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American Morning
Latest On the Condition of Yasser Arafat; President Bush's Agenda For Second Term; Democrats' Plans For the Next Four Years
Aired November 05, 2004 - 08:00 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.
BILL HEMMER, CNN ANCHOR: Good morning.
The president confident, calm, laying out where he wants to take the country in the next four years.
Yasser Arafat now clinging to life today. Is his health deteriorating too fast for other world leaders who must plan a Middle East without him?
The battle plan for Falluja today. What will the troops be up against if they try and wipe out the insurgency in that town?
And setting the stage for the president's economic goals for the next four years. A major jobs report about to be released on this AMERICAN MORNING.
ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
HEMMER: Good morning, everybody.
Just a tick after 8:00 on a Friday morning.
Soledad is out today.
Kelly Wallace is with us.
KELLY WALLACE, CNN ANCHOR: I like that, just a tick after 8:00.
HEMMER: Yes, it's 8:01.
This morning we'll talk about the president's plan and we'll also talk about the future for the Democratic Party, too. John Kerry far from the only Democrat to lose on Tuesday. Nancy Pelosi, the Democratic leader in the House, with us today, talking about where the party goes from here post-election 2004.
WALLACE: Also, Bill, day three of jury deliberations set to begin in the Scott Peterson murder trial. The latest decision coming from the judge is about cameras in the courtroom when the verdict comes down. We'll get a report on that.
HEMMER: Jack is off today.
We'll get him back on Monday.
Toure is taking your e-mails with us this morning.
WALLACE: Toure is here.
HEMMER: Toure is all fired up, isn't he?
WALLACE: He is. He is.
HEMMER: We want to get to Daryn Kagan right now, watching the headlines for us at the CNN Center -- hey, Daryn, good morning to you.
DARYN KAGAN, CNN ANCHOR: Good morning to both of you.
Now in the news, U.S. and Iraqi troops are getting ready for an all out assault on the Iraqi city of Falluja. There are some reports that civilians are being warned to leave that city. The aim of the offensive would be to pacify the region ahead of January elections.
More insurgent targets were pounded again overnight. Coming up, a report from the trenches with "L.A. Times" correspondent Tony Perry. He was embedded with the U.S. Marines in Falluja.
European leaders are reportedly set to present Iraq with a $21 million reconstruction aid package. Iraq's interim prime minister, Ayad Allawi, arriving in Brussels just hours ago to take part in the E.U. summit. There are some reports that French President Jacques Chirac purposely avoided meeting with Allawi. But Chirac's office denies that Allawi was snubbed.
And here in the U.S., the wife of former vice presidential candidate John Edwards is set to undergo more testing to find the best treatment for her breast cancer. Elizabeth Edwards discovered a lump last week, put off seeing a doctor because of the election. She was diagnosed on Wednesday after Senator John Kerry conceded the presidential race. And certainly we wish her the best in her recovery and surviving breast cancer, which is what most women do.
Bill -- back to you.
HEMMER: Indeed, they do.
Daryn, thanks for that.
Three minutes past the hour now.
The Palestinian leader, Yasser Arafat, now being kept alive by life support machines. This according to two top U.S. officials. Arafat has been in a coma since Wednesday. However, some Palestinian officials say Arafat could come out of it.
Jim Bittermann is at the Percy Military Hospital in Paris, where Yasser Arafat is being treated -- Jim, good afternoon to you.
What is the latest that you have there?
JIM BITTERMANN, CNN CORRESPONDENT: Well, Bill, Bill I am at the hospital here, but you wouldn't know it from the truck that has just pulled up behind me. In any case, the latest here is that there appear to be some preparations being made for a news conference or some kind of a news briefing later on this afternoon. It could be from the hospital spokesman or it might also be from Leila Shahid, who is the Palestinian representative here in France.
We've had precious little news coming out of either the hospital or the Palestinians this morning. It should be said that neither have a great vested interest in communicating a lot about Yasser Arafat's condition. And so I think that they're kind of playing it low key.
Leila Shahid did say this morning, both to CNN and to a French radio station here, that Yasser Arafat has been in a coma since Wednesday. At that point, apparently, doctors were seeing a decline in the president, the Palestinian president's condition, and as a consequence, they wanted to prepare a biopsy. They anesthetized Yasser Arafat and he has been in a coma since then.
She denied quite vehemently, because there were rumors this morning, but she denied the rumors that he was brain dead. She said he's in this coma, it's a reversible coma, he could come out of it or he might not -- Bill.
HEMMER: Jim Bittermann from Paris -- Kelly.
WALLACE: In his first post-reelection press conference, President Bush yesterday laid out an aggressive agenda for his second term.
CNN's senior White House correspondent John King has the details.
(BEGIN VIDEOTAPE)
JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): Energized, to say the least, and voicing confidence the election results give him both the mandate and the muscle to push difficult issues through Congress.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Let me put it to you this way, I earned capital in the campaign, political capital, and now I intend to spend it.
