Transcripts For CNN The Situation Room With Wolf Blitzer 20101110

cargo bomb plot was targeting the eastern united states. how close americans came to actually being attacked. a dramatic new attempt to make sure smokers understand their health and their lives are at risk. stand by to see the very graphic labels you could see soon on cigarette packs around the country. i'm wolf blitzer. you're in "the situation room." we begin with a surprise look today at a new proposal to try to get america off the roller coaster of deficit spending. over the past decade, the nation has gone from a $269 billion budget surplus to a projected deficit of almost $1.4 trillion this year alone. the draft proposal out today would slash the budget red ink by some $4 trillion over the next ten years. the blueprint was released earlier than expected by the co-chairman of the bipartisan panel appointed by president obama. let's bring in jean sahadi for cnn money. what are the highlights of this proposal? >> well, it pretty much touches everything in the federal budget. it reins in spending. they get to the $4 trillion basically 75% of it is through spending cuts. they offer to reform the tax code, that's the other 25% of the deficit reduction. they reform social security, they speak about health care costs, reining them in. they offer some procedural options to do that. i should say this is really the chairman's proposal, not the commission's proposal. it is not president obama's proposal. it is really the framework that the commission is going to be working with. >> right. there is 18 members on this commission. and if it is going to be the proposal of the entire commission, 14, 14 members have to agree. and that's still problematic. jean, let's talk a little bit about some of the specifics because there are some pretty bold proposals to change. first, as far as the tax plan is concerned. >> right, they put forth a number of options to reform the tax code, but broadly all of them would do the following. they would lower income tax rates, they would reduce -- they would lower income tax rates and reduce tax breaks, the value of tax breaks. and bring in more revenue. plan calls for a cap on federal revenue at 21% of gdp, about 3 percentage points more than the historical average. the trick, though, is in cutting those tax expenditures, favorite things like the mortgage interest deduction, how deeply you cut into it will determine how low rates -- income tax rates for individuals and businesses can go. they give a number of different options for the commission members to consider. >> social security, always the most sensitive area dealing with what is called entitlement spending. they're proposing some dramatic shifts, though, including the retirement age. how do they want that to work? the two co-chairman of this commission? >> it is not as dramatic as other proposals i've seen. they want to raise the retirement age from 67, where it will be in about 12 years to 68 by 2050. over a 40-year period they want to raise it by one year. that's about one month every two years. that's a very slow increase relative to some other proposals we have seen. and beyond that, they would raise it to 69 by the 2070s. that's one. and then another proposal they make is to -- sorry, to change the cost of living index. every year you hear about seniors getting their benefits adjusted upward according to inflation. that would still happen, but at a slower rate. they would use a new formula to calculate inflation. some people say it is more accurate reflection of inflation, others say less generous. >> and whenever you deal with social security benefits there is going to be a big uproar. more on this standing by later. jean, thank you very much. let's talk about the political realities of this proposal. we'll bring in our senior political analyst gloria borger. how likely are these proposals going to be to move forward? it is by no means a done deal. >> this is a chairman's mark. they wanted to get this out there to put this on the table. i think we should give the two chairman alan simpson and erskine bowles some credit here for putting some really bold, serious ideas on the table. but you do need 14 out of 18 members to approve of this in order to get this proposal before the congress. given the fact that this has both large spending cuts in it and a change in the tax system, i'm not sure, wolf, that they can get there. but it is in everyone's interest right now to try and get something before the congress. so i won't say no. we just don't know at this point. >> we're already, though, hearing loud complaints from liberals and from conservatives. i don't think this should be surprising. >> no. it is not surprising. wolf, we have been debating these issues for years. they're the same issues. nancy pelosi just put out a statement, i just got it on my blackberry, that called it simply unacceptable. a lot of the spending caps are going to be unacceptable to democrats. and the changes in the tax system, particularly eliminating sort of the deductions on mortgage, for example, are going to be unacceptable to republicans. but what was interesting to me about looking at this document is there wasn't just one tax option they gave. they gave three different scenarios on the tax front because it was clear that the chairman probably couldn't agree on what the tax option should be. and they're giving you a trade-off here. they're saying, if you lose some of your deductions, you're going to get a lower overall tax rate. so say you lose your mortgage interest rate deduction and you're a wealthy person. your rate is now 39%, that 39.6%, that would actually drop to 23%. so, again, they're saying to people here, take a look at these, there are trade-offs this is a very serious problem, we have to deal with it and just don't say no. we have to try and work on this. >> for the highest income, right now, it is 36%. the rate under the bush tax cuts, back up to 39% if the bush tax cuts lapse, back to the tax rates 3.5% higher than existed during the clinton administration. just want to be precise on that. >> that's the number they used, by the way, in their outline was the 39.6% because we don't know what will happen with that. >> nancy pelosi and a lot of the liberals, they don't want to discuss reducing social security benefits. for them, that's a nonstarter. >> it is interesting because when you read this very carefully, we have been, again, having this social security debate for, what, more than a decade. and so there aren't that many things that you can do, wolf. what is interesting to me here is that these proposals are not really the kind of structural reform that we saw during the bush years. there is no talk about so-called privatizing social security. as you were speaking about before, what they're talking about is raising the retirement rate very gradually. the difference will be that wealthier retirees will get fewer benefits, and probably have to pay more in payroll taxes. that may not go over so well. but what's important here is the money they save on social security goes back into social security. liberals have always complained, wolf, that you save the social security money and you put it into deficit reduction, you balance the budget on the backs of the seniors. what they're saying here is we're not going to do that. whatever we save on social security goes back into the system to make it solvent. >> we'll see if this initial proposal by erskine bowles and alan simpson, if it gets off the ground, if they get a total of 14 members of their commission on board. we'll see what happens. >> it gets the conversation going, which is what's important. >> we had a little conversation here as well. gloria, thank you. other important news, president obama, he's in south korea right now, meeting with other leaders of the world's biggest economies. tensions over currency values and trade expected to run high at what is called the g-20 summit. especially between the united states and china. our senior white house correspondent ed henry is joining us now from seoul. how much of this summit will be about china for president obama? >> reporter: well, wolf, there has been a lot of pregame speculation. a lot of tension between the u.s. and china here at the meeting of the world's largest 20 economies. u.s. officials are trying to downplay that and say, look, there may be some raising of these issues, of course, about currency manipulation in particular and trade imbalances, but they're hoping they may be able to work out some sort of compromise on traz imbalances and they don't want to turn this into some sort of a huge confrontation or brawl. here's why. u.s. officials are saying privately they expect the president to announce here he's going to welcome president hu of china to washington for an official visit as early as january. so they don't want this to become a big brawl on the eve of that. they want to try to make a little bit of incremental progress here. and then sit down for face to face talks back in washington in the next couple of months and try to move forward on some of the big issues, wolf. >> germany and britain are pressing the united states now to cut down on the debt, the enormous debt the united states has. we have been talking about these new debt proposals that these commissioners have come up with. what are you hearing there? what is likely to happen at the g-20 if anything? >> reporter: well, it could sfreng th strengthen the president's hand in some ways, with his own fiscal commission coming out with a proposal, anyway, not done yet, obviously, far from that, but painful cuts proposed because you have countries like david cameron, he's put some real cuts on the table, austerity measures to show that britain is serious about getting their debt under control. others are wonder when the u.s. is going to do the same. look, this president is entering this g-20 under a much different political standing than the first one in london that he attended, in early 2009. there he was treated look a rock star and it was all about economic stimulus to stave off another great depression. now the president's political standing is much different. and instead of talking about stimulus, it is all