Transcripts For CNNW The Situation Room With Wolf Blitzer 20110919

you're looking at live picture from the united nations. where all eyes right now are on this year's general assembly. president obama and the first lady, michele bachmann, expected to arrive in new york only minutes from now. at issue for the united states and much of the world this week, a showdown over the middle east. the palestinian authority president vowing to submit a formal application for statehood to the united nation's security council. it could have serious implications for the u.s. relationships with iz real and the arab world. much more on this part of the story coming up. let's get to the president's plan it slash trillions of dollars through the national debt. a plan he says will do the right thing. >> either we ask the wealthiest americanes it pay their fair share of taxes or asking seniors to pay more thor medicare. we can't afford do both. either we gut education and medical research or we've got to reform the tax code so that most profitable corporations have to give up took loop holes that others don't get. we can't afford to do both. this is not class warfare. it's math. >> the president is proposing roughly $3 trillion in savings which includes $1.5 trillion in new taxes primarily on the wealthiest americans. as well as tax surcharge on millionaires named for the business giant warren buffett who says the rich around paying enough in taxes. also included, $580 billion in mandatory cuts to programs like medicare and medicaid. another 1.1 trillion in savings that will come from winding down wars in iraq and afghanistan. the president's plan doesn't include changes to social security or eligibility age, both of which are fiercely oppose he by democrats and many republicans as well. meanwhiling with republicanes in the battle ground state of pennsylvania are thinking of changing why electoral votes are awarded in the presidential election. it would be a dramatic move that could hurt president obama in 2012 or potentially back fire on the gop. i'm going to get to much more on that part of the story coming up. but i want republican reaction to what's coming up right now. republican reaction to the president's latest deficit reduction initiative. our congressional correspondent kate bolduan is standing by with that. kate? >> hi, wolf. top republicans today calling the president's proposal class warfare. that is just one way house speaker john boehner described the president's deficit reduction plan as he dismissed it today. >> as quickly as the president laid out his proposal for reducing the country's def sitsz, congressional republicans were lining up to knock it down. >> i understand that it's easier to go out there and talk about the taxing of billion airs. if they want to pay more, there is a special provision in the tax code for them to write a check to the federal government. >> house speaker john boehner slammed the president's call for the so-called super committee to approve $1.5 trillion in tax increases. >> at a time when spending is out of control, giving the federal government nor money is like giving a cocaine addict more cocaine. we've got to get spending under control. the ray washington i to raise revenues is to get our economy moving again and get more americans off of unemployment, off of food stamps and back doing real work. >> adding to the gop push back, statement after statement monday from house and senate republicans, criticize sizing the president's pitch. the top republican in the senate, mitch mcconnell saying, veto threats, a massesive tax hike, phantom savings and punting on entitle many reform is not a recipe for economic or job growth or even menningful deficit reduction. >> it is a strategy to cut the deficit by more than $4 trillion over the next decade and to do it fairly. >> president obama seemed to anticipate the sharp criticism from the republican side of the aisle. turning his focus directly on the house spaem speaker who just days earlier made clear tax hikes are still not an option. >> so the speaker says, we can't have it my way or the highway and then, basically says, my way. >> or the highway. >> that's not smart. it's not right. >> now it seems both men, president obama and house speaker john boehner, have both drawn lines in the sand. at the same time calling on the other to not do just that. it's clear that war of words will no doubt continue. but real pressure now wolf is on the so-called super committee. these members have to come up with a deficit reduction plan with more than a trillion in savings, that will get majority support this the committee as well as in the congress and they have to do it soon if today is any signal. that job just got harder. wolf? >> they have to do it by thanksgiving. by thanksgiving break the the end of november so they don't have a lot of time either to do all of that. very quickly, harry reid, senate majority leader, is it true he doesn't even want to take up the president's 500 million jobs bill. given the urgency of the situation, i was a little surprised to hear that. what did they say? >> there is a lot of comment up here about scheduling. harry reid is looking at taking up the measure but says there are concerns that the senate needs to take up, having to do with some issues they dealt with last week. but they are looking at something both democrats and republican hes support very much and want to see, the trade bills. both sides say it is urgent that congress deals with this in a very short matter. so we know that senate majority leader said there are many items lining up that they need to take on. i think he is trying to dell with that as well as politics of the day that you have to deal with everyday up here, wolf. >> not an easy chore by my means. kate, thanks very much. here is a question, is president obama right to suggest that the current taxes isn't fair to all-americans. . this plan is known as the buffet rule, lisa? >> hi, wolf. warren buffet says the mega wealthy pay a lower rate of taxes than any of the people working for them. this is something that president obama picked up on saying it is a basic issue of fairness. >> call it the warren buffet rule. warren buf et seaing his secretary shouldn't pay more in taxes than he does. but is it true? do millionaires and billion airs in this country pay a lower tax rate than middle class families? it it depends. let's say you have sue. making a nice salary of $1 million putting her in the 35% tax bracket. jill makes $50,000 a year or 25% tax bracket. between those two sue is making more and paying more in taxes but now let's add in rita. she payes a lower tax rate than jew and jill of 15% on dividends and capital gains. that's what president obama wants to change. >> that's t is wrong that a teacher or nurse or construction worker who earns $50,000 should pay higher tax rates than somebody pulling in $50 million. the. >> the reality is that some americans did not pay 2011. the true burden of who pays the highest share of taxes in the united states is really the upper middle class and mod moderately wealthy families. according to the irs, people making between 100 and $24u7b,000 a year pay 25% of the income taxes. people making between 200 and $500,000 a year pay 20%. that's almost half of the taxes combined but that's not to say the rich get off scot-free. >> there are roughly 24 '035,000 millionaires in america. they paid $177 billion in inkuks taxes in 2009. that's an average tax payment of over $750,000 each. >> how much money would the president's tax proposal on millionaires raise for the government and what would it look like? the the obama administration is leaving those questions for congress. >> we're not going to give congress a detailed proposal for how to meet that specific principle now. there are a lot of ways to do that. but it should be the basic foundation of tax reform. and we are going it fight to make sure that's part of what congress considers and ultimately delivers. >> the republicans argue the reason the capital gains tax rate is 15% is because it is supposed to encourage investment and savings. the last thing you do is create a dissent sentive. for wealthy individuals who have their own corporations, essentially warren buffets of the world, their company's income has been taxed at 35% rate then on top of that is the capital gains. of course, wolf, democrats have a very different perspective and that's where the fault line is. wolf? >> they certainly do. this debate is only just beginning. we have heard a lot but we will hear more. making big waves on the campaign trail ease well as michele bachmann says, i'm quoting here now, if warren buffet believes he doesn't pay enough taxes then he should write a check today to the u.s. treasury. rick perry calls it, and i'm quoting him, bait and switch strategy that penalizes investment. mitt romney says higher taxes means fewer jobs. it's that simple. we will have much more from michele bachmann. she will be my guest here in "the situation room." that's coming up in the next hour. coming up, jack cafferty, he is here in new york. jack? >> texas governor rick perry loves to talk about all the jobs he created in texas. but that's only part of the stroir and it is a bit misleading at that. the other part of the perry job story is that nearly one in five texans in the state where the governor lives, live below the poverty line. and that poverty rate is growing fastener texas than the national average. cnn's money has a story that texas ranks six in terms of the people living in poverty. both demjanj a lot of families live a shanty housing, no electricity, no indoor plumbing. this is 2011. also, the poor in texas don't get much help. the state has one of lowest rates of spending on its citizens per capita and it has the highest share of those without health insurance. relatively few collect food stamps even though many more equal fight for them. receiving cash