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The Situation Room
Karl Rove's Fate in Question; Blackout in Baghdad; Vote In Iraq Tomorrow; Patrick Fitzgerald Profiled; Conflicts Over President's Teleconference
Aired October 14, 2005 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: It's 4:00 p.m. here in Washington. And you're in THE SITUATION ROOM, where new pictures and information from around the world are arriving all the time.
Happening now, Karl Rove's fate in question. The president's top political strategist testifies again in the CIA leak probe. This hour, the case, the possible indictments, and the impact on President Bush.
The Bush White House has seen better days. Could this president be the next comeback kid though? We'll take a closer look at the signs of a turnaround on the horizon that may or may not be there.
And early voting and violence. It's 11:00 p.m. in Iraq, just hours before the historic referendum on a new constitution. We'll go live to Baghdad on this election eve.
I'm Wolf Blitzer. You're in THE SITUATION ROOM.
Karl Rove's fourth grand jury appearance in the CIA leak probe is now behind him. But there's still plenty of anxiety ahead for Rove and for the Bush White House. The deputy White House chief of staff went into the courthouse today, knowing there's no guarantee that he won't be indicted.
Our national correspondent Bob Franken is on the case for us. He's watching what's going on. He's joining us live from the courthouse. Bob?
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Well Wolf, it's a widely discussed question in Washington, whether this legal investigation has been a distraction for the president's top personal adviser. If not, it certainly was today.
(BEGIN VIDEOTAPE)
FRANKEN (voice-over): He had no comment for reporters as he left. The president's chief political adviser Karl Rove saved his comments for the grand jury and spent more than three hours before a panel that knows him quite well, since it's his fourth time to testify.
Rove's lawyer says he volunteered to return after his last appearance, and special prosecutor Patrick Fitzgerald took him up on it, this time with no assurance that Rove would not be indicted, after "Time" magazine reporter Matthew Cooper told the grand jury about a conversation he had with Rove that had not been previously disclosed. Rove and the vice president's chief of staff, Lewis "Scooter" Libby, have been the two top administration figures whose names have come up repeatedly during this lengthy investigation into whether leaks that publicly identified undercover CIA operative Valerie Plame were illegal. Plame is the wife of Joe Wilson, who had been a harsh critic of the administration and its claims about Iraq's weapons of mass destruction program.
As usual, the White House refused to comment on the fact that the president's deputy chief of staff had yet again appeared before the grand jury.
SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: The president has made it very clear, we're not go to comment on an ongoing investigation. What we're going to do is support the efforts of the special prosecutor.
(END VIDEOTAPE)
FRANKEN: While Rove had no comments, his attorney Robert Luskin put out a statement that followed Rove's departure from the grand jury. The statement reads: "The special counsel has not -- has advised" -- or rather, excuse me -- "has not advised Mr. Rove that he is a target of the investigation and affirmed that he has made no decision concerning charges. Special counsel has indicated that he does not anticipate the need for Mr. Rove's further cooperation."
Translate, number four was the charm, that it would be Karl Rove's last appearance before the grand jury. Now, comes the decision by the special prosecutor whether he's going to indict anybody and how high up those indictments might reach.
Wolf.
BLITZER: Bob, you reported he was before the grand jury for just more than three hours, although he was inside the building for about four-and-a half hours. Do we know what he was doing in that other hour that he wasn't in the grand jury?
FRANKEN: Waiting for the grand jury to begin its session -- they begin at 10:00 in the morning -- and talking to his lawyers, in all probability. There were some breaks, so he could do the same thing. But three and a half hours, or whatever it was, close to that, is quite a bit of time to be before a grand jury, particularly when you've been there three times before.
BLITZER: All right. Bob Franken, reporting for us. Thank you, Bob, very much. Let's get a little bit more insight into the Rove CIA leak case, the possibility for indictments.
Joining us, our senior legal analyst Jeff Toobin. What do you make of the fact that he was inside answering questions for more than three hours, maybe three and a half hours with no commercial breaks in between, if you will? That's a long time to be questioning him.
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: It's a very long time. Because, remember, we're talking about a grand jury. Only the prosecutor asks questions. And perhaps the grand jurors themselves ask some questions. There's no cross-examination. There's no other side in the grand jury. So, just to be answering questions from a prosecutor for three-plus hours, that's a very long time by grand jury standards. I frankly don't know what to -- inference to draw from the fact that it's a long time, other than that the jury, grand jury and the prosecutor still have a lot of questions for him.
BLITZER: I've spoken with some lawyers who have been in this kind of a situation, whether as criminal defense attorneys or as prosecutors, and you yourself are a former prosecutor. Very often, they say to me -- and we don't know if this happened this time -- the prosecutor sort of reading back statements that were made either from Rove during his three previous appearances or from others, and wanting to give him a chance, if you will, to clarify some of those earlier statements.
