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The Situation Room

Bush Meets With Iraq Study Group

Aired November 13, 2006 - 17:00   ET

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


WOLF BLITZER, HOST: And to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time. Standing by, CNN reporters across the United States and around the world to bring you today's top stories.
Happening now, the path to success versus the road to failure -- a new debate unfolds as President Bush meets with the group trying to come up with a new course for the war in Iraq.

But what do Democrats plan for Iraq? Could American troops begin coming home in a matter of months?

And the power of independence -- a senator whose political future was in peril just months ago is now holding the balance of the Senate in his own hands.

I'm Wolf Blitzer.

You're in THE SITUATION ROOM.

Less than a week after voters expressed their frustration with Iraq, President Bush is publicly embracing what could be his last chance to find a way to turn around the war and save his legacy.

He met today at the White House with the independent bipartisan group charged with finding a way to fix the failing U.S. mission.

Also today, the top U.S. military commander, General Abizaid, made a surprise visit to Baghdad to meet with the prime minister, Nouri Al-Maliki, and, in his words, to reaffirm President Bush's commitment to success in Iraq.

Meanwhile, fresh violence underscoring the urgency of the situation. A suicide bus bombing in Baghdad killed at least 10 people, while at least 46 bullet-riddled bodies were discovered across the capital.

Let's begin our coverage this hour with our White House correspondent, Suzanne Malveaux -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, the president certainly under pressure to show that, in fact, he is open to some of those fresh ideas regarding Iraq. And today meeting with the Iraq Study Group was certainly a part of that.

(BEGIN VIDEO TAPE) MALVEAUX (voice-over): With the American public's anger over the lack of progress in Iraq now at a boiling point, President Bush met with the bipartisan commission charged with finding solutions.

GEORGE BUSH, PRESIDENT OF THE UNITED STATES: I was pleased to meet with them. I was impressed by the quality of the -- of their membership. I was impressed by the questions they asked. They are -- they're -- they want us to succeed in Iraq, just like I want to succeed.

MALVEAUX: The Iraq Study Group, led by former Secretary of State James Baker and former Democratic Congressman Lee Hamilton, is widely viewed as Mr. Bush's last chance to find a face-saving way to address the failures in Iraq.

BUSH: I'm looking forward to interesting ideas.

MALVEAUX: The White House and panel members are reluctant to talk about any specific ideas yet.

BUSH: I'm not going to prejudge the Baker Commission's report.

MALVEAUX: But there are broad recommendations that are being debated. One controversial one is withdrawing U.S. troops in phases, to get the Iraqis to step up and take more responsibility. It's a measure that has some political support from both sides of the aisle.

But President Bush is unwilling to sign off on anything yet.

BUSH: I believe it is very important, though, for people making suggestions to recognize that the best military options depend upon the conditions on the ground.

MALVEAUX: Another controversial measure calls for the U.S. to reach out to Syria and Iran to use their regional influence to calm the situation in Iraq.

But President Bush side-stepped a question as to whether that's a possibility. The Bush administration is cautious that new diplomatic efforts could send the wrong message.

Some policy experts disagree.

RICHARD HAAS, COUNCIL ON FOREIGN RELATIONS: Engagement is not reward. Diplomacy is not a favor. We have a real problem in Iraq. Clearly, the alternatives are not looking good. Talking to these neighboring countries makes sense.

MALVEAUX: There are indications that immediately withdrawing American troops or partitioning Iraq along ethnic lines have been largely rejected by the Iraq Study Group, while other recommendations have appeared to gain overall support, such as holding an international peace conference, pressuring the Iraqi government to reconcile civil differences and beefing up training of Iraqi security forces.

(END VIDEO TAPE)

MALVEAUX: And, Wolf, ultimately, there is a sense of agreement here, an acknowledgement that even if they do come up with these recommendations that both sides can agree on, certainly the future of Iraq and U.S. policy, of course, may be out of the president's hands and certainly dependent on what happens on the ground there -- Wolf.

BLITZER: All right, Suzanne, thank you.

And concerning a new course for the war, might the solution involve courting people whom some think are part of the problem?

Perhaps, says the British prime minister, Tony Blair.

Let's turn to our Brian Todd.

He's watching this story -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, Tony Blair sees the crossroads just as clearly as anyone does here. That seems to be one reason he's taken the lead on a bold new idea to stem the violence in Iraq.

(BEGIN VIDEO TAPE)

TODD (voice-over): With mounting casualties on the battlefield and a changing political balance in Washington, George Bush's closest international ally throws out an idea -- to turn the tide in Iraq, turn to your antagonists.

TONY BLAIR, BRITISH PRIME MINISTER: We offer Iran a clear strategic choice. They help the Middle East peace process, not hinder it; they stop supporting terrorism in Lebanon or Iraq. In that case, a new partnership is possible.

TODD: Tony Blair hints a similar deal can be struck with Syria.

But the president seems to maintain his tough lines, saying if Iran wants to talk, it needs to suspend its nuclear program.

As for Syria...

BUSH: We expect the Syrians to be, one, out of Lebanon so that the Lebanese democracy can exist; two, not harboring extremists that create -- that empower these radicals to stop the advance of democracies; three, to help this young

democracy in Iraq succeed.