assistance is difficult. experts say part of the reason peoplent to seek help in texas is because of the mentality down there that you ought to pick yourself up by your own boot straps. for his part, go of nor perry says creating jobs is the best way it help his citizens. it is true. texas created 40% of all of the job added in the country the last two years but a lost new jobs are low-paying ones. more than half a million workers in last year were paid at or below minimum wage of 7.25 an hour. that's just 15,000 a year for someone working full-time. texas has the highest percentage of minimum wage workers in the country bp tying mississippi at nearly 10%. with jobs and the economy sure to be issue one during the campaign next year, here's the question. how much will it hurt rick perry than nearly one in five texans is living in poverty? go to cnn/cafferty. or go to our post on situation room's facebook page. wolf? >> all right, jack, thanks very much. good question. by the way, i will have a chance to ask the former president of the united states, bill clinton, about all of this, including u.s. poverty, president's deficit plan. palestinian bid for statehood here at the united nations, tomorrow here in the situation room. i'll be interviewing the former president, bill clinton. mean piem whooil, growing concern the president's debt plan will lead to more political gridlock in washington. just ahead, my interview with one of the president's top economic advisors, gene sperling sb stand by by live. plus, entering a third day, should new yorkers be worried at all about what is going on? i'll ask the new york city police commissioner, ray kelly. he will join us live, here in new york as well. president obama unveiling his debt plan earlier in the day. just as protests here in new york on wall street enter a third day. hundreds turned out for the so-called occupy wall street demonstration, an effort targeting what they describe as corporate greed. let's get more on the president's latest debt plan. the director of president's economic council gene sperling. thanks very much for coming in. lots to discuss, not a whole lot of time. let's go right to the issue of social security. a lot of reform ideas. but didn't touch social security at all, why? >> the president made clear in his remarks today that he does consider one of our great long-term challenges to protect the sol solvency of social security and make sure it is there, a progressive rock solid benefits to come. but long-term solvency over 57 years within, he wants to work with democrats and republicans. this plan is about making sure that as we have a powerful plan for job creation and growth, with the american jobs act, we also have a plan for long-term confidence we are getting our fiscal house in order. living within our means and bringing our debt down is a percentage of our economy. that's what this plan does together. that's what our economy needs at this moment. >> republicans saying the president punted effectively as well when it comes to medicare and medicaid. the other major entitlement expenditures which amount it a huge percentage of the u.s. annual budget that the recommendations of the president made were relatively modest. i would like you to respond to that criticism which is already coming in. >> i don't think th think that many people would think that pr posing $320 billion of medicare and medicaid savings in the next ten years is modest. it is significant but let's be clear. we are trying to save the medicare as we know it. not end medicare as we know it. we are put prg grams that will reduce waste, that will reduce unnecessary costs we do not need. the president showed a lot of political courage and being willing to say, that those under 60, new beneficiaries and they retire, they might have to face slightly better incentives to make sure they're not overusing medicare costs. so i think it's's comprehensive plan, 320 billion, specifics, details. i think is very important and it will increase the solvency, life of medicare. >> yeah, i guess what they are complaining about is no specific recommendations to raise the retirement age for eligibility and medicare from 65 to 67 or change their cost of living index to make -- to save somebody that way or means testing for that matter. in other words, richer resip yets get less than middle class recipients. you've heard those criticisms as well. >> that's juflt saying we didn't do one twofr their ideas. it doesn't mean the president doesn't have a specific and details and courageous plan. he does kwb in this plan, ask those who are in the top three or four percent, medicare beneficiaries, couples making over $170,000, they have to pay pour more for their medicare in the future. he was clear on that. he said that people in my age, when we get in medicare, we have to pay extra if we want a policy that will cover all our costs and encourage overutilization. those are very specific plans. and i have never seen any democratic president or republican president for that matter talk about at the level of detail he did. so just because he didn't agree with some of their proposals to maybe turn medicare into a voucher or raise retirement to age 67 does not mean he did not put forward a very strong plan that is going to get a lot of criticism from other corners because he is specific in detail. but the president says no sacred cows. he was willing to do savings in medicare just as he was willing to call for months most well off to pay their fair share as part after shared responsibility and bring our deficit down as we create jobs in the short term. >> the president did make a very dramatic veto threat in his remarks today in the rose garden saying he would veto anything. i want you to elaborate for viewers out there, precisely what he wasn't when he said would he veto any cuts or any changes that entitlement spending, medicare, medicaid unless there were appropriate increases in taxes on wealthy americans. but explain the nature of this veto threat. >> always number one principle is shared sacrifice and shared responsibility if we have shared prosperity. so, the president again took on a lot of his own supporters in putting forward adjustments to medicare for future beneficiaries. he was willing to do that because he was was part after responsible package. what he was making clear is that he is not going to make adjustments to medicare beneficiaries if it is not part after package that asks the largest corporations and most well off americans to be part of this deal. so somebody comes in and says, we're just going to cut benefits from medicare, we will just make those adjustments and then exchanges and potential sacrifices from seniors or the middle class and not sat same time ask the most well off to do their share. that's not acceptable. he will veto that. he is also making clear as he us a have that we need a grand compromise. we have shared sacrifice. and i think the president led on this and i will say the american public is overwhelmingly with him. they don believe we should tame our debt on the backs of the seniors, middle class and poor. they think there should be shared sacrifice. that does include asking those more well off, making $1 million or more, to pay their fair share. we will all benefit together if we can jump-start jobs and have a long-term plan to bring down our deficit. >> we are 0u9 of time. this does set the stage potentially for more gridlock in washington. giving republicans especially if the house their adamant refuse yl for any tax crease at all. >> let's just remember, speaker of the house had been willing to put revenue on the table. negotiationes with the president. over in the senate there are many republicans who have been willing to be part of the gang of six process. willing to put revenues on the table. let's just be clear. the president represents the main stream who want a balanced plan that includes higher revenue and includes a spend willing constraints. if there are some who don't want to do that, it is them thp pe who do not represent the spirit of compromise that the president is trying -- and i think the public is asking for. >> general sperling from white house, gene, thanks very much. >> thank you. >> republican presidential candidate see a golden opportunity to get millions of votes they might not normally get. we will discuss what is going on in our strate in. stay with us. you're in "the situation room." defiant. ♪ the 42 mile per gallon ct hybrid from lexus. the most fuel-efficient luxury car available. ♪ and just what you need to forge your own path. ♪ and see katie before she goes home. 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[ male announcer ] progresso. 