about cutting debt here. it is a much different position for this president to deal with, wolf. >> ed henry traveling with the president in seoul, south korea. we'll stay in close touch. thank you. fire and rage, we'll tell you what set off this angry student protest on the streets of london. stand by. and passengers stuck on a crippled cruise ship know when they'll reach land and finally end their nightmare. sarah palin adds a little sugar to her mama grizzly style of politics. and the speculation about whether she'll run for president. down the hill? man: all right. we were actually thinking, maybe... we're going to hike up here, so we'll catch up with you guys. [ indistinct talking and laughter ] whew! i think it's worth it. working with a partner you can trust is always a good decision. massmutual. let our financial professionals help you reach your goals. the president and his predecessor, jack cafferty, is here with the cafferty file. jack? >> george bush is out peddling a new book and suddenly the former president's everywhere, all over the news casts, even on oprah's couch. two years later, it seems worth comparing the former occupant of the oval office to the current one. howard kurtz writes in his daily beast column that the contrast between presidents bush and obama in recent appearances could hardly be sharper. kurtz calls it the decider versus the agonizer. bush always talks in short, clipped, declarative sentences, very sure of himself, even on the weighty issues like waterboarding, saddam and wmds. on the other hand, kurtz writes that president obama's finally rendered prose and meandering around any topic makes him seem more like a think tank analyst. kurtz points out bush doesn't have as much on the line here except some image rehab. he compares the man who approved torture to the man who tortures himself. after eight years, president bush felt like most of the country couldn't wait to be rid of him, bring them on, wanted dead or alive and i'm the decider and had pretty much gotten on everybody's nerves including mine. this new love affair could be shaping up to be a bit of a one-term, one-night stand. 45% of those surveyed in a recent cnn opinion research corporation poll says bush was a better president compared to 47% who feel that way about president obama. a year ago, only 34% thought bush had been a better president. 57% thought so about mr. obama. at this point, the trend is not president obama's friend. here is the question, two years later, do you ever miss president bush? go to cnn.com/caffertyfile. post a comment on my blog. >> jack, thank you. no matter how you feel about sarah palin, most would probably agree she doesn't shy away from a fight. in recent days she's taken on the "wall street journal," the federal reserve chairman, and now, get this, she's going after the enemies of sugar. let's bring in our national political correspondent jessica g yellin out in california. what is palin saying now? >> she's taking on the pennsylvania education officials' fight against obesity. she was speaking at a fund-raiser at a private school in the state and she addressed a newspaper report that said public schools in pennsylvania are considering a ban on having sweets like cookies, cake and cupcakes at school parties. palin didn't like that idea and this was her response. >> i brought dozens and dozens of cookies to these students. i had to shake it up for you guys, especially the press, okay? because i wanted these kids to bring home the idea to their parents for discussion, who should be making the decisions what you eat and school choice? should it be government or the parents? it should be the parents. >> it turns out that newspaper report wasn't correct. state officials say they're considering ways to encourage healthier food choices, but there is no outright ban, whoops. palin did make news in other ways when she was asked if she would run for president, she said, she'll take it under prayerful consideration, but then, get this, she said if she does run, quote, i would be in it to win it. now you remember that line. it was from then candidate clinton when clinton announced she was running for president, it is interesting she's looking to hillary clinton for inspiration or for fun with references. wolf? >> hillary clinton's playbook for the political process right now. she's also really over the press right now. she's specifically taking on one of her critics. >> that's true. she's launching her new reality show this weekend and she's also in "people" magazine promoting it. in that "people" magazine article, she speaks directly back to karl rove, who has criticized her saying her new reality show does not lend her the gravitas needed to win for a run for president. so responding to rove, she says "i would like karl rove to come up to alaska and see me being in a man's world". that's an interesting turn of phrase because it does play into a theme we heard a lot from conservative women this cycle that you need to be like a man to win office, man up, be man enough. seems to be becoming part of the mama grizzly theme and something to talk about in the months to come, wolf. >> you know we will, jessica, thanks very, very much. the battle for the u.s. senate seat in alaska turns into a legal fight now. alaska election officials are counting write-in ballot s despite a challenge by the tea party. the federal government pushing a much more in your face approach to cigarette warnings. what they want smokers to know and see straight ahead. you could never deliver this much power in a space this small until now. introducing the craftsman compact right angle impact driver. delivering powerful torque, and greater control in the tightest spaces more innovation. more great values. craftsman. trust. in your hands. the house is moving forward with plans right now to put a prominent member on trial. kate bolduan has that and other stories in "the situation room" now. what are we learning? >> we just got word that the house ethics hearing for congressman charlie rangel will start this coming monday at 9:00 a.m. the house ethics committee charged the new york democrat with 13 counts of wrongdoing, mostly involving his fund-raising. and finances. the panel's plans to put rangel on trial on november 15th had been called into question when rangel fired his lawyers and said he might represent himself. some other things we're watching, this was the scene today in london. >> a group of demonstrators broke into the headquarters of britain's governing conservative party. they sprayed anarchy symbols and set off flares, and then set fires outside. they're angry about a government plan to help cut the deficit by allowing public universities to nearly triple tuition rates. eight people suffered minor injuries. at least 32 protesters were arrested. >> and an extremely controversial measure raising the minimum retirement age in france became law today. french president nicolas sarkozy signed the pension reform bill officially pushing the country's retirement weight age from 60 to 62. the proposal sparked massive protests across the country over the last two weeks. sarkozy says the move was needed to cut france's deficit and protect retirement and pension levels. 234 in china, a chinese court sentenced a consumer activist to 2 1/2 years in jail. what was his offense? setting up a support group for victims of the country's tainted milk scandal. a support group. at least six children died and hundreds of thousands of others got sick in 2008 and 2009 from the milk laced with the chemical mel season. the activist start an online support group after his own son got sick. he was convicted of disturbing the social order. just for starting a support group. >> that doesn't make any sense at all. thank you. the president says he's worried that america's bleak jobs picture is becoming "the new normal." i'll ask the economist mark zandi is mr. obama is right. a new sign of progress putting the defendants in the 9/11 terrorist attacks on trial. plus, the mystery of that orange streak over california. get what? it has now been solved. [ woman ] you know, as a mom, i worry about my son playing football. which is why i'm really excited. because toyota developed this software that can simulate head injuries and helps make people safer. then they shared this technology with researchers at wake forest to help reduce head injuries on the football field. so, you know, i can feel a bit better about my son playing football. [ male announcer ] how would you use toyota technology to make a better world? learn how to share your ideas at toyota.com/ideasforgood. sadly, no. oh. but i did pick up your dry cleaning and had your shoes shined. well, i made you a reservation at the sushi place around the corner. well, in that case, i better get back to these invoices... which i'll do right after making your favorite pancakes. you know what? i'm going to tidy up your side of the office. i can't hear you because i'm also making you a smoothie. [ male announcer ] marriott hotels & resorts knows it's better for xerox to automate their global invoice process so they can focus on serving their customers. with xerox, you're ready for real business. you're in "the situation room." happening now, chilling new details about the failed terror plot uncovered last month in britain. officials say explosives sent from yemen on a cargo plane probably would have exploded over the eastern seaboard of the united states if they hadn't been discovered in time. plus, they're counting write-in ballots for the u.s. senate race in alaska right now. something tea party candidates, the republican joe miller wants stopped. he's going to court to try to do it. i'm wolf blitzer. you're in "the situation room." president obama now, there is no escaping the economic misery that help cost his democratic party control of the house of representatives. he's in south korea now for the g-20 summit. but back here at home, there is a lot of debate and division over tax cuts, spending and the federal deficit. joining us now is mark zandi, the chief economist for moodys analystics. thank you very much, mark, for coming in. quickly, your reaction to these deficit recommendations, these deficit cut recommendations