open a rural economic forum at northeast iowa community college. we are watching that along with you. we also expect to hear from the governor of texas and newest republican presidential contender, rick perry, who is barely ten miles from the president, making up for lost time on the meet and greet circuit and turning heads with pretty inflammatory comments. last night, for instance, perry warned the fed that quote, printing more money ahead of next year's election would be, in his view, almost treasonous. we will talk much more about that next hour. for his part, mr. obama is midway through an economic bus tour that will wrap up tomorrow in illinois. he says he will roll out a detailed plan to boost the economy, create jobs and tame the deficit when congress returns next month. later today, mr. obama talks one-on-one with cnn's wolf blitzer. you can see that on wolf's show at 5:00 p.m. eastern, 2:00 pacific only on cnn. now to london, where we knew we hadn't heard the last of the

phone hacking scandal that doomed a best-selling tabloid and rocked the very pillars of society. today, the parliamentary committee that grilled rupert murdoch and his son james last month released letters suggesting that illegal snooping, hacking, eavesdropping, were a lot more common at the now defunct "news of the world" than the murdochs led on. one such letter is from a reporter named clive goodman who was sacked and jailed for hacking the cell phones of the royal family. he writes to his paper's human resources department, this decision is inconsistent because, here's a name blacked out, and other members of staff were carrying out the same illegal procedures. he says this practice was widely discussed in the daily editorial conference until explicit reference to it was banned by the editor. now james murdoch appears to have some explaining to do. >> highly likely james murdoch will be invited back to give evidence. before that we want to take a very detailed account of what the former editors and the

former lawyer knew. we have moved from the exposure of the hacking scandal to the second phase which is the very details of the cover-up. we want to get our facts lined up before we consider bringing murdoch back but every member of the committee is determined to get to the facts, i think it's highly likely he will be with us probably in october. >> i want to bring in my colleague dan rivers from our london bureau. tell us about this editor who supposedly banned this open discussion of phone hacking in the "news of the world" newsroom. what should we know? >> reporter: this is the editor of the newspaper at the time who has always denied he had any knowledge of phone hacking but nevertheless, stood down as editor when clive goodman was convicted for this. he then was forced to resign again from his job as communications director for prime minister david cameron when this story exploded on to

the front pages again. now in this letter that clive goodman wrote to the human resources department back in 2007, it clearly -- he clearly says, clive goodman, that the practice of phone hacking was widely discussed in the daily editorial conference until explicit reference to it was banned by the editor, andy coulson. this is a real smoking gun letter, if you like, from goodman implicating coulson at the time as having known about phone hacking, saying it was widely discussed and then saying andy coulson told everyone not to talk about it in the morning meetings. >> so dan, what if either rupert murdoch or james murdoch did give false testimony when they answered parliament's questions, what if anything can parliament do? >> reporter: well, there is no kind of specific punishment that parliament can bring against james or rupert murdoch if they believe they have been misled.

they could hold them, you know, in contempt of parliament. that doesn't really attract any practical punishment these days. in the old days, they might have been sort of locked in the tower or something. these days, it's more of a humiliation, if you like, a very public humiliation is their biggest sanction. but what is possible is that where parliament leads on this, the police may well follow. there is currently a police investigation ongoing involving 60 detectives who are looking into this. now, if parliament comes up with evidence that shows that james murdoch knew of criminal activities at the "news of the world" then perhaps the police will consider that and may possibly bring charges. it's not come to that yet. news international and james murdoch are denying any wrongdoing in all this, but certainly it's not been a good day for them and this opens up the prospect that james murdoch will be asked to come back again before politicians to be grilled

once again and asked why he was inconsistent with his evidence before. >> dan, we have to leave it there because president obama is speaking now in iowa. let's take a listen. >> thank you. thank you so much. thank you so much. well, it is wonderful to be back in iowa and thank you for arranging perfect weather these last couple of days. i have just been having a great time. i want to first of all, make just a few acknowledgments. richard avanerias, where are you, mr. mayor? well, he was here. give him a round of applause anyway. this person i know is here and i want to thank northeast iowa community college for hosting us, dr. leeann wi is here,

interim president. i've got a number of members of my cabinet who are here, all of them do outstanding work day in, day out, so i couldn't be prouder of them. first of all, this guy, you should be a little familiar with because he used to be the governor of this great state. secretary of agriculture, tom vilsack. secretary of the interior, ken salazar. secretary of transportation, ray lahood. secretary of housing and urban development, sean donovan. and the small business administrator, karen mills. well, this is an outstanding crowd and i don't want to stand in the way of a lot of good work that's going to be done so i'm

going to just make some brief remarks at the top. we've got small business owners here. we have farmers, we have ranchers, public servants, clean energy entrepreneurs, and community organizations from all across rural america. and i'm here because i want to hear from you and my cabinet wants to hear from you. there are two things that i know for sure. america is going to come back from this recession stronger than before. that i'm convinced of. i believe that. and i'm also convinced that comeback isn't going to be driven by washington. it's going to be -- [ applause ] >> it is going to be driven by folks here in iowa, it's going to begin in the classrooms of community colleges like this one, it's going to start on the

ranch lands and farms of the midwest, in the workshops of basement inventors, in the storefronts of small business owners, and that's why i'm here today. obviously, we're going through tough times right now. i don't have to tell you that. lot of folks are looking for work, even if you have a job, or a small business or a farm, you may be getting by with fewer customers or making do with fewer shifts, or less money in tips, and for a lot of families, in rural parts of the country, these challenges aren't new. for a long time, a decade, maybe longer, you've known what it means to face hardship. but we also know that while times may be tough, our people are tougher. you know how to make it through a hard season. you know how to look out for each other in the face of

drought or tornadoes or disasters. looking out for each other until we reach a brighter day. and that ethic, that kind of honor and self-discipline and integrity, those are the values that we associate with small towns like this one. those are the values that built america. while we have taken some hits, this country still has the best workers, the greatest farms, the top scientists and universities, the most successful businesses and entrepreneurs in the world. so as i have been saying over the last couple days, there's nothing wrong with this country. we'll get through this moment of challenge. the only question is if as a nation, we're going to do what it takes to grow this economy and put people back to work right now. and can we get our politics to match up with the decency of our people. the question is if we're going to harness the potential to

create jobs and opportunities that exist here in iowa and all across america, we know what's possible if we're willing to fight for our future and to put aside the politics of the short term and try to get something done. already, this administration has helped nearly 10,000 rural businesses and 35,000 small and medium sized farms and ranches to get the financing that they need. that's already happened. that means a restaurant owner can bust down a wall and set up some more tables. it means a family farm can buy a new piece of equipment to get more product to market. and that puts people to work today. just as the interstate highways knitted the country together 50 years ago, we have also got to do some new things to meet the challenges of the 21st century. we need to expand the reach of broadband, high speed internet, to seven million more people and hundreds of thousands of businesses in rural communities.