TOOBIN: That's certainly possible. What makes this situation so unusual is that Karl Rove is obviously a subject of this investigation. He is he one of the people under investigation. In such a circumstance, that person almost never testifies in any other case. A -- any lawyer of any competence would say if you're -- if you may be indicted, as clearly Karl Rove may be indicted, don't testify. Don't give the prosecutor the chance to preview your reaction to the evidence.
But because Karl Rove works in the White House and because the President Bush has said he wants everyone to cooperate, he's in a much more vulnerable position than a lower profile subject. So it's very hard to draw an analogy between this case and an ordinary grand jury investigation.
BLITZER: This special prosecutor, Patrick Fitzgerald, he's been on the case -- he's been investigating it now for almost two years. The grand jury is supposed to wrap up within a couple of weeks, by the end of this month. Give us a little timetable what you anticipate happening in the coming weeks.
TOOBIN: Well, you know, Pat Fitzgerald is a long-term professional prosecutor, not known for any political affiliation one way or another. So I don't think he feels any pressure to indict or not to indict. I think he wants to just go where the evidence leads him.
However, one thing prosecutors do feel is the pressure of time. They don't want to leave investigations open for a long time. So even though the October 28 deadline for the grand jury could be extended, or he could empanel a new grand jury, I am sure that Fitzgerald wants to wrap this thing up by the end of the month. So we should know -- not definitely, but should know, whether there'll be indictments or not by the end of the month.
BLITZER: One final question, Jeff. The fact that Rove was left, if you will, for last -- it looks like he may be the last witness; there may be some others -- what, if anything, should we read from that? TOOBIN: I don't think too much. Remember, just last week, Judith Miller produced some new evidence -- Judith Miller, the "New York Times" reporter who went to jail rather than cooperate with the investigation. She provided evidence of a new -- of some more -- an additional conversation that she had with the vice president's chief of staff, Scooter Libby.
I don't think that the fact that Rove is last or near last means he is more or less likely to be indicted, but it certainly does mean he's someone who's under the scrutiny of the grand jury and someone who is clearly sweating out the last few weeks of October.
BLITZER: Jeff Toobin, thanks very much.
It's hard to overstate Karl Rove's importance to the Bush administration, which is why the possibility of his being indicted sends shivers down many Republicans' spines.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The architect, Karl Rove.
BLITZER (voice-over): President Bush is upfront about Karl Rove's crucial role in his rise to power. Before Rove designed Bush's two winning presidential races, he was the boy genius, as the president calls him, behind Bush's two terms in the Texas governor's office. For nearly a quarter century, Rove has shaped Bush's politics and his policy, honing the president's message, cultivating support from conservatives, framing Bush's signature initiatives, to the delight of supporters and the dismay of many Democrats.
CROWD: Karl Rove has got to go, hey, hey, ho, ho!
BLITZER: Rove's talents, and his close relationship with the president, have given him tremendous clout in Washington. Some believe Mr. Bush wouldn't be in such a political hole right now if Rove hadn't been distracted by the CIA leak probe.
Still, it's hard for many insiders to imagine the president without his architect; or for that matter, a Rove-less Republican Party heading into next year's congressional election and the 2008 presidential race.
(END VIDEOTAPE)
BLITZER: The White House today is rejecting suggestions the administration is distracted by the CIA leak investigation.
Let's bring in our White House correspondent Suzanne Malveaux. What are they saying publicly and privately about this investigation today, Suzanne?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, it's very interesting, because we asked White House Press Secretary Scott McClellan several times whether or not the president had full confidence in Karl Rove. He said that this is in the context of an investigation and he can't specifically talk to that. What he did say is that he continues his duties.
He was asked again whether or not he is fully engaged in his duties. You know, he's supposed to be responsible for Hurricane Katrina recovery and a number other things at the White House and outreach. He said, again, he continues to do his duties. The White House can't be distracted by this. He is trying to emphasize that the president and the administration is very focused.
Quietly behind the scenes, Wolf, however, we talk to Republican insiders both inside and outside the White House, and they are clearly concerned about what is happening here. They see the fact that Karl Rove has spent a great deal of time before the CIA leak investigation, the federal grand jury. They feel that perhaps indictments could be coming very close and they're very concerned about a shake-up.
Wolf.
BLITZER: Suzanne, switching gears to the Harriet Miers' nomination for the U.S. Supreme Court, what's the latest on that front?
As you know, there are a lot of so-called smart people, veterans here in Washington who think it's only a matter of time before she either withdraws her name or her name is pulled, given the uproar especially among the right. What are they saying at the White House?
MALVEAUX: It's very interesting here, because when you talk to Republican insiders, they say there are a couple things that have happened here that have really made the Miers situation deteriorate.
They say, first of all, that the president just simply underestimated the amount of outrage and frustration from the conservatives.
