cnn.com/the lead. i turn you over now to wolf blitzer. he's in "the situation room" right next door. >> president obama wants a higher minimum wage. and senator rand paul is in the middle of a family feud in the republican party right now. you may be surprised who the senator is now calling, quote, the king of." i'm wolf blitzer. you're in "the situation room." we begin with president obama offering republicans a new grand bargain, as he calls it, one the president says will grow good paying jobs for the middle class. republicans already are

complaining the president's ideas aren't new or grand. let's start with our chief white house correspondent jessica yellin. she's got the latest. >> reporter: wolf, president obama went to tennessee to unveil this new proposal he's calling the grand bargain, but as you know, republicans say it's not new and it's not grand. touring this amazon shipping and packing center in tennessee, president obama offered his seal of approval. the colossal online retailer is adding 7,000 new jobs nationwide, 5,000 at warehouses like this one. >> what we got going here? >> reporter: but all of that is just window dressing for the president to deliver this message. >> if folks in washington really want a grand bargain, how about a grand bargain for middle class jobs? >> reporter: i know, another grand bargain already? but wait, this one's different. there's no fast approaching

deadline or late-night negotiations yet. >> washington heads towards yet another budget debate, the stakes couldn't be higher. >> reporter: we're in the pregame and the president is trying to box in his opponent early. >> we should be doing everything we can as a country to create more good jobs that pay good wages period. today i came here to offer a framework that might help break through some of the political log jam in washington. >> reporter: what's that framework? >> a deal that simplifies the tax codes for our businesses and creates good jobs with good wages. >> reporter: corporate tax reform in return for investment in programs that could create high wage jobs. sounds like two proposals he's backed before. in a statement, speaker boehner's spokesperson agrees.

senate minority lead are mitch mcconnell says the proposal -- >> doesn't exactly qualify as news. it's a further left version of a widely panned plan he already proposed two years ago. >> reporter: wolf, the white house argues it shouldn't matter whether these proposals are new. what should matter is whether they help americans and the white house argues they do. so why unveil this at an amazon warehouse? amazon pays their warehouse workers about $24,000 a year, that's just above the bofpovert line. you can't have everything. wolf? >> thanks very much. we're going to get reaction from the president's address later

this paul from rand paul. now to the afternoon's verdict in the court martial of army private first class bradley manning. he was found guilty of most of the charges. but manning was found not guilty of the most serious charge, including aiding the enemy, which carries a maximum sentence of life in prison. let's bring in our senior legal analyst jeffrey tubin. the charge was he gave information to the enemy, albeit not directly. not guilty on that charge, the most serious charge. were you surprised? >> not really. what manning did has been known for months. the only issue is what crime was is he guilty of? he's pleaded guilty of some

crimes, including one like treason and he was found not guilty of that. >> the sentencing phase will begin tomorrow. it will be up to the judge to decide how many years in prison he will have to serve. the whole message the not guilty verdict on major charge sends to others who may be whistleblowers. >> i don't think there is any message of leniency being sent here. he has been charged with a large variety of crimes, some of which he pled guilty to, some of which he was found guilty of. he is likely to go to jail for decades. i do think the message is the government has to use the statutes for the purpose for which they're intended.

the law involves helping the enemy in war time. that did not fit the crime here. i think the judge was right to aquist him of it. >> do you think the verdict will impact edward snowden, the nsa leaker? >> i do. true he might not be charged with the absolute maximum penalty. eric holder, the attorney general, has already said they will not be seeking the death penalty against him, but he, like manning, has admitted disclosing an enormous amount of classified information. and if he does return to the united states, he, too, is going to be looking at many, many years in prison. as we've seen, he's doing everything he can to avoid coming back here to face charges. >> and coming up, you're going

to hear who paul rand is calling the king of bacon.

i'm gonna have to ask you to power down your little word game. i think your friends will understand. oh...no, it's actually my geico app...see? ...i just uh paid my bill. did you really? from the plane? yeah, i can manage my policy, get roadside assistance, pretty much access geico 24/7. sounds a little too good to be true sir. i'll believe that when pigs fly. ok, did she seriously just say that? geico. just a click away with our free mobile app. we've been able to clear away rthe rubble from the financialf the amcrisis.people, we started to lay a new foundation for stronger, more durable economic growth. but we're not there yet. what we need is not a 3-month plan or even a 3-year plan. we need a long-term american strategy: job security with good wages and durable industries. a good education. reducing poverty. reducing inequality. growing opportunity.

i'm going to keep pushing to make high-quality preschool available for every four-year-old in america it's time for the minimum wage to go up. (cheers) but i won't be able to do it alone, so i'm going to be calling... on all of us to take up this cause. good jobs; a better bargain for the middle class... and the folks who are working to get into the middle class; an economy that grows from the middle-out. that's what we need. (cheers) where over seventy-five percent of store management started as i'm the next american success story. working for a company hourly associates. there's opportunity here. i can use walmart's education benefits to get a degree, maybe work in it, or be an engineer, helping walmart conserve energy. even today, when our store does well, i earn quarterly bonuses. when people look at me, i hope they see someone working their way up. vo: opportunity, that's the real walmart.

a lot of democrats think the president's call for a higher minimum wage is long overdue. it stood at the 5.15 at the end of the clinton administration. then in 2007 and 2009 it was raised in stages until it hit $7.25 an hour. president obama would like to raise it to $9 an hour and some groups think it should be higher than that and are taking theit the streets. >> with congress unlikely to address the minimum wage any

time soon, these protesters hope their action will boost the story line and their flatlining paychecks. they walked off the job in new york. in st. louis, they told mcdonald's what they could do s do with its fare. fast food supporters and their employees are saying their wages are too small to live on. >> transportation, taxes, food, everything is so expensive here, especially rent. >> for many that pay is below the poverty line, and an industry that earns billions can afford to pay workers better. they workers are part of a movement to raise the minimum wage from just over $7 an hour to over $9 and $10 an hour. >> if we were to raise the minimum wage to $10.10 an hour,

that would boost the economy. it's going to fuel a positive cycle. >> reporter: protests this week were planned in seven cities, calling for wages as high as $15 an hour for fast food workers. it could also drive up prices. this big mac cost me $3.99 before taxes. but if minimum wage went up to $15 an hour, a cost of a big mac could go up $65 cents and a big mac meal could go up $1. in d.c. a proposal requiring higher wages at big box real retailer has walmart saying it will cancel construction at three of its stores. >> you lose it on positions for those entry level positions and actually hurt those people you were intending to help who are

maybe living in poverty. >> reporter: and he warns more employers could turn to automation instead of hiring. he said they could do what the chile's restaurant chain is doing and cut out an entire segment of the workforce. they started to eliminate the bus boy position and had servers do the bussing. they said it saved $25 million in labor costs. wolf? >> so will raising the minimum wage help workers? will it kill jobs? bernie sanders of vermont would like to see the wage increase. and douglas doesn't think it would be a good job. doug, what's wrong with raising the minimum wage? >> sounds great until you ask where does the money come from?

you've said let's transfer money from the unemployed to the employed. i can't agree with that. >> do you know who the major welfare recipient of the united states is? it's walmart, which is owned by the walton family, the wealthiest family in america, worth some hundred billion dollars, they are paying their workers $7.25 an hour, $8 an hour, $9 an hour without benefits. you know who is subsidizing walmart? the taxpayers of america because many walmart workers and their kids are on medicaid, they're on food stamps, on affordable housing. it is time for employers in america to pay workers a fair wage. >> who do you think you're going to help if you're going to raise the minimum wage? you're going to give the higher minimum wage to the children of affluent people like me?