KING: The president talked optimistically of post-election goodwill. But his major second-term initiatives will trigger bruising debates with Democrats. Keeping a promise to slice the deficit will force spending cuts in popular programs. His Social Security proposal includes private investment accounts for younger Americans, pushing for a flatter tax system that is revenue neutral, meaning no hidden tax increase, and includes incentives for home buying and charitable giving.
BUSH: The people made it clear what they wanted. Now, let's work together.
KING: Confident, but careful. Taking questions for nearly 40 minutes, Mr. Bush sidestepped several pressing issues that will test the post-election mood -- whether more troops are needed in Iraq, what the war will cost next year, the goals of an imminent offensive against Iraqi insurgents and what qualities he will look for if Chief Justice William Rehnquist retires.
BUSH: Well, there's no vacancy for the Supreme Court. And I will deal with a vacancy when there is one.
KING: On the world stage, Mr. Bush says he shares Prime Minister Tony Blair's goal of trying to revive the Middle East peace process. And he talked of trying to move past strains with other leaders caused by the Iraq war.
BUSH: Whatever our past disagreements, we share a common enemy.
KING: The president called the campaign exhausting but marvelous and is now up at Camp David for a long weekend, in part to celebrate the first lady's birthday, and in part, he says, to turn his attention to inevitable changes in the cabinet and the senior White House staff. His aides say they expect that turnover will be significant, but gradual.
John King, CNN, the White House.
(END VIDEOTAPE)
WALLACE: And among the top cabinet members rumored to be considering leaving include Attorney General John Ashcroft, Secretary of State Colin Powell and Defense Secretary Donald Rumsfeld -- Bill.
HEMMER: Kelly, as the Republicans move forward on their agenda, Democrats picking up the pieces of their party.
Is four more years enough time to do it?
The House minority leader, Democratic Representative Nancy Pelosi, my guest now from Capitol Hill.
And welcome back.
Good morning to you.
REP. NANCY PELOSI (D-CA), HOUSE MINORITY LEADER: Good morning, Bill.
HEMMER: We picked up on a few things you've said over the past couple of days and we'll try and address them this morning.
One thing you said, "Quite frankly, I think the table is set for us in the next election. We have lost just about everything that we can lose."
How is the table set for the Democrats after this race on Tuesday?
PELOSI: Bill, the table is set in the following way. For the past couple of years, the president, the Republicans have controlled the White House, the Senate and the House of Representatives. They lost jobs. More people lost their access to health care. College education has become less affordable. The war in Iraq is not going well.
But they were not held accountable for it because the public didn't know that they controlled all of the elements of government. Now, the public does. The president talks about a mandate. So we will, you know, he has -- he says he has a mandate but Democrats have a responsibility to present our agenda for creating 10 million jobs, to expand access to health care, to make college education more affordable, to reduce this deficit, to protect our country.
And it isn't -- it is a responsible opposition that we will present. But the responsibility will lie with the Republicans and the public will know that.
HEMMER: But as you reflect on Tuesday, Americans weren't voting on those issues.
PELOSI: That's right. You're exactly right, Bill. The president was successful in eclipsing the issues of jobs, health care, education, the war in Iraq, by social issues. The public did not give the president a mandate to continue his failed record of losing jobs, the worst record in second decades of any president...
HEMMER: Do you believe you can reach those people?
PELOSI: Yes, I do.
HEMMER: Fifty-eight million.
How?
PELOSI: I believe, well, first of all, over five -- 50 million people, 55 million people voted Democratic. I would hope that the president would be the president of all of the people. Each of us has a responsibility to all Americans, to find our common ground with the president, but to hold our ground where we think he is doing the wrong thing. And he...
HEMMER: And you talk about responsibility. The other day you told Wolf Blitzer I take full responsibility...
PELOSI: Exactly.
HEMMER: ... for whatever happened as far as the House races are concerned.
PELOSI: That's right.
HEMMER: Are you concerned about your own leadership position at this point?
PELOSI: No, I'm not. No, I'm not.
HEMMER: Why not? PELOSI: Democrats are united. We have our -- we're united around core principles of a secure and growing middle class. We are prepared to go into this next Congress with an initiative and not just a complaint. We are, again, united. We know what the election was about. It wasn't about the social issues only. It was about our domestic agenda and how we protect and defend the American people.
I think that you will calmly see our moment, that while the president controls all of, again, the House, Senate and the White House, they will have to be held accountable and there will be no blurring of the responsibility.
HEMMER: One more thing here. This you said the other day. "They exploited the loveliness of the American people"...
PELOSI: That's right.
HEMMER: ... the devoutness of people of faith for a political end."
PELOSI: Yes.
HEMMER: That is very strong.
PELOSI: Yes.
HEMMER: Exploit? How?
PELOSI: Well, I believe that the separation of church and state was blurred in the last election and that's something that is fundamental to our democracy. But they were successful in doing that. The churches participated in a way that I thought was not appropriate, as devout as I am myself as a Catholic and as a regular churchgoer as I am. Every place I went in the country, they were reading letters about choice and this or that, elements that really were un -- I thought the timing of it was inappropriate.