and by taking that step, it's making it possible for folks to take classes and train for new jobs online. it's helping people sell goods not just down the street, but across the country and around the world. we have invested in clean energy like advanced biofuels so that we're moving from an economy that runs on foreign oil to one that runs on home-grown american energy. that's a whole new industry that's taking root here in iowa and across rural america. but the rural economy is still not as strong as it could be. that's why i created a rural council to look for ways to promote jobs and opportunity right now. in council has come up with a number of proposals. we're not wasting time in taking up these proposals. we want to put them to work right now. so today, i'm announcing that we're ramping up our efforts to get capital to small businesses

in rural areas. we're doubling the commitment we've already made through key small business lending programs. we're going to make it easier for people in rural areas looking for work to find out about companies that are hiring. we're going to do more to speed the development of next generation biofuels, and we're going to promote renewable energy and conservation. we're going to help smaller local hospitals in communities like this one to recruit doctors and the nurses that they need. and those are just some of the things that we're already announcing today, the reason we brought you all together is because i'm looking forward to hearing from you about what else we can do to jump-start the economy. we want to leave no stone unturned when it comes to strengthening this economy. and we're going to be able to do a lot of stuff administratively. all the proposals we're making today didn't require new laws, it just means that we're doing

things smarter, we're eliminating duplication, we're allocating resources to places that we know are really making a difference. but we could do even more if congress is willing to get in the game. there are bipartisan ideas, common sense ideas, that have traditionally been supported by democrats and republicans that will put more money in your pockets, that will put our people to work, that will allow us to deal with the legacy of debt that hangs over our economy. i want to cut the payroll tax again to help families make ends meet. that's meant an extra $1,000 in the pockets of typical american families. that means more customers for your business. more buyers of your products. i want to pass a road construction bill to put tens of thousands of people to work all across america.

we've got young people returning from iraq and afghanistan with incredible skills, 25 year olds who have led platoons, 26 year olds handling equipment that costs hundreds of millions of dollars. well, let's connect them to businesses that can use their talents right now. we should pass trade deals that will level the playing field for american companies and no folks benefit more than rural americans when it comes to our trade. that's the reason that our agricultural sector is doing incredibly well. that has spillover effects, ripple effects, throughout the economy here. but it also benefits manufacturing. we've got folks in america driving kias and hyundais. i want to see folks in korea driving fords and chryslers and chevys. i want to sell goods all over the world that are stamped with

three words, made in america. and all of these proposals -- [ applause ] >> all of these proposals will make a difference for rural communities. the only thing that is holding us back is our politics. the only thing that's preventing us from passing the bills i just mentioned is the refusal of a faction in congress to put country ahead of party and that has to stop. our economy cannot afford it. our economy can't afford it. so i don't care whether you're a democrat, a republican, an independent, if you're not registered with any party. i want to enlist your help. i need your help sending a message to congress that it's time to put the politics aside and get something done. the folks here in iowa do the

right thing. i have been traveling through these small towns and talking to folks, sitting down at diners and you listen to people, they take such pride doing the right thing, taking care of their families, working hard, saving for the future, living within their means, giving back to their communities. you do your part, you meet your obligations. well, it's time washington acted as responsibly as you do every single day. it's past time. we've got a lot of work to do and the only way it will get done is if democrats and republicans put country ahead of party and put the next generation ahead of the next election. that's what i'm fighting for. that's why i'm out here visiting communities like this one, and small towns in minnesota and illinois. i'm convinced, i've seen it,

when we come together, there's no stopping this country. there is no stopping us. we can create opportunities for training and education and good careers in rural america so young people don't feel like they've got to leave their home towns to find work. we can strengthen the middle class, restore that sense of economic security that's been missing for a lot of people for way too long. we can push through this period of economic hardship and we can get to a better place. that's why we're here together. that's what this forum's all about. so i appreciate all of your participation. i expect great ideas coming out of these breakout sessions. i'm going to join a couple of them. let's get to work. thank you very much. thank you. >> you have been listening to the president speaking there, just midway through his economic bus tour that we have been following. speaking quite a bit about helping to create jobs, passing a road construction bill,

putting people back to work, passing trade deals, sending a message to congress to set aside politics, put the next generation ahead of the next election. just some of the president's comments there in iowa. take a look at this. remember this scene? for ten hours, australia held its breath as police tried to free a teenaged girl from what they thought was a live bomb strapped to her neck. it was a bizarre story involving a break-in and ransom note. now an arrest has been made and guess where? right here in the u.s. [ male announcer ] this is coach parker...

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exams when a stranger breaks in, straps what she believes is a bomb to her neck, and leaves a note demanding money. he flees and for the next ten hours, madeline pulver's friends and family keep vigil as bomb technicians remove what turns out to be a fake device. that was almost two weeks ago. well, today, these are the mug shots of the man police say is responsible. get this, he was arrested not in australia where this all happened, but here in the u.s. 50-year-old paul douglas peters was taken into custody by an fbi s.w.a.t. team at his ex-wife's home outside louisville, kentucky yesterday. from what we know, he's a lawyer, a businessman and australian citizen but police are still trying to figure out exactly what kind of connection he has to the pulver family. >> there are some links between the two, between the suspect and the family. however, no direct links and that's still a matter of investigation. >> pulver's family said today they are extremely relieved

about the arrest. >> these past two weeks have been a very difficult time for us and we are hopeful that this development marks the beginning of the end of this traumatic ordeal for our family. >> but of course, it's not over yet. paul douglas peters just appeared in court in louisville. susan candiotti joins us live from there now. first tell us what happened in court today. >> reporter: well, it wasn't much but the u.s. magistrate read what's a provisional arrest warrant to mr. peters, and told him that australia now has 60 days to formally file papers asking for his extradition. so that's when they will next be in court. >> what was he like in court? what was his demeanor like? >> reporter: well, you know, he seemed very attentive as to what was going on. he entered the court wearing shackles on his legs and handcuffs. when he came into court and again when he left court. he listened very closely to what was said, only briefly had to

acknowledge he understood what was going on. after that, he was represented by a lawyer. he didn't seem frightened but he certainly seemed concerned and was attentive as to what was going on. also in court was his ex-wife. she was sobbing as she left the courtroom and didn't say anything to reporters. >> we said that he's a lawyer, a businessman. is there anything else about his background or any explanation as to how he knew the family or why this might have occurred? >> reporter: well, as you heard police say, they are looking at that but what's intriguing is the e-mail address that police say that he used that was attached to that alleged extortion note. the e-mail address is the name of a character in a novel that was set in asia. this character was known for using any kind of means like extortion and violence to stamp out his rivals. so what's interesting to note is that as you said, the suspect in this case is an investment

banker who did business in asia. so is mr. pulver in australia, the father of the teenager that was targeted in this alleged extortion attempt. so they are looking for -- there are tenuous connections there and they are looking to see if they go any deeper. >> how did police track him down, just quickly? >> reporter: well, it's an amazing story. they looked at the internet address that he used, the e-mail address, traced it to some computers in australia, and then looked to see on surveillance video who was using those computers, traced that to a car. the car gave them some possible names. the names led them in essence to a man who fit the description of what the teenager had mentioned. traced that man to kentucky and in turn, that man had wired some money to a woman in kentucky who turned out to be his ex-wife. they went to the house and there he was, in the backyard. the fbi set up a s.w.a.t. team

and arrested him yesterday. >> susan candiotti in kentucky, fascinating turn of events in this one. we'll keep following it. thank you. when you hear the term flash mob, you may think of this. ♪ >> large or small groups gathering through social media to simultaneously break into silly, harmless song and dance. but the innocent fade just eight years old is now becoming known for a much darker side. people are using technology to plan group crimes. in recent weeks, teens in philadelphia gathered together and assaulted residents. just two days ago, more than a dozen teens robbed a maryland 7-eleven. you're watching it there. all at the same time. the montgomery county police are using technology to fight back. they posted this footage of the crime online so the community could help them find the teens.

take a good look there. earlier today, cnn's kyra phillips asked captain paul starks of the montgomery county sheriff's department how his search was going. >> quality of life here in montgomery county is very good and evidence of that is, like i said, we are getting a lot of response from sources in the community who have seen this video, who are concerned and are calling police with tips relating to the identities of the individuals involved in this crime. if you look at the tape, some of the suspects are laughing and smiling and i can assure you, we are taking this crime very seriously. >> so there you have it. they are looking for those teens. you heard the montgomery county police trying to find out who they are. if you recognize any of them, if you live in that area, you can certainly help by calling the montgomery county sheriff's department. meanwhile, there's a new orleans restaurant that has more than serving food on its plate. join us for a visit to cafe

reconcile where the secret ingredient is hope, just ahead. "money" magazine is out with its list of best places to live, where you can find work. if you're looking for a job, you should move here. what town cuts the mustard in more ways than one? we'll tell you after the break. [ male announcer ] for sore muscles use new bengay cold therapy. it's pro-cool technology releases armies of snowmen masseuse, who cuddle up with your soreness and give out polar bear hugs. technology. [ male announcer ] new bengay cold therapy. the same technology used by physical therapists. go to bengay.com for a 5-dollar coupon.

