"situation room" starts now. thanks very much, brooke. happening now, republicans pouncing on president obama and a horrible new unemployment report. this hour, the numbers and the politics and what it all means for millions of americans who need a job now. plus, i'll talk to a republican congressman who plans to boycott the president's big jobs speech before a joint session of congress next week. also, a new worldwide travel alert as we approach the tenth anniversary of 9/11. national security insiders tell us what they know about the risk of a terror attack. revenge, as far as al qaeda is concerned on that momentous day. and a statue honoring one of the most important figures in american history, made in china. controversy surrounding the dr. martin luther king memorial. i'm wolf blitzer, you're in "the situation room." it's a big fat zero, and it's a bright red circle around the unemployment mess in this country right now. the government reports today that no new jobs were created in the united states in august. it's the first time in nearly a year there hasn't been a monthly net jobs gain. the unemployment rate held steady at 9.1%. but stock traders were spooked. prices plunged at the opening bell and respond to the jobs report. all three indices were way down at the end of trading with the dow plunging more than 253 points. the republican presidential candidates are being tough on president obama over the new jobs report. >> this is an extraordinary land, and i watch washington right now and it break misheart because the people there don't understand how america works. obama is not working. and he has disappointed the american people and this morning, very bad news. did you see the numbers that came out on job growth? look, there is zero faith in barack obama because he's created zero jobs last month. >> the jobs report comes out today, you know. zero, goose egg. that's where this country is. we're totally stalled out, we're totally in neutral. we've got people suffering out there. moms and dads living on the edge, trying to cover for their families. we can do better than that. we're the greatest nation that ever was. >> texas governor rick perry issued a statement saying, and i'm reading part of it now, the poor national jobs picture stands in stark contrast to texas's pro jobs limited government fpolicies. this from congresswoman michele bachmann. mr. president, we gave you $2.4 trillion in new spending and the american people got nothing in return. let's bring in our chief political analyst gloria borger. it's not surprising what the presidential candidates are saying. they're calling president obama president zero for that matter as well. >> it's predictable, an easy political shot, but they're preaching to the choir out there with the american public. take a look at some of our new polls. we asked the question, is the economy in a recession? 8 out of 10 people, fully 82% say of course, yes, we are in a recession. we also asked the question, how are things going in this country today. 7 out of 10 said badly. so if you're a presidential candidate, you're campaigning against an incumbent, unemployment, 9.1%, what would you be saying out there in the campaign trail? it's the kind of things, by the way, that barack obama used to say about george w. bush. >> how much bres pr es sure does this put on the president as he gets ready for his big speech? >> a tremendous amount of pressure. the president has to go to the american people and say look, we are trying to do something. as you know, wolf, there are a bunch of economists out there who say there isn't actually that much the government can do, but a president can't take to the bully pulpit and say by the way, there's nothing i can do. i think he's actually ratcheted up the stakes tremendously by asking to address a joint session of congress. what kind of stimulus package is he going to propose. is it going to be larger than he knows he can get through the republican-led congress or is it going to be more bipartisan in nature with things that he knows republicans will agree to? we'll have to see. >> but even while the republicans, the candidates are really hammering the president over this whole jobs issue, they are beginning one by one to start laying out their own plans. >> they are. and i think that it's -- since they've said to the president of the united states, you need to lay out a plan, they have to lay out a plan. so what we heard from john huntsman, who released a plan earlier this week, it called for serious tax reform, which "the wall street journal" wrote an editorial about i is aing it was quite a good start, a very good plan. we're going to hear from mitt romney on tuesday, and then wolf, we hear from the president on thursday. what's been interesting about this debate so far on the debt ceiling is that it's been mostly a congressional washington debate. now it's time for the republican presidential candidates to weigh in and try to lead on where we go from here and that's exactly what we're seeing. >> gloria, thanks very much. president obama left the white house for camp david earlier today without saying anything about the new jobs report. let's bring in our congressional correspondent kate baldwin. the republicans, including the house speaker, john boehner, they are responding. >> they absolutely are. john baner is in his district, in his home state, speaking at the opening of a small business there. and you can be sure a small business that republicans say that they are out trying to protect, talking about jobs earlier today. house speaker john boehner responded, reacted with some very strong words to these terrible august jobs numbers. i'll read you a statement in part. he says, private sector job growth continues to be undermined by the triple threat of higher taxes, more failed stimulus spending, and excessive federal regulations. together, these washington policies have created a fog of uncertainty that's left small businesses unable to hire and american families worried about their future. now, as you know, all eyes will be on president obama and his jobs plan that is set to be unveiled in a joint session of congress on thursday. but boehner is pushing his own jobs plan at the very same time, especially in light of the new jobs numbers. the focus of this jobs plan is in large part proposals republicans have supported before, offering tax breaks for employers which they say will help businesses hire new workers. also eliminating some labor regulations, as well as eliminating some environmental requirements, set by the epa. republicans call them job destroying rules. democrats disagree, not surprisingly, and say the rules and standards will save lives. well, preemptively, the president today, wolf, announced he's putting one of those new regular laces by the epa on hold, a plan to tighten air standards. speaker boehner in another statement applauded the move but says more needs to be done. i think bottom line, it still remains a big question and it will be no surprise to you how congressional republicans, democrats and the white house are going to be able to reach agreement on any of these issues when they're still so far apart on how best to fix the problem. rolf? >> by the way, i was a little surprised before the president boarded marine one to fly up to camp david for the weekend he didn't stop and make a statement on this latest jobs report. he usually does make a statement, but this time he decided, i guess, he's going to wait until thursday night to make his big statement about the jobs. kate, thanks very much. meanwhile, new word that president obama is backing down from the controversial new set of rules to cut smog levels. it's a sign of pressure he's feeling to sai jobs. enormous pressure. but with this new move, he's managed to tick off at least part of his political base. brian todd is joining us now to talk about this part of the story. >> he is angering his political base. move on is wondering now if it can have work now for president obama's reelection. this is a very incendiary issue. no one is saying a whole lot about the timing of this, but it came just hours after the dismal jobs announcement by the labor department. the obama administration has long been trying to tighten the standards for ozone in the air. that's similar to smog, as we have