40 soups 100 calories or less. president obama and other world leaders are coming to new york for the 66th annual united nations general assembly. secretary of the state, hillary clinton, is here in new york. she is working furiously to try to avoid a high stakes international clash, international clash i should say, over palestinian statehood. the palestinian authority president said today he will submit an application for statehood to the united nations security council on friday. joinsing us here in new york is our senior united nation's correspondent richard roth. richard, walk us through as the stakes are really enormous right now, what we expect will happen in the coming days. >> we got a big clue today that meeting you just saw of secretary-general with the leader of the palestinians. according to the u.n., abass will submit for the u.n. friday h which is win the palestinians plan to speak. so nothing is expected unless there is dramatic development until friday. he seems intend ease told the u.n. in effect going to the security council where the united states veto does loom. the british foreign secretary today saying maybe you don't have the nine veets voets that you need pch niep yes votes and the u.s. would love to avoid putting the vietnam why hammer down and inflating palestinians. we won't see action until friday. as secretary of state, hillary clinton, said a moment ago, a lot of pressure son the way heading for the palestinians. >> are there nine members of the u.n. security council out of 15 -- nine, you said, right? >> you need nine yes votes. >> are there nine -- effectively that tells the palestinians, no formal recognition of a palestinian state. are there nine members of the security council? i know the united states will. but are there nine that will do that? >> it is very hazy. not all these countries have come out and said we want a palestinian state. they may be supportive of a palestinian state. they know what is diplomatic hot potato is t is. the u.s. can lean on them, hasn't always worked. that's what is happening. >> you will stay in touch throughout the week. the stakes are enormous. clearly if the u.s. does go ahead in the security council and vetoes such a resolution, there could be a very angry response throughout north africa, middle east, throughout the arab world. in fact much of the world and obama admin stigs. very worried about that right now. the president, by the way, just landing. the administration's commitment to israel though at the same time is being questioned out there on the political campaign trail. as republican presidential candidates try to win over pro israeli voters. jim acosta is picking up for us. jim? >> they are going soft on israel and would like to use it as a wedge to crack open a block that usually sides with democrats. >> when republicans celebrated last week's special election victory in a heavily jewish and normally democratic congressional district in new york. >> voters in new york sure got the message. >> rick perry was also cheering. he, like many republicans, saw a golden opportunity. the prospect attracting millions of jewish voters. who may be questioning the president's handling of israel. >> there is elas tisity. there are those who think that there are missteps, hasn't shown enough warmth toward israel. >> using tough talk for this week's palestinian attempt to seek statehood. at the united nations general assembly. in an ad to the wall street journal perry wrote, errors by the obama administration have encouraged the palestinians to take backward steps away from peace. the gop front runner is no stranger to israel. >> many i hope most americans realize that there's a part of the world where children are still being victimized. >> he is one of many leaders republicans to make trips to the jewish state. part of what some in washington call the israel primary. romney, huckabee and palin all made pilgrimages this year. when president obama proposed last spring that israel give up land and return to borders dating back to 1967 with its neighbors. >> it should be based on the 1967 lines with mutually agreed swaps so that secure and recognized borders are established for both states. >> huckabee pounced on his tv show. >> shocking betrayal of israel all but told them that the one friend they could count on decided it take sides with the terrorists. >> for republicans it appeals to christian con serves tifs seeing themselves as defenders of the holy land. >> it is very clear it say that day america turns its back on israel is, god will turn its back on america. >> president obama won nearly 80% of the jewish vote in 2008. according to the latest poll that support is down to 54%. but the drop mirrors decline among all voters. the white house maintains its support for israel is rock solid. >> the united states is absolutely committed to the security of israel. >> rick perry is expected to sound off once again on the palestinian issue tomorrow. he is traveling to new york to meet with jewish leaders. he is going to be taking this race for israel primary to a big international stage at a delicate time for mideast peace. wolf? >> it is a sensitive moment indeed. all right, thanks very much, jim, for that. >> i will get a chance to speak about this and a lot more with the formter president of the united states. bill clinton will talk about statehood and much more tomorrow, right here in the situation room. he is hosting his clinton global initiative during week in new york as well. just days after a horrific crash at an air show in nevada, investigators are hoping that new evidence will show them what happens. we have details on what they already found. after making headlines a year ago, the staff of the controversy islamic center near ground zero says it's taking a huge step forward. what they're doing less than 48 hours from now. we will have that and much more right here in the situation room. ♪ [ male announcer ] we're not employers or employees. not white collar or blue collar or no collars. we are business in america. and every day we awake to the same challenges. but at prudential we're helping companies everywhere find new solutions to manage risk, capital and employee benefits, so american business can get on with business. ♪ delivering mail, medicine and packages. yet they're closing thousands of offices, slashing service, and want to lay off over 100,000 workers. the postal service is recording financial losses, but not for reasons you might think. the problem ? a burden no other agency or company bears. a 2006 law that drains 5 billion a year from post-office revenue while the postal service is forced to overpay billions more into federal accounts. congress created this problem, and congress can fix it. we are getting new information into "the situation room." just now on the fate after death row inmate in georgia. lisa sylvester is monitoring that and other top stories in the situation room. what's the latest, lisa? >> the fate of this man is in the hands after georgia parole board np in 48 hours davis is set to die by reej al injectile for the death after police officer 22 years ago. since his conviction, in 1991, though, several witnesses have rekaentd or contradicted their testimony. and his execution has been delayed three times. at least three people are dead after a 5.8 magnitude earthquake rattled gaut maula this afternoon. a spokesperson for the president says people are buried in the rubble. the u.s. geological survey says the quake struck about 32 miles southeast of the capitol. the death toll is rising after an air show crash in nevada. a tenth person died after a warplane plummeted into the crowd friday. ntsb says the plane had data and video ror recorders in it and they found several memory cards in the wreckage. one week after the unveiling of the world trade center memorial in new york, another grand opening is happening just a few blocks away and it is stirring controversy. the first part of a planned islamic center is said to open this week with an art exhibit. wolf? >> lisa, thank you. millionaires and billion airs are paying smaller tax rate than their secretaries. that's the message president obama's debt plan -- is it any political strategy right to you. stand by, we'll discuss. plans indecision in the white house. we have details of an explosive new book. uh, it is, yeah, it's a chevy volt. so what are you doing at a gas station? well it still takes gas to go farther. but you're not getting gas. true. not this time. uh, don't have to gas up very often. so you have to go to the bathroom? no. yes you do. thought these were electric? yes, it's a uh, a chevy volt. so what are you doing at a gas station? whether it can be done safely and responsibly. at exxonmobil we know the answer is yes. when we design any well, the groundwater's protected by multiple layers of steel and cement. most wells are over a mile and a half deep so there's a tremendous amount of protective rock between the fracking operation and the groundwater. natural gas is critical to our future. at exxonmobil we recognize the challenges and how important it is to do this right. ♪ got so many scratches and scars ♪ ♪ maybe time can mend us together again ♪ ♪ it's not what we've done but how far we've come ♪ ♪ i know that we will recover [ male announcer ] here when you need us most. strategy session. joining us, republican strategist mary matalin and rolland martin. mary, forget about the substance, economic substance for a moment. let's talk about the politics of it. is there a strategy saying there should be a buffet rule that millionaires don't pay a lower tax rate than their secretaries. >> well, it's a class warfare message. and i believe the white house has not only signals, they said they need to reactivate, reenergize their base. is it a winning strategy? they have to add on to so it probably does activate their base. but as mark cline said, that warfare reelection strategy has not worked, did not work for kerry or gore before him or mondale way back when. the only strategy working for democrats in the 207b8g century since fdr is the one that president clinton did for his reelection which is to pull away from class warfare language. so if they are to be believed it might be good short term base politics but not good long-term reelection strategy. >> rolland, you agree? >> first of all, quoting mark kan, that's the last person anybody should quote with a winning strategy. ask hillary clinton how that went. bottom line is here, new cnn poll is very clear when it comes to this. should deficit reduction bill increase taxes on businesses and mir income americans? 