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what town cuts the mustard in more ways than one? try middleton, wisconsin, home to the national mustard museum, where you can see and taste thousands of mustards. another plus to living here, 17,000 people have jobs in town and that's impressive since the population is 17,400. >> the most unique part about middleton is the camaraderie of the community, how people really help each other. they don't have to know each other. they just feel like we're all one big family. >> middleton, wisconsin is number eight on "money"

magazine's list of the best places to live. we all know new orleans is known for its cuisine but ed lavandera is about to take us to a unique restaurant called cafe reconcile. >> reporter: chef joe is teaching. but the ingredients in this kitchen are a heaping side of hope and a dash of reality. >> that's what a lot of people do, especially in positions to hire. they judge you by your appearance. >> reporter: this is cafe reconcile, a dining experience like you've never seen. >> this is kitchen of life. we train in techniques in the kitchen and techniques to live life. >> reporter: cafe reconcile opened 11 years ago in central new orleans. >> should i sing a little song? >> reporter: sister mary lou is the cafe's heart and soul.

what does this place mean to you? i'll start off with that. >> wow. i can't say it without crying. >> reporter: these are kids on the fringe, you think? >> oh, yeah. many of them have experienced violence first-hand, lost somebody to death in their family, murder. >> reporter: cafe reconcile takes teenagers on the brink and prepares them to enter the work force. hundreds of these graduates now work in some of new orleans' top restaurants. each class learns to run this kitchen first but before they get here, they learn life skills in a classroom. >> you don't got no job -- >> reporter: it's about building a foundation. >> you think before you speak. that's what we're talking about, okay? >> reporter: every morning starts with a prayer, a chance to talk through frustration and on some mornings, a time to talk about a friend that was murdered. sister mary lou consoles the young woman. >> what happened? >> shot in the face, in the chest. >> i'm so sad.

i'm going to put my hands on you and i'm going to pray and pray and pray. >> reporter: a white catholic nun from iowa comes in here, into one of the toughest neighborhoods in new orleans, and connects with these kids. >> crazy. >> reporter: it's become a hugely popular lunch spot. before leonard entered the program, he had been in and out of jail five times for drug possession. where do you think you would be if you weren't going through this program? >> i would be somewhere in jail because i was really a wreck. i was a real wreck. >> reporter: cafe reconcile is a safe place for these young students but life outside this kitchen isn't safe. two months ago, sister mary lou got a phone call that made her question whether she could go on. >> it was horrible. i threw up my arms, said i'm done. >> reporter: there's a second part to this story. tomorrow, we'll delve deeper into what it was that made sister mary lou want to walk

away, the very moving story. also, the reason why you can't really judge a book by its cover. one of the kids at this school will blow you away. it's the reason sister mary lou keeps coming back. >> i'm so impressed by her and those kids. that's the kind of story that just makes you feel so good inside. you say this cafe is pretty popular, huh? >> reporter: it really is. on their busiest days, they can serve lunch up to 200 people. it's amazing when you think about this, they've got a small staff of about ten people. they've got a $1 million budget. but it's the kids that do the work and remember, this is a 12-week program. this restaurant constantly turns over its staff so all of these kids are retrained, a new group of kids comes in and as the chef told me, find any other restaurant in america that basically turns its staff over every ten weeks or so and ask me if they're still in business in a few months. >> did you get a chance to try the food? >> reporter: oh, we did. if you go to cnn.com on our blog, we did a whole bunch of

extra web stuff there, you can watch the feast that we delved into pretty good. it was a great way to end that story. >> i'm sure. i'm sure. that's the kind of story shoot you like. ed, thank you so much. we look forward to part two of your report coming up tomorrow right here on cnn. a teenaged girl dies suddenly after swimming in a river. we'll tell you what killed her and what her mother hopes others can learn from it. [ female announcer ] in the grip of arthritis, back, or back joint pain? aspercreme breaks the grip, with maximum-strength medicine and no embarrassing odor. break the grip of pain with aspercreme.

time right now, 37 minutes past the hour, let's check the latest headlines and other news you may have missed. we just heard from president obama who was in day two of his three-day midwest bus tour focusing on the economy. today he's in a small iowa town for a talk with farmers, small business owners and rural organizations. in a speech seen here on cnn just moments ago, the president said he's doubling his commitment to get more people working through small business lending programs. cnn's wolf blitzer interviews the president today on "the situation room" that starts at 5:00 p.m. eastern. don't miss that one. one of the republicans who wants president obama's job also is in iowa today. this is governor rick perry speaking in iowa with a group of people there, sitting at the table in a very intense conversation, it appears. he's already just days into his campaign. he's already generating controversy. he warned federal reserve chairman ben bernanke against using a strategy called quantitative easing to stimulate

the economy. he suggested if bernanke were to institute that strategy and start printing money, it would be quote almost treacherous or treasonous. a texas rangers baseball fan who fell to his death last month will be immortalized with a statue. the rangers say a full sized bronze statue will depict shannon stone and his 6-year-old son, cooper. stone fell over a railing while trying to catch a ball for his son. the rangers expect to have the statue up in their ballpark in time for opening day next year. a self-styled vampire is in jail for allegedly breaking into a stranger's apartment and biting her on the neck. 19-year-old lyle monroe bensley is charged with burglary with intent to commit assault. police in galveston, texas say his would-be victim managed to get away and suffered only minor injuries. they say when he was taken into custody, he told them he was a 500-year-old vampire who needed to feed. his bond is set at $40,000.

he has been placed on mental health hold. friends, family members and class mates are mourning the sudden death of a 16-year-old florida girl. doctors say courtney nash was the victim of a brain parasite that apparently entered her nose while swimming in a florida river, in a spot her family had visited for years. experts say the warm, stagnant fresh water there was a perfect breeding ground for the parasite. the girl's mother hopes her family's ordeal will be a warning for others. >> if we can save other people's lives and they don't have to go through what i went through, i think this would just be a blessing in disguise. >> we'll talk more about courtney nash's mom in the next hour of "newsroom." up next, yoga breaks, exercise classes and a healthy fresh diet. sounds like an experience you would get at a spa. try elementary school. dr. sanjay gupta will explain. ♪ [ female announcer ] we're throwing away misperceptions

about natural gas vehicles. more of the vehicles that fuel our lives use clean american natural gas today. it costs about 40 percent less than gasoline, so why aren't we using it even more? start a conversation about using more natural gas vehicles in your community. you've been stuck in the garage, while my sneezing and my itchy eyes took refuge from the dust in here

and the pollen outside. but with 24-hour zyrtec®, i get prescription strength relief from my worst allergy symptoms. it's the brand allergists recommend most. ♪ lily and i are back on the road again. where we belong. with zyrtec®, i can love the air®. obesity in children is among the most significant health problems in the u.s. the startling reality is this. according to the cdc, childhood obesity affects 17% of all children and teens. that is triple the rate from just 30 years ago. a number of schools are taking the initiative to teach their students very important lessons that could save their lives.

here's chief medical correspondent, dr. sanjay gupta. >> reporter: randi, they say if you can get to age 50 without any risk factors for heart disease, you have virtually zero chance of ever having a heart attack. that's the good news. the trouble does start early. in fact, the numbers are pretty shocking. about one in five kids isn't just overweight, but obese. you have heard these terrible numbers. there are best practices out there. we found a school in illinois where they're doing everything they can to turn that around. northeast elementary school in danville, illinois. the kids here eat healthy foods. >> we had chicken sandwich and apples. >> yogurt. >> fruit and juice. >> reporter: when she got hired, the school board told the principal make health a priority. >> we had lots of fried food, we had a lot of processed food. now nothing is fried. we have to have fish several times a month. we have fresh fruit and vegetables at every lunch.

