Return to Transcripts main page
American Morning
NYT: Weiner's Wife is Pregnant; America's Covert War? Arizona Burning; ROTC Cadets Hit by Lightning; Dangerous Heat Hits East Coast; The Battle Over America's Debt Limit
Aired June 09, 2011 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CHRISTINE ROMANS, CNN ANCHOR: U.S. fighter jets and armed drones reportedly intensifying a covert war against al Qaeda in Yemen. "The New York Times" reported that the Obama administration is very concerned about the terror group getting organized and rising to power there on this AMERICAN MORNING.
KIRAN CHETRY, CNN ANCHOR: Good morning to you. Thanks so much for being with us. It's Thursday, June 9th. Welcome to AMERICAN MORNING.
I'm Kiran Chetry.
We have Christine Romans with us, and Ali Velshi is taking a little time off today.
ROMANS: Got the day off. He was in Chicago last night for the history museum, a big event there. So, he'll be back to report on that for us tomorrow.
But up first, the United States reportedly ramping up air strikes against al Qaeda in Yemen. According to "The New York Times" the Obama administration waging a covert war on militant targets using fighter jets and armed drones, the goal to stop al Qaeda from rising to power.
CHETRY: Barbara Starr is live for us at the Pentagon this morning and Peter Bergen, CNN's national security analyst also joins us from our Washington bureau. Barbara, just break down for us what you've been told about what this could mean.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to both of you. What we know is this is a covert war being led by the Pentagon, by U.S. military forces. Some support from the intelligence community, the CIA, but make no mistake, this is led by the U.S. military. Later this morning, Leon Panetta will be on Capitol Hill for his confirmation hearing as the new secretary of defense.
Yemen may emerge front and center. Panetta has already told the committee in advance of the hearing about his concerns about al Qaeda in Yemen. Let me read a little bit to you about what we have obtained about what he has said about all of this. He's talking about AQAP, al Qaeda in the Arabian Peninsula. That is al Qaeda in Yemen.
He says, quote, "AQAP is intensely focused on conducting a near-term attack against the United States and poses an immediate terrorist threat to U.S. interests and the homeland. Al Qaeda and its affiliate, AQAP, are still actively plotting attacks with the principal goal of successfully striking the U.S. homeland. That is why this is so important.
Al Qaeda in the Arabian Peninsula has already proven it can reach out and touch inside the United States. You only have to look at the 2009 Christmas day so-called underwear bombing attack attempt against that Detroit airliner, AQAP, Al Qaeda in Yemen backing that. That is why there is so much concern. That is why this covert war is ramping up.
ROMANS: Peter Bergen, let me ask you about the president of the country.
Yemen's president is in Saudi Arabia recovering from surgeries because of being burned, shrapnel a collapsed lung in an attack suffered last week. Him being out of the country, how does that play into the U.S. ability to do this in Yemen?
PETER BERGEN, CNN POLITICAL ANALYST: Well, I think both the United States and Al Qaeda in a sense are taking advantage of the power vacuum that exists in Yemen. Al Qaeda obviously thrives in chaotic environments. And there's some reporting indicating that they have taken a town in southern Yemen. They're unlikely to take power in the country.
They're a relatively small group. But similarly the United States sees that Al Qaeda is taking advantage of the situation and is essentially going forward with a set of policies including drones and unusually fighter jets essentially to make sure that they can't take control.
I don't think they're asking anybody's permission for this. The agreement that exists with Saleh is now sort of moot in a sense. I think the post-Saleh era has begun in Yemen. He's much more severely injured than was initially portrayed. This is not a few scratches. He said he was going to step down three times already. And now he's been forced out of the country.
And so clearly this is an effort as Barbara was reporting, to make sure that this group, which poses quite a threat, you know, is really ground down in the next several months.
KIRAN CHETRY, CNN ANCHOR: Just quickly, both of you can answer this, Peter first. What about the worries of the U.S. taking unilateral action yet again in a country like Yemen as it relates to the rest of the Middle East and the other three wars we're in right now.
BERGEN: I think it's sort of a nonissue. People in Yemen have got -- this is essentially three civil wars going on simultaneously. And they've got bigger things to worry about than the United States right now. It's interesting as Panetta goes to testify on the hill that the United States military is involved in five separate wars in five Muslim countries, fairly unusual moment in American history.
STARR: I think that peter's absolutely right. Panetta's going to make the case that Al Qaeda in Yemen does pose a direct threat to the United States and that's what makes this situation so different.
ROMANS: Barbara Starr and Peter Bergen, thanks so much for illuminating us on that story out of Yemen today.
CHETRY: A lot of new developments in the Anthony Weiner sexting scandal as well as more house Democrats turn their backs on the congressman, six calling for him to step down. "The New York Times" is also reporting that his wife Huma Abedin, a top aide to Hillary Clinton, is pregnant. A source also says that Weiner called former president Bill Clinton to express his regrets for his actions.