63% in this poll say yes. the problem you have is you have republicanes who say forget anything else, we simply want everything we desire and not you. the president made the effort when it came through the debt ceiling debate and they stilled no. this is smart move by the president and again, polling is there but also, you have americans saying, wait a minute, stop trying to say cut, cut, cut to the poor. defend fat cats. absolutely a mart political move. >> polls do show, mary, that this issue of raising taxes for the rich eliminating some of the corporate tax breaks for a big corporations, on these issues, the overwhelming majority of american public is with the president and democrats as owe foesd the republicans. >> if you ask the same republican, particularly if you ask independents, would you want to raise taxes on job creators, those numbers would flip. if you ask, would you like it penalize people like martin, they say absolutely not. this is the same policies the president opposed nine months ago because they would hurt the recovery. we are in less of a recovery than when we previously opposed raising taxes. you don't raise taxes in a recession. it is political message. i get it. but it is very bad economic policy and it's not going to go anywhere. >> rolland, will this latest proposal that the president put forward today, his jobs creation plan last week, will this solidify his base? get the nervous democrats on his left back in the fold, if you will? >> first of all, part of the problem is they are always nervous nellies. they have no ideas when it comes to unification. there is no doubt it'll help the base. also wolf, this is the most important, this will resonate i believe with independents. i think the president and his administration should do something different. don't go to just ohio or florida or pennsylvania. the census bureau talk about the ten poorest states. take the message to mississippi, alabama, louisiana, west virginia, take to those states. alaska. the bottom ten poor states. tell those people, defend the rich in the face of the very people who keep putting you in office. be more agrees wif that messaging, and i think he will fwan traction. >> come on down. rolland, come on down. >> it is a poor state, louisiana. >> -- know who is providing jobs, if they want to tax the job creators out of existence because a lot of obama's policies have done that in this state. then they say no. if you think he will get support in these states, come on down. >> i'm sure the poor in louisiana are sitting here saying, to the people keep sitting here cutting their jobs, yeah we will keep supporting you. i say be aggressive and challenge them on their turf. you have no plan when it comes to the poor np no plan with the middle class. what you are using is pole-driven phrases like class warfare. like job-killing regulations or to appeal to the very same people. >> a bold proposal wab rolland. i wouldn't be surprise if they follow your advice -- >> they should. they should. >> thanks very much, mary, rolland, good to have you both here in the situation room. here is another question. how much will it hurt rick perry that nearly one in five texans are living in poverty. that's jack's question. and could there be a break out in new york over the struggling economy? the city's police commissioner is standing by to join us live. 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[ engine revving ] when you pursue industry-leading safety, you don't just engineer breakthroughs in simulation technology, you engineer amazing. ♪ you have options. you can attend our online program or if you prefer a classroom experience... look no further than your own neighborhood. we have over 200 campuses and learning centers around the country. where you can attend classes, career fairs and meet with students and faculty. today, you can go to school online, on-campus, or both. explore your options at phoenix.edu. ♪ jack cafferty's back with the cafferty file. >> the question is how much will it hurt governor rick perry of texas that nearly one in five texa texans is living in poverty. tom says looks like perry is cooking the books to try to look good. he apparently thinks 20% in poverty is okay. i believe it's gotten worse. perry seems to want to reduce the rest of country to the 20% poverty level he's worked so hard to create here. perry is nothing more than george w. bush with some personality. laura writes, you could afford to live in texas on lower wages. that's what the new york/d.c. media don't understand. you may not have noticed, but the bureau of labor statistics breaks down the unemployment by educational attainment. the unemployment rate for people with no high schooldy proceed in a, 14.3%. unemployment rate for people with a four year college degree, 4.3%. for which group do you think jobs immediajob need to be created? the jobs are more of the lower paying jobs and in texas, they're creating the jobs that are needed. and rick perry is responsible for only one state. how much does it hurt obama that the percentage of americans living in poverty last year rose to the highest level since 1993? shannon writes i doubt it will hurt perry because they'll believe anything that he feeds to them. however, it will hurt him big time in the general election because independents like myself pay close attention to things like that. and john in alabama, let's do the math. 20% of the population of texas lives below the poverty line. one in pour texans has no health insurance. burned to the ground. i think he want to improve the lives of texans before moving on to bigger challenges. read my blog or posts on the facebook page. wolf. >> thanks, jack. meanwhile a possible rules change in a key battleground state. how that potentially could hurt president obama's rehaeks effort. we have new information for you. plus new details on an explosive new book which paints a picture of in-fighting insubordination inside the obama house. not white collar or blue collar or no collars. we are business in america. and every day we awake to the same challenges. but at prudential we're helping companies everywhere find new solutions to manage risk, capital and employee benefits, so american business can get on with business. ♪ my son and i never missed opening day. but with copd making it hard to breathe, i thought those days might be over. so my doctor prescribed symbicort. it helps significantly improve my lung function, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. with symbicort, today i'm breathing better, and that means... game on! symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking it. 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[ male announcer ] if you can't afford your medication, astrazeneca may be able to help. i tell you what i can spend. i do my best to make it work. i'm back on the road safely. and i saved you money on brakes. that's personal pricing. republicans in the battleground state of pennsylvania are proposing changes which would be a dramatic move to try to hurt president obama's re-election chances in 2012, potentially, though, they could backfire on the republicans. tom foreman is joining us to explain. >> in a nutshell, what they're saying is that they want to change their state from a winner take all system in the electoral college to dividing it up by congressional districts. only nebraska and maine do that. but that could have a real impact. look at the last election. think about 2008. barack obama won 365, john mccain 173. but let's look more specifically in pennsylvania. there president obama because it was a winner take all system got all 21 electoral votes. john mccain received 0. they now have 20 electoral votes in pennsylvania after the census. this is what happened. look what happened if you break it down by congressional district. then you you get a different picture. john mccain won a lot of the real estate in this battleground state, but barack obama won these big population centers. under this proposal by republicans up there, which the governor likes, as well, they would say we're going to give one eelectoral vote for each district that he or she win, plus two additional votes for whichever candidate wins the popular vote in the state. so under that equation, instead of barack obama getting 21 votes, what would have happened is you would have had john mccain getting 10 electoral votes for what he won, barack obama getting nine for the districts he won, then an additional would for in-withing t winning the popular vote, a net gain of one. you can see what a huge impact this would make. in fact if florida had this system back in 2000, al gore would have won the electoral vote and won the nation. it's creating a big stir among democrats and republicans because doing this some would say would make pennsylvania no longer a big battleground state because it would be so balanced. >> tom foreman, thank you. and you're in the situation room. happening now, an explosive new book paints a very unflattering picture of president obama and his top aides as they grapple with the u.s. economic crisis. and now the white house is accusing the author of, quote, plagiarism. also, my one-on-one interview with republican presidential hopeful michele bachmann. you'll find out her response to republican strategists and cnn could not connectic contributor claim that the ppv issue is making her look batty. and some officials fear eventual all rioting, we'lling a says what's going on in new york city. the police commissioner, ray kelly, he's here live this hour. we want to welcome our viewers in the united states and around the world. i'm wolf blitzer and you're in "the situation room." we're in new york city this week for the annual session of the united nations general assembly drawing 121 heads of state and government from around the world, including president obama who arrived here in new york just a little while ago. we'll have extensive coverage throughout the week, including a dramatic and con ten issues bid for state hood by the palestinia palestinians. but we begin with a new book about the president that's stirring up huge controversy already. it's called "confidence men, wall street, washington and the education of a president." brian todd is digging deeper. tell our viewers why the uproar. >> it's because like many other books about the early days of an administration, it portrayses a white house that was confused over what direction to head in and it alleges indecision and