Secondly, they say that normally the crisis management team that's in place really just is missing in action. They say Harriet Miers, who would normally be going through the checklists, is at the center of the controversy. They say Rove is distracted by the leak investigation. And they say one of their top people, Steve Schmidt , who normally handles kind of that rapid-fire response when things go wrong is spending the week essentially in Baghdad. That they don't have their team in place and they don't have that clear message that they're hoping for.
I talk to these Republicans who say, look, we don't care if she's an evangelical Christian; that's the wrong message here. They want to know how did she go from Democrat to Republican.
Having said all that, Wolf, however, they still believe this is not a dead nomination. According to one person, he says the bar is so low it's on the ground; Harriet Miers simply has to walk over it and not embarrass the president.
Wolf? BLITZER: All right. Suzanne, thanks very much.
And by the way, add Rick Santorum's name to the list of conservative senators who have reservations about Harriet Miers. The Pennsylvania Republican says he's disappointed the president -- quote -- "wanted to nominate someone like that instead of someone with a record." But Santorum, who faces a tough re-election battle, says he hasn't made up his mind yet on how he'll vote on the Miers nomination.
Coming up, Iraq's high-stakes election. Will it go off without a hitch or without widespread violence? We're continuing our countdown to the vote that could change the future of Iraq and help determine when U.S. troops are coming home.
Also ahead, we'll keep you up to the minute on the flooding in Northeastern parts of the United States and the threat to residents and their homes.
Later, Senator Hillary Rodham Clinton in the money, and her opponent may be feeling uncomfortable.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Security is tight and tensions are high in Iraq right now, only hours before a potentially pivotal vote on a new constitution. The outcome could have tremendous implications for that country and for the United States as well.
CNN's Aneesh Raman is in Baghdad. He's watching all of these developments for us. What's it look like right now, Aneesh?
ANEESH RAMAN, CNN CORRESPONDENT: Well, Wolf, right now the electricity is out in greater Baghdad. You'll notice it's pitch black behind me. The water, we're told, out as well. And that's really why Iraqis want this political process to move forward. They want their government to start dealing with basic services like water, electricity and, of course, security.
The stakes could not be higher. Tomorrow will decide whether Iraq continues on this political timeline or whether the transitional government starts anew. Some 15.5 million Iraqis have registered to vote. Turnout is expected to be high, as is security. The borders of this country have now been closed. Traffic is being limited on the streets, if not completely rid of any movement whatsoever.
The biggest threat, Wolf, tomorrow we're told are suicide bombers waiting in line with Iraqis.
In January, election day saw a record number of attacks -- well over 300. Those ranged from gunfire to suicide bombers. They're trying to prevent something similar from happening tomorrow.
But General Casey, the head of multi-national forces has always said that this election and the December elections are key determinants in whether U.S. troops can start coming home.
Wolf.
BLITZER: And is everything all set for the start of the Saddam Hussein trial next week?
RAMAN: Yes, we've heard from the chief investigative judge, Raid Jouhi, who also is now the spokesman for Iraq's Special Tribunal, that October 19 is still the start date for Saddam's first trial. He could face upwards of 12 trials on various charges.
We are expecting, though, the defense team to put in for a delay so they can look further at the evidence. That could mean some days, if not weeks, between the start of the trial and when the actual evidence gets presented.
Wolf.
BLITZER: One quick follow up. It's dark behind you. I don't remember the last time you've done a live shot for this program where it's been completely a blackout in the Iraqi capital of 7 or 8 million people. Is this unusual?
RAMAN: It is highly unusual. I have never seen it like this. And on the eve of a referendum, questions, of course, are being asked.
We are trying to affirm confirmation from the government as to why the power has gone out, whether the suggestions that water is out as well is tied in. Of course, security incredibly high, as are the questions of the Iraqis on fixing the situation behind me.
BLITZER: All right. We'll check back with you. Aneesh Raman in a completely black Baghdad. We'll see what's happening on the eve of this election. We'll check back with Aneesh very, very soon.
Let's check in with CNN's Fredricka Whitfield. She is joining us now from the CNN Center in Atlanta with a closer look at other stories making news. Fred?
FREDRICKA WHITFIELD, CNN ANCHOR: Hello again, Wolf. Two small planes collided over northeastern Ohio this afternoon. They crashed in a field in Portage County. One plane came to rest upside down. The other crashed a few hundred feet away. There is no word yet on deaths or injuries.
The rain keeps falling on the Northeast. At least 10 people have died, four more are missing. Parts of the region have seen a foot or more of rain over the past eight days. They may see two to three inches more by tomorrow.
And researchers have found an isolated case in which the avian flu has proven to be partially resistant to the anti-viral drug Tamiflu. The journal "Nature" reports the single case involved a 14- year-old Vietnamese girl who had cared for her brother who was also stricken with the potentially deadly flu. The girl recovered from her infection. The makers of Tamiflu, the strongest flu drug on the market, say it's possible the girl fell ill long before she was treated with the drug, reducing its effectiveness.