>> reporter: there are also 30-minute physical education classes every single day. kids take yoga breaks during class. the annual fund-raising event that used to be a bake sale is now a one mile walk. all these changes made northeast the first elementary school in the country to earn a gold award from the nonprofit group alliance for a healthier generation, co-founded by the clinton foundation. the changes at school are changing habits at home as well. >> they're going home and talking to their parents about the new things that they have tried and tasted at school, and encouraging their parents to buy it at home. >> reporter: because you said these students are sort of a mirror of the community at large. >> they are. the word has gotten out that this is what we have to offer here and parents have come to us wanting that for their children. >> reporter: heart disease is america's number one killer. the risks start right here, with children. northeast elementary is one of a

growing number of schools fighting back and pointing the way toward a healthier future. i want to add this as well. when we talked for this documentary, mr. clinton was very candid about his own history of heart disease and how his doctors missed it when he was in the white house despite receiving executive level health care but also, how he has completely reversed his own health problems. there are real lessons in there for everyone. >> great lessons. thank you. be sure to tune in to cnn this weekend. dr. sanjay gupta reports, "the last heart attack" this sunday night at 8:00 eastern. sanjay talks to doctors on the cutting edge of heart disease prevention, including a former surgeon who developed a radical diet he says can make anyone heart attack-proof in just one month. coming up, bloodshed in syria as heavy shelling and machine gunfire is reported in a key port city. residents say palestinian refugees are caught in the middle of president assad's crackdown. card,

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heavy shelling is reported in the syrian port city today, the latest city to be targeted by president assad's crackdown against anti-government protesters. reuters reports at least 34 people have been killed over the past four days. residents say they have come under heavy tank shelling and machine gun and sniper fire today. much of the shelling has occurred in a part of the city housing a palestinian refugee camp. witnesses say scores of palestinians have fled the camp to escape the fighting. we are monitoring the situation from beirut. arwa, you have spoken to some of the residents today. what are they saying about

conditions there? >> reporter: well, they are telling us that around 70% of the residents have evacuated or at least tried to flee. however, there have been a number of disturbing reports where those families fleeing are said to have come under fire by syrian security forces at checkpoints. we have also received reports from the activist residents of the area that hundreds of families ended up detained or held at a stadium, reportedly their cell phones and i.d.s taken off of them, all of which is painting an increasingly disturbing picture. activists were saying they were trying to move around to ascertain the extent of the damage, the extent of the casualties, but still struggling because syrian security forces are quite simply fanned out everywhere. we are also hearing various reports that again, mass detentions are taking place as well. this particular neighborhood was really the epicenter of anti-government demonstrations and a lot of what we have been

seeing [ inaudible ] deliberately trying to target areas where demonstrators were taking to the streets. >> arwa, thank you. time right now, about ten minutes before the hour. let's take a look at some other top international stories that we're following along with you. u.s. officials say forces loyal to moammar gadhafi fired a scud missile at rebel forces sunday. the missile landed in the desert, causing no injuries. it is' believed to be the first time libya has fired a scud in years. a nato official called the firing a desperation move. al qaeda's new leader is calling on his followers to target americans in revenge for the death of osama bin laden. the appeal was made in a new video released on jihadist websites three weeks before the tenth anniversary of the 9/11 attacks. cnn has not attacks. cnn's not verified the authenticity of the video. >> the leaders of france and germany held talks to help the

battered euro and global markets. sarkozy and merkel sat down together in paris. they proposed that all countries using the euro should have mandatory balanced budgets and better coordination of their economies. how the cheapest light bulb is made from nothing more than a plastic bottle, bleach and water. you have to see it to believe it. don't go anywhere.

everyone is gearing up for the 2012 election. but one former candidate is looking back at her 2010 campaign. time now for cnn's political update. kate baldwin standing by at the political desk. hi there, kate.

christine owe donald surfaced again. >> she certainly has ran. christine o'donnell, you political junkies has told america that she is not a witch. remember this in the now infamous campaign commercial when she was running for delaware's senate seat. the ad was response to her past comments that she said she dabbled in witchcraft. now the ad itself was a mistake. in an interview with abc to promote her new book, of course, called trouble maker, o'donnell says that she hated it and said in the book she wrote that she came away from the ad "thinking i never should have even read that stupid line." she's now blaming the ad for hurting her on the campaign trail. i'm sure not the last we've heard from her. in other political ticker news, newt gingrich, the current house speaker and presidential candidate. he said that that committee set up by the debt ceiling agreement to find more than $1 trillion in

federal spending cuts, says the committee should be cut itself. making a speech today and said why is it super other than they've aggravated power into 12 people who will spend the next few months fighting. good question mr. gingrich. he said the task is absurd and didn't expect anything more to come from it than more political impasse. the committee has until thanksgiving to report back to congress. >> then we get to do this again. you get to move back into capitol hill where you were for so long. >> i miss my sleeping back so much. yes. >> we need to get you a big comfy office there. kate, appreciate it. thank you. >> thanks, randi. one more political note. wolf blitzer is interviewing president obama one-on-one. and you can see it on wolf's show today. the situation room airs at 5:00 p.m. eastern, 2:00 pacific only on cnn. coming up, how the world's cheapest light bulb is made from

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to an electric dal grid. students from the massachusetts institute of technology had the bright idea to create light bulbs from nothing more than a one liter plastic bottle, water and bleach. it's that simple apparently. the water refracts the sun's light and the bleach keeps it clear from algae. according to reuters, it can be installed in a metal roof in less than an hour. it is equivalent to a 60 watt bulb. reuters reports that 10,000 have been installed across poor towns in the philippines. the light only works when the sun is out but raises the standard of living for those who need it. for more about the light bulb, visit my facebook page at facebook.com/randi kaye/cnn. tune in tomorrow, same big eye time, same big eye channel. you've heard all politics is local. today much of it centers on rural northeast iowa. that's where president obama is

presiding over an economic forum aimed at cultivating new ideas to take back to washington. it's also where tthe governor o and contender is making up for lost time. grabbing headlines with outlandish comments. last nitric perry said that texans would treat ben ber bernanke pretty ugly. the group think progress.org had a camera rolling. >> printing more money to play politics at this particular time in american history is almost treason ous in my opinion. >> i want to bring in my go-to politicos to talk about this a little bit. mark preston, and paul steinhauser our deputy political director. guys, let's get to it. is this rick perry being rick perry or is this a candidate

looking for some big buzz? >> you know, randi, i think it's rick perry being rick perry. he's starting to hit his stride and feel more comfortable on the campaign trail. this may not always work to his advantage. when he says comments like this, it will draw the ire of democrats who will start turning their attention, their fire on him. might also be alienating himself with independent or middle of the road republicans. he has to be very careful what he says on the campaign trail. but you know what, he is getting buzz, there's no doubt about that. >> he certainly is. paul a lot of people are saying that rick perry will give mitt romney a pretty good run for his money. what does romney think about perry right now? >> romney is getting asked about perry nonstop. it's day two for romney campaigning in new hampshire and he had an event at miles an hour mack at a business plant there a couple hours ago. he was asked about perry again. maybe he's getting a little frustrated. he said at this stage, all i have to say is he's a fine guy, i respect him.

