PBS NewsHour; May 13, 2011 3:00pm-4:00pm PDT

Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS

>> Lehrer: REBEL UPRISINGS CONTINUED TO SHAKE THE ARAB WORLD TODAY, FROM SYRIA TO YEMEN TO LIBYA. GOOD EVENING. I'M JIM LEHRER.

>> Woodruff: AND I'M JUDY WOODRUFF. ON THE NEWSHOUR TONIGHT, RAY SUAREZ LOOKS AT HOW DIFFERENT GOVERNMENTS ARE CRACKING DOWN ON THE PROTESTS, AND HE TALKS WITH MARGARET WARNER IN BAHRAIN.

>> THE FACT IS THIS IS A COUNTRY UNDER A STATE OF EMERGENCY AND SO ANY GROUP LARGER THAN FIVE OR SIX CAN BE BROKEN UP BY POLICE. ALL PROTESTS ARE DISALLOWED.

>> Lehrer: WE HAVE A NEWSMAKER INTERVIEW WITH HOMELAND SECURITY SECRETARY JANET NAPOLITANO.

>> Woodruff: PAUL SOLMAN EXPLORES WHAT THE UP-TICK IN INFLATION MEANS FOR AMERICANS EVERYWHERE.

>> I HAVE CUT DOWN MY DRIVING A GREAT DEAL. I CAN'T SEEN GO TO STONEY CREEK TO SEE MY FAMILY BECAUSE IT USES UP TOO MUCH GAS.

>> Lehrer: MARK SHIELDS AND MICHAEL GERSON ANALYZE THE WEEK'S NEWS.

>> Woodruff: AND ROBERT MacNEIL REFLECTS ON THE EXIT STRATEGY OF HIS FRIEND AND COLLEAGUE, JIM LEHRER.

>> Lehrer: THAT'S ALL AHEAD ON TONIGHT'S NEWSHOUR. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> I MEAN, WHERE WOULD WE BE WITHOUT SMALL BUSINESSES?

>> WE NEED SMALL BUSINESSES.

>> THEY'RE THE ONES THAT HELP DRIVE GROWTH.

>> LIKE ELECTRICIANS, MECHANICS, CARPENTERS.

>> THEY STRENGTHEN OUR COMMUNITIES.

>> EVERY YEAR, CHEVRON SPENDS BILLIONS WITH SMALL BUSINESSES. THAT GOES RIGHT TO THE HEART OF CAL COMMUNITIES, PROVIDING JOBS, KEEPING PEOPLE AT WORK. THEY DEPEND ON US.

>> THE ECONOMY DEPENDS ON THEM.

>> AND WE DEPEND ON THEM.

>> DURING ITS FIRST YEAR, THE HUMPBACK CALF AND ITS MOTHER ARE ALMOST INSEPARABLE. SHE LIFTS HER CALF TO ITS FIRST BREATH OF AIR, THEN PROTECTS IT ON THE LONG JOURNEY TO THEIR FEEDING GROUNDS. ONE OF THE MOST IMPORTANT THINGS YOU CAN DO IS HELP THE NEXT GENERATION. AT PACIFIC LIFE, WE OFFER FINANCIAL SOLUTIONS TO ACCOMPLISH JUST THAT. YOUR FINANCIAL PROFESSIONAL CAN TELL YOU ABOUT PACIFIC LIFE-- THE POWER TO HELP YOU SUCCEED.

>> AND BY BNSF RAILWAY. INTEL. SPONSORS OF TOMORROW. AND THE WILLIAM AND FLORA HEWLETT FOUNDATION, WORKING TO SOLVE SOCIAL AND ENVIRONMENTAL PROBLEMS AT HOME AND AROUND THE WORLD. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU.

>> Lehrer: THIS WAS ANOTHER BLOODY FRIDAY IN SYRIA. SIX PROTESTERS WERE KILLED, EVEN AS THE GOVERNMENT SAID IT WANTS A "NATIONAL DIALOGUE". AND IN LIBYA, THE DRAMA SURROUNDING MOAMMAR QADDAFI TOOK A NEW TURN. RAY SUAREZ HAS OUR COVERAGE OF THE DAY'S EVENTS.

>> Suarez: ACROSS SYRIA, THOUSANDS OF PEOPLE AGAIN RISKED DEATH TO DEMAND THAT PRESIDENT BASHAR AL ASSAD STEP DOWN IN RALLIES CAPTURED ON CELL-PHONE VIDEO. ACTIVISTS SAID DEMONSTRATORS IN DAMASCUS AND HOMS CAME UNDER FIRE AFTER FRIDAY PRAYERS. SECURITY FORCES ALSO SHOT INTO CROWDS OUTSIDE THE CITY OF DARAA AND IN THE TOWN OF MAYADEEN. THE DEATHS ADDED TO ESTIMATES OF UP TO 850 PROTESTERS KILLED SINCE THE UPRISING THERE BEGAN. THAT'S ALREADY PROMPTED PRESIDENT RECEP TAYYIP ERDOGAN IN NEIGHBORING TURKEY TO DENOUNCE THE KILLINGS. AND IN ISTANBUL TODAY, PROTESTERS MARCHED TO THE SYRIAN CONSULATE, WHERE THEY BURNED PHOTOS OF ASSAD.

>> THE REGIME KILLED MORE THAN 1,000 PEOPLE IN SYRIA, AND THEY BLOCKADE A LOT OF CITIES. ALMOST ALL THE CITIES IN SYRIA ARE BLOCKADED.

>> Suarez: THERE WERE ALSO HUGE NEW PROTESTS TODAY IN YEMEN, AND TROOPS THERE KILLED AT LEAST THREE MORE PEOPLE IN IBB, A CITY SOUTH OF SANAA. EMBATTLED PRESIDENT ALI ABDULLAH SALEH DREW HIS OWN CROWD OF SUPPORTERS IN SANAA. HE ACCUSED HIS OPPONENTS OF SABOTAGE.

>> ( translated ): THESE ARE ACTS OF DESTRUCTION AND VANDALISM. WHAT WE HAVE BUILT IN 23 YEARS HAS BEEN DESTROYED IN THREE MONTHS. THESE AGENTS OF DESTRUCTION WANT TO TAKE CONTROL OF SEATS OF POWER, SLAUGHTER YEMENI PEOPLE, AND CUT THEIR HEADS.

>> Suarez: MEANWHILE, IN LIBYA, MOAMMAR QADDAFI INSISTED HE'S STILL VERY MUCH IN CONTROL. THE ITALIAN FOREIGN MINISTER, FRANCO FRATTINI, HAD SAID THE ROMAN CATHOLIC BISHOP IN TRIPOLI NOW BELIEVES QADDAFI MIGHT BE WOUNDED AND MIGHT HAVE LEFT THE CITY. IN AN AUDIO STATEMENT ON STATE TV, QADDAFI DID NOT DIRECTLY ADDRESS THOSE CLAIMS, BUT HE DID TAUNT NATO.

>> ( translated ): I TELL THE COWARD CRUSADERS-- I LIVE IN A PLACE WHERE YOU CAN'T GET TO ME. I LIVE IN THE HEARTS OF MILLIONS.

>> Suarez: THE LIBYAN LEADER ALSO CONDEMNED AIR STRIKES THIS WEEK ON HIS COMPOUND IN TRIPOLI. FARTHER EAST IN REBEL-HELD BENGHAZI, THOUSANDS OF ANTI- QADDAFI LIBYANS INSISTED THEY WOULD OUTLAST THE DICTATOR.

>> ( translated ): THIS IS THE THIRD MONTH OF OUR STRUGGLE, BUT THEY FEEL LIKE ONLY THREE DAYS, AND FOR QADDAFI, IT MUST FEEL LIKE 30 YEARS.

>> Suarez: IN WASHINGTON, A REBEL DELEGATION FROM LIBYA MET WITH TOP WHITE HOUSE OFFICIALS TODAY. MAHMOUD JEBRIL, HEAD OF THE REBEL COUNCIL, APPEALED THURSDAY FOR THE U.S. TO LET THE REBELS USE FROZEN LIBYAN ASSETS.

>> I THINK THE TIME IS THE CRUX OF THE MATTER, BECAUSE SOLVING THIS PROBLEM IN A MATTER OF FOUR TO FIVE WEEKS MIGHT BE TOO LATE, YOU KNOW. THAT'S WHY OUR FINANCE MINISTER SAID THAT WE NEED THIS MONEY YESTERDAY, NOT TODAY.

>> Suarez: U.S. OFFICIALS ARE WORKING ON THE FROZEN ASSETS, BUT FOR NOW, PRESIDENT OBAMA HAS STOPPED SHORT OF RECOGNIZING THE REBEL COUNCIL AS LIBYA'S OFFICIAL GOVERNMENT. LIBYA'S NEIGHBOR TO THE EAST, EGYPT, HAS ALREADY HAD ITS REVOLUTION, AND TODAY, PROTESTERS TURNED THEIR ATTENTION TO NEW ISSUES. IN CAIRO'S TAHRIR SQUARE, THOUSANDS OF PEOPLE URGED THE NEW GOVERNMENT TO TAKE A MUCH STRONGER PRO-PALESTINIAN STAND. BUT IN BAHRAIN, THE PROTESTS OF FEBRUARY AND MARCH HAVE BEEN CRUSHED. AND THE U.N. HUMAN RIGHTS OFFICE VOICED NEW CONCERNS TODAY ABOUT THE ARRESTS AND TORTURE OF DISSIDENTS IN BAHRAIN. MARGARET WARNER IS NOW IN THE BAHRAINI CAPITAL, MANAMA, REPORTING FOR THE NEWSHOUR. MARGARET, YOU'VE BEEN ON THE GROUND IN BAHRAIN A FEW DAYS, WHAT CAN YOU SEE? ARE YOU AWARE AS YOU MOVE AROUND THAT THIS IS A COUNTRY PUTTING DOWN AN UPRISING?

