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It is meal time in the monkey house. Welcome to cbs this morning. In a last minute surprise president obama will order the biggest cuts to the militarys budget since the reagan era. The president is about to sit down with the congressional leaders. Bill plante is at the white house. Bill, good morning. Good morning and good morning out west. Russian leaders are here getting ready to meet with the president shortly to talk about no budget cuts, but there is no sign of a lastminute deal. Things were never supposed to get to this point. The very idea was supposed to force an agreement. It didnt and now its finger pointing in another direction. We are serving the men and women of this country a great disservice. The 85 billion cut slashed across most departments takes effect later today. On thursday senators from both parties led a lastminute effort to avoid the cuts each Party Presenting its own alternative. As expected those bills were voted down. Members of congress then began heading home for the weekend. But not before trying to pin the blame on each other. We might as well get a pink slip from the office of the speaker and the republican conference. The republicans are blaming the president. After an attempt to abort the sequester, the president is ready to make a bite as hard as possible. The administration warned repeatedly about the negative effects it would have on safety and travel. But many are skeptical. I would suggest that the majority leader, the president of his cabinet put down beltway koolaid because they are predicting a disaster will not occur. On face the nation sunday educators were already getting pink slips in anticipation of cuts. They later backtracked saying he wasnt sure. On thursday the white house distanced itself from the claim. What i can tell you is that im saying i dont have any contact with the school district. The president was trying to find a way out of the latest crisis, but the republicans already had the answer. My answer tomorrow will be the same as what im telling you today. Its time to pass a bill. But cuts dont go into effect until obama issues the order required by the law. That could be as late as 11 59 tonight. It will take days or weeks. Vice President Biden says hell take the train home to delaware instead of flying. Thanks. The army chief of staff was blunt about the fallout from these cuts. He told Congress Without the resources to train and equip his troops, our soldiers our young men and women are the ones who will pay the price, potentially with their lives. What do you mean, theyll pay with their lives because of these cuts . Whats happening is we have several things happening this year. Right now the army has an 1818 18 million shortfall with cooperation in training, which helps us pay for civilian personnel. Were not going to be trained for the rest of this year except those in afghanistan or those getting ready to go to afghanistan. What im worried about is next year we might have to delay deploying people who are not trained properly, or if were asked to do a contingency somewhere around the world we might not be trained properly. When they do these cuts because they are not prepared. Who determines the cuts that you have to make . Obama will determine them. Cant you find these cuts somewhere else . It has to do with certain accounts. Right now im short 18 billion in military cuts because we have a continuing resolution. I do not have the authority to move money around in the budget. So its not only the sequester, its the fact we had a continued revolution. Ive been a chief Staff Sergeant for 18 months. Weve always had a continued revolution in what we can do to move money around. So its like a double problem. We need predictability in the budget and we need to make sure the cuts we get are managed appropriately so we can put a plan together so we can protect our soldiers and they can do the job theyre supposed to do. Ive known you a long time. I feel like i can ask you some tough questions. You have called it the greatest threat to our National Security. Really . Greater than al qaeda . Greater than cyber warfare . The bottom line is if we continue to not be able to have a plan were supposed to build a fiveyear plan. I cant do that right now because we keep going through continuing resolutions. We have no idea what the money is going to be. We become more ineffective with the dollars. I think people watch this and wonder, what are we doing . We have heard Duncan Connor accusing them of adding drama to this whole thing. Ive got a briefing right now, and i cant come up with the money. I cant find it yet. And i havent found it at all yet. Right now 251,000 civilians, i cant train 80 of my units and i still havent paid the bills in 13. An entire Defense Budget . Its a huge budget. Im telling you, the money is fenced and it does not allow us to move money around. And sequester, by the way, we have no say in where those cuts come in fiscal year 13. They are directed. They are every line item. Will it pay different under chuck hagel . I meet with mr. Hagel this afternoon. He had a chance to talk to us earlier in the week and hes very excited about being in the job, and i look forward to working with him. All right good to see you. Thank you again for your service. The Obama Administration yesterday urged the Supreme Court to overturn californias ban on samesex marriage. A brief filed by the Justice Department also said laws based on Sexual Orientation should be more closely scrutinized. Jan, what i found interesting about this is the administration did not have to get involved here, right . Reporter thats right, it did not. It could have stayed on the sidelines. It didnt need to step in and thats what i think makes this so significant politically. Of course, it was under enormous pressure to step into this case. The lawyers who argued against californias ban urging the white house to get involved gay rights across the country urging the white house to step in here. Of course, this case will have an enormous nationwide indication. California is one of 30 states banning amendments banning gay marriage. The Obama Administration calls all those constitutional amendments into question. Legally its different just because the Obama Administration is saying one thing and the Supreme Court doesnt have to do it. Politically and symbolically, this is much more important for gay rights and it also represents a remarkable change in the president s position. Just over the last eight or nine years, remember back in 2004 he was pushing marriage between a man and a woman, and in last Years Campaign he personally supported samesex marriage, but now we have a them attacking samesex marriage. This case will come from the lawyers, from california. But this brief has the generals name on it. Thank you so much. The pope already in rome after yesterdays emotional goodbye. Pope benedict the cardinals attention now turns to monday. Thats the date they vote to start. Mark phillip is in Castel Gandolfo. Mark, good morning. Good morning charlie, nora. This morning the pope is here in his papal residence, the pope emeritus emeritus. Benedicts journey here was remarkable and unprecedented in so many steps. His last step as pope of the vatican and his last steps in the papal residency, just one more thing benedict xvi was giving up. It was a well orchestrated departure, saying farewell to officials and applause for the men make man making history by retiring in office instead of dying there. He plans to live out his days in the monsterastery being refurbished for him. The Vatican Benedict leaves behind is wallowing in the scandal and an administrative mess waiting for the new pope whenever he is chosen. The flight was a spectacular study in contrast. The frail retiring leader of the institution flying over the eternal city in a military aircraft. The vatican doesnt have its own air force, although it claims access to the heavens in other ways. Door to door air service is another perk benedict no longer has. Once at the Castel Gandolfo where hes due to stay for the next few months benedict appeared at the window overlooking the square. Then at 8 00 local time the ceremonial swiss guard Protection Unit left for the other parts of office. He gave up the red papal cape and from now on will only wear white. The pope has asked to not be seen or heard. Mark, thank you. And one of the 1cardinals who will pick the pope. Cardinal good morning. Good to see you smiling. Who could not smile in beautiful rome with this behind me. Were glad to see you. Thank you for joining us. We know the other cardinals have a busy week ahead in the congregation as youre set to pray and discuss about a new pope. Give us the scoop. What kind of pope is needed for the church . In fact just before i left where the cardinals are staying, we got the official letter from the dean of the college telling us that were to report right behind st. Peters at 9 30 monday morning to begin congregations. Well have about four or five hours of meetings every day. There will be prayer, there will be apostolic meeting, and i assume the first item on the agenda will be when will we begin the conclave the actual election of a pope. God willing well have that on monday. What date do you think they will choose based on conversations youve heard so far . You know what charlie, you hear kind of that we need a balance. Everybody is eager to have a new pope, all right . We dont like the chair at st. Peters to be empty. I dont know if you can see behind me on this side the windows are closed. Thats sad. Were not used to that. We want a pope fast. On