TODD: Iranian and Syrian officials say their governments want to help.

IMAD MOUSTAPHA, SYRIAN AMBASSADOR TO THE U.S.: We are concerned about the possibility that Iraq might spiral down toward civil war.

TODD: But it's widely held that much of the violence in Iraq can be traced to Iran and Syria.

SIMON HENDERSON, WASHINGTON INSTITUTE FOR NEAR EAST POLICY: The Iranians, by supporting the hard-line Shia militias, and the Syrians by allowing Syrian territory to be the route in for the Jihadists and foreign fighters.

TODD: Both governments deny that. Those who favor negotiations say the violence in Iraq attributed to those two countries is the reason to reach out.

RICHARD MURPHY, FORMER U.S. AMBASSADOR TO SYRIA: When the Republicans are bad with the United States, they have no interest in helping us stabilize the situation in Iraq.

(END VIDEO TAPE)

TODD: There would be a price tag for all this. Analysts say if Iran was recruited to curb Shia violence in Iraq, Tehran would want the U.S. to stop trying to cut off its nuclear program. Syria, they say, might want more influence in Lebanon, something the U.S. and its allies have just pressured Damascus to give up -- Wolf.

BLITZER: All right, Brian, thank you.

Brian Todd reporting.

Meanwhile, Congressional Democrats are making plans to use their newly won power to try to shape U.S. policy in Iraq.

For more on that, let's turn to our Congressional correspondent, Dana Bash -- Dana.

DANA BASH, CNN CORRESPONDENT: Well, Wolf, it was also a bit like "Back To The Future" here on Capitol Hill today. Democrats just like before the election, calling for U.S. troops to come home. Republicans saying not so fast.

The only difference, of course, is that Democrats are hoping that their newfound power in their majority will help push their message.

(BEGIN VIDEO CLIP)

SEN. CARL LEVIN (D-MI), INTELLIGENCE COMMITTEE: That we should pressure the White House to commence the phased redeployment of U.S. troops from Iraq in four to six months.

BASH (voice-over): Carl Levin, the Senate's top Democrat on military matters, says a strongly worded resolution would push the administration to heed the election message -- change course and insist Iraqis become more self-sufficient.

LEVIN: The president will now be able to see that he's got to find a new mechanism to let the Iraqis know that this action is needed by them, that they must take these steps, and that, in any event, we can't be their security blanket. BASH: Levin's proposal would be the first big test of whether Congressional Democrats can really use their new power to change U.S. Iraq policy.

The resolution would be non-binding, symbolic, its political strength dependent on how many Republicans will embrace withdrawing troops. An immediate sign of how hard that can be, Republican Senator Lindsey Graham warns Iraq is in chaos, yet he quickly rejected the Democrats' proposal: "To start withdrawing troops would be equivalent to surrendering in the central battlefront in the war on terror," Graham said, "A misguided proposal such as this should hit a wall in the Senate."

The Democratic leader says their plan is no surrender.

SEN. HARRY REID (D-NV), MINORITY LEADER: Does this mean pulling all the troops out now?

Of course it doesn't. But it does say we must start redeploying troops as soon as possible.

(END VIDEO TAPE)

BASH: Meanwhile, a power struggle in the House is another test of the Democrats' post-election Iraq message. Incoming House Speaker Nancy Pelosi has thrown her support behind John Murtha, a congressman who is well known, of course, as somebody who is against the war, an early Iraq opponent; instead of Steny Hoyer, the man currently in line to be her number two, the House majority leader.

Now, there are factors at play here that are personal. Steny Hoyer is somebody whom Nancy Pelosi has had a rivalry with, whereas John Murtha is somebody who she has personal affinity and loyalty toward.

However, Nancy Pelosi also made clear it is because of Murtha's high profile as an early Iraq opponent that gave her the ability to support him for her number two -- Wolf.

BLITZER: All right, Dana, thank you.

Dana Bash reporting.

Let's check in with Jack Cafferty.

He's got "The Cafferty File" -- Jack.

JACK CAFFERTY, CNN CORRESPONDENT: Congressman Henry Waxman is the man in line to chair the House Government Reform Committee. He has a problem. Waxman will investigate the Bush administration's running of the government. But he says there are so many areas of possible misconduct, he doesn't know where to start -- the Abu Ghraib prison abuse scandal, the Valerie Plame CIA leak, pre-Iraq war intelligence.

But none of this may matter. Fellow California Democrat and Soon-to-be Speaker of the House, Nancy Pelosi, has already said that impeachment of President Bush is "off the table." In other words, regardless of what Waxman might find out, it appears that President Bush's job is safe for the rest of his term.

Or is it?

Here's the question -- was it a mistake for Nancy Pelosi to say impeachment is off the table?

E-mail your thoughts to caffertyfile@cnn.com or go to cnn.com/caffertyfile -- Wolf.

BLITZER: All right, Jack, thank you.

And up ahead, President Bush has called it part of an axis of evil.

Now Iran is reacting to the Democrats' takeover of Congress. We're going to go live to Tehran. I'll also speak with Senator John Warner.