>> Warner: ABSOLUTELY, RAY. IN THE CAPITOL YOU SEE TANKS BY THE SIDE OF THE ROAD. YOU SEE RIOT POLICE AND MILITARY MANNING CHECK POINTS AROUND THE CITY. IT IS NOT A HEAVY, HEAVY SECURITY PRESENCE HERE IN THE FINANCIAL HUB THAT IS THE CAPITOL. BUT YOU DO, YOU DO FEEL IT. THE SITUATION IS VERY DIFFERENT WHEN YOU GO OUT TO THE SHIITE VILLAGES. AND WE WENT TO ONE TODAY TO HEAR THE BAHRAINI SHIITE AYATOLLAH DELIVER THE FRIDAY PRAYERS. AND THERE YOU DO SEE ARMOURED VEHICLES OUT ON THE HIGHWAY, CHECKPOINTS, MILITARY CONVOYS CRUISING AROUND, RIOT POLICE CRUISING AROUND. AND THE, JUST BY HAPPENSTANCE THE MOSQUE THAT WE HAD CHOSEN TO VISIT OVERNIGHT, WE WERE TOLD, HAD BEEN VANDALLIZED BY SECURITY FORCES. THE TELEVISION SETS AND SOUND SYSTEM RIPPED OUT. OTHER ALLEGATIONS OF OTHER KINDS OF DESTRUCTION. NOW WHEN WE GOT THERE NEW TVS HAD BEEN INSTALLED AND THE SOUND SYSTEM APPEARED TO BE WORKING FINE. BUT WHAT WAS STRIKING AT LEAST TO MY PRODUCER AND I WHO WERE ON THE WOMEN'S SIDE OF THIS WITH ABOUT A THOUSAND WOMEN WAS A PERVASIVE SENSE OF FEAR. A LOT OF WOMEN ALL IN THEI THEIR-- CLUSTERED AROUND US, WANTED TO TELL US THEIR STORIES ABOUT NIGHT RAIDS ON THEIR VILLAGES OR FRIENDS OR RELATIVES OR COWORKERS WHO HAD BEEN IN DETENTION. SOME OF THESE WOMEN FROM NURSES, SOME WERE DOCTORS, SOME WERE TEACHERS. AND YET THEY WERE AFRAID, MOST OF THEM TO TALK ON CAMERA. ONE WOMAN SAID IMAGINE WHAT IT IS LIKE TO BE SLEEPING IN BED WITH YOUR HUSBAND AND MASKED MEN COME IN. AND ANOTHER WOMAN SAID WE WANT TO TELL THE WORLD OUR STORY BUT WE'RE AFRAID WE'LL BE TARGETS. AN EVEN WHEN WE DROVE OUT OF TOWN ON OUR WAY BACK AND STOPPED AT A REALLY UPSCALE COFFEE SHOP, WHEN MY CAMERAMAN TRIED TO START SHOOTING OUT THE-- AT THE PLATE GLASS FRONT AT A CONVOY OF RIOT POLICE, THE MANAGER RUSHED OVER AND SAID PLEASE DON'T DO THAT OR THEY WILL COME IN AND TRASH MY PLACE.

>> Suarez: IT SOUNDS LIKE A PRETTY HEAVY GOVERNMENT RESPONSE. HAVE YOU BEEN FREE TO MOVE AROUND?

>> Warner: ACTUALLY WE HAVE, RAY. THIS IS NOT SYRIA. IT IS NOT SO HEAVY THAT-- AND WE HAVE NOT BEEN INHIBITIED, ACTUALLY, AT ALL. WHAT WE'RE FINDING IS PEOPLE WE WANT TO TALK TO FEEL INHIBITIED.

>> Suarez: CAN YOU SEE CONTINUING RESISTANCE AS YOU DO YOUR REPORTING?

>> Warner: RAY, THAT'S ANOTHER HUGE DIFFERENCE WITH SYRIA. THERE AREN'T SIGNS OF CONTINUING RESISTANCE OR NOT MUCH. TODAY, FOR EXAMPLE, THE FEBRUARY 14th MOVEMENT, AN INTERNET-BASED MOVEMENT HAD CALLED FOR MASSIVE PROTESTS OF ALL WOMEN IN DETENTION WEREN'T RELEASED. THERE WAS NO MASSIVE PROTEST ACROSS THIS COUNTRY. THERE WERE FLASH PROTESTS IN SOME OF THE VILLAGES. FOR EXAMPLE, WHERE WE WERE A GROUP OF YOUNG MEN TOLD US THEY TRIED A LITTLE GATHERING AROUND 3:00 AND IMMEDIATELY THE POLICE CAME IN AND DISPERSED THEM AND DETONATED WHAT THEY CALL HERE SOUND BOMBS WHICH SCATTERS PEOPLE. THE FACT IS THIS IS A COUNTRY UNDER A STATE OF EMERGENCY. AND SO ANY GROUP LARGER THAN FIVE OR SIX CAN BE BROKEN UP BY POLICE. ALL PROTESTS ARE DISALLOWED. SO YES, WE SEE GRAFFITI THAT SAY THINGS LIKE DEATH TO THE RULING GANG. BUT THIS, I THINK THE TEST WILL COME WHEN ON JUNE 1st AS KING HAMMAD ANNOUNCED EARLIER THIS WEEK, THE STATE OF EMERGENCY IS GOING TO BE LIFTED EARLIER THAN EXPECTED. THAT WILL BE THE TEST OF WHETHER THE PROTESTS RESUME.

>> Suarez: THE WORLD HAS WATCHED AS ONE AFTER ANOTHER COUNTRIES HAVE TAKEN TO THE STREETS. HOW IS BAHRAIN DIFFERENT FROM TUNISIA, EGYPT AND YEMEN WHERE YOU REPORTED, SYRIA? >>.

>> Warner: WELL, BIG DIFFERENCE CERTAINLY WITH TUNISIA AND EGYPT. THIS IS FIRST OF ALL A SECTARIAN DIVIDE THIS IS NOT A PREDOMINANTLY SUNNI COUNTRY. THIS IS A COUNTRY WHERE A SMALLER SUNNI ROYAL FAMILY AND MINORITY RULES OVER A SHIITE MAJORITY THAT SAYS IT FEELS OPPRESSED AND DISCRIMINATED AGAINST. AND SO YOU'VE GOT THIS BUILT IN TENSION THAT IS ALREADY HAVING REPERCUSSIONS THROUGHOUT THE REGION. SECONDLY YOU'VE GOT THE NEIGHBORS WITH BIG STAKES. TINY BAHRAIN IS SANDWICHED BETWEEN TWO PERSIAN GULF ANTAGONISTS, SAUDI ARABIA AND IRAN. AN EACH IN ITS OWN WAY IS EXACERBATING TENSIONS HERE. ANOTHER DIFFERENCE IS U.S. STAKE. BAHRAIN ACTUALLY MATTERS A LOT TO THE UNITED STATES, THE U.S. NAVY 5th FLEET IS BASED HERE. AND U.S. OIL INTERESTS IN THE GULF COME INTO PLAY. EVEN THOUGH BAHRAIN'S OIL PRODUCTION IS NOT TERRIBLY HIGH ANY MORE, THE SAUDI ROYAL FAMILY IS CONCERNED THAT ANY REAL UNREST HERE WILL INFLAME TENSIONS IN ITS OWN SHIITE MINORITY, MANY OF WHOM LIVE IN ONE OF ITS BIG OIL PRODUCING REGIONS.

>> Suarez: THAT'S OUR MARGARET WARNER JOINING US IN BAHRAIN. THANKS A LOT, MARGARET.

>> Warner: THANK YOU, RAY.

>> Woodruff: STILL TO COME ON THE NEWSHOUR: HOMELAND SECURITY SECRETARY NAPOLITANO; RISING INFLATION NUMBERS; SHIELDS AND GERSON; AND AN ESSAY FROM ROBERT MacNEIL. BUT FIRST, THE OTHER NEWS OF THE DAY. HERE'S HARI SREENIVASAN.

>> Sreenivasan: THOUSANDS OF PEOPLE IN LOUISIANA'S CAJUN COUNTRY SPENT AN ANXIOUS DAY. THEY WERE WAITING FOR MILITARY ENGINEERS TO UNLEASH THE MISSISSIPPI RIVER ON THEIR LAND. AS DISASTER LOOMED, EVEN THE SCHOOL CHILDREN IN STEPHENSVILLE, LOUISIANA, HELPED MOVE THEIR CLASSROOMS TO HIGHER GROUND.

>> WE'RE TOLD IT'S ONE FOR THE BOOKS, AND IF THAT'S THE CASE, WE HAVE GOT TO TAKE EVERY PRECAUTION TO PROTECT DESKS, CHAIRS, AND OUR CHILDREN, TOO.

>> Sreenivasan: IN ALL, SOME 25,000 PEOPLE IN LOUISIANA WERE ON NOTICE-- THEIR HOMES COULD BE INUNDATED IF THE ARMY CORPS OF ENGINEERS OPENS THE MORGANZA SPILLWAY THIS WEEKEND. THE MOVE WOULD EASE THE DANGER TO LARGER CITIES-- BATON ROUGE AND NEW ORLEANS-- BUT IT WOULD SWAMP SMALL TOWNS AND THOUSANDS OF ACRES OF FARMLAND. LOUISIANA GOVERNOR BOBBY JINDAL URGED PEOPLE NOT TO WAIT.

>> NOW IS THE TIME TO REVIEW YOUR PLANS. IF YOU ARE IN THE NORTHERN PART OF THE SPILLWAY, THE WATER IS ONLY A COUPLE OF DAYS AWAY, AT MOST. THE SOUTHERN PART OF THE SPILLWAY, YOU'VE GOT A COUPLE OF ADDITIONAL DAYS AFTER THAT. IT'S NOT GOING TO COME ALL AT ONCE.