But, anyway, be that as it may, our faith is very important to each and every one of us. And it shouldn't have to be you're either a person of faith or you want to fight for jobs, fight for education, fight for access to quality health care. This is going to, as I say, this calmly will be our time to point out the differences to the American people and how the president has lost jobs, endangered us with the war in Iraq, has grown the deficit to gross proportions.
So when they want to say they're going to reduce the deficit, they created the problem. We had a zero deficit under President Clinton. They have created the problem of a complicated tax code, made it more complicated --
HEMMER: OK...
PELOSI: ... and now say they're going to simplify it.
We have an agenda. We're calm about it. We're ready to confront the president. And we're also ready to find common ground with him where we can.
HEMMER: You know, they're going to kill me if I don't say thank you.
PELOSI: Thank you.
HEMMER: My pen's running out of ink from your list, too.
PELOSI: Don't be killed.
HEMMER: Nancy Pelosi, we'll talk again, and clearly we have a lot to discuss. Thanks.
PELOSI: Thank you, Bill.
HEMMER: Kelly.
WALLACE: Thanks, Bill.
From politics to the weather, Chad Myers is at the CNN Center with the latest forecast -- good morning again, Chad.
What's it looking like for today?
CHAD MYERS, CNN METEOROLOGIST: Good morning.
(WEATHER REPORT)
WALLACE: Now on to a bit of a bizarre story.
In Oregon, a man comes home to an uninvited guest. A suspected burglar was found yesterday trapped in the chimney of a Portland area house. Firefighters tore apart the chimney to rescue the suspect, who was stuck eight feet down. Police believe he may have been under the influence of drugs. The suspect was hospitalized and faces burglary and criminal mischief charges.
HEMMER: I guess the door was locked.
In a moment here, the jury in the Scott Peterson trial could come up with a verdict at any moment, but you will not see it when it happens. We'll tell you why.
WALLACE: Also, Bill, it is too early to tell what Elizabeth Edwards' breast cancer diagnosis will mean for her. But doctors say there's more reason than ever to be hopeful. We will find out why.
HEMMER: Also, all eyes trained on Falluja. U.S. troops, Marines there are poised for an assault on that town. What will they face when they go in? We'll have a look with a reporter formerly embedded with the Marines in a moment.
(COMMERCIAL BREAK)
HEMMER: You might remember this videotape from back in April. That's when the Marines were on the outskirts of Falluja. And apparently they're getting ready for a major assault inside that town. The offensive aimed at rooting out insurgents there.
During a three week battle in the month of April, "L.A. Times" reporter Tony Perry was embedded with the Marines in Falluja. Back then, he talked to us by phone during that battle.
(BEGIN VIDEO CLIP)
TONY PERRY, "LOS ANGELES TIMES": They were attacked and three Marines were wounded and the Marines counter-attacked very ferociously with tanks and infantry and Cobra helicopters. The insurgents, in essence, took the bait. The Marines wanted them to come out and fight during the daylight. They have done it. And now the fight is on.
(END VIDEO CLIP)
HEMMER: Today, Tony Perry is back home in California.
He's my guest now live in San Diego to figure out what the U.S. Marines are up against there in Falluja.
Tony, good to see you, and welcome back.
I know you've been back for five or six months now.
What does the U.S. military face in Falluja six months later?
PERRY: Well, it faces an enemy that is brazen, that is well armed, that knows the turf, that has had months to get ready to put barriers in front of the troops, to coordinate its strategy. They did show some rudimentary ability to coordinate attacks in platoon-sized assaults.
This is an enemy that is well armed and is determined.
They've also had months to flee, so we face the potential of going in and not finding them there, too. So they've had months to get ready, as the Marines have.
HEMMER: How much more difficult is this job now, Tony, given that?
PERRY: Oh, it's enormously difficult. Urban fighting is the most difficult of fighting, street to street, house to house. It's bloody. You only have to look at Hue City in South Vietnam and the battle during the Vietnam War and how bloody that was. Urban fighting, which the Marines are very well trained for, can be the most vicious and most lethal of fighting.
Which leads us to the problem, and that is the same problem we had in April -- civilian casualties. What if the Marines go in -- and they're fine infantry troops -- they go in, take over the insurgency hot spots, but in the process there are hundreds, maybe thousands, of civilian casualties, women and children? How are the American public going to react and how, more importantly, are the Iraqi civilians in the rest of the country going to react? That's the big unknown.
HEMMER: Let me try and nail down some numbers based on what you're hearing from the U.S. military.
The population of Falluja is what?
PERRY: About a quarter of a million.
HEMMER: About a quarter of a million.
PERRY: Very densely packed.
HEMMER: How many insurgents would be there today, do they believe?
PERRY: It wouldn't take very many, 4,000, 5,000, 6,000, 7,000, possibly. The definition of an insurgent being sort of floating. Is that a 17-year-old that you've given an AK-47 to or is it an embittered 40-year-old former Iraqi sergeant? It's unclear. But several thousand. It doesn't take too many.