dysfunction at the top. for a best selling author, serious brush back from the white house over a new book which depicts in-fighting and in-deciding in the obama administration early days. in his book, ron susking writes the top advisers had doubts about whether he could handle the economic crisis. larry summers is quoted as saying in 2009, we're home alone, there is no adult in charge. clinton would never have made these mistakes. we couldn't reach summerses for comment, but in an e-mail to the "washington post," he said the here say attributed to me is a combination of fiction, distortion and words taken out of context. >> i lived the reality and the reports i've read about this book bear no resemblance to the reality we lived together. >> timothy geithner responding to a passage in the book saying that president obama decided early on to restructure several troubled banks but discovered nearly a month later that the direct it difference had been ignor ignored. >> absolutely not. gloria boernlg said people try to settle scores ask. does it lead to finger pointing? >> i mean, this is washington. people are always going to try and figure out who was the source for that. who is the source for that story. i bet that came from him or i bet it came from him. >> a defiant white house press secretary launched a separate offensive. >> one passage seems to be lifted almost entirely from wikipedia in the book. >> when cnn followed up, officials indicated that jay carney was referring to a passage in the book about the federal mortgage firm fannie mae as first reported by the online publication politico. in 1968, it officially became publicly held corporation to remove it debt and related activities from the federal balance sheet. the wikipedia passage says in 1968, if converted to a publicly held corporation to remove its activity and debt from the federal budget. we contacted ron suskin dch ncsa response and a spokeswoman said he meant more than 700 hours with more than 200 individuals in writing the book. the spokeswoman calls it exhaustively researched and sourced and said harpers is proud to be publishing it. >> there is another section of the book that isn't very flattering to the white house regarding the treatment of women who worked for the president of the united states. tell our viewers about that. >> that's right. it quotes christina romer as saying she felt, quote, like a piece of meat after being shut out of a meeting. anita dunn is quoted as saying the obama white house fit all thes classic legal requirements for a genuinely hostile workplace to women. roamer's office e-mailsed us with a response from her saying "i cannot imagine that i ever said the piece of meat quote. it is just too i willy for words. we didn't hear back from anita dunn, but she's old other news outlets that she was misquoted. >> all right, brian, thanks very much. and ron suskind will be joining us to talk about his new book and all the controversy it's generating. my interview this wednesday day after tomorrow right here in "the situation room." big quuproar over that. other news, in new york city security very tight. the city's mayor said recently that the massive rioting that swept europe, north africa, elsewhere in europe, for example, this year could actually happen right here in the united states if, if, economic conditions don't improve. let's talk about this and more with the new york city police commissioner, ray kelly. always good to have you. i always feel a little bit more secure when you're sitting here next to me in new york than maybe other times. but how worried should we be? the mayor suggesting if the economic situation gets worse, there could be? some rioting going on in big cities around the country. >> we have the occupy demonstration going on right now which started on saturday. it's been very peaceful. a couple minor arrests. so so far so good. >> is that supposed to go on for a long time? >> you're going to have to ask those folks. but i think there's been some statements that they intend to sleep in lower manhattan for a period of time. >> do they have a permit for that? >> they have no permit. but they'll sleep in public areas and not block the sidewalk. so if they adhere tos specifics of the law, it won't be a problem. >> are they big demonstrations? >> it was about 1,000 on saturday, but it dwil's down tot 100. >> you have a lot world leaders here in new york city. i had to walk many blocks because of what we call gridlock here in new york. how do you handle a situation like this? i know you do it every year, but seems to be getting more intense every year. >> it's a challenge, no question about it. we do have a lot of experience doing it. i think 137 heads of state are expected here. >> and all have a little motorcade, their own security. you've got to coordinate all that. >> correct, we work close with the secret service, the state department security people. i think at last count there's about 750 escorts that will take place during the next 4 1/2 days. so it's a good idea to stay away from the east side of manhattan, i'll tell you that. >> i remember the security was intensified around the 10th anniversary of 9/11 because there was a specific threat, unconfirmed. is that threat still out there or is that history? >> that threat has not been totally answered. there's still some issues associated with it. and obviously we take an awful lot of precautions during the u.n. general assembly and a lot of additional police officers as i say work closely with our federal partners. we do this and we hopefully do it well. we have a lot of experience. >> so that threat that was out there around 9/11, it's still out there. but because we're not -- i don't see a whole lot of people paying attention to it, but you are. >> we are paying attention to it. obviously we'refluence of the td the memorial, but we haven't taken our guard down. there are still open issues and we're vigilant. >> and you're in close touch with the homeland department, fbi. >> absolutely. >> is there any new information that's come in since the anniversary? >> no new information, but as i say, that front is still open. >> good luck this week. we're deeply appreciative for keeping this beautiful city safe. >> thank you. jack cafferty's here. he's a noerk. he has the cafferty file. >> and ray kelly runs the best police force in the world bar none. there is no law enforcement agency anywhere that begins to compare to it. president obama's throwing u.s. postal service a lifeline, but maybe he shouldn't. it's all part of the president's larger plan to cut $3 trillion from the deficits over the next ten years. first the president would allow the postal service to raid $7 billion from an overfunded pension account in order to avoid financial collapse. the agency is facing a serious cash crunch expected to hit its $15 billion borrowing limit in a couple weeks which is why the president also wants to give the postal service more time to make a $5.5 billion payment to a health care retiree fund due at the end of this month, two weeks. the white house plan would allow the postal service to end saturday mail delivery and raise stamp prices another two cents. the president is against letting the postal service void union contracts. the postal service itself proposed layoffs as a wave cutting it costs. republicans are slamming the white house plan especially the part about using $7 billion from its extra contributions to the pension plan. they say instead this plan uses accounting gimmicks. the postmaster general has acknowledged the agency face as new reality. he's looking to cut $3 billion a year by closing hundreds of processing facilities, cutting equipment in half and slowing mail delivery. slowing mail delivery. with the use of e-mail and other electronic communication, it's clear the postal service has become a dinosaur of sorts. there are 43 billion fewer pieces of mail sent now than four years ago. and yet our government's intent on throwing more taxpayer dollars down the drain. so what should happen to the u.s. postal service? go to cnn.com/cafferty file and post a comment or go to our facebook page. wolf. >> i agree with you about ray kelly. thanks very much, jack, for that. might be shael balk man beingme accuses president obama of desserting israel. my interview with the candidate coming up right here in "the situation room." plus we'll have an update on that six ton satellite hurling toward he earth. we don't know where it will hit, but we're getting a better idea of when. 