>> whoa, whoa, what are you talking about -- >> why don't we have a policy that doesn't hurt jobs. that raise in the minimum wage in 2008 and 2009, they have a 24% teen-ager unemployment rate. >> first of all, can i get a word in here? let's be real. the real factor is that most people working for low wages are not children. that's a bogus argument. the reality is that most low-wage workers are adults. and if you want to help kid, make sure their parents are earning a decent wage. let me take something a step further. most republicans now, wolf, we have reached such a right-wing degree that most republicans now are not only opposed to raising the minimum wage, they want to abolish the minimum wage. >> let me ask douglas

holtz-eakin, do you want to apolish the minimum wage? >> no. in the end it does not answer the question where does this money come from? the setup was great. it said $32 billion in additional spending. but where does that money come from? >> first of all, let be clear. what we are seeing now and what raising the minimum wage would dork it, it's not only go from $7 an hour to $9 an hour. the great problem now is income inequality. the gentleman here talks about the need for jobs. i have a proposal, others have proposals to create millions of jobs. does our friend agree with that?

no, probably. let's put people back to work and raise the minimum wage. >> and you i both spend time in d.c. how does the minimum wage proposal that drove walmart out of the market, took low income residents out of that's jobs help develop the city. >> we cannot continue to be black mailed because they are the wealthiest family in this country. you tell me that you think it's right that their workers, their workers are supported by tack pairs in this country in terms of medicaid, stood stafood stame like. >> are you proposing we take people off food stamps because they work for a company you don't like? >> no, i'm saying they've got to start paying their workers a living wage, not starvation

wages, pay health care for their workers, not allow them to go on medicaid. >> if there was another company that wasn't walmart, would you think it was a good idea for them to raise the minimum wage? >> i think our friends at mcdonald's and burger king can start paying a decent wage as well. >> where will the numbers come from? these are not huge profit margins. it's not like they're sitting on piles of cash. i understand that people would like to make more money. i'd love to make more money, you would. but you have to answer the practical question, where would it come from and at what cost? it's going to hurt other low-income americans. >> my state of vermont has i believe the third highest minimum wage in the country, $8.60 an hour. i want to see the national minimum wage at $10 an hour. we have the fourth lowest

unemployment rate in this country. this business that if you raise the minimum wage, all these jobs are going to disappear, historically i don't believe it's true and i don't believe it's true today. it's time to ask the wealthy to pay their fair share of taxes, we need a jobs program and, c, we need a higher minimum wage. >> we need structural reforms that will get us that, no question. education and a decent savings system for private citizens and the minimum wage is the wrong tool for these problems. >> a quick question and answer to both of you. doug, corporations, should they do more to help the workers who are making low-paid minimum wage? we checked, mcdonald thompson's salary in 2012 million. >> that was the coe of --

>> because bernie sanders doesn't think it's fair. >> i'm sure he doesn't. when you hear these big salaries, you have to say what responsibilities do they bear? so there is a market for -- i think the serious question is whether you want to continue to recreate the 1930s and make the corporations the vessel of the social welfare. >> are you willing to pay 68 cents more for your big mac if the minimum wage goes up and it's double? >> we can talk about the health values of a about big mac other time. the issue is what you touched on, you have a ceo making $13 million a year paying starvation levels to its workers. we need to make sure nobody in this country is forced to work for starvation wages.

>> thank you very much. a good solid debate. >> just ahead, ivan watson with a firsthand look at north korea as you've never seen it before. plus, alarming new details about what the train driver was allegedly doing only seconds before that deadly crash in spain. lots of news happening today right here in "the situation room." two tiny reasons to get our adt security system. and one really big reason -- the house next door. our neighbor's house was broken into. luckily, her family wasn't there, but what if this happened here? what if our girls were home? and since we can't monitor everything 24/7, we got someone who could. adt. [ male announcer ] while some companies are new to home security, adt has been helping to save lives for over 135 years. we have more monitoring centers, more of tomorrow's technology right here today, and more value. 24/7 monitoring against burglary, fire,

and high levels of carbon monoxide starting at just over $1 a day. and now get adt installed for just $99. isn't your family worth america's number-one security company? current adt customers call for special upgrade saveings. after buying two of everything, it was nice to only need one security system -- adt. [ male announcer ] get adt installed for just $99. and ask about adt pulse, advanced home management here today. adt. always there. [ chainsaw buzzing ] humans. sometimes, life trips us up. sometimes, we trip ourselves up. and although the mistakes may seem to just keep coming at you, so do the solutions. like multi-policy discounts from liberty mutual insurance. save up to 10% just for combining your auto and home insurance. call liberty mutual insurance at... to speak with an insurance expert

and ask about all the personalized savings available for when you get married, move into a new house, or add a car to your policy. personalized coverage and savings -- all the things humans need to make our world a little less imperfect. call... and ask about all the ways you could save. liberty mutual insurance -- responsibility. what's your policy?

the driver of the spanish train that derailed last week was on the phone with railway staff at the time of the crash. this according to court officials citing information from data recorders. the train was going 95 miles per hour when the accident happened, nearly twice the speed limit. authorities have charged the driver with 79 counts of homicide and an undetermined amount of injuries. and human error is likely what caused propane tanks to explode. the last injured eight plant workers. according to police no one else was hurt. >> an earlier evacuation order for the area has since ben lifted. more than 50,000 20-pound cylinders of propane were at that facility.

and an outbreak of a cyclospora has been linked to prepackaged salad mixes. >> and guess who had breakfast together this morning. here's a hint, they didn't release a picture of it but we'll have the latest coming up. i'll also be joined by senator rand paul of kentucky. he's calling one of his potential republican rivals the king of bacon. this kraft dinner from walmartis over $6.50 a meal. is less than $3.10 a serving.

replacing 1 fast-food dinner a week, saves your family of 4 over $760 a year. save money. live better. walmart. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend?

no. [ male announcer ] share more. save more. at&t mobile share for business. ♪ loses his computer, exposing thousands of patient records to identity theft. data breaches can happen that easily. we don't believe you should be a victim of someone else's mistake. we're lifelock. we constantly monitor the web so if any of your personal information is misused, we're on it. ♪ ow. [ male announcer ] call 1-800-lifelock or go to lifelock.com today. icaused by acid reflux disease, relieving heartburn,felock relief is at hand. for many, nexium provides 24-hour heartburn relief and may be available for just $18 a month. there is risk of bone fracture and low magnesium levels. side effects may include headache, abdominal pain, and diarrhea. if you have persistent diarrhea, contact your doctor right away. other serious stomach conditions may exist.

don't take nexium if you take clopidogrel. relief is at hand for just $18 a month. talk to your doctor about nexium. hihing, helicopters buzzing, and truck engine humming. sfx: birds chirping sfx: birds chirping happening now, a family feud in the republican party.