And will the White House be able to work with the new Democratic Congress?

We'll talk about that in our Strategy Session. Paul Begala, Bay Buchanan standing by for that.

And Joe Lieberman's pivotal role in the new U.S. Senate.

Is he tempted to change the balance of power?

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: More now on our top story -- new debate over the way forward in Iraq. Today, President Bush met with the group trying to come up with a new course. Meanwhile, there's talk over the possibility of Iran, Iran playing a role in what might happen next in Iraq.

CNN's Aneesh Raman is reporting us now in Tehran.

He's joining us with reaction from Iran on what has happened, this political earthquake here in Washington -- Aneesh.

ANEESH RAMAN, CNN CORRESPONDENT: Wolf, tensions between the U.S. and Iran were rising by the day, but then the landscape changed and now Iran is looking to seize on the moment.

(BEGIN VIDEO TAPE)

RAMAN (voice-over): It started at the end of October in the Persian Gulf, with U.S.-led naval exercises aimed at stopping the smuggling of nuclear weapons.

Days later, Iran responded. Defensive war games were launched, three new missiles were test fired and tensions between Washington and Tehran seemed set to intensify.

But then something changed -- the Democrats took control of Congress. It was a moment Iran's supreme leader simply could not ignore.

AYATOLLAH ALI KHAMEINI, IRANIAN SUPREME LEADER: (THROUGH TRANSLATOR): The winning of Democrats in the U.S. elections is not solely a domestic event of America. It means the failure of pro-war and aggressive policies of the president of America.

RAMAN: And now, amid suggestions Iran and the U.S. should talk, especially when it comes to the situation in Iraq, these words from the government spokesman.

UNIDENTIFIED IRAQI GOVERNMENT SPOKESMAN (THROUGH TRANSLATOR): If America makes the decision to ask for help from Iran and Syria with Iraq, everything would be solved and no problems would remain.

RAMAN (on camera): You do get a sense here that tensions have simmered down just a bit. But, of course, we want to find out from the people as best we can. We're going to ride one of these buses around Tehran to see what they say.

(voice-over): On board, women are relegated to the back, separated by a bar. None were willing to speak to us.

But up front, Punli (ph) did. "Yes, of course," he told me, "the Democrats' win in the U.S. gives hope because the Republicans' confrontational policy may be pushed aside.

And along the ride even came this -- a call from Bavek (ph) for reconciliation between Iran and the U.S.

Iran and the U.S.

UNIDENTIFIED MALE: If they make any relationship, it means economic in Iraq, it's getting better. And the conditions for the people, it's getting better. And the people, they want -- they want to make a relationship between Iran and America.

RAMAN: It's a long shot. The U.S. still considers Iran a state sponsor of terrorism and Iran is still refusing to back down and suspend its nuclear program. It's not the talk of countries coming together, but not enough to discourage some in Tehran who right now see a chance for peace and are hoping it will pan out.

(END VIDEO TAPE)

RAMAN: But, Wolf, it all goes back to Iraq.

Iranian leaders think they have leverage and they are banking on the fact that that world is more fearful of an Iraq descending into civil war than it is of the potential of a nuclear Iran -- Wolf.

BLITZER: Aneesh, now there are more statements from Iranian leaders about Israel. The prime minister of Israel, Ehud Olmert, had been in Washington today meeting with the president.

Talk a little bit about what we're hearing from the leadership where you are, in Tehran.

RAMAN: Yes, Wolf, Iran's president speaking to members of his cabinet today. Israel -- he said Israel would disappear. It follows, of course, comments earlier where he had said Israel would be wiped off the map. These are the comments that formed the backbone of fear that Iran could be pursuing a nuclear weapon.

Now, when pressed, Iran's president says he intends, in those remarks, to say if elections were held in that area, if all Palestinians could vote, they would vote Israel off the map -- he doesn't mean it in military terms.

But the more he says these statements and given the change in Congress, you get the sense here that Iranians feel the threat isn't from the U.S. right now -- and they did feel before an air strike could come any night -- but instead now it's from Israel. And over the weekend, the government warned Israel that if Iran was attacked, the Revolutionary Guard here would respond swiftly -- Wolf.

BLITZER: Aneesh Raman reporting for us from Tehran.

Thank you, Aneesh.

Coming up, a Republican White House and a Democratic-controlled Congress -- will it mean gridlock or can they cooperate?

We'll talk about that with Bay Buchanan and Paul Begala.

They're standing by for our Strategy Session.

Plus, Senate Democrats planning a resolution calling for the redeployment of U.S. troops in Iraq to begin in as little as four months from now.

I'll talk about that with the current chairman, the outgoing chairman of the Senate Armed Services Committee, John Warner of Virginia.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Let's check back with Carol Costello for another look at some important stories making news -- hi, Carol.

CAROL COSTELLO, CNN CORRESPONDENT: Hello, Wolf.

And good afternoon to all of you. It seems like it would not be Florida without an election controversy. Auditors there are now recounting votes and probing alleged irregularities in a tight Congressional race in the state's 13th District. The contenders are vying to replace Republican Congresswoman Katherine Harris. You remember her from the mother of all election controversies. She was Florida's former secretary of state, who certified George W. Bush the winner of the disputed 2000 presidential vote in the state.

Defense Secretary Donald Rumsfeld will not attend a NATO summit this month. Just hours ago, a Pentagon official announced that Rumsfeld has dropped plans to join President Bush at the meeting in Latvia. But, the Pentagon is reaffirming that Rumsfeld intends to remain at his post until his successor is confirmed by the Senate.

The Reverend Martin Luther King will become the first African- American civilian to be honored with a monument on the Washington Mall. At a groundbreaking ceremony today, President Bush praised the slain civil rights leader as a man who "redeemed the promise of America."

Former President Clinton -- you see him there; Oprah Winfrey -- you saw her just a short time ago; and the Reverend Jesse Jackson were among about 5,000 people in attendance. And the memorial itself, Wolf, is between the Jefferson and Lincoln Memorials. And it will occupy a pretty big space there, which is a controversy in itself.

BLITZER: A very beautiful ceremony today.

And good luck to everyone involved in putting that together.

Thanks, Carol, for that.

Coming up, Democrats preparing to call for a phased redeployment of U.S. troops in Iraq.

Can the new Congressional majority help reshape the war?

We'll talk about it with Paul Begala and Bay Buchanan in our Strategy Session.

Plus, independent Senator Joe Lieberman promising to stick with the Democrats.

But will he?

We'll show you what's riding on his decision.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: The political news keeps on coming quickly.

Let's go to CNN's Mary Snow.

She's in New York with this story just coming in.

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, the Associated Press is now reporting that former New York City Mayor Rudy Giuliani has taken the initial step in a 2008 bid for the White House. Again, this attributed to the Associated Press.

We just got off the phone with Rudy Giuliani's spokeswoman. Sunny Mindel would neither -- did not comment on this report, saying she would neither confirm nor deny this report.

Rudy Giuliani was just in Pennsylvania yesterday and was asked when he would decide whether or not he would run-for president. He said he hasn't made that decision and that he would expect a decision some time next year.

We're going to have a full report in the 7:00 p.m. hour -- Wolf, back to you.

BLITZER: All right, Mary, thanks very much.

let's talk about this. This is important news.

Joining us in our Strategy Session, Paul Begala and Bay Buchanan, our political analysts.

Rudy Giuliani effectively throwing his hat in the ring. Not a huge surprise. We've been bracing for it.

But why is it important -- before we get to some of the politics -- for these guys to create these exploratory committees?

It's all about what?

PAUL BEGALA, CNN POLITICAL ANALYST, DEMOCRATIC STRATEGIST: M-O- N-E-Y. The Fabulous Thunderbirds just have a song on it, you know? How do you spell love? M-O-N-E-Y. That's how you spell victory in these primaries.

Now, Rudy Giuliani is a rock star. He will be able to raise lots of money. He'll be able to do it legally now.

He's a really remarkable talent for the Republicans. He showed courage and clarity on 9/11 when his city was heartbroken have attacked.

He will, I suspect, have a difficult time with some of Bay's wing of the party, because he is, as we speak today, he is pro-choice on abortion. He is in favor of gay rights and he's against gun-controls.

Now, not to be a cynic, but you watch. He's going to switch on at least the abortion issue, or he has very -- I think, very little future with most Republicans.

BUCHANAN: Which makes him an opportunist, too, so, great. We're really looking forward to this.

BEGALA: Power of prayer.

BLITZER: I want to...

BEGALA: You know, it's the power of prayer.

BLITZER: Bay, take a look at these. This is about two weeks ago -- old, the snapshot, our last poll on registered Republicans and how they line up right now. Giuliani gets 29 percent; John McCain, who we're expecting to create this exploratory committee very, very soon, as well; Newt Gingrich down at 12 percent; Mitt Romney at 7; and Bill Frist at 6.

Very, very early, but Giuliani -- I guess in addition to creating this committee and going forward with the opportunity to raise money, he's hoping to deter others -- other Republicans from throwing their respective hats in the ring.

BUCHANAN: I don't know who he's going to attempt to deter. There's -- the number now is $100 million that you're going to need to raise. That's what people out there are talking about who are looking at these (INAUDIBLE)...

BLITZER: To get the party's nomination?

BUCHANAN: Yes, to get the nomination. And that's a huge number. It's the number that George Bush hit.

So I don't know that you need that much. But the fellows that are going to be able to raise that -- of course, McCain is going to be out there raising that kind of money and I think Mitt Romney is very capable of doing that.

There's a next here. They're not going to -- they can't raise that. But I don't think Giuliani is going to deter any of them, because he has the same -- you know, you talk about my wing of the party. The base of the Republican Party in primaries is a social conservative one. It is extremely strong if you look to Iowa and South Carolina. This is where the activists are.

And they see Giuliani, and on social issues, he looks very much like Hillary Clinton. And you tell me, do you think she could make it through our primary?

BEGALA: He's actually been to the left of Hillary on some of those social issues.

BUCHANAN: I suspect...

BEGALA: Seriously, when they were running together, Hillary was the more moderate on social issues.

BLITZER: On the Democratic side...

BUCHANAN: She's (INAUDIBLE)...

BLITZER: ... Tom Vilsack, the governor of Iowa, has already said he's creating that committee to start raising money.

People think, you know, we just went through this election...

BUCHANAN: (INAUDIBLE).

BLITZER: ... why are we already talking about...

BUCHANAN: Because a lot of us think '08...

BLITZER: ... 2008?

But you know what?

The Iowa caucus, the New Hampshire primary and an accelerated primary schedule, especially in the Democratic Party, a little bit more than a year from now...

BEGALA: Fourteen months from now.

BLITZER: ... which in this political situation is not a long time.

BEGALA: It is. And I think the sort of conventional thing to do is to bemoan that. I don't. I think it's good for those politicians to spend a lot of time on the campaign trail. Yes, it wears them out and so forth. But it also wears down their preconceived prejudices. It teaches them about other regions of the country.

They'll have to actually perform in small groups, really small groups -- four, five, 10 people in the living room.

So I think it's very -- Tom Vilsack has a lot of talent. There are a lot of Democrats who wanted to see him as the running mate to John Kerry and he made the final cut, so I wouldn't count him out either.

BUCHANAN: But you know what's disturbing, this election we just had, much of it was about how they're sick and tired of Washington no longer is in touch with the people. And if you raise $100 million, I'm going to tell you, you're a corporate man. That is what you are and that's who you're going to be responding to, the American people are going to spot that a mile away. I think that they can hurt themselves if that's what they're about, is just raising the most money.

BLITZER: In the "Newsweek" poll, take a look at this. The job approval number for George W. Bush is down to 31 percent approve, 63 percent disapprove and I think this sort of underscores that this past election, which the Democrats did so well, was a referendum on the president.

BEGALA: It was. That's a catastrophically low number. You know the Democrats had an awfully good election night, 28 House seats, maybe a few more as they recount and finish up the last couple of seats. But you almost wonder why it wasn't more with the president that unpopular. What's the way forward now? OK, I worked for President Clinton, he was not quite that unpopular but we had a disastrous 1994 election year in part because of my incompetence, I was one of his advisers. Our phrase in 95 was let's put points on the board, let's just do some things to get some things done. Even though we had to work with the you know hated Republican congress, we did it. This president, don't count him out. He has a remarkable opportunity. If I were going to advise him and I know he watches the situation, Mr. President, it's all about energy independence. If a Texas oil man would break with the oil companies and be for energy independence, alternative fuels, taken away the subsidies oil companies have, he would have the Democrats onboard and the Republicans, he could go back up to 60, he could.

BLITZER: If he accepts that strategy -- because I spoke with the White House chiefs of staff Josh Bolton yesterday and it sounded from what he was saying to me they are very open to moving aggressively, very quickly, right now, increasing the minimum wage, which a lot of Democrats want that. And comprehensive immigration reform, including a guest worker program, and a pathway to citizenship for 12 million illegal immigrants.

BUCHANAN: Talk about misreading the electorate. I mean this was without question a referendum on George Bush and his policies. And he is the one that's always supported this kind of comprehensive idea with respect to immigration. The people in the country do not support it.

BLITZER: A couple of those Republican congressional wannabes or incumbents, Randy Graf in Arizona, J.D. Hayworth in Arizona, this was their signature issue. They both lost.

BUCHANAN: And Tom Tancredo won by 20 points in a state where its governor went down by 20. So and as I said before, Arizona had four propositions on the ballot, they won by over 70 percent, every one of them was tough immigration policy. The country wants a secure border and they want their laws enforced. That is what they want, they do not want amnesty or any guest worker or whatever you want to call it. Democrats would be foolhardy to move ahead on this because it is so controversial out there and I'll tell you if Republicans were smart they would stop it cold and have something to run on in two years.

BEGALA: History will look back on President Bush on two metrics, Iraq which right now looks like a tragedy and a failure and energy dependence. These are the two great challenges of our era. He has not done much. He has given a couple of pretty good speeches actually so it's not an impossible cause for those of us who believe in energy independence and alternative fuels, that's where he needs to go. Bay makes a good point, immigration is very divisive and 100 years from now, no one will remember what President Bush did about immigration. They will remember if he took on global warming and energy independence and I'm begging him to do it. He'll find a very receptive group of Democrats...

BUCHANAN: Amnesty for 13 million, they'll remember, they'll be in the streets in a matter of months.

BLITZER: We'll watch, thanks, Paul Begala, Bay Buchanan. As usual and still to come, how is a politician who some had written off only months ago now holding the balance of power in the United States Senate? We'll tell you about the power of Senator Joe Lieberman's newfound independence. And might Democrats have a plan to bring American troops home from Iraq in the coming months. I'll ask the current Republican Chairman of the Senate Armed Services Committee, John Warner what he thinks about that, he's standing by live to join us.

(COMMERCIAL BREAK)

BLITZER: What a difference an election makes. Many people thought his political future was in peril only a few months ago. But now Senator Joe Lieberman of Connecticut could just be one of the most powerful people in the United States Senate. Let's go to CNN's Carol Costello. She is standing by to explain. Carol?

CAROL COSTELLO, CNN CORRESPONDENT: Wolf, you know Joe Lieberman certainly made many of us sit up and say what did he just say? Could this longtime Democrat switch parties and allow the Republicans to maintain their edge in the Senate just as the Democrats are ready to grab it? We do know this, Joe has his mojo back.

(BEGIN VIDEOTAPE)

SEN. JOE LIEBERMAN (I), CONNECTICUT: I'm Joe Lieberman and I approve of this election.

COSTELLO (voice-over): It was an amazing achievement, a Democrat losing in the primary, losing his party's support and money only to run as an independent in the general election and he took the high road. Never attacking Democrats, even telling Wolf Blitzer in THE SITUATION ROOM, he remained blue through and through.

BLITZER: Can you look into the camera and tell the people of Connecticut once and for all you would not then join the Republican caucus?

LIEBERMAN: That's absolutely what I said. Are you representing the Republicans here?

BLITZER: I'm asking the questions.

LIEBERMAN: No. The answer is I have made that clear.

BLITZER: So there's no chance you would side with the Republicans even though you would become a chairman potentially of the committee?

LIEBERMAN: No, I'm a Democrat and I will remain a Democrat.

COSTELLO: But now that he's won an independent ticket his tone seems to have changed. When asked on "Meet the Press" if he'd cross over and become red...

LIEBERMAN: I'm not ruling it out but I hope I don't get to that point. COSTELLO: And that would be bad for the now famous Democratic sweep. If Lieberman turns Republican, Senate Democrats would lose their newfound majority. Why is Lieberman being coy? Some high ranking Democrats say it's payback time.

PROF. JOHN ORMAN, FAIRFIELD UNIVERSITY: I wouldn't say gloating but he feels very comfortable about himself. He said for the first time he feels very, very independent.

COSTELLO: But it could be Lieberman is just feeling the love for those who put him back in office. For a guy who's been a Democrat for decades, he sure got a lot of Republican support. Senator Susan Collins of Maine spoke glowingly of him. John McCain allowed two of his aides to consult with the Lieberman camp. Newt Gingrich endorsed his run. Even President Bush chose to support him by deciding not to outwardly support Connecticut's Republican candidate.

BUSH: I'm going to stay out of Connecticut.

(END OF VIDEOTAPE)

COSTELLO: So, look for Senator Lieberman possibly becoming chair of the Homeland Security Committee, something he'd take over from a friendly Republican who helped him with his campaign and that Wolf would be Susan Collins of Maine.

BLITZER: Carol, thanks very much for that. We want to talk a little bit more about all of these political developments. Our World Affairs Analyst William Cohen is here, he's a former defense secretary and chairman and CEO of The Cohen Group. You know Joe Lieberman quite well, you served in the United States Senate with him. You're a Republican, he of course was a Democrat, he's now an independent. He is going to be the chairman of the Homeland Security Committee under the Democratic majority as well. Do you think it's remotely possible despite some of the coy words Carol was just reporting on that he might switch over and caucus with the Republicans?

WILLIAM COHEN, CNN WORLD AFFAIRS ANALYST: I think it's remotely possible, not likely that he would do that. I think he's going to wait and see how far to the left the Democrats might decide to drift on security issues. And if he's persuaded that they're going too far to the left he may feel that he would have no alternative but to then switch and side with the Republicans, which will throw it into a 50-50 split with the vice president casting the deciding vote.

BLITZER: And that's what makes him so powerful right now. He has that lever. The Democrats take the power of the majority, right now they want to be the chairman of the respective committees, they want to have that leadership. And they know that if, if this independent Senator Joe Lieberman were to switch, that would go away.

COHEN: Well, he's sort of the governor on the accelerator right now. I don't know how long this will play out but I think he's going to satisfy himself. First of all, he is a Democrat, he tends to be a conservative or moderate Democrat. Certainly on national security issues and I think he's going to want to satisfy himself but this does not represent a real shift, a dramatic shift to the left on the part of the Democratic Party but he feels that that would not be something that would be successful for 2008.

BLITZER: We have now confirmed that Rudy Giuliani, the former mayor of New York, is creating this exploratory committee, filing the paperwork to run for president to start raising money. John McCain expected to do that very soon as well on the Republican side, the Iowa governor Tom Vilsack, the current governor, he's already announced he's doing that on the Democratic side. Are you surprised that these guys are doing it so quickly after this election?

COHEN: Not really. I think the race has already started. No one wants to be beetled on coming out at the very end of this particular race. So they're all kind of lining up and I think they also want to make sure that they're sending a signal to potential fundraisers, don't just commit to one candidate. Senator McCain is very likely to declare early next year I believe and if he does he's going to throw a lot of financial support. I think Rudy Giuliani wants to say wait a minute, it's not a one-man race, or one-horserace. Let's put this committee together and see what we can do as well.

BLITZER: It's interesting that Senator McCain, Senator Lindsay Graham of South Carolina, both are Republicans, many would regard them just a little bit of mavericks. They're both saying to win in Iraq, the United States has to deploy many, many more troops. Instead of starting to withdraw troops, more troops, thousands more troops have to be deployed. What do you make of this?