just been reporting. the president just hours after the jobs announcement said they were going to at least temporarily halt the implementation of these tighter standards for clean air, the ozone national ambient air quality standards. members of the industry and some republicans in congress are hailing this, saying that this is going to save some jobs and this might, at least, stop the bleeding as far as the loss of jobs. big business and industry had been complaining that the cost of implementing those standards would be so high that it would cost them tens of thousands, if not hundreds of thousands of jobs. but environmental advocates and health care advocates are furious with this. here's a statement with the head of the american lung association. he says in a statement, the administration's final decision not to enact a more protective ozone health standard is jeopardizing the health of millions of americans, which is inexcusable. now, some environmental activists say that increasing those standards, those clean air standards would save about 4,300 lives per year, prevent 7,000 hospital visits per year. so again, the president in a real vice grip with this issue. but for now, they rear halting the implementation of these clean air standards. >> yeah, not an easy decision. rejecting, overruling lisa jackson the head of the environmental protection agency saying we're not going to implement these regulations, these rules right now. they'll have to wait for perhaps better economic times. brian, thanks very much. as president obama prepares for his big jobs speech next week, one republican member of congress is actually planning a boycott. i'll ask him about that and if he really meant to call the president idiotic. and a storm that could drench once again new orleans. stay with us here in "the situation room." to help eliminae litter box dust: purina tidy cats. our premium litters now work harder to help neutralize odors in multiple cat homes. purina tidy cats. keep your home smelling like home. exclusive to the military. and commitment is not limited to one's military oath. the same set of values that drive our nation's military are the ones we used to build usaa bank. from free checking to credit cards to loans, our commitment to the military, veterans, and their families is without equal. ♪ visit us online to learn what makes our bank so different. usaa. we know what it means to serve. 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[ crunching, sipping ] be happy. be healthy. can i try yours? lisa sylvester is monitoring the top stories in "the situation room" right now. a monkey wrench in the republican presidential contest? what's going on. >> that's right. arizona's governor could i think isle handedly disrupt the gop's carefully plotted primary schedule. jan brewer must decide if she'll move arizona's primary up a month to january 31 to give arizona more influence in the republican presidential race. such a move would shake up primary calendars for other states. the deadline for that decision is tomorrow. the co-chairs of congress' super committee on the debt crisis have announced dates for their first meeting and first hearing. the first full meeting is set for thursday morning, september 8. the initial hearing will follow five days later, september 13. the committee was formed last month to find $1.5 trillion in savings over the next decade as a condition to raising the debt ceiling. the prince william maco the pima county sheriff's department is catching heat for offering up a gun in a raffle. it's similar to one in a mass shooting that left six people dead and gabrielle giffords wounded. the move is being called insensitive. and controversy around sylvio berlusconi using salty language to describe his country. he said he's frustrated with investigations of him and he's eager to leave the country. he used exploetives to describe his country and the criminal inquiries. in separate cases he's fighting accusations of abuse of power and sex charges. that's pretty rare where you have somebody actually criticizing their own country. not something you see every day. >> he was speaking in italian. so i wonder if the italian exploe expletive deleted is the same as the english expletive deleted. >> i'm sure our viewers will start tweeting you. thanks very much. one republican lawmaker is refusing to hear what the president of the united states has to say about jobs. i'll talk to congressman joe walsh of illinois and ask him about his decision to boycott the president's speech before a joint session of congress thursday night. and i'll ask him why he is calling the president, in his word, idiotic. and sarah palin is the newest target of dick cheney. the former vice president has been letting the barbs fly as of late. is anyone safe? tinted moisturizersiant with scientifically proven soy complex and natural minerals. give you sheer coverage instantly, then go on to even skin tone in four weeks. aveeno tinted moisturizers. 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[ male announcer ] if you can't afford your medication, astrazeneca may be able to help. >> when president obama talks about america's job crisis before a joint session of congress next thursday, at least one seat in the chamber will be empty. and joining us now, republican joe walsh of illinois. thank you very much for coming in. >> thank you, golf. good to be with you. >> you caused somewhat of a stir, which is not necessarily always what you want to do, but you've been doing it lately. you decided you don't want to be here in washington thursday night when the president addresses a joint session of congress. some are suggesting this is disrespectful to the president of the united states. why did you make this decision? >> wolf, i made the decision a day or so ago when i found out that the president was going to speak before a joint session. to me, this is nothing but a political move by this president anticipate i simply didn't want to be a pawn in this political theatre. i'm not even talking about the substance of what he's going to say. isle read his speech. if he's going to propose anything new on job creation, i'll certainly respond to it, but to call a joint session of congress to me sort of demeans the whole notion of that, and he's doing it for purely political reasons. >> but there's no issue more important right now than job creation, and healing the american economy. if there were ever a time, congressman, to call for a joint session of congress, it would be during an economic crisis like this one. >> oh, wolf, we've been in this economic crisis for three years. this president has gone a long way to destroying the economy in this country. we're beyond speeches. again, respectfully, it seems like all this president does is try to give a good speech. i don't want to be a pawn in that. i would rather he sit down with congress, roll up his sleeves, propose something serious, negotiate and try to really come up with something. but instead he wants to give a speech, and he's only doing it for political reasons. we all know that. >> have you asked other members of congress to follow your lead and boycott this session? >> no. no, not at all. >> have you informed the speaker john boehner? >> i have not yet. each and every member has got to do what they think is right. look, again, i'm beyond speeches. there's no reason. i mean, we typically -- wolf, you know, we reserve joint sessions of congress for dignitaries from around the world, for presidents during times of war, or big monumental poe moments. this country has been in economic crisis for three years and now all of a sudden this president is going to retool some jobs plan? it just doesn't make sense to me, wolf. i would rather go home and i'm going to go home and talk to small businessmen and women and find out from them what we need to do when it comes to this economy and i'll bring those ideas back to the president. >> is it responsible, congressman, to call the president of the united states idiotic? >> wolf, absolutely not. and i held a town hall last night. a couple hundred people, and i apologized for that. that was absolutely stepping over the line. and i apologized. what i meant to say, and i didn't say it artfully, the notion of him to call a joint session of congress to repackage a few old