Transcripts For CNNW The Situation Room With Wolf Blitzer 20110812

could affect all of us, including our own mail delivery. i'm wolf blitzer, you're in "the situation room." jtsdzer. it all begins in iowa. right now many of the republican presidential candidates are in that state, a state that holds the lead-off contest in 2012. they're working the crowds at the state fair before tomorrow's pivotal iowa straw poll. and they're taking direct aim at president obama's handling of the debt crisis and the u.s. economy. listen to some of the republican hopefuls, including sarah palin, who insists she still hasn't decided whether to run. >> i think the question should be asked, is the president responsible for the down grade? i would say yes. from the top, that leadership starts from the top. >> look what happened two weeks ago. when barack obama's back was against the wall. what did he do to try to scare americans to call their members of congress? he threatened social security recipients that their money wouldn't be there. he threatened medicare recipients that their money wouldn't be there. why do you think he shoved obama care down to thrust the american public? because he wants his hooks in everybody. >> if you have a pile of debt in order to get growth again and if you're spending all your money on spending the interest. it won't work. you don't bail on bad debt. >> let's bring in candy crowley, she's over there at the iowa state fair in des moines. give us a little flavor, candy, what are you seeing and hearing on this important day? >> well, you know, exactly what you would think at a state fair. i've got, you know, rides to the right of me. really bad for your heart food behind me and politics to the left of me. so, it has everything that you can imagine. you know, live stock, people competing for ribbons. it goes on here in iowa. i used to live in iowa and it is one of those things that everybody waits for. brings their children. it is packed here and will be for the next couple of weeks. so, you know, the politics are, i have to tell you, kind of a side show. a lot of people are interested in the live stock showings. they are interested in taking the kids to the rides, but, nonetheless, they get to come here and come, they have, these 2012 republican candidates and debbie wasserman schultz who at the dnc was also here getting some equal billing and the folks that are listening sit on hay bails and listen to what generally have been stock speeches. some of them took a couple questions. nothing extraordinary happened, but it is, it's what they do in august in preelection years. >> you know, candy, last night two of the candidates, both from minnesota, really went after each other. we're talking about tim pawlenty, michele bachmann and they have a lot riding in tomorrow's straw poll. i want to play this little clip from the republican debate last night. >> as to congresswoman bachmann's record, look, she's done wonderful things in her life. absolutely wonderful things but an undisputable fact that in congress her record of accomplishment and results is nonexistent. that's not going to be good enough for our candidate for president of the united states. that's not going to be good enough for the president of the united states to serve in that capacity. >> governor, when you were governor in minnesota, you implemented cap and trade in our state and you praised the unconstitutional individual mandate and you called for requiring all people in our state to purchase health insurance that government would mandate. third, you said the era of small government was over. that sounds a lot more like barack obama, if you ask me. >> all right, candy, that was just a little flavor. they went on and on. they really went after each other. some are suggesting this is pawlenty's sort of desperation right now. he has to stay in this race and he has to bring down michele bachmann, if you will. >> well, they might not be surprised to set their sights somewhat lower saying they have to do well here. they have to show movement here. pawlenty is really struggled. and, listen, the interesting thing about this is that he has some really good democratic operatives here on the ground in iowa. the folks you talked to say he's got the best organization on the ground, but, you know, the spark, he hasn't caught the lightning in the bottle that michele bachmann has. so, you know, he has been going after her on, you know, he doesn't pass the charisma test with her. she brings in the passion. he's taking her on on her resume saying, what have you done? and contrasting with his and, of course, she's come right back and said, let's take a look at your resume and heefrz what you've done. he operated as governor for two terms and a pretty democratic state. so, there were some democratic issues that he tended to agree with, although now he talks about what he was able to do as a republican in a blue state. so, listen, there's a lot at stake for a lot of people in this way. the ames straw poll doesn't elect people. they're not at all definitive about who's even going to win the iowa caucus. we're talking about a very small number of iowaens. it will dry up the people who doesn't do well. if you don't have any money, it is very hard to continue it. jon huntsman also not catching fire, but he is write himself a check. he's a rich guy. tim pawlenty is not and he's pretty low in his campaign funds. he spent a lot, about a million dollars sort of drumming up some interest in the straw poll and trying to bring his people in. so, if he comes at the end of the straw poll and doesn't do well, it will be very difficult for him to raise money. he says he is going to go on and we take him at his word, but it is going to be very tough. >> candy is on the scene for us and stay on the scene with her all weekend. thanks. our saturday edition will be standing by for all of the iowa straw poll results. we expect those results could come in as early as 6:00 p.m., 6:30 p.m. eastern tomorrow night. so, make sure you tune in to cnn for that. please, also, be sure to tune in sunday for cnn's state of the union from ames, iowa. candy will be there and special interviews with the republican presidential candidates including michele bachmann and herman cain sunday. 9:00 a.m. eastern and also at noon eastern only here on cnn. sarah palin says it's sexist to try to put her against michele bachmann because they're both women. but the two may have somewhat different views on their role as wives who serve in politics. the question, would they be submissive to their husbands if elected president? bachmann was asked about that during the republican presidential debate last night. >> in 2006, when you were running for congress, you described a moment in your life when your husband said you should study for a degree in tax law. you said you hated the idea and then you explained, "but the lord said, be submissive. wives are to be submissive to your husbands." as president, would you be submissive to your husband? >> thank you for that question, byron. marcus and i will be married for 33 years this september 10th. i'll in love with him and so proud of him and both he and i, what submission means to us, if that's what your question is. it means respect. i respect my husband. he's a wonderful, godly man and a great father and he respects me as his wife. that's how we operate our marriage. we respect each other. we love each other. >> all right, today sarah palin also in iowa was asked about michele bachmann's comments. listen to this. >> do you agree with the submission part? >> with her answer? that's her opinion. you know is to her submission to her husband means respecting her husband. you know, i respect my husband, too. >> if todd said, don't run, would you run? >> i can't imagine my husband telling me what to do politically. >> all right, stand by for more on the republican candidates and the president's strategy against them. i'll be speaking with democratic party chairwoman debbie wassermann-shultz. the congresswoman is in iowa right now. now, to a huge source of worry for so many voters. the stock market. the dow closed up 125 points an hour ago. the second straight day of gains. all three major indices were in positive territory at the closing bell. certainly a welcome break from the drumaamatic see sawing tren over the last week. who knows what next week will bring? poppy harlow is joining us now with the final tally of the week. poppy, any consensus of why the market went up again today? >> no. has there been all week, wolf? i mean, this has been, according to one trader i just got off the phone with, the craziest week he has ever seen. this is a quote from a new york stock exchange trader who has been trading for, get this, 43 years. a wild week, no doubt about it. let's look back at the numbers. since we saw the dow fall so significantly. a week ago thursday it was up down, up down. since then giving you just a sense of where we are overall in this big decline. we're still down over 600 points for the dow industrials and, by the way, wolf, we closed higher yesterday. we closed higher today. see those two green arrows at the end of your screen. that is the first time we had two positive closes for the stock market since july 6 and 7th. if you want to look at where we are relatively speaking, we're now at about the same levels on the dow that we were all the way back in april of 2010. it has been a wild ride and we are down overall when you look at what we've seen in the up and down. we're still pretty far down. i want you to take a listen to another trader we spoke to at the new york stock exchange about how he deals with this volatile, volatile market. take a listen. >> i walk into the crowd and i assess how the sellers are. if i sense you're nervous and i'm a buying, i'm going to bid you down because i'm going to test and see how nervous you are. so, when people say, geez, the market's under pressure where are all the buyers. the buyers are here, they're just taking advantage of kind of the fear and the anxiety in the market. >> fear and anxiety in the market. wolf, i will tell you, everyone on main street is feeling this. we got the worst consumer confidence number this morning that we have gotten since 1980. 