the other hand, we know that takes a little time and prayer and reflection and discussion so somewhere in the balance, i would say those congregations have to go at least a week. I want to be home and i think all us cardinals have fulltime jobs. We want to get home certainly before holy week so please god, lets have a pope before that. The white house confirms with the vatican official that there have been scandals within the church. Is that in the air there and is that part of the conversation that might lead to the selection of this next pope . Oh theres no denying that charlie. Its a sense of realism that we had. You know youre talking to the church. Theres always been a scandal in the church because the members of the church who even work here the cardinals. Theres always going to be flaws and imperfections. They seem to be given more scrutiny right now because this is a time when everybody looks to the church. Is it in the air . It is, and i think thats something the cardinals are going to talk about. We look forward to seeing you in rome. Keep in touch, okay . I look forward to seeing you back in new york. A fastmoving brush fire is forcing people out of their homes in Riverside County california east of los angeles. The fire has already burned enough land to cover 150 football fields. It blew up last night with strong winds, pushing the plains through heavy smoke. Some homeowners hosed down their roofs. Nearly 2,000 people were left in the dark after power lines burned. Michigan Governor Rick Snyder plans to announce today whether detroit will be getting a new financial manager. Thats according to detroits mayor. They face a 17 million deficit. Snyder says hes reluctant to allow detroit to enter a chapter 9 bankruptcy. It would be the largest city to do so. The headlines around the globe. The Washington Post says private first class Bradley Manning pled guilty thursday to ten counts in the wikileaks case. He said the u. S. Became obsessed with killing human targets. Manning faces up to 20 years in prison. The wall street journal says american households are borrowing more than they have since the Great Recession of 2008. Household debt including mortgages, credit cards and loans went up 3 and a quarter percent since last year. The gas mileage for hybrids is in the probe alone. The molgd isdel is short of the epa estimates. And bruce miller was the mastermind of the great train robbery of 1963. It was the most spectacular heist. He made off with 63,000. Happy friday if you are heading out the door, we have a great day ahead. A lot of clouds in spots right now. Dense fog has settled in over the bay area and looks like you can see looking toward the golden gate bridge, you can just see the shadow of the transamerica building on the clouds. That fog is a thin layer. Its going to break up and leave lots of sunshine later on. Right now, temperatures mainly in the 40s and 50s. This afternoon what a day its going to be. Mid70s in into san jose. About 73 in santa rosa. Cooler maybe a few showers over the weekend. This National Weather report is sponsor bid aarp real possibilities. An american engineer found dead in singapore, his parents. This morning they look at the mysterious death of shane todd. A surprising farewell from ceo groupon. Anderson said he failed and he was fired. Well show you a most unusual leader. Plus tonights big budget cuts amean longer lines at the airport. Well take a closer look at cbs this morning. Announcer this portion of cbs this morning sponsored by nectresse, the new 100 natural no calorie sweetener. Licious could only come from nature. New nectresse. The 100 natural nocalorie sweetener made from the goodness of fruit. New nectresse. Sweetness naturally. [ male announcer ] every time you say no to a cigarette you celebrate a little win. Nicorette gum helps calm your cravings and makes you less irritable. Quit one cigarette at a time. [clucking]. Everyone wants to be the cadbury bunny. Cause only he brings delicious cadbury creme eggs, while others may keep trying. Nobunny knows easter better than cadbury bonjour is that a fruit or a vegetable, do you think . I dont know. I can ask. Cest un fruit ou un legume . Its a fish. Dare to create all kinds of drama. New revlon photoready™ primer and shadow add sparkle or use wet. So you can create whatever eye youre in the mood for. Dare to be revlon. 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Keep moving. Stayfree. Have led to murder . The police are back at work today after two days of mourning. Two detectives were ambushed and shot to deat its 7 26. Im michelle griego. Santa cruz police are back to work after two days of mourning. Two detectives were shot to death tuesday as they tried to interview a man at his home about a Sexual Assault allegation. That suspect was then killed by other officers. A pursuit in Sonoma County ended with a kidnapping suspect being killed. The shooting occurred around 11 20 last night in the guerneville area as a sheriffs deputy tried to arrest the suspect. Earlier, the woman who was allegedly kidnapped sent Text Messages to a friend who relayed them to police. Stay with us, traffic and weather in just a moment. Good morning. If youre coming up northbound 880 the fog is really thick. So you can barely see traffic. We want to let you know its slow though past the Oakland Coliseum towards downtown because of a stall reported in lanes. [ laughter ] lets go towards the bay bridge. It is really thick all across the bay area. Theres a dense fog advisory for the bay bridge, the carquinez bridge and the dumbarton bridge now this morning. It is backed up towards the maze. Be extra careful on the roads this morning. Heres the golden gate bridge, which its actually moving okay right now coming into san francisco. That is traffic. For your very foggy forecast, heres lawrence. Thing fog showing up around the bay area this morning at least in some spots. So if you have a nice view up above that fog, its only a thin layer. Heres our mount vaca cam at 3,000 feet. Plenty of sunshine and that is going to burn away that fog quickly this morning. Still, be careful its thick early on. Some visibilities less than a quarter mile. Sunshine this afternoon and clear to the coastline couple of patches of fog there. But mid70s today cooler over the weekend slight chance of showers saturday night into sunday. sir canalot good day, ma lady. [muffled] i am sir canalot. I am sir canalot here to save you from another breakfast bore. Wake up those eggs with glorious spam woman hmmm. Thats actually a good idea. [nervous giggle] male announcer break the monotony. For more fun ideas visit spam. Com. Secondhand smoke affects everyones health. Its not just irritating. It can cause Heart Disease and even death. Speak up about secondhand smoke. Your health and the health of your family depend on it. This one video of a plane full of people doing the harlem shake doesnt have the government laughing the faa wants to know if there were safety violations. A group of students from Colorado College made the video, Frontier Airlines says the seat belt sign was off and Safety Measures were followed. Welcome back to cbs this morning. For years, Cyber Attacks from china and other countries have been the biggest security. Some are wondering the death of an engineer from california would be linked to cyber espionage, we have a former fbi assistant director looking into the case. Reporter in 2010 29yearold shane todd moved to singapore for an engineering job with a Government Research firm called the institute of microelectronics, or ime. He was a young man that wanted an adventure and thought it would be supercool to live in a foreign country and he really liked it when he first got there. Reporter but 18 months later, in june 2012 shane todd was found dead inside his apartment. Police and the coroner believe todd hung himself in the bathroom leaving two suicide notes on his computer. We have already gone to singapore, twice now. Once to pick up our sons body and realize that nothing lined up with what we were told. Reporter shane todds family believes he was murdered. But why . Todds family says their son was under pressure from his employers, ime, to get Sensitive Technology from the u. S. Delivered to china. Technology he believed could endanger our National Security. He started calling us and saying, mom, if you dont hear from me every week email me right away. If i dont call you, call the u. S. Embassy. My life is being threatened. And thats when he said he felt he was being asked to compromise u. S. Security. I said shane, if you truly believe that you need to come home now. He said dad, i cant. Reporter one of the companies in discussions with ime about the technology was the tech giant hauweii. It represents a threat to the u. S. Because it could be pressured by the Chinese Government to spy or steal technology. If you put technology in our country and that allows you the ability to steal information or cyber attack our companies and our citizens we want to protect our citizens. Reporter in a statement, the institute of microelectronics or ime says neither ime nor shane was involved in any classified research project. The institute did not go beyond preliminary talks with huawei. Huawei has denied any spying allegations and said in the past, ime did approach huawei seeking cooperation, but we declined. Our goal is for the truth to be known, for our country to wake up, see technology is being stolen, brightest minds are being murdered and we want it to stop. Reporter today the todds are in washington and will meet with montana senator max back usus who is pushing for more details in singapore