that this commission, at least the two co-chair men of the commission put out today, dead on arrival or is it going to go somewhere? >> i hope not, wolf. i think they're courageous. they have recognized that we have a very serious problem and they put four proposals, both in terms of spending, federal government spending restraint and tax increases. i think we need both. they laid out a pretty credible path. i think they have done a pretty good job of laying the foundation for better discussions going forward. obviously this will be a long arduous debate and i wouldn't anticipate any solutions coming to fruition quickly. i think this is good for a start. >> republicans at least most republicans are never going to support what you just said yourself, tax increases. and most democrats are not going to support cuts in social security and medicare. and if you want to deal with the long-term debt, you got to take those kind of tough decisions. >> you do. you have to do both. i think ultimately both republicans and democrats are going to recognize that and come together and make some hard decisions. and actually some of the proposals made today are quite creative. on the tax side, they propose limiting tax deductions. and by doing so, they're able to generate enough revenue to lower marginal tax rates for individuals and businesses. so i think they can gain support from republicans by doing something like that. and on the spending side, they have done some pretty creative things about addressing the problems with social security, making it more means tested, making it so that if you really need to benefit, you get it. i think that will help satisfy some of the concerns of the democrats. i think the details of this are quite creative and hopefully we'll get democrats and republicans coming together and solving this problem. >> you may be a little bit more optimistic about this than i am but that's a subject for the debate. let's talk about what the president said the other day, that there could be a new normal, that these big corporations, these big companies they simply get used to dealing with fewer workers and that this economic recovery is going to be a jobless economic recovery. that's what keeps them up at night worrying, worrying maybe the companies will do better but they're nothire a lot more people. >> it should keep him up at night. even under the most optimistic of forecasts it will take years to get back the 8 million jobs we lost during the recession. it is going to take a good solid, four, five years to get unemployment back to where we would consider it to be close to full employment. i am optimistic in this regard as well that i think, you know, american businesses, if they survive what we went through, they must be doing something right. they either have a market niche or they're very cost competitive, their earnings are strong, balance sheets are strong. i think with a little bit of policy certainty and a little bit of time between the great recession, i think they'll get their groove back, we'll get more jobs. and we'll be headed in the right direction. but, you know, it is going to take under any circumstances going to take a number of years to get back to where we're all going to feel comfortable about the way things are going. >> members of the house and senate are coming back to washington next week. the old members, the losers, those who are retiring, they still have a few weeks of work left before the new congress come in in january. one item they have to deal with, the bush tax cuts that were passed in 2001 and 2003, they do nothing it goes back to the tax rates that existed, the higher tax rates during the clinton administration. what do you think they're going to do. what should they do? >> well, i think the economic recovery is still very fragile. i don't think it can digest higher tax rates. i think it would be prudent to extend the tax cuts for at least one more year. and, in fact, i think that's what's going to happen. i think policymakers are coming to that conclusion. i think in 2013 when the economy is in a better place, i think it can digest higher rates of particularly upper income individuals but not in 2011. i don't think that would be prudent. i don't think they'll do it. >> will they continue the unemployment benefits for 2 million unemployed worker whose benefits are about to expire, could cost about $34 billion over six months. >> yeah. there too, going back to the weak recovery, i wouldn't do anything to jeopardize that. so i think it would also be prudent to extend those emergency benefits. at least for another several months. say, three months. and that would get us into next year. and hopefully by then we sort of seem some better job creation. at this point, you know, if we want to address our long-term fiscal problems, we have to have an economy that is growing. we can't go back into a recession. the risks are still very high that we might so we have to do everything to ensure that it won't happen. that mean no tax increases in 2011. let's give a little bit more to the unemployed workers so they don't pull back on their spending and we get this recovery moving forward. >> very quickly, you're a forecaster, now the unemployment rate is 9.6%. if it is anywhere close to that, in two years, when president obama is up for re-election, he'll be in deep trouble. where will the unemployment rate be in two years? >> i think it will be closer to 8.5% to 8%. we will be creating a lot more jobs by then, the economy will be headed in the right direction, still, 8.5% is a high rate of unemployment, but i don't think the economy is going to be in the face of incumbents, it will be to their back. >> mark zandi, thank you very much. >> thank you. there is a new crack in nasa's plans to send the shuttle "discovery" on its final missions. we have the details. it is being called the biggest change in cigarette packaging in a quarter century. the grim new warnings you will potentially be seeing very soon. mom, new shoes? old legs. p.a.d., the doctor said. p-a-d... p.a.d. isn't just poor circulation in your legs causing you pain. it more than doubles your risk of a heart attack or stroke. i was going to tell you. if you have p.a.d., plavix can help protect you from a heart attack or stroke. plavix helps keep blood platelets from sticking together and forming clots, the cause of most heart attacks and strokes. call the doctor about plavix -- please? i will. [ male announcer ] certain genetic factors and some medicines such as prilosec reduce the effect of plavix leaving you at greater risk for heart attack and stroke. your doctor may use genetic tests to determine treatment. don't stop taking plavix without talking to your doctor as your risk of heart attack or stroke may increase. people with stomach ulcers or conditions that cause bleeding should not use plavix. taking plavix alone or with some other medicines including aspirin may increase bleeding risk, so tell your doctor when planning surgery. tell your doctor all medicines you take including aspirin especially if you've had a stroke. if fever, unexplained weakness or confusion develops, tell your doctor promptly. these may be signs of ttp, a rare but potentially life-threatening condition, reported sometimes less than two weeks after starting plavix. other rare but serious side effects may occur. [ female announcer ] talk to your doctor about plavix. kate bolduan is back with other stories in the situation room right now, including a proposal to put dramatic warnings on cigarettes. what is this all about? >> this is interesting. today the federal government unveiled what could be the biggest change in tobacco health warnings in a quarter century. cigarette ads and packages would have to include nine large warning statements along with colored graphic images showing the negative consequences of smoking. the public may weigh in on the images used until january 9th. and the new labels will begin to appear on packages in two years. also, we'll soon know where the alleged 9/11 mastermind khalid shaikh mohammed will be tried. eric holder says that administration officials are close to making a decision on the trial location. holder's initial plan to try him and four other 9/11 suspects in new york was put on hold after officials in new york and some members of congress objected. they want the suspect to be tried in military court outside of new york. the poor shuttle, can't get a break. nasa technicians have found two cracks on the shuttle "discovery's" external fuel tank. they're examining the brakes to figure out the best way to repair them. a scheduled launch was postponed after crews discovered a gas leak. the earliest possible liftoff attempt is now set for the end of the month. a majority of people in new jersey support republican governor chris kristie's decision to shelf the nation's largest infrastructure project. a second-rail tunnel between new york and new jersey. this has gotten a lot of attention. a poll out today shows voters support the move by a 53 to 57% margin. a federal stimulus fund paid for part of it, but he says his state couldn't afford to pay $5 billion in the potential cost overruns. that governor, he's gotten a lot of attention recently. >> a rising stae ining star in republican party because he knows any government project and you know this too, there are always cost overruns what starts off as a $5 billion deal turns out to be a $10 billion deal. you know that will happen. so he's doing what he's doing. thank you very much. now that he's endured a midterm shellacking, she's president obama follow the clinton playbook and move toward the middle to work with the republican-dominated house of representatives? you're about to hear what the secretary of state hillary clinton says about that. that's coming up after the break. new pictures of supplies being loaded on to that cruise ship stranded off the coast of mexico. pictures you will see only here on cnn. come january, president obama will be dealing with a republican dominated house of representatives. so should he follow the playbook of former president bill clinton and move to the middle politically to try to get some things done? here's what his wife, the secretary of state, hillary