hear who senator rand paul is calling the king of bacon. and we're going to show you a side of north korea you have never seen before. and an extraordinary discovery in a parking lot, just a few feet from where the long lost remains of england's king richard iii were found. i'm wolf blitzer. you're in "the situation room." hillary clinton continued eating her way through the political headlines today. she followed up lunch with president obama by having breakfast with joe biden this morning. let's bring in our national correspondent jim acosta. he's been looking into the menu. >> talk about a power breakfast, wolf. people close to both hillary clinton and joe biden like to say the two are close friends, but there are more than enough signs that both of these friends want the same job promotion. it was a meeting so cloaked in

secrecy that both aides to joe biden and hillary clinton would only disclose what they had for breakfast at the vice president's home. but on "new day," paul begala said -- >> they are good friends and they do get together. >> we're putting to the a lot of envelopes with bumper stickers. we've had 65,000 requested across the country. >> reporter: she's already inheriting a volunteer army in form of the staffers and volunteers over at the independent ready for hillary super pac, who sprang out of nowhere in recent months and just announced they've raised more than a million dollars this year to support a clinton campaign. >> we do believe if she knows how much support she has, how

could you say no? >> reporter: biden has repeatedly hinted he also has his eyes on the presidency, recently telling gq magazine, i can die a happy man never having been president of the united states of america, but it doesn't mean i won't run. there is one potential complication for clinton, in the form of her long-time aide huma abedin, whose husband anthony weiner is running for mayor of new york city, despite his history of sexting raunchy pictures to women. >> would you like to see the clintons be back, back in the white house? >> well -- >> what do you think? >> that's very political question. >> at that moment the owner

spotted reinus. >> this is personal, it's not political. we love huma and she's going through pain. >> reporter: democrats still like how they stack up in 2016. and then there's the growing sense among key democrats that if clinton runs, biden won't. >> a lot of people believe that. jim accososta reporting for us. >> and things are heating up between rand paul and the new jersey governor chris christie. senator rand paul is joining us. he's a member of the foreign relations committee, he has a busy job up there on capitol hill. senator, looks like the war of words between you and governor christie heating up once again today. i'd like to you listen to what the new jersey governor said

about you today. >> so if senator paul wants to start looking at where he's going to cut spending to afford defense, maybe he should look at cutting the pork barrel spending that he brings home to kentucky at $1.51 for every dollar and not look at new jersey where we get 61 cents for every dollar. maybe senator paul could deal with that when he's trying to deal with the reduction of spending on the federal side but i doubt he would because most washington politicians only care about bringing home the bacon so that they can get reelected. >> are you going to take his advice, senator? >> this is the king of bacon talking about bacon. you know, we have two military bases in kentucky and is governor christie recommending we shut down our military bases? he wants to be this great champion of national defense. what does he want to do, shut down military bases in kentucky? in order to have enough money for national defense, you have

to be willing to cut spending in other places. and governor christie and others have been part of this gimme, gimme, gimme, gimme all this money. we could have done the relief for sandy in a responsible way. i propose we do it $9 million a year and offset that by budget cuts. i think we can take care of our country in a natural disaster but only if we're not spending billions to -- where is the money going to come from if he's not willing to cut anywhere? i am willing to cut. for him to accuse me of pork la barrel spending, i'm probably the most physically conservat e conservative. he's making a big mistake

picking a fight with other republicans because the republican party is shrinking in new england and in northeast part of our country. i'm the one trying to grow the party by talking about libertarian ideas of privacy and the internet and attacking me isn't helping the party. he's hurting the party. >> he's obviously angry at you for twice voting against the supplemental assistance package for new jersey residents as a result of the sandy super storm, even though you would support federal assistance to kentucky residents who suffer from a tornado or from a flood, for example. >> well, where he's mistaken is that i did vote for sandy assistance. i voted to make it year by year. hi my own amendment, in fact, to sandy, which would have given it year by year, which would have had adequate oversight, which would have eliminated fisheries in alaska and all the other pork barrel stuff they stuck on the bill. >> are you willing to take the

same position, senator, when it comes to emergency assistance in kentucky? >> absolutely. if we have a disaster in kentucky, i will vote for the aid but vote to offset the aid with spending cut in other parts of the budget. >> he went after you earlier suggesting you were only interested in what he called the esoteric debates. i guess here's the question. are we on the eve of a republican contest right now for the presidential nomination let's say between you and christie? you know, who knows. what i would say is that i want to grow the party bigger. so i don't think the bill of rights is esoteric. i don't think the fourth amendment is esoteric and i think the idea that we should have a right to privacy is not esoteric to a lot of people in our country. ask any people who have cell phones whether they want the government to be willy-nilly be going through all of their records without a warrant. i think most americans with say,

say, i'm okay about spying on terrorists but i'm not so okay about spying on americans. so i think he's on the wrong side of history here and i think they're getting desperate because our movement within the republican party is growing and the old stale moss-covered, you know, let's go bomb everybody into oblivion, that kind of attitude in the republican party is shrinking. >> peter king, the congressman for new york who is also thinking of running for the presidential nomination, he goes after you on many of the securi security. >> we can have a healthy debate with two legitimate candidates, not fringes like rand paul. >> fringes, that's what he's calling you. >> well, what i would say is it's a similar wing of the party. it's the tax and spend, liberal swing of the republican party. they're all for blowing up stuff, they're all for getting involved in wars but they're not

too concerned with fiscal responsibility and balanced budgets. there's nobody up here who is more fiscally conservative or who has produced pore balanced budgets that be i have. i also in doing so have set out the national defense as the number one priority of our country. it is constitutional and i've said absolutely without question i'll do everything within my power to save money in other parts of the budget in order to have a strong information defense. >> we'll hear much more from senator rand paul in a few minutes. later, i'll compare my trip to north korea with the cnn correspondent ivan watson, who is just back from a rare visit himself. has anything changed over the past two and a half years? the chevy malibu offers

an impressive epa estimated 34 mpg highway... and during chevy's model year-end event you're getting a great deal on our remaining 2013 models, but they're going fast. what are you doing? moving in. before someone else does. ohhh...great. [ male announcer ] the chevy model year-end event. the 13s are going fast, time to get yours. right now, get this great lease on a 2013 chevy malibu ls for around $169 a month.

the healthcare law gives us powerful tools to fight it... to investigate it... ...prosecute it... and stop criminals. our senior medicare patrol volunteers... are teaching seniors across the country... ...to stop, spot, and report fraud. you can help. guard your medicare card. don't give out your card number over the phone. call to report any suspected fraud. we're cracking down on medicare fraud. let's make medicare stronger for all of us.

now more of my interview with senator rand paul of kentucky. i want you to respond to what the president said today in chattanooga about a grand bargain. listen to this. >> so, again, here's the bottom line -- i'm willing to work with republicans on reforming our corporate tax code as long as we use the money from transitioning to a simpler tax system for a significant investment in creating middle class jobs. that's the deal. >> are you with him on that deal. >> i have a counterproposal for him. i said we should reduce the taxes on corporations doing business overseas and i'm willing to put all that money

into infrastructure. if we would tax corporations at 5% on foreign profit, bring it home and put that money into the transportation fund, i have an amendment on that. it would double the amount of mon money. i see that is good for the nation. if he wants to expand government, government is already too big. i'm willing to lower the corporate income taxes but we shouldn't have to trade something really bad like expanding government. lowering the corporatin come tax would help the middle class. have i no idea what his speech making means a lot of times. >> i think he wants to spend more on investments. that's the pain point of his speeches the last couple of

days. you and a few other republican senators came out with a new initiative to help some of the minority and poor to get into the charter schools. what exactly are you seeking? >> i think every kid in washington, d.c. should have the same choice the president has for his children. the president has a lot of money so he can send his kid to an elite private school in d.c. i think the poorest kid in the poorest neighborhood should have the same choice. so i would let them have vouchers. i would hope the president can come out and say that it on be fair that of kid in the community gets the same choice his kids get. i'm for attaching title 1 funds, the federal money and say let the kid take that to the school of their choice, which are charter schools, that are able to have more innovation. i'll for all of the above on

school choice. >> coming up, shopping for tv. plus an extraordinary discovery in a porking lot from where the long lost mains of a king stood. [ man ] look how beautiful it is. ♪ honey, we need to talk. we do? i took the trash out. i know. and thank you so much for that. i think we should get a medicare supplement insurance plan. right now? [ male announcer ] whether you're new to medicare or not, you may know it only covers about 80% of your part b medical expenses. it's up to you to pay the difference. so think about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they help cover some of what medicare doesn't pay. i did a little research.