ROMANS: All this happening as this has surfaced, the explicit photo of Anthony Weiner's anatomy because of "Opie and Anthony." They captured it off of Andrew Breitbart's phone. He said he would never post the picture himself and insists he wasn't in on it.
(BEGIN VIDEO CLIP)
ANDREW BREITBART, BIGGOVERNMENT.COM: My website refuses to public this photo. They have admitted that they took this photo surreptitiously. They said they did it without any knowledge. They even said that there were no cameras there.
(END VIDEO CLIP)
CHETRY: That's a chance you take, though, when passing around an iPhone with the picture. Kate Bolduan with more on the growing list of representatives asking Weiner to quit the house.
KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: The deafening silence from Democrats most significantly Congressman Weiner's fellow Democrats in the house has now turned into a concerted effort to push him out. Half a dozen house Democrats are saying they can't ignore this scandal anymore. It includes Allyson Schwartz, Mike Ross, Maine Democrat Michael Michaud, Indiana Democrat Joe Donnelly who is running for Senate. All coming out to say simply he should resign. Listen here to Congresswoman Schwartz.
(BEGIN VIDEO CLIP)
REP. ALLYSON SCHWARTZ, (D) PENNSYLVANIA: Yes, and this is very personal decision as an individual member of congress, but I was absolutely appalled when I heard about the behavior actions of Congressman Weiner. I think it's inappropriate behavior and violates the confidence and trust that his constituents should have in him, and I call for his resignation.
(END VIDEO CLIP)
ROMANS: Congresswoman Schwartz is interesting because she's the head of recruiting efforts for house Democrats in the 2012 election cycle. That public statement is part of a new step up effort to force Weiner out, as one Democratic source put it to me. It's a signal that represents a growing concern within the caucus. The scandal is not only a distraction from the issues Democrats want to be talking about but it's becoming a campaign issue which is a big problem which is why we're seeing a turn of the tide.
CHETRY: Another potential problem reporting out there that Congressman Weiner exchanged e-mails with a porn star, reportedly coaching her about what to say if asked about their relationship and also reportedly offering her to be able to talk to someone on his team if she need a professional PR person. How could this potentially affect the ethics investigation if this is true?
BOLDUAN: Right. If this would check out in that there was PR help provided by the congressman's actual congressional office, one of the issues and ethics rules that really a lot of people are pointing to is the rule having to do with use of official resources. Nancy Pelosi, the democratic leader, even when she called for this investigation, said that's one question she had, if Congressman Weiner had used official resources in his sends of lewd photos or inappropriate communications, calls, et cetera.
So that would be probably what they'd be looking for in investigating that element of this continuing to unfold story. So that's one question they still have to answer.
CHETRY: Well, the saga continues, unfortunately. Kate, thank you.
ROMANS: Roaring flames from a monster wildfire in Arizona forcing the mandatory evacuation of two towns in its path. Authorities asking the residents of eager and Springerville to get out while they can. Crews expect slightly calmer winds today will help them make progress in fighting this fire which is now officially zero percent contained.
CHETRY: Delta backing down on extra bag fees for troops after two U.S. soldiers posted a video complaining their unit was hit with a $2800 baggage fee. The airline was accused of being unpatriotic. It has since apologized and said that they won't charge soldiers for extra bags. We'll hear what the soldiers said and what people thought about it in a live report from Hartsfield Jackson airport.
ROMANS: ExxonMobil announcing it found a new source of oil in the gulf of Mexico. It could yield up to 700 million barrels making it one of the largest discoveries in the gulf in the past decade. Analysts say this proves that there's still untapped sources in the Gulf of Mexico.
CHETRY: New developments in the Casey Anthony murder trial. The young mother searched chloroform 84 times in the months before her 2- year-old daughter disappeared. What does this do for the defense's case? We'll talk about it coming up.
ROMANS: Anthony Weiner's wife reports now that she's pregnant. She's been silent about her husband's sexts with other women in this controversy. We'll look at the woman who is a superstar in her own right in the Democratic Party.
And our question of the day, what would you do if you were Congressman Weiner's wife. Chris said on Facebook, "I'd leave him. Trust is the most important thing in the marriage. Break that trust and I'd be long gone." Others saying this is none of our business. Send us an e-mail, a tweet, we'll read your thoughts later in the program.
(COMMERCIAL BREAK)
ROMANS: In the Casey Anthony murder trial, chloroform is now at the heart of the prosecution's case. The young Florida mother is charged with killing her two-year-old daughter. Yesterday a forensic expert who examined Anthony's home computer testified that he found 84 internet searches for the word "chloroform" and how to make it.
CHETRY: Here to talk about the latest evidence and how it might impact her case is CNN legal analyst Sunny Hostin. You've been following all of the ins and outs of this case. How does the defense even begin to explain away these 84 searches? Because they did put -- the prosecution yesterday did explain why it would be difficult even though that was a shared computer, for anybody in Casey's family besides Casey to be the one doing those searches.