for exactly what happened to shane todd. His family seems to know why it might have an affect on National Security . In the apartment where they came a couple of days after he was found there, they found a portable hard drive. On that hard drive was an awful lot of data. It appears he had mirrored his computer at work on that hard drive. Gave it to experts in london who said this is technology that would have applications in civilian use but also critical applications in military use and they say there was actually somebody who went into that computer, two days after he was dead, and looked at some of that information so there are some suspicious elements here. All right. John miller, thank you. Weve been telling you this morning about the massive spending cuts only hours away. The faa says it has no choice but to slash 600 600 million from its budget. Transportation secretary ray lahood warns anyone flying to get ready. This is painful for us because it involves our employees, but it will be very painful for the flying public. As a former member of congress i heard complaints all the time from my constituents when their flights were delayed, or when their flights were canceled and this is going to have an enormous impact. Cbs news travel editor Peter Greenberg with us from las vegas. Good morning. Good morning, charlie. Its going to be tough, charlie, but not necessarily right away. What will the airlines do to prepare . What they are doing, they brought out their massive storm playbook when have you big weather problems and, of course, that involves preemptive cancelations. Getting planes canceled before they think about leaving the gate. What they will do selectively this time because they can. They will do sort of airline triage, keep the marquee flights, money flights. If you are going to an overseas connection through an International Gateway city those planes will operate. Going between milwaukee and albany . Maybe not. That will start kicking off on monday. Wont happen today. They will watch it very carefully over the weekend. What the faa is saying they are estimating delays up to 90 minutes, but that presumes they keep their present schedule. They have no plan to keep their current schedule. Whether will Airline Travelers see a disruption . Well monday or tuesday. Because the airlines are going to have the operations of the towers right now. All sorts of rumors that the faa will close the tower in orlando. That will not happen. They will start closing towers in medium sized airports with smaller operation levels. The choke airports those will stay open. Air Traffic Control centers will stay open. When you furlough an air Traffic Controller four days a week instead of five under union rules they have to be notified 30 days in advance. This will trickle in. However, on medium sized airports, thats where it will hit the hardest. Peter greenberg, thanks. The man credited with reinventing the coupon is out of a job. Groupon, online bargain site outsted its ceo and cofounder, andrew mason this after another disappointing quarter for groupon. Given the companys poor performance recently masons exit was somewhat expected. What he did after he was fired that took many by surprise. Andrew mason may have lost his job, but not his sense of humor. Thursday, he tweeted a candid letter to groupon employees saying after 4 1 2 intense and wonderful years as ceo of groupon, ive died that id like to spend more time with my family. Just kidding. I was fired today. Doing the letter was just like him. They let him go out the way he wanted to. It was funny. Perfect. Reporter perfect for a tech mogul who transported the tiny startup to a multibillion dollar business, but better known for his quirky personality. Like this. And into the plank position. Reporter a 2008 youtube yoga video. Made no apologies for his excentric behavior last year in an interview with 60 minutes. I think if there is any difference between me and a traditional ceo its that ive been unwilling to change myself or shape my personality around whats expected. Reporter but when mason didnt deliver the profits expected the company went public investors stopped laughing. If youre successful you can be crazy, if youre not, you get fired. But he is still funny, no matter how you slice it. Reporter when google came calling, groupon turned down a reported 6 billion offer. When i asked about him on sunday morning he laughed it off many. That differentiates you from living social. As he left behind his brainchild on thursday he told employees, are you doing Amazing Things at groupon, and you deserve the outside world to give you a second chance. And he added, fyi, im looking for a good fat camp to lose my groupon 40 if anyone has a suggestion suggestion. These companies are now being run for the most part by founders, in 20 years, all going to be professional executives and not nearly as fun. Most executives as we know leave companies with golden parachutes, but not andrew mason in 2011 at his own employ his salary reduced to 756. 72. His severance package is half of that. 378. 36, plus benefits for 180 days. When i hear this story, im reminded of the fact that groupon was prepared but chose not to take an offer of 6 billion. And that was my conversation with andrew mason. We spoke just after the google offer, and they were laughing it off. And you look at this in the technology world, the skyhigh valuations, facebook instagram, pinterest, thats what we see, they have been tested. Hot at a moment not necessarily here to stay. Rebecca jarvis, thank you. 70 million americans have some kind of sleep disorder. Scientists think not getting enough shut eye could damage your dna. Well talk with a sleep expert ahead on cbs this morning. I remember the day my doctor said i had diabetes. Theres a lot i had to do. Watch my diet. Stay active. Start insulin. Today, i learned theres something i dont have to do anymore. My doctor said that with novolog® flexpen® i dont have to use a syringe and a vial or carry a cooler. Flexpen® comes prefilled with fastacting insulin used to help control high blood sugar when you eat. Dial the exact dose. Inject by pushing a button. No drawing from a vial. You should eat a meal within 5 to 10 minutes after injecting novolog® insulin aspart [rdna origin] injection . Do not use if your blood sugar is too low or if you are allergic to any of its ingredients. The most common side effect is low blood sugar which may cause symptoms such as sweating shakiness confusion, and headache. Severe low blood sugar can be serious and lifethreatening. Ask your Health Care Provider about alcohol use operating machinery, or driving. Other possible side effects include injection site reactions and low potassium in your blood. Tell your Health Care Provider about all medicines you take and all of your medical conditions. Get medical help right away if you experience serious allergic reactions such as body rash, trouble with breathing fast heartbeat or sweating. Flexpen® is insulin delivery my way. Covered by most insurance plans, including medicare. Find your copay cost at myflexpen. Com. Ask your Health Care Provider about novolog® flexpen® today ive been coloring lizs hair for years. But lately shes been coming in with less gray than usual. Whats she up to . The new root touchup by nicen easy has the most shade choices designed to match even salon color in just 10 minutes. With the new root touchup all they see is you. [ female announcer ] take your lettuce from drab to fab with new lean cuisine salad additions. With grilled chicken edamame pineapple ginger vinaigrette and crispy noodles. Just bring your own lettuce. New lean cuisine salad additions. Just byol. Find us in frozen. Bonjour is that a fruit or a vegetable, do you think . I dont know. I can ask. Cest un fruit ou un legume . Its a fish. Lack of sleep may do more than leave us cranky the next day. A new Study Suggests it may have a damaging affect on our genes. Good morning. Good morning. What does this study show . This is an amazing study. We have long known at meridian health, lack of sleep has an impact on your health. After one week of less than six hours a night it will affect the activity of your genes in up to 700 of them. Genes for metabolism immunity inflammation and stress. This is a dramatic study many. When you say affect your genes, how does it manifest itself in terms of health . Think of genes as the instruction manual for the production of proteins. And proteins are very important. The Building Blocks for everything in our body. So you are changing these genes. They are turning some on and off and changing the way that they wax and wane in activities throughout the day so it literally will affect your health, heart attack stroke diabetes obesity, all these things have been linked to sleep. And this suggests at a molecular level how this may be happening. We hear how the lack of sleep may be bad for our health. Why is this study different . Other studies, this is what we can see, Heart Disease, stress inflammation. What are you not sleeping well at night, we see a lot of inflammatory symptoms in the bloodstream. This gives us an opportunity to look at future intervention. Unfortunately, 24 hours a day, 7 days a week were living in a society where we are the assets to push past barriers, having interventions and future treatments are good. What are tips for sleeping better or getting sleep . For most of us 70 million americans have sleep disorders, for most individuals, itduals, its a problem. They need to reach out to a sleep specialist for the rest of us pick the same time to bed and wakeup time. Regular and consistent schedule. Get the right amount. Most need eight hours, and create a relaxing bed time routine. If do you that for a week, you should be jumping out of bed in the morning, feeling very refreshed. She already jumps out of bed all right. We are seeing some patchy dense fog around parts of the bay area right now a a lot of sunshine. Fantastic day ahead High Pressure compressing fog right down to the surface. But that should give way to sunshine. Temperatures mainly in the 40s, even some 50s beginning to show up. By the afternoon, mid70s into san jose, 67 and beautiful in san francisco. And about 73 in santa rosa. Changes for the weekend, more clouds cooler temperatures, slight chance of showers saturday night. Izona senator john mccain has been outspoken in the battle of the budget cuts. Are hours away. Well talk with senator mccain here in studio 57 ahead on cbs this morning. Announcer cbs healthwatch sponsored by the most recommended, most preferred, and most studied multivitamin brand, centrum. Erm Health Benefits of taking multivitamins. They used centrum silver for the study. So i guess my wife was right. [ male announcer ] centrum. Always your most complete. Til dance do we part the solos are complete. 