1980 when carter was president. so, it's been a long time since americans have felt this unsure about what's happening to the economy and the stock market. i will tell you over the weekend another trader told me, we used to be immune from bad news on the weekend. now it seems like all we get is bad news on the weekend. i hope nothing bad happens this week. that's all, of this weekend, that's all i'm hoping. that's the mood on wall street. if they don't get another downgrade, any bad news, they'll take it heading into monday's session. >> last friday after the markets closed we got that downgrade from the s&p, which caused a lot of nervousness all weekend. let's hope it stays quiet this weekend. we can worry about the iowa straw poll. all right, poppy, thanks very much for that. the u.s. postal service says it's in desperate need of downsizing. the cost could cost thousands -- the cuts could cost thousands of jobs and change mail service as we know it. will congress let it happen? a new ruling in the heated legal battle over health care reform signed into law by president obama. lots of news happening today. right here in "the situation room." naturals from purina cat chow. delicious, real ingredients with no artificial flavors or preservatives. naturals from purina cat chow. share a better life. what if we designed an electric motorcycle? what if we turned trash into surfboards? whatever your what if is, the new sprint biz 360 has custom solutions to make it happen, including mobile payment processing, instant hot spots, and 4g devices like the motorola photon. so let's all keep asking the big what ifs. sprint business specialists can help you find the answers. sprint. america's favorite 4g network. trouble hearing on the phone? visit sprintrelay.com. ♪ [ recorded voice ] onstar. we're looking for city hall. i'm sending directions to your car. 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[ baby crying ] ben harper: ♪ what started as a whisper every day, millions of people choose to do the right thing. ♪ slowly turned into a scream ♪ there's an insurance company that does that, too. liberty mutual insurance. responsibility. what's your policy? on top of everything else, there's another crisis unfolding right now here in washington. what if, what if america's mail system simply went bust. u.s. postal service says it needs to make drastic changes to keep the agency afloat, including massive layoffs. our brian todd has been looking into the problem for us and how it could affect all of our mail service. brian, what's going on? >> wolf, the postal service is hemorrhaging money and pushing major cuts through its workforce. that will affect everyone from you and me to a gentleman who works his route every day. >> reporter: for three decades delven johnson has been hoofing it on his northwest washington beat. as a seasoned postal carrier, he survived the anthrax scare and other perils of the job. in 30 years, how many dog bites? >> just one. >> reporter: only one. >> after 28 years. >> reporter: if you went 28 years without one. just got one. >> just got one. it comes with the job, though. >> reporter: for delven and his colleagues, dog bites might be the least of their worries these days. the u.s. postal service says it will be insolvent next month and wants to lay off 120,000 people. it's trying to get congress to allow it to waive protections against layoffs for veteran workers and wants to provide its own benefit plans instead of federal plans. are you worried that given the post office's financial situation that maybe it won't work out the way you want it to for your career? >> well, that has been, you know, my wife and i have talked about it. but, you know, we just have to make things, you know, make things work. >> reporter: postal unions are also upset with the potential cutbacks. the national association of letter carriers calls this a pie in the sky proposal. the unions and the postal service itself say the service would be profitable, if it wasn't forced by congress to prefund retirement benefits for the next 75 years. for generations of postal workers who haven't even been born yet. but other reasons for the bleeding. with more of us e-mailing and doing online bill paying, mail deliveries to our doorsteps have stopped over the past few years. i spoke with pete of a watchdog group about the future. if they make these cuts, what will it mean for you and me as far as stamp prices and service? >> if this plan goes through, consumers are likely to find fewer formal post offices, but more opportunities to do postal business at existing retail stores. they're likely to find higher stamp prices but certainly not much higher ones, that would be the case if the layoffs didn't occur. also likely to find service curtailments, perhaps no saturday delivery. >> reporter: but pete says that's still better than a major taxpayer bailout if the postal service didn't make these cutbacks. how fat is the service? he says the u.s. postal service has more retail facilities than mcdonald's, star. bucks 7-eleven and u.p.s. combined. let's look at the cloproble closer. >> hi, wolf. look at the cornerstones of what's happening here. here is the map of the united states. the 3,700 post offices recommended to close, that's an awful lot out there. here's why. we mention the pricing a minute ago in brian's report there. yeah, our letters are cheaper than most places right now. below britain, germany, for example. if we got rid of saturday deliveries, that would save $3 billion a year. the workforce they're dealing with right now. a lot of people out there. more than 500,000 workers and 50%, 50% of those post offices we showed a minute ago are losing money. this is the big one. retirement health benefits. they have to pay in $5.5 billion per year to keep this thing solvent. way into the future, it already has $75 billion in it that is frozen that they cannot access in this difficult time. all of this put together, wolf, adds up into a very, very difficult profit loss schedule. look at this. this is where we are right now. already losing money. by 2020, if nothing else changes, they will have lost accumulative $238 billion. so, wolf, that's the reason they're talking about cutbacks right now and you have to say for the economy, a very tough time because some of the biggest losses have been in government and quasi government jobs. >> looks like the handwriting is on the wall. we'll see what they finally do. thanks, tom, thanks very much. new charge is just filed against those three siblings nabbed in a brutal gun showdown with police. the details coming up. american drone strikes in pakistan have killed hundreds of civilians, many of them children. you're going to want to hear how the united states is responding to these allegations. 