>> Sreenivasan: ACROSS THE RIVER, MISSISSIPPI GOVERNOR HALEY BARBOUR HAS A LAKE HOUSE NEAR VICKSBURG THAT'S ALREADY BEEN FLOODED. HE HAD ADVICE TODAY FOR HIS PEOPLE.

>> GET YOUR PROPERTY OUT AS EARLY AS YOU CAN-- FURNITURE, APPLIANCES. TO THE DEGREE YOU CAN LITERALLY REMOVE THOSE FROM THE AREA THAT MIGHT BE FLOODED, DO IT! IF YOU HADN'T DONE IT NOW, HURRY UP BECAUSE YOU MAY BE TOO LATE. SECONDLY, ELEVATE THINGS THAT CAN BE ELEVATED. THIRD, TIE DOWN THINGS THAT FLOAT.

>> Sreenivasan: BOTH BARBOUR AND JINDAL SAID THE MAINLINE LEVEES ALONG THE MISSISSIPPI ARE HOLDING AND WILL LIKELY NOT BE BREACHED. WALL STREET WAS HIT WITH NEW WORRIES TODAY ABOUT DEBT PROBLEMS IN EUROPE. THE DOW JONES INDUSTRIAL AVERAGE LOST 100 POINTS TO CLOSE AT 12,595. THE NASDAQ FELL 34 POINTS TO CLOSE AT 2,828. FOR THE WEEK, THE DOW LOST ABOUT A THIRD OF 1%; THE NASDAQ ROSE JUST A FRACTION. THE ECONOMY'S STRUGGLES HAVE CUT DEEPLY INTO THE SOLVENCY OF MEDICARE AND SOCIAL SECURITY. THE PROGRAM'S TRUSTEES REPORTED TODAY THAT THE MEDICARE HOSPITAL INSURANCE FUND WILL BE EXHAUSTED IN 2024. THAT'S FIVE YEARS EARLIER THAN LAST YEAR'S PROJECTION. THE SOCIAL SECURITY TRUST FUND WILL BE DEPLETED IN 2036, ONE YEAR EARLIER THAN THE PREVIOUS ESTIMATE. TREASURY SECRETARY TIMOTHY GEITHNER SAID IT UNDERSCORES THE URGENT NEED TO ACT SOON.

>> WE SHOULD NOT WAIT FOR THE TRUST FUNDS TO BE EXHAUSTED TO MAKE THE REFORMS NECESSARY TO PROTECT OUR CURRENT AND FUTURE RETIREES. LARGER, MORE DIFFICULT ADJUSTMENTS WILL BE NECESSARY IF WE DELAY REFORM. AND BY MAKING REFORMS SOON, THAT ARE FACED IN OVER TIME, WE WILL HELP REDUCE UNCERTAINTY ABOUT FUTURE BENEFITS.

>> Sreenivasan: IN THE CASE OF MEDICARE, THE RECESSION HAS MEANT FEWER PEOPLE WORKING AND PAYING PAYROLL TAXES INTO THE TRUST FUND. A DOUBLE SUICIDE BOMBING IN PAKISTAN KILLED AT LEAST 66 POLICE RECRUITS TODAY AND WOUNDED 120 OTHERS. TALIBAN MILITANTS SAID IT WAS REVENGE FOR THE KILLING OF OSAMA BIN LADEN. WE HAVE A REPORT, NARRATED BY LINDSEY HILSUM OF INDEPENDENT TELEVISION NEWS.

>> Reporter: "VENGEANCE IS OURS," SAY THE TALIBAN. TWO SUICIDE BOMBS EXPLODED THIS MORNING AT A PARAMILITARY TRAINING CENTER IN NORTHWESTERN PAKISTAN. WITH SCORES DEAD AND INJURED, THE FEAR IS THAT THIS COULD BE THE START OF A NEW CAMPAIGN IN PAKISTAN AND BEYOND TO AVENGE BIN LADEN'S DEATH.

>> Reporter: THE HOSPITAL IN NEARBY PESHAWAR WAS OVERWHELMED, AND MANY PAKISTANIS ARE RESENTFUL.

>> IT WAS THE AMERICANS WHO KILLED OSAMA, BUT IT'S THE BLOOD OF OUR PEOPLE WHICH IS BEING SPILT. WHY? WHY IS THIS HAPPENING TO US?

>> Reporter: THE PAKISTANI TALIBAN, WHO'VE CLAIMED RESPONSIBILITY FOR THE BOMBING, HAVE THE ANSWER TO THAT QUESTION.

>> .

>> WE DON'T CONSIDER-- AS THE LEADER OF AL QAEDA BUT ALSO AS THE LEADER OF ALL MUSLIMS. AND WE HAD MUJAHIDEEN DECIDED IT WAS OUR DUTY TO AVENGE HIS MURDER. WE WILL NOT JUST WAIT UNTIL WE CAN TARGET OBAMA BUT WE WILL TAKE OUR REVENGE ON ANY OF HIS ALLIES, BE THEY PAKISTANI, IRAN OR AMERICANS.

>> A MEMORIAL SERVICE TO THE CADETS WHO DIED TODAY. THOUSANDS OF PAKISTANI SOLDIERS HAVE DIED FIGHTING THE TALIBAN. AND NOW MORE HAVE DIED IN THIS TERROR ATTACK

>> Sreenivasan: HOURS AFTER THE BOMBINGS, PAKISTANI OFFICIALS REPORTED A U.S. DRONE ATTACK KILLED FIVE MILITANTS IN THE NORTHWEST. THE FORMER FIRST LADY OF EGYPT, SUZANNE MUBARAK, WILL BE HELD FOR 15 DAYS IN A CORRUPTION PROBE. AUTHORITIES ISSUED THE ORDER TODAY FOR THE WIFE OF OUSTED PRESIDENT HOSNI MUBARAK. A DOCTOR SAID SHE PASSED OUT UPON HEARING THE NEWS. THE MUBARAKS ARE BEING INVESTIGATED OVER CLAIMS THAT THEY ILLEGALLY AMASSED WEALTH DURING THEIR YEARS IN POWER. IN JORDAN TODAY, THOUSANDS OF PEOPLE DEMANDED A SEPARATE PALESTINIAN STATE AND THE RIGHT OF PALESTINIAN REFUGEES TO RETURN HOME. THEY WAVED PALESTINIAN FLAGS AND SANG PATRIOTIC SONGS, AND THEY CALLED FOR JORDAN TO END ITS PEACE TREATY WITH ISRAEL. SUNDAY MARKS THE ANNIVERSARY OF THE FOUNDING OF THE JEWISH STATE IN 1948. THE U.S. SPECIAL ENVOY TO THE MIDDLE EAST HAS ANNOUNCED HE'S STEPPING DOWN AFTER TWO YEARS ON THE JOB. FORMER SENATOR GEORGE MITCHELL HAD WORKED TO GET ISRAEL AND THE PALESTINIANS TALKING PEACE, WITHOUT MUCH SUCCESS. MITCHELL SAID TODAY HE ALWAYS INTENDED TO LEAVE AFTER TWO YEARS. THE REPUBLICAN PRESIDENTIAL FIELD NOW HAS ITS SECOND FULL- FLEDGED CANDIDATE FOR 2012. TEXAS CONGRESSMAN RON PAUL FORMALLY ANNOUNCED HIS CANDIDACY TODAY. PAUL IS 75 YEARS OLD. HE RAN FOR PRESIDENT AS A LIBERTARIAN IN 1988, AND SOUGHT THE REPUBLICAN NOMINATION ONCE BEFORE, IN 2008. DEMOCRATIC SENATOR HERB KOHL OF WISCONSIN WILL NOT RUN FOR A FIFTH TERM IN 2012. HIS ANNOUNCEMENT TODAY MADE HIM THE FIFTH DEMOCRAT TO SAY HE IS LEAVING THE SENATE AFTER NEXT YEAR. KOHL WAS FIRST ELECTED TO HIS SEAT IN 1988. HE SAID TODAY HE WOULD RATHER STEP DOWN A LITTLE EARLY THAN WAIT UNTIL IT IS TOO LATE. THOSE ARE SOME OF THE DAY'S MAJOR STORIES. NOW, BACK TO JUDY.

>> Woodruff: WE TURN TO THE AFTERMATH OF THE KILLING OF OSAMA BIN LADEN AND THE IMPACT ON SECURITY HERE AT HOME. INTELLIGENCE ANALYSTS ARE STILL COMBING THROUGH DOCUMENTS FOUND AT THE COMPOUND WHERE BIN LADEN LIVED. AMONG THE DETAILS GLEANED ARE REPORTS THAT THE AL QAEDA LEADER WANTED TO KILL PRESIDENT OBAMA AND OTHER U.S. OFFICIALS. FOR MORE ON THE THREATS STILL POSED IS HOMELAND SECURITY SECRETARY JANET NAPOLITANO.

>> MRS. SECRETARY, THANK YOU FOR BEING WITH US.

>> THANK YOU.

>> Woodruff: SINCE THE DEATH OF BIN LADEN IS THE UNITED STATES MORE SECURE OR LESS SECURE?

>> WELL, WE CERTAINLY HAVE REMOVED A LEADER OF AL QAEDA, THAT IS FOR CERTAIN. BUT WE ALSO KNOW THAT THERE ARE OTHERS OUT THERE, AL QAEDA RELATED GROUPS THAT ARE INTERNATIONAL, HOME GROUP TERRORISTS THAT ARE RIGHT IN OUR COUNTRY. SO WE STILL HAVE TO STAY AT A HEIGHTENED STATE OF ALERT.

>> Woodruff: SO ARE YOU SAYING THE SITUATION IS EXACTLY THE SAME AS IT WAS BEFORE?