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The moment my moderate to severe chronic plaque psoriasis started getting in the way that was it. It was time for a serious talk with my dermatologist. This time, he prescribed humiraadalimumab. Humira helps to clear the surface of my skin by actually working inside my body. In Clinical Trials most adults with moderate to Severe Plaque Psoriasis saw 75 skin clearance. And the majority of people were clear or almost clear in just 4 months. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b are prone to infections or have symptoms such as fever fatigue, cough, or sores. You should not start humira if you have any kind of infection. Make the most of every moment. Ask your dermatologist about humira, today. Clearer skin is possible. [ male announcer ] we all have something neatly tucked away in the back of our mind. A secret hope. That thing weve always wanted to do. Its not about having dreams its about reaching them. An ally for real possibilities. Aarp. Find tools and direction at aarp. Org possibilities. Hope for best buy. Well show you how hard the what are those . Mmmmmm. Mcdonalds new fish mcbites fishay fishay fish, fish mcbites, mcbites fish, fish mcbites, mcbites [ male announcer ] the delicious alaskan pollack fish you love, only smaller. Mcdonalds new fish mcbites. 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[ female announcer ] tylenol® cold multisymptom nighttime relieves nasal congestion. Nyquil® cold and flu doesnt. Mine was earned in djibouti, africa, 2004. The battle of bataan 1942. [ all ] fort benning, georgia, in 1999. [ male announcer ] usaa Auto Insurance is often handed down from generation to generation because it offers a superior level of protection and because usaas commitment to serve the military, veterans, and their families is without equal. Begin your legacy. Get an autoinsurance quote. Usaa. We know what it means to serve. Your realtime captioner linda Marie Macdonald. Good morning, its 7 56. Im michelle griego. A kidnapping suspect is dead after a confrontation with Sonoma County sheriffs deputies. Investigators say a pursuit led to the shooting just after 11 00 last night in the guerneville area. A new field poll suggests californian voters are getting more positive about the states economy. 72 say the state is still experiencing bad times but 88 felt that way a year ago. Stay with us, traffic and weather in just a moment. [ male announcer ] nows the time to save 5 off every day with your lowes Consumer Credit card. Mary gonzales had a cold she also has asthma. So she sees her allergist who has a receptionist susan who sees that shes due for a mammogram. Mary has one that day. Thats when she finds out she has a tumor. She has a Successful Surgery and because her Health Provider has an amazing connected system, she has her life. I dont know what you have but i have kaiser permanente. Kaiser permanente. Thrive. Out towards the bay bridge where thick fog is blanketing the toll plaza. Its stacked up to the macarthur maze one of the busier spots. The toll plaza has been super busies since they turned the metering lights on around 6 00. At 880 in oakland, its friday light. Despite the fog not slowing things down much as you past the Oakland Coliseum. And traffic is moving along quite nicely as well if you are traveling through the Altamont Pass and livermore. That drive time is still only about 20 minutes to take you towards the dublin interchange. That is your timesaver traffic. For more on your forecast heres lawrence. Looking like a good day ahead as well see a lot of sunshine outside patchy dense fog to get through this morning. By the afternoon what a day its going to be. That thin layer sitting right down on the deck though in spots out toward san jose. The temperatures this afternoon, going to warm up nicely. Right now 40s and some 50s. Could see some mid70s into san jose today. About 72 in livermore. And about 74 degrees in the napa valley. As we head in toward the next couple of days, changes for the weekend. The clouds likely to roll back onshore. The temperatures going to cool down slight chance of showers saturday night. I think a better chance of rain as you head toward late tuesday and wednesday. Good morning charlie, g. Good morning charlie. Good morning everyone. It is 8 00 a. M. Welcome back to cbs this morning. 85 billion in federal budget cuts start today. Well ask senator john mccain about the impact on the military and the cost of freeing hundreds of Illegal Immigrants from jail. Auctions are full of surprises. Anthony mason has the personal story behind this jfk portrait. First here is a look at todays eye opener at 8. No sign of a last minute deal. Things were never supposed to get to this point. Barring a lastminute surprise, president obama is set to order the big gets cuts to the military budget since the trying gan era. You have called this the greatest threat for our security. This is Castel Gandolfo, the journey here was remarkable and unprecedented in so many ways. Most of the cardinals who will pick the new hope, after yesterdays formal goodbye to the pope benedict. There has been scandals within the church. Is that in the air there . Theres no denying that charlie. Thats a sense of realism we have to have. A fastmoving brush fire is forcing people from their homes in los angeles. This web video of people doing the harlem shake doesnt have the government laughing. Its what he did after that took many surprised. If you do that for a week you should be jumping out of bed and feeling very refreshed. She already jumps out of bed this morning. Benedict is now an expope, the Job Description cannot be seen or heard. Hell now just be the vessel through which god watches game shows all day. Announcer todays eye opener at 8 is presented by allergen. The white house plans to wait until the last minute tonight before launching across the board budget cuts and there is no sign of a reprieve. Congressional leaders from both sides who couldnt agree on a plan have been meeting with president obama this morning. Bill plante is at the white house. Bill, good morning. Reporter good morning, norah. Congressional leaders from both parties went to see the president about 7 18 pacific time to talk about the cuts. No deal is expected today. The cuts will go into effect when the president signs them. Things were never supposed to get to this point. Now theres fingerpointing in every direction. 46 billion is going to come out of the pentagons budget this year. The remainder of the 85 million cuts will slash across most government agencies. On thursday lawmakers from both parties led an effort to avoid the cuts each Party Presenting their own alternative. As expected those bills were voted down. Most effects will not be felt immediately. It will build over weeks and months ahead. Bill plante thank you. On capitol hill republican senator Lindsey Graham slammed both parties blaming both for this latest budget standoff. Ronald reagan should be rolling over in his grave. Shame on everybody who agreed this was a good idea on our side. To me this is pathetic leadership by the commander in chief. This is an abandonment of the Republican Partys belief in peace through strength. This is the low point in my time in the United States congress. With us now in studio 57 is arizona senator john mccain the 2008 republican president ial candidate. Senator, good morning. Good morning. My friend Lindsey Graham you were sitting right next to him. We were having a colloquy on the floor. Lindsey is exactly right. Ronald reagan would be appalled that our republicans who have been saying well lets just give the president flexibility of course that takes away from my responsibilities. But second of all, i believe general odierno. You just had him on the phone. Dont have to believe a politician but i think we should be carefully considering the views of our military leaders, our uniform military leaders. Weave been warning about this and the cuts are disproportionate on defense. Theyre disproportionally enacted on defense. You believe the administration designed them that way . I believe the administration and congress designed them that way. I put a lot of blame on the administration, but we went along with it. Im glad to hear you say that. This current washington parlor game about he did it, he devised it. As far as the idea is concerned, obviously thats huge specially inside the beltway. It was the president