peril rather, earlier this month after the moderate Republican suggested that judicial nominees would have difficulty winning approval, if they opposed abortion rights.

Fellow Republicans unanimously approved his chairmanship, after he promised there'd be no such litmus test, and that President Bush's nominees would get fair and fast committee hearings.

A recount of the governor's race is scheduled to get under way tomorrow in Washington State. Workers will begin their scrutiny with four counties in a statewide recount of some 2.8 million ballots. The process should be completed by Wednesday. But election officials warn that it could be Christmas before Washington State residents know who the next governor is. In the closest governor's race in state history, the Republican leads by a mere 261 votes.

SANCHEZ: Righting a wrong nearly 60 years in the making. Still to come, how some Minnesota students made sure that a 77-year-old woman received a high school honor that she had been denied. GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: And do you want to get out of town? We'll show you the best places to go for travel deals when CNN LIVE TODAY continues.

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WHITFIELD: Whether you're looking for a warm beach this winter or thinking about staying in a European villa, there are plenty of great deals out there. CNNfn personal finance editor Gerri Willis has some cheap travel Web site you may not have heard about.

And Gerri we know that American Airlines is offering a lot of deals to destination Miami or other places in Florida. But what other great deals are out there domestically?

WILLIS: Hey, Fredricka, we're talking really, really low prices. Think about this, Jet Blue, New York to Orlando one day, $69. United, coast-to-coast deals, $119 each way. These are great deals. And as you said, American just yesterday saying we're going to cut some of the prices on our fares to southern Florida.

WHITFIELD: Wow. All right, best places to find these deals? Only on the Web site?

WILLIS: Well, the best strategy right now, get on the web. Because there are fabulous Web site where you can find really good deals. Let's talk about some of them. Quick Book, great place for spa retreats, golf getaways. They don't charge processing fees is what you want to know about that one.

Now if you're traveling at the last minute, let's say your boss gives you the day off, maybe you want to get away really quickly. Go to lastminutetravel.com, site59.com, they have some amazing deals there. And don't forget resortvacationstogo, this is a clearinghouse for resorts in Canada, Mexico and the Caribbean. You're seeing them right there.

WHITFIELD: And some times there seem to be some secrets to try to get the best deal. At least try to get some negotiating power when it comes down to airfare deals, as well as hotels. What are they?

WILLIS: Well, if you're shopping for a hotel, I got to tell you, the best thing to do, think about the best rate guarantees at some of the big chains out there: Hilton, Starwood, Marriott. They guarantee that their room will be cheapest if you get it from them. So that's a great place to start.

One strategy when you're getting the hotel room, think about this. You want to get upgrades, right? You want to get the bigger room, maybe a little extra space. Best way to do it, get there before the business travelers do, because they're always upgrading. You want to get there before nighttime, which is when they usually arrive.

WHITFIELD: Wow. And so apparently flights and hotels aren't the only things on sale. Sometimes you can get some good rates on rental cars, as well. WILLIS: Absolutely. Well, first let's talk a little bit about the usual suspects being hotel rooms. You don't have to do that. You can get actually a villa. Maybe an entire country house. Where you go for that, some Web site we want to talk about here: vacationspot.com, rentvellas.com, laterooms for last-minute travel booking, if you want to try something just a little out of the mainstream.

WHITFIELD: Mmm, and sometimes that's nice. Sometimes a little bed and breakfasts are good ideas, too.

WILLIS: Absolutely.

WHITFIELD: All right. Well, let's talk about trying to get some of the other deals maybe on the rental cars, since I jumped ahead.

Willis: Oh, no problem. Go to comparisontravel.com. Free upgrades here that you'll want to know about. Because at the end of the day, you don't want to pay great rates for everything but the car. You want to get a deal on the car, too.

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WILLIS: So check out that web site, as well -- Fredricka.

WHITFIELD: All right. Gerri Willis, thanks so much.

WILLIS: Thank you.

SANCHEZ: We're going to be following this story as well. Looking for ways to end a human catastrophe. After the break, there's some new hope for the war-torn Sudan in that Darfur area and its devastated refugees.

WHITFIELD: Plus, could there be new evidence on Iran's nuclear plans? Is the intelligence right? Or is it way off the mark?

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