>> NOT EXACTLY THE SAME. OF COURSE HE WAS A LEADER, AN ICONIC FIGURE. AND AS WE NOW KNOW HE WAS INVOLVED OPERATIONALLY. BUT WE HAVE NO REASON TO SIT BACK AND RELAX NOW. WE STILL HAVE TO BE LEANING FORWARD AND THINKING THROUGH WHAT ARE SOME OF THE OTHER THREATS OUR COUNTRY FACES.

>> Woodruff: ONE OF THE REASONS I ASK IS BECAUSE WE'RE HEARING THERE ARE DISAGREEMENTS BETWEEN BIN LADEN WHO WANTED THE FOCUS TO BE ON ATTACK THE UNITED STATES AND SOME OF HIS OTHER, THE OTHER LEADERSHIP IN AL QAEDA WHO FELT THAT THAT WAS A MISTAKE, THAT THE ATTACK SHOULD BE FOCUSED ELSEWHERE AND INDEED WE HAD THE REPORT TODAY. TWO SUICIDE BOMBINGS IN PAKISTAN. SO ONE COULD LOOK AT THAT AND SAY THE THREAT TO THE U.S. IS DIMINISHED WITH HIS DEATH.

>> ONE COULD. BUT IT WOULD BE A MISTAKE TO DO SO. I THINK YOU HAVE TO LOOK AT THE WHOLE RANG OF THREATS THAT FACE THE UNITED STATES, BOTH INTERNATIONAL AND DOMESTIC, THE VARIOUS FORMS THEY COULD TAKE. AND AGAIN, WE HAVEN'T ISSUED A SPECIFIC ADVISORY, A SPECIFIC ALERT ON ANY BIT OF INTELLIGENCE WE HAVE GLEANED. BUT WE ARE CONSTANTLY AT A HEIGHTENED LEVEL.

>> Woodruff: LET ME ASK YOU ABOUT THAT. BECAUSE YOU DID, IT WAS SAID IN THE DAYS AFTER THE RAID THAT THERE WAS MATERIAL FOUND THAT LEAD TO YOU BE CONCERNED ABOUT RAIL TRAFFIC IN THE UNITED STATES, AS WELL AS AVIATION. CAN YOU BE ANY MORE SPECIFIC ABOUT WHAT WAS FOUND AND WHY THAT IS A GREATER CONCERN?

>> WELL, WITHOUT BEING OVERLY SPECIFIC, WHAT I CAN SAY IS THAT MUCH HAS-- MUCH AS WE HAD THOUGHT BEFORE, KIND OF CONFIRMED WHAT WE WERE DOING BEFORE. THERE WAS A FOCUS ON ATTACKS THAT WERE TRANSPORTATION SECTOR SPECIFIC. AVIATION AND RAIL. AND SO WE SENT INFORMATION OUT TO THE ENTITIES THAT ARE INVOLVED. AND THAT PART OF OUR NATION'S INFRASTRUCTURE, AMTRAK BY WAY OF EXAMPLE. BUT SINCE WE WERE ALREADY DOING A NUMBER OF THINGS ON THE AVIATION SIDE, THERE WAS NOTHING IN THAT SENSE TO ADD EXCEPT TO SAY WE-- THAT WE CONFIRMED THAT WHAT WE WERE DOING WAS THE RIGHT THING TO DO.

>> Woodruff: HAS ANYTHING ELSE CHANGED AS A RESULT OF WHAT WAS LEARNED?

>> NO, BUT I WANT TO BE VERY CAREFUL HERE. I THINK WHAT WE DID WHEN WE GOT RID OF THE COLOR CODE SET OF ALERTS WHICH WEHAT IS DO. THESE THINGS ARE INTERRELATED. SO THAT, FOR EXAMPLE, IF WE ARE TO CONCLUDE AS A NATION THAT MORE INDIVIDUALS SHOULD HAVE VISAS, THEY COME THROUGH OUR PORTS. WE KNOW WHO THEY ARE. WE KNOW WHERE THEY'RE GOING. HOW LONG THEY'RE ALLOWED TO STAY. THAT DIMINISHES THE PRESSURE TO CROSS ILLEGALLY AND TO CROSS BETWEEN THOSE PORT ITS OF ENTRY. SO THESE THINGS ARE ALL RELATED TO ONE ANOTHER.

>> ONE OF, A DEMOCRATIC CONGRESSMAN, AGAIN THIS IS A FRIEND OF THE PRESIDENT, LOUIS GUTIERREZ SAID EITHER THE PRESIDENT IS WRONG TO WAIT FOR CONGRESS TO ACT. HE SAID THE PRESIDENT COULD DO A NUMBER OF SPECIFIC THINGS. AMONG OTHER THINGS HE SAID HE SHOULD SAY THE COUNTRY IS TO THE GOING TO SUPPORT THE WIVES OF U.S. SOLDIERS.

>> WELL, AGAIN, WE DEAL WITH THE WIVES OF U.S. SOLDIERS THROUGH THE VISA PROCESS. REPRESENTATIVE GUTIERREZ HAS A VIEW THAT I THINK THE PRESIDENT JUST DOESN'T AGREE WITH. AND I DON'T AGREE WITH. AND THAT IS THAT THE PRESIDENT BY EXECUTIVE FIAT CAN DO WHAT THE CONGRESS HAS NOT YET BEEN ABLE TO ADDRESS. AND THE PRESIDENT BELIEVES THAT THAT IS NOT THE APPROPRIATE USE OF EXECUTIVE BRANCH POWERS SOLELY. THAT THIS MUST BE DONE BY THE CONGRESS. THE PRESIDENT HAS LAID OUT THE PRINCIPALS OF THE BILL. HE HAS MET NOT ONLY WITH CONGRESSMEN OF BOTH PARTIES, REPEATEDLY. HE'S ALSO MET IN THE LAST FEW WEEKS WITH BUSINESS LEADERS, WITH FAITH-BASED LEADERS, OTHER GROUPS AROUND THE COUNTRY, ALL OF WHOM HAVE REACHED THE SAME CONCLUSION WHICH IS THAT CONGRESS NEEDS TO ACT.

>> Woodruff: JUST FINALLY I SAW AN EDITORIAL IN THE CHRISTIAN SCIENCE MONITOR THIS WEEK WHICH SAID THE PRESIDENT HAS BEEN TOO OVERTLY POLITICAL ABOUT IMMIGRATION. IT SAID HE'S BEEN SEEKING TO APPEASE LATINOS RATHER THAN UNITING THE COUNTRY ABOUT AN ADEQUATE METHOD OF ENFORCEMENT.

>> I DIDN'T READ THAT PARTICULAR PIECE. I THINK THE PRESIDENT IS MOTIVATED BY THE NEED TO SOLVE A PROBLEM. AND THIS IS A PROBLEM THAT'S NOT GOING TO GO AWAY. I CAN SAY THAT, I'M A FORMER BORDER STATE GOVERNOR. I MYSELF SUPERVISE THE PROSECUTION OF 6,000 PLUS IMMIGRATION FELONIES. I KNOW THE SYSTEM VERY, VERY WELL. I CAN TELL YOU ALL THE ENFORCEMENT IN THE WORLD AND I THINK THE AMERICAN PEOPLE PERHAPS DON'T APPRECIATE HOW MUCH HAS BEEN DONE, WILL NOT SUBSTITUTE, HOWEVER, FOR ALSO COMBINING IT WITH EFFECTIVE IMMIGRATION REFORM.

>> Woodruff: SECRETARY OF HOMELAND SECURITY JANET NAPOLITANO, WE THANK YOU FOR BEING WITH US.

>> THANK YOU.

>> Lehrer: NOW, INFLATION. THE GOVERNMENT'S LATEST FIGURES SHOW PRICES MADE THE BIGGEST JUMP IN ANY 12-MONTH PERIOD SINCE OCTOBER 2008. BUT WHEN GAS AND FOOD ARE ADDED, INFLATION FEELS EVEN HIGHER TO MOST AMERICANS, AND THAT PRESENTS A DILEMMA FOR THE FEDERAL RESERVE. NEWSHOUR ECONOMICS CORRESPONDENT PAUL SOLMAN REPORTS AS PART OF HIS ONGOING COVERAGE ON "MAKING SENSE OF FINANCIAL NEWS".

>> WE COLLECT FOOD, BEVERAGES. WE COLLECT HEALTH PRODUCTS, HOME PRODUCTS...

>> Reporter: WITH AN M.I.T. COLLEAGUE, ECONOMIST ROBERTO RIGOBON TRACKS MILLIONS OF PRICES ONLINE, WORLDWIDE.

>> ...REAL ESTATE, FURNITURE, CLOTHING.

>> Reporter: AND THUS TRACKS INFLATION-- HOW FAST PRICES ARE RISING, INCLUDING HERE IN THE U.S.

>> IF YOU TAKE THE LAST THREE TO FOUR MONTHS, WE'RE DETECTING AN INFLATION RATE OF ABOUT 5%, CLOSE TO 5%.

>> Reporter: FAITHFUL NEWSHOUR VIEWERS MAY RECALL HOW, BY CONTRAST, THE GOVERNMENT MONITORS INFLATION-- EVERY MONTH, 400 PART-TIMERS LIKE CALIFORNIA'S FRANK DUBICH, GATHERING DATA ONE PRICE AT A TIME: HOCKEY GLOVES...

>> AND HOW MUCH ARE THOSE TODAY?

>> THESE ARE $69.99.

>> Reporter: ...HOTEL ROOMS.

>> WOULD BE $149.

>> $149 EVEN?

>> YES.

>> Reporter: WHAT ARE YOU GOING TO BE PRICING HERE?

>> NAVEL ORANGES, TANGELOS.

>> Reporter: THIS IS HOW THE BUREAU OF LABOR STATISTICS, THE B.L.S., KEEPS TABS ON 80,000 PRICES. IT, TOO, IS REPORTING AN ANNUAL INFLATION RATE OF ABOUT 5%, A TREND RIGOBON'S ONLINE TRACKING METHOD HAD PICKED UP MONTHS EARLIER.