s idea and it was obviously that was not what the president said. In the campaign the president said, quote, sequestration wont happen and he said its republicans congresss idea. Neither statement was true. Charles craw hammer has an article in the Washington Post that says the president wants the sequestration cuts to hurt because they want to say to the congress and the country, you cannot cut spending without having deep pain within the country. Im a great admirer of charles, but im not sure if it was that machiavellian. I think they said hey, this is a great idea well force the Super Committee to act. And they will never allow Something Like this to happen. And i think that was sort of how this transpired. It really is decision graceful. What were doing to the men and women in the military charlie, that programs and other, they serve. They dont know where theyll be next week. To do this in the men and women in the military is unconscionable. Hadnt disrupted the lives of members of congress hasnt disrupted the life of the president. I believe the Administration May believe that republicans will be blamed for this. The polling data shows that that certainly may be the case. But the president s job and most important job is commander in chief. That is really his area of responsibility. Right now my view we should not have waited until the day that these are going into effect before calling members of congress together. Lets turn now to syria because secretary of state john kerry has Just Announced some involvement by the u. S. It is nonlethal ald to the syrian rebels. The rebels are saying thats not enough. Why so little engagement . Do you think we should do more . One reason is because the Iranian Revolutionary guard have people on the ground weapons are flowing in from russia and from iran. Around the countries destabilized for nearly two years. 70,000 people, estimates have been massacred. I appreciate john kerrys efforts. I really do. To say were going to change the equation with nonlethal aid isnt going to do it. I think weve written a shameful chapter in american history. I was in a refugee camp i was told the children in this refugee camp they will take revenge on those who refuse to help them. Were raising a generation of jihadists in libya in lebanon, egypt, turkey. Do you worry if in fact they supply lethal weapons, they could fall into the hands of the wrong forces and, therefore, be used again right now weapons are flowing into the wrong people charlie, and theyre falling in from frankly some of our friends in the gulf states including some wealthy saudis. These jihadists are having more and more influence as time goes by. Everything that they said would happen if we intervene has happened because we didnt intervene. Its shameful. Senator mccain good to see you in studio 57. My best to your mom. Thank you. Shell love the shoutout. You can hear more from the senator on face the nation sunday along with senator graham and dick durbin. Bob schieffer will also talk with bob woodward and Cardinal Timothy dolan. Thats sunday morning on cbs. This morning the main man called pope emeritus is in seclusion. The Catholic Church is being led by committee. Mark phillips is in Castel Gandolfo, it any just outside of rome. Mark, good morning. Reporter good morning, charlie. This is the quiet between two storms if you will. The former pope pope emeritus is in residence at the papal residence in Castel Gandolfo. The vatican released footage of the vatican being sealed. This normally happens, of course, when a pope dies. This one resigned. There is now no regular tenant in those apartments and there wont be until a new pope is selected. Benedicts departure from office, the first time in 600 years, is like a president leaving office. Took a helicopter journey out here to the hills around rome where hes taken residence. Its all now up to the cardinals. Theyll be meeting on monday not to start picking a pope but to talk about all the trouble we know of in the Catholic Church and to decide when the conclave will begin to start the difficult business of, in fact sele a new milestone for an american wonder built by 21,000 people. Can you guess what it is . Its todays all that matters. Could you go to las vegas without spending a dime at the slot machine or card table . Its happening more than you think. Thats ahead on cbs this morning. Ahead on cbs this morning. This mornings eye opener at 8 00 is sponsored by allergan. Talk to your doctor today about chronic migraine. Bout chronic migraine. Maybe youll have some friends over for dinner. Maybe youll have a migraine. If you have migraines with 15 or more headache days a month, youre living a maybe life. And you may have chronic migraine. But knowing this thing youre going through has a name means knowing you can find treatments that are right for you. Go to mychronicmigraine. Com to find a headache specialist. And dont live a maybe life. uq bonjour is that a fruit or a vegetable, do you think . I dont know. I can ask. Cest un fruit ou un legume . Its a fish. Time for all that matters. 77 years ago today the completion of the hoover dam, one of fdrs new deal projects. Construction was a mammoth undertaking, required a total of 21,000 workers who scaled cliffs, laid concrete and used the most advanced machinery ever created. Theres enough concrete in the hoover dam to build a twolane road from seattle to miami. Incredible. Unbelievable. Yeah. Beautiful. And they look like a couple living the american dream, but after a tennessee Financial Executive was found murdered in her car, her husbands secret life was revealed. Well repreview a 48 hours investigation into death and deceit. That is next on cbs this morning. This portion of cbs this morning sponsored by macys. [ male announcer ] every time you say no to a cigarette you celebrate a little win. Nicorette gum helps calm your cravings and makes you less irritable. Quit one cigarette at a time. Whats that . When i take a picture of this check, it goes straight to the bank. Oh. Oh look the lion is out no mommy no dont worry honey, it only works on checks. Deposit checks from your smartphone with chase quickdeposit. Just snap a picture, hit send and done. Take a step forward and chase what matters. A bus driver in poland pass out at the wheel and the bus crossed into the wrong lane. Two people grabbed the wheel and everyone was okay. It was a case that stunned the memphis area. A 44yearold Financial Executive naning tina caronna was found dead in the back of her suv. Maureen maher of 48 hours reported on a murder that revealed a life of secrets. Reporter tina caronna and her husband joe enjoyed the good life friends, cars and cruises. Very organized, very professional woman. Her career was very demand involving bonds, finance, and large sums of money. Reporter the caronnas belonged to the Memphis Corvette Club and when she went missing her friends began a frantic search. This is memphis. A lot of bad things happen. Reporter we were going through allies and behind malls and schools and hospital parking lots. Reporter when tina was found two days later in her chevy avalanche, the circle of suspects was limited. The husbands always the first suspect. Joe turned to me and said look youre my alibi. Reporter joe had spent the day with the couples best friend Gary Hathaway fixing cars. Joe said he had an alibi. Reporter what investigators would discover was joe caronna was leading a double life. Joe caronna was leading a double life because he was about to be exposed. Reporter there was fraud. How much money did you lose with him . 15,000. Reporter and a mistress an affair that had been going on for almost a decade. He was filling in the gaps that i wasnt getting at home, opening the door sending flowers to me at work. Reporter when cops questioned her, she admitted to everything and even agreed to wear a wire. All this time i just kept thinking that maybe you you know, you may have done that for me. Honey, i didnt do it okay . And when i say i would do anything for you, i mean i wouldnt do Something Like that. Reporter it would take five months until joe caronna was arrested and another four years to get him to trial. And it was very clear to me joe caronna was the one who whited the crime. The thing is could we prove it. Maureen maher is with us. You had the jodie arias case. What happened is the prosecution used quite a few elements from the 48 hours interview we did with her and our producer to show jodis ability to lie. Shes really quite aur tick lat. She told the police one story an then an elaborate story about intruders and shes now talked about selfdefense. Our tapes have been used all week long to set the tone with where were going with this case. I know youll have an update for us thank land o lakes spreadable butter with canola oil is made with sweet cream, canola oil and salt. Just three simple ingredients. Whats in your spread . woman 3 days of walking to give a Breast Cancer survivor a lifetime thats definitely a fair trade. It was such a beautiful experience. jessica lee and its beautiful woman why walk 60 miles in the boldest Breast Cancer event in history . Because your efforts help komen serve millions of women and men facing Breast Cancer every year. Visit the3day. Org to register or to request more information today. It was 3 days of pure joy. And its beautiful ooh kfc. Hey, youre supposed to wait for everybody. You know what, while were waiting why dont we play a game of hide and seek . Right now . Yeah go hide. Go on buddy. One, two. [ son ] come and find me three [ son ] are you even looking for me . I am looking [ male announcer ] bitesized chickens grown up. Kfc bites. Freshly handbreaded big bites of premium breast meat seasoned in the colonels original recipe. Try 10 bites with an 8 piece meal for 19. 99. [ son ] dad . [ male announcer ] today tastes so good. Your realtime captioner linda Marie Macdonald hi, everyone. Good morning. 8 25, im Frank Mallicoat with your kpix 5 News Headlines on this friday morning. A Sonoma County sheriffs deputy shot and killed a kidnapping suspect overnight. The victim who was taken from san rafael was able to text a friend for help. Officers caught up with the suspect in guerneville where he crashed that car. The victim was unhurt. The suspect was shot after the arrest. Santa cruz Police Officers are back at work after a suspect shot and killed two detectives on tuesday. That suspect was then killed by other officers. And uptown oaklands first friday event for today will go on as scheduled despite some safety concerns. One person was shot and killed, and three others were injured at last months celebration. Organizers say they have put additional Safety Measures in place for tonight. Got your traffic and weather on a friday coming up right after the break. You score Little Victories every day. Now you can do it with dinner. Introducing land olakes® saute express®. The allinone saute starter with butter, olive oil, herbs and spices. So dinner really sizzles. Its one step, no prep. And so good, theyll ask for more. And that little victory is a pretty big deal. Land olakes® saute express®. Find it in the dairy aisle. We struggling to see traffic because of all the dense fog out there. Theres a lot of traffic northbound 880 because theres an accident reported approaching 23rd. Thats a live look near the coliseum. Elsewhere, this is the san mateo bridge. We have dense fog advisories in effect for just about all the bridges this morning. And a quick check of our maps. Want to let you know about a new accident just reported actually, a couple of accidents in the same area, northbound highway 85 approaching blossom hill. Thats a check of your roads. For more on your forecast, heres lawrence. All right, elizabeth, High Pressure overhead really squashing the air down to the surface. So dense fog outside right now. Looking toward the golden gate bridge. You can just see the top of the buildings there on russian hill. Isnt that a neat shot this morning . We are seeing delays now at sfo of over an hour, also some delays in san jose, which is very rare. And thats because of that low cloud deck this morning. 40s and some 50s right now as we head toward the afternoon well see highs running up to the mid70s into san jose, 74 degrees expected in napa, 67 and sunny in san francisco. The weekend, clouds roll in, showers saturday night into sunday morning. Better chance of rain on tuesday and wednesday. [ woman ] my boyfriend and i were going on vacation s ed my Citi Thankyou card to pick up some accessories. A new belt. Some nylons. And what girl wouldnt need new shoes . And with all the points ive been earning i was able to get us a flight to our favorite climbing spot, even on a holiday weekend. Things are definitely. Looking up. [ male announcer ] with no blackout dates you can use your Citi Thankyou points to travel whenever you want. Visit citi. Com thankyoucards to apply. Oh, yes, friday. Welcome back to cbs this morning. Coming up in this half hour its long been called sin city. Las vegas is changing its image in a big way. Well show you the surprising ways the city is making a post recession comeback. A painting is reunited with its artist after half a century. The story of how it happened involves everyone from the kennedys to our own anthony mason. Anti know. Right now its time to show you this mornings headlines from around the globe. North koreas state newspaper reports on Dennis Rodmans controversial visit to north korea. Rodman said hes a friend of both the new leader and the north korean people. Rodman left north korea this morning. The Orlando Sentinel says the Orlando Health system is start ag tobacco free hiring process. Current employees who smoke will be exempt. The times of london says theres been a big mishap involving whiskey in scotland. During a nighttime cleaning shift at chivas factory, it was flushed down the drain. The Detroit Free Press talks about unplugging people across the country voluntarily turning off their smart phones and other devices for 24 hours. Its part of a campaign to get people to slow down in an increasingly hectic world. Thats a good idea. The Washington Post says today is the deadline to switch federal benefit checks to electronic payments. The move is expected to save up to 1 billion over a decade. Those who havent gone digital will not be kicked off the rolls, and theres also a chance to apply for a waiver. This morning best buy reports it made 16. 7 billion in sales last quarter, that is better than wall street expected. The chain is struggling against the internet. Best buy is now going after shoppers who look around their stores but save their money for online december. Rebecca jarvis is with us. Good morning. Good morning. Whats happening at best buy and how bad of health are they. Luckily for best buy, its looking a little better than what we were anticipating. They made 16. 7 billion in sales. The earnings came in a little better than expectations. One of the things people have been watching is the best bye stock price. It has been hammered if you look at the longterm trend over the last two years. Really this year the price has been up about 40 . A big part of that is that Richard Schulze who founded the company was going to buy it back. This morning we found out he didnt put the offer on the table. What is showrooming. Its what the brick and Mortar Stores we go to are dealing with. People come in the store, look at the stores ask questions about products, but ultimately buy the products from their smart phone because it has the product for cheaper. Best buy announced a couple weeks ago an end to showrooming, rolling out a policy beginning this sunday march 3rd where they will price match a number of retailers including amazon. Com, walmart. Com, apple. Com. These are the retailers that have historically stolen sales from a number of retailers, not just best buy. Im confused about this. How do you go to access this comparison . A lot of people are using different applications. Theyre on their smart phones and theres multiple ways that people can go. They can go to amazon. Com and say here is something i want to buy thats in store for 10, but on amazon its 8. Theres a lot of analytics on which companies are going showroomed the most. Bed bath and beyond is the biggest. I remember when target was match walmart. The difference is now youre in the store and you know the difference because of your smart phone. Back in the day you would find out by looking at an advertisement in your home or even going into the alternative store. Most people back then werent going to a different store. They would already own the product and then end up going to another store and seeing it was lower. Now you know before you even make the purchase its a lower price. Best buy is trying to combat that. I remember bringing the thing from the newspaper into the other store. Thats what youll have to do here. You have to show them at best buy, here is the deal at another place, id like you to match. Its up to their discretion whether to do it. Rebecca jarvis thank you. Over the last five years, las vegas has managed to win back the visitors it lost during the recession. These days gambling isnt the big draw. Apparently its backhoes. Peter greenberg is in las vegas. Good morning. Reporter good morning. When you think about it for decades las vegas is known as a city where gamblers went to vacation. After being hit hard by the economic downturn they reinvented themselves. Its now a place where vacationers go to play and maybe gamble. Its a city that bills itself as a place where sins are made. Its a haven for gamblers and showgirls, las vegas has enticed people with the draw of easy money. Hotels and casinos popped up along the strip. And for a long time las vegas was the Fastest Growing city in the United States. There was a common belief we shared that gaming would be more economically resistant to downturns than other forms of Discretionary Spending, and we were wrong. Reporter in 2008 the recession hit and tourists stopped coming. Jim muiring, ceo of gm almost had to pull the plus on city center. I went out the door and walked reporter mgm averted what could have been the largest bankruptcy in u. S. History. To survive, the Las Vegas Hotel industry had to market itself to a new type of customer one less willing to part with their money at the craps and blackjack tables. What weve seen since the recession is the nongaming side of the visit to las vegas has become more important. At cesars palace one of the first things to change was its buffet which like many casinos had become synonymous with poor quality food. Gone are the days of salisbury steak and mashed potatoes. Today fresh seafood and gourmet cheeses. Theyre coming and enjoying the high quality buffet. The next night theyre going to the nightclubs. Reporter clubs likeep this is a cbs news special report. Good morning. Were on the air because president obama is about to make an announcement in the White House Briefing room. Hes there to make a statement about the budget crisis. As you know, the deadline for reaching a deal is midnight tonight or automatic acrosstheboard spending cuts will kick in across much of the federal government. The president met at the white house this morning with the democratic and Republican