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[ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an exceptionally engineered mercedes-benz for an exceptional price. but hurry, this offer ends august 31st. personal pricing now on brakes. tell us what you want to pay. we do our best to make that work. deal! my money. my choice. my meineke. a federal appeals court deals a major blow to a key provision of president obama sweeping health care reform law. our lisa sylvester is monitoring that. some of the other top stories in "the situation room" right now. a big setback, potentially. >> that's right, wolf. the u.s. court of appeals in atlanta has ruled the individual mandate section, which requires almost all americans to purchase health insurance by 2014 or face financial penalties unconstitutional. the court argues that doing so was an improper exercise of federal authority. the ruling could likely prompt an election year show down at the u.s. supreme court over this legislation. new charges filed against those three siblings nabbed after a dramatic high-speed chase with police. each was charged today with attempted murder and assault on a police officer in one colorado county. similar charges were filed yesterday in a separate county. the three are also accused of bank robbery in georgia and attempted murder in florida. a former pennsylvania juvenile judge has been sentenced to 28 years to prison for accepting millions of dollars in bribes to incarcerate young people in detention centers owned by friends. >> ma'am. >> my kid's not here because he's dead. he ruined my life. i would like him to go to hell and rot there forever! you know what he told everybody in court? they need to be held accountable for their actions! >> this case made national headlines when the former judge was confronted by an outrage mother of a child and he was sentenced and also required to pay restitution. >> you have more stories you're working on, you'll be back. we heard sarah palin slam president obama over the debt crisis. is she willing to lay any of the blame on the tea party movement? that one day on the red hills of georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. i have a dream today! [ male announcer ] chevrolet is honored to celebrate the unveiling of the washington, d.c., martin luther king jr. memorial. take your seat at the table on august 28th. handle more than 165 billion letters and packages a year. that's about 34 million pounds of mail every day. ever wonder what this costs you as a taxpayer? millions? tens of millions? hundreds of millions? not a single cent. the united states postal service doesn't run on your tax dollars. it's funded solely by stamps and postage. brought to you by the men and women of the american postal workers union. ♪ i'm wolf blitzer. stories we're working on for our next hour. texas governor rick perry gets ready to shake up the 2012 race with tomorrow's big announcement. why even president obama's campaign team is now taking some serious notice. also, as the economic crisis drags on, five things president obama can do to reassure americans that the buck really does stop with him. and why an electronic tattoo could be the next big advance in medicine. we're not making this up. you're in "the situation room." right now all eyes on iowa where the republican presidential contenders are gearing up for an early, but critical test in the race for the white house. meanwhile, a number of key democrats are also on hand to try and keep them from gaining all the new momentum. and joining us now from des moines, iowa, debbie wasserman schultz, the chair of the democratic national committee, congresswoman from south florida. congresswoman, thanks very much for coming in. >> you're welcome, thanks, wolf. >> let's talk first about this 11th circuit court of appeals decision saying that part of the president obama and democrats health care reform law is unconstitutional, the part with mandates. this is, obviously, go to the supreme court. but how much of a setback is this right now? >> well, first of all, we're very confident that we're on firm ground with the affordable care act, particularly because congress has the ability to regulate commerce. clearly, there's nothing more that affects interstate commerce more than purchasing health insurance and we know health insurance companies certainly do business across state lines. so, the ground is firm there and, keep in mind, that just a few weeks ago the sixth circuit court of appeals out of cincinnati had a different ruling, 2-1, to uphold the law. so, this is just, you know, another step in the path to what we know will be an ultimate supreme court decision. when we get there, we feel confident we're on very firm ground and that they will uphold it. >> you won't be surprised to know that your counterpart at the republican national committee put out a statement warmly welcoming this decision by the 11th circuit court of appeals. let's get to some politics right now. that's why you're there in iowa. rick perry is jumping into this race, as you well know. he does have a pretty impressive proven track record in creating lots of jobs in texas. how are you going to deal with that? >> i mean, i know that that's what the current line in the media is and he certainly is trying to leave people with that perception. but if you peal back the layers of that claim that somehow rick perry has had success with job creation. that doesn't hunt as they say in the southern vunacular. at the end of the day, this is someone who gets huge benefit from the decisions made by opec. that there's a lot of money from the oil industry that impacts the economy and jobs in texas. so, you know, for rick perry to claim that those jobs have something to do with his policy, really very, you know, that's more hat than cattle. and at the end of the day, we've got to make sure that we have a candidate for president like barack obama who's going to focus on job creation with a proven track record, 17 straight months of private sector job growth. 2.4 million private sector jobs created. here in iowa, the first six months of this year, 2,200 private sector jobs created each month and with the recovery act, the reason that you've got about 6% unemployment here in iowa, much lower than the national average is that you've got 34,000 jobs that were created here alone from the recovery act. so, iowa has benefitted, america has benefitted and rick perry or any other presidential candidate can't hold a candle to him. >> listen to sarah palin in iowa where you are right now told reporters today. listen to this. >> if it weren't for the tea party, the discussion would never have gone where it went, so, i appreciate the tea party's passion for getting our federal government to realize that it needs to live within our means. the last group or entity to be gl blamed for the down grade is the tea party. the president is responsible for the downgrade and i would say yes because from the top that leadership starts from the top. >> she says the president should be blamed for the downgrade of america's credit worthiness from aaa to aa plus. i want you to respond to sarah palin. >> well, i know this is going to sound funny coming from the chair of the democratic national committee, but like standard & poor's analysis, i agree with them that the gridlock that was created by the tea party resulted in a tea party downgrade. and that the blame in s&p's analysis rests squarely with the republican's party refusal, stubborn refusal to come to the table and compromise. we need to come together as two sides in this country, work together to reduce the deficit, get a handle long term on getting our economy turned around even more so than president obama has been able to accomplish. but at the end of the day, you know, we can't do it alone. the american people want us to work together. like i said, i know that sounds funny coming from the democratic national committee chairman. but i would love to hear ron say something other than what he has been saying, which is nothing but divisive rhetoric. i love him and his colleagues and the republican party to commit to coming together and working with democrats under president obama's leadership to get some balance into this situation. >> are you surprised, upset, worried about all the criticism the president is getting, not from the republicans on the right but from the left. from some of the liberal base from the democratic party. you saw that article in "new york times" by drew weston entitled, "what happened to obama." i'll read a line, "when faced with the greatest economic crisis, the greatest levels of economic inequality and the greatest levels of corporate influence on politics since the depression, barack obama stared into the eyes of history and chose to avert his gaze. instead of indicting the people whose recklessness wrecked the economy, he put them in charge of it." this comes from a professor who himself acknowledges he is a liberal and at one point a great supporter of the president. but you're hearing more of this kind of criticism from the left. how worried are you that that liberal base won't be energized? >> well, you know, that analysis is simply not the case. i'm proud of president obama's record. proud of the courageous leadership that he has demonstrated in pushing forward historic health care reform and taking on wall street and making sure that we made sure that banks are, again, never too big to fail and making sure that we establish some balance and fight hard for it and continue to work hard to get this economy turned around. i think whether you're a liberal, whether you're a conservative or whether you're an independent, there's something to be proud of and anything you look at in president obama's leadership and i traveled the country, wolf, heard from liberals across this country that are proud that president obama has brought us to this point. dug us out of the ditch that the republicans put us in and now we need to work together to make even more prosperity happen for the american people. >> debbie wasserman schultz, go ahead and enjoy some of othese fried twinkies behind you. thank you. >> thank you. i'm all about the fried milky ways. >> go ahead, not too many. a dangerous terror network is getting richer by the day, while it makes the deadly famine in somalia worse. later, a tattoo that could help keep you alive. [ male announcer ] imagine