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 another score 'cause they break it down to one simple number that you can use dot to take a break because the name is kinda long com in honor of the internet that it's on put it all together at the end of the song it gives you freecreditscore-dot-com, and i'm gone... offer applies with enrollment in freecreditscore.com delivering mail, medicine and packages. yet they're closing thousands of offices, slashing service, and want to lay off over 100,000 workers. the postal service is recording financial losses, but not for reasons you might think. the problem ? a burden no other agency or company bears. a 2006 law that drains 5 billion a year from post-office revenue while the postal service is forced to overpay billions more into federal accounts. congress created this problem, and congress can fix it. somewhere in america, a city comes to life. it moves effortlessly, breathes easily. it flows with clean water. it makes its skyline greener and its population healthier. all to become the kind of city people want to live and work in. somewhere in america, we've already answered some of the nation's toughest questions. and the over sixty thousand people of siemens are ready to do it again. siemens. answers. president obama today unveiled his plan to try to cut the u.s. debt by $3 trillion while the super commit of it is working on its open blueprint to cut the deficit. but partisan ship may have the president's plan dead on arrival. jessica yellin is here at the united nations with me on explain what's going on. what exactly is the president calling for? >> today the president wanted to take aim at two issues. first the nation's debt problem, and then also the partisan gridlock he feels he faces with republicans. never mind about debt and deficits. this rose garden speech was largely about politics. >> i will not support, i will not support any plan that put abouts all the burden for closing our deficit on ordinary americans. >> reporter: burned after the summer's debt deal with speaker boehner fell apart, the president is throwing down the gauntlet with a veto threat. >> i will veto any bill that changes benefits for those who rely on medicare but does not raise serious revenues by asking the wealthiest americans or biggest corporations to pay their fair share. >> reporter: for the congressional super committee, that sounds like a recipe for gridlock since speaker boehner threw this line in the sand last week. >> tax increases are off the table and i don't think they're a viable option for the joint committee. >> reporter: here is what the white house is proposing. more than $3 trillion in additional savings over ten years by raising $1.5 trillion in tax revenues, saving $1.1 trillion from winding down the wars in iraq and afghanistan, trimming $585 billion from government programs, more than half in savings from medicare and medicaid, and saving $430 billion in interest. they also want tax reform to include a "principal" they call the buffett rule. named after billionaire warren buffett. >> if you're among those fortunate few in the united states, we should make you pay as a shared income in taxes more than what a middle class family pays. >> reporter: senior congressional republican sources tell me this proposal is a nonstarter. the white house is gearing up to blame the gop. >> the speaker says we can't have my way or the highway. and then basically says my way. or the highway. >> reporter: the president's already setting a course for campaign 2012. attempting to position himself as a defend hdefender of the mi as a republican party he'd cast as a protector of the wealthy. >> i believe the american middle class who have been pressured relentlessly for decades believe it's time that they were fought fors as hard as the lobbyists and some lawmakers have fought to protect special treatment for billionaires and big corporations. >> reporter: let's think about this veto threat for a moment. the president has said that he would veto anything that gets to his desk in it doesn't meet his terms. but imagine it gets to the super committee and then passed by the house and the senate. if it gets to the president's desk and he vetoes it, wolf, that would be a very lonely moment for the president, a big deal for him, but this is really about framing the debate and at this point brinks man ship. >> so a little politics in this as well. >> a lot of politics and a lot of framing the terms of the 2012 campaign. >> jessica, hanthanks very much. you'll be here all week. a lot to discuss. thanks. let's dig a little bit deeper on the president's debt reduction man. gloria borger is joining us. gloria, we're not necessarily used to the president of the united states throwing down the gauntlet. why is he doing this how? >> this is a president who lots on the democratic side have accused of being passive, of negotiating with himself, they have accused him of being too eager to compromise. and suddenly it's like he was clark kent and he went into the phone booth and he came out the democratic super man. and that's because there's an election around the bend. he wants to show the democratic base that he can lead on this issue and also he's shifting the debate as jess was saying to much more friendly turf for democrats. taking it away from the deficit reduction issue and more to fairness for the middle class. they feel very secure on that turf and it's something he really feels the public is with him on and he can run on it. so this was a lot of politics. >> on the issue of entitlement, social security, medicare, medicaid, president really didn't offer any reforms for social security and the republicans are accusing him of basically offering only very modest changes, cuts, if you will, on medicare and medicaid. although the white house fighting back on that. what's going on here? >> the president did propose about $300 billion in cuts in medicare, but that's mostly on the provider side. not affecting beneficiaries. and that's key here. and also no real reforms at all on social security. so what the president is trying to do is get the super committee to come up with these reforms and then have it be done in the context of the super committee rather than having the president be the one to negotiate with himself. don't forget, he did say he would go along with some medicare cut backs when he was trying to fashion that grand bargain with john boehner, but that didn't go anywhere. so he's kind of backed off of that now in to a more political position, but i wouldn't rule it out in the future if of course it's combined with some kind of tax increases on the wealthy. >> tax reform is a popular phrase right how. republicans want tax reform. democrats want tax reform. but are we any closer really getting substantive tax reform? >> well, i wouldn't say we are today because the president's speech was clearly partisan. but everybody you talk to privately in washington understands that tax reform is the only way to go. and in a way, wolf, it might be a matter of semanticses. you talk about what is a tax increase. well, if you lower the top rate for wealthy individuals, but you take away some of their deductions, is that a net tax increase? we'll have to see. there is a way, i believe, to shape a compromise where the republicans could still say there are no tax increases here and come up with a deal. but, wolf, that requires a lot of good will on both sides and i don't think we have it right now. >> not yet and probably not next year during a presidential election year. gloria, thanks very much. please be sure to join us tomorrow here in "the situation room." i'll be interviewing the former president bill clinton, his global initiative is taking place this week in new york. we'll be anchoring from there. bill clinton here in "the situation room" tomorrow in new york. lots to discuss with the former president. meanwhile, president obama's relationship with israel on the agenda right now. certainly under the spotlight. we'll find out why that could potentially be a problem for him in 2012. but first my interview with republican presidential candidate michele bachmann. she's not holding back when it comes to mahmoud ahmadinejad. >> he's a genocidal mad made and should not be allowed in the united states to address the u.n. general assembly. 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[ father ] whoa, what are you doing? thought these were electric? the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projects in the world. enough power for a city the size of singapore for 50 years. what's it going to do to the planet? natural gas is the cleanest conventional fuel there is. we've got to be smart about this. it's a smart way to go. ♪ republican presidential candidates are pouncing on president obama's new deficit reduction plan which seeks to cut the national debt by some $3 trillion over the next on the wealthiest americans. joining us from waterloo, iowa, congresswoman michele bachmann, a republican running for the presidential nomination. thanks very much for joining us. i want to get your immediate reaction to the president's initiative today to try to reduce the federal debt which is enormous as all of us know. here is what our latest cnn/orc poll showed. we asked should deficit reduction, should such a bill increase taxes on businesses and higher income americans which is what the president wants. 63% said yes. 36% said no. you say no. why do you disagree with the president that big business and rich americans shouldn't pay a little bit more? >> well, because we already have these entities paying taxes and, again, the most important thing is that we focus on job creation. and what we know is that this will not create new jobs. it may be a good sound bite for the president, it may work for his political interests, but it doesn't work for job creation. and right now, this can't be about the president. this has to be about the american people and when or not we're going to have jobs created. let me give you you the answer of one businessman here in iowa today. i'm standing here in the shop floor in waterloo, iowa of a great company called omjc, very hard working company. before that, i was in northeast iowa and it was at a company called suca. and they create the grain storage bins. they have about 500 employees. i asked them this morning, wolf, about the president's jobs plan. they heard it. they had one word. they said disaster. it's going to be a disaster for hair business and their company. because they said it brings more uncertainty, increased taxes, increased government spending, everything that hasn't worked in the past, they're now going to have more of and double down and they just thought it was a disaster. >> because the president cites warren buffett as you know, he recently wrote an op-ed saying it's unfair that on his income, he might pay 16%, 17% in federal income tax, whereas his secretary or people who work for him might pay 35% which is the top income tax rate right now. you're a tax lawyer. is that fair? because the president says he wants to create a new buffett rule to change that so warren buffett and other billionaires would pay the same rate as middle income americans. >> then it sounds like the president would favor a flat tax. there's a lot of republicans that would favor a flat tax, too. so that everyone