SUNNY HOSTIN, CNN LEGAL ANALYST: That's right. No one else was home, at least according to the prosecution. I think that the defense has done a really good job of cross-examining these witnesses and injecting reasonable doubt, but this was a big one because people feel really comfortable with computer forensics. It is like watching a videotape or listening to an audio tape.
They'll have to put her on the stand, which I have said all along, but to explain 84 searches for chloroform. She also searched how to make chloroform. She also searched shovel allegedly. It was Casey Anthony. She searched so many damaging things I think they've got to give this jury an explanation. It seems to me like the tide has turned. At least according to my Facebook page and twitter. Everyone is now saying uh-oh, not only is she a liar, she premeditated this. Because she's searches occurred in March and the baby allegedly died in June.
ROMANS: That's what the prosecution is hoping the jury takes from all this, here is this woman who is researching -- or her computer shows research about neck breaking and these other violent acts and they're trying to portray her as one who can kill her child.
HOSTIN: A premeditated cold blooded killer. Before this that was really not clear.
CHETRY: Is she facing the death penalty?
HOSTIN: She is facing the death penalty. That is because they charged her with intentional murder, first degree murder.
CHETRY: That is going to be tough. They are also apparently alleging this witness was that this information was attempted to be purged from the hard drive, right, but they recovered it.
HOSTIN: It was deleted.
CHETRY: Defense can't say, why would she search all this stuff knowing it could be recovered? HOSTIN: That's a huge takeaway for everyone that's been watching this trial. Your digital print is just always there. You can't really delete it. I used to work with forensic investigators. And one of them was able to retrieve images off of a computer that had been put -- I guess it was put in water, it was shot at, the computer laptop and even burned and they were still able to retrieve images.
And so, bottom line is, you know, it's always there. And in Casey Anthony's case, this was on the Anthony home computer. We haven't even gotten to her laptop yet.
ROMANS: The significance of chloroform. We think -- what are they trying to show for the chloroform, that she knocked the child out? That -- and also, there's some -- I guess I'm confused about chloroform is something that is detectable when a body is decomposing, too.
HOSTIN: That's true. But what they are think or alleging -- at least we learned this in their opening statement, was that she used chloroform to knock her daughter out. And there are -- there is evidence about chloroform being found in the trunk of her car. So, they're really trying to connect the dots from the trunk to her yard to Casey Anthony to the computer.
I think it's actually quite compelling because it's a circumstantial case. So, I've always said, in a circumstantial case, how do you prove something like that? No one is going to testify that they saw Casey Anthony use chloroform on her daughter. No one is going to testify that they saw Casey Anthony put her daughter's dead body into a trunk.
But when they're connecting these pieces like this, computer searches to the trunk to Casey Anthony being the only one at home, that makes a really compelling, I think, argument. As a prosecutor, I used to always argue, you know, in circumstantial cases, well, if you heard a weather report that it was snowing and then you went to bed and you woke up the next morning, there's a blanket of snow -- you didn't see it snow, but do you have a reasonable doubt that it snowed? That's sort of what a circumstantial case is about.
Right now, the weather report is looking really bad for Casey Anthony.
CHETRY: It really is, especially with some of these forensic tie-ins.
ROMANS: After a very strong opening argument by her defense attorney.
HOSTIN: Yes.
CHETRY: We'll see what happens. Sunny is saying she'll need to go on the stand. We'll see if that happens.
HOSTIN: I think she will. I think she will. Prosecution's case ends June 17th. And so, we may be seeing Casey Anthony on the witness stand in the next week.
ROMANS: Wow. CHETRY: Sunny Hostin, legal contributor for "In Session," former federal prosecutor, good to get your take this morning, thanks.
ROMANS: Up next on AMERICAN MORNING, if you own an SUV, you may be safer than ever. We're going to tell you why.
(COMMERCIAL BREAK)
ROMANS: It's 19 minutes past the hour. Checking -- minding your business:
Concerns of an economic slowdown pushed stocks lower again yesterday. The three major markets were down for the sixth day in a row. The Dow dropped 22 points, the NASDAQ sank 26 points, and the S&P 500 was down five points at the close.
Any Americans find themselves out of work after July 1st could stop receiving unemployment checks by the end of the year. That's because most people will likely receive jobless benefits of just 26 weeks of state unemployment checks. The deadline to file for extended benefits expires this year.
Citigroup is confirming that hackers may have accessed the online account information for about 210,000 of its customers. The attack happened back in May. Citigroup says other information like birth dates and Social Security numbers, though, not compromised.
SUVs are now safer than ever, thanks to improvements in stability control that keep the vehicle from rolling over. According to the Insurance Institute for Highway Safety, the death rate for SUVs has dropped 26 percent in about 10 years.
And check this out -- Steve Jobs has any plans to build a new spaceship-looking headquarters in Cupertino, California. The circular building with a massive interior court yard would house roughly 12,000 employees.
AMERICAN MORNING will be right back after this break.
(COMMERCIAL BREAK)
CHETRY: You can see through that pea soup, that's New York City today, 78 degrees right now.