Leaders of the congress and it appears they did not get anywhere. Afterward, House Speaker john boehner came out of the white house and ruled out tax increases as part of any deal to cut the deficit. As he put it the discussion about revenue is over. The president is insisting on tax increases. Cbs news chief White House Correspondent Major Garrett is in the White House Briefing room for us this morning. Major. Reporter good morning, scott. Really the only thing thats coordinated in washington these days are pronouncements of no progress. Thats what were going to have in sequence at the white house. House Speaker John Boehner was just outside the white house saying no progress was made and no progress is likely in the coming days. President obama will give his variation of that exact same message and also let the nation know whether or not he has yet done what the law has required which is to sign an order putting these acrosstheboard spending cuts in motion. They will not hit the country immediately, the white house concedes that, but 85 billion spread over the next seven months could inflict greater economic damage and harm certain americans dependent on direct government services. The magnitude of that impact will be known over time the white house says and the president will blame republicans on the question of additional revenue. Republicans are absolutely dug in on this point and will not yield. The president they will of to and here is the president of the United States. Good morning, everybody. As you know i just met with the leaders of both parties to discuss a way forward in light of the severe budget cuts that start to take effect today. I told them these cuts will hurt our economy. They will cost us jobs. And to set it right, both sides need to be willing to compromise. Now, the good news is the American People are strong and theyre resilient. They fought hard to recover from the worst economic crisis since the Great Depression and we will get through this as well. Even with these cuts in place folks all across this country will work hard to make sure that we keep the recovery going. But washington sure isnt making it easy. At a time when our businesses have finally begun to get some traction. Hiring new workers, bringing jobs back to america we shouldnt be making a series of dumb arbitrary cuts to things that businesses depend on and workers depend on like education and research and infrastructure and defense. Its unnecessary and at a time when too Many Americans are still looking for work, its inexcusable. Now, whats important to understand is that not everyone will feel the pain of these cuts right away. The pain though will be real. Beginning this week many middle class families will have their lives disrupted in significant ways. Businesses that work with the military, like the virginia ship builder that i visited on tuesday may have to lay folks off. Communities near military bases will take a serious blow. Hundreds of thousands of americans who serve their country, Border Patrol agents fbi agents civilians who work at the pentagon, all will suffer significant pay cuts and furloughs. All of this will cause a Ripple Effect throughout our economy. Layoffs and pay cuts means that people have less money in their pockets and that means that they have less money to spend at local businesses. That means lower profits. That means fewer hires. The longer these cuts remain in place, the greater the damage to our economy. A slow grind that will intensify with each passing day. So economists are estimating that as a consequence of the sequester that we could see growth cut by over onehalf of 1 . It will cost about 750,000 jobs at a time when we should be growing jobs more quickly. So every time that we get a piece of Economic News over the next month next two months next six months as long as the sequester is in place, well know that that Economic News could have been better if congress had not failed to act. Lets be clear. None of this is necessary. Its happening because a choice that republicans in congress have made. They have allowed these cuts to happen because they refuse to budge on closing a single wasteful loophole to help reduce the deficit. As recently as yesterday they decided to protect special interest tax breaks for the well off and the well connected and they think that thats more important than protecting our military or middle class families from these cuts. I do believe that we can and must replace these cuts with a more balanced approach that asks something from everybody. Smart spending cuts entitlement reform, tax reform that makes the tax code more fair for families and businesses without raising tax rates. All so that we can responsibly lower the deficit without laying off workers or forcing parents to scramble for child chair or slashing Financial Aid for college students. I dont think thats too much to ask. I dont think that is partisan. Its the kind of approach that ive proposed for two years. Its what i ran on last year. The majority of the American People agree with me and this approach, including, by the way a majority of republicans. We just need republicans in congress to catch up with their own party and their country on this. And if they did so, we could make a lot of progress. I do know that there are republicans in congress who privately at least say that they would rather close tax loopholes than let these cuts go through. I know that there are democrats who would rather do smart entitlement reform than let these cuts go through. So there is a caucus of common sense up on capitol hill its just its a silent group right now, and we want to make sure that their voices start getting heard. In the coming days and the coming weeks im going to keep on reaching out to them. Both individually and as groups of senators or members of the house and say to them lets fix this. Not just for a month or two, but for years to come because the greatest nation on earth does not conduct its business in monthtomonth increments or by careening from crisis to crisis. America has a lot more work to do. In the meantime we cant let political gridlock around the budget stand in the way of other areas where we can make progress. I was pleased to see that the house passed the violence against women act yesterday. That is a big win for not just women but for families and for the American People. Its a law thats going to save lives and help more americans live free from fear. Its something that weve been pushing on for a long time. I was glad to see that done. And its an example of how we can still get some important Bipartisan Legislation through this Congress Even though theres still these fiscal arguments taking place. I think there are other areas where we can make progress even with the sequester unresolved. I will continue to push for these initiatives. Im going to keep pushing for high quality preschool for every family that wants it. Im going to keep pushing to make sure we raise the minimum wage so that its one that families can live on. Im going to keep pushing for Immigration Reform and reform of our Voting System and improvements on our transportation sector and im going to keep pushing for sensible gun reforms, because i still think they deserve a vote. This is the agenda that the American People voted for. These are americas priorities. Theyre too important to go unaddressed and im going to keep pushing to make sure that we see them through. So with that im going to take some questions. Im going to start with julie. Thank you, mr. President. How much responsibility do you feel like you bear for these cuts taking effect . And is the only way to offset them at this point for republicans to give on revenue or do you see any alternatives . Well look weve already cut 2. 5 trillion in our deficit. Everybody says we need to cut 4 trillion. Which means we have to come up with another trillion and a half. The vast majority of economists agree that the problem, when it comes to deficits is not Discretionary Spending its not that were spending too much money on education, its not that were spending too much money on job training or that were spending too much money rebuilding our roads and our bridges, were not. The problem that we have is a longterm problem in terms of our health care costs. And programs like medicare. And what ive said very specifically very detailed is that im prepared to take on the problem where it exists on entitlements. And do some things that my own party really doesnt like if its part of a broader package of sensible deficit reduction. So the deal that i put forward over the last two years the deal that i put forward as recently as december is still on the table. I am prepared to do hard things and to push my democratic friends to do hard things, but what i cant do is ask middle class families ask seniors, ask students to bear the entire burden of deficit reduction when we know weve got a bunch of tax loopholes that are benefitting the well off and the well connected, arent contributing to growth arent contributing to our economy. Its not fair its not right. The American People dont think its fair and dont think its right. So, you know, i recognize that Speaker Boehner has got challenges in his caucus. I recognize that its very hard for Republican Leaders to be perceived as making concessions to you know sometimes i reflect is there Something Else i could do to make these guys im not talking about the leaders now, but maybe some of the House Republican caucus members not paint horns on my head. And i and i genuinely believe that theres an opportunity for cooperate. But what doesnt make sense, and the only thing that