>> SINCE DECEMBER, FOR EXAMPLE, WE STARTED DETECTING MORE INFLATION, AND THEN, YOU KNOW, THE B.L.S. SEES THE INFLATION RATE FROM VERY LITTLE STARTS TO GO UP AND NOW IS MUCH BIGGER. YOU SEE?

>> Reporter: WE SEE, AS DO SO MANY AMERICANS THESE DAYS IN THEIR ACTUAL LIVES. AT A CONNECTICUT SENIOR CENTER WE'VE VISITED BEFORE, BINGO IS STILL A DOLLAR A CARD. BUT LIFE'S STAPLES ARE SOARING, SAYS CATHERINE DEMARTINO.

>> THEY'VE GOT TO DO SOMETHING

>> Reporter: ABOUT WHAT?

>> BECAUSE EVERYTHING IS OUT OF PROPORTION.

>> Reporter: THE MAIN COMPLAINT HERE WAS GAS PRICES.

>> I'VE CUT DOWN MY DRIVING A GREAT DEAL. I CAN'T EVEN SEE... GO TO STONY CREEK TO SEE MY FAMILY BECAUSE IT'S... IT USES UP TOO MUCH GAS.

>> MY CHILDREN LIVE IN WALLINGFORD AND IN CLINTON. I CAN'T GO VISIT THEM. I CAN'T AFFORD IT. I HAVE TO TAKE SOMETHING AWAY FROM MY TABLE TO PAY FOR THE GAS.

>> Reporter: TELL ME YOUR AGE.

>> I'M 97.

>> Reporter: YOU'RE 97?

>> YES.

>> Reporter: PHYLLIS MAZZIOTTI IS ALSO WORRIED ABOUT THE PRICE OF GAS.

>> IT'S GOING UP TO $5.

>> Reporter: WHY DO YOU THINK ITS GOING TO GO TO $5?

>> WHAT IS IT NOW-- $4.19, $4.20?

>> Reporter: YEAH. YOU CAN'T POSSIBLY BE DRIVING AT 97, RIGHT?

>> I DRIVE FROM MY HOUSE TO HERE.

>> Reporter: YOU DRIVE?

>> YES.

>> Reporter: LEAVING THE DANGERS OF ON-THE-ROAD ELDERLY FOR ANOTHER DAY, THERE MAY BE A VERY DIFFERENT PROBLEM WITH WHAT WE'VE JUST SHOWED YOU-- GAS IS A VOLATILE COMMODITY, AND THE PRICE OF OIL AT THE BARREL HEAD HAS ACTUALLY BEEN GOING DOWN THE PAST WEEK OR SO. SO MAYBE INFLATION WILL BE HERE TODAY, GONE TOMORROW. NO, SAYS M.I.T.'s RIGOBON. ENERGY AFFECTS THE PRICE OF EVERYTHING IN THE ECONOMY, BUT IT TAKES A LONG TIME TO DO SO.

>> OIL PRICES GO UP, THEN THE GAS PRICES AT THE PUMP GO UP; THEN, TRANSPORTATION COMPANIES, THEIR COSTS GO UP. THEY HAVE TO DECIDE TO INCREASE THEIR PRICES. THEN, WHEN THOSE GUYS INCREASE THEIR PRICES, THE RETAILER HAS A HIGHER PRICE OF BREAD AT THE STORE, AND THEN THEY HAVE TO DECIDE WHEN TO PASS THAT TO THE CONSUMER. THAT DOESN'T HAPPEN IN A WEEK. I MEAN, THIS TAKES A LONG TIME TO HAPPEN.

>> Reporter: A YEAR-AND-A-HALF, ACCORDING TO RESEARCHERS. SO THEN, WHY THE RECENT RUN-UP IN PRICES?

>> OUR DEMAND HAS INCREASED TREMENDOUSLY. FOR EXAMPLE, WE'RE ALMOST AT THE SAME LEVEL OF DEMAND THAT WE HAD BEFORE THE BUBBLE. OKAY, THIS IS 2007, BEFORE THE BUBBLE WENT BUST. OUR CONSUMPTION PER CAPITA IS ROUGHLY THE SAME AS WHAT WE HAD AT THAT TIME.

>> Reporter: BUT THERE IS AN ALTERNATIVE EXPLANATION OF INFLATION. THE FEDERAL RESERVE, THROUGH ITS POLICY OF SO-CALLED "QUANTITATIVE EASING," HAS BEEN PUMPING DOLLARS INTO THE ECONOMY TO KEEP US FROM FALLING BACK INTO RECESSION. BUT THAT COULD BE DEVALUING THE CURRENCY, CREATING MORE DOLLARS, THUS MAKING THEM WORTH LESS, THUS RAISING PRICES-- INFLATION! THE GOVERNMENT HAS ADJUSTED THE WAY INFLATION IS CALCULATED OVER THE YEARS, FOR SUPPOSEDLY TECHNICAL REASONS. BUT ECONOMIST JOHN WILLIAMS THINKS THE REAL REASON WAS TO REPORT A LOWER INFLATION RATE AND MAKE THE ECONOMY LOOK HEALTHIER THAN IT IS. ON HIS WEB SITE, shadowstats.com, WILLIAMS' READJUSTED INFLATION RATE IS NOW OVER 10%. AND HE'S WORRIED, AS HE LONG HAS BEEN, ABOUT HYPER-INFLATION.

>> THE DOLLAR, AS WE KNOW IT, IS GOING TO BECOME WORTHLESS IN THE YEARS AHEAD.

>> Reporter: BUT EVEN IF YOU DON'T SHARE WILLIAMS HYPER- ANXIETY, OR HIS SKY-HIGH ESTIMATE OF CURRENT INFLATION, AND STICK WITH THE MIT ESTIMATE OF 5%, IT'S USEFUL TO PUT THAT IN CONTEXT.

>> INFLATION ROBS EVERY AMERICAN, EVERY ONE OF YOU.

>> Reporter: THAT'S PRESIDENT NIXON IN 1971, WHEN INFLATION WAS ONLY 4%.

>> THE TIME HAS COME FOR DECISIVE ACTION-- ACTION THAT WILL BREAK THE VICIOUS CIRCLE OF SPIRALING PRICES AND COSTS. I AM TODAY ORDERING A FREEZE ON ALL PRICES AND WAGES THROUGHOUT THE UNITED STATES.

>> Reporter: SUCH CONTROLS ARE UNIMAGINABLE TODAY. BUT NIXON THOUGHT THEY WERE NECESSARY AT A 4% INFLATION RATE. YALE'S ROBERT SHILLER, FAMOUS FOR CALLING THE HOUSING CRASH.

>> 4% INFLATION IS SIGNIFICANT BECAUSE THAT MEANS, IN SOMETHING LIKE 18 YEARS, THE PRICE HAS DOUBLED. SO IF YOU RETIRED AND YOU HAD SOMETHING THAT... YOU KNOW, CASH INVESTMENT THAT DIDN'T GO UP WITH INFLATION, YOU'D BE LIVING ON HALF THE MONEY, IN REAL TERMS, IN... YOU KNOW, IN JUST 18 YEARS. IT MATTERS A LOT!

>> Reporter: RIGOBON AGREES.

>> AND HISTORICALLY, THE POOR ARE THE ONES THAT SUFFER THE MOST. THE UNEMPLOYED ARE THE ONES THAT SUFFER THE MOST. I MEAN, UNEMPLOYMENT INSURANCE IS RARELY INDEXED TO INFLATION, SO IF YOU HAVE A BIG INFLATION RATE, YOU KNOW, THOSE EARNERS WILL JUST HAVE TO LOWER THEIR STANDARDS OF LIVING EVEN FURTHER THAN WHAT THEY HAVE ALREADY LOWERED.

>> Reporter: SOCIAL SECURITY IS INDEXED TO INFLATION, BUT IT ADJUSTS A YEAR AFTER THE DATA ARE COLLECTED. AND IN CONNECTICUT, OUR SENIORS WERE CERTAINLY FEELING PINCHED. RIGHT NOW. WHAT ARE YOU CUTTING BACK ON?

>> I'M CUTTING BACK ON EVERYTHING. I DON'T BUY NOTHING. I DON'T BUY NOTHING.

>> YOU TRY AND MAKE A DISH THAT GOES A LONGER WAY, WHERE YOU CAN EAT TWO MEALS OUT OF IT INSTEAD OF ONE MEAL.

>> Reporter: LUNCH HERE-- SUGGESTED DONATION: $2-- IS AN ATTRACTION FOR PEOPLE HURT BY RISING FOOD AND ENERGY PRICES, KEY COMPONENTS OF WHAT'S APTLY CALLED "HEADLINE INFLATION," THE 4% TO 5% YOU'VE BEEN HEARING IN THIS STORY. SO-CALLED "CORE" INFLATION, HOWEVER-- BECAUSE IT EXCLUDES FOOD AND ENERGY-- IS RUNNING AT JUST 2%. WHICH IS WHY ECONOMISTS FROM CONSERVATIVE GREG MANKIW TO LIBERAL PAUL KRUGMAN AGREE WITH THE FED WHEN IT SAYS THAT LOW CORE INFLATION MEANS IT DOESN'T NEED TO RAISE INTEREST RATES YET. FOOD AND ENERGY PRICES REFLECT GLOBAL MARKETS, GLOBAL SPECULATION. THE FED THINKS THEY WON'T RESPOND TO U.S. MONETARY POLICY, SO THEY SHOULDN'T DRIVE IT. LIKE MANY ECONOMISTS, HOWEVER, BOB SHILLER IS CONCERNED ABOUT INFLATION, BOTH HEADLINE AND CORE.