jobs ideas, that that to me is idiotic. he's not the idiot, he's the president of the free world prk but i don't want congress to be a pawn, again, to just be a prop in this political theatre of his. all he does is give speeches, wolf. and we've got to move beyond that. >> but you don't know until you hear what he has to say thursday night if this was just a speech or if tle's a concrete set of ideas to get this economy going. again, you don't know. but you're already prejudging. >> well, again, i could probably guess pretty easily that it's going to be more of the same, but that aside, wolf, that's not my objection. my objection is to his notion of calling this joint session. i think it's an overreach, i think he's doing it for political reasons. he wants to show the american people that he's leading when he hasn't led, and he wants congress, each and every member of congress to be a prop in that 30-minute theatre. and i just don't want to be used like that. this is much more important than a simple speech. >> you know, we'll do some checking but, you know, every president asks for joint sessions of congress to make important proposals. ronald reagan did it, both president bushes did it. they always do it. i've been in washington for a long time. but what you're saying is, you don't even want to hear what this president has to say and give him the courtesy of sitting there? >> wolf, go back and check. if you go back and look at the last 20 joint sessions, again, typically, dignitaries from around the world, presidents during time of war, or introducing hugely monumental legislation. this is not going to be that. i don't -- again, i'm not pointing my finger at you, but your profession continues to give this president a pass. he's abusing the very notion of a joint session and look, i'm going to read and listen to what he proposes, i'm going to respond to it, but i'm not going to sit in that chamber and be a prop for a political exercise from this president. >> congressman joe walsh of illinois speaking his mind. you'll be back on friday, right, though, the day after the speech? >> i'm going to go home, going to talk to job creators, coming back to d.c. friday morning. >> see you then, congressman. thanks for coming in. we'll take a look at the huge jump in unemployment rate for african-americans. stand by. and controversy swirling around the new dr. martin luther king memorial here in washington. there are new developments today at issue. questions about patriotism and arrogance. let me tell you about a very important phone call i made. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare, call now to find out how an aarp... medicare supplement insurance plan, insured by unitedhealthcare insurance company, helps cover some of the medical expenses... not paid by medicare part b. that can save you from paying up to thousands of dollars... out of your own pocket. these are the only medicare supplement insurance plans... exclusively endorsed by aarp. when you call now, you'll get this free information kit... with all you need to enroll. put their trust in aarp medicare supplement insurance. plus you'll get this free guide to understanding medicare. the prices are competitive. i can keep my own doctor. and i don't need a referral to see a specialist. call now to get a free information kit. plus you'll get this free guide to understanding medicare. and the advantages don't end there. choose from a range of medicare supplement plans... that are all competitively priced. we have a plan for almost everyone, so you can find one that fits your needs and budget. with all medicare supplement plans, there are virtually no claim forms to fill out. plus you can keep your own doctor and hospital that accepts medicare. and best of all, these plans are... the only medicare supplement plans endorsed by aarp. when they told me these plans were endorsed by aarp... i had only one thing to say... sign me up. call the number on your screen now... and find out about an aarp medicare supplement insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. a network of possibilities... ♪ in here, pets never get lost. ♪ in here, every continent fits in one room. it was fun, we played football outside. why are you sitting in the dark? ♪ [ male announcer ] in here, you're never away from home. it's the at&t network. and what's possible in here is almost impossible to say. the gulf coast is under threat from a powerful tropical weather system under way right now. we're talking about tropical storm lee. it's lumbering towards the region. forecasters say lee could bring up to 20 inches of flooding rain and winds of up to 65 miles an hour. emergency declarations are in place for portions of mississippi and louisiana. new orleans right now on alert. >> the city of new orleans has taken all necessary precautions. as i said earlier today, issues a declaration of emergency so that we could have as much flexibility and authority to act as quickly as possible as the need arises. we will be on duty 24/7 from this moment until we are not needed to do that anymore. >> also on the radar, a storm system churning into the atlantic right now. it may be a few days before we know if it will reach the united states. much more on katia and lee coming up in the next hour. the damage from hurricane irene is pretty extensive, but some storm watchers say irene could have been so much worse. what if it had been much worse? our pentagon correspondent chris lawrence is joining us now with an exclusive report. chris, how ready is the u.s. military right now for a major disaster? >> well, wolf, as we saw from one of our own cnn producers who was onboard one of the ships out at sea when the hurricane was hitting, it's better than it used to be. back in the days when the military would just move its own assets out of the way, now they're at least thinking ahead to how can we help? >> the "u.s.s. wasp" may have been sent to sea to stay clear of the storm but it also left port with extra sailors and equipment specifically suited to help with quick hurricane response. >> i think the challenge is you're facing an unknown. you really don't know what you'll be asked to do. i kind of have an idea what i can provide. search and rescue is one of them. >> like the dome mounted on front of this helicopter, it's called forward-looking infrafred. the pilot could use this to look at blood waters or storm debris. then the crew would have hauled them onboard for treatment. during this week's sorty, they launched a mass rescue drill. >> oh, my god, my leg! >> we have three operating rooms. we can expand to four. we have 15 icu beds, as you can see here. each one with its own equipment, which you would find in a normal icu. >> admiral kevin scott says the navy is changing its tactics. >> years and years ago, it was, you know, take whatever you have, bring it down here and we'll sort it out. that takes time when people are standing in rooms and need life-saving support. >> so instead of just high tailing it out of port, the navy thinks ahead, bringing what it needs to provide help after the storm. >> the response that's required for a major catastrophe, you know, requires all the resources that a nation has to bear. >> yeah, the wasp arrived back in norfolk today. and immediately, the crew started looking at what they could do better next time. especially if next time means going to shore and helping the storm at its worst. >> she'll be spending labor day weekend in iowa and new hampshire, but guess what, sarah palin has yet to declare presidential intentions. but some say time is running out. ♪ it was the best day woohoo! yes! ♪ it was the best day ♪ it was the best day yeah! ♪ it was the best day ♪ because of you [echoing] we make a great pair. huh? progressive and the great outdoors. we make a great pair. right, totally. uh... that's what i was thinking. hmm. covering the things that make the outdoors great. now that's progressive. call or click today. >> let's get back to our top story. zero. zero jobs growth in the united states in august. what exactly does that mean for the future? lisa sillsylvester is back. she's digging deeper at the data wall. what are you finding? >> last month there are 14 million unemployed workers. you can take a look at seen what the trend has been. there were significant job losses in 