HEMMER: And do you know how many have fled, be it the insurgents or the residents, from that city?
PERRY: Well, in the spring we thought 60,000 had fled. I think a lesser number have fled this time. I haven't seen indications of large convoys leaving or large boat flotillas going across the river to freedom. So there are still a lot of Iraqi civilians. And this enemy, the insurgency, likes to fight amid women and children, likes to fight in a densely packed urban Arab city setting, because they know that civilian casualties will rebound to the negative of the American mission and the Iraqi Army.
Now this has to be an Iraqi venture, backed by the Marines. That's another big unknown. Are they up to it? Are the Iraqi troops ready to go in, fight their countrymen in large numbers and then occupy Falluja? We just don't know. They weren't ready in April and May. That was one of the reasons that the U.S. pulled back. And we'll see if, indeed, there is an assault, whether they are ready this time.
HEMMER: Tony, I'm almost out of time here.
What did the Marines learn about the insurgents back in April and May that they could use today?
PERRY: I think they learned a grudging respect for these people. There weren't a lot of -- in fact, I don't think there were any cases of surrender. These are people that will fight to the death. They do know strategy. They are heavily armed. They are not pushovers. Call them fanatics if you want, but they're very tough.
On the other hand, the Marines are very, very tough and we haven't seen a fraction of the power -- air power, tanks, infantry power, coordinated power, that the Marines can bring to bear. Not a fraction.
HEMMER: Tony, thank you.
Tony Perry from the "L.A. Times" back in San Diego.
Appreciate your thoughts today.
PERRY: My pleasure.
HEMMER: In a moment here, the president says he has earned political capital during this campaign, ready to use it, too, his words from yesterday. Where is he looking to spend that capital first? "Gimmie A Minute" has that on a Friday morning, when we continue, right after this.
(COMMERCIAL BREAK)
WALLACE: And let's check in with Toure, my favorite, The Question of the Day.
TOURE, CNN POP CULTURE CORRESPONDENT: Kelly, I think you changed the e-mails a little bit because you said...
HEMMER: How so?
TOURE: ... where's the other side? Well, the other side has waken up and they are here.
Tuesday's election was shocking for many Americans, who are now struggling to quickly recalibrate their understanding of the country. Tom Friedman's editorial in the "Times" yesterday said, "There are two Americas. They don't disagree on what America should be doing, they disagree on what America is."
And with the country so sharply divided on values, millions of Americans are looking at America and saying I don't even know who you are anymore.
But what do you think?
Our Question of the Day, did the election change your view of America? Some are saying yes. Many are saying no.
Christopher from New Mexico -- all these are from red states, notice, New Mexico trending red. We can say that, right?
WALLACE: Right.
HEMMER: Bush won it.
WALLACE: Bush ahead, yes.
TOURE: Right. "As I wrote" -- Christopher from Sante Fe: "As I wrote to Dick Cheney on Thursday, while I congratulate you on your victory, let me remind you that over 55 million Americans did NOT give you a mandate and if you don't want to keep those -- if you don't want those 55 million out in the states demonstrating you would be well advised to keep that in mind."
Jim from Arkansas: "No, it didn't change my mind. This country was founded on much higher moral standards than has been evident in it for some time. Our country may just be turning back toward its roots. If you and your friends think Canada is more appealing, then take off. You, your friends, nor your liberal view will be missed."
WALLACE: Bye-bye.
TOURE: Cary from Cumming, Georgia: "The words of Thomas Jefferson ring in my ears, when he was asked hundreds of years ago, what do we have and he replied, a democracy, madam, if you can keep it. Now one party has total control of the government, the House, the Senate, the judiciary and the executive. This nation's in great trouble."
And Jamie from Mesa, Arizona: "I am stunned by how incredulous people are at the Bush -- that Bush won the election and that Americans have moral values." I think she's talking directly to me. "You might consider me conservative from where I stand, but I'm just a normal, run of the mill American. I'm not evangelical nor can I be called part of the religious right. I simply wish my American values to mean that my child can grow up in a safe, moral society that values life and loving families."
That's the electorate.
WALLACE: Spirited feelings out there.
TOURE: Absolutely.
HEMMER: You want a number? I'll give you a number.
TOURE: Tell me.
HEMMER: Cnn.com, which has gotten a lot of attention for excellent coverage over this past election.
TOURE: Great.
HEMMER: Great kudos. It's a great Web site.
WALLACE: Yes.
TOURE: Yes.
HEMMER: Three hundred and fifty million page views on Tuesday night.
WALLACE: Wow!
HEMMER: Beat that.
TOURE: Yes.
WALLACE: It's a record, I'm sure, for cnn.com.
TOURE: Yes.
(CROSSTALK)
TOURE: That's massive.
HEMMER: Thank you, Toure.
In a moment here, any moment, in fact, we're expecting the latest jobs report out, the first since the election. Andy has that at 8:30 straight up, three minutes from now.
Also, it's up to jurors to decide the fate of Scott Peterson. But the judge has already decided that you will not see the verdict. We'll tell you why as we continue, after this.