with a medicare supplement plan, you'll be able to stay with your doctor. oh, you know, i love that guy. mm-hmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. and there are no networks. is this a one-size-fits-all kind of thing? no. there are lots of plan options. it all depends on what we need and how much we want to spend. [ male announcer ] call now to request your free decision guide. it could help you find an aarp medicare supplement plan that's right for you. what happens when we travel? the plans go with us. anywhere in the country. i like that. you know what else? unitedhealthcare insurance company has years and years of experience. what do you say? ♪ i'm in. [ male announcer ] join the millions already enrolled in the only medicare supplement insurance plans endorsed by aarp. remember, all medicare supplement plans help cover some of what medicare doesn't pay and could really save you in out-of-pocket medical costs.

you'll be able to choose your own doctor or hospital as long as they accept medicare patients. and with these plans, there could be low or no copays. you do your push-ups today? prepare to be amazed. [ male announcer ] don't wait. call today to request your free decision guide and find the aarp medicare supplement plan to go the distance with you. go long.

north korea certainly one of the most mysterious and reclu reclusive parts of the world. i got a chance to go there about two and a half years ago.

iv ivan wassen was just there. look at what he saw. >> reporter: this is the first time we were brought to a shop here in pyongyang. they are fixing glasses. and this store has a remarkable variety of goods for sale. look over here. there's stationary and makeup on this side. more glasses over here. we've seen customers coming in. and we're going to swing around to the high-tech side of things. a lot of tvs for sale. this is a famous north korean girl band being displayed on the television here. we've got some portable computers, some tablets as well. apparently for sale. and something that really came as a surprise for us, there is a certain kind of cash card here in north korea that has been exhibited to us. i had no idea there was anything like that working here. we don't know who exactly gets

to come and shop typically of the north koreans in a store like this, but if they need it, there are diesel generators for sale as well as honda motorbikes. i'm now taking pictures of the arch of triumph with my cell phone. and this is something that's completely new, completely new for foreign journalists traveling to north korea. our cell phones were not taken away from us. in fact, we were allowed to purchase local sim cards that provided data access. we were able to send out pictures. that's completely new for foreign visitors. however, it's important to note that while we're seeing that north koreans have cell phones, they do not have any access as far as we know, ordinary north koreans to either e-mail, internet, or international calls. >> ivan watson is joining us

now. he's back in istanbul. ivan, a fascinating trip. we covered your visit every step of the way. some major changes. when i went there, they confiscated cell phones, all that stuff, as soon as you got to the airport. there you see picture of me at the airport. did they have a problem with reporters coming in with cell phones? >> translato >> reporter: not at all. there are a lot of decisions made that sometimes seem arbitrary. and little explanation as to the reasoning or the reasons why behind it. for instance, every day our trips were very strictly controlled. we would only find out minutes before we get on the bus where it is we'd be going and what it is that we would be seeing. even when these were major organized government events. they just were not really telling us a lot during these couple of days that we were in

the country. >> i take it they gave you no opportunity to get close to the leader kim jong-un. this was no opportunity like dennis rodman, the former nba star. he hung out with kim jong-un. the journalists who were allowed in in the past few days, you were kept pretty far away, right? >> reporter: initially we weren't even allowed to film him. but then that changed as the days went on. we saw him at event after event. and this was kind of odd. he just opened a new museum he built. it looked like a multimillion dollar installation dedicated to the history of the korean war or the north korea's version of that history. while i was kind of wandering the halls looking for a bathroom, suddenly i came across kim jong-un about a distance of 15 to 20 yards from me walking directly towards me. it was the last thing i expected

to see after all of this government control and security guards really treated us like children and pushed us around for the previous days. and i ran to get our camera man david holley who managed to get his camera up in time and this appeared to be a new thing, certainly for a north korean leader taking a tour right through a gaggle of foreign journalists. someone called out a question to him what is your message for the rest of the world. he declined to answer, but he did get very up close and personal with the camera lens for a period of about 20 seconds. that was really unprecedented for a north korean leader. >> interesting stuff. good stuff in north korea. i know you enjoyed the visit. we'll see what comes next on the korean peninsula. ivan watson reporting for us. just ahead at the top of the hour, a jump start for middle east peace talks in washington with u.s. hopes for a major deal in a matter of months. but is that a realistic goal? i'll ask the israeli ambassador

to the united states. plus a discovery in a parking lot from where king richard iii were found. so then the little tiny chipmunks go all the way up... ♪ [ female announcer ] when your swapportunity comes, take it. ♪ what? what? what? [ female announcer ] yoplait. it is so good. what? what? i don'without goingcisions to angie's list first. with angie's list, i know who to call, and i know the results will be fantastic! find out why more than two million members count on angie's list. angie's list -- reviews you can trust. it's hard to describe, because you have a numbness, but yet you have the pain like thousands of needles sticking in your foot. it was progressively getting worse, and at that point i knew i had to do something. once i started taking the lyrica the pain started subsiding. [ male announcer ] it's known that diabetes damages nerves. lyrica is fda approved to treat diabetic nerve pain.

lyrica is not for everyone. it may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, tired feeling, or skin sores from diabetes. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. ask your doctor about lyrica today. it's specific treatment for diabetic nerve pain. humans. even when we cross our "ts" and dot our "i's", we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human,

and so are we. we also offer new car replacement, so if you total your new car, we'll give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, the repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy? an extraordinary discovery

in a parking lot just a few feet from where archaeologists found the remains of long lost king richard iii. now they found a mystery coffin. here's dan rivers. >> reporter: what we're about to tell you is truly astonishing. this was the moment the world learned that this skeleton found in a parking lot in the english city of lester was king richard iii. the last monarch to die on the field of battle. >> now is the winter of our discontent -- >> reporter: immortalized by shakespeare, popularized by sir laurence olivier. now a stone's throw away from there, another burial. the whole thing shrouded in mystery. >> it's probably a very high status burial.

there are three potential candidates. two of them are called provincials. one of them is peter swinestale of nottingham. the other possibility is it's somebody called william demoton. >> reporter: names the trip off the tongue like richard iii. although if this contains organic material, it might be a treasure-trove of the medieval world. but it's the discovery that captured the world. his bones are being carefully tested for clues about his life. >> he's still at an undisclosed location as we finish all of the scientific analysis associated with this. the plan next year in may of next year, we hope, the remains will be handed over to the cathedral for the reburial there. >> reporter: his reconstructed

face, a window onto the past from the grave that continues to yield incredible discoveries after hundreds of years forgotten under an english city. dan rivers, cnn. also out of britain, the new royal baby prince george alexander louis may have a new nickname. his grandfather prince charles hinted the heir may soon be called georgie. happening now, the lesson for leakers of america's secrets. now that an army judge has found bradley manning not guilty of aiding the enemy. also after new middle east pace talks continue, the u.s. setting an ambitious deadline for the deal. i'll have the ambassador of the united states if that is doable. and a housewives husband and wife are free on bond from court charges. i'm wolf blitzer.

you're in "the situation room." private first class bradley manning is getting ready to learn his punishment for the largest leak of u.s. information in u.s. history. but cleared him of the most serious charge. the judge rejected the prosecution's claim that manning aided al qaeda by sharing military secrets with the group wikileaks. our correspondent is joining us live. he's been covering the court-martial over at fort meade in maryland. so tell our viewers, you were inside the courtroom. how it all went down, chris. >> reporter: wolf, basically i was sitting about ten feet away from private manning when this sentence came down. and basically he snapped to attention wearing his full dress blues, possibly one of his last acts truly as an american soldier.