all of your missed opportunities in one place. the winning horse you could have picked. ♪ that "old flame" you should have called. ♪ that leap of faith you never took. but there's one opportunity that's too good to miss. the lexus golden opportunity sales event, with exceptional values on the lexus is. but only until september 6th. see your lexus dealer. all week bringing you extensive coverening of the humanitarian crisis in somalia where hundreds of thousands of people, many of them children, dying and the food supply is running out. now the wealthy terror network behind much of this devastating famine is prompting security concerns right here in the u.s. cnn pentagon correspondent barbara star has details. >> reporter: the once red tagged somali terror group is now an economic power house, raising millions of dollars a year from smuggling, illegal taxation and extortion of the very somalis starving in the famine. >> we are dealing with a very sophisticated financial machine that's made to generate wealth, both for individual leaders, as well as the militant movement itself. >> reporter: a united nations report estimates that al shababb generates between $70 million and $100 million a year controlling ports, roads and towns. it's a financial web that spreads from the poorest regions of southern somalia to the richest neighborhoods of the persian gulf and back again. one example, the u.n. estimates al shababb makes $15 million exporting charcoal to the gulf and exporting sugar to southern somalia to smuggle throughout the region at markd up prices. >> a major moneymaker that is bringing in millions of dollars each year to finance the campaign of violence and terror. >> reporter: it's all going to pay hundreds of new fighters and possibly plan attacks in cooperation with al qaeda, intelligence officials say. and u.s. bought weapons are showing up on the ground. >> u.s. supplied weapons or weapons purchased through u.s. grants to african union peacekeepers or to the transitional federal government have been used to purchase arms, which ultimately leak to shababb. >> reporter: weapons seized after a raid against al shababb in february included components brought in by the u.s. firm under a state department peacekeepers and then illegally sold to fighters. the company was not involved. but for those who think al shababb will stay buttoned up in somalia, the chairman of the house homeland security committee says, think again. >> that kind of thinking is a glaring example of the 9/11 commission calls a failure of imagination. >> now the salmon catastrophe, wolf, has at least put a temporary crimp in al shababb so many fled somalia and the capital, they have less people they can extort from, but nobody is counting this very dangerous group down and out. wolf? >> they shouldn't. all right, barbara, thank you. another potential for rising tenshzs between the united states and pakistan. the united states strongly disputing a new report that u.s. drones have killed more than 160 children in pakistan. cnn's reza syah is there. >> budding heads for years over these drone strikes and this latest report will fuel the debate whether they're effective in the fight against extremism. the report released by u.s. and pakistani journalists. according to the report, ever since 2004, washington has launched about 290 drone strikes on pakistani soil that have killed more than 2,000 people. the report says among the victims 380 civilians, including more than 160 children. it's no surprise washington is not happy with this report. this report doesn't bode well for what washington is trying to do here in pakistan and that's to repair its damaged image. washington wants to win some hearts and minds here in pakistan. no surprise that a u.s. official is telling cnn that this report is false and inaccurate. washington is a different set of numbers when it comes to drone strikes. they say since 2001, they've killed more than 2,000 people with these attacks, but only 50, 50 of the victims have been civilians. the glaring problem, of course, is neither cnn nor any other media outlet can verify these facts because access to the tribal region where these drone strikes take place is cut off. so, what you have is two sides, the opponents of drone strikes and the critics who have very different versions, even so, washington is pushing forth with the strategy of drone strikes. they've increased under the obama administration. washington maintains that there's still an effective strategy against militants. wolf? >> reza sayah reporting from islamabad. republican presidential contenders are firmly vowing they won't raise taxes. could they be backing themselves into a corner? as the that's coming up in our strategy session. a widening riff between verizon and thousands of its striking employees. ahead, we'll tell you why the fbi is now being called in. def. to those always searching for what's pure and what's real from we who believe we know just how you feel. haagen-dazs. the republican debate in iowa was filled with disagreements, but one issue that all the candidates agreed on. >> say you had a deal, a real spending cuts deal. 10-1, as byron said. spending cuts to tax increases. speaker, you are already shaking your head. but who on this stage would walk away from that deal? would you raise your hand if you feel so strongly about not raising taxes you'd walk away on the 10-1 deal? >> all right, let's talk about that and more with democratic strategist and cnn political contributor donna brazille and republican strategist tony blackly. used to serve as the press secretary to one of the guys that was on the podium yesterday, former house speaker, newt gingrich. i was a little surprised. 10-1. let's say hypothetically there's $5 trillion in spending cuts over the next ten years. and $500 billion in increased tax revenues. you eliminate some of the hedge fund guys and ge didn't pay federal income tax. you remove some of that. the republicans wouldn't take that deal? >> you have to understand, if it was a ratio of 1,000-1 candidate taxes for increases. in both parties, you don't violate the core convictions of your primary voters any more than in the last cycle the democrats would be for keeping gitmo open. whatever becomes the policy in the wisdom of the elected candidate, you can't have that policy discussion. this is not a negotiation session. this is communicating fundamental principles to your voters. >> the democrats are having a field day with this one. these republicans are so committed to the no new taxes pledged to grover norquist and that organization they're willing to give up 10-1 in spending cuts in tax increases. >> wolf, i think tony's absolutely right. what has happened in the republican primary is that they're all playing to their base. they are trying to convince primary voters that are very conservative that they can outdo each other on these very consere principals. 80% support a balanced approach that includes revenues and stepping cuts. what republicans are doing is bab pg themselves into a corper. if you look at the s&p results, they basically point the finger at the political gridlock here and the failure to look at the entire picture. >> the democrats ever since i have been a child that tax increases on the rich sell to the public. reagan and newt and lots of republicans get elected regularly and holding on. the public may be in favor of taxing the rich. they always are. they have a sense that one party tends to raise taxes and one tens not to they generally suspect and they vote for the party. it's not going to lose in any particular election cycle. whatever the final deal is which will probably come after the 2012 election, you are going to have a practical decision made and you don't negotiate it. >> the one thing that the public understands is we had a balanced budget on the democratic president who made tough calls. we had a balanced approach. when we had the government, the public likes a balanced approach. with middle class americans, 100% of the cuts. the age of people who can afford it. >> when newt was speaker and bill clinton was president and they did not raise taxes, clinton raised taxes in 93 and herbert walker bush in 90, but when we balanced a budget cut. >> the clinton people argue that the increased tacks that clinton passed in 93 paved the way for that budget to listen to all of them. they will tell you that story. you are smiling. >> working for newt at the time, a different part of the debate because it focused on a real fight between ron paul and rick santorum. >> ron is not iceland. iran is a country that has been at war with us since 1979. >> the senator is wrong on his history. we have been at war in iran for a lot longer than 79. >> anyone that suggests that iran is not a threat to this country or is not a threat to the stability in the mideast is not seeing the world clearly. >> iran does not have an air force that can come here. they can't make enough gas loan for themselves. here we are building this case. >> please, please. they are building up this case just like we did in iraq. building up the war. there was no al qaeda in iraq and they had nuclear weapons and we had to go in. i'm sure he supported that woor as wellment time we quit this. >> say what you will about ron paul. he not afraid to go against the republican consensus on the wars in iraq, afghanistan, relations with iran if you will. he is willing to take a clear stance. >> he does. he has his theory of how the world works. he never lets the facts in a particular situation get in the way of his theory. you can believe that we shouldn't get into wars, but the whole world is worried about iran. the idea that iran with nuclear weapons is no concern over the united states trick strikes me as beyond a reasonable view. >> by the way, it was a good debate to watch, but the only way either one of these guys can get to the oval office is on a guided tour. ron paul as really moved the republican party much more on the libertarian fashion and rick santorum lost. >> he can do well in the straw poll tomorrow. he has a great organization in iowa. we will see how he does. that's another story. we will see how he does. thanks very much. sarah palin is in iowa crashing the party. don lemon is at the state fair and got to speak with her. we will find out what she is up to skpa and what she is saying. in london police are given powers to crack down on rioters. is it enough to prevent more violence? 