(COMMERCIAL BREAK)
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Aired November 5, 2004 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Good morning.
The president confident, calm, laying out where he wants to take the country in the next four years.
Yasser Arafat now clinging to life today. Is his health deteriorating too fast for other world leaders who must plan a Middle East without him?
The battle plan for Falluja today. What will the troops be up against if they try and wipe out the insurgency in that town?
And setting the stage for the president's economic goals for the next four years. A major jobs report about to be released on this AMERICAN MORNING.
ANNOUNCER: From the CNN broadcast center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.
HEMMER: Good morning, everybody.
Just a tick after 8:00 on a Friday morning.
Soledad is out today.
Kelly Wallace is with us.
KELLY WALLACE, CNN ANCHOR: I like that, just a tick after 8:00.
HEMMER: Yes, it's 8:01.
This morning we'll talk about the president's plan and we'll also talk about the future for the Democratic Party, too. John Kerry far from the only Democrat to lose on Tuesday. Nancy Pelosi, the Democratic leader in the House, with us today, talking about where the party goes from here post-election 2004.
WALLACE: Also, Bill, day three of jury deliberations set to begin in the Scott Peterson murder trial. The latest decision coming from the judge is about cameras in the courtroom when the verdict comes down. We'll get a report on that.
HEMMER: Jack is off today.
We'll get him back on Monday.
Toure is taking your e-mails with us this morning.
WALLACE: Toure is here.
HEMMER: Toure is all fired up, isn't he?
WALLACE: He is. He is.
HEMMER: We want to get to Daryn Kagan right now, watching the headlines for us at the CNN Center -- hey, Daryn, good morning to you.
DARYN KAGAN, CNN ANCHOR: Good morning to both of you.
Now in the news, U.S. and Iraqi troops are getting ready for an all out assault on the Iraqi city of Falluja. There are some reports that civilians are being warned to leave that city. The aim of the offensive would be to pacify the region ahead of January elections.
More insurgent targets were pounded again overnight. Coming up, a report from the trenches with "L.A. Times" correspondent Tony Perry. He was embedded with the U.S. Marines in Falluja.
European leaders are reportedly set to present Iraq with a $21 million reconstruction aid package. Iraq's interim prime minister, Ayad Allawi, arriving in Brussels just hours ago to take part in the E.U. summit. There are some reports that French President Jacques Chirac purposely avoided meeting with Allawi. But Chirac's office denies that Allawi was snubbed.
And here in the U.S., the wife of former vice presidential candidate John Edwards is set to undergo more testing to find the best treatment for her breast cancer. Elizabeth Edwards discovered a lump last week, put off seeing a doctor because of the election. She was diagnosed on Wednesday after Senator John Kerry conceded the presidential race. And certainly we wish her the best in her recovery and surviving breast cancer, which is what most women do.
Bill -- back to you.
HEMMER: Indeed, they do.
Daryn, thanks for that.
Three minutes past the hour now.
The Palestinian leader, Yasser Arafat, now being kept alive by life support machines. This according to two top U.S. officials. Arafat has been in a coma since Wednesday. However, some Palestinian officials say Arafat could come out of it.
Jim Bittermann is at the Percy Military Hospital in Paris, where Yasser Arafat is being treated -- Jim, good afternoon to you.
What is the latest that you have there?
JIM BITTERMANN, CNN CORRESPONDENT: Well, Bill, Bill I am at the hospital here, but you wouldn't know it from the truck that has just pulled up behind me. In any case, the latest here is that there appear to be some preparations being made for a news conference or some kind of a news briefing later on this afternoon. It could be from the hospital spokesman or it might also be from Leila Shahid, who is the Palestinian representative here in France.
We've had precious little news coming out of either the hospital or the Palestinians this morning. It should be said that neither have a great vested interest in communicating a lot about Yasser Arafat's condition. And so I think that they're kind of playing it low key.
Leila Shahid did say this morning, both to CNN and to a French radio station here, that Yasser Arafat has been in a coma since Wednesday. At that point, apparently, doctors were seeing a decline in the president, the Palestinian president's condition, and as a consequence, they wanted to prepare a biopsy. They anesthetized Yasser Arafat and he has been in a coma since then.
She denied quite vehemently, because there were rumors this morning, but she denied the rumors that he was brain dead. She said he's in this coma, it's a reversible coma, he could come out of it or he might not -- Bill.
HEMMER: Jim Bittermann from Paris -- Kelly.
WALLACE: In his first post-reelection press conference, President Bush yesterday laid out an aggressive agenda for his second term.
CNN's senior White House correspondent John King has the details.
(BEGIN VIDEOTAPE)
JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT (voice-over): Energized, to say the least, and voicing confidence the election results give him both the mandate and the muscle to push difficult issues through Congress.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Let me put it to you this way, I earned capital in the campaign, political capital, and now I intend to spend it.