>> IT CREEPS UP ON YOU, AND ONCE IT STARTS GETTING OUT OF CONTROL, I THINK IT AFFECTS OUR CONFIDENCE. THAT'S WHAT IT'S DOING NOW. IT'S JUST CREEPING UP, AND THE JOB OF THE FED IS TO GO IN AND TAKE CARE OF THAT PROBLEM.

>> Reporter: BUT THE FED'S NOT DOING THAT.

>> WELL, IF THEY STAMP ON THE BRAKES TO KILL INFLATION, THEY'LL PUSH US BACK INTO A RECESSION.

>> IF I WERE IN THE CENTRAL BANK, MY FIRST OBJECTIVE WILL BE TO CREATE CONDITIONS IN SUCH A WAY THAT I CAN PROVIDE JOBS TO, YOU KNOW, TEN MILLION PEOPLE THAT ARE SEARCHING FOR A JOB.

>> Reporter: BUT IF YOU'RE THE FED AND YOU'RE ALLOWING INFLATION TO RISE AT 5% TO 6%, YOU'RE TAKING QUITE A CHANCE, NO?

>> HAVING LOW INFLATION AND 10% UNEMPLOYMENT IS NOT... IS NOT POLITICALLY AND SOCIALLY ACCEPTABLE, SO I THINK THE FED IS DOING THE RIGHT THING.

>> Reporter: BUT THE FED IS TAKING SOMETHING OF A CHANCE THAT INFLATION WON'T GET OUT OF HAND. OTHER AMERICANS, MEANWHILE, ARE TAKING THEIR OWN CHANCES, TRYING TO MAKE DO IN A WORLD OF AGAIN- RISING PRICES, WHICH THEY HOPE THEY'LL BE ABLE TO PAY.

>> Lehrer: AND TO THE ANALYSIS OF SHIELDS AND GERSON. THAT'S SYNDICATED COLUMNIST MARK SHIELDS AND "WASHINGTON POST" COLUMNIST MICHAEL GERSON. DAVID BROOKS IS OFF TONIGHT. PICKING UP ON WHAT SECRETARY NAPOLITANO TOLD JUDY, MARK, WHAT DO YOU SEE THE PROSPECTS FOR IMMIGRATION REFORM IN THE SHORT RUN?

>> I SEE IT MORE POLITICALLY THAN I DO STATUTORILY, JIM. I MEAN THE REALITY IS THAT FIRST OF ALL, THERE'S NOT GOING TO BE A MAJOR IMMIGRATION BILL-PASS THE CONGRESS.

>> Lehrer: WHY NOT?

>> FOR A WHOLE HOST OF REASONS. ONE IS IT'S NOT ON ANYBODY'S AGENDA. AND SECONDLY, THERE'S NO CONSENSUS. THE PARTY, REPUBLICAN PARTY HAS MOVED FROM THE POSITION OF PRESIDENT BUSH WHO WAS WORKED WITH PEOPLE LIKE SENATOR KENNEDY. AND WHO BY THE WAY GOT 43 PERCENT OF THE LATINO VOTE IN 2004. IN 2008 THAT FELL DOWN TO 31% FOR JOHN McKANE, 67% FOR BARACK OBAMA. IT'S-- AT 16% IN THE CENSUS THEY ARE NOW THE LARGEST MINORITY IN THE COUNTRY, LATINOS ARE. AND ALMOST ONE OUT OF FOUR PEOPLE IN THIS COUNTRY UNDER THE AGE OF 17 IS LATINO. SO IT'S POLITICALLY IMPORTANT, ESPECIALLY IN STATES LIKE NEVADA AND NEW MEXICO AND GOVERNOR NAPOLITANO'S ARIZONA, NEW MEXICO, COLORADO. THOSE ARE IMPORTANT, THAT'S AN IMPORTANT VOTE. SO IT'S GOING TO GET ATTENTION BUT IT'S TO THE GOING TO GET-- .

>> Lehrer: DO AGREE WITH THAT.

>> I DO. I THINK THE PRESIDENT'S SPEECH IN TEXAS WAS A POLITICAL SPEECH. BUT BEING POLITICAL DOES NOT MEAN THAT IT'S CYNICAL. THE PRESIDENT WOULD PREFER TO SEE A COMPREHENSIVE REFORM. HE'S WELCOME TO TALK ABOUT THAT. SYMBOLISM IS VERY IMPORTANT IN ETHNIC POLITICS. REPUBLICANS THE LAST FEW YEARS HAVE BEEN PROVIDING SYMBOLS OF EXCLUSION. TALKING ABOUT CHANGING THE 14th AMENDMENT AND THE ARIZONA LAW, THE CRACKDOWN THERE. OBAMA WANTS TO PROVIDE SOME SYMBOLS OF INCLUSION FOR POLITICAL REASONS. THERE'S NOTHING WRONG WITH THAT. IT'S NOT EVENTUALLY ENOUGH. IF THE ECONOMY DOESN'T IMPROVE, HISPANICS WILL FEEL THAT AS WELL AND REACT IN THAT WAY. BUT THE PRESIDENT'S WELL WITHIN HIS RIGHTS TO MAKE THAT CASE.

>> Lehrer: WELL, AS MARK POINTED OUT, PRESIDENT BUSH FOR WHOM YOU'VE WORKED, HE WAS IN FAVOR OF IMMIGRATION REFORM THAT HAD BOTH PARTS, RIGHT? THAT IT TOOK CARE OF, OR IT DEALT WITH THE ISSUE OF ILLEGAL IMMIGRANTS WHO ARE ALREADY IN THE COUNTRY AND ALSO ABOUT CEILING THE BORDER BETTER, RIGHT?

>> AND HE MADE SOME OF THOSE ARGUMENTS THAT SECRETARY NAPOLITANO WAS MAKING ON THIS PROGRAM. WHICH IS IF YOU WANT TO GET CONTROL OF THE BORDER, YOU HAVE TO HAVE SOME REGULAR WAY TO HAVE WORKERS COME NOT UNITED STATES AND BE REGISTERED INSTEAD OF, YOU KNOW, CROSSING THE BORDER ILLEGALLY. THAT'S AN IMPORTANT COMPLEMENT TO CONTROLLING THE PROBLEM AT THE BORDER ITSELF. YOU KNOW, IT IS A BIPARTISAN ISSUE. IT HAS BEEN IN THE PAST. BUT IT HAS ALMOST NO CHANCE IN THE CURRENT CONGRESS.

>> Lehrer: IN SHORTHAND, WHAT HAPPENED? WHY, WHERE DID THE-- WHY DID THE CONSENSUS GO AWAY?

>> WELL, IT'S-- I THINK IT'S A TOUGH QUESTION. SOME OF IT IS THE REPUBLICAN PARTY IS NOT THE REPUBLICAN PARTY OF GEORGE W. BUSH. IT DOESN'T HAVE A LEADER THAT MAKES THIS CASE. IT ALSO, YOU KNOW, BUSH FAILED WITHIN HIS OWN PARTY. THERE WAS A REVOLT AGAINST IT.

>> Lehrer: HE COULDN'T GET IT DONE.

>> HE COULDN'T GET IT DONE AND IT WAS A TALK RADIO ISSUE ALL ACROSS THE COUNTRY WITHIN THE CONSERVATIVE COMMUNITY AND THEY TURNED AGAINST THE LEGISLATION STRONGLY. SO I THINK THAT BURNED A LOT OF REPUBLICANS. THEY KNOW IT IS A TOUGH THING AMONG THEIR OWN CONSTITUENTS.

>> PRACTICALLY SPEAKING, JIM, IN AN INCREASINGLY LESS WHITE COUNTRY WHICH THE UNITED STATES IS, THE REPUBLICAN PARTY HAS BECOME AN INCREASINGLY MORE WHITE PARTY. AND THAT'S A REAL POLITICAL PROBLEM, JUST THE ARITHMETIC T WORKS AGAINST THEM.

>> Lehrer: YEAH. WELL, MICHAEL, STAYING ON THE REPUBLICANS FOR A MOMENT. THE REPUBLICAN PRESIDENTIAL NOMINATION RACE, WHAT IS YOUR OVERVIEW OF IT RIGHT NOW AS WE SPEAK?

>> WELL, I SPENT A LITTLE TIME RECENTLY IN IOWA AND NEW HAMPSHIRE.

>> Lehrer: UH-HUH.

>> THERE'S A LOT OF PEOPLE EXPRESSING MARGINAL SUPPORT FOR THIS CANDIDATE OR THAT BUT A LOT OF TALK OF WHO MIGHT GET IN. THAT'S KIND OF WHERE WE ARE, WHETHER IT IS MITCH DANIELS OR GOVERNOR CHRISTIE OF NEW JERSEY OR MIKE HUCKABEE WHICH WE WILL FIND ABOUT SOON. WHEN I WAS IN IOWA, TALKING TO THE GOVERNOR THERE HE SAID YOU HAVE TO CONSIDER HUCKABEE THE FRONT RUN NEVER IOWA.

>> Lehrer: THE WORD IS, THAT HE SAID TODAY HE IS GOING TO HAVE A MAJOR ANNOUNCEMENT TOMORROW ABOUT THIS. BUT HE DIDN'T SAY WHETHER HE IS GOING TO GO OR NOT.

>> I TALKED TO KEY-- HUCKABEE PEOPLE IN IOWA. AND HUCKABEE HAS TOLD THEM I'M GENUINELY UNDECIDED. HONESTLY, YOU KNOW, GONE BACK AND FORTH ABOUT THE ISSUES. AT LEAST THAT IS WHAT HE IS TELLING HIS SUPPORTERS IN IOWA.

>> Lehrer: HAVE YOU PICKED UP ANYTHING ON THAT?

>> I DO NOT KNOW. THOSE ARE THE TERRIBLE WORDS THAT A PUNDIT-- IS NEVER SUPPOSED TO SAY.

>> Lehrer: HEY, COME ON.