clinton, had to say about that. >> can obama pull a clinton? well, i think he can show clearly the leadership that the country expects from him and which he's providing. >> your husband moved toward the middle. >> you know, i think that's -- that's sort of the conventional wisdom. but i don't think that bill changed his principles or changed his objectives or reversed course in any way. i think what he did was take a very clear-eyed assessment of what was going to be possible with the congress after the election, and moved on every front that he could to get things done and i think that's what you'll see president obama doing. >> let's discuss in our strategy session. joining us the democratic strategist and cnn political contributor james carville. and the republican strategist and contributing commentator rich gaylan. you're a friend of bill, a friend of hillary, used to work for the former president. do you think this current president will go to the bill clinton playbook and move towards the center? >> well, i think that the secretary of state said he didn't do that. and my recollection is they shut the government down and they said you ought to make a deal with the republicans. and he held firm and the republicans caved. he also vetoed welfare reform twice before he got the piece of legislation that he wanted. so the secretary disputes the move to the center as sort of narrative here and i think there is something to that, yes. you had the reality that he had to work with him to get things done. of course, and he did get some things done and they were awarded him by impeaching him. but most people in clinton land rep him standing fast on the government shutdown and not moving as some people urged him to do. >> but a lot of us remember, i covered the white house in those days and you remember, james, his liberal base was really upset when he went forward with that welfare reform legislation. even as revised, they weren't happy with him at all. >> right, he vetoed it twice. and the part i was unhappy about is the legal immigrants were being denied benefits and he assured he would fix that and as you recall, he did fix that. that was the most egregious part of the legislation and it was later fixed. so i don't -- i understand that, and i think the secretary was quite clear that he stuck to these things. you know, bill clinton was never overly a liberal democrat. he -- we ran for a spot that we ran in 1992 was on welfare reform but there was a certain type he was committed to and he ultimately got that kind of welfare reform. >> is barack obama the president of the united states a so-called new democrat, a middle of the road democrat along the lines of bill clinton? >> no absolutely not. and james is quite correct. i mean, president clinton was a democratic leadership counsel moderate democrat from the start, he didn't veer very far from that at any point through. i was thinking when i was listening to secretary clinton, she in the olden days of the watergate days we would have called that a nondenial denial. she was clever in the way she posed her answer about president clinton and president obama. but here is the problem that i think president obama has. he is not a middle of the road democrat. he is a liberal elitist democrat. he can't look at reagan to see how he recovered from the 1982 drubbing that he got because reagan depended on what we later called reagan democrats in the house and the senate. there are no obama republicans. so i suspect that when they finish playing nice with each other that what the president and his people are going to do is they're going to return to the harry truman model back in '46 to '48 when truman successfully by the way ran against a republican "do nothing congress" and republicans lost 75 seats in the '48 blowout. >> we'll soon find out if the president of the united states is a dlc so-called new democrat or not. that will become obvious in the next several weeks and months. guys, thanks very much. jack cafferty is asking, two years later, do you miss -- do you ever miss president bush? jack will be back in a moment with your e-mail. and we have an exclusive new look at that crippled cruise ship that has been stranded now for days. because of one word, imagination and reality have merged. because of one word, a new generation-- a fifth generation-- of fighter aircraft has been born. because of one word, america's air dominance for the next forty years is assured. that one word... is how. here a look at some hot shots of a foggy day in germany. over the city of dresden in the background. in china, a colorful underneath a bridge to celebrate the asian games. on a cloudy day in australia, tiger woods plays a tee shot before the australian masters. and in east berlin, germany, a gaggle of geese walk across a farm. a hot shot is worth a thousand words. i know you like them. >> when is the last time we did them two days in a row? it has been months. >> you said yesterday you liked them. >> yes, i think we should do them everyday. oh, the question, sorry. two years later do, you ever miss president bush? wilson, as a texan i should have some fondness for the former president and seems to be a good man, but not up to the task and surrounded himself with the worst team at the worst possible moment. miss him? i can't afford to. jack, you seem to want to have the bush years to be nostalgic to fawn over the recent elections where we gave the keys back to the car who wrecked the car in the firsts place. suzanne says that president bush is a man who is comfortable with who he is, and a man with integrity. he was a president who had to deal with difficult circumstances and i always felt he had america's best interest at heart. i miss him. and this one, ken said, people have incredibly short memories hence the return to republican power last week. do i miss him? no. and duane says, yes, i miss him. he was straight forward and he didn't beat around the bush, no pun intended. and scott says, no i'm quick to the draw when the ex-president appears on the television in order to change the channel to skip the last eight years. and jerry, compared to obama, there is no comparison. bush was honest and forthright with the welfare of the people as goal number one. obama is a political hack. and t in michigan, every single day, and pete, every single day, and you do, too, jack. and the never-ending supply of material he provided kept you employed for eight years. if you want to find more, you can find it on my blog. >> candy crowley is going to interview him sunday night after the state of the union. >> and jeb bush is going to be on there as well. >> and candy will do a terrific job as she always does. >> she, is terrific. and we will talk about the new recommendations of a presidential panel and where they can work and get off of the ground. and is the secret to making tastier beef letting the cows booze it up? ...and brains. ♪ a phone that gets you to the stuff you love faster. only from at&t. rethink possible. as a part time sales associate with walmart. when william came in i knew he had everything he needed to be a leader in this company. [ william ] after a couple of months, i was promoted to department manager. like, wow, really? me? a year later, i was promoted again. walmart even gave me a grant for my education. recently, he told me he turned down a job at one of the biggest banks in the country. this is where i want to be. i fully expect william will be my boss one day. my name is william and i work at walmart. ♪ the popularity of u.s. beef is on the rise in south korea, and people like the taste and the price which is making south korean ranchers nervous. paula hancocks reports. >> reporter: it is lunchtime at this south korean farm, and there is a definite whiff of beer in the air, but don't look at the owner, because it is the cattle who like to indulge three times a day -- breakfast, lunch, dinner all mixed with alcohol fermented feed. no expense feared to make these cows happy, which is a breed particular to south korea. the farmer says that the alcohol relaxes them making the meat more tender. he says that i have a wife and kids, but these cows are almost the same to me. they are like family. but all of this tender loving care is not just for the sake of the cow, the fact is that hanoo beef here in korea sells for three times the price of u.s. beef. competition between u.s. and korean beef is fierce, literally. farmers rioted two years ago when the south korean government lifted a ban on u.s. beef imports after the meat was declared free of mad cow disease. the korean barbeque using korean beef is a source of national pride. but this restaurant in seoul is going against the grain. one of the only ones selling just u.s. prime aged steak, and the korean owner says that the business is booming. >> right now, we are doing more than we have, and if we are using the korean, it is too much marbling, and it is perfect for the korean barbeque, and great for the thick steak. >> reporter: and many of the customers agree with the u.s. choice. >> it is sweet. >> easy to chew. >> i like korean barbeque, but i can't give up the steak. >> very nice. >> reporter: okay. i have tried korean and now i am going the try the u.s. prime, and this has taken 30 minutes in order to cook, so i am looking forward to this. that is good. but you know what, if someone said to me, if you prefer korean or american beef, there is no way i would step foot in that mine-field. paula hancocks, cnn, enjoying my job an awful lot in seoul, south korea. you are in "the situation room." happening now, social security taxes thousands of government job, and all in the crosshairs of the bipartisan groups vote to slash trillions from u.s. deficit. stand by. and chilling new details of the cargo bomb plot. we are learning right now that one device was timed to blow up a plane right over the united states. appalling conditions of the crippled cruise ship towed to shore. we have reached passengers who tell us more than anything else, it is is the stench. we have exclusive new images of the rescue effort at this hour. we want to welcome the viewers in the united states and around the world, breaking news and political headlines and jeanne moos straight ahead. i'm wolf blitzer, and you are in i'm wolf blitzer, and you are in "the situation room." -- captions by vitac -- www.vitac.com drastic fiscal measures for drastic times in a move that caught everyone off guard. the chairman of the obama deficit commission released proposals to cut the spiraling u.s. debt. among the recommendations, domestic and defense cuts, and social security changes including gradually raising the retirement age to 69 and reducing benefits to wealthy retirees and major overhaul of the tax code all designed to cut $4 trillion from the u.s. deficit by the year 2022, and these proposals and more will be put to a vote by the 18-member panel next month. 