And Health and Human Services Secretary Mike Leavitt is wrapping up his bird flu fact-finding trip to Southeast Asia. Leavitt says the warning signs of a global pandemic are already there and that the potential is so troubling, no nation on Earth can afford to ignore it.
Wolf?
BLITZER: Thanks very much, Fredricka Whitfield at the CNN Center. We'll get back to you.
He may be the most powerful man in Washington right now. No, I'm not referring to the president of the United States. I'm talking about Patrick Fitzgerald, the prosecutor in the CIA leak investigation. We'll tell you why. That's coming up next.
And later, the fallout from the president's not-so spontaneous exchange with U.S. troops in Iraq. We'll get expert opinion in today's "Strategy Session" on what happened yesterday.
You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: One of Washington's most powerful men faced a grand jury yet again today and still faces the possibility of indictment. It's a legal and political crisis for Karl Rove and a coup for the prosecutor who made it all happen.
Our senior political analyst, Bill Schneider, is joining us with more. Bill?
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Ain't you a'feared? Ain't you a'tremblin'? That's what a schoolmaster said in a Charles Dickens novel. Well, right now, one man has all Washington a'feared and a'tremblin'. And for that, he earns the political "Play of the Week."
(BEGIN VIDEOTAPE)
SCHNEIDER (voice-over): People describe Patrick Fitzgerald as zealous, relentless, extremely aggressive. Listen to former Illinois Governor George Ryan, a Republican being prosecuted by Fitzgerald for corruption.
GEORGE RYAN (R), FORMER ILLINOIS GOVERNOR: The federal government has torn apart my personal life with the intrusive and overbearing investigation.
SCHNEIDER: Listen to a Democrat, Chicago Mayor Richard M. Daley, who has seen more than 30 city officials and contractors indicted for illegal hiring and bribe taking.
MAYOR RICHARD M. DALEY (D), CHICAGO: I fully cooperated, will cooperate with the U.S. Attorney's Office. That's all I have to say. SCHNEIDER: Fitzgerald successfully prosecuted Sheik Omar Abdel Rahman for the 1993 World Trade Center bombing. In 1998, he brought an indictment against Osama bin Laden for his role in the bombing of U.S. embassies in Africa.
In December, 2003, Fitzgerald was named special prosecutor to investigate who leaked the name of a CIA agent. True to his reputation, Fitzgerald has brought reporters to heel. After nearly three months in jail, "New York Times" reporter Judy Miller testified this week. So did White House Deputy Chief of Staff Karl Rove, for the fourth time. The Bush administration is treating Fitzgerald very respectfully.
BUSH: The special prosecutor is conducting a very serious investigation. He's doing it in a very dignified way, by the way. And we'll see what he says.
SCHNEIDER: Fitzgerald has been called the original untouchable, like Elliot Ness. No one has accused Fitzgerald of having a partisan agenda. That's rare in Washington. It gives Fitzgerald enormous power, and the "Play of the Week."
(END VIDEOTAPE)
SCHNEIDER: When Kenneth Starr investigated Bill Clinton in the '90s, there were a lot of complaints about leaking. Not so with Fitzgerald, who never makes any public statements. Nobody knows what Fitzgerald may do, which makes it all the more agonizing.
BLITZER: And the fact, Bill, that the president said he's conducted this nearly two-year investigation in what he called a dignified manner, that sort of would undermine any effort that the president's supporters might have if he comes forward with indictments to go after the special prosecutor.
SCHNEIDER: That's right. If the White House or anyone in the administration tries to attack Mr. Fitzgerald as having a partisan agenda or being reckless, they can just quote what the president said.
BLITZER: All right. Bill Schneider reporting for us. Bill, thank you very, very much.
Up next here in THE SITUATION ROOM, if you're confused about the CIA leak story, no worries. It's not an easy story necessarily to understand. We'll take a look back how this scandal unfolded.
Plus, we're just hours away from a crucial vote in Iraq. Could tomorrow's election lead to an early withdrawal of American troops from Iraq? The political fallout, that's coming up next in today's "Strategy Session."
(COMMERCIAL BREAK)
BLITZER: The grand jury that heard testimony from Karl Rove today is expected to go out of business very soon. The outcome of its investigation into the leak of a CIA operative's identity still very much up in the air right now. But, we do know this. This case and the controversy surrounding it have been unfolding for more than two years.
(BEGIN VIDEOTAPE)
BUSH: The British government has learned that Saddam Hussein recently sought significant quantities of uranium from Africa.
BLITZER (voice-over): In his January, 2003, State of the Union speech, President Bush building the case for war with Iraq insinuated Saddam Hussein was trying to build nuclear weapons. March 20, coalition forces invade Iraq. May 1, the president announces major operations over.