KING: The president talked optimistically of post-election goodwill. But his major second-term initiatives will trigger bruising debates with Democrats. Keeping a promise to slice the deficit will force spending cuts in popular programs. His Social Security proposal includes private investment accounts for younger Americans, pushing for a flatter tax system that is revenue neutral, meaning no hidden tax increase, and includes incentives for home buying and charitable giving.
BUSH: The people made it clear what they wanted. Now, let's work together.
KING: Confident, but careful. Taking questions for nearly 40 minutes, Mr. Bush sidestepped several pressing issues that will test the post-election mood -- whether more troops are needed in Iraq, what the war will cost next year, the goals of an imminent offensive against Iraqi insurgents and what qualities he will look for if Chief Justice William Rehnquist retires.
BUSH: Well, there's no vacancy for the Supreme Court. And I will deal with a vacancy when there is one.
KING: On the world stage, Mr. Bush says he shares Prime Minister Tony Blair's goal of trying to revive the Middle East peace process. And he talked of trying to move past strains with other leaders caused by the Iraq war.
BUSH: Whatever our past disagreements, we share a common enemy.
KING: The president called the campaign exhausting but marvelous and is now up at Camp David for a long weekend, in part to celebrate the first lady's birthday, and in part, he says, to turn his attention to inevitable changes in the cabinet and the senior White House staff. His aides say they expect that turnover will be significant, but gradual.
John King, CNN, the White House.
(END VIDEOTAPE)
WALLACE: And among the top cabinet members rumored to be considering leaving include Attorney General John Ashcroft, Secretary of State Colin Powell and Defense Secretary Donald Rumsfeld -- Bill.
HEMMER: Kelly, as the Republicans move forward on their agenda, Democrats picking up the pieces of their party.
Is four more years enough time to do it?
The House minority leader, Democratic Representative Nancy Pelosi, my guest now from Capitol Hill.
And welcome back.
Good morning to you.
REP. NANCY PELOSI (D-CA), HOUSE MINORITY LEADER: Good morning, Bill.
HEMMER: We picked up on a few things you've said over the past couple of days and we'll try and address them this morning.
One thing you said, "Quite frankly, I think the table is set for us in the next election. We have lost just about everything that we can lose."
How is the table set for the Democrats after this race on Tuesday?
PELOSI: Bill, the table is set in the following way. For the past couple of years, the president, the Republicans have controlled the White House, the Senate and the House of Representatives. They lost jobs. More people lost their access to health care. College education has become less affordable. The war in Iraq is not going well.
But they were not held accountable for it because the public didn't know that they controlled all of the elements of government. Now, the public does. The president talks about a mandate. So we will, you know, he has -- he says he has a mandate but Democrats have a responsibility to present our agenda for creating 10 million jobs, to expand access to health care, to make college education more affordable, to reduce this deficit, to protect our country.
And it isn't -- it is a responsible opposition that we will present. But the responsibility will lie with the Republicans and the public will know that.
HEMMER: But as you reflect on Tuesday, Americans weren't voting on those issues.
PELOSI: That's right. You're exactly right, Bill. The president was successful in eclipsing the issues of jobs, health care, education, the war in Iraq, by social issues. The public did not give the president a mandate to continue his failed record of losing jobs, the worst record in second decades of any president...
HEMMER: Do you believe you can reach those people?
PELOSI: Yes, I do.
HEMMER: Fifty-eight million.
How?
PELOSI: I believe, well, first of all, over five -- 50 million people, 55 million people voted Democratic. I would hope that the president would be the president of all of the people. Each of us has a responsibility to all Americans, to find our common ground with the president, but to hold our ground where we think he is doing the wrong thing. And he...
HEMMER: And you talk about responsibility. The other day you told Wolf Blitzer I take full responsibility...
PELOSI: Exactly.
HEMMER: ... for whatever happened as far as the House races are concerned.
PELOSI: That's right.
HEMMER: Are you concerned about your own leadership position at this point?
PELOSI: No, I'm not. No, I'm not.
HEMMER: Why not? PELOSI: Democrats are united. We have our -- we're united around core principles of a secure and growing middle class. We are prepared to go into this next Congress with an initiative and not just a complaint. We are, again, united. We know what the election was about. It wasn't about the social issues only. It was about our domestic agenda and how we protect and defend the American people.
I think that you will calmly see our moment, that while the president controls all of, again, the House, Senate and the White House, they will have to be held accountable and there will be no blurring of the responsibility.
HEMMER: One more thing here. This you said the other day. "They exploited the loveliness of the American people"...
PELOSI: That's right.
HEMMER: ... the devoutness of people of faith for a political end."
PELOSI: Yes.
HEMMER: That is very strong.
PELOSI: Yes.
HEMMER: Exploit? How?
PELOSI: Well, I believe that the separation of church and state was blurred in the last election and that's something that is fundamental to our democracy. But they were successful in doing that. The churches participated in a way that I thought was not appropriate, as devout as I am myself as a Catholic and as a regular churchgoer as I am. Every place I went in the country, they were reading letters about choice and this or that, elements that really were un -- I thought the timing of it was inappropriate.