ROMANS: It's warm pea soup.
CHETRY: Oh, yes. It's going up to 96. It will be a scorcher. Mostly sunny -- as well as a heat wave sweeping through much of the country.
ROMANS: Heat advisories in a lot of places. Some of these heat indices are 100 and above.
CHETRY: Yes.
ROMANS: So, watch out, folks. It's going to be hot out there today. The Anthony Weiner sexting scandal taking the most dramatic turn yet. "The New York Times" is now reporting that his wife Huma Abedin is pregnant with their first child.
CHETRY: And she is a darling in the Democratic Party and has stayed silent about her husband's behavior so far.
Mary Snow joins us with more on this situation.
You know, it's private life turned public in a very, very difficult circumstance.
ROMANS: She's a very private person. This must be just horrifying for people close to her.
MARY SNOW, CNN CORRESPONDENT: Yes, and now with this increased scrutiny, with this latest news by "The New York Times." So far, she appears to be sticking by her husband. She is keeping a distance.
As the pressure mounts on her husband to resign, Huma Abedin is on a job in the Middle East, then off to Africa.
(BEGIN VIDEOTAPE)
SNOW (voice-over): As Congressman Anthony Weiner fights for his political life in New York, his wife, Huma Abedin, continues working thousands of miles away, seen here in Abu Dhabi with her boss, Secretary of State Hillary Clinton. The 35-year-old Abedin, one of Clinton's top aides, was noticeably absent from her husband's side when he admitted having sexually explicit communications with several women and lying about it.
But "Washington Post" national political reporter Nia-Malika Henderson quotes friends of Abedin as saying: don't read too much into her absence.
NIA-MALIKA HENDERSON, WASHINGTON POST: Well, her friends say this is obviously a bump in the road for her marriage. She's very much committed to her husband. She loves her husband and she wants to work it out.
SNOW: Abedin is a Muslim who grew up in Saudi Arabia. Weiner is Jewish and raised in Brooklyn. He has a reputation for being brash and relishes the spotlight. Abedin shies from it and is described as very private. A rare exception was in 2007 when "Vogue" magazine profiled her.
She's most often the person in the background, constantly at the side of Hillary Clinton and the person who has her ear. Abedin started as a White House intern in 1996 and has worked in several capacities since then. She was on the campaign trail with Mrs. Clinton in the 2008 presidential election and now serves as deputy chief of staff to Secretary Clinton.
And she's become more than a trusted aide says a longtime friend of Abedin and Clintons who describes her as a second daughter to the Clintons and a sister to Chelsea. The former president even officiated at the ceremony when Weiner married Abedin last July.
And while Abedin hasn't sought the spotlight, she has made a name for herself in Washington.
HENDERSON: She comes across as very alluring and glamorous. You know, in a town, you know, like Washington, that is very conservative, she brings these almost Hollywood glamorous good looks and a rolodex that is filled with celebrities and political titans across the globe.
(END VIDEOTAPE)
SNOW: And she's so private. A longtime friend didn't want to be named, but said the people around her will do everything they can to protect her.
ROMANS: Yesterday, James Carville was telling us that a part of the problem for Anthony Weiner is that she is so liked that they now see him more as a -- I can't remember exactly the word that he used. That she is so liked that it's almost worse for him.
SNOW: Right.
ROMANS: So, they're not rallying around him, they're rallying around her.
SNOW: And he mentioned, he used the word livid, when he said that a number of people called him livid at Anthony Weiner for putting her through this.
CHETRY: Well, it's -- thank you, Mary, by the way. It's a rare that there's ever a unanimous decision on "The View," but the ladies all agreed on what should be Anthony Weiner's next move. Take a look.
(BEGIN VIDEO CLIP)
JOY BEHAR, "THE VIEW": I think he should resign --
UNIDENTIFIED FEMALE: Oh, yes.
BEHAR: -- because he's a distraction. Get out now, Anthony. Out.
ELISABETH HASSELBECK, "THE VIEW": He is so self-empowered that he thinks -- he thinks that it's actually good enough that he said, "I'm sorry for doing what I did." Well, congratulations for being practical. That's what you're supposed to do.
WHOOPI GOLDBERG, "THE VIEW": You got to go, Anthony! Bye-bye.
(END VIDEO CLIP)
ROMANS: The revelation, according to "The New York Times" of the pregnancy makes it interesting as well because it softens the view of this marriage. But at the same time, it also shows Anthony Weiner and his sexting activities at a time when he's got a wife at home who is, you know, going to bear his first child.
So, on the one hand, it sort of humanizes the relationship. On the other hand, it does make him look worse.
So, that brings us to our question of the day. What would you do if you're Anthony Weiner's wife?
Here are some of your responses for us. PC176 in Twitter, "We all make mistakes. Treatment, honesty, time. It's her choice."
CHETRY: And Shelly (ph) writes on Facebook, "Some say stay for the family. But when someone's behavior is like this, the so-called family life turns into pure hell, especially for the kids. I would cut my losses and run early on. Mr. Weiner has poor impulse control if any at all and people like that don't change."