he didn't say anything, didn't react as the judge announced her not guilty verdict. but his attorney did have a slight smile as he heard those two words not guilty for that most serious charge of aiding the enemy. but at the end, after the end of the five-minute hearing as the judge adjourned the hearing, manning turned to his attorney, said something very low, and did seem to have a slight smile on his face. perhaps some relief that he wasn't convicted on the most serious charge. obviously could have sent him to prison for life with no parole. >> the whole notion of this not guilty verdict, was there an explanation -- did the judge offer any explanation? or did she simply say not guilty? >> reporter: she simply said not guilty. very, very short hearing. about five minutes. but basically, wolf, there's been some contention about whether prosecutors have actually proved that there was really damage done to national security. the defense has contended that

there was none, and they have said there was no real evidence -- specific evidence presented, that there was true damage done to the u.s. because of these leaks. beyond the embarrassment of officials who saw their private cables become public. of course manning was -- in total he faces about 136 years in prison. what's going to happen now tomorrow on wednesday, prosecutors will put out their argument of what they think he should serve. the defense will do the same. and the judge is going to come up with a number. she could go under some of the most serious years, something as ten years she could give him three to four of that. she could let some sentences run concurrently. or string them out. it's her discretion. but she's going to come down with a specific number. that's what bradley manning is going to serve. >> over at fort meade.

thanks very much. still ahead, bradley manning, hero or trader. a wikileaks member and congressman are standing by for this. let's go to florida now. huge explosions on a propane tank refilling plant. many said it felt like bombs were going off. eight workers were hurt in the blast in the fire last night. adriana howser is in florida. >> reporter: wolf, this community here in tavaras, florida, are happy there is no fatality in this circumstance. now they're just waiting for answers. they want to know what caused this incident. >> did you see that? >> reporter: while most residents were going to bed or already asleep, a series of explosions rocked the quiet city of tavaras in central florida.

the blue rhino propane plant went up in flames around midnight. authorities feared the worst. there were some injuries among the workers. but miraculously, no one was killed. >> eight were transported to local hospitals in the area. at this point according to the blue rhino management, everyone whom they knew to be there last night that was scheduled to work has been accounted for. >> reporter: a spokesman for blue rhino said 24 workers were inside the plant at the time of the explosion. officials say they were actively manipulating some of the 53,020 propane cylinders that were inside the plant. the focus now shifts to the investigation. and there are already some theories. >> we don't think that there was any act of sabotage or anything like that. we honestly think it was probably an equipment failure with a combination of maybe human error from one of the

staff. >> reporter: fire chief richard keith says more than 60 firefighters and 24 emergency workers responded. the fire was under control just hours after it started. we were allowed to tour the facility. we're inside blue rhino's propane plant. as you can see behind me, there's 53,000 cylinders according to the fire department many of them exploded last night. it is not known how many of the cylinders exploded in the facility. but tavaras mayor said he found comfort in knowing this could have been much worse. >> i'm relieved that as of right now and last night nobody had gotten killed at this site. >> reporter: a feeling everyone in this community shares. wolf, we know osha is assisting in the investigation and so is the state fire marshals. both agencies were here earlier today looking into what went on

late last night. back to you. >> all right. thanks very much. another series of fiery explosions, this time at a biofuels plant in kansas. flames and thick black smoke were seen shooting up into the air this morning. fire crews say corn oil was burning inside. a dozen people were at the plant when the fire started. but officials say they all got out safely. we're getting new details of a frightening scene in kansas city, missouri. an suv slammed into a cadillac sending it crashing through the front wall of a day care center with about 40 children inside. three children were injured including two were trapped under the car. an adult was also hurt. but police say none of the injuries are life threatening. they say the driver of the suv is elderly. the driver of the cadillac ran away from the scene. a spanish court says the driver of the high-speed train that derailed last week was on the phone with railway staff at the time of the crash. we're told that information comes from a train's data

recorder. the court also announced that the train was going 95 miles an hour when it careened around a curve and crashed. 79 people were killed. the driver has been charged with homicide and causing injury due to professional recklessness. up next, new talks and new hope for a middle east peace deal after so many years of frustration. i'll ask israel's ambassador to the united states what if anything is different this time. and did the judge get it right? should bradley manning have been acquitted of aiding the enemy? we're going to hear two very different views. ♪ i think farmers care more about the land

than probably anyone else. we've had this farm for 30 years. we raise black and red angus cattle. we also produce natural gas. that's how we make our living and that's how we can pass the land and water back to future generations. people should make up their own mind what's best for them. all i can say is it has worked well for us. delivering mail, medicine and packages, yet they're closing thousands of offices, slashing service and financial losses,servicg but not for reasons you might think. the problem? a burden no other agency or company bears. a 2006 law that drains $5 billion a year from post office revenue while the postal service is forced to overpay billions more into federal accounts.

congress created this problem, and congress can fix it.

long stalled middle east peace talks have now resumed here in washington with the u.s. prodding both sides to follow an ambitious timeline. the secretary of state john kerry was flanked by the palestinian and israeli negotiators as he laid out the goal. >> our objective will be to achieve a final status agreement

over the course of the next nine months. >> john kerry saying a final status agreement over the next nine months. michael lauren is here. is that a firm deadline that a deal has to be worked out over the next nine months? >> good to be with you, wolf, again. that is our desire. prime minister netanyahu is committed to that time frame and believes if the palestinians negotiate and remain at the table, that's the most important situation. yes we can reach that historic agreement within nine months. >> you think that's doable? >> we do. >> you're optimistic that it's going to happen? >> we believe, again, that if the palestinians stay at the table -- that is the crucial condition in which will enable us to reach the peace agreement paced on tuesday. if they stay and negotiate with good will, yes. within nine months we can work out all of the core issues. and secretary of state talked about all thel core issues

whether it be territory, security. >> i know you released some palestinian prisoners to set the stage for these negotiations. are you ready to over these nine months take other measures to reassure the palestinians of your good faith for example freezing settlement activity. >> the palestinian prisoners will be released over a stage period as the palestinians remain at the table and keep on negotiating. and as they remain at the table, we will as of the past, we will consider other measures to builds confidence with the palestinians. kerry has talked about a $400 billion program to spur or jump start the palestinian economy which we also think will create the right conditions in moving forward in the peace process. >> listen to this clip from what secretary john kerry said today. listen to this. >> we have worked very closely with our palestinian friends to help develop palestinian

security capacity. we cannot forget that israel will also benefit palestinians next door. the israeli government has recognized this, which is why it will be taking in the next days and weeks, a number of steps in order to improve conditions in the west bank and in gaza. >> so what does he mean that you're going to be taking a number of steps in the next few days and weeks to improve conditions not only in the west bank but in gaza as well? >> secretary of state kerry has set down a fundamental ground rule to the negotiations. and that is everything that goes on in the negotiations stays in the negotiations and he'll be the only source reporting what is going on in those. and we are very much going to respect that ground rule. i'm not going to go into great detail, but what i can say is in the past we have discussed with the united states and palestinians ways in which to build confidence. ways to enhance living conditions in the west bank. >> and gaza as well? >> well, in the past we have

eased restrictions on gaza in accordance with the hamas de facto government there to abide by a cease fire. we had no interest in hurting the people of gaza but hamas was shooting rockets at us. it was difficult to ease restrictions. >> but they're not doing that now. >> right now it's quiet. >> so will you ease the encirclement of gaza? >> we're not going to go into detail of what's going on in the negotiations. but our goal is to increase and enhance in the territory to create the right atmosphere for going forward. we want peace and we want to create the right environment for getting there. >> do you envision a day where hamas would join the other palestinians in this negotiation with israel? >> the united states and the international community have been very clear about what the conditions would be for hamas to join those negotiations. they have to disavow terror.