On July 6, 2003, Joe Wilson, the former U.S. ambassador to Gabon wrote in a "New York Times" opinion piece that had he traveled to Africa in February 2002 to investigate similar allegations for the CIA. His conclusion, it was -- quote -- "highly doubtful that such a transaction would have occurred."
On July 14, CNN political analyst Robert Novak wrote in his "Chicago Sun-Times" column, "Wilson never worked for the CIA, but his wife Valerie Plame, is an agency operative on weapons of mass destruction. Two senior administration officials told me that Wilson's wife suggested sending him to Niger to investigate."
And that's where the possible criminal case begins.
Under a 1982 law, it's a crime to reveal the name of an undercover CIA agent. The burden of proof is high. Among other things, the disclosure must reveal the identity of a covert agent. It must be intentional. It must be made by someone with authorized access to classified information and the source must be aware that the information disclosed will reveal the identity of the covert agent.
In September, 2003, nearly three months after Novak's column, the Justice Department opened an investigation. There were early suspicions that the White House was behind the leak, perhaps the president's top adviser, Karl Rove. Press Secretary Scott McClellan was dismissive.
MCCLELLAN: I said, it's totally ridiculous. I said, it's totally ridiculous.
BLITZER: And the president said he welcomed an investigation and promised action.
BUSH: If there's a leak out of my administration, I want to know who it is. And if the person has violated law, that person will be taken care of.
BLITZER: In December, 2003, special prosecutor Patrick Fitzgerald was appointed to find out who leaked Plame's identity. Over the course of the next 18 months, top administration officials were questioned, including Rove, Vice President Cheney, and even the president himself.
In August, 2004, at the Republican National Convention in an interview with CNN, Rove denied he was responsible.
KARL ROVE, WHITE HOUSE DEPUTY CHIEF OF STAFF: Didn't know her name and didn't leak her name.
BLITZER: Prosecutors also went after journalists who had Plame's identity leaked to them -- "Time" magazine's Matthew Cooper, who wrote an article on the story and the "New York Times" Judith Miller, who researched one but never published it.
But after the Supreme Court refused to hear the journalists' request to shield them from prosecution, Cooper's employer Time, Inc, which is owned by CNN's parent company, cooperated with the prosecutor, turning over notes which revealed that Karl Rove was, in fact, Cooper's source, which Cooper, himself, later confirmed.
(END VIDEOTAPE)
BLITZER: Judith Miller spent 85 days in jail for refusing to cooperate with the grand jury. She finally agreed to testify two weeks ago after getting the explicit approval from her source, the vice president's chief of staff, Lewis "Scooter" Libby.
More on the CIA leak probe now, and what it could mean for the White House. Joining us in today's "Strategy Session", CNN political analyst and president of American Cause, Bay Buchanan, and radio talk show host Bill Press, who has a new book out called, "How the Republicans Stole Christmas." We'll get to that in a moment, you'll explain that name for us.
Let's talk a little bit about the Karl Rove testimony today. Listen to what Joseph diGenova, former U.S. attorney here in Washington, a tough as nails prosecutor, himself a Republican, said about what's happening right now. He said, "It looks like a perfect storm. People have no idea what happens when an investigation gets under way. It's debilitation. It's not just distracting. It's debilitating. It's like getting punched in the stomach."
What do you make of that?
BILL PRESS, RADIO TALK SHOW HOST: I think he's right. I think Joe is right. I think this is really, really serious trouble for the White House. It is the perfect storm for the White House. It looks like there will be indictments.
You know, the jury, grand jury, did not -- or Fitzgerald did not call Karl Rove back, Wolf, because they wanted to hear how the recovery effort is going on Hurricane Katrina. I mean -- and they kept him there for three and a half hours, which you discussed with Jeffrey Toobin.
I think seriously, they are closing in on a possible indictment of Karl Rove. That will be just a body blow to the Bush White House. And I think when you add that to what's happening with Tom DeLay and Bill Frist and Jack Abramoff, and David Sefavian, it's going to be bad for the entire Republican Party.
BLITZER: Do you think that's wishful thinking on the part of Bill Press, a good Democrat, or he's on to something?
BAY BUCHANAN, PRESIDENT OF AMERICAN CAUSE: No, it is clearly wishful thinking. There's no question that there's some stories out there. We've got a number of investigations, that obviously cause concern to all Republicans.
And I think Joe is absolutely right. You know, if I were before a grand jury a couple times, I wouldn't be sleeping at night. I don't care if I did anything wrong or not. You just have a concern there, so it is difficult.
But I think the key here is that the Democrats could overdo their play if they seem to get too strident, too excited and their accusations become a little bit too much. He has not been indicted. Karl Rove has not been indicted. Libby has not been indicted. There's no indication from the prosecutor that he is going to indict him.
So I think the proper role right now for all of us, is just to wait and see. I know that I'm concerned. But, surely we do not have any evidence whatsoever that either of them have committed or done anything that would warrant an indictment.