ROMANS: Lisa on Facebook says, "I know many people who have situations like this. This stuff happens all the time. I'm sure they will argue for a while that they're going to get over it. She needs to give him the freedom to do the right thing himself. And if he can't, she should live."
CHETRY: As always, thanks for your input this morning.
Meanwhile, we're crossing the half hour, time for a look at your top stories.
"The New York Times" is reporting the U.S. is conducting a covert war against al Qaeda operatives in Yemen, using fighter jets and armed drones to step up airstrikes against militant targets. In order to keep the terrorist organization from organizing and gaining more power in Yemen.
ROMANS: Residents of two eastern Arizona towns are heading for safer ground this morning as a huge wildfire continues to spread.
Mandatory evacuations were ordered for the towns of Eagar and Springerville. Officials are hoping that calmer winds today are going to help crews make progress this fire, which is right now zero percent contained.
CHETRY: Seventy seven Air Force ROTC cadets were struck by lightning at a military base in Mississippi. Officials say that they're all responsive and in stable condition this morning. The U.S. Air Force ROTC uses Camp Shelby in Mississippi as its summer training site.
ROMANS: The entire east coast is broiling. Dangerous heat this morning from Texas to New England. Rob Marciano tracking all that extreme weather from Stone Mountain, Georgia. Rob, we'll set more records today you think, right?
ROB MARCIANO, AMS METEOROLOGIST: Yes, for sure. Some folks will cool down today. Not here in Atlanta. We're just outside of Atlanta in Stone Mountain, which is a huge tourist attraction. Behind me is the largest exposed piece of granite in the world. And in that are, well, three highly ranked generals, Jeff Davis, Robert E. Lee and Stonewall Jackson. So, folks, we talked to them. They come out here and try to exercise, a lot of them are coming out here earlier to do it because of the heat. Check out some of these numbers as far as what we saw per record highs yesterday, over 99 degrees in some spots, Newark, Baltimore, 99; Syracuse, 97; LaGuardia seeing 97 and these temperatures measured in the shade without any humidity. So if you're out in the sunshine, it feels a whole lot hotter.
Here's where the advisories and the warnings are today. The I-95 Corridor from D.C. to Baltimore, feel it in New York excessive heat warning in Philadelphia for heat indices that will easily be up and over 100 degrees. Take care of your neighbors and try to stay cool and hydrated.
We do have thunderstorms, some of which are severe across parts of upstate New York and northern Ohio. That's the leading edge of the cooler air. Kind of the back side is getting some thunderstorms across eastern New England. So Boston won't be quite as warm today.
But watch out for thunder and lightning tonight as that storm pushes off to the east. Look at Chicago, 64 degrees. Yesterday, the last couple of days, they saw a record breaking high temperatures as well. So there's the cool air not getting to D.C. or New York today, but it will tomorrow.
It will not get to Memphis, to Atlanta, to Jackson, Mississippi and to Little Rock, Arkansas where temperatures will easily stay into the 90s not only today, but through tomorrow and likely through the weekend. So this is extraordinary for this time of year, guys.
These are temperatures that we are likely to see in the middle of July or August rather than the middle of June according to the calendar, the official calendar, of course, summer doesn't start for another week or so, but it's been feeling like summer at least across the southeast for two weeks already.
There have been some heat related deaths because of this. Don't take this lightly. Check on your neighbors for sure, elderly especially and those with medical issues. And you yourself stay hydrated and out of the sun as much as possible. Guys, back up to you.
ROMANS: Yes, if you need to find your neighborhood cooling center, find your neighborhood cooling center. Please because we know what this kind of heat can do. Thanks, Rob.
CHETRY: Thanks, Rob. Right now in Washington, big decisions need to be made that affect the economy, your money, your chances for a job. For instance, a couple of weeks ago the federal government maxed out its credit. We call it the debt ceiling.
The White House wants to bump up its spending limits, but Republicans so far have been rejecting that request. So today Vice President Joe Biden will be meeting with top lawmakers pushing for a deal.
Joining me now is Ohio Democratic Senator Sherrod Brown, a member of the Senate Appropriations Committee. Thanks for being with us this morning, Senator.
SEN. SHERROD BROWN, D-OHIO: Good to be with you. Thanks, Kiran.
CHETRY: So last week Speaker Boehner said it was time for President Obama to personally get involved in these talks as well. What do you know about where they stand? Optimistic they can make a deal?
BROWN: Well, I hope that Speaker Boehner acts like the adult in the room and does what we have to do in this country. During the Bush administration, seven times the debt ceiling was increased.
There were no - there's none of this histrionics tearing your hair out. We're going to shut the government down. We don't care what happens to financial markets kind of behavior.
The problem though is that Speaker Boehner and Leader McConnell in the Senate. Republican Leader McConnell have said that the privatization of Medicare. They're turning Medicare over to insurance companies has to be part of this negotiation.