14 votes are needed to send the recommendations on to congress which is also going to need to approve them. the white house says that it will let the commission finish the work before commenting, but the house speaker, nancy pelosi is not waiting. she has just released a statement calling the proposals and i am quoting her simply unacceptable. let's bring in our senior correspondent dana bash. a lot of reaction immediately. why is the speaker, the outgoing speaker say it is unacceptable? >> well, the democrats are saying that and draconian and republicans who are interestingly a lot more circumspect and cautious, because they campaigned on the idea for the most part of reducing the deficit. but you know, the mixed reviews also came from inside of this commission. thatificasignificant, because te proposal is a guaranteed house and senate vote if 14 of 18 members approve it. but the commission co-chairs who put the proposal out today said they knew it would be controversial and they wanted something down on paper in the words serious and significant and says it is more about starting a national debate about how the reduce the deficit more than anything else. >> this is the first time in my memory of washington that either active or whatever this situation is now that it is all there. we have harpooned every whale in the ocean, and some of the minnows and no one has ever done that before. no one in this body or any body or any committee has ever laid it all out. >> and let me give you some more examples of some of the cuts in the proposal and they do range from the big to small. the commission calls for lowering rates on most tax brackets, but it would eliminate $1 trillion in tax breaks and subsidies which could include part or most of the home mortgage deduction which one source called radioactive. cut one-third of the overseas military base, and cutting the federal workforce by 10% by 2015 and forcing the smithsonian which is free to people going in to force them to charge people. that is going to give you a sense, and much, much more of what they are talking about to get to where they want to get which is $4 trillion the take away from the deficit. >> well, dana, some of them are saying that the proposals on social security are particularly explosive and tell the viewers why. >> yes, that is right. you have a new proposal out there to effectively means test which means that the wealthiest americans would not get as much in terms of benefits, but there is raising the retirement age and changing the cost of living adjustment, and increase in amount of income subject to social security taxes and democrats are blasting this, wolf. they say that increases the gap between the rich and the poor and does it on the backs of seniors. the aflcio was probably the most blunt and the message they sent was that this commission is telling working families, drop dead. >> wow. all right. dana, let's dig deeper right now in the new proposals to cut the deficit and deal with the national debt. we are joined by democratic congresswoman jan murkowski and you hate these proposals and you are a member of the commission, and why? >> well, i am a member of the commission and we were told from the beginning that nothing would be done to social security that would affect the beneficiaries and the proposal does that. it changes the adjustment of living which would affect seniors right now, and also the calculations that would change future beneficiaries as well. that is not going the happen. and in medicare, we see that it is increased cost sharing for seniors who are already spending 30% of their income on health care. so you are going to see absolutely a firestorm of opposition from older and near-older americans against this proposal. >> why did they release these recommendations publicly today, because it caught all of us by surprise, congresswoman? >> well, you are not the only one. we went into the meeting today thinking that this is the co-chair's proposal, and that is what we got. and until the very end, about an hour and a half into the meeting we thought that it was going to be just a closed meeting and that we would reconvene next week to talk about those proposals and then all of the sudden, it was suggested to release it publicly, and then a 1:00 press conference was called, and that is that. i objected, but here we are. we were surprised as well. >> let me bring in david gergen and gloria borger in as well. you know allen simpson from wyoming ande erskin boles as well, and you know that you have to lower taxes and increase spending, you have to have courage in this. >> well, it is going to take leadership to help us through this. you can disagree with aspects of these proposals, but no way to get there without a package like this, and it was an act of political courage for erskin boles and chairman simpson to release these today. >> i want to bring in the congresswoman. >> all of us believe we are on an us sustainable path fiscally, but there are certain aspects that are not acceptable. whennerskin boles and allen simpson announced that 75% are coming from cuts and 30% from revenue, well some of us think that is not a good balance and in terms of social security, they claim that 57% comes from cuts, but the social security subcommittee of the ways and means committee says it is actually closer to 76% of the changes from social security come from cuts. >> but congresswoman, with all due respect, don't you to start somewhere? the american people had an election and they said they want the deficit taken care of and fix and this is not a proposal to privatize social security in any way, and it is a gradual raising of the retirement age, so why not say, instead of being reflectively negative, why not say, okay, let's talk about this if we also talk about x, y and z. >> well, first of all talk about $700 billion if we do extend the bush tax cuts for the wealthiest, and the same people who seem amendable to the ut cans in social security want to see us extend the tax cuts for the wealthiest americans. we are concerned that for older americans who have an average income of $18,000 a year, and by the way -- >> but there is a safety net in this for the poorest on social security in this chairman's mark. >> again, the committee staff of the social security subcommittee says that in fact, it increase poverty and not decrease poverty, because the qualifications for getting that benefit, that increased benefit -- look, of course, we need to discuss this and of course we need to make cuts there. are cuts that we agree on and i think that we may come up with an agreement maybe not a totally comprehensive one by december 1st, but i agree with that, and we should go with that. >> congresswoman, can i just ask you this that gloria points out a safety net and tax increases on the affluent in the package, and the real question is going to be, are you willing to say that if the republicans will agree to raise taxes which they have been resisting, are you serious to do an sbilt elemeent reform, and if both sides agree, why is the rest of the country to conclude that you all cannot govern? >> well, we can fix social security in a simple way -- >> we can? >> yes, we can. the proposal was not to use the social security as a deficit reduction. >> but it is not. the money is going back into social skut. >> i just said that. it is not. that is a good thing. it is for the long term solvency of social security, but to do it 76% from benefit cuts, no. that is not acceptable. and we need to take a different look at it. >> congresswoman, you know the 18 commissioners and you are one of them, and you need 14 in order to send these recommendations to the house and the senate, as legislation. do you think that 14 members, a super majority will agree on a package to send to congress? >> the question is how comprehensive that package will be. there are a number of things that we can agree on, and for example a large consensus around the defense cuts. there is a consensus around some of the tax expenditures which are just the same thing, and those are tax breaks that are the same things as spending. >> what tax expenditures are you willing to agree on? >> right. >> i think that we can agree on taking a look at how much value of the home that gets exempted from any kind of a taxes we could look at. >> and the mortgage interest and deductions. >> but not to eliminate the mortgage interest and deductions, because that is a nonstarter for the committee. >> well, a lot of the republicans and the democrats say no new taxes and they will resist anything that feels like taxes are going up. >> well, i will tell you what, if they talk to the republicans about that, that includes by the way, their resistance to the top 2% getting taxed right now and they want to extend the bush tax cuts. >> but you know, republicans have not come out and said we don't like x, y, and z, and they have held the fire, so i guess that my question is, why not hold your fire until you meet as a committee and perhaps can try a commission and try and present something to the united states congress? >> well, i think that certainly, we will come up with a proposal and i believe that we can come up with a proposal that reaches the $250 billion mark by 2015, but it is important to lay some ground rules that social security and medicare certainly as proposed by the two co-chairmen is just not going to hold. it is a non-starter for many of us. >> jan schakowsky is the congresswoman from illinois, and thank you very much for coming in. we will