pays the same rate. and of course what that would mean then is doing away with the loopholes for everyone. but of course in the president's plan, he plans to have only some americans have the benefit of the whole mortgage interest deduction and he plans to have only some americans benefit from charitable giving and he plans to only have some americans benefit from being able to write-off what they already pay in state and local income taxes. the president is being very discriminatory in what his plans are and he is once again proving himself to be the great divider rather than the great uniter. >> let's clear up a couple of the issues that came up at the debate that i moderated in tampa a week ago on that hpv vaccine, for example. you've been criticized for repeating a story that some woman told you after the debate that her daughter became mentally retarded as a result of getting that vaccine and all the experts saying that's not possible. do you want to clarify exactly where you stand on that specific point? >> at the end of the debate, i went forward to where all of the people were in the audience and i was shaking hands with various people and the woman in question was sobbing and said thank you for bringing this issue up about the potential side effects. and of course one thing that we know, the drug manufacturers now on television when they advertise a drug, they have to give all of the negative side effects that there potentially can be and people are requested to look to their doctor. that's it. i wasn't speaking as a doctor. i wasn't speaking as a scientist. i was merely passing on in an interview after the debate what i had been told. because again, the main point of my remarks kraus the crony capitalism and also the fact that there was an abuse of executive power. i fight that all the time in washington, d.c. with president obama. we don't want to see that with republicans either. >> the cnn contributor mary matalin here in the situation room, she really went after you because you haven't backed away from that what you repeated that woman saying. i'll play a little clip because i want to give you a chance to respond to mary. listen to this. >> what is not legit is to just make up stuff like the vaccine is -- causing mental retardation. and it follow as troublesome pattern of her having done that in the past. so she -- and whatever his executive order and his position on hpv, 41 states have addressed this issue in some form or fashion, 20 states including minnesota have something on the books. so it's not some outlier issue, but she's in perilous danger of branding herself batty. >> i want you to respond. branding yourself batty. what do you say? >> and of course will is something that someone had said to me, a mother who was very concerned. and i think we've already addressed this issue, that the real point that i made in the debate when you were there is the fact that will is an abuse of executive privilege which the governor in fact admitted that he did make a mistake and also this is a real issue of crony capitalism. it's very significant that the former chief of staff was the chief lobbyist for this drug company and the drug company was putting pressure on the governor to issue an executive order to mandate that innocent 12-year-old girls be forced to take this potentially dangerous drug. that's really what the point was in the debate. so a lot of people are missing the main point and the main point is that crony capitalism and abuse of executive power which the governor himself admitted he made a mistake in doing. >> there'smichele bachma bachmann. she'll play why she thinks the president doesn't have israel's back. plus new details of a massive weather satellite expected to crash to earth in a matter of days. operatic aria ) ( singing along ) ( singing high note ) that should do it. enjoy your new shower. 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>> i think i would not have done what president obama did, which was not stand by israel. very early ork are the president of the united states needed to stand up and say that the united states would have israel's back. instead, the president made a very unwise move in may when he called upon israel to retreat to its indefensible 1967 borders. that september a profound signal to other nations that surround israel, especially those with hostile designs on israel. now we're in a very difficult situation where appears that the president ahmadinejad will be in the united states. the problem with that is palestine is seeking to do that without recognizing israel's right to exist or defend herself or renounce terrorism against israel. it's very important that they have to negotiate with israel, not have this imposed on israel. so the president sent very bad signals. thousand we're in a position of weakness and also it hasn't helped to have the overspending that we've had and the borrowing from other nations like china. this has put us in a position of weakness when we are now the largest debtor nation in the world as opposed to the early 1980s under reagan when we were the largest creditor in the world. and so that's reduced our standing at the u.n., as well. >> we're almost out of time, but the president also said israel should negotiate on the basis of those pre-67 border, but he added with mutually agreed land swaps, meaning there would be changes from the pre-67 lines. is that not acceptable to you? >> i think israel has given away more than enough of its land. i don't believe that israel should have to give away anymore of its land. we saw when israel i believe it was back in 2005 or thereabouts when israel gave up gaza. when that happened, there has been very few days that have gone by that israel has not received a tax from gaza. because some rockets have continually gone down in the lower area. that has had profound cops defenses on israel. and whenever israel gives up land for peace, they give up the land, but they don't get peace in return. and israel is in a highly volatile situation right now and my opinion is that the president has not done israel any favors by making the unwise speech that he made earlier this year when he called on israel to retreat to its indefensible 1967 borders. the best thing that the president could do would be on stand up with israel and make it absolutely unmistakebly believe that the united states will stand with israel and be israel's ally. >> we're out of time, but very quickly, so you don't position israel should withdraw from any of the best bank? >> i do not think that israel should be withdrawing from the west bank. i also called on the president of the united states to disallow ahmadinejad, the president of iran, to step even one foot in the united states. it was only perhaps three weeks ago that the president of iran once again said that israel should be eradicated off the face of the earth. as you recall, it was about in 2005 when he said before that he would use a nuclear weapon to wipe israel off the face of the earth. he is a genocidal mad man and in my opinion, he should not be allowed in the united states toed a the u.n. jgeneral assembly. >> we'll continue the conversation down the road. thanks very much for joining us. good luck on the campaign trail. >> thanks, wolf. appreciate it. and it's not just republicans who are criticizing president obama when can t. comes to israel. one prominent democrat saying that the president threw israel under the bus. mary snow has a report. plus major changes to the postal service here in the united states. they could leave you without mail on saturdays and more. jack cafferty and your e-mail coming up, as well. man: looks great, hun... woman: ...and we're not real proud of this. man: no...we're not. woman: we...um... teen: have you guys seen captain stewie and lil' miss neptune? dad: did you look all over the place? under your desk? all around? teen: uh, they're fish, they live in a bowl. dad: what're gonna do? anncr: there's an easier way to save. anncr: there's an easier way to save. teen: whatever. anncr: get online. go to 15% or more on car insurance.r:u two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy. we're back here live at the at the uhe night nations where the palestinian conflict is getting even more attention than usual as the palestinians seek state hood recognition. at the same time, president obama is getting even more criticism on his handling of the crucial u.s./israeli relationship. mary snow is work this story for us. what's the latest, what's going between the president of the united states and israel? >> he's getting a lot of attention of it here in new york because we saw this turn political last week. there was a special congressional race, republican contender made this an issue. a we've already seen republican presidential hopefuls questioning the president's support of israel. >> reporter: president obama had hopes for a peace agreement last year. speaking of an independent sovereign state of poll less tine. >> the pride and dig flitity that comes with their own state. >> reporter: a year late we are no agreement in sight and palestinians pushing a controversial pleasure to apply to the u.n. security council for state hood, the u.s. has promised to veto the move. as the u.s. stands with israel, it comes at a time when the president has faced some criticism in new york for not being a strong enough supporter of israel. and a fellow democrat leading the charge. >> president obama is a nice guy and i like him and i helped elect him and all of those things. he threw israel under the bus. >> reporter: former mayor ed koch helped make israel an issue in the ninth congressional district race and assumed the republican who won last week. there is also this full page ad in the "new york times"s from a conservative pro israel group. a former israeli government negotiator says it's all about partisan politics. >> i think american jews will end up voting on the same