i look forward to seeing him on the trail and at the debates. mitt romney, up until now has been running a general election campaign in a primary season. he's been going off president obama and ignoring the other republican candidates. can he still do that with rick perry in the race? he's trying to but it gets tougher because there's another big elephant in that room randi. >> there certainly is. just getting back to a few of rick perry's interesting comments, not only the one about treason, but he appeared to question whether president obama loves his country and his patriotism. let's listen. >> you need to ask him. i'm saying, you're a good reporter. go ask him. >> mark, what do you make of that? >> i think that he's playing to his base and doing a good job of it. again, though, he's walking a fine line by saying that about the commander in chief, by saying that about the president of the united states.

it's certainly going to score points with conservatives within your party, however, you could alienate the middle of the road republicans. he needs to be careful, randi. >> paul, speaking of alienating republicans, at least one republican finds some of this talk offensive. tony frat owe, the former spokesman for president bush. >> he tweeted the comments about chairman bernanke are inappropriate and unpresidential. that's his quote. so is he at risk here of losing some of the republican support? >> here's the problem. a lot of mainstream republicans are saying this. mark was mentioning it as well. this kind of language will help you in the primaries. you've got an angry republican electorate. tim pawlenty was a little too nice you and he is gone. the problem that some are worried about iffed candidate moves to far to the right in the general, can they beat barack obama. that is the concern. that's why some people are raising these alarm bells when you hear rick perry make comments like these on the

campaign trail. >> mark, we talked about the perry/romney competition, how do you think perry is handling the competition such as say, michele bachmann. >> by and large, he's been ignoring his competition, except he made the comment that he's had ten years of executive experience as the governor of texas. michele bachmann, the knock on her is that she hasn't had any experience. she's been in congress a few years, hasn't offered major pieces of legislation and i go back to the old saying i say over and over again. they'll be fishing from the same pond of voters. they're looking for social conservative voters. rick perry wants to be the alternative or certainly wants to stand out from michele bachmann when it comes to these voters. he offers social conservative views, but he also offers experience, randi. >> paul, rick perry says that he's making up for lost time on the campaign trail. is there an advantage, would you say, to entering the race as late as he did? did he avoid some of the criticism and months of the campaign already comes off sort

of unscathed from that? >> there are pluses and minuses here, yeah. he's avoided that so far. but remember, romney, bachmann, ron paul, they've already been vetted. now rick perry will be vetted. these stories will start coming out about rick perry. the other candidates have had those stories out there and dealt with them. the other thing is money. now rick perry has to start raising a lot of campaign cash. mitt romney is pretty far ahead of him now. he has time to catch up now. he has to make up for lost time. pluses and minuses for jumping in late. >> great to chat with you guys about this, as always. thank you. taking a look at other developing stories that we're following today. president obama as we mentioned in day two of his three-day midwest bus tour talking about one of his favorite topics of late. jobs. here he is speaking about an hour ago in a small iowa town where he's meeting with farmers, small business owners and rural organizations in his speech seen here on cnn, the president said he's doubling his commitment to

get more people working through small business lending programs. and a program note. cnn's wolf blitzer interviews the president today on the situation room starting at 5:00 p.m. eastern time. checking other stories that we're following. taking a look here at the big board, the dow is down 86 points. down day on wall street. concern over weak economies in europe caused prices to tumble. the pullback came after three straight sessions of healthy gains. it's looking like news corporation executive james murdock will be asked to testify again before parliamentary committee investigating the phone hacking scandal. the committee is trying to determine if murdock's son misled the panel about the scale of the hacking at the now defunct news of the world. james murdock ordered the shutdown of the paper in july in the wake of allegations of illegal eavesdropping and police bribery by the papers' employees. according to documents released today, news of the world employee jailed says the practice was widely discussed.

an australian man is being held on bail in kentucky. 50-year-old paul douglas peters was in court today accused of being involved in that recent bizarre bomb hoax in australia. he was taken into custody by an fbi swat team at his ex-wife's home outside louisville, kentucky, yesterday. you may remember what happened. it was almost two weeks ago. an 18-year-old australian girl was at home studying for final exams when a stranger broke in, strapped what she thought was a bomb to her neck. he left a note demanding money and fled. as police worked for ten hours to free her from what turned out to be a fake device. coming up later this our, susan canned aught i will tell us about the suspect and how police tracked him down in kentucky. then this. heartbreaking plea from a mother. >> i prayed and prayed. i was hoping that i would get a miracle. >> but she never did. her 16-year-old daughter died just days after swimming in a local river. her death blamed on a

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try capzasin-hp. it penetrates deep to block pain signals for hours of relief. capzasin-hp. take the pain out of arthritis. it is a sad and somewhat terrifying story out of florida today. a 16-year-old girl goes swimming in a river in florida. water gets up her nose and just days later, she's dead. so what happened? a microscopic amoeba apparently traveled from her nose to her brain causing a deadly infection. courtney nash passed away this weekend. her family is hoping her death can help raise awareness about this kind of deadly amoeba and her mother, p.j. nash-ryder is leading the way. she joins me on the phone along with brevard community of

health: p.j., first to you, i would like to give you condolenc condolences. i'm so sorry to hear what happened to your daughter. when did you first notice something was terribly wrong with her? >> caller: i would say monday night, tuesday morning. >> and what was it? what kind of signs or symptoms was she showing? >> caller: tuesday morning she had a fever, 102. it was rising. she had thrown up 20 times. she was getting delirious a little bit. >> did she say, was she in pain or what was she telling you? >> caller: she had a tremendous headache on the right side above her eye. >> and so you took her to the hospital. and what were doctors able to tell you there? >> caller: tuesday night we went to a local hospital. they gave her an i.v.

they gave her rosef in. pain medicine. and then they went ahead and sent us home. >> so they had no idea what they were dealing with yet. how did they finally come to understand that this was an amoeba? >> caller: when we got home, her fever was 102.1 from the hospital. couple hours later, her fever went up to 104. i knew then it was very serious. her eyes -- she was in bed and look at me and i would ask her what was wrong. she would say i don't know. i tell her to lay back down. her eyes were rolling in the middle of -- her eyes. she wouldn't shut them all the way. i called my uncle. he came over. he knew something was wrong immediately. he's the captain of the fire department. we went over to palmer's hospital. as we were checking in just from

her appearance, they could see something was wrong. they took us back immediately to the e.r. they ransom tests, they did a spinal tap there test and a cat scan. within two hours they came back with the bad news that she had the amoeba virus. >> p.j., stay with us. i want to bring in bruce pierce and ask him a couple of questions about this. bruce, how common is something like this? >> caller: this is extremely, extremely rare. in brevard county, we've had two cases in probably the last 20 to 30 years. >> is there any way to prevent it? i mean, if something like this can get up your nose in the water, and then go to your brain like that? >> caller: as far as prevention goes, you really, the only way you can completely prevent it is to avoid swimming in freshwater. particularly warm water in the summer months.