PRESS: I just have to laugh at the idea that Democrats are overplaying their hand. I don't see Democrats involved in this at all. It's a Republican prosecutor investigating Republican officials in the White House about a leak that perhaps came out of Republican White House based on a speech that a Republican president gave. So this is your game, Bay. This Democrats --
BUCHANAN: I'm not suggesting the Democrats are behind the investigation of Rove at all. But I often will turn on the television for a short time and hear Nancy Pelosi go off on some of these investigations in such a strident manner as to make me become a complete supporter of the fellow being investigated.
I mean, DeLay, I think, is clearly a Democratic ploy, that I think will be tossed out in no time flat.
PRESS: I think Republicans -- Democrats should have stayed silent just like Republicans did during the Bill Clinton investigation.
BUCHANAN: And did it help us? I'm saying as a strategy.
BLITZER: Let's move on and talk about Iraq, it's potentially very significant vote tomorrow. Do you suspect this is a turning point right now in favor of a more stable democratic Iraq? Because a lot of people are still very, very worried.
BUCHANAN: Well, there's no question, it is an excellent step in the right direction, Wolf. I mean, the fact that they got a compromise agreement, that they brought aboard a couple of the Sunni leaders and that it looks like the constitution is going to pass, is excellent news.
But you never know what's going to happen next month in Iraq. Obviously, we hope that in December there are further elections that will also be a very positive turnout there and that there is some stability over there. But the jury's out on that.
BLITZER: The Pew Poll had a poll earlier this month, will ratification of the Iraqi constitution will lead to more stability? Twenty-nine percent of the American public thought it would lead to more stability, 14 percent to less stability, 49 -- almost half of the American public -- say it won't make much of a difference, no change at all.
PRESS: I have to agree with them. This is a big milestone that all of us should be celebrating, particularly if the election goes well because the Sunnis involved now. We want this to go well, we want the Iraqi Constitution to be adopted. And we want this, hopefully, to lead to at least, you know, a slowdown in the insurgency and the killings over there.
But I understand that Pew Poll because we've had several times where they've said this is going to put the insurgency to rest. And it's never happened yet. People are skeptical it will happen this time.
BLITZER: You saw that teleconference or whatever you want to call it -- videoconference -- that the president yesterday had with the soldiers in Iraq.
Listen to Allison Barber, deputy assistant secretary of Defense, who helped orchestrate this entire get together. Listen to her.
(BEGIN VIDEO CLIP)
ALLISON BARBER, DEPT. ASST. DEFENSE SECRETARY: If there's a question that the president comes up with that we haven't drilled through today, then I'm expecting the microphone to go right back to you, Captain Kennedy, and you to handle it.
(END VIDEO CLIP)
BLITZER: Bay, I've covered the Pentagon. I've covered the White House. And I've seen a lot of staged events, photo ops, with the best of them. This is an administration that is among the best of them. How could they have let the news media cover that whole preparation, the advance work that Allison Barber did to sort of stage this entire event?
BUCHANAN: You know, I didn't have any problem with what took place, but to have allowed the media to come in on it was just a huge mistake. I don't understand. They are excellent at this. And it follows that awful speech down there -- the speech was quite good, but the backdrop of the speech down there in New Orleans was very, very poorly orchestrated.
I think maybe Rove is not on top of his game here. I don't know, but that was a mistake to let the press hear it.
PRESS: I was going to say, one, I think this proves that Karl Rove is distracted. If Karl Rove were on the job, this would never have happened. But, Wolf, I think you ought to take this as a personal credit. When I saw that picture, the first thing I thought, well, it's THE SITUATION ROOM with Wolf Blitzer. But, then it turned out it was President Bush trying to play Wolf Blitzer and it didn't work. So, you know you're having an impact.
BLITZER: Bill Press, Bay Buchanan, thanks very much. Let's go back to Baghdad right now. A potentially significant story unfolding on the eve of this election. Aneesh Raman is joining us. What's going on?
RAMAN: Wolf, we're getting word from the electricity ministry that the power that is out in greater Baghdad, you'll notice that it is pitch black behind me except for some lights operating by generator, is due to an insurgent attack.
The lines between the northern towns of Kirkuk and Beiji have been sabotaged. It's unclear exactly how much of Baghdad is affected by this. But the timing, the eve of the country's constitutional referendum cannot be ignored. This is what Iraqis want fixed, they don't really care about the political processes as they do about their every day lives, the water, the electricity and the security. And that will once again resonate in their minds after tonight's incident as they go to the polls tomorrow.
Wolf.
BLITZER: If in fact, Aneesh, insurgents managed to pull the plug, to turn off the power, all the electricity in the Iraqi capital, a city of - what? -- 7 or 8 million people and shut down the water supply on the eve of this election, that is a potentially enormous development if they have that capability to undertake that kind of sabotage. Is that the fear right now?