they have to recognize israel. up to now they have categorically rejected all -- >> do you think it might change them? >> i haven't seen any sign of it. but we do hope that some day as we strike and store a peace agreement with the west bank and we see that peace yields great dividends, the people in the west bank and gaza will say we want what they want in the west bank and they'll join the peace process. >> the region is in turmoil right now in syria. jordan's got major problems. lebanon, iraq, egypt obviously a problem. from israel's standpoint, should the u.s. continue to provide $1.5 billion a year in assistance to the new government in egypt? >> well, our primary interest in egypt is to maintain the peace treaty. >> and they are. >> and they are for more than three decades -- >> president morsi did as well. >> it's vital for israel's security and egypt's security and the entire region.

you'll remember that that american aid was extended to the egyptians under the context or in the context of the peace treaty. so we want to maintain the peace. >> so you basically -- as far as the aid, u.s. military aid to egypt, you want it to continue? >> we want to maintain the peace and would like america's influence to continue as well. we think it's a positive influence. >> are you encouraged by this new government in cairo? >> we're not going to get involved in passes egypt. we want to maintain the peace. we do want security, peace, prosperity, and democracy for egypt. >> you know, we've been going through our cnn archives. we're restarting crossfire later this year. in the fall. and there's an old interview in there, 31 years ago. former president richard nixon at the time speaking about a conversation that he had with david bengurian. you're a historian. you'll appreciate this. richard nixon on crossfire 31

years ago. >> i think it's a significant thing to note. i quote him in my book. the conversation with that marvelous man back in 1959. one that eisenhower called a testament prophet. in which he said the only reason that israel is unique that it has a right to exist is because it is jewish and democratic. he said if we get more territory, we will no longer be jewish, and we can no longer be democratic. >> that was pretty -- because you hear the same thing right now 31 years later. the founding prime minister of israel. he made a decent point, didn't he? >> i think prime minister netanyahu has said the same thing. in order to preserve israel as a jewish state, it's predicated on having a jewish majority. we have to try to seek historic peace with the palestinians based on a palestinian nation state and a jewish nation state. i think that's the same vision

that he had. and what netanyahu now subscribes to. >> nothing has changed over these past 30, 40 years. the same issues are still basically at play. >> i've been a middle east historian for more than three decades, wolf. i'll tell you very little changes. in my past research i showed thomas jefferson went to war in the middle east against libya and wanted to create a democracy there. history doesn't always repeat itself, but it certainly does rhyme. and many of these themes do play out. and yes, i think bengurian was right. and netanyahu is right. yes, we have to try to seek that peace based on two states for two peoples. >> mr. ambassador, thanks very much. >> always a pleasure. >> we've enjoyed the palestinians to join us in the room. coming up, is he an american hero or a trader to his country?

we'll have much more on the bradley manning verdict. plus an inmate's wild escape from jail all caught on tape. ( bell rings ) they remind me so much of my grandkids. wish i saw mine more often, but they live so far away. i've been thinking about moving in with my daughter and her family. it's been pretty tough since jack passed away. it's a good thing you had life insurance through the colonial penn program. you're right. it was affordable, and we were guaranteed acceptance. guaranteed acceptance? it means you can't be turned down because of your health. you don't have to take a physical or answer any health questions. they don't care about your aches and pains. well, how do you know? did you speak to alex trebek? because i have a policy myself. it costs just $9.95 a month per unit. it's perfect for my budget. my rate will never go up. and my coverage will never go down because of my age. affordable coverage and guaranteed acceptance?

we should give them a call. do you want to help protect your loved ones from the burden of final expenses? if you're between 50 and 85, you can get quality insurance that does not require any health questions or a medical exam. your rate of $9.95 a month per unit will never increase, and your coverage will never decrease -- that's guaranteed. so join the six million people who have already called about this insurance. whether you're getting new insurance or supplementing what you already have, call now and ask one of their representatives about a plan that meets your needs. so, what are you waiting for? go call now! we'll finish up here.

let's take a quick look at other top stories in t"the situation room" room right now. they say it's almost impossible to live on the current minimum wage. industry groups say raising the minimum wage will force to turn to automation. strike two for new york

city's ban on the sale of large sugary drinks. an appeals court says the city's board of health isn't authorized to enact the ban. calls the restriction arbitrary. michael bloomberg who spearheaded the decision, a temporary setback. rising mortgage rates don't seem to be taking the steam out of the housing market's rebound. a key report says home prices in may were up 12.2% over the previous year. that's the biggest jump since 2006. and some of the biggest increases were in markets hit hardest when the housing bubble burst. a bold jailbreak in central arkansas. a suspected armed robber jumped through a service window while another inmate distracted the guards. one of the guards jumped behind the suspect. officials describe the suspect as violent, dangerous, and extremely aggressive.

up next, the soldier behind the bombshell verdict. bradley manning and his future. he could spend much of the rest of his life behind bars. [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪ at&t thto fight chronic.siness. osteoarthritis pain.

to fight chronic low back pain. to take action. to take the next step. today, you will know you did something for your pain. cymbalta can help. cymbalta is a pain reliever fda-approved to manage chronic musculoskeletal pain. one non-narcotic pill a day, every day, can help reduce this pain. tell your doctor right away if your mood worsens, you have unusual changes in mood or behavior or thoughts of suicide. anti-depressants can increase these in children, teens, and young adults. cymbalta is not for children under 18. people taking maois, linezolid or thioridazine or with uncontrolled glaucoma should not take cymbalta. taking it with nsaid pain relievers, aspirin, or blood thinners may increase bleeding risk. severe liver problems, some fatal, were reported. signs include abdominal pain and yellowing skin or eyes. tell your doctor about all your medicines, including those for migraine and while on cymbalta, call right away if you have high fever, confusion and stiff muscles or serious allergic skin reactions like blisters, peeling rash, hives, or mouth sores to address possible life-threatening conditions. talk about your alcohol use, liver disease and before you

reduce or stop cymbalta. dizziness or fainting may occur upon standing. take the next step. talk to your doctor. cymbalta can help. humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call... and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423.

call... today. liberty mutual insurance -- responsibility. what's your policy? happening now, the verdict is in, but how will bradley manning be judged by the world for leaking america's secrets? hero or traitor? stand by for a major debate. plus, d.c. police trying to connect the dots between several cases of vandalism at local landmarks. we have new information about the suspect. and stars of "the real housewives" in the fight of their lives. we're there for their day in criminal court. i'm wolf blitzer. you're in "the situation room." this just coming into "the situation room" right now. wikileaks founder julian assange responding to the manning verdict. as we've reported the soldier was found not guilty of aiding

the enemy after turning over a treasure-trove of classified data to wikileaks. but a military judge convicted manning of most of the other charges, lesser charges he faced including theft and espionage. >> this is the first-ever espionage conviction against a whistle blower in the united states. it is a dangerous precedent and an example of national security extremism. it is a short sided judgment that cannot be tolerated. and it must be reversed. it can never be the conveying true information to the public is espionage. >> more on manning and the verdict. i know you've been looking into his background. >> bradley manning's story has arced with the winding down of america's two major wars. he and wikileaks were put on the map in 2010 when a video was released. manning was arrested later that year and we've since got

information on his baktd that might help us understand how the got to this point. >> reporter: he was once on suicide watch in a military brig. now private bradley manning as avoided the verdict of aiding the enemy. but it's still possible he could spend the rest of his life in prison. before all this broke, before he was accused of the largest intelligence league in u.s. history, manning according to friends and acquaintances struggled to fit in wherever he went. born in oklahoma, his parents divorced in 2001 and manning moved with his mother to her native wales. he's described by friends there as a headstrong quirky computer genius. >> he was the small kind of dweeby pasty american. >> if he didn't agree with something, he would without a doubt make his opinion heard. >> reporter: manning dropped out of that school and moved back to the states in 2005. me told others he drifted before being taken any be an aunt in