weve seen from republicans so far in terms of proposals is to replace this set of arbitrary cuts with even worse arbitrary cuts. Thats not going to help the economy. Thats not going to help growth. Thats not going to create jobs. And as a number of economists have noted, ironically it doesnt even reduce our deficit in the smartest way possible or the fastest way possible. So in terms of Going Forward my hope is that after some reflection as members of congress start hearing from constituents who are being negatively impacted as we start seeing the impact that the sequester is having that they step back and say, all right, is there a way for us to move forward on a package of entitlement reforms, tax reform not raising tax rates, identifying programs that dont work coming up with a plan thats comprehensive and that makes sense. And it may take a couple of weeks, it may take a couple of months. But im just going to keep on pushing on it and my view is, is that ultimately common sense prevails. But what is true right now is that, you know the republicans have made a choice that maintaining an iron clad rule that we will not accept an extra dimes worth of revenue makes it very difficult for us to get any larger comprehensive deal. And thats a choice theyre making. Theyre saying that its more important to preserve these tax loopholes than it is to prevent these arbitrary cuts. Whats interesting is Speaker Boehner just a couple months ago identified these tax loopholes and tax breaks and said we should close them and raise revenue. So its not as if its not possible to do. They themselves have suggested that its possible to do. And if they believe that in fact these tax loopholes and these tax breaks for the well off and the well connected arent contributing to growth arent good for our economy, arent particularly fair and can raise revenue, why dont we get started . Why dont we do that . It may be that because of the politics within the Republican Party they cant do it right now. I understand that. My hope is is that they can do it later. And i just want to repeat julie, because i think its very important to understand, its not as if democrats arent being asked to do anything either to compromise. I mean there are members of my party who violently disagree with the notion that we should do anything on medicare. And im willing to say to them i disagree with you, because i want to preserve medicare for the long haul. And were going to have some tough politics within my party to get this done. This is not a situation where im only asking for concessions from republicans and asking nothing from democrats. Im saying that everybody is going to have to do something. And the one key to this whole thing is trying to make sure we keep in mind who were here for. We are not here for ourselves, we are not here for our parties we are not here to advance our electoral prospects, were here for American Families who have been getting battered pretty good over the last four years are just starting to see the economy improve. Businesses are just starting to see some confidence coming back. And, you know, this is not a win for anybody. This is a loss for the American People. And, again if we step back and just remind ourselves what it is were supposed to be doing here then hopefully common sense will allow it in the end. Youre saying its a republican problem and not one that you bear any responsibility for . Well, julie, give me an example of what i might do. Im trying to clarify the question. What im suggesting is i put forward a plan that calls for serious spending cuts serious entitlement reforms, goes right at the problem that is at the heart of our longterm deficit problem. Ive offered negotiations around that kind of balanced approach. And so far we have gotten rebuffed because what Speaker Boehner and the republicans have said is we cannot do any revenue. We cant do a dimes worth of revenue. So what more do you think i should do . Okay. I just wanted to clarify. Because if people have a suggestion, im happy to this is a room full of smart folks. All right. Mr. President , the next focal point seems to be the continuing resolution that at the end of the month, it expires at the end of the month. Would you sign a tr that continues the sequester and continues to fund the government . In a related point, how do you truly reach the limits of your persuasive power . Is there any other leverage you have to convince republicans that this isnt the way to go . Well id like to think ive still got some persuasive power left. Let me check. No i look, the issue is not my persuasive power. The American People agree with my approach. They agree we should have a balanced approach to deficit reduction. The question is can the American People help persuade their members of congress to do the right thing. And, you know, i have a lot of confidence that over time if the American People express their displeasure about how something is working that eventually congress responds. Sometimes theres a little gap between what the American People think and what congress thinks but eventually congress catches up. With respect to the budget and keeping the government open try for our viewing audience were not talking in washington gobbledygook, an extension of last years budget to this years budget to make sure basic government functions continue, i think its the right thing to do to make sure that we dont have a government shutdown. And thats preventible. We have a budget control act right. We agreed to a certain amount of money that was going to be spent each year. And certain funding levels for our military, our Education System and so forth. If we stick to that deal, then i will be supportive of us sticking to that deal. Its a deal that i made. The sequester are additional cuts on top of that. And by law, until Congress Takes the sequester away, wed have to abide by those additional cuts. But theres no reason why we should have another crisis by shutting the government down in addition to these arbitrary spending cuts. The budget that continues to fund the government even at the lower level of the sequester zack i never want to make myself 100 clear with you guys, but i think its fair to say that i made a deal for a certain budget certain numbers. Theres no reason why that deal needs to be reopened. It was a deal that Speaker Boehner made as well and all the leadership made. And if the bill that arrives on my desk is reflective of the commitments that we previously made, then obviously i would sign it because i want to make sure that we keep on doing what we need to do for the American People. Jessica. Mr. President , to your question what could you do first of all, couldnt you just have them down here and refuse to let them leave the room until you have a deal . You know, i mean jessica, i am not a dictator. Im the president. So ultimately if Mitch Mcconnell or john boehner say we need to go to catch a plane, i cant have secret Service Block the doorway, right . I understand. I know that this has been some of the conventional wisdom thats been floating around washington, that somehow, even though most people agree that im being reasonable, that most people agree im presenting a fair deal the fact that they dont take it means that i should somehow you know do a jedi mind meld with these folks and convince them to do whats right. Well theyre elected. We have a constitutional system of government. The speaker of the house and the leader of the senate and all those folks have responsibilities. What i can do is i can make the best possible case for why we need to do the right thing. I can speak to the American People about the consequences of the decisions that congress is making or the lack of decisions made by congress. But ultimately its a choice they make. And this idea that somehow theres a secret formula or secret sauce to get Speaker Boehner or Mitch Mcconnell to say, you know what mr. President , youre right we should close some tax loopholes for the well off and well connected in exchange for some serious entitlement reform and spending cuts to programs we dont ne you know i think if there was a secret way to do that i would have tried it. I would have done it. What i can do is i can make the best possible argument. And i can offer concessions and i can offer compromise, i can negotiate, i can make sure that my party is willing to compromise and is not being ideological or thinking about these just in terms of political terms, and i think ive done that and i will continue to do that. But what i cant do is force congress to do the right thing. The American People may have the capacity to do that. And in the absence of a decision on the part of the speaker of the house and others to put middle class families ahead of whatever political imperatives he might have right now, were going to have these cuts in place. But again im hopeful about human nature. I think that over time people do the right thing, and i will keep on reaching out and seeing if there are other formulas or other ways to jigger this thing into place so that we get a better result. What do you say to the people like mayor bloomberg, whos no critic of yours in general, he endorsed you, who argues that there is some posturing in these claims there are going to be big layoffs and a lot of people out of work and thinks that the effects of the spending cuts are being overstated by the administration . Well, jessica, look, ill just give you an example. The department of defense right now has to figure out how the children of military families are going to continue with their schooling over the

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