And that's just not acceptable to change -- to dramatically change Medicare and turn it over to insurance interests. That shouldn't be the price for raising the debt ceiling, period.
CHETRY: I think -- would you agree to the consensus among most in Congress is that they will vote to raise the debt ceiling, obviously. They have to do that, but do some realistically some strings need to be attached to this?
BROWN: Well, there will be strings attached and that's fine. But, I mean, first of all, by cutting spending is not the only issue in this town. The most important thing to do is keeping our focus on how do we create jobs?
You can't cut your way out of this budget deficit. You got to have economic growth and this whole focus of conservative politicians on cutting without investing in the future without job creation is wrong headed.
But in the same time, though, the strings attached cannot be Medicare. I have on my web site sherrodbrown.com, 20,000 people have already come on and signed. I urge others to sign - working with us. A letter we're sending to the vice president saying that Medicare has got to stay off the table.
We're not going to use -- the Republicans for some time have tried to privatize Medicare as they tried to privatize Social Security. They can't use this debt ceiling vote to turn Medicare over to insurance interests. It's simply too good a program for the American people to do that.
CHETRY: I want to just put a hold on talking about the debt for a second. I want you ask because you just said right now that this is the wrong time to cut.
Obviously, we've seen the economic numbers that show the trouble that we've had. We've had weak jobs growth. In May, I believe we only added 54,000 jobs. We saw unemployment tick off 9.1 percent now. We're dealing with some problems in the housing market as well and there were Republicans saying this is proof that stimulus spending didn't work.
BROWN: Well, it's not. I mean, when President Obama took office, we were -- we had the largest budget deficit in American history inherited and we were losing 700,000 jobs a month, 700,000 jobs every month.
Those months he took over. Now, we've had job growth for the last 13 or 14 months not nearly as much as we hoped. We've had job growth. For the last year, we've had job increase in manufacturing for the first time since 1998 --
CHETRY: All right, well, let me ask -- so you believe that the stimulus measures are working at least in part, why aren't Democrats pushing for another stimulus then?
BROWN: Because the Republicans would never pass another recovery act, any kind of stimulus like that. We need to enforce our trade laws. That can help create jobs. We need to take away tax breaks that send jobs overseas.
If a company shuts down in Youngstown, Ohio and goes to Shanghai, they can deduct their moving expenses against the federal taxes --
CHETRY: I know that -- I understand what you're saying. But Republicans will say and Christine will be speaking to your colleague, Jeff Sessions in a moment and part of that is that we haven't made it a hospitable business environment either which is why they want to cut corporate taxes.
But I just have to ask you quickly because we know that some cuts have to happen. What programs would you be willing to cut to try to get a handle on this?
BROWN: I think you've got to put defense on the table. The Republicans are asking for increases in defense while they're cutting head start and cutting Pell grants. It won't close the tax loopholes for the oil industry.
I would start with those. We can do generic, biologic generic drugs saving billions of dollars in Medicare and other health care expenses. We can do re-importation and negotiation of drugs the way the Veterans Administration does it now. That will save tens of millions of dollars over the next 10 years.
We can do a lot of things like that, but the Republican focus, they take defense off the table. They want to continue to do more tax cuts for the wealthy. Today, I believe, is the 10-year anniversary of the Bush tax cut for the wealthy that began to get us turned from the biggest budget surplus in history to the biggest budget deficit in history.
The Republicans in the House want to do the same things that got us into this mess. More tax cuts for the wealthy and more deregulation of Wall Street. That hasn't worked over the last 10 years. It won't work in the next 10.
CHETRY: All right, well, it's great to get your take this morning. Senator Sherrod Brown from Ohio, from the Russell Rotunda this morning. Thanks so much and of course, we're going to get the GOP perspective after the break.
ROMANS: That's right with Senator Jeff Sessions. That's coming up in two minutes.
(COMMERCIAL BREAK)
ROMANS: Good morning, Washington, D.C. Right now, the weather is fair, 82 degrees. Later, it will be much warmer, mostly sunny and 97.
Before the break, we talked to Democratic Senator Sherrod Brown about the political fight over raising the limit on the national debt.
We want to get the Republican perspective now. Joining me from Washington live is Alabama Senator Jeff Sessions. He's the ranking member of the Budget Committee. Senator, thank you for joining us here today.
SEN. JEFF SESSIONS, R-TEXAS: Thank you.
ROMANS: You're not very optimistic that you're going to make progress on a deal with the vice president and his group today, are you?
SESSIONS: You know, I'm just -- I don't think we can count on it. Those groups haven't been so effective. I believe we should go through the regular order process for budgeting in the Budget Committee. But Jon Kyl and some of the members that are part of that are good people. So we can hope that something good will come out of it.
ROMANS: You know, the bond market, when you look at the markets, the markets are telling us that they think that the debt ceiling is going to be raised.
The question is the process of how do you get to that. What kind of cuts do you need to see? Do you think we'll be able to raise that debt ceiling and it will buy us time through the end of next year?