RAMAN: Well, again, it's unclear how big of a problem this is. As far as we know, it is the greater Baghdad area, not the entire province, not nearly the entire city.
But it clearly will complicate efforts tomorrow for Iraqis who are going to the polls. It is clearly a viability that we're seeing among the insurgents who are incredibly adaptive -- when they see that security is tightened in and around the city, they go elsewhere for attacks. Clearly, they've done so tonight.
The Iraqi electricity ministry is not saying how long it will take for power to be restored; they are only saying that it will happen gradually.
Wolf.
BLITZER: All right. Aneesh, we're going to have much more on this developing story, a blackout in Baghdad. No electricity, no power, no water. Perhaps sabotage by insurgents on the eve of this election.
We'll go back to Iraq. Our team of reporters all over the story, including Aneesh Raman, Christiane Amanpour, Nic Robertson. We've got the best reporters on the scene. We'll have much more coming up on this at the top of the hour. Coming up, President Bush in the polls -- it's not necessarily a very pretty picture right now for the president. But can he turn things around? Our Carlos Watson is standing by with a closer look.
Plus, Hillary Rodham Clinton's cash -- the New York senator appears to be in the money. She is in the money. We'll explain in today's "Political Radar."
Stick around. You're in THE SITUATION ROOM.
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BLITZER: On our "Political Radar" this Friday, Senator Hillary Rodham Clinton is touting her latest fund-raising success. Today, her re-election campaign reported raising almost $5.3 million from July through September. And the campaign has more than $13.5 million on hand, with the vote in New York still more than a year away.
One of Clinton's Republican challengers is trying to overcome a financial disadvantage and political embarrassments. Jeanine Pirro today picked up the sought-after endorsement of New York's Republican Governor George Pataki. But at the same time, she's under fire for reportedly naming two GOP officials on her Web site and claiming they've endorsed her when they actually have not.
Pirro's fund-raising abilities also are being questioned. She hasn't reported her totals for the last quarter yet but she's expected to lag way behind Senator Clinton.
The CIA leak probe is just one of several political blows that has left the Bush White House feeling battered.
Let's bring in our political analyst Carlos Watson. He is joining us now live. Carlos, more bad numbers for the president. In all of these public opinion polls, it looks pretty ugly for him. Can he turn this around?
CARLOS WATSON, CNN POLITICAL ANALYST: Perhaps, Wolf. But clearly it's a pivotal time. It could get much worse if there's an indictment of his key aide Karl Rove or if the Tom DeLay story becomes much worse and certainly before Christmas.
But two things to watch that ultimately could take the president's numbers from the high 30s to the mid 40s between now and the end of the year.
One, the Christmas economy. If indeed what we're seeing this week from Wal-Mart and Apple -- meaning good numbers in both cases -- and good unemployment numbers continue, that clearly could make a lot of Americans who are worried about gas prices right now feel like at least the economy is on solid footing.
The other thing, frankly, is homeland security. To the extent that we go through yet another Christmas, a fourth Christmas without an attack, while it may not lead to the president eclipsing 50 percent, you clearly could see a regaining of support not only among Republicans, but frankly among independents.
BLITZER: How critical is this election tomorrow, this referendum on the draft Iraqi constitution?
WATSON: Well, Wolf, if you look at the poll numbers over the last 24 months, the president has had about six, what I would call mini valleys, where he's dipped three, four, five, six points. And in a number of cases what has caused a return in his numbers has been, frankly, good news in Iraq. So to the extent that there's a significant vote participation -- and I know we're covering the story right now of a potential blackout that may impact that -- the president could see some good numbers. And, again, it could come from independents, as well as his conservative base.
BLITZER: Blackout in Baghdad -- right now, we don't know the cause but it's significant potentially.
Carlos, you're way outside the Beltway over in California. You're looking at this whole political environment out there, but you're seeing some new faces. Talk a little bit about who you're seeing.
WATSON: Wolf, I call them the new money men. Out here in the Silicon Valley, the people who are behind tech companies like Yahoo! and Apple and Google are starting to open up their wallets once again, and not only are they investing in new companies, but they're investing in political candidates.
This week while Congress was on recess, you saw people like John McCain, potential candidate in 2008, come out here and take a look and maybe raise a little bit of money. You've seen people like Evan Bayh. Al Gore is expected to have a big event in the next month.
And so not just Hollywood and not just Los Angeles, but watch the Silicon Valley in 2006. You may see as much as $25 million come out of this area. And one other thing, Wolf, that's very significant is who is giving the money. Once upon a time, it only was CEOs. Now you're seeing vice presidents and director-level people, and, Wolf, you're seeing as many women as men.
BLITZER: Carlos Watson reporting for us. Thanks, Carlos, very much.
WATSON: Very good to join you.