2009, then it appeared that the jobs were starting to come back. then you get to 2011, which is where we are right now. august 2011. exactly 0 jobs were created. and this is pretty significant. to put this in perspective, where we really ideally need to be is we really need to be somewhere in the vicinity of 150,000 to 200,000 jobs created every month just to maintain the status quo. that's just to maintain about a 9% unemployment rate. really what you want to do to get back to preesessirecession unemployment, you need to add abo about 400,000 jobs every single month for the next three years to have about 400,000 jobs created. so we are well off that mark. there's another perspective, another way that we could take a look at this. we're going to close this up here and take a look at gdp numbers. this is the benchmark of 5% gdp growth. you can see that growth was looking very good in 2000. then it fell off here. here we are in 2011. if we had 6% gdp growth then relatively quickly, we would get unemployment down in 2012. we're nowhere near that number. if we had 3% gdp growth, in 2020 we would get to 5% unemployment. the latest forecast has been revised from 2.7% gdp growth to only 1.7% gdp growth. that's a big problem. because even at 2% gdp growth, you're still going to see unemployment going up to nearly 12%, and that's in 2020. that's a real big problem for this economy. we need to get gdp growth up. at the same time, it's going to be a real problem for president obama because all of this happens heading into an election year. >> thank you. the economy and jobs are sure to be in sarah palin's speeches when she heads to iowa and new hampshire this weekend. but everyone is waiting to hear her say something else. will she or won't she run for president of the united states? joining us now to talk about that in our strategy session, the democratic strategist and cnn strategist james carville and rich gailen of mullins.com. when does she have to make her decision? does it have to be made this weekend? >> it doesn't have to be made this weekend, but it's got to be made pretty quickly. it takes a long time to get set up. you're not just running in iowa. you're in iowa, new hampshire, south carolina, florida, nevada. you've got to have the ability to not just raise the money, but to build a team, to build an infrastructure, to keep on going. but i said, when we were in iowa two weeks ago, whenever it was when sarah palin showed up at the iowa state fair, it was like pippa middleton had shown up to sample butter on a stick. it was remarkable. but she's almost an sbher takenner my mind, she's a personality. she has shown nothing to me that would indicate she's the least bit ready to become a candidate. >> has she shown anything to you, jams that she's ready to run? >> people run for president other than the fact that they want to be president. obviously she can't stand the fact that all the reporters and everybody is out there in iowa and new hampshire. and so she's there. i mean, look at her bus tour. she's not going to run a campaign like rich galen or james carville would. when she shows up, people crowd around like flies which she apparently enjoys. she may just get in the race, run in iowa and new hampshire with no intention of going anywhere from there. my sense is she's not running for president, she's running for the attention and she's going to get a lot of it. >> when you say the attention, is she running to get nor higher speaking fees? a new book deal? does she just want to get that exposure to make money, is that what you're suggesting? >> what i'm suggesting is that she's watching everybody get a lot of attention and she can't stand it and she wants to get into the middle of it. i think it's basically that simple. and she likes being out there. i give a lot of speeches, you give a speech, give a speech and talk to 600 people, she shows up at the iowa state fair and everybody is crowding around here. and she obviously enjoys it. that's what her kind of deal is. she enjoys the sort of celebrity aspect of it. there's no chance she would be the republican nominee. she's many things, but she's not that dumb and she understands that. but she will sure cause a big stir and she kind of likes that. >> i think that's right. she does this thing, disappears for a week and a half, two weeks, three week, then pops up again. so she keeps the media sort of waiting for her next step. she's got that down to a science. but once you run for president, all the laws and regulations kick in. and for everybody who's ever done it or been around it, it's a very serious thing to take on because of all the things you've got to give up to do it. >> she's not going to run as a candidate. she's going to run as a celebrity. she won't do anything you and i would think to do to get in a campaign. she's just going to get into a bus and show up where she wants to. and people are going to follow her. she's not going to have a polk county coordinator or a phone bank. she's just going to go around and get attention. >> and it's working. >> why not. i'm fascinated by her. >> she got slapped today by the former vice president of the united states, dick cheney. listen to what cheney told laura i think -- ingraham in her radio show. >> i never got around her leaving the governorship. i never got an answer to that. the first term, she decided to step down. i would like to know more about that. >> she was elected after four years. after two years, she said she had enough. >> since she quit that job, james? >> 15 to $20 million. >> millions of dollars. she quit the governorship even though she was elected, she had a responsibility to the people of alaska and she decided she had enough and she was going to cash in. >> my wife would say you have to buy dick cheney's book. i can give it to you right now. she cashed in to make money. it's the most -- the republicans can't understand that, how does a democrat explain that? >> if she decides to run? >> they will agree, she is not going to run. she doesn't want to put up with the rules or regulations sheechl gets to have everything by preventing to be a potential candidate and that will run out. >> she may run, but i predict she will run, but won't run as a traditional candidate. once she said she is not running, she doesn't draw the same thing. she is doing the tease. this is unbelievable. i live in new orleans. she is doing a different tease out in new hampshire. she said she is enjoying this. she is enjoying this and likes to cause a little pain and watching people cause a little pain. there reasons people run for president what i was saying is she was doing a different kind of tease. >> i want everyone in new orleans to be careful. i know you have a lot of rain. we are worried about it and it's likely to stay in close touch for you that's along with the tea party express. several other groups in tampa, florida on monday. september 12th, 8:00 eesh here on cnn. the state department issues a worldwide travel alert for this september 11. we are asking tough questions about the threat of terrorism, al qaeda revenge as we approach the tenth anniversary of the 9/11 attacks. critics of the new dr. martin luther king memorial are saying it might as well be made in china. first a hurricane delayed the ted dedication of the martin luther king,jr. memorial and now it's a controversy. lisa sylvester has been looking into the story and you were reporting on the story yesterday and now you are following up with more reaction. what's going on? >> wolf, maya angelou spoke and said that she doesn't want to make this, but she is happy there is a memorial, but takes issue with one inscription that he said misses the mark. the memorial that was 15 years in the making. the focal point is a 30-foot statue of dr. martin luther king,jr. featured with an inscription. i was a drum major for justice, peace, and righteousness. it comes from a sermon delivered two months before his death. he said there is a natural instinct to be out front, the one being praised. if you have to be recognized be so not for material things, but for service to others. >> if you want to say i was a drum major, say that i was a drum major for justice. say i was a drum major for peace. i was a drum major for righteousness. >> the quote was abbreviated and the source of controversy. "the washington post" blasted monument planners and editorial. the famed poet and author maya angelou said the altered quote makes him look arrogant, the opposite of his message of humility. >> it is taken out of context and loses the intrinsic nature of the man. a man's speech is a mirror of his soul. what dr. king said was if you want to say this, not -- he would never put himself up by saying i wasn't a drum major for justice. >> angelou recognizes it may be too late to change the wording, but feels compelled to speak out. the planners said they cut the quote because they wanted a succinct instripcription for th stone of hope. >> worry when we deal with architecture, the palette that we placed the words on in comparison to the inscription wall, there were physical limitations. >> other questions have been raised like why a memorial like this was made not in the united states, but in china using granite from china and carved by a chinese sculptor. >> people are making a lot of -- mentioning a lot that this was made in china and designed by a chinese sculptor. >> from the out set this project was viewed as an international project. he was an international hero. >> the architect makes no apologies, pleased with the result and the quote carved in stone will remain that way. >> we contacted the king family to see if they had anything to say on this. we didn't hear back, but martin luther king iii told cnn he was impressed with the result of the monument and the statue saying it captured the essence of his father. wolf? >> a lot of people are angry about the statue made in china. thanks very much. >> you are in "the situation room." no new labor on this labor day weekend. casting a shadow over president obama's jobs initiative. a warning about al qaeda to americans around the world over a week from the anniversary of 9/11. tropical storm is aiming at the gulf coast. states of emergency already in effect. we want to welcome our viewers in the united states and around the world. breaking news i'm wolf blitzer and you are in "the situation room" >> this labor day weekend is kicking off with a labor report that shows hiring in the united states ground to a halt in august. the u.s. economy added no jobs last month, leaving unemployment at a dismal 9.1%. it comes less than a week after president obama unveils a plan to try to put americans back to work. our chief correspondent is joining us with more on the numbers. they are bleak right now. what's the reaction from the white house? >> this weekend the president is heading off to camp david and will be putting finishing touches on the proposals and working on the joint session speech. white house officials say the unemployment numbers will not change his jobs plan, but it steps up the intense pressure for the president to deliver in his speech next week. president obama heads off to camp david under a cloud of more bad economic news in a blog post. a white house economist calls the latest figures unacceptably high and this administration official said americans are suffering because of washington politics. >> as soon as the campaign season starts and sets in, there seems to be a different tone. it's unfortunate because we are hurting millions of families. >> the februarys are fodder on the campaign trail. >> there is zero faith in barack obama because he created jobs last month. >> we are in neutral and people are suffering. >> current republican front-runner rick perry insists our country cannot afford four more kbreeyears of economic mis. listen to the president of the aflcio. >> you won't get back to prerecession levels for eight or ten years and that's unacceptable. >> the latest polling shows americans are not feeling too optimistic. 82% believe the economy is in a recession. 68% say it's important for the obama administration to work on creating jobs. only 30% say the priority should be reducing the deficit. reason the president is building so much momentum for the jobs plan he will unveil late next week. >> if enacted this plan will have positive impact on growth and a positive impact on job creation. >> it's a prediction the white house may never see tested. multiple democratic officials confirmed that the president's jobs plan will be written as actual legislation. language that the white house is going to send up to the hill after the president's speech >> so in other words, introducing the big picture and not getting to the legislative details thursday night before the joint session of congress and submit a piece of paper with words on it. >> detailed language to congress saying pass this if you will. >> the budget office will be scoreing it and doing all these things. nothing directly. the first time he submits specific legislation to try to get the jobs recovery going speech experts are warning there is no quick fix to the unemployment crisis. mary snow spoke to some of them and to those hold out the breath. 14 million americans are unemployed right now at one job center, we didn't find the faith that the government can make a difference >> dismal report comes as no surprise to 24-year-old nakia. two years out of college with no permanent job. he came to the jobs center to consider becoming a firefighter. >> next year might be more scarce than what it is now. just jump on something and hold it and learn it and try to like it. >> receipt job fairs like this in atlanta and los angeles underscore the difficulties millions of americans face in fining employment. as the president gets ready to outline his ideas, the economy said don't expect a quick fix from government policy. >> there can be things done. we are talking about education and infrastructure and business regulations that can potentially increase the pace of growth of the united states, but that's something that can happen in five or 10 years after a lot of investment and changes are made. >> he said the economy is close to sliding back into a recession. not all economists said there was a recovery. >> most believe we never left the recession and they are right. >> a former imf economist said it's a good idea to invest as long as the government is not overpaying for them and thinks the economy could be held by addressing personal debt. >> some way are reducing the mortgage debts through restructurings of the payments and through possibly forgiveness in cases with some quid proquo. >> helping shrink personal debt could boost consumption that makes up the lion's share of the economy. nekiah is not holding out hope. >> they are like high school kids they can't make up their mind. back and forth. >> six million americans have been out of work for more than months. they could for roughly 43% of the unemployed. >> good pressing numbers. thanks very much for that. let's dig deeper from candy crowley for the state of the union sunday mornings. you have a lot more on this coming up. you have spoken with economists and they are looking closely at the numbers inside this latest report >> what sets your hair on fire at this point. one of the things that an analyst said is the number of hours worked per week is getting shorter. why is that bad news? the first thing company dos before they lay off is shorten hours it could be more layoffs. it's not that people are laying off, it's that they are not hiring enough what do we need people to do and buy so that companies will hire because of increased demand. what's happening is because there so few jobs and so many people look for them, wages are flat. >> these companies are making huge profits right now and they are not hiring people. that is so frustrating. >> and i have asked about that repeatedly. there was a time three or four months ago like things were getting better they don't want to dial it back. >> the millions of people who were unemployed, we know that. millions more are under employed who accepted a job maybe at half the pay, but they are considered employed and millions have given up. they are not part of the statistics and they ran out of unemployment or hope of finding a job. they are running around and on top of all of that, you and i know these people, there were so many millions who have jobs and so nervous. >> for becomes a chicken and an egg thing. companies want people to buy and before they hire, people don't want to buy something when they are not sure they will keep their jobs it feels like we are in a circular thing driving us into the ground. >> does it make any difference and we had a few days to digest this. if the president makes this proposal before a joint session of congress and going into the oval office and delivered his speech. >> people after discussing these horrible numbers, people hate this kind of thing, but optics, matter in politics. it seems when the president does indeed put himself up there as presidential, i'm the grown up here. they collected this for that reason. we need to work together and it gives him a chance to be the grown up in the room. the oval office certainly is. >> you know as having the big session on monday with a lot of the republican presidentials and talking about who has the better plan for creating jobs. >> we will be watching. thanks very much. the federal agency overseeing fannie mae and freddie mac is suing saying they misrepresented risky mortgage investments. the finance agency is hoping to recover some of the losses that helped put fannie mae and freddie mac into conservatorship in 2008. among those being sued, bank of america, citigroup, goldman sacks and jpmorgan chase. just hours before the jobs numbers came out, president obama decided to back down on tougher new clean air regulations, citing economic reasons. he is ordering the environmental protection agency to withdraw tighter standards for how much ozone can be in the air. they had been attacking the new regulations for weeks as job killers. the regulations would have reduced illnesses and saved 4300 lives a year. very controversial decision by the president. poll surprises as americans speak out about the unemployment crisis. we will talk about that and more with the former labor secretary from the "wall street journal" editorial page and details of the al qaeda travel alert going out to millions of americans around the world. right now as we approach the tenth anniversary of 9/11. states of emergency as tropical storm lee threatens holiday havoc along the gulf coast. hey ! chocolate, vanilla or strawberry ? chocolate ! chocolate it is ! yeah, but i'm new, too. umm... he's new... er... than you. even kids know it's wrong to treat new friends better than old friends. at ally bank, we treat all our customers fairly, with no teaser rates and no minimum deposit to open. it's just the right thing to do. met an old man at the top asked him if he had a secret and the old man stopped and thought and said: free 'cause that's how it ought to be my brother credit 'cause you'll need a loan for one thing or 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to carry out attacks and the terrorist groups plan to coincide with significant dates on the calendar. make sure the radar is finally tuned >> it's one of america's most somber and emotionally sharnlged anniversaries. i know a couple of years ago, they issued a general alert for europe and americans in europe to beware. they led to the worry that something may happen in europe. >> tom fuentes, a former assistant said they are so vague, they have questionable value. both departments say there is no specific threat of a terror attack on the anniversary, but security is tightening and more police and security. they are trying to figure out where they are trying to hit americans. y that are traveling abroad and said don't make yourself look overly american with a college logo or american flag on your clothing. carry your passport or leave a copy with the hotel or someone you trust. leave a copy with your family. have the phone numbers of the local u.s. embassy or consulate with you all the time. if you have a medical condition that requires medication, have about a month's supply. >> intelligence support said at the time of his death, osama bin laden had ideas to attack america on the 10-year anniversary of 9/11. with al qaeda weakened -- >> it's more of a threat. >> i think it is. because of loss of the safe havens, they don't have the ability to plan an attack like it could in the past. >> brian fishman said what al qaeda does instead is encourage individuals to take matters into their own hands that. leads to more attempts like the christmas day bombing almost two years ago, that flight that flew into detroit. >>y that are harder to detect and prevent. >> they're tell us the only way lone wolves are detected is when people observe them doing training for an attack or buying fly supplying for it. very, very hard to detect beforehand. >> thanks very much. let's dig deeper with fran townsend, a member of the cia and homeland security department. just a precaution out of an abundance of caution or is there real suspicion out there? evidence that revenge is a factor for al qaeda and sympathizers and the worldwide american community should be prepared. >> people very worried since the killing of bin laden. the department put out their annual homeland warnings for not the 9/11 anniversary this week. this is an extension of that and we should expect to hear other warnings. i wouldn't be surprised if they were talking and did a warning to state and locals. it is customary now we worry about large gatherings. it's been 10 years and that's significant. in talking to authorities today, they say we feel good about the heightened state of vigilance in the united states. when we look at where are americans more vulnerable, where americans travel. >> the difference between this anniversary and all the other anniversaries of 9/11 is the u.s. killed bin laden and this element of revenge is on the minds of lone wolf sympathizers or others. i have been told there is even greater tconcern. >> that's right, wolf. the u.s. has been effective against al qaeda and in addition to the killing of bin laden, the affiliates and in the arabian peninsula being north africa. we saw the attack by a group that had al qaeda support. we have seen them in the arabian peninsula. the christmas day bombing and the cargo bombing. the affiliates in particular do pose a threat to americans. >> should people cancel their trips around the world? >> tom fuentes said did not advertise you are an american and know where the embassy is and leave an itinerary with loved ones. >> what can president obama do? why armed federal agents raided an iconic u.s. guitar making again. nick robertson goes inside the former home of gadhafi's notorious playboy son. what books were sitting right on his desk. ly save you 15% or more on car insurance? host: do people use smartphones to do dumb things? man 1: send, that is the weekend. app grapgic: yeah dawg! man 2: allow me to crack...the bubbly! man 1: don't mind if i doozy. man 3: is a gentleman with a brostache invited over to this party? man 1: only if he's ready to rock! ♪ sfx: guitar and trumpet jam vo: geico. 15 minutes could save you 15% or more on car insurance. or creates another laptop bag or hires another employee, it's not just good for business -- it's good for the entire community. at bank of america, we know the impact that local businesses have on communities, so we're helping them with advice from local business experts and extending $18 billion in credit last year. that's how we're helping set opportunity in motion. a daunting background for the jobs speech. new numbers show zero job growth if august and a steady and dismal 9.1% unemployment rate across the united states. let's talk about it with a clinton labor secretary. his latest book is aftershock on the economy. a writer for the "wall street journal." i will start with you. what is the single most important thing, one thing you want to hear from the president of the united states say in his address before a joint session ever congress thursday night? >> i want his jobs plan to be big and bold enough and commensurate with the size of the jobs crisis we now have. >> give me an example of how would that satisfy you? what would he have to say? >> i think he would have to call for any total amount of new spending, approximately $500 billion this year. including a wpa and civilian conservation corps and loans to the state government so they don't have to condition laying off workers and local governments as well. many things the federal government can do. infrastructure that is crumbling. enough of an initiative to overcome consumer demand. they are spenting now 70% of the total economy and also businesses