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[ male announcer ] if you can't afford your medication, astrazeneca may be able to help. >>ar in britain more than 1900 people have been arrested in this week's riots. police are trying to figure out how it got so out of happened so quickly. dan rivers is in london. >> after the disorder of the past few days, now the postmortem. how did it come to this? the prime minister was clear that the police were caught off guard. >> they were far too few police deployed on the streets and the tactics were not working. police chiefs were not frank with me about how it happened. they treated the situation as an issue rather than one of crime >> as we saw, they call for more robust action. this in east london the offices pursued as tolerance of gangs. police will be giving new powers to arrest masked man like this for what they are wearing on their faces. >> they will give the police the discretion to require the removal of the face coverings whether there is suspicion they are related to criminal activity. >> police used the trucks to clear them from the streets. the governments also considering adding curfews, rubber bullets and water cannon to the police tactics. there was also this rebuke for senior officer wos dismissed the idea of using the army to relieve pressure on the police. >> it is the government's responsibility to make sure that every contingency is looked at including whether there tasks that may free up more police on the frontline. >> the police officers are resistant to that idea and to cut the 137,000 officers by 16,000 by 2015. >> what we are focusing on is making sure we are as efficient as we can be and minimizing the impact on the frontline. what we are seeing in a moment is a poll showing we are achieving that. the frontline success protected, but other jobs we doville to stop >> any reduction is a sensitive issue. in the past both main parties competed to a peer tough on crime. in light of scenes like this, these numbers are now politically explosive. an issue that will dominate the debate about austerity and where the cut should fall for months to come. cnn, london. >> you are in "the situation room" happening now. the republican race for the white house is heating up. the governor rick perry is poised to announce his candidacy. we will look at what he brings to this contest. also sarah palin is stealing part of the candidate spotlight in iowa or is she? she offers advice to the white house hopefuls and more. what she is saying. a key part of health care reform ruled unconstitutional by an appeals court. what will it mean for the signature issue? we want to welcome the people around the world. political headlines straight ahead. you are in "the situation room" she certainly is a formidable force in the republican race for the white house and she is not a candidate yet. sarah palin is stealing the spotlight wherever she goes these days and on this day she happens to be in iowa. along with the declared republican candidate, don lemon is also there >> i had the opportunity to ask her a lot of questions. will she talk about the performance last night? she talked about why she believes the credit rating was downgraded and not declareing it and whether or not she is stealing the spotlight. >> do you have advice for the candidates and anybody on the stage last night? >> man, exactly what bret told the folks. thank you so much. drop the talking points and speak from the heart. >> you have the media crowded around. do you think you are stealing the spotlight and not in the race? >> i don't think i'm stealing any spotlight. if anyone thinks i am, go find the other folks and say hello. >> a lot of people say they are downgrading the credit. >> for it weren't for the tea party, the discussion would never have gone where it went. i appreciate the passion to realize it needs to live within their means. the last group or entity to be blamed should be the tea party. i think the question should be asked, is the president responsible for the downgrade. i would say yes, from the top, that leadership starts from the top. the leadership of our country. >> why haven't you decided? >> i'm not the only one who has not decided yet and not ready to announce one way or the other yet. there is a lot of contemplation that needs to go into such an earth-shattering decision for a family >> a lot of people are pitting you and michelle bachman against each other. >> that's so passe. as michelle put it once, get in the mud and engage in cat fighting. it's ridiculous. even a sexist notion to consider the two women would be duking it out. no. if i'm going to duke it out, i will be dukeing it out with the guys. you concerned about the popularity. >> i'm glad michelle bachman is in the arena and she had an opportunity now to be on stage debating good ideas. probably anybody, male or female willing to put it on the line and get out and fight for what's right in the country. michelle is one of those. >> do you agree with the submission part? >> with her answer? that's her opinion. to her submission to her husband means respecting her husband. >> if todd said don't run, would you not do it? >> he never told me what to do when it comes to a political step and i appreciate that in you, todd. i respect you for that, todd. >> i think it's fitting that we end it by talking to marcus bachman. just a few minutes ago, something disturbing happened all the candidates have done. she showed up at about 5:30 and on the way out, we have the video. reporters asked her questions and i asked her very respectful questions about her performance last night and where sheens up. two of the star members that you see there in the video, one in the white and one in the black dress pushed me through the crowd and her husband did the same thing. he pushed me and elbowed me into the golf cart and caused people to spill stuff. they have been covering the campaign and said they have never seen anything like this. this was an embarrassing display i don't know why all of this happened. it was embarrassing and unfitting. >> it was nice of sarah palin to stay there and answer the questions. did she know who you were? >> sarah palin stopped and answered the questions. don, thank you for saying that. you didn't shy away and avoid any of it i said i'm not giving you -- this is not a got you question. how are the i cans? you are ready to be a grandmother again? it's great. she smile and she and todd talked about that. i would say no talking points. no mention of that. no talking points and talk from your heart. on the opposite side, the camp did not do that. i don't know what happened. they got swept up in the media and i was surprised when the two campaign aids said they pushed people in the crowd and elbowed it into a golf cart. >> they know and they obviously didn't know how. you are one of the nicest guys around. they never would have done that. are you okay with the injuries? >> i'm good. i hit my head, but i have a hard head. i'm fine. >> i want to make sure you are okay. >> thanks, wolf. don lemon will be covering all of this tomorrow. >> it the divert a lot of eyes to south carolina. rick perry will announce he is running for the republican ticket as well in charleston, south carolina, jim, this is going to shake things up. jumping into the contest. >> that's right, wolf. rick perry arrives here tomorrow as a major threat to the gop field. he is more conservative than mitt romney and more electable than the gop contenders. that may explain why the campaign has taken notice. >> washington is broke. as the federal government -- >> a tea party governor out of the wild west, rick perry was seeking reelection in texas last year. >> that's why i rejected federal dollars with strings attached and guided energy policies that raise taxes on the family. >> poised to shake-up the