washington, d.c. the aunt who sources say helped manning find his lawyer wouldn't speak to me before the verdict was read. wouldn't talk to me when i went to her home in 2010 or as i tried to flag her as she drove away. >> ma'am? ma'am? hello? >> reporter: manning, according to friends, was gay and felt he was ridiculed in the military for it. in an instant message shortly before he was taken into custody, manning wrote i've been isolated so long. i just wanted to be nice and live a normal life. but events kept forcing me to figure out ways to survive. smart enough to know what's going on but helpless to do anything. no one took any notice of me. now he's a world renowned whistle blower or traitor depending on your point of view. responsible for leaking video of an air strike that mistakenly killed journalists in iraq in 2007. leaking hundreds of thousands of sensitive documents on the wars in iraq and afghanistan. and hundreds of thousands of

diplomatic cables that embarrassed the u.s. government. >> because manning and wikileaks have become so fa nous, there's no doubt perceptions have been changed. there's no doubt people heard of more specific things than on the other hand. a lot of this kind of information was in the public debate. >> reporter: for example, michael o'halon says black water killed incident iraqis in a baghdad square. his point is before manning, americans already knew their leaders made critical mistakes in these wars and steps had to be taken to correct them. >> julian assange and other supporters of manning says the information out there did no serious harm to u.s. national security. >> that's right. assange said there's been no accusation that anyone has been harmed as a result of this information. in fact, he says it's been the opposite. he says there's been a wide range of prosecutions, investigations of people for things like torture as a result

of this. and he also says this is the end of jury roomiournalism in the u. he's speak out about the verdict. >> let's talk more about the manning verdict. whether or not he's a hero, a whistle blower, or a traitor. we're joined by michael ratner of wikileaks. we're also talking to michael grimm of new york. a former undercover fbi agent. thanks for joining us. what do you think about this not guilty verdict, congressman? not guilty for the most serious charge aiding the enemy. >> i support the court's decision. they looked at the law and applied it correctly. but the other counts he was found guilty will put this gentleman in jail for the rest of his life. al thee he might not have directly aided the enemy as its

written, he divulged private treason. >> what are you saying? >> it has nothing to do with treason. you'd have to adhere with the anmy. it's nothing to do with treason. he was tried when he shouldn't have been. he revealed information that administrations should have been given out so we can debate these issues. we can find out about corrupt governments that help -- that actually his information helped bring on arab spring. public information that was important to debate. what's sad here to me is everybody's focusing on is bradley manning this or that. i think he's a hero for doing what he did. where's the investigations of the people who committed the crimes? where's the investigations we've been trying to get forever of the people who ran the torture conspiracy under the bush years? where's the investigation of the illegal iraq war? where's the investigation of the

torture center run in iraq? that's what i want to know. we shouldn't be focusing on this issue. we should be -- bradley manning should be not in jail at all. >> wolf, you know, by the standard of mr. ratner, what you're saying is anyone who takes classified information. that was classified it's a fact. he took classified information and put it on the internet where all our enemies can easily access it. under his standard, there'd be no more reason to have an espionage act at all because you could claim whistle blower status. that's absurd. that would put us in harm's way. and the other things is some of this information did deal with troops' location and so on. we have troops on the ground in harm's way. this private endangered their lives, endangered the national security of our country. so to say he gets special protection because he's a whistle blower is absurd. that standard would eviscerate the espionage act.

all you have to do is give it to a third person who puts it on the internet, now you're not responsible for the actions? because there are things the government should or should not have done? that cannot the standard we decide what espionage is. >> let's let mr. ratner respond. >> the espionage act used to go after whistle blowers, it should be eviscerated. when you're a young soldier as he was in the military and you see as he said, awful, terrible things and atrocities. i think he acted as a man of principle and conscious and came forward with that. it's the same thing we hope happens in other mass atrocit s atrocities. it happened in vietnam. there's no way in the world we would have prosecuted or we probably tried for awhile, the whistle blower on the massacre. it turned out to be journalists in the end. but that's the kind of thing you want happening. and you want to protect that. when youl see massive human rights violations in front of you, you want those people

coming out. and you want the people who perpetrated those investigated and prosecuted. >> wolf, as someone who has actually served in a military and manned a post and had a gun in my hand in harm's way on multiple levels, i can tell you there are statutes in place, there are protocols in place. if i'm given an unlawful order, i don't follow that. i run it up chain of command. i don't sneak out the information and put it on the internet. that's what this is. maybe we need to have a discussion on better rules and protocols for whistle blowing, make it easier for whistle blowers to go up the chain of command. that's a discussion i'm willing to have. but to say this private in the military was a whistle blower by giving out classified information on the internet, it's absurd and a dangerous argument that puts our troops and our entire nation in harm's way. it cannot be tolerated. >> go ahead, mr. ratner. >> what's interesting about that argument is the video that began

this and you showed on your piece in not which only two reuters journalists were killed, that video wasn't even classified. that video was kept out of the public domain even when there was an foia request because they didn't want to embarrass the military. that's the kind of information that absolutely has to be public. in addition, when classified information is used as a mask, a mask of -- to keep atros fis -- to keep human rights violations out of the public debate, it shouldn't be classified at all. we have lawyers at my office hearing about their clients being tortured and they can't talk about it. that stuff should not be classified. >> go ahead, congressman. >> well, that's a different debate on what should and shouldn't be classified. but i'll tell you this. as someone who has protected this country and now is in a position to continue to protect

this country here no washington, i don't want some private that's d disgruntled for a myriad of reasons to decide what should and shouldn't be public. that's why we have a classification system in this country. that's why he's trained to understand the chain of command and understand very clearly what classified means. it's not up to some private or fancy talking lawyer to decide what the public should and shouldn't see when you're talking about humans' lives and americans' lives. as someone who lived through 9/11 as a 9/11 first responder, i don't want that private making decisions that could end up putting information in the hands of the next terrorist that's going to attack new york city or anywhere else in this country. >> have quickly mr. ratner, you get the last word. >> at trial there was no evidence of damage to the troops or anything like that. in addition, i want to have people in the military who are willing to stand up and say when they see an atrocity, we will honor our conscious and what

should be reveal what should be given to the american people. >> a good serious, solid debate, guys. thanks very much for coming in. >> thank you. up next, a real housewife and her husband face criminal charges in court. and in familiar fashion, there's a bit of a brawl outside. and new information about the suspect charged with defacing a washington landmark. behind other similar acts of vandalism. ments of our students and alums. people like, maria salazar, an executive director at american red cross. or garlin smith, video account director at yahoo. and for every garlin, thousands more are hired by hundreds of top companies. each expanding the influence of our proud university of phoenix network. that's right, university of phoenix. enroll now. we've got a frame waiting for you.