issues that the rest of the americans will have. and if the president ends up having a jewish problem, it will be because he has an american problem, not because of the israel policy. i think the presidents has shown himself to be an ally of israel. >> reporter: but a former u.s. middle east negotiator for both republican and democratic presidents says the president has work to do in building a relationship with israeli prime minister benjamin netanyahu. >> he doesn't exude the kind of empathy and impath any for the idea of israel like some of his predecessors did. i'm not suggesting he's anti-israel, but he doesn't create the kinds of bonds that previous presidents have. >> the problem this time around is that you have an unusual situation in which the israeli prime minister is finding it very difficult to show any gratitude and is perceived by many to have positioned position as an opponent to president obama almost whatever president obama does. >> and underscoring how this is becoming a political issue, rick perry is scheduled to be in new york tomorrow meeting with jewish leaders on the palestinian issue. >> this is a big issue right now and so far the white house saying the president will meet wednesday with knit i cannetany meeting yet scheduled with abbas. friday will be a huge day. so what should happen to the u.s. postal service so? your e-mail and jack coming up next. almost tastes like one of jack's cereals. fiber one. uh, forgot jack's cereal. [ jack ] what's for breakfast? um... try the number one! [ jack ] yeah, this is pretty good. [ male announcer ] half a day's worth of fiber. fiber one. ♪ hush, little baby ♪ don't you cry ♪ soon the sun ♪ is going to shine ♪ [ male announcer ] toyota presents the prius family. ♪ walk if i want, talk if i want ♪ [ male announcer ] there's the original one... the bigger one... the smaller one... and the one that plugs in. they're all a little different, just like us. sdmroirchlgts right back to jack for the cafferty file. jack. >> the question is what should happen to the u.s. postal service, which is out of money again? christian in houston, texas. "clearly the postal service needs a major overhaul. i'm not against partially privatizing some of their operations, while maintaining their public monopoly on mail carrying. their service is poor and outdated, and now they are virtually bankrupt." pardon me. bud writes from florida. "democratic answer, subsidyize it some more. republican answer, streamline it and fit the current projected revenues. libertarian answer, privatize it. every will choose an answer according to their politics, inevitably. i choose the republican answer. ow "mica writes, "privatize. sell it off in chunks. different companies for different regions. allow the private sector to correct the government's mistakes." susan writes, "by all means, keep the postal service. it's needed and useful. they should do away, though, with saturday delivery and shorten the business hours." chris writes, "cut retirement benefits, close post offices, cut delivery from six days to four days, and cut express mail." privatize it now. fedex and ups run better than this government-run mess. cut saturday mail, end junk mail, massive layoffs, problem solved." knoll in new mexico says, "cut mail delivery to three times a week. it would mean three less trips to the garbage can each week to dump my junk mail." go to my blog cnn.com/caffertyfile or check out our post on the situation room's facebook page. wolf. >> very good stuff. thank you. lease have a sylvester is monitoring some of the other stories in the situation room. renewed pressure on yemen's president to step aside. what's the latest? >> large, loud protests in yemen turned violent today as international pressure mounts on the country's president for a peaceful transfer of power. medical officials say 31 people are dead after clashes between protesters and police in two different cities. the government denies accusations it's using excessive force and blames gangs and al qaeda for the violence. convicted terrorist plotter jose padilla needs to spend more than 17 years in prison, according to an appeals court ruling out today. padilla was convicted of conspiracy to murder u.s. citizens and provide material support to terrorists. the federal appeals court panel upheld his convictions, but they said the sentences imposed by a federal judge were too lenient. and a satellite the size of your average school bus is plunging toward earth and will crash somewhere this week. nasa says part of it, but not all of it, will break up when it re-enters the atmosphere. while the risk to public safety is small, nasa says if you find something that may be a piece of the satellite, don't touch it. instead, call your local police. and next, netflix's ceo is apologizing and explaining the split of its dvd by mail and internet streaming services. if you want both, it will now require two separate accounts. for only the second time in history the united nations general assembly is hold aing high level meeting on a health issue. dr. sanjay gupta is coming up next on "john king usa" for our north american viewers. first, an unusual way to turn the tables on peeping toms. imagine living your life with less chronic osteoarthritis pain. imagine you, with less pain. cymbalta can help. cymbalta is a non-narcotic treatment that's fda-approved to manage chronic musculoskeletal pain. one pill a day, every day, can help reduce this pain. tell your doctor right away if your mood worsens, you have unusual changes in mood or behavior or thoughts of suicide. antidepressants can increase these in children, teens, and young adults. cymbalta is not approved for children under 18. people taking maois or thioridazine or with uncontrolled glaucoma should not take cymbalta. taking it with nsaid pain relievers, aspirin, or blood thinners may increase bleeding risk. severe liver problems, some fatal, were reported. signs include abdominal pain and yellowing of the skin or eyes. talk with your doctor about your medicines, including those for migraine, or if you have high fever, confusion and stiff muscles, to address a possible life-threatening condition. tell your doctor about alcohol use, liver disease, and before you reduce or stop taking cymbalta. dizziness or fainting may occur upon standing. side effects include nausea, dry mouth, and constipation. [ male announcer ] ask your doctor about cymbalta. imagine you, with less pain. cymbalta can help. go to cymbalta.com to learn about a free trial offer. [ 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. for medicare made clear, we're here to answer all of your questions. call unitedhealthcare medicare solutions. in switzerland girls danced during a demonstration to call attention to alleged war crimes by sri lanka. in spain a fire is displaced 1,000 people on the island of abeeza. in england activists built a barricade to prevent the eviction of traveller families from illegal dwellings, and in singapore the circuit is illuminated for the upcoming formula one grand prix night race. hot shots, pictures coming in from around the world. good pictures, indeed. meanwhile, a man here in new york city is turning the tables on a group of peeping toms. here's cnn's jeanne moos. >> reporter: he is the keeper of the peepers, using his video camera to show what happens on a couple of steps on union square. >> it's the act of staring up girl's skirts. >> reporter: this artist, who calls himself memorial bob, found a peeper so outrageous he began recording them. >> this is methods of a peeper two. here's a row of peepers here. stay tuned for methods of a peeper four, where i'll be discussing front row peeping. >> his mission? >> make a joke of it. expose them. humiliate them. >> women who sit on steps in skirts, beware. >> a peeper pack where more than one, two or moore peepers gather. >> now, for legal reasons, we had to blur the faces of all of the peepers, which is a shame because it hides what gives them away, their eyes. >> reporter: forget obvious movie techniques like dropping change. >> get up. >> reporter: real peepers position themselves right in front of the woman. >> he made a passenger window on his lap. he was sitting like this and looking. >> he is making the window, looking back through the wind wroe. >> reporter: a peeper contacted bob through his website to set him straight. >> what they're actually doing is trying to cover their eyes so the girl can't see where his eyes are aiming. >> reporter: peepers use baseball caps and cell phones to hide their eyes. bob has an abbing row nim for their techniques. >> it's the make believe acting casual, milling about. >> reporter: sometimes they don't even bother acting busy. >> just stand and stare. just no shame to the game. >> reporter: women tend to either be owe blius or to ignore, it and when we told this actress -- >> is he creepy, but, i mean, relax, enjoy. thank god i have my purse in between my legs. >> reporter: their odd affect is amazing. >> sitting directly between them staring up their skirts. >> reporter: and if peeping isn't bad enough, there's picture peeping. this guy seems to walk around with his video camera rolling held low. it's illegal to record someone's private parts, but plain old peeping isn't against the law. as for bob himself -- >> i'm a peeper peeper, and i'm very persistent. i many some ways i relate to the obsession because i'm obsessed with watching them. ♪ jeepers, creepers, where did you get those peepers ♪ >> reporter: wherever you got them, keep them to yourself. s jeanne moos. cnn. >> this is front row peeping at its best. >> reporter: new york. zoom thanks for watching. i'm wolf blitzer. don't forget, tomorrow i'll be at the clinton global initiative here in new york. i'll interview the former president, bill clinton. for our international viewers, world report is next. in north america john king usa

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