race for 2012, he could unite tea partiers with christian conservatives for a showdown with the white house. >> welcome to the contest. >> she not in iowa for the straw poll, but is on the minds of republicans. >> he represents the status quo. >> the governor is sharpening the message against mitt romney. >> if you want to look at the track record of when mitt was the governor of massachusetts versus my years of being the governor and i will let those stand on -- mine doesn't need any propping up. we will let it stand here and let people examine it. >> while romney is holding back. >> a fine man and a fine governor. the record of texas speaks for itself. >> president obama's reelection team is ready to join the fight. when asked about the attacks, a top strategist blasted back. >> i was called for a cessation from the united states of america and all kinds of other things. we will see when he becomes a candidate what he has to propose and his record will get scrutinized. >> a reference after a tea party rally two years ago. >> there is no reason, but if washington continues to thumb their nose at the american people, who knows what might come out of that. >> before in politics, it made him the longest serving governor, perry grew up poor in paint creek. no stoplight, just a school and a church, it's a half a world away from washington. the nearest cafe, the feelings on a perry bid are as strong as the coffee. >> our country has pretty much forgot about christian ethics and i believe he's a good christian man and i believe he will bring that back into our country like it needs to be. >> came from paint creek texas. graduated paint creek. he didn't help paint creek. what can he do for the nation? >> in his speech tomorrow, rick perry is expected to timeout his record on the economy. the democrats in the star state like to point out the record has not been tested on the national stage and the process begins right now. they are working this part of the story this weekend, thank you. our contributor has been traveling with governor perry and will join us later this hour for his insight into the campaign that is about to begin for us. stand by for that. the heart of president obama's health care reform law unconstitutional. that's the ruling by a federal appeals court that said the mandate requiring individuals here in the united states. to buy health insurance exceeds congress's authority. the senior analyst is on the phone for us. jeff, you are an authority on this. what does it mean? this decision. >> it's sooner rather than later. the united states supreme court will have the most important case since bush v gore. they will have to settle what is now a very wide range of opinions in the lower courts about whether this law is unconstitutional and it is most likely that decision will come out next june in the heart of the presidential campaign. >> we know there are liberal justices on the supreme court and more conservative judges. sort of the swing vote in the middle. do you have a sense of how this current make up, this current supreme court would consider the health care reform law and these individual mandates that controversial element of it? >> i think the four democrats are certain votes to uphold it. i think justice thomas is say certain vote to overturn it. the question is, can the liberal and the democrats get more vote? if i had to bet they could probably get anthony kennedy and probably the chief justice, but this is by no means certain and this will be as i said, a high stakes argument and the out come that we can make predictions and the out come is uncertain and this is the centerpiece of barack obama's legacy as president of the united states. it will be before the justices next year. >> we will be watching and waiting and will come at a critical moment. thank you. meanwhile, another wild week. very wild week on wall streetening on a high note. up 126 points. what can we expect next week they are both standing by. dogged by persistent unemployment. what should president obama be doing? i will ask our analyst. blurring the lines between biology and electronics, how a new kind of tattoo can monitor your heart automotive performance is gone. and all we have left are fallen leaves and broken dreams and -- oh. wait a second. that is a dodge durango. looks like american performance is doing just fine. ♪ carry on. ♪ investors here in the united states and around the world are reeling after a wild week on wall street that saw stocks lurching from dramatic highs to breathtaking lows in a series of roller coaster sessions. what can we learn from this week and what can we expect next week? let's get insight from our experts. joining us from london and he is in new york. a truly amazing week. i haven't seen anything like this for a long time. >> what are does it mean? was this an aberration or was it the canary in the mind syndrome. what we saw during the week is actually telling us the air in the markets is bad and there is something wrong with the economy. look at the way the dow traded throughout the course of the week. then we have a massive rise because of the fed, keeping interest rates low until 2013. once again, another roller coaster down because of rumors about that. throughout the course of the week, the marks seemingly never wanted to stop. bouncing around and the rumors just kept on flying. was this french bank in trouble? ben bernanke at the fed saying that the u.s. is growing considerably slower. the european central bank saying they were exceptional market circumstances. put all of these factors together and you have to ask yourself, is it a blip or was the canary starting to tell us? the air is bad. >> what's the answer to that question? >> richard is off on this thing. cat nary tells you when there is a problem in the mind. the appropriate analogy is a squirrel running around your garden. you realize they run around for no particular reason. this was just jitters. if there is a lack of clarity and in the absence of clarity, they are saying we don't want to be caught holding the bag. they would say oh, my gosh. i'm back in. this is market schizophrenia. a canary would tell you something is wrong. i don't think the gas is in the air for a canary to be smelling right now. >> i don't agree because of the reasons underlying what we saw. the volatility is there and symptomatic of what's happening underneath. that considerably slower growth and the interest rate for 2013. come on. you don't get the fed -- >> all right. so wolf, the united states gets downgraded and we covered it all together. guess what. it costs the u.s. less money to borrow than before the downgrade. the sell off because of the french rumor of getting downgraded, just a rumor and never ended up being truth to the whole thing. u.s. unemployment came in stronger and we got the wokely unemployment claims. where is this double dip recession. the european debt thing is not new. the investor is new. there is a lot of skiddishness. for the smart investor, you hold tight and stay diversified. gold is going up and bonds have been going up and purnsy have been going down. this is the time to be in and be diversified and hold. >> you have thrown everything into that except the kitchen sink. you have them buying the spanish bonds. you have central bankers admitting that things are slow. i'm not saying it's a crisis. i'm not saying that the double dip recession, but i am saying this marketcanary is saying this. >> they would have read the federal reserve's announcement that they are going to keep interest rates close to where they are now. a quarter percent until 2013. teach the bird to read and not just smell. >> and why did you think they are keeping it until 2013? they are not doing it out of great love of cheap money. they are doing it because as bernanke said, the economy is weaker and he described the housing market as depressing and he talked about the problems of unemployment. >> very quickly -- >> your refusal. >> next week, can we expect more of this crazy volatility? >> you will see this for a while. people are a lot smarter and can't agree as well. buying tunes and people trying to get out of the market and the contest, not only volatility, but the intraday volatility. >> absolutely because what's happening is the people who have profits will see what happened and when the market recovers they could head to door to the profits. one thing, volatility is the name of the game. >> we are getting ready for more of that roller coaster with both of you guys. >> verizon claims it has been sabotaged and they are investigatin investigating. the latest into the probe. we now know who is on the super committee, but are they using the status as a fund-raising tool? 