are not going to hire consumers that are pulling back. the government has to be proactive in a large and significant way. >> is there any chance republicans would approve a half trillion dollar spending increase this year in. >> close to zero, wolf. bob reisch forgets something. we have a theme in the election. stop the spending and stop the debt. i don't think republicans will go for another program. i think the other program with that idea is look, we did this in 2009 and we had the 830 billion dollar stimulus plan. we had obama care and modification mortgage programs. none seemed to work and what republicans will say is what's different about this than what we tried? the debt didn't create many jobs. >> for the republicans are not going to vote for additional spending, where do you go from there? >> the president has to take it to the public. the only way of overcoming this shortfall in consumer spending and with regard to the private sector businesses is by government being the spender of last resort. as the government has been in previous recessions, certainly was getting us out of the great depression with world war ii. the scale has to be significant. i agree. i don't think republicans are going to go along. the president has that challenge and fight for this. what is the alternative? >> let's get it. from your perspective and you are more of a conservative, what is the single most specific initiative you would like to hear the president outline? >> he did a positive thing where he suspended the epa rules that free up a lost jobs. i would like to see the tax code and starting over. you could get a bipartisan agreement to lower the tax rates that would cause growth and maybe get rid of the loopholes. companies like ge pay taxes. this discussion we are having, the three of us, this is a microcosm of what's going on. i would do the opposite of what bob reisch said. this is the grand canyon difference between the two parties and what to do about the economy. >> here's our latest poll. is the economy in recession. we know economists say six months of growth. 82% say yes. 18% say no. does that number surprise you? >> the economy has not emerged from the recession that began in 2007. the problem and i completely respect steve moore's position, but the problem is it's not really dealing with the essential problem which is on the demand side of the equation. businesses don't need more tax cuts. they are sitting on $2 trillion worth of cash. they are not willing to use it because there no customers to buy the goods and services businesses could provide. >> listen as you think about responding in the same poll. we asked the american people, what's more important for the obama administration? to create jobs or reduce the deficit? 68% said create jobs and 30% said reduce the deficit. >> i agree. the top priority is to create jobs. it's a question of how we do it. we had $4 trillion in canesian spending and we have 9% unemployment rate three years later. i had a piece comparing where the recovery is at this stage where the reagan recovery is. when you mention the recessions in the past, you left out the 81 and 82 recession. we had a booming economy with about this time. 5% or 6% growth. why don't we try what we know works. getting control of spending and cutting taxes. >> the answer is that the recession of 1980 and 81 was different than the recession we just had. the recession we just had emerged with a huge housing bubble. $7.7 trillion to home values vanishing. the only analogy we have is the great depression and the crash of 1929. you can't on the basis of that kind of blow up, you can't expect that one original stimulus will be enough to get people back to work. it was too small. consumer spending dropped much, much larger and faster to a greater extent. >> if you and the president or vice president are changing their story and sold the $830 billion stimulus in 2009, you said by now, the white house said and you remember this, we will have an unemployment rate to create three million jobs and only create 1/3 of jobs. this is not eye program that is working. when you have four trillion in spending, do you believe deficit spending is the solution? most people say hell no. let's getting spending under control. >> if that means cutting state and local and federal jobs and federal programs and state and local teachers and firefighters and everything else, if that cutting is your way of getting more jobs, i don't understand it. it doesn't make sense. >> you have to tie that with the tax reduction and regulation reduction and i think you will get jobs. i really do. >> we seal if the president listens to steve or robert or sort of blends both of these very smart guys's ideas into one. thanks very much. new orleans weathered bigger and badder storms than lee before, but the storm poses a unique threat to cities all along the shore. stand by. we will update you on what's going on. did you wonder what life was like for gadhafi and his family. they found luxury that would have been unimaginable for your average libyan. stay with us. you are in "the situation room." wifi, you've got it. l with a verizon mobile hotspot, you can connect up to 5 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the computer models are all over the place. some bring them in on the edge. that brings them in along the texas coast. the trend has been more towards the louisiana coast. there have been evacuations and voluntary. they are not mandatory evacuations. yes, we are looking at the possibility over towards the panhandle of florida, the rainfall could be heavy at times there have been evacuation orders and tornado warnings issues. not a tornado watch, but a warning. meteorologists or radar deteched circulation. that's the thing we are looking at over 24 to 48 hours, but really in 72 hours, look at what happens. it kind of jogs along the coast and makes its way towards the east and then we think eventually it will kind across the southeast. this may have a fen official effect. it has a dry southeast >> thanks very, very much. we are watching katia in the atlantic ocean as well more storms may be on the way, but they haven't recovered yet. a half million people from north carolina to maine are sitting in the dark waiting for hour to be restored. that's an improvement when 6.4 million people were sitting in the dark. they worry about the agency's disaster relief fund which is nearly depleted the company's ceo said washington is to blame. they try to snuff out support for the former leader and they undulg their every desire getty to libya where we are following reports that gadhafi's son is boasting that progadhafi forces will retake the capital city of tripoli. the senior international correspondent is in tripoli for us right now. ben is joining us live. what are you hearing in the libyan capital >> we are hearing a lot of gunfire. people came out by the thousands and possibly tens of thousands to what used to be known as green square which has been renamed as marter square where they are celebrating the kaufter from tripoli at least of gadhafi as far as the claims coming via the spokesman, there will be a sort of counter offensive to retake tripoli. you might say that they are smoking crack. clearly the capital is under the control of the rebel forces. they do have the loyalists hemmed in in a few areas which is the birth place of gadhafi the south of libya and certainly it's clear that the tide is turned. the rebels do control the capital and the east part of the country and most of the coast. gadhafi's forces at this point appear to be on the run. >> you just returned to tripoli. give us an sbins account, new eyes. what's it like in tripoli right now? >> it's really a mixed bag. coming in, we saw hundreds of cars lined up to get fuel. there is a shortage of fuel and there is problems with the water supply. power and medicine. there shortages here that are making the life of ordinary libyans very difficult. at the same time there is a real joy, ecstasy so to speak that gadhafi's rule that yesterday would have marked the 42nd anniversary has come to an end. it appears that almost all the people in the streets of tripoli are more than overjoyed by the fact that gadhafi is no longer their leader. they realize of course that life is difficult. this is a transition from