But, anyway, be that as it may, our faith is very important to each and every one of us. And it shouldn't have to be you're either a person of faith or you want to fight for jobs, fight for education, fight for access to quality health care. This is going to, as I say, this calmly will be our time to point out the differences to the American people and how the president has lost jobs, endangered us with the war in Iraq, has grown the deficit to gross proportions.
So when they want to say they're going to reduce the deficit, they created the problem. We had a zero deficit under President Clinton. They have created the problem of a complicated tax code, made it more complicated --
HEMMER: OK...
PELOSI: ... and now say they're going to simplify it.
We have an agenda. We're calm about it. We're ready to confront the president. And we're also ready to find common ground with him where we can.
HEMMER: You know, they're going to kill me if I don't say thank you.
PELOSI: Thank you.
HEMMER: My pen's running out of ink from your list, too.
PELOSI: Don't be killed.
HEMMER: Nancy Pelosi, we'll talk again, and clearly we have a lot to discuss. Thanks.
PELOSI: Thank you, Bill.
HEMMER: Kelly.
WALLACE: Thanks, Bill.
From politics to the weather, Chad Myers is at the CNN Center with the latest forecast -- good morning again, Chad.
What's it looking like for today?
CHAD MYERS, CNN METEOROLOGIST: Good morning.
(WEATHER REPORT)
WALLACE: Now on to a bit of a bizarre story.
In Oregon, a man comes home to an uninvited guest. A suspected burglar was found yesterday trapped in the chimney of a Portland area house. Firefighters tore apart the chimney to rescue the suspect, who was stuck eight feet down. Police believe he may have been under the influence of drugs. The suspect was hospitalized and faces burglary and criminal mischief charges.
HEMMER: I guess the door was locked.
In a moment here, the jury in the Scott Peterson trial could come up with a verdict at any moment, but you will not see it when it happens. We'll tell you why.
WALLACE: Also, Bill, it is too early to tell what Elizabeth Edwards' breast cancer diagnosis will mean for her. But doctors say there's more reason than ever to be hopeful. We will find out why.
HEMMER: Also, all eyes trained on Falluja. U.S. troops, Marines there are poised for an assault on that town. What will they face when they go in? We'll have a look with a reporter formerly embedded with the Marines in a moment.
(COMMERCIAL BREAK)
HEMMER: You might remember this videotape from back in April. That's when the Marines were on the outskirts of Falluja. And apparently they're getting ready for a major assault inside that town. The offensive aimed at rooting out insurgents there.
During a three week battle in the month of April, "L.A. Times" reporter Tony Perry was embedded with the Marines in Falluja. Back then, he talked to us by phone during that battle.
(BEGIN VIDEO CLIP)
TONY PERRY, "LOS ANGELES TIMES": They were attacked and three Marines were wounded and the Marines counter-attacked very ferociously with tanks and infantry and Cobra helicopters. The insurgents, in essence, took the bait. The Marines wanted them to come out and fight during the daylight. They have done it. And now the fight is on.
(END VIDEO CLIP)
HEMMER: Today, Tony Perry is back home in California.
He's my guest now live in San Diego to figure out what the U.S. Marines are up against there in Falluja.
Tony, good to see you, and welcome back.
I know you've been back for five or six months now.
What does the U.S. military face in Falluja six months later?
PERRY: Well, it faces an enemy that is brazen, that is well armed, that knows the turf, that has had months to get ready to put barriers in front of the troops, to coordinate its strategy. They did show some rudimentary ability to coordinate attacks in platoon-sized assaults.
This is an enemy that is well armed and is determined.
They've also had months to flee, so we face the potential of going in and not finding them there, too. So they've had months to get ready, as the Marines have.
HEMMER: How much more difficult is this job now, Tony, given that?
PERRY: Oh, it's enormously difficult. Urban fighting is the most difficult of fighting, street to street, house to house. It's bloody. You only have to look at Hue City in South Vietnam and the battle during the Vietnam War and how bloody that was. Urban fighting, which the Marines are very well trained for, can be the most vicious and most lethal of fighting.
Which leads us to the problem, and that is the same problem we had in April -- civilian casualties. What if the Marines go in -- and they're fine infantry troops -- they go in, take over the insurgency hot spots, but in the process there are hundreds, maybe thousands, of civilian casualties, women and children? How are the American public going to react and how, more importantly, are the Iraqi civilians in the rest of the country going to react? That's the big unknown.
HEMMER: Let me try and nail down some numbers based on what you're hearing from the U.S. military.
The population of Falluja is what?
PERRY: About a quarter of a million.
HEMMER: About a quarter of a million.
PERRY: Very densely packed.
HEMMER: How many insurgents would be there today, do they believe?
PERRY: It wouldn't take very many, 4,000, 5,000, 6,000, 7,000, possibly. The definition of an insurgent being sort of floating. Is that a 17-year-old that you've given an AK-47 to or is it an embittered 40-year-old former Iraqi sergeant? It's unclear. But several thousand. It doesn't take too many.
HEMMER: And do you know how many have fled, be it the insurgents or the residents, from that city?