continue this conversation. >> i look forward to it. >> and thank you to gloria and david as well. and having babies or not having babies is on jack cafferty's mind right now. he is right here with the cafferty file. >> that is not entirely accurate. my babies are all grown, and i have no babies as far as i'm concerned on my mind at the present time, however, the number of american women without children is at an all-time high and the recent report by the pugh research center shows that 1 in 5 women between the ages of 40 and 44 were childless in 2008. that is an 80% increase from the 1970s. it is a phenomenon that is seen all across all racial and ethnic groups and most education levels. white women are the most likely not to have children, but childless rates are growing more quickly for blacks, hispanics and asians over the last decade. researchers say that part of the reason behind this is that people are waiting longer to get marry and have kids. experts tell aol that they are enjoying their lives more doing things like traveling and shopping and eating out which are much easier to do without a baby in the picture. oh, yeah. they say that many women are delaying getting pregnant, because they can't find someone they want to have a child with. they are either very picky or very educated. also in the last 30 years contraception is better and there are improved job opportunities for women. research shows less pressure from society now to be a mom, and the decision to have a child is seen more as an individual choice, and don't forget about money, es p, wi s, -- especiall tough economic times like this, people who are not employed feel like they are not in the position to have children and pay the cost to raise them. so here is the question, why do you believe that the number of childless women is at an all-time high. >> well, it is an interesting question, jas question, jack. well, the terror plot may be more cynical than we thought. one of the devices was timed to blow up over the east coast. we have also have a closely watched alaskan senate race where the ballot count is continuing right now. we are getting brand new numbers. we will take you live to juneau, alaska. and more images of the cargo -- cruise ship i should say, that is sick out in the pacific. and the conditions that are literally making people sick. may be possible. in pursuit of this goal, lexus developed the world's most advanced driving simulator, where a real driver in a real car can react to real situations without real consequences. the breakthroughs we innovate here may someday make all cars safer. this is the pursuit of tomorrow. this is the pursuit of perfection. plus the choice of every etf, 5-star service, and unmatched trading tools. there's price. there's value. don't confuse the two. e-trade. investing unleashed. we are getting an update on the closely-watched alaska senate race that is undecided. it pits republican incumbent write-in candidate lisa murkowski against joe miller. we have a report over in juneau, and new numbers are coming in, shannon and update our viewers. >> that is right, wolf. lots of activity behind me as the write-in ballot vote count continues, but we got the first release of numbers. these are unofficial and i should stress that, this is not adding to the candidate's tally, but these are put in box a, b, c. these are significant of the total number votes they counted 7,638, and of those ballots deemed clearly for senator lisa murkowski, they have counted 6, 804. in terms of the ballots that were counted or sorted for senator murkowski, but are being challenged likely by the miller campaign, they have 678. in terms of ballots that were not counted for senator murkowski, but being challenged by her campaign, 89. and only one for joe miller. this is why this is significant. even though these are unofficial results, wolf, this basically says that the trend says that she is getting about 98% of the ballot so far. and again, unofficial, but if the trend continues this way, this could be very, very encouraging for the senator. >> all right. well, we will watch it closely together with you, shannon, who is on the scene for us in alaska. it is the last senate race that is still undecided. the federal government wants you to know that cigarettes can kill you. they don't want to leave any doubt about it. we will tell you what they are now doing to make sure you get the message. and the pentagon weighs in on the mysterious streaks in the sky over southern california. new information coming in. stay with us here in the "situation room." [ j. weissman ] it was 1975. my professor at berkeley asked me if i wanted to change the world. i said "sure." "well, let's grow some algae." and that's what started it. exxonmobil and synthetic genomics have built a new facility to identify the most productive strains of algae. algae are amazing little critters. they secrete oil, which we could turn into biofuels. they also absorb co2. we're hoping to supplement the fuels that we use in our vehicles, and to do this at a large enough scale to someday help meet the world's energy demands. police lock down schools and government facilities in broward county, which is where fort lauderdale is. kate bolduan has more. >> well, that lockdown was in effect after a caller from a local radio station said that her husband intended to go to a school and fire a gun. the radio station also received a e-mail warning of a possible threat at government buildings. the lockdown has been lifted and the authorities say that the threat has been diminished. and leaders say that george w. bush is not telling the truth in his just-released memoir. shroeder takes account of the 2002 conversation about the possible use of force in iraq. bush says that shroeder ordered quick and decisive action, but shroeder says that he told bush that there had to be a clear link between iraq and the september 11th, 2001, attacks. and take a look at these three streaks which lit up the evening sky over southern california this week. we have been talking about this a lot. the sight caused a stir as some witnesses thought that they were looking at a missile, a rocket or something even crazier like a ufo and who knows, but the pentagon now says that the streaks were merely part of the condensation trail from an airplane. conspiracy theorists must be bummed, wolf. >> well, the conspiracy theorists will be widely going on regardless. >> it is a cover-up. >> that what they will suggest, but we will take the pentagon at its word for now at least. terror plot twist. we are learning that a bomb was designed to blow up over the united states. stand by for details. and exclusive images of the crippled cruise ship where passengers are telling us that the stench is so bad that it is makes passengers sick. and the government weighs a controversial new method to get out a blunt message smoking cigarettes kill. we will show you the startling images that could soon appear on all cigarette packages in the united states. chevrolet sprang bolt by bolt, car by car, out of the very best america had to offer. ingenuity. integrity. optimism. and a belief that the finest things are the most thoughtfully made -- not the most expensive. today, the american character is no less strong. and chevrolet continues as an expression of the best of it. bringing more technology to more people than ever in our history. inventing new ways to get around our planet while preserving it at the same time. exploring new horizons of design and power. and making our vehicles amongst the safest on earth. this isn't just any car company. this is chevrolet. and the strength of our nation can be found in every car and truck we make. it's why, today, tomorrow, and on into a bright future, we can proudly say... ...chevy runs deep. ♪ ♪ ♪ came in last night at half past 10:00 ♪ ♪ that baby of mine wouldn't let me in ♪ ♪ so move it on over ♪ move it on over ♪ move it on over ♪ move it on over ♪ move over, little dog, 'cause the big dog's movin' in ♪ ♪ [ male announcer ] a dog & a chevy, what else do you need? ♪ a chilling new twist in that thwarted cargo bomb plot from the package from yemen to the united states. authorities are saying that the device was actually timed to detonate over the eastern united states, and send deadly debris over a populated area of the eastern coast of the united states. our national correspondent susan candiotti has been working the story for us. what else do we know, susan? >> well, wolf, two unsettling pieces of information are revealed today. first a u.s. counterterrorism official tells cnn that the printer bomb intercepted in the uk stuffed with a powerful explosive petn would have gone off at 6:00 p.m. if it had not been detected. and scotland yard says it would have blown up over the eastern seaboard of the u.s. and the jet that was to carry the bomb took off from london and took off over the atlantic and turning south over upstate new york and continuing up across pennsylvania farm country and on into philadelphia. had the bomb not been found, there could have been casualties in the air and on the ground. had it not been for that crucial intelligence tip passed on from the saudis, officials say that the explosives would not have been found. homeland security chief janet napolitano says that security is constantly tested by al qaeda and others. >> terrorist groups are intent of acting in invasion environment, and on attacking americans and attacking our country, so that has meant that we have increased the screening requirements on cargo. >> reporter: now the fbi and homeland security today released a bulletin confirming that claims of responsibility by al qaeda in the saudi arabian peninsula are credible. investigators are ruling out a claim by the same group that it blew up a cargo plane that went down in dubai last september. they believe that the plotters did send a dummy in september. both printer bombs got past security, and the suspected terror is consider that a success along with making the west spend more money on new security measures. wolf. >> very, very disturbing stuff. all right. susan, thank you. let's dig deeper with cnn terrorism expert paul cruikshank who is joining us from new york. paul, based on