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[ male announcer ] this is our beach. ♪ this is our pool. ♪ our fireworks. ♪ and our slip and slide. you have your idea of summer fun, and we have ours. now during the summer event get an exceptionally engineered mercedes-benz for an exceptional price. but hurry, this offer ends august 31st. new crack downs in syria. lisa sylvester has that and the other top stories. >> armed men breaking up anti-government protests following friday prayers and syria's state run news agency is respecting that troops are conducting a crack down in the northwestern province and workers say more than 2,000 have been killed. they called in federal voters to investigate the sabotage with the network. they report more than 90 acts of sabotage since 45,000 workers began striking the union is condemning the sabotage and the wave of recent violence to the flash mobs. a new curfew will take effect in the university neighborhoods. those areas. no one under 18 will be allowed on the streets after 9:00 p.m. it moves a series by large groups and teenagers >> thanks very much for that. an embarrassing invitation a pointed to the super committee on debt. what will rick perry bring to the republican race for the white house? 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>> the congressional super committee sounds like it will be a super fund-raising tool for the benefit of those on it. believe it or not, the first sign came within hours after the last three people who were appointed to serve on the super committee. yesterday afternoon, one of the top guys at the investment company commute that represents the mutual fund fired off an inviting a. it was to a fund-raiser with congressman javier basera of california who was appointed to the committee. he was making sure people knew about the event they had scheduled at the end of the month in washington. pointing out the new committee assignment. is this just politics as usual? you be the judge. the office immediately went public with an explanation and said he had no idea the supporter was sending out that e-mail. he didn't ask for the invitation and didn't know about the invitation and it was planned months ago before basera was appointed to the commit eechlt end of story? here's the thing. they didn't ask despite the appeal >> several weeks ago before there was any vote on the bill to create the super commission, they since apologized. i accepted his apology. >> is it still in the schedule and are you going to attend given the uproar about it? >> i will continue to do what i have to do as a member of congress. we will move forward. i don't plan to do anything differently than for the last 19 years as a member of congress >> i spoke to them and the fund-raiser was put in the schedule way back in january. you can expect that in the weeks and months ahead in these members of influential groups in washington that will try to influence them way or the other. thanks for that report. meanwhile at the white house, jobs were certainly the focus as president obama met with ceos of the top u.s. companies including xerox, american express, wells fargo and more. let's go to jessica yellin with details. what do you think about the meetings held behind closed doors? >> the president sat down with eight ceos of the top companies and earned more than $42 billion in proves last quarter alone. they talked about issues including what it's like on the ground for companies right now and what will they feel can help them. in truth, there is a lot the administration would like the business to do. to pass the initiatives and the trade policies, this white house and the nation's business leaders have not always had the smoothest relationship. >> the president is going to begin a bus trip next week. i wonder if he will go through several states. sarah palin is criticizing this as campaigning instead of trying to create jobs. the white house is fighting back, i assume? >> of course. the president next week will be in minnesota, iowa, illinois, in rural towns. i will point out that the democrats lost the rural vote in 2010. the 2010 elections, rural voters helped give republicans a win in the house of representatives. no doubt, these are voters the president would want to win back for his reelection next year. the white house as you say and the administration and the advisers say this is in no way political on this tour. the president will be emphasizing initiatives that he backed and opinion to push to support rural communes on the economic front and technologies. we will hear an awful lot more of that on monday. >> certainly will. we will cover it every tep of the way. thanks very much. >> let's dig deeper with the analyst, david gurgin. how much trouble is the president in right now? >> very vulnerable. increasingly so. they were facing a strong candidate on the republican side. we would all be saying he could be the underdog. the best thing he has going for him is the republicans. >> here doesn't have major challenges? mitt romney, the former governor of massachusetts seems to be the front-runner although he could face a challenge from the current governor of texas, rick perry. >> that's right. i think there is a widespread sense in the country that will need to see more of mitt romney if he makes that final judgment. he is running a much better campaign than last time. a more effective candidate. the political odds makers say if you sort of put them head to head, we will have to wait and see. i have to tell you what i think is most worrisome is we have a wounded and the a week opposition. a governing and leading the country over the next four years, that is not the most hopeful way, but it could get better. >> in this highly charged environment in washington, indeed around the country right now, how does the president get out of this jam as far as jobs, jobs, jobs are concerned? >> the president is doing what presidents normally do in august. he is hitting the campaign and makings case for his policy and pointing fingers and blaming the other side. these are not normal times. whether they look beyond the volatility in the markets the great deal of distress and told us for the next two years not much weak growth. they believe it will be good for the period of not normal. they have a circuit breaker here i wouldn't call the congress back i would call the leaders back. say they look, you have a set of proposals. i will veto them. i have a set of proposals you give some of what you want, but let's get moving on the job front. they give them more confidence and faith and optimism if consumers are more optimistic and employers are available to hire more people >> congress is in recess for weeks september seventh and the president will head for a week's vacation on its own. you can do a lot of work and meet with his staff and be on the phone and all of that. how does it look in an economic period of turmoil for the president to go on vacation? >> i think most americans feel the president and his family ought to have a chance to get away. i can't nick him for that. i respect his need to get away and it helps to recharge your batteries. we see it that they come back better for it. the optics question revolves around martha's vineyard. it is a place of great affluence. there americans who will look at that and say why can he go off into the elites? i'm here stuck at home. i can't pay for the gas to get to the shore or whatever i want to do. that is a tricky one. he's got to be mindful of that. i would like to see him call his congress back and take it well deserve and well-earned vacation. >> they worked for four american presidents. thank you very much. thank you for joining us. president obama meanwhile welcomed the super bowl champion packers to the white house, inviting the sports teams to the white house. a long standing tradition, but the president who roots for the packers's arrival said this time it stung a bit >> i am going to couple out and say it. it hurts a little bit . it doesn't hurt as much as the nfc championship it still hurts you can come to my house and rub it in. >> along with congratulating the super bowl victory, he recognized the packers off the field for community service efforts. rick perry's announcement can be a game changer for republicans. what does he bring to the table that the front-runner doesn't? how a love for baseball will help the japanese recover from the devastating tsunami? at exxon and mobil, we engineer smart gasoline that works at the molecular level to help your engine run more smoothly by helping remove deposits and cleaning up intake valves. so when you fill up at an exxon or mobil station, you can rest assured we help your engine run more smoothly while leaving behind cleaner emissions. it's how we make gasoline work harder for you. exxon and mobil. man on tv: ...rbis and 36 homers. swings at the first pitch and fouls it deep back into the stands. [ding] [fans whirring] announcer: chill raw and prepared foods promptly. one in 6 americans will get sick from food poisoning this year. check your steps at foodsafety.gov. a shake-up over the republican race with rick perry expected to announce his candidacy tomorrow. let's go to bill bennett, the host of the national radio talk show morning in america. you have been traveling a little bit with rick perry. what are his strengths as far as you can tell and his weaknesses? >> the strength is he brings a record of strong, good, expectative leadership. that might be worth trying. he has been the governor of texas and is energizing a lot of people. i was with him