PERRY: Well, in the spring we thought 60,000 had fled. I think a lesser number have fled this time. I haven't seen indications of large convoys leaving or large boat flotillas going across the river to freedom. So there are still a lot of Iraqi civilians. And this enemy, the insurgency, likes to fight amid women and children, likes to fight in a densely packed urban Arab city setting, because they know that civilian casualties will rebound to the negative of the American mission and the Iraqi Army.
Now this has to be an Iraqi venture, backed by the Marines. That's another big unknown. Are they up to it? Are the Iraqi troops ready to go in, fight their countrymen in large numbers and then occupy Falluja? We just don't know. They weren't ready in April and May. That was one of the reasons that the U.S. pulled back. And we'll see if, indeed, there is an assault, whether they are ready this time.
HEMMER: Tony, I'm almost out of time here.
What did the Marines learn about the insurgents back in April and May that they could use today?
PERRY: I think they learned a grudging respect for these people. There weren't a lot of -- in fact, I don't think there were any cases of surrender. These are people that will fight to the death. They do know strategy. They are heavily armed. They are not pushovers. Call them fanatics if you want, but they're very tough.
On the other hand, the Marines are very, very tough and we haven't seen a fraction of the power -- air power, tanks, infantry power, coordinated power, that the Marines can bring to bear. Not a fraction.
HEMMER: Tony, thank you.
Tony Perry from the "L.A. Times" back in San Diego.
Appreciate your thoughts today.
PERRY: My pleasure.
HEMMER: In a moment here, the president says he has earned political capital during this campaign, ready to use it, too, his words from yesterday. Where is he looking to spend that capital first? "Gimmie A Minute" has that on a Friday morning, when we continue, right after this.
(COMMERCIAL BREAK)
WALLACE: And let's check in with Toure, my favorite, The Question of the Day.
TOURE, CNN POP CULTURE CORRESPONDENT: Kelly, I think you changed the e-mails a little bit because you said...
HEMMER: How so?
TOURE: ... where's the other side? Well, the other side has waken up and they are here.
Tuesday's election was shocking for many Americans, who are now struggling to quickly recalibrate their understanding of the country. Tom Friedman's editorial in the "Times" yesterday said, "There are two Americas. They don't disagree on what America should be doing, they disagree on what America is."
And with the country so sharply divided on values, millions of Americans are looking at America and saying I don't even know who you are anymore.
But what do you think?
Our Question of the Day, did the election change your view of America? Some are saying yes. Many are saying no.
Christopher from New Mexico -- all these are from red states, notice, New Mexico trending red. We can say that, right?
WALLACE: Right.
HEMMER: Bush won it.
WALLACE: Bush ahead, yes.
TOURE: Right. "As I wrote" -- Christopher from Sante Fe: "As I wrote to Dick Cheney on Thursday, while I congratulate you on your victory, let me remind you that over 55 million Americans did NOT give you a mandate and if you don't want to keep those -- if you don't want those 55 million out in the states demonstrating you would be well advised to keep that in mind."
Jim from Arkansas: "No, it didn't change my mind. This country was founded on much higher moral standards than has been evident in it for some time. Our country may just be turning back toward its roots. If you and your friends think Canada is more appealing, then take off. You, your friends, nor your liberal view will be missed."
WALLACE: Bye-bye.
TOURE: Cary from Cumming, Georgia: "The words of Thomas Jefferson ring in my ears, when he was asked hundreds of years ago, what do we have and he replied, a democracy, madam, if you can keep it. Now one party has total control of the government, the House, the Senate, the judiciary and the executive. This nation's in great trouble."
And Jamie from Mesa, Arizona: "I am stunned by how incredulous people are at the Bush -- that Bush won the election and that Americans have moral values." I think she's talking directly to me. "You might consider me conservative from where I stand, but I'm just a normal, run of the mill American. I'm not evangelical nor can I be called part of the religious right. I simply wish my American values to mean that my child can grow up in a safe, moral society that values life and loving families."
That's the electorate.
WALLACE: Spirited feelings out there.
TOURE: Absolutely.
HEMMER: You want a number? I'll give you a number.
TOURE: Tell me.
HEMMER: Cnn.com, which has gotten a lot of attention for excellent coverage over this past election.
TOURE: Great.
HEMMER: Great kudos. It's a great Web site.
WALLACE: Yes.
TOURE: Yes.
HEMMER: Three hundred and fifty million page views on Tuesday night.
WALLACE: Wow!
HEMMER: Beat that.
TOURE: Yes.
WALLACE: It's a record, I'm sure, for cnn.com.
TOURE: Yes.
(CROSSTALK)
TOURE: That's massive.
HEMMER: Thank you, Toure.
In a moment here, any moment, in fact, we're expecting the latest jobs report out, the first since the election. Andy has that at 8:30 straight up, three minutes from now.
Also, it's up to jurors to decide the fate of Scott Peterson. But the judge has already decided that you will not see the verdict. We'll tell you why as we continue, after this.
(COMMERCIAL BREAK)
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