COHEN: I think the key is going to be if the chairman of the joint chiefs said they want to re-evaluate now what they see as the way forward. You have to take the recommendations coming from the military now. They can no longer say that a strong secretary of defense has to press their view. Now that strong secretary of defense has decided to resign and the president's appointed a new secretary. Now they can come forward if they couldn't before and frankly, anyone wearing four stars should have the strength to stand up to any secretary of defense. But nonetheless, here they are to say let's see what the recommendation is from the professional military, see how that comports with the Secretary Baker and Lee Hamilton the so-called Iraq study group and see if that presents a proposal that can rally forces from McCain all the way to Carl Levin on the Democratic side.

BLITZER: We'll see it and we'll watch together with you. Secretary Cohen thanks very much for coming in. Up next, the outgoing chairman of the Senate Armed Services Committee John Warner, he's standing by live right here in THE SITUATION ROOM. Plus, Jack Cafferty wants to know if you think it was wrong for Nancy Pelosi to say that impeachment of President Bush is quote, "off the table." We'll be back with your email. Stay with us, you're in THE SITUATION ROOM.

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BLITZER: Lou Dobbs standing by in New York for a quick preview of what's coming up right at the top of the hour. Lou? LOU DOBBS, CNN ANCHOR: Wolf, thank you very much. Coming up at 6:00 p.m. eastern here on CNN tonight, we'll be reporting on the huge financial burden on our middle class families struggling to pay for their children's higher education. College tuition costs rising twice as fast as inflation. Working families falling deeper into debt. We'll have that special report and troubling reports tonight. That Communist Chinese submarines are operating undetected near our aircraft carriers. We'll have a special report on why that's happening and the rapidly escalating challenge from communist China. And an illegal alien trying to avoid deportation from this country for a second time remains in a Chicago church after three months. What in the world are our immigration officials thinking? Her son's on his way to Mexico. I'll be talking with Congressman Duncan Hunter and Charlie Rangel, Rangel set to be the chairman of the House Ways and Means Committee about what we can expect. We'll have that story and a great deal more at the top of the hour here on CNN, please join us. Wolf, back to you.

BLITZER: Lou thanks very much. It was the central issue going into the election and now the war in Iraq looms larger than ever as Democrats prepare to take control of the Congress. They're planning a resolution calling for a phased redeployment of U.S. troops to begin in four to six months. For more on where we're going, let's bring in the current chairman of the armed services committee Republican John Warner of Virginia. Senator, thanks very much for coming in.

SEN. JOHN WARNER, (R) VIRGINIA: Delighted Wolf.

BLITZER: Early in October, you came back from a visit to Iraq with Senator Carl Levin, the ranking member and you caused a lot of stir by suggesting you know what, it's time to rethink this whole strategy. If the White House would have listened to you then -- because they were angry at you as you well know, do you think it would have made a difference, especially in your state of Virginia?

WARNER: I wouldn't want to try and translate that important step that I made and statement I made into politics. I viewed my responsibilities as chairman of the armed services committee, my first responsibility is towards my nation, not politics and particularly the men and women of the armed forces and their families who unfortunately are dying and are continuing to be wounded. So that was what was in my mind when I made the statement and I think it has energized a great deal of thinking throughout the administration, not that it wasn't going on --

BLITZER: But you know, Senator -- excuse me for interrupting -- that a lot of Republicans, including Newt Gingrich, the former speaker of the House, say that if the president would have done before the election what he did the day after, namely dump Donald Rumsfeld as defense secretary and signal he was willing to do what you were calling for, come up with a new approach, a new strategy, could have made a huge difference in Virginia where Jim Webb won by what, about 7,000 votes out of 2.5 million cast.

WARNER: Wolf, I have been through five elections myself as senator and many others prior thereto working for candidates. There are a lot of factors that go into that final vote and so you cannot put -- I don't think, any greater emphasis on one than the other. And really, that answer as to whether or not it would have affected an individual is best answered by those three individuals who lost. My dear friend George Allen and Chafee and indeed Conrad Burns, they would be best able to answer that question.

BLITZER: Jim Talent, don't forget he lost in Missouri as well as your incumbent Republican --

WARNER: The other by one percent.

BLITZER: Senator Carl Levin, your friend.

WARNER: And he is a friend.

BLITZER: You've worked closely with him, I know he is --

WARNER: Twenty eight years --

BLITZER: Now you're going to be the minority, ranking member as they say. He's now saying, you know what, four to six months start redeploying troops. Good idea?

WARNER: First technically under our six-year rule I step down and presumably I'll be nominating, I know I'll nominate but I'm hopeful John McCain will be the ranking member.

BLITZER: So you're not going to be on the armed services committee?

WARNER: Oh no, I'll stay on the committee but John will succeed under our six-year rule which the Democrats don't have, but the Republicans do have. Now, back to Carl's proposal. It's one that deserves respect. But let me tell you, Wolf, our committee has a lot of work to do between now and the 31st of December. Number one, I've arranged for General Abizaid to come before the committee this coming Wednesday. Having just met with --

BLITZER: He's the head of the central command in charge of the entire region, including Iraq.