what you are hearing, what is the goal of having this cargo plane explode over the united states? was it the loss of life? something else? what do they want? >> well, i think that they were trying to kill as many people as possible hoping it would explode over a city like new york or boston or on the way to philadelphia to kill as many people on the ground and talk about dozen or maybe hundreds of people on the ground. in lockerbie, we saw up to 10 people being killed on the ground which is in a rural area of scotland, so the trajectory of the plot is concerning, and certainly the option of the plane exploding over land than the ocean. >> this bombmaker is very much at large in yemen some place, and presumably he and his associates, they can go ahead and build some more of these bombs. >> well, al qaeda in the arabian peninsula said that precisely, more plots are under way and they will share this idea with other al qaeda affiliates throughout the world. you have a bombmaker in yemen still at large and skilled at making petn which is impossible to protect. the brits when they were trying to find this substance, it took hours inside of the printer cartridge. so there could be following attempts in the weeks ahead, wolf. >> do you accept this notion that it is strictly a coincidence that the u.p.s. cargo plane, a 747 that blew up in dubai that had some packages that we know that came from yemen was simply unrelated to terrorism as the authorities seem to be suggesting right now? >> yes, yesterday the department of homeland security said they thought that claim by al qaeda is false, but we know that did have a lot of lithium batteries, but it is possible that the lithium batteries in dubai caught fire and brought that plane fire, so it is maybe unrelated, wolf. >> we will watch that as well and a lot of people don't believe in those coincidences, but we will see what the final investigation shows. paul, thank you very much. thousands of passengers thought they were going on a luxury cruise and now they are stuck eating spam and pop tarts dropped from helicopters. we will update you on that cruise. and new warnings on cigarettes on packages in the united states. you will want to see this. i've been looking at the numbers, and i think our campus is spending too much money on printing. i'd like to put you in charge of cutting costs. calm down. i know that it is not your job. what i'm saying... excuse me? alright, fine. no, you don't have to do it. ok? [ male announcer ] notre dame knows it's better for xerox to control its printing costs. so they can focus on winning on and off the field. [ manager ] are you sure i can't talk -- ok, no, i get it. [ male announcer ] with xerox, you're ready for real business. [ male announcer ] with xerox, this site has a should i try priceline instead? >> no it's a sale. nothing beats a sale! wrong move! you. you can save up to half off that sale when you name your own price on priceline. but this one's a deal...trust me. it's only pretending to be a deal. here, bid $79. got it. wow! you win this time good twin! there's no disguising the real deal. aspercreme breaks the grip, with maximum-strength medicine and no embarrassing odor. break the grip of pain with aspercreme. passengers on board of the crippled cruise ship are describing conditions so appalling that the stench is making people sick. the rescue effort is under way right now. brian todd is standing by with more, but first over to paul ver canon who has been on the "uss ronald reagan" which is delivering supplies to the carnivale splendor, and you got exclusive images, i understand? >> yes, we did, wolf. we were out there when the ronald reagan steamed into the rescue, and basically what happened is that the reagan began circling the splendor about 1,500 yards away, and then used helicopters to shuttle in some of the vital supplies that were needed. the reagan by the way, was on maneuvers when suddenly the mission change and imagine what was that was like for the pilots and crew members who said you will help a cruise ship in distress. it is a different mission for some of the navy pilots who in the past had been supporting american troops in iraq and afghanistan, wolf. >> what we do is that obviously, there is goods and bad in the middle of warfare and doing your job, but this is on the upside, because we are helping out people in distress and opportunity to improve the lives of people who were in dire straits, so it is a great opportunity. >> reporter: now, those helicopter pilots and the cruise members said they could see the passengers aboard the carnivale cruise ship and said they were greeted with waves and support and many of the passengers were taking pictures and using video to go ahead to show what happened to their families. if you can believe this, wolf, when we were on the ship, it was a steady stream of supplies moved off of it and 60 pallets in all, and the navy estimates between 30,000 and 40,000 pounds. in watching this, we wondered aloud, who is paying for this? carnivale says that it will take care of the cost of the supplies and that means the water and the granola and the pop tarts and the bread and the cold cuts and the rest and most importantly, as i reiterate the water, because it is important to all of this. now, the navy is going to pick up the cost of the fuel and all that, and the navy says that assistance is at the core of the navy's mission, and it gives the crew good training. we had one spokeswoman say in the hall that this is military muscle at the best. you 4500 members aboard the ronald reagan all of them lending a hand in some shape or form, and as they would say, it is one fight, and one team. as i stand here on coronado across the way, you might just be able to see where they are going to bring the cruise ship in tomorrow. they are predicting sometime around midday and it is currently towed by two tugboats at a slow pace. that is going to occur over there, and that is where the folks who have been on the ship for days adrift will get to be reunited with the loved ones. carnivale is promising a full refund. they will be able to go on another cruise at some other time, and they will shuttle some people up to long beach who had parked their cars there, and then other people who were stranded and came in from other parts of the united states will stay overnight in hotelshotels flown across the country. they said that they had an opportunity to put the 3,300 passengers and the like in hotels in san diego. >> nice place in san diego, and people will love to disembark there. thank you, paul, for the good work. let's bring in brian todd, who is also working this story for us. what are you picking up, brian? >> well, this issue raises broader concerns about the safety of the cruise. even as passengers gave first-hand accounts of what is going on aboard the stranded vessel. >> reporter: a couple of days ago they were enjoying lavish buffets and now it is spam and pop tarts airlifted from the navy. some passengers don't have water and the carnivale ship splendor is not so splendid. >> well, a lot of people are throwing up, and they have a lot of bags hanging in the corridors, vomit bags and the toilets are getting full, and the plumbing is -- all of those things are not so great. >> reporter: contacted by cnn, officials at the carnivale cruise lines say that the plumbing on the disabled ship is fine, and that the doctor on board reports very few people are getting sick. but the massive vessel is without the main power and passengers don't have hot water or hot food. the splendor with nearly 4500 passengers and crew aboard was stranded after an engine room caught fire. it is being towed to san diego. we spoke to a person on the ship, and this person has not been on a cruise ship since the '90, but has written a book. >> you are seeing more incidents and people disappearing on the ships and accidents and health concerns. >> reporter: berman says that he believes that the cruises are safe, but the sheer volume of passengers which has exploded in recent years increases the odds for trouble. it is the fastest growing sector for vacationing. nearly 1 million people took cruises last year and the industry generated $45 billion to the u.s. economy in 2009. berman says that the sheer size of the ships is an issue, and so much going on in floating cities that the passengers never see. >> the ship may stop and you don't know what it is about, but as i worked on the cruise ship, i saw tons of stuff from crew members getting in fights to people thrown in the local brig, which is the prison to people being airlifted. >> reporter: analysts say that it is tightly regulated. >> there are a lot of people and organizations keeping an eye on them. there is the imo, which is under the united states nations, and the department of health which does surprise inspections and the same thing with the coast guard and the fbi and it goes on and on. >> reporter: we contacted the trade group for the cruise industry to respond to what mika berman said about some of the problems and a spokeswoman for the cruise lines international says that we flatly disagree with the premises of the assertions and cruising is safe, and problems like this are rare, and we take them seriously when they do happen as is the case here with carnival. she says that the sheer growth of numbers in passengers speaks for itself, and if people didn't feel safe, they just wouldn't book cruises. wolf? >> brian, the u.s. government still felt compelled to pass a new law this year on cruise ship safety. tell us about it. >> yes, president obama signed it in the end of july and it is about ships that embark and debark from u.s. ports. a lot of it is focussing on the security and how crews are trained to prevent crime on bord and better documentation with the investigation and requires the ships to have a trained forensic sexual assault analyst on board. and there are jurisdictions where the cruise ships must be registered and a lot of them are not registered in the u.s. >> a lot of them are registered in liberia and place loosic that. we will show you the controversial warning that could soon start appearing on u.s. cigarette packages. [ woman ] you know, as a mom, i worry about my