stagnant water and then avoid activities like jumping and diving because that's what forces water up the nose. the other thing you want to do is avoid stirring up the sand or the muck at the bottom of fresh lakes and rivers. that's where the amoeba lives, basically. >> and they act extremely quickly. >> caller: it does. once it gets to the brain, the condition goes very, very quickly. >> p.j., i understand that you say this may be a blessing in disguise, the loss of your daughter. how so? >> caller: she has turned people around. she was an organ donor, didn't know about it at first. she wanted to be an organ donor when she was 14 when she went and got her license. she made sure that the -- she was an organ donor. a day before she went into the hospital, she went back on the computer to make sure and confirm that she was an organ

donor. she has touched a lot of people around the world because at her age, being only 16 years old, that she knew what she wanted, people have gone to church, they're being baptized, they're believing in god, having faith, wanting to become organ donors. the news has helped me to put out there how important it is during these summer months with the water condition. >> well, we'd like to thank you both. bruce pierce, thank you and p.j. nash-ryder, we do appreciate you coming on. it's such a hard time for your family. sounds like your daughter courtney was a very special young girl. we're very sorry for your loss and thank you again. >> very much, thank you. coming up next, looking for a job, we'll tell you where people are hiring.

times are tough, but in some places times are, well, less tough than others. cnn has been an in-depth investigation to find out where the jobs are. poppy harlow standing by with the results. poppy, what areas are doing the best? a lot of folks are wondering. >> reporter: i don't think you'll be surprised to see the top towns are in texas. it's gone unscathed in terms of jobs and in terms of the housing sector. let's pull up some of the top towns for you and show you exactly what we're talking about. the number one on the list in terms of job growth over the last decade is rockwell county, texas. that's the 97.9% you see on your screen. that's the amount of job growth

they've had over the last decade. it's the smallest county in texas but they have doubled in terms of the number of jobs added in the last ten years. they've lured a lot of businesses from neighboring counties, brought in a lot of jobs, major incentives to bring corporations and that keeps people living there and keeps people employed. the next one on the list is loudon county, virginia. 75% job growth over the last decade. it's been dubbed the silicon valley of the east. they've got a lot of tech firms planting their roots there in virginia. something you wouldn't expect. but that means a lot of good-paying jobs. third on the list is williamson county, texas. 68.1% job growth there. this has to do with education. 70% of those with a college degree have post secondary education. when we look at the jobs report every single month, that people that have a college degree have a lower unemployment rate than

people that don't. >> i hope they were taking notes. this is the kind of thing where you want to take notes and move to where the jobs are in this day and age. poppy, appreciate it. thank you. >> reporter: you got it. if you're a regular watcher of this show, you know that we have been all over this next story. if you are just joining us, you will want to stay with us. accusations of abuse and cover-up. all part of an investigation into the beating death of kelly thomas. allegedly at the hands of those who are supposed to protect and serve. now, thomas' family is hoping to find justice at a higher level. the update next. selection of ap, that are this easy to find.. and this easy to download right to your phone. so it can be almost anything.. like a boarding pass. or do almost anything.. like pay for your coffee.

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we want to update you on a major development in the kelly thomas case. his death has been raising serious questions about the six fullerton police officers involved in thomas' alleged beating and the police department's response. but we're also learning the lawyer representing thomas' family is preparing a federal lawsuit in the case. the complaint could be filed as early as tomorrow and we'll speak with you gar owe in a moment about that. the federal claim by the thomas

family comes as the fullerton city council prepares to vote today on whether to hire a police watchdog who would independently review thomas' alleged beating and the fullerton police department's practices. we spoke with what the city council was negotiating. his name is michael gennaco. >> these police officers didn't come to work for the first time that day. whatever they did was guided by the fact of their training by the protocols and manual that was handed to them and a lot of other things. so what we need to do is pull that apart and see whether or not there is a better way of doing business with regard to the way in which the police are protecting the community of fullerton. >> if you have been following the story with us, you know all of this. the review, investigations by the fbi and orange county district attorney and now the federal complaint are in response to what allegedly happened to kelly thomas. these are new family pictures of kelly thomas. provided by his dad through the

family's attorney. thomas was homeless and also schizophrenic. but the photo we're about to show you is hard to look at. but it's a key piece of evidence. take a look here. you're looking at what kelly thomas looked like before and after the alleged beating by six fullerton police officers. you can see there he's hardly recognizable. on july 5th, fullerton police responded to reports of a man trying to break into cars near a bus station. witnesses say what began with a search of thomas' backpack ended with this, tasered multiple times, hogtied face down, smashed against the concrete, his head slammed with a flashlight. thomas died from the injuries five days later. the police chief took paid medical leave last week as calls for his resignation intensified. the six officers allegedly involved in the beating have been placed on paid administrative leave. but what's more. according to the los angeles

times, those officers wrote their reports after their supervisors allowed them to watch videotape of thomas' alleged beating. kevin hamilton who is stepping in as the acting fullerton police chief says the officers were just following standard procedure calling it a catch-22. >> if they view it, we're trying -- it seems like there's a sinister motive there. there's not. if they don't view it, we'll be accused we're not making them account for their actions. if the officers are culpable criminally or culpable internally, they are going to be held accountable. >> and that brings me back to the representative of kelly thomas' family. thank you for taking the time to speak with us about the case. we've been following it and we have a lot of questions for you. let's talk about the federal claim that you are planning on filing tomorrow. what more can you tell us about that? >> let me tell that you we do believe first of all, that there

is something sinister going on when the police chief decides to allow these officers to view the videotape before their reports are finalized. as we come back to the story later on as i explained to you exactly why that's so critical. when you have six criminals involved in a crime, you don't put them all in one room and have them speak to one another, compare notes and watch a videotape to make sure that their notes jibe with the videotape. you separate the criminals and then you speak with them individually and then you check what they have to say with one another and against the videotape. here, they've turned that protocol on its head. these officers are not just officers in these case investigating a case about somebody elsewhere they might need to look at a videotape. but they are accused of battering a man to death. they are being investigated for murder. so they ought not be allowed to see that videotape before they finalize their report. it's been over 45 days and we still have not seen the

officers' reports. >> i want to ask you again, though, about this federal claim you plan to file tomorrow. >> all right. what we'll be filing will be claims. we've already sent in notices on the state level of filing claims against the department, against these individual officers. one of the officers who was involved in yet another matter we'll discuss in a few moments and the claims will include obviously the false arrest, beating to death of kelly and ooer going to have civil rights allegations involving the federal constitution and the deprivation of kelly's right to live as a free citizen when he's not bothering anyone. that will be prelude to a lawsuit later in both potentially state and federal courts of the we'll discuss that in a moment. >> gar o, i want to ask you about comments made. he said on our show last week when we interviewed him that the

evidence shows on the video -- shows that there's no evidence that the officers intended to kill kelly thomas. the investigation continues. they're still trying to figure out, even when you look at those pictures and you look at this video if excessive force was used. what's your response to that? >> well, let me tell you, excessive force can be interpreted by people's conduct. you know, our prisons are full of inmates who claim they did not intend to murder, did not intend to kill the individual. they accosted. teach them a lesson the person happened to die. you file the charges, you let the jury decide. a jury will decide whether these officers had a right to keep beating kelly thomas after he had submitted, after he had passed out, after he was no longer responsive. they kept pummeling his head and punching him. they used a taser, the butt of a taser to smash his head in. they used the pavement and the curb to repeatedly smash his head. they dropped, kneed his head.

all this after he was no longer responding physically at all. he had passed out. witnesses say the officers kept yelling out, stop resisting, stop resisting when he had stopped talking and stopped moving completely. but they kept beating him and eventually he died as a result of those severe blows. >> the investigation does continue. that is according to witnesses. i also want to ask you, though about one of the officers that might have been involved in this. we haven't been naming the six officers accused in this case. but one of the these officers may have been involved in this beating along with another attack or another beating, a separate incident involving another one of your clients. there is some video from you-tube of that situation. i want to show that and if you can, tell us exactly what happened here. what is your client's claim involving this officer who may have been involved in both of these instances? >> very well.

mr. ma'am is the victim in this case. you will see an officer right here grab him and the only thing mr. man n was doing was videotaping with his iphone interaction between one of his friends and another fullerton police department officer. as he continued to videotape, this officer, rather large gentleman, described to be 6'4"250 pounds approached mr. mann who stands 5'5", 135 pounds and slapped his face basically in his attempt to grab the video recorder. the camera dropped to the ground. a friend continued to record and then we see the officer kenton hampton grab mr. mann, throw him on the ground, knee his back and the man offered no resistance. he was not committing a crime. he was doing nothing wrong, just video taping a police officer's interaction with one of his friends. the officers didn't have the opportunity to view the

videotape so they wrote lies in their reports. they claim in the reports that the man wasn't video taping but jumping on the back of officers trying to prevent officers from performing their duties which are bold lies. that's the advantage -- because in this case, they didn't see the videotape and they wrote reports that are full of lies that there are false reports and there will be a lawsuit filed on behalf of the man tomorrow in federal court. and just to tie it up with the kelly thomas case, one of the lead perpetrating officers is the same, kenton hampton, seen in the mann videotape and had the police department and the d.a. take a note and brought mr. hampton to the foreground and questioned him about his falsifying reports and bringing false charges against mr. mann, he would not have been there

that night beating kelly thomas to death. we haven't named the officers ourselves. we don't have that name verified. i just want to say that. also regarding the other case, we did reach out to the fullerton police department, e-mailed and called to get their response which we haven't gotten from them today. what are you hearing, back to the kelly thomas case, what are you hearing about possible charges of the officers allegedly involved? >> well, let's start with the initial report from the police department. what they said right after this hit the news was that this was a very violent man who resisted arrest and fought back and that two of their finest, two of the officers performing their duties that night, suffered broken bones and were hospitalized. whatever happened to that? all of a sudden those officers aren't coming forward, all of a sudden they're not talking about broken bones and it sounds like those bones were never broken. they were creating a story. they were creating a story before they could see the video. those officers' bones were not

broken and kelly thomas was not violent and was not beating the officers up. the officers were beating him up. i can tell you that i'd love to see the d.a.'s office bring charges against these officers but all i'm hearing is a lot of delays and excuses. they'll keep delaying, delaying, hoping this goes away. i can tell you, kelly's dad, ron, heard his son's plain tiff cry. dad, dad, dad as the officers continued to beat his face and pummel him to death. and ron thomas is not going to give up. he's going to pursue the truth. he's going to investigate, he's going to make sure that we help him investigate and people come forward and let's find out what happened and let's get the bad officers off the force and let's get them criminally charged and the good officers. i think not all six of these officers are equally culpable. there's got to be one or two of them that were not involved in the beating. please, i beg of you, come

forward, stop and break the code of silence. come forward an tell us what happened. tell us truth. >> garo, we'd all like to know the truth. that's why we're staying on this story. we'd like to know exactly what happened in the beating death of kelly thomas. we appreciate your time and we'll continue to follow this and check back with you as well. thank you. >> you're welcome. it is a terrifying prospect that has american officials very concerned. al qaeda attacking the u.s. with a deadly poison. the author will be joining us right after this. how is it that we don't act our age? [ marcie ] you keep us young. [ kurt ] we were having too much fun we weren't thinking about a will at that time. we have responsibilities to the kids and ourselves. we're the vargos and we created our wills on legalzoom. finally. [ laughter ] [ shapiro ] we created legalzoom to help you take care of the ones you love. go to legalzoom.com today and complete your will in minutes. at legalzoom.com we put the law on your side.

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if it ever happened, the death toll could possibly be far higher than the 9/11 attacks. the new york times reports that u.s. officials fear that al qaeda may be trying to produce the very deadly poison rice en. the times says it would be packed around small explosives for attacks against the u.s. according to the times, for more than a year, the al qaeda

affiliate in yemen has been trying to acquire large quantities of castor beans necessary to produce the rye sen. it's so deadly that just a spec of it can kill you. the author of the article is er ere er -- eric joins us now from new york. hi there eric. this is a frightening and amazing story as well. i want to begin by asking you what does this tell us about al qaeda affiliates in yemen. >> it tells us even with the death of osama bin laden in places like yemen and somalia, these are still very dangerous to the united states. the arm of al qaeda in yemen was responsible for the plot of the so-called underpants bomber in christmas of 2009. and then ten months later, the printer cartridges packed with

explosives and put on cargo planes pound for chicago. it shows, even with bin laden's death, the affiliates are still dangerous to the country. >> what do u.s. officials see as al qaeda's strategy in terms of the weapons of mass destruction? >> well, what counterterrorism officials tell us and what we report in our new book is that al qaeda has a dual strategy right now. they still are trying to obtain weapons of mass dee trucks in order to carry out an attack like what happened on 9/11. they're looking to another track and that is small scale attacks, like this ricin plot where you would have individual cells or individuals perhaps even americans radicalized over the internet to carry out attacks on their own. >> owe has bin laden's death as far as you could tell had any impact at all on al qaeda affiliates or on the chances of another attack here in the u.s.? >> certainly it's had an impact on the ability of al qaeda in pakistan, the main al qaeda

organization there to carry out attacks against the united states. but the affiliates in places like yemen pose a very direct threat to the united states. what this also shows is that even after ten years of improvements in counterterrorism efforts such as in the military and intelligence community and even in cyberspace where the government experts are now able to infiltrate terrorist cell phone networks and even computers, the government still has a lot to learn about the root causes of terrorism and combatting al qaeda's very simple but effective message that the west is at war with islam. this is something that the west and the united states is still trying to combat. >> can the u.s. just quickly here, we have 20 seconds left. can the u.s. do anything to undermine the message from al qaeda? >> yes, what i mentioned before is for instance what they're doing in many of the areas in computers, where in cyberspace where terrorists recruit, where

they plot plans and strategies, right now you have strategists going in and spoofing the terrorists right now. planting false messages in order to show confusion and dissent within the ranks. >> eric schmitt, fascinating story. we're happy to have you on to talk about this. >> thank you. a lawyer, businessman and a father but now he is a suspect under arrest in kentucky accused in that bizarre bomb hoax involving a teenage girl and a ransom note. we're live in front of the courthouse where he just appeared, next. [ waves crashing ]

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captivated the world. today a new twist. remember this? an 18-year-old australian girl at home studying for final exams when a stranger breaks in, straps what she believes is a bomb to her neck and leaves a note demanding money. he then flees and for the next ten hours madeline's friends an family keep vigil in a wealthy sidney suburb as technicians remove what turned out to be a fake device. these are the mugshot of the man police say is responsible. get this. he was arrested not in australia, but right here in the u.s. 50-year-old paul douglas peters was taken into custody by an fbi swat team at his ex-wife's home outside louisville, kentucky yesterday. from what we know, he's a lawyer, businessman and australian citizen. police are still trying to figure out what kind of connection he has to the pulver family. >> there are links between the suspect and the family. however, no direct links.

that's still a matter of investigation. >> pulver's family is extremely relieved about the arrest. these past two weeks have been a very difficult time for us and we're hopeful that this development marks the beginning of the end of this traumatic ordeal for our family. of course, it is not over yet. paul douglas peters just appeared in court in louisville. susan candiotti joining us live from there. susan, tell us the latest. what happened in court? >> reporter: well, he came into court wearing leg shackles and those didn't come off. but his handcuffs did. mr. peters was respectful in court and listened closely as a judge explained he was being held on a provisional warrant issued out of australia and that u.s. authorities would hold on to him until australia had a chance to formally file extradition papers and evidently that can take place any time between now and in the next 60 days. >> and susan, how did they manage to track him from

australia to louisville, kentucky? >> reporter: boy, an intriguing set of circumstances. australian police took the e-mail address that was written on the alleged extortion note and they traced it to computers he had used in australia. in turn, that led them to surveillance cameras to see who sent these e-mails. then they traced it to the kind of car he was driving, tracked down his drivers license. then had a name. discovered that that person had gotten on a plane and flown to chicago and on to louisville. and then in turn, looked for any kind of financial records or other records that would indicate where he went and they found that he had wired money to an address in kentucky. it turned out to be his ex-wife's house. so they sent a team over to check things out and there he was standing in his backyard wearing shorts and an oxford shirt and those were the clothe he wore in court today. >> and is there any proof at all that he's connected in any way to this family?

>> reporter: you know, it's hard to say. we know, as you indicated that he's an investment banker. he's a lawyer. and we asked his attorney what -- whether there might be a connection. he had no comment. but he did say this when i asked him, are you saying that he's not the man, the masked man inside that young girl's home? >> i'm not going to share with you or anyone else anything that he's told me. i will tell you that he will contest these charges. it's my understanding that he has no criminal history whatsoever. >> so he's been a law abiding citizen? >> it's my understanding he's an attorney in good standing in australia and an investment banker in australia and has no criminal history. >> reporter: as to whether there's any other connection between him and the family in australia, we have this intriguing bit of information. the e-mail address that was contained in the ransom note used the name of a character in a james cla develop novel called tie pan and the character in

this book was a business rival to who took out his opponents through all kinds of means, including extortion. is there a connection? police are looking into that. if they know, they're not saying. >> susan candiotti with the latest. thank you very much. campaign trails and political rhetoric. yes, everyone it's that time of year begin. but did presidential hopeful, governor rick perry go too far using the word treason? don't go anywhere. have i got a surprise for you! [ barks ] yeah, it's new beneful healthy fiesta. gotta love the protein for muscles-- whoo-hoo! and omega-rich nutrition for that shiny coat. ever think healthy could taste so good? [ woman announcing ] new beneful healthy fiesta.

welcome back. days into his campaign, presidential hopeful governor rick perry is already generating controversy. yesterday in iowa, he warned federal reserve chairman ben

bernanke against using a strategy to stimulate the economy. he suggested that if bernanke were to institute that strategy and start printing money, it would be "almost treacherous or trees news." our cameras were there rolling. >> the federal reserve, i will take a pass on the federal reserve right at the moment to be real honest with you. i know there's a lot of talk and what have you about them. if this guy prints more money, between now and the election, i don't know what y'all would do to him in iowa. but we'd -- we would treat him pretty ugly down in texas. i mean, printing more money to play politics at this particular time in american history is almost treasonous in my opinion. >> all right you heard it there.

joining knee will cain from new york. senior political writer for the dallas morning news, wayne slater in austin and democratic strategist from washington. you covered rick perry in texas for years. is perry going too far or is this just politics today? >> well, it is just politics. whether it's going too far depends what you're talking about. for the primary, the first states, appeal to religious conservatives and tea party activists in iowa, south carolina and north florida, he's not going too far. i can't think of a single tea party activist who would take offense at what he said today. he's just preaching to the choir. tea party folks want two things, ideologically consistent with them. more importantly, someone who talks tough, will take the fight to barack obama and what he's doing is sending a signal, you want to put somebody in the ring against barack obama who is

tough, that's me. >> maria, what do you make of this tough talk? >> well, that might be true in terms of being how to appeal to the extreme right wing of the party and being able to grab and maintain the mantle of tea party front-runner which i know rick perry is desperate o do. the problem is that it's not going to in any way allow the gop, if rick perry does become the nominee, to be able to then appeal credibly to mainstream rational sensible independent and even moderate republicans who are the ones that he's going to need to get if he has any, any want to be able to compete with barack obama in a general election. there's no way they're going to be able to do that. that's the big challenge. >> will, what's your take? >> randi, at the beginning you said will cain from new york. i'm actually from texas. i would say this to wayne. i'm not a tea party activist but i'm a sympathizer. i would take offense to what he said there. the hard thing is no one knows

how to define the tea party. this is what i would say. he said something to score points to score points on the far right. the problem is it will be used against him from the left and becomes political football. we'll play this game where it skirts the substantive issue, which is monetary policy. >> let me ask you though, he's not just talking about the federal reserve. he's also talking about president obama questioning his love of country and his patriotism. i think we have a moment to listen to this sound bite. >>. [ inaudible ] >> you need to ask him. [ inaudible ] i'm saying you're a good reporter, go ask him. >> certainly, very interesting conversation there between that reporter asking him that question. let me go back to you, wayne, very quickly. what do you make of that? >> well, during his reelection race last year they did focus

group testing. it showed that veterans issues, the appeal, this kind of thing works great. they think this is part of their appeal. maria is right, when you get to the general election, it's going to be a problem if rick perry is the nominee. for the moment, he thinks the numbers are there to appeal to the hard right. >> maria, help hr hurt that's all you have time for? >> it will hurt him as a democratic strategist, i'll steal one of president clinton's line and i'm tickled pink that he's running. if this is how he's going to be running, bring it on. >> last word, will. >> how about this. i'll say that i think rick perry is going to be the next president of the united states. >> okay. he's not the way he's talking. >> i'm not cheerleading it. i'm just predicting it. >> we'll check new 2012 and see how it turned out. great to have you all on. thank you. >> thanks, randi. newt gingrich, michele bachmann and elvis presley all in the political ticker today. r.

we'll still go to meetings, make home movies, and learn new things. but how we do all this, will never be the same. she is the greatest thing ever. one little smile, one little laugh. honey bunny. [ babbles ] [ laughs ] we would do anything for her. my name is kim bryant and my husband and i made a will on legalzoom. it was really easy to do. [ spits ] [ both laugh ] [ shapiro ] we created legal zoom to help you take care of the ones you love. go to legalzoom.com today and complete your will in minutes. at legalzoom.com we put the law on your side.

and it's time now for a cnn political update. political editor mark preston joining me now from washington. hi there, mark. what's this about newt gingrich and the super committee. >> while all the other candidates are in iowa, new hampshire, south carolina. newt gingrich was here speaking before the think tank and came out against the super committee. the 12 republicans and democrats tasked with cutting between 1.2 and $1.5 trillion.

why is he against it? he says all the other members of congress are advocating the responsibility. he says it should be done in congress. the super committee is getting too much power. now, check this out. you would think that michele bachmann probably should have done her homework before making this comment. as she was at a rally in south carolina today, she wished elvis presley a happy birthday. problem was it wasn't his birthday. this was the date of his death. michele bachmann making a bigger roar there down there about elvis. i can tell you, i remember when i passed away. i remember being on cape cod as young child. it's a moment in time you never forget. i guess michele bachmann forgot. >> don't they have people that tell them these things. isn't that how it works? >> i think so but it kind of failed. mark preston, thank you. wolf blitzer is interviewing president obama one-on-one. you can see it all on his