BLITZER: And coming up, Karl Rove in court, and the talk of the blogs. We'll hear what they're saying about the president's key adviser when we get the situation online.
Plus, when will the rain finally end in the Northeast? We'll go live to New Jersey where flood waters are on the rise right now. Our Mary Snow is on the scene.
Stay with us.
(COMMERCIAL BREAK) BLITZER: There's a developing story we're following out of Baghdad, potentially, potentially very significant. There's a huge blackout in the entire greater Baghdad area. No electricity, no power except for some private generators right now and there's fear that insurgents sabotaged the power system, the water system coming into the Iraqi capital.
Mahmoud al-Saaedi, the electricity ministry spokesman, tells the Associated Press that insurgents sabotaged the power lines, knocking out electricity across the greater Baghdad area. We're going to go live to Baghdad at the top of the hour. We have reporters covering the story, all of this happening on the eve of the elections, tomorrow's elections for the draft constitution.
Fredricka Whitfield is joining us, once again, from the CNN Center with a closer look at some other stories making news. Fred, what's going on?
WHITFIELD: Hello, again, Wolf. Here in this country, if you're on Social Security, your monthly check will get a little bit bigger next year. Social Security checks automatically rise with inflation, and next year's increase will be a 4.1 percent increase. The average monthly check will go up by $39. It's the largest annual increase since 1991. The reason, inflation due to high energy costs.
Faced with an ultimatum from some bar owners, New Orleans authorities are offering a curfew compromise. The bar owners said they would defy a midnight to 6:00 a.m. curfew in the city's tourist district. The curfew was imposed in the wake of Hurricane Katrina. Mayor Ray Nagin now says the city will begin the curfew at 2:00 a.m.
And one more survivor of Hurricane Katrina is back home in New Orleans. His name is King Midas, and he's a 300-pound sea turtle. He was one of the more than 10,000 animals at the New Orleans Aquarium. Most did not survive the storm, but Midas was among those who were evacuated to aquariums around the country. Good news there, Wolf.
BLITZER: Thank you very, Fred. We'll get back to you.
Still to come here in THE SITUATION ROOM, a controversial attempt at choreography by the Bush administration is getting reviewed online. We'll you inside the blogs. That's coming up.
And later, a line of defense against bird flu -- what you should know before you head to the airport.
You're in THE SITUATION ROOM.
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BLITZER: Bloggers are buzzing about President Bush's teleconference snafu yesterday and Karl Rove's long day of testimony today before the CIA leak grand jury. Our Internet reporters, Jacki Schechner and Abbi Tatton, are joining us to take us inside the blogs. Jacki, we'll start with you. JACKI SCHECHNER, CNN INTERNET CORRESPONDENT: Well, Wolf, when the media aired the pretape of President Bush's teleconference yesterday, the blogs started buzzing, and the buzz was twofold. One, they were upset at the Bush administration. On the other side, they were upset at the media.
Let's start on the left, with Steve Gilliard at The News Blog. Basically, he is saying he would like to see an honest exchange of information between soldiers and President Bush. He imagines if they were allowed to be blunt, they would ask things like this. "When do we get to home? I cannot take a third duty of in Iraq."
On the right, the conservative reaction was reaction to things like the use of the word staged. Basically every major media news interview has some sort of pre-production to it. And they don't see anything wrong with what they saw yesterday in the video that was aired or what was written about that pre-tape yesterday.
The other thing they point out is that the Bush administration made no attempt to hide what was going on behind the scenes, and therefore, probably, didn't do anything wrong. This is all just "being blown out of proportion."
From NewsBusters -- this is a group site that was put together to combat what they call the liberal media bias -- saying there is nothing wrong figuring out "who should answer which question" or telling soldiers who aren't familiar with media interviews to "'take a breath' before answering."
But Joe Gandelman from the middle at The Moderate Voice points out the big question, was it staged or merely advance work? Well, it comes down to the issue of credibility, because frankly, the media said that this would not be a staged event, that this would be completely unscripted. It turns out that wasn't entirely true, and, frankly, with poll numbers dropping and the controversies rising, they're falling into a little bit of a problem.
ABBI TATTON, CNN INTERNET CORRESPONDENT: And it's the controversy over the Valerie Plame investigation that is keeping the liberal bloggers occupied, and they've been occupied for the last couple of years. As people are anticipating what's going to happen next, now Patrick Fitzgerald's investigation is winding down.
We wanted to have a recap at sites like talkleft.com. This is criminal defense attorney Jeralyn Merritt who has been working tirelessly on this story for over two years now. She's saying today, "What do you think? Will he sink or swim?"
Looking back at Jeralyn's posts on this, well over 200 separate entries dating back to July 22, 2003 where she a bit of a profit there. "This is turning into a big story." That, just after a week after the original Robert Novak column came out. I don't think these liberal bloggers are going to last he weekend, the anticipation is so great.
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