one form of rule to what is not all together clear. you cannot deny the fact listening to this gunfire in the background that most libyans are more than happy that gadhafi is no longer their leader. >> he was in tunisia when that regime went down later in egypt. we will stay in close touch. thanks very, very much. on the scene as he always is gadhafi's final downfall was swift. the vanishing act gave us a peek at the life of a tyrant and his family nick robertson had a chance to see for himself when he returned and ventured into the home of gadhafi's son. a soccer player and soldier and a notorious playboy. >> this is his former office building. i have been in here to meet him before. the door is heavily bolted. they can't get in somebody smashed their way through the window of the building. take a look. we used to meet him in a room up the stairs. it was an office study so of relacking type area. a lost these rooms here were very ornate he had a football or soccer trophy from his days playing soccer for an italian team here on this bar the trophy is missing. there was a wide screen tv. up on the wall here in here, the dinner table is still laid for dinner as if guests were expected. the napkins are still on the plates. a look at the plates. this is gold finish and the ornate glasses. like he was planning to come back. this desk provides an amazing insight into what gadhafi was reading and perhaps thinking at the time. the art of war for executives. this one. this is perhaps the most telling. killing hitler this is sitting on gadhafi's guest, perhaps the most recent book he was reading the killing of hitler. this is important to what's happening right now. gadhafi had a document that explains the relationships between various tribes between gadhafi and other tribes in the country this is what he was reading in the last moments before he ran away and this is important to them. they need to keep the tribes on their side. the council needs to win them away. that seeps to be why. critical to their survival. >> nick robertson, fascinating material for us. our reporters in libya are doing an amazing job. i think you will agree, all of them not only nick, but ben and everyone in libya right now fred is there for us as well. we are really proud of the work they have done and will continue to do for all of our viewers here in the united states and around the world. >> gibb guitars raided not once, but twice by armed federal agents here in the united states. details of what was seize and what researchers discovered that can make dormant follicles grow hair again. check it out. 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[ engine revs, tires screech ] mom? ♪ woohoo! yes! ♪ it was the best day ♪ it was the best day yeah! ♪ it was the best day ♪ because of you [echoing] we make a great pair. huh? progressive and the great outdoors. we make a great pair. right, totally. uh... that's what i was thinking. hmm. covering the things that make the outdoors great. now that's progressive. call or click today. mochb toring some of the other top stories including federal prosecutors taking another swing at wroroger cleme. >> that's right, prosecutors struck out in their first attempt to convict the former pitcher, but a second trial is set to begin april 17th. clemons is accused of lie to go congress during its investigation of steroid use in baseball. a judge declared a mistrial in july after prosecutors showed inadmissible evidence in court. clemens denies using performance enhancing drugs while in the major leagues. president barack obama's helicopter trip to camp david had an unsxukted detour trip. it diverted to an alternate landing site. he took a motorcade the rest of the way. the white house said stormy weather led to the last minute decision. and could stem cells hold the key to reversing baldness? yale researchers believe they just might. in their studies, scientists found stem cells can reactivate dormant follow coiclefollicles. the study worked in mice but no evidence it will help men, too. and hurricane irene has claimed a tree linked to the kennedy family. the oak was knocked over by last weekend's storm. it was estimated to be 220 years old. its it shaded an area near the graves of the kennedy family members. president kennedy is said to have remarked during a 1963 visit there that a view which you included the tree was so magnificent that khe could stay there forever. what a loss. >> stuff happens, i guess. sad. all right, lisa, thank you. >> the feds say gibson guitars has to face the music. but the company isn't playing along and says the government isn't playing fair. 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. you can talk to a real person 24/7. possibilities are everywhere. multiply them with the premier rewards gold card from american express. with triple membership rewards points on airfare, double on gas, double on groceries, and a single point on everthing else, it's a fast way to earn more every day. plus, you can earn 10,000 bonus points. and the annual fee the first year is on us. call 800.axp.gold to apply. at liberty mutual, we know how much you count on your car and how much the people in your life count on you. that's why we offer accident forgiveness, man: good job. where your price won't increase due to your first accident. we also offer a hassle-free lifetime repair guarantee, where the repairs made on your car are guaranteed for life or they're on us. these are just two of the valuable features you can expect from liberty mutual. plus, when you insure both your home and car with us, it could save you time and money. at liberty mutual, we help you move on with your life. so get the insurance responsible drivers like you deserve. looks really good. call us at... or visit your local liberty mutual office, where an agent can help you find the policy that's right for you. liberty mutual insurance. responsibility. what's your policy? here in the united states, gibson has been making guitars for more than 100 years but it's facing a new threat from the federal government. the issue is rare wood gibson uses to build its one of a kind guitars. david mattingly explaining what's at stake and why the ceo is fewer krurious with the feds. >> reporter: it's a made in america product at odds with uncle sam over how u.s. law is enforced. ♪ he makes guitars that maybe america sound cool. but gibson's ceo is being ordered to change his tune. >> sounds almost ironic that you're playing the blues. >> i got the blues. >> reporter: that's because in late august, armed federal agents raided his tennessee factories for the second time in two years, alleging the illegal immore tags of rare protected wood. in this case ebony and rose wood from india. an affidavit filed by the u.s. fish and wildlife service allege the gibson falsely labeled the wood shipment to sound it legal and omitted the company's name at the recipient, but so far, no charges have been filed. it almost sounds like this company was engaged in smuggling these raw materials in to the country. >> well, we were not engaged in smuggling. we have been buying finger board stock on a regular basis from india for 17 years. >> reporter: on the neck of a guitar, it's prized for its look and durability, but it's subject to a law to protect animal parts and plants. he says the finger boards begin so that imported from india were confiscated as illegal wood by the federal government. >> the law says that if a guitar or an instrument of any kind crosses a border, you have to know the species of wood every component is made of and where it came from. >> reporter: if this is true, could hundreds of international stars like paul mccartney and bee bee king risk seeing their gibsons confiscated at the border? >> michelle gibson gave a gibson guitar to the wife of the president -- or prime minister of france. just a year ago. >> reporter: the first lady may have broken the law? >> yes 37. >> reporter: the lacey act does give federal agents broad authority on to pursue smugglers, but if you own a begin so that, don't worry. when we askedclarification, they said we target corporations and individuals who are removing protected species from the wild and making a profit by trafficking in them. and right now in spite of his strong claim of innocence, gibson is a target. >> nightmare. it's a