son playing football. which is why i'm really excited. because toyota developed this software that can simulate head injuries and helps make people safer. then they shared this technology with researchers at wake forest to help reduce head injuries on the football field. so, you know, i can feel a bit better about my son playing football. [ male announcer ] how would you use toyota technology to make a better world? learn how to share your ideas at toyota.com/ideasforgood. learn how to share your ideas [meow] desperate for nighttime heartburn relief? for many, nexium helps relieve heartburn symptoms caused by acid reflux disease. and for the majority of patients with prescription coverage for nexium, it can cost $30 or less per month. headache, diarrhea, and abdominal pain are possible side effects of nexium. other serious stomach conditions may still exist. ask your doctor if nexium can help relieve your heartburn symptoms. if you can't afford your medication, astrazeneca may be able to help. the federal government is taking new steps that americans get the message that smoking is bad for you and others around you. bring back kate bolduan who is covering the story for us. the fda is proposing new warnings for cigarettes and dramatic warnings. tell us about it. >> the federal government call it the most significant change in more than a quarter century of packaging of cigarettes. today, requirements of bigger and bolder and more graphic warnings on all cigarette packs and cigarette advertisements sold in the u.s. here are some of the proposed images that we are talking about, and the images that the fda is unveiling. they are much more colorful warnings that cigarettes are addictive and harmful to your children and also warnings and images that smoking can lead to cancer and very plainly saying that smoking can kill you. the goal here is clear, grab your attention and make you think twice, to get people to stop smoking or never start, and i spoke with the fda commissioner a short time ago and asked her, why now? >> for many years we were seeing steady declines, but over the last five years or so, the numbers have stayed steady, and we are seeing more than 20% still smoking, and we need to bring those numbers down to save lives and to save cost to the health care system. there is a lot that needs to be done, but the graphic warning labels really can make a difference. >> and now moving forward the fda will select the nine most effective warnings they find by the summer of 2011 and then the new rule will take effect, and messages will start to show up on cigarette packs nationwide in 2012, and if you even need reminding about how bad smoking is for you, according to the federal stats tobacco is responsible for 443,000 deaths each year, and it remains the leading cause of premature and preventable death in the u.s. and 30% of all cancer deaths are due to tobacco use. wolf, you will not be able to misthe miss these new warnings, because dr. hamberg says they will take up 50% on the front and the back of the pack when they start to put them on there. >> and i hope they have the desired effects, but i see that young people especially smoking makes me crazy. >> she says that is the real target. and why is the number of childless women so high? jack cafferty is standing by with the e-mails. he has spent two years lying low, and now the former president george bush is back in the spotlight big time. jeanne moos will take a most unusual look. could switching to geico really save you fifteen percent or more on car insurance? does a former drill sergeant make a terrible therapist? patient: and that's why yellow makes me sad. i tnk. sarge: that's interesting. you know what makes me sad? you do! maybe we should chug on over to mambie pambie land sawhere maybe can find some yoself-confidence for you.? ya jackwagon! tissue? crybaby. geico. fifteen minutes could save you fifteen percent or more. tdd# 1-800-345-2550 if anything, it was a little too much. tdd# 1-800-345-2550 but the moment they had my money? nothing. tdd# 1-800-345-2550 no phone calls, no feedback, tdd# 1-800-345-2550 no "here's how your money's doing." tdd# 1-800-345-2550 i mean what about a little sign that you're still interested? tdd# 1-800-345-2550 come on, surprise me! tdd# 1-800-345-2550 [ male announcer ] a go-to person to help you get started. tdd# 1-800-345-2550 regular detailed analysis of your portfolio. tdd# 1-800-345-2550 for a whole lot of extras at no extra charge, tdd# 1-800-345-2550 talk to chuck. tdd# 1-800-345-2550 let's get back to jack for the cafferty file. jack. >> the question this hour is why is the number of childless women at an all-time high? chris writes from ohio, well, jack, a lot of things have changed since you were a kid during the hoover administration. that's just lovely. women actually have careers of their own now. they can't wait for immature 30-year-old men who play video games all day and think jack ass 3-d was awesome to help them raise kids. why raise a child and a husband at the same time? more power to them. "leave it to beaver" was long ago. in california, i know a number of women who have decided not to have children because they believe this country is no longer a good place to raise children. a collapsed economy, endless war, the disappearing middle class. doesn't take a rocket scientist to see their point. sharon writes, women are realizing the power within us and due to the insanity in society today, we're beginning to use it and teach it to our girls. when my mother grew up, they were told, find a good man, settle down. when i was growing up, we were told, go to school, then find a good man. now i am telling my daughter as she grows up, go to school, start a business, buy a home, and then let a good man find you. melissa writes, i'm 34. i don't see my husband and i ever having children unless it's an accident. we're both too selfish, love our freedom too much for kids. i like the ability to come and go as i please, do what i want when i want to do it, and you can't do that with kids. tom writes, because the educational levels of women are at an all-time high. dick writes, four years of carter, eight years of reagan. that will be more than enough to scare any women out of starting a next generation. and jeff writes, from bishop, georgia, bishop georgia's where you'll find jeff. they're probably all depressed that i'm married and unavailable to be the father of their rug rats. bishop, georgia. jeff. if you want to read more on this, go to my blog, cnn.com/caffertyfile. >> will do, jack, thank you. president bush, he's out on the talk show circuit right now, getting lots of laughs. jeanne moos is next. affect wheat output in the u.s., the shipping industry in norway, and the rubber industry in south america? t. werice, we understand the connections of a complex global economy. it's just one reason os beat their10-year lipp. t. rowe price.invest . request a prospectus or summary prospectus with investment objectives, risks, fees, expenses, and other information to read and consider carefully before investing. and other information to read and consider carefully when you're responsible for this much of the team, you need a car you can count on. here's cnn's jeanne moos. >> remember those miss me yet billboards? well, now you can't miss him. he's everywhere. driving around with shawn hannity. >> he didn't elect me because of shakespeare. >> smooching with oprah. getting playfully slapped. holding hands again and again. >> come on in. >> valiantly helping up oprah. suddenly, he's "president lovable." telling self-deprecating stories about life with his wife after the white house. >> i said, free at last. and she says, yeah, you're free all right, you're free to do the dishes. >> hey, these are the guys who are supposed to be making the jokes. >> i miss having a funny president, i'm sorry, but -- >> funny days are here again. >> is it just me or is president bush started drinking again. >> bush's brain and dick cheney knew full well that one wasn't my brain and the other wasn't running -- >> letterman did great moments in presidential memoirs. from u lessess s. grand to -- >> memoirs by harry s. truman. >> the japanese began the war from the air at pearl harbor. >> decision points by george w. bush. >> i'm drunk at the dinner table. >> but who needs drinking jokes when former president bush is telling his own jaw-dropping stories about being drunk at a dinner with his parents and saying this to a lovely 50-year-old woman -- >> and i'd had too much to drink. and i said to her, out loud, what is sex like after 50? >> inducing gasps and then laughs. >> i was governor of texas, i turned 50 and i got a note from the lady and it said, well, what's the answer? >> comedian in chief. some comedians got laughs without even making jokes. just by reading the president's words about cleaning up after his dog barney. >> there i was, the former president of the united states, with a plastic bag on my hand, picking up that which i had been dodging for the past eight years. >> well, only a couple of days

Related Keywords

Australia ,Dubai ,Dubayy ,United Arab Emirates ,Alaska ,United States ,China ,California ,San Diego ,Washington ,District Of Columbia ,Mexico ,Berkeley ,Wyoming ,South Korea ,Norway ,New York ,East Berlin ,New Jersey ,Japan ,Germany ,Texas ,Afghanistan ,Philadelphia ,Pennsylvania ,Illinois ,Liberia ,Georgia ,Michigan ,London ,City Of ,United Kingdom ,Seoul ,Soul T Ukpyolsi ,Iraq ,Salt Lake City ,Utah ,Arabian Peninsula ,Saudi Arabia General ,Saudi Arabia ,Ohio ,Yemen ,France ,Americans ,Australian ,America ,Chinese ,Alaskan ,Scotland ,Texan ,Saudi Arabian ,Saudis ,Britain ,French ,Japanese ,South Korean ,American ,Shawn Hannity ,David Cameron ,Nancy Pelosi ,Ronald Reagan ,Mika Berman ,George Bush ,Charlie Rangel ,Joe Miller ,Harry Truman ,Howard Kurtz ,Jan Murkowski ,Harry S Truman ,Paul Cruikshank ,Al Qaeda ,Dick Cheney ,Jan Schakowsky ,David Gergen ,Notre Dame ,Erskine Bowles ,Jeanne Moos ,Jeb Bush ,Susan Candiotti ,Gloria Borger ,Janet Napolitano ,Allen Simpson ,Alan Simpson ,Barack Obama ,Chris Kristie ,George W Bush ,Sarah Palin ,James Carville ,Nicolas Sarkozy ,Khalid Shaikh Mohammed ,Lisa Murkowski ,Brian Todd ,Hillary Clinton ,