SESSIONS: Well, I think the bond market would be awfully disappointed if the debt limit were raised and we did not reduce spending and get a change that trajectory of debt that we're on, which is clearly unsustainable.
Last week's economic numbers were really troubling, with unemployment up, manufacturing down. The fed reported just yesterday that a number of their regions had negative growth compared to the last couple of months.
ROMANS: Now, you see now you're saying --
SESSIONS: -- is our situation. ROMANS: Your friends across the aisle though will use those same statistics to say this is why we can't be cutting too deeply and too indiscriminately because if you cut now, you cut too deeply now, you hurt the economy in the near term and longer term that hurts your chances of deficit reduction, getting the debt under control.
SESSIONS: Christine, this is a key question you just raised and we need to talk about. What we know is for the last 2-1/2 years we've borrowed and we've spent money we did not have --
ROMANS: To recover from a huge, huge financial crisis that nearly took down the American economy.
SESSIONS: We borrowed money we did not have in large amounts from the future to spend today to artificially stimulate this economy and it has not worked. We've had the lowest bounce back we've ever had if a major recession. It's very, very dangerous. We cannot continue to borrow and spend. This is what is threatening the American growth and the economic studies of Rogoff and Reinhart are when you reach 90 percent of your GDP, your economy, the debt equaling that, then you lose one percent of economic growth --
ROMANS: Yes You're quote a Ken Rogoff and Carmen Reinhart wrote the fabulous book, "This Time is Different."
SESSIONS: Yes.
ROMANS: They've studied all of these financial crises. But even debt hawks --
SESSIONS: But what I'm saying to you -- so don't you think that that means that we have no choice but to figure a way to have stability in our economy and not continue to run up debt?
ROMANS: So let's talk about the jobs that we've been creating -- some 50,000 jobs this last time around. The reason why there weren't more created is because, frankly, you have state budgets in crisis, local budgets in cries, stimulus money running out and they are slashing public sector jobs. For each one of those public sector jobs, according to Moody's Analytics, Senator, there's another 1.3 private sector jobs.
Can we afford to keep seeing all of these jobs disappear, and will the private sector magically just recover around it to absorb them?
SESSIONS: If we get this economy on a sound footing, the private sector will recover. Mr. Bernanke says we have to have 2.5 percent economic growth to stay level with jobs. Last quarter was 1.8 percent economic growth. The borrowing and spending, the idea of Keynesian stimulation of the economy is not working. We've already spent far too much. This debt will be a burden on us for generations to come and that's why all the economists are telling us you've got to get off this path.
ROMANS: Yes. You know, somehow I knew you'd go back to the Keynesian argument. Why did I know you would go there? SESSIONS: Well, I mean, it's really a national debate, isn't it, Christine?
ROMANS: It is.
SESSIONS: We're talking about that. Can we artificially, by borrowing money from the future, spending it today, generate growth? Well, maybe sometime you can make a dent with it, but as a systemic policy it's disastrous and it'll put us in a position that we can't -- the debt becomes so large it begins to pull our growth down, which is happening today.
ROMANS: Yes. And even the budget hawks, I will say, the people who are concerned about budgets and for years who've been saying we've got to get this under control, it's easier to get it under control in good times, isn't it? But when it's really bad times like it is in an economy that's weakening, even now they're concerned about too much slashing indiscriminately and not in a smart way, could be dangerous to the recovery going forward.
And what they're worry about, I'll be honest with you, the number crunchers, what they worry about is that politicians are not very good money managers. That's why we have been -- had to raise this thing over and over and over again and now just happens to be really tricky time, Senator.
SESSIONS: Well, you're right. Politicians are not very good at spending money and we need to send them less and they need to contain our spending and spend less. That's for sure.
I think if we do that -- you know, the International Monetary Fund told the Brits, don't change your policy. There were protests that you shouldn't cut spending as much as they're doing today. But the International Monetary Fund says, no, stay the course. You'll be -- this is the sound way to get your economy under control.
ROMANS: Yes.
SESSIONS: We increase spending in the last two years, nondefense discretionary spending 25 percent and that does not --
ROMANS: And over the past 10 years we've given a lot of money back to people in tax cuts. The 10-year anniversary of the first Bush tax cuts, too. So you'll have your colleagues on the other side of the aisle arguing about how that, you know, how that -- given we didn't have the money to do that, too.
So, we have to leave it there.
SESSIONS: OK.
ROMANS: Senator Sessions, I appreciate it.
SESSIONS: Thank you.
ROMANS: Come back because there's going to be so much more to talk to -- talk about as we had to August 2nd.
Thank you, sir.
SESSIONS: There's a lot to do. Thank you.
ROMANS: There sure is.
CHETRY: Still ahead, a nationwide fury. Delta hands returning soldiers a $2,800 bill for baggage. They're backpedalling today after a YouTube video goes viral.
ROMANS: Oh, yes. That's a great story.
Also, Nasdaq -- you can tell I'm a business reporter.