[ dog ] we found it together.upbeat ] on a walk, walk, walk. love to walk. yeah, we found that wonderful thing. and you smiled. and threw it. and i decided i would never, ever leave it anywhere. because that wonderful, bouncy, roll-around thing... had made you play. and that... had made you smile. [ announcer ] beneful. play. it's good for you.

humans. even when we cross our "ts" and dot our "i's", we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up

due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car, we'll give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, the repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy? we're just getting this into

"the situation room." john mccain and lindsey graham, they're now planning to go to egypt at the request of president obama as early as next week. senator graham tells cnn he and mccain will deliver a message to egypt's military leaders that they're expected to move to a democratically elected government sooner rather than later. and that putting opposition leaders in jail is not sustainable. we'll watch their visit to egypt next week. the stars of "the real housewives of new jersey" are used to having cameras on them 24/7 but not necessarily like this. teresa and joe giudice went to federal government today facing fraud and federal tax charges a day after their were hit with an indictment. nischel nischelle turner has the latest for us. you can't make this stuff up. >> reporter: you certainly can't. this is reality tv at its finest, i tell you. this was their initial court

appearance. they will be back in court on august 14th for their formal arraignment. but today the judge rescinded their passports also restricted their travel to new york and new jersey. and she also released them on a $500,000 unrestricted appearance bond. this reality tv drama is really giving this real life couple something to think about. it's a real life legal saga for two stars of bravo's "the real housewives of new jersey," a reality series that's famous for bringing the drama. >> [ bleep ]. >> reporter: a u.s. district court has indicted teresa g giudice and her husband. then hiding their fortunes in a bankruptcy filing after the first season aired.

the federal indictment claims they lied to the bankruptcy court, to the irs, and to a number of banks. the pair faces pretty stiff penalties on the charges up to 30 years in prison and a million dollar fine if convicted. joe giudice was charged with failing to file taxes in a time he earned nearly $1 million. adding to a checkered legal past. >> wefr been hearing rumblings of in the years now that comes to light with the charges. >> reporter: teresa's attorney told cnn she will plead not guilty. releasing a statement saying she supports her husband and adding quote, i am committed to my family and intend to maintain our lives in the best way possible which includes continuing my career. as a result, i am hopeful we will resolve this matter with the government as quickly as

possible. with "the real housewives of new jersey" in its fifth season, her tv future is in jeopardy. >> you can't really shoot the level of glamour and weave pulling behind bars. >> reporter: i should say coming out of court today, the pair had absolute nothing to say. although they were peppered with a lot of questions from a throng of media about 50 deep people waiting out there on them today. another interesting point today in court, it was revealed that joe is not a u.s. but an italian citizen. and the prosecutor said today that he could possibly face deportation if all of these allegations are proven to be true and he is convicted. so joe giudice could be deported after all this. >> thanks for that report. good report from nischelle. here in washington a 58-year-old woman accused of splattering green pant on one d.c. landmark is now being held

without bond. she's charged with defacing property and could face a maximum ten years in prison and a $5,000 fine. we now know she has a chinese passport and her visa to stay here in the united states expired on saturday. the woman was charged in connection with vandalism at the national cathedral where officials say an estimated $15,000 in repairs from now begun. the police chief says there's probably a connection between acts of vandalism at several local landmarks including the lincoln memorial. a decade's old mystery is now back in the spotlight. who is she talking about? can taylor swift crack the case? "and one of the most efficient trucking networks," "with safe, experienced drivers." "we work directly with manufacturers," "eliminating costly markups," "and buy directly from local farmers in every region of the country."

"when you see our low prices, remember the wheels turning behind the scenes, delivering for millions of americans, everyday. "dedication: that's the real walmart" when she was only fifteen hours first open hold. surgery... handing her over for surgery is the hardest thing i've... ever had to do. before obamacare, insurance companies could put lifetime... caps on your health insurance. once you hit that cap... can

some more political fireworks today over the internal revenue service and its alleged targeting of conservative political groups. a top republican congressman accusing the head of the irs of instructing his panel's investigation. let's bring in dana bash. she's got the latest. dana? >> reporter: well, wolf, daryl eye is issa is taking the probe of the irs to a whole new level. he wrote a really threatening letter to the irs, saying what they've done has obstructed the investigation, that could result even in jail time. i want to read part of the letter that issa wrote. the system matic manner in which the irs has attempted to delay, frustrate, impede and obstruct the committee's investigation

raises serious concerns about your commitment to full oversight. he claims the irs has handed over only 12,000 of 64 million documents identified as potentially relevant to the irs probe. the irs spokesman responded in an unusually harsh retort. here's what they said. we're doing everything we can to full little cooperate with the committees, and we strongly disagree with any suggestions to the contrary. the irs says nowhere near 64 million documents and they emphasized that 17 out of 1,600 lawyers, a fair number of lawyers, they have been full-time working on answering congress's request. and this really takes this to another level, because in part, the irs commissioner wasn't there when any of this happened. he's new. and so far, he's gotten bipartisan praise on the way he's trying to turn the irs around. >> the battle clearly continues between these two sides.

all right, thanks very much, dana bash, up on capitol hill. up next, a very different story. we're asking the question, who is so vain? taylor swift knows now who is so vain, but will she spill carly simon's beans? [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪

#%ttia[obile share for business. it's been that way since the day you met. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain,

as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. these are sandra's "homemade" yummy, scrumptious bars. hmm? i just wanted you to eat more fiber. chewy, oatie, gooeyness... and fraudulence. i'm in deep, babe. you certainly are. [ male announcer ] fiber one.

one of music's great mysteries, inspiring four decades of guessing. cnn's jeanne moos reports there's now a new round of the "you're so vain" game. >> reporter: prepare to dip your hat below one eye and wear a scarf that's apricot. >> we're going to sing "you're so vain" tonight and i'm so excited. >> reporter: so excited, they were holding hands. taylor swift brought carly simon on stage in her boston concert, so, together they could belt out carly's signature song about some conceited mystery man -- ♪ you're so vain ♪ i bet you think this song is about you ♪ ♪ don't you >> reporter: don't you know, 41 years later, we still don't know. you're so lame, you probably think this song is about -- >> warren beatty. >> cat stevens. >> james taylor?

>> reporter: 68-year-old carly simon has never spilled the beans, she's dolled out a few clues. >> the name of the person it was about had an e in it. >> she gave us two vowels. >> an a. >> going to add an r. >> reporter: when she released a new song in 2009, british tabloid was sure it had the guy based on barely a whisper. played backwards sounded like some to david. ah-ha. david geffen, the record producer. but carly shot that one down. at an auction for charity, carly promised to reveal the secret to the highest bidder. former nbc sports executive dick ebersol donated $50,000 for carly to whisper the name to him. though, he had to sign a confidentiality agreement not to reveal it. will taylor swift have loose

lips? >> who is it written about? >> i told you and i told you never to tell. so, you know. >> i was just thinking she might tell you. but i do know now. >> reporter: cat, james, warren, mick, carly sometimes says who it's not about. >> it is not mick jagger. >> reporter: or who it's not not about. >> well, you know what, it's certainly not not about warren. >> reporter: if you have dreams of ever solving this riddle, they're just clouds in your coffee. ♪ clouds in my coffee >> i could never solve it, because if i solved it, no one would have anything to talk to me about. >> reporter: nothing vain about carly. ♪ you're so vain >> reporter: it's just asking that's in vain. jeanne moos, cnn -- >> it was warren beatty, wasn't it? >> what are you talking about? >> reporter: new york. >> carly simon says warren beatty, certainly thought it was about him. he even called her up once and thanked her for the song. remember, you can always foul local what's going on here in

"the situation room" on twitter. tweet me or the show. thanks very much for watching. i'm wolf blitzer in washington. erin burnett "outfront" starts right now. next, bradley manning found guiltile of charges for releasing classified information. but he got off on even greater charges. so, win or a loss? what does it mean for america's security? then, a brazen escape caught on tape. this one, you have to see to believe. so, you will. and sleeping on the job. stealing the contents of our luggage. this is what's happening at the tsa. a special report. let's go "outfront." good evening, everyone. i'm erin burnett. tonight, a verdict for spy bradley manning. a military judge ruled the man