WARNER: And he met with Prime Minister Al Maliki today. Secondly, our committee presumably if the White House comes forward with the nomination of Gates will have that the first week, the hearing, in December. Then we'll have the Baker commission come before the committee when they make their report. Then the chairman of the Joint Chiefs of Staff has done an independent study among his own military analysts. Then the last --

BLITZER: What I hear you saying is -- this lame duck Senate, as it's called, you're going to be pretty busy between now and January.

WARNER: We'll be busy. And also, we have to contribute to the overall dialogue of what happens when the U.N. resolution which authorizes the coalition forces, i.e. United States, Great Britain and others, to continue the operations that comes up for reconsideration and we know that the government in Iraq is very anxious to influence how that resolution is drawn up. So before we reach any conclusion be it on Carl Levin, my respected new chairman, his proposal or any other, we have to go through a lot of thinking.

BLITZER: Levin says one thing, your friend the Democrat, McCain and Lindsay Graham say exactly the opposite. If you want to win in Iraq, you can't start redeploying. You have to send a lot more troops in to get those Iraqi troops up to speed. What do you make of that?

WARNER: Wolf, I come back to my proposition. We as a Congress and most particularly the Senate and our committee have to go through at least five analytical steps before we finally decide and make recommendations, hopefully to the president, on a change of strategy. I've outlined them. Each have their proposals, but I'm urging my colleagues carefully go through these steps and study all this material that comes before us because the stakes are enormous in the next step that we take with respect to a change of strategy in Iraq.

BLITZER: You know Joe Lieberman quite well. Is it possible, do you think it's possible he could flip and instead of caucusing with the Democrats caucus with the Republicans and thereby give the Republicans the majority in the Senate?

WARNER: Joe Lieberman has been a friend of mine from the beginning. You may not have remembered this but when I drew up the resolution for operation gulf number one, Joe Lieberman, it was the Warner-Lieberman resolution. We've been that close in working in the Senate all these years, he's a member of the armed services committee. My own opinion is I take him at his word. He's going to become an independent Democrat, work within their structure and therefore I think any speculation of the type posed by your question and to my good friend Bill Cohen who also was a member of our committee, I would suggest you put that to the side and let the Senator from Connecticut re-establish himself with his colleagues.

BLITZER: One final question Senator, a lot of the so-called pundits say that Jim Webb didn't really win as much as George Allen lost the election in Virginia with his macaca statement, some of the other blunders. What do you think?

WARNER: Well, I worked with George through much of that campaign, stood by his side, certainly in the last 10 days to two weeks of it. I was always available but that was when he really brought me in. I did my best to see that he was re-elected, a fine man. Jim Webb was actually a Marine Corps aide to me when I was undersecretary, secretary of the navy. So after 35 years we're now two old marine captains, I'm the old one, he's the younger one, are reunited to work on behalf of the men and women of the armed forces.

BLITZER: And people of Virginia as well.

WARNER: Oh yes.

BLITZER: Don't forget about those Virginians. Senator, thanks for coming in.

WARNER: Thank you.

BLITZER: And Jack Cafferty wants to know was it a mistake for Nancy Pelosi to say impeachment is off the table? That's coming up next.

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BLITZER: Back to New York and Jack. Jack?

JACK CAFFERTY: The question this hour Wolf is was it a mistake for Nancy Pelosi to say that impeachment is quote, "Off the table?" Jeff in New York writes, "Yes, I voted the Democrats in because I wanted the constitutional violations and other lawbreaking by this administration investigated. Will the Democrats again demonstrate their lack of backbone by failing to undertake these investigations, if so I and many others are likely to vote them right back out in the next elections." Mark in Boxboro, Massachusetts, "President Bush promised he would only invade Iraq quote, as a last resort. Then he kicked out the U.N. inspectors and went to war so he could be reelected in 2004. Of course he deserves to be impeached, but it would be worse than pointless unless they also impeached Cheney."

Don in Massachusetts, "Many bloggers and activists wanted the president impeached immediately if not sooner when the Democrats took control. Ms. Pelosi was correct to take it off the table of immediacy. There's enough division in this country without opening up this wound. If a smoking gun is found, let's deal with impeachment then. Until that happens, full speed ahead on the platform the Democrats ran on." Terry in North Carolina, "Yes Jack, Nancy Pelosi made a mistake, she doesn't have the authority to wave that part of our constitution." George writes from Florida, "Jack, if there's one thing I've learned in the 48 years I've been married to my wife it's that a woman has a right to change her mind. It would bode well for Mr. Bush to remember that and not push the envelope too far." And Jim wrote this, "Nancy Pelosi meant that impeachment would be under the table, to keep in step with the administration's approach to things." If you didn't see your email here you can go to cnn.com/caffertyfile and read more of these online. Wolf?

BLITZER: Very quickly, Rudy Giuliani throwing his hat in the presidential ring. What do you make of it?

CAFFERTY: It's pretty -- I'm not surprised. I'm surprised he committed this early. Giuliani has got to be considered a front- runner along with John McCain, but boy, there's a long way to go before people start voting again, so we'll see.

BLITZER: We have a lot more coming up, 7:00 p.m. eastern. Jack thanks very much. We'll be back in THE SITUATION ROOM, let's go to Lou in the meantime in New York. Lou?

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