CHETRY: Oh, wait! It is Nascar!
ROMANS: Nascar! It's Nascar! Can you tell I've spent too much time on Wall Street?
Nascar goes tailgating. Next hour Nascar royalty Kyle Petty drops by.
Forty-nine minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: It's 51 minutes past the hour. Here are your morning headlines.
"New York Times" reporting the U.S. is conducting a secret war in Yemen against al Qaeda, using fighter jets and armed drones to step up air strikes against militant targets, in order to keep the terrorists from organizing and gaining power.
Leon Panetta facing questions today from the Senate Armed Service Committee as his confirmation hearings for defense chief get underway. Panetta is expected to be easily confirmed as a replacement for Robert Gates who is retiring at the end of the month.
Six House Democrats are now saying it's time for Congressman Anthony Wiener to go because of his sexting. The "New York Times" also now reporting that his wife is pregnant.
The stock markets are poised to bounce back slightly following six straight days of losses. Right now, the Dow, Nasdaq and S&P futures are pointing up.
You're caught up on the day's headlines. AMERICAN MORNING will be back after a quick break.
(COMMERCIAL BREAK)
ROMANS: Baltimore, Maryland -- how do you say it, Baltimore, right?
CHETRY: Bal-mer.
ROMANS: Bal-mer, says the Marylander here. It's sunny and 89 right now. Mostly sunny. 102 later today. Wow. Hot, hot.
CHETRY: Balmy.
ROMANS: Balmy Baltimore.
CHETRY: Well, Delta is now backing down on some of these extra bag fees for troops. It comes after two U.S. soldiers posted a viral video that caused a PR disaster for the airline.
ROMANS: Martin Savidge is live at Hartsville Jackson Airport in Atlanta.
And Martin, this is the story of -- this is the battle, I guess, if you will, over the bags and the little guy won?
MARTIN SAVIDGE, CNN CORRESPONDENT: Right. Morning, Christine. Morning, Kiran.
Yes. What is the slogan that the Army has? I think it's "An Army of One." Well, in this case, it was an army of two and a video camera that made all the difference. Here's the story.
Thirty-four reserve soldiers coming back from Afghanistan on Monday. Tuesday morning, they're flying from Baltimore to Atlanta when they run afoul on the dreaded baggage fees. These were not guys coming back from vacation. They had all sorts of war stuff. Delta basically said, look, three bags free, the fourth you've to pay for. So, for the unit, the bill came to just over $2,800 which they had to pay out of their own pockets.
(BEGIN VIDEOTAPE)
SAVIDGE (voice-over): The Pentagon likes to say the U.S. has the best trained soldiers in the world. It turns out they're also pretty media savvy.
UNIDENTIFIED MALE: That is correct.
SAVIDGE: While on their flight to Atlanta, two of the soldiers recorded a video about their frustration and posted it on YouTube.
UNIDENTIFIED MALE: So, you're saying that our military travel orders authorized us to carry four bags, correct?
UNIDENTIFIED MALE: Yes, that is correct.
UNIDENTIFIED MALE: So, what happened to the soldiers that actually had four bags?
UNIDENTIFIED MALE: We had actually end up paying out of pocket, our own money, to allow that fourth bag to be taken on the plane.
UNIDENTIFIED MALE: How much did you pay?
UNIDENTIFIED MALE: Two hundred dollars per bag. SAVIDGE: Close to 200,000 hits later, and Delta was issuing an apology in the form of a blog, implying the soldiers had simply been misinformed. They could check four bags.
"We would like to publicly apologize to those servicemen and women for any miscommunications." The statement went on. "We are currently looking further into the situation and we'll be reaching out to each of them personally to address their concerns and work to correct any issues they have faced."
The statement appeared to do little to stem the withering fire of public outrage.
SALLY KROCHALIS, PASSENGER: It's unforgivable that Delta couldn't make an exception and cut these boys some slack.
SAVIDGE: Less than 24 hours later, Delta was in full retreat, abruptly changing its military baggage allowance, announcing the move in a press release. Delta Airlines today increased its free checking baggage allotment for U.S. military traveling on orders in economy class to four checked bags. And that is how two U.S. soldiers fought off an entire airline to win the battle of the bags.
STAFF SGT. FREDERICK HILLIKER, U.S. ARMY: Thank you. We're actually happy to be back to America. God bless America.
(END VIDEOTAPE)
SAVIDGE: I don't think there's going to be any medals awarded for this engagement. Maybe medallion status, we'll have to see. But certainly to many people these soldiers have always been heroes. But to many flying public members, they're even more so of heroes now as a result of that.
Kiran and Christine.
ROMANS: Martin Savidge. Thanks, Martin.
Everyone loves a good YouTube rant that really causes things to change, you know?
CHETRY: It's been the great equalizer in many ways, hasn't it? Giving voice to the people who were once voiceless.
ROMANS: It sure does.
Fifty-six minutes after the hour. Top stories, next.
(COMMERCIAL BREAK)