today in alabama. it's not overwhelming, but it's interesting. they scheduled a dinner for the alabama republican party for 400 people and now they have 1600 coming out for rick perry. there is a kind of excitement among the base that is very good to see. i heard dave talking to you about people not getting excited about the field, but a lot of people excited about rick perry. >> does he bring weaknesses? i know there a lost american who is don't want to see a texas governor in the white house. does he bring special weaknesses that see? >> not that i see. it would be irrational to say we had a texas goff nof avernor an have one again. evaluate the man on the merits and on his own record. the record interestingly it seems to me i should say i'm not part of the perry campaign and i have not been asked to endorse him. it's the very thing the americans care about the most. it's about the economy and jobs and what happened in the state of texas and whether that could happen nation wide. that was the appeal i heard him making today. >> i heard a lost them saying it upon ship up being rick perry versus mitt romney for the nomination. do you believe that? >> it could be. there other talented people, but mitt romney, a bright guy and you have rick perry who is an extremely bright and able politician and who has done a great job as governor. it's interesting that the governors continue to have such prominence. they have real jobs and real things to do. when they accomplish them, this burnishing credentials for the national office. >> i heard it already since yesterday. people are saying just as hillary clinton and barack obama had a long drawn out battle for the democratic nomination four years ago. we could see a similar situation between these two, one was a former and a current governor. >> you could. that could happen. you are very experienced in politics, wolf. that can have two effects. a lot of resources can be chewed up. barack obama has a billion dollar campaign he made. it's a better candidate for the general election. what we want is good and able candidates to sharpen each other and put the best person forward. there is a lot of excitement about perry. we will know a lot in the next two or days. >> we will. he will number south carolina and new hampshire and iowa. three random states i should say. >> random, yeah. >> bill, thanks very much for joining us. thank you a different kind of tattoo. this can man tor your heart, brain activity and a lot more. we have details of an amazing medical advance. you want to see this. hey can i play with the toys ? sure, but let me get a little information first. for broccoli, say one. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time. he's in control. goodbye. even kids know it's wrong to give someone the run around. at ally bank you never have to deal with an endless automated system. you can talk to a real person 24/7. it's just the right thing to do. [ male ] using clean american fuel is just a pipe dream. ♪ [ female announcer ] we're rolling away misperceptions about energy independence. did you know that today about a quarter of all new transit buses use clean, american natural gas? we have more natural gas than saudi arabia has oil. so how come we're not using it even more? start a conversation about using more natural gas vehicles in your community. a tattoo that could change the face of medicine. more on how electronic devices can track medicine. >> this is amazing, wolf. researchers have come up with a device that they see is blurring the line between biology and electronics. it also has the potential of being used far beyond medicine. when you think of tattoos, medical advances are probably not the first thing that come to mind. but consider the small electronic tattoo of sorts. a study in the journal of science says the tiny device can fundamentally change the way patients are monitored. university of illinois professor john rogers is the study's co-author. >> how do you see this device being used immediately? >> in terms of near term applications, in clinical use, in hospitals for monitoring health wellness. >> the beating of the heart and muscle contraction could be monitored by this thin, electronic skin that can replace uncomfortable devices. >> we've demonstrated the ability to take one of these devices, laminate it on the throat area and use it to record muscle contractions as the wearer is speaking different words. it turns out that sufficient information content in that kind of measurement to allow software al low grit themes to use a computer game. >> roger says it could be used, perhaps, to help people with larynx disorders to communicate. but there is also a downside. >> remember, when somebody can put on you voluntarily to say let's monitor your heartbeat or let's monitor and you have to wear this. we want to know whether you're taking your pills and whether you get stressed out. >> this kind of device raises questions about the potential ways it may be used beyond medicine in the future. the study's researchers say that they are focused on practical uses. wolf, down the road, they say it's being used as sort of a smart ban damage, for instance, that could one day help heal wounds. >> amazing, as you say, technology. thank you. meanwhile, new legal hurdles for casey anthony. lisa sylvester is monitoring that and other top stories in "the situation room." what's going on here? >> a lot of interest in the casey anthony case. a florida judge is ordering that casey anthony return to the orlando area to serve a one-year probation sentence for a check fraud conviction. the conviction came before she stood trial for the murder of her daughter caylee. casey is believed to have left the orlando area. the judge ordered that she report by august 26th. and for the first time on record, a person has died from a vampire bat fight in the united states. federal authorities say that a 19-year-old man died of rabies after being bitten by a vampire bat last year. the man was a migrant worker and actually received the bite in mexico before coming to the united states. but authorities are warning that the bats appear to be migrating north, possibly due to climate changes. and astronomers say that they have discovered the darkest world in the universe. the jupiter-sized planet absorbs 99% of light that reaches it. that is darker than coal and more reflective than black acrylic paint. it's 750 light years from earth with surface temperatures believed to be about 1800 degrees. and there it is, wolf. >> pretty amazing. thank you, lease sachlt thank you very much. breaking down the republican presidential debate with candidate jon huntsman. le tell john king how he think he did at the top of the hour on john king usa. what happens when you combine diplomacy, disaster relief, and sports? you'll find out. that's next. ♪ ♪ introducing purina one beyond a new food for your cat or dog. i've tried it. but nothing's helped me beat my back pain. then i tried this. it's salonpas. this is the relief i've been looking for. salonpas has 2 powerful pain fighting ingredients that work for up to 12 hours. and my pharmacist told me it's the only otc pain patch approved for sale using the same rigorous clinical testing that's required for prescription pain medications. proven. powerful. safe. salonpas. [ martin luther king jr. ] i still have a dream that one day on the red hills of georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. i have a dream today! [ male announcer ] chevrolet is honored to celebrate the unveiling of the washington, d.c., martin luther king jr. memorial. take your seat at the table on august 28th. baseball diplomacy. a group of teenagers escaping the earthquake, devastation in their country through baseball. cnn's jill dougherty has the story. >> reporter: he's hooked on baseball and started playing ten years ago when he was 7. now that passion is helping him recover from the biggest passion of his life. his family forced to leave their home in the fukushima nuclear plant. it helps me to play baseball, he says. it helps me to forget everything else. here in northern virginia, he and other japanese teenagers who love baseball are taking part in the state department's exchange with japan. all of them lost pets in earthquakes that happened in march. they live in shelters, temporary housing, or relatives ever since. the baseball fields that they used to play on at home in japan are gone so they play on empty lots. >> the japanese people have shown great resilience and are pulling together to support each other at this time and sports is a way to bring people together. >> baseball icon cal ripken tells me he wants to tap into the magic of sports. >> it does have a powerful healing mechanism. so many times you don't know how to articulate a message of caring but certainly through sports we're able to communicate that message. >> 14 years old, lost his father in the tsunami. a lot of people like baseball in japan so he says i feel like playing the game and can cheer people up and encourage them. 17-year-old is from fukushima. she says, just a snap of her arm

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