>> I MEAN I CAN POT BELIEVE. I THINK THE NOMINATION FOR MIKE HUCKABEE-- .

>> Lehrer: DO YOU THINK HE COULD WIN IT.

>> I THINK HE IS CONSIDERED THE FAVORITE IN IOWA.

>> Lehrer: HE WON IT BEFORE.

>> THERE'S NO HAILEY BARBER. NEWT GINGRICH IS NOT A SOUTHERNER. A GEORGIA HOUSE SEAT BUT A WASHINGTON FIGURE FOR THE PAST 15 YEARS. MIKE HUCKABEE IN SOUTH CAROLINA AND EYE WAR, TWO OF THE FIRST FOUR TEST, I WOULD SAY YOU WOULD HAVE TO SAY HE'S NO WORSE THAN AN EVEN BET IN THOSE FOUR. AND I THINK AS A RETAIL POLITICIAN, HE'S AS GOOD AS ANYBODY IN EITHER PARTY. AND IF HE COULD SPEND THE TIME, RETAILING, THAT IS MEETING VOTERS IN SMALL GROUPS IN A PLACE LIKE NEW HAMPSHIRE, COREALLY, I THINK, MAKE A DENT.

>> Lehrer: WELL, LET'S GO THROUGH SOME OF THE FOLKS THAT WE KNOW WHO ARE IN. NEWT GINGRICH CAME IN THIS WEEK. WHAT ARE YOU THOUGHTS HIS CHANCES?

>> NEWT GINGRICH WILL, THERE WILL BE ONE IDEA, THIS IS BILL Mc-- A REPUBLICAN POLLSTER'S, THERE WILL BE ONE IDEA THAT NEWT GINGRICH INTRODUCES THAT NOBODY ELSE THOUGHT OF THAT WILL BE PART OF THE AGENDA, PART OF THE DEBATE. HE IS-- .

>> Lehrer: YOU DON'T KNOW WHAT THE IDEA IS.

>> I HAVE NO IDEA WHAT IT WILL BE. BUT IT WILL BE AN INTERESTING IDEA. NEWT GINGRICH, WALKER PERCENTY THE GREAT SOUTHERN WRITER DESCRIBED NEWT GINGRICH. HE DIDN'T HAVE IN HIM IN MIND. HE SAID DO NOT BE THE KIND OF PERSON THAT GETS ALL AS IN AN ODE LIVING THAT IS FUTURE GINGRICH'S FAULT. WILL NOT BE PRESIDENT OF THE UNITED STATES. HE WILL BE AN INTERESTING CANDIDATE.

>> Lehrer: MICHAEL.

>> I THINK I AGREE WITH THAT HE HAS A LOT OF BAGGAGE FROM HIS OWN PERSONAL BACKGROUND. HE MAKES A LOT OF GAFFES. HIS WIND WORKS TOO QUICKLY SOMETIMES FOR HIS MOUTH. AND I THINK THAT A LOT OF REPUBLICANS VIEW HIM AS KIND OF THE GHOST OF REVOLUTIONS PAST. I MEAN-- HE IS IDENTIFIED WITH THE 1990s. NOT NECESSARILY WITH THE FUTURE OF THE REPUBLICAN PARTY. SO YOU KNOW, HE'LL BE GOOD IN THE DEBATES. AND HE'LL CONTRIBUTE TO THE DISCUSSION, THERE'S NO QUESTION. BUT IT'S HARD TO FIND PEEP WHO THINK HE'S GOING TO BE THE NOMINEE.

>> Lehrer: RON PAUL, FORMALLY ANNOUNCEDDED THEY. HE IS OFFICIALLY IN, HE HAS RUN BEFORE, OF COURSE, HE IS A LIBERTARIAN.

>> THIS SHOULD BE HIS MOMENT, THE KIND OF TEA PARTY MOMENT. AND HE HAS THE MOST COMMITTED SUPPORTERS IN THE REPUBLICAN FIELD. THEY'RE NOT A MAJORITY BUT THEY ARE VERY STRONG. OF COURSE HE HAS KIND OF A LIBERTARIAN LOOPINESS WHEN IT COMES TO A LOT OF ISSUES. HE IS FOR THE LEGALLIZATION OF PROSTITUTION AND HARD DRUGS AND YOU KNOW, IT'S HARD TO RUN AS A REPUBLICAN AND BE THE HOOKER AND HEROIN CANDIDATE. IT'S JUST VERY DIFFICULT. SO I THINK THERE'S A LIMIT, A CEILING ON WHAT HE CAN ACCOMPLISH IN THE RACE. BUT HE'LL BE A FACTOR.

>> Lehrer: DO YOU AGREE.

>> THERE ARE OTHER REPUBLICANS HAVE ALREADY PREEMPTED THE HOOKER CONSTITUENCY.

>> MOVING RIGHT ALONG, MARK.

>> NO, I THINK THAT RON PAUL, YOU COULD SAY, JIM, IS A STRONGER CANDIDATE TODAY THAN HE WAS IN 2008. NOT SIMPLY BECAUSE AS MICHAEL POINTS OUT HE HAS THAT COMMITTED BASE. HE HAS FINANCIAL SUPPORT TOTALLY NOT COMMENSURATE WITH HIS VOTE TOTALS. HE'S GOT PEOPLE-- SO HE WILL HAVE MONEY ALL THE WAY THROUGH. BUT THE REPUBLICAN PARTY IS A MORE CONSERVATIVE PARTY TODAY THAN IT WAS IN 2008. IT'S FAR MORE CONCERNED TODAY THAN IT WAS THEN WITH FISCAL SANITY, FISCAL RESPONSIBILITY AND CUTTING THE BUDGET. THAT WAS RON PAUL. RON, THERE IS A WANING ENTHUSIASM AND SUPPORT FOR THE WAR IN AFGHANISTAN ACROSS-THE-BOARD, EVEN AMONG REPUBLICANS. RON PAUL HAS BEEN ON THAT ONE. SO I-- HIS SON GOT ELECTED TO THE UNITED STATES SENATE IN THE INTERIM. SO HE WILL NOT BE NOMINATED. WILL NOT BE ELECTED. BUT HE COULD SHAPE THE DEBATE MORE THAN HE DID LAST TIME.

>> MITT ROMNEY MADE A SPEECH ON-- IN THE HEALTH CARE RELATED, OF COURSE, TO THE HEALTH-CARE PLAN THAT WAS ENACTED WHEN HE WAS GOVERNOR OF MASSACHUSETTS. WHAT DID YOU THINK ABOUT THAT AND DOES THAT HELP HIM OR HURT HIM?

>> HE HAD TO DEFEND IT FOR FIRST OF ALL IT'S THE SIGNATURE ACHIEVEMENT OF HIS ARE YOU PICK-- PUBLIC CAREER, THE HEALTH-CARE BILL HE PASSED IN MASSACHUSETTS. SECONDLY THE KNOCK ON MITT ROMNEY IS THAT HE IS A LITTLE BIT OF A SALESMEN. THAT WHAT DO YOU NEED TO CUT THIS DEAL? YOU KNOW, WHAT DO YOU WANT. DO YOU WANT A LITTLE ABORTION. A LITTLE GAY RIGHTS. SO HE HAD THE STICK ON THIS. AND SECONDLY, HE, THE FRONT-RUNNER. THE PERCEIVED FRONT-RUNNER IF THERE IS ONE. EVERYBODY IS GOING AFTER HIM. AND THIS IS THE TEST OF WHETHER HE HAS A GLASS JAR IN BOXING TERMS. WHETHER HE CAN TAKE A PUNCH. AND HE HAD TO BE-- HE HAD TO BE STALWART AND STEADFAST.

>> HE DEFENDED IT.

>> I THOUGHT HE DID PRETTY WELL.

>> WHAT DO YOU THINK?

>> I THINK HE'S EXCEEDED HIS QUOTA OF PERMISSIBLE FLIP-FLOPS. THERE'S NO WAY THAT HE COULD DO THIS ON HIS MAJOR, YOU KNOW, INITIATIVE. IT'S A REAL PROBLEM FOR HIM. I MEAN THIS PRIMARY IS GOING TO BE IN MANY WAYS ABOUT OBAMA CARE, AMONG REPUBLICANS. AND IT'S HARD TO DISTINGUISH MUCH DIFFERENCE BETWEEN OBAMACARE AND ROMNEYCARE AND IT'S A VERY DIFFICULT SITUATION. YOU MAKE SO MANY FRAGILE FRONT-RUNNERS.

>> Lehrer: BACK TO THOSE WITHOUT ARE NOT IN YET. AND MITCH DANIELS, DO YOU READ IT THE SAME WAY OTHERWISES ARE READING IT. THAT IT SEEMS LIKE MOST OF THE MAIN LINE REPUBLICANS ARE PLEADING WITH MITCH DANIELS TO RUN BECAUSE THEY THINK HE WOULD BE-- HE WOULD BE THE BEST CANDIDATE. IS THAT, AM I PICKING UP THIS, AM I READING THIS CORRECTLY.

>> I THINK HE'S THE ESTABLISHMENT FAVORITE IN THIS AND HE'S BEEN A VERY EFFECTIVE GOVERNOR, YOU KNOW, ON SCHOOL CHOICE, ON CONTROLLING THE BUDGET. I MEAN REALLY ONE OF THE BEST REPUBLICAN GOVERNORS IN THE NATION. AND I THINK PEOPLE RESPECT THAT. HE HAS A KIND OF BLUNT MANNER THAT PEOPLE LIKE. AND DID A GOOD POPULIST IN INDIANA WHICH PEOPLE UNDERESTIMATE. HE DROVE HIS HARLEY AROUND THE STATE DURING HIS CAMPAIGN. HE STAYS IN PEOPLE'S HOMES. I THINK HE WOULD BE A STRONG CANDIDATE. NOT NECESSARILY A TYPICAL ONE. HE DOESN'T LOOK LIKE, YOU KNOW, A NORMAL CANDIDATE BUT HE WOULD BE A VERY GOOD ONE.

>> Lehrer: WHAT IS YOUR READING ON DANIELS SM.

>> I THINK MITCH DANIELS IS AN IMPRESSIVE PERSON.

>> Lehrer: DO YOU THINK WILL GO?

>> I DO NOT KNOW. I THINK THAT'S A PERSONAL-- .

>> Lehrer: TWICE YOU SAID --

>> IT'S A PERSONAL DECISION. I THOUGHT MARIO CUOMO WAS GOING TO RUN IN '92 WHEN HE COULD HAVE WON THE NOMINATION AND THE WHITE HOUSE AND HE DIDN'T. THIS WILL BE VERY PERSONAL INVOLVING MITCH AND HIS FAMILY, HIS FOUR DAUGHTERS IN PARTICULAR WHO HAVE RESERVATIONS ABOUT HIS MAKING THE RACE. HE'S ALREADY WON THE PUNDIT'S PRIMARY. I THINK THAT'S FAIR TO SAY. I THINK MICHAEL WOULD AGREEMENT I MINE THE PUNDITS WHO HAVE WEIGHED IN HAVE CAST THEIR BALLOTS INCLUDING DAVID BROOKS AND OTHERS FOR HIM. WHICH COULD BE A LIABILITY IN CERTAIN REPUBLICAN CIRCLES.

>> Lehrer: SPEAK OF PUNDITS, THANK YOU BOTH VERY MUCH.

>> THANK YOU.

>> Woodruff: AND NOW TO SOME MORE WARM WORDS FOR JIM FROM HIS FRIEND AND COLLEAGUE, ROBERT MacNEIL.

>> I FIND JIM LEHRER'S MANNER OF WITHDRAWING AS CHIEF ANCHOR OF THE NEWSHOUR QUITE REMARKABLE, BECAUSE I CANT RECALL ANY NEWS ANCHOR DOING IT AS HE HAS. FIRST, HE TOOK HIS NAME OFF THE PROGRAM. HAS ANYONE EVER DONE THAT BEFORE, VOLUNTARILY? IN 2009, WITH HIS FULL APPROVAL, THE PROGRAM CEASED BEING "THE NEWSHOUR WITH JIM LEHRER" AND BECAME "THE PBS NEWSHOUR." IT WAS A GROUND-BREAKING MOMENT. IT RATIFIED THE NEWSHOUR'S POSITION ANCHORING THE PBS EVENING PROGRAM SCHEDULE. IT HELPED FURTHER TO FIX THE PBS IDENTITY IN THE PUBLIC MIND, ENHANCING THE BRAND NAME. AND IT RECOGNIZED THE UNIQUE FREEDOM AND SUPPORT PUBLIC BROADCASTING GAVE US IN CREATING AN ALTERNATIVE FORM OF TELEVISION JOURNALISM AND BUILDING AN AUDIENCE FOR IT. SO, JIM TOOK HIS NAME OFF THE PROGRAM. BUT NO ONE MADE HIM DO THAT. HE WAS NOT BEING PUSHED OUT. THERE WAS NO CLUTCH OF NETWORK EXECS SAYING IT WAS TIME FOR HIM TO GO, NO SECRET MARKET RESEARCH TO FIND A YOUNG HOTSHOT FROM THE TV HINTERLAND, NO "VICE- PRESIDENT OF INTERIOR DECORATING," AS THEY USED TO SAY AT THE NETWORKS, ALREADY CONCOCTING A NEW SET. THE PBS EXECS LOVE LEHRER, AND SO DOES THE AUDIENCE. IT HAPPENED BECAUSE, FOR SEVERAL YEARS, JIM'S BEEN PRESIDING OVER A STEADY BUT SUBTLE REBIRTH OF THE NEWSHOUR, IN THE PROCESS, GRADUALLY HANDING OVER THE JOURNALISTIC AND ANCHOR RESPONSIBILITIES. INSTEAD OF SHOPPING FOR A NEW BRIGHT STAR, HE'S ENCOURAGED THE EMERGENCE OF A TEAM OF COLLEAGUES WHO INCREASINGLY SHARE THE ANCHOR DUTIES, AS WELL AS FIELD REPORTING. NOW, THE NEWSHOUR WORKS LIKE A REPERTORY COMPANY IN THE THEATER WITH DIFFERENT CORRESPONDENTS COMING FORWARD TO TAKE THE LEAD PART-- OR SHARE IT WITH ANOTHER- - ON DIFFERENT NIGHTS. AND AS JIM HAS GRADUALLY SUBTRACTED HIMSELF FROM ANCHOR DUTIES, THE INDIVIDUAL CORRESPONDENTS HAVE EMERGED, EACH WITH MORE SPACE, GIVING INDIVIDUAL PERSONALITIES AND THEIR PARTICULAR SKILLS MORE BREATHING ROOM. SO, WHAT JIM AND HIS TEAM HAVE ACHIEVED IS ANCHOR REPLACEMENT BY STEALTH, WITHOUT THE HOOPLA AND SPECULATION THAT USUALLY ACCOMPANIES THE ENTHRONEMENTS AND DETHRONEMENTS OF THESE KINGS AND QUEENS OF OUR MEDIA CULTURE. JIM HAS THUS BEEN ABLE TO BEQUEATH THE MOST PRECIOUS COMMODITY IN JOURNALISM, THE ENORMOUS TRUST AND CREDIBILITY HE HAS INSPIRED OVER THE YEARS. THAT CANNOT SIMPLY BE PASSED ON LIKE A PARKING SPACE OR A KEY TO THE RESTROOM. IT STARTS WITH FAIRNESS. JIM'S SENSE OF FAIRNESS IS DISTILLED IN THE PERSONAL GUIDELINES HE WORKS BY AS A JOURNALIST. THIS IS HOW HE OUTLINED THEM RECENTLY IN A TALK AT THE NATIONAL PRESS CLUB IN WASHINGTON: "DO NOTHING I CAN NOT DEFEND; COVER, WRITE AND PRESENT EVERY STORY WITH THE CARE I WOULD WANT IF THE STORY WERE ABOUT ME; ASSUME THERE IS AT LEAST ONE OTHER SIDE OR VERSION TO EVERY STORY; ASSUME THE VIEWER IS AS SMART AND AS CARING AND AS GOOD A PERSON AS I AM; ASSUME THE SAME ABOUT ALL PEOPLE ON WHOM I REPORT; ASSUME PERSONAL LIVES ARE A PRIVATE MATTER UNTIL A LEGITIMATE TURN IN THE STORY ABSOLUTELY MANDATES OTHERWISE; CAREFULLY SEPARATE OPINION AND ANALYSIS FROM STRAIGHT NEWS STORIES, AND CLEARLY LABEL EVERYTHING; DO NOT USE ANONYMOUS SOURCES OR BLIND QUOTES, EXCEPT ON RARE AND MONUMENTAL OCCASIONS. NO ONE SHOULD EVER BE ALLOWED TO ATTACK ANOTHER ANONYMOUSLY. AND FINALLY, I AM NOT IN THE ENTERTAINMENT BUSINESS." REGULAR VIEWERS OF THE PBS NEWSHOUR, ALONG WITH VISITORS TO ITS WEB SITE, SEE THOSE PRINCIPLES IN ACTION EVERY NIGHT. NOW, BY OSMOSIS, VIEWERS CAN BE CONFIDENT THAT EACH MEMBER OF THE NEWSHOUR TEAM WILL CONTINUE TO PRACTICE THE KIND OF JOURNALISM JIM HAS INSTILLED. SO THAT IS THE QUIET BUT IMPORTANT REVOLUTION JIM HAS GUIDED, WHILE GRADUALLY EXTRACTING HIMSELF FROM THE MOST VISIBLE AND PUBLIC ROLE. IT'S THE MOST CONSTRUCTIVE AND GRACEFUL EXIT STRATEGY I HAVE EVER SEEN FOR SOMEONE HOLDING SUCH A COVETED AND SENIOR POSITION. IT GUARANTEES A CONTINUED PLACE IN TODAY'S BEWILDERING MEDIA SPECTRUM FOR A PROGRAM THAT WILL STAY DEVOTED TO SERIOUS JOURNALISM. I KNOW JIM VERY WELL. WE HAVE BEEN COLLEAGUES, FRIENDS AND BUSINESS PARTNERS FOR DECADES NOW, AND I SALUTE HIM FOR HOW HE IS HANDLING HIS EXIT BY STEALTH.

>> AGAIN, THE MAJOR DEVELOPMENTS OF THE DAY T WAS ANOTHER BLOODY FRIDAY IN SYRIA AS SECURITY FORCES OPENED FIRE ON THOUSANDS OF PROTESTORS. AT LEAST SIX WERE KILLED. SUICIDE BOMBERS IN PRAK STAND KILLED AT LEAST 66 POLICE RECRUITS AS REVENGE FOR THE DEATH OF OSAMA BIN LADEN. AND THOUSANDS OF PEOPLE IN LOUISIANA YAJUN COUNTRY WAITED FOR ENGINEERS TO OPEN A SPILLWAY FLOODING THEIR LAND TO SAVE BATON ROUGE AND NEW ORLEANS. AND TO HARI SREENIVASAN FOR WHAT'S ON THE NEWSHOUR ONLINE. HARI.

>> Sreenivasan: READ MORE ABOUT JIM'S CAREER, WATCH VIDEO HIGHLIGHTS, AND LEAVE YOUR REFLECTIONS ON OUR SPECIAL PAGE. FIND OUR LIVE CHAT ABOUT A NEW DOCUMENTARY ON PAKISTAN'S LATE PRIME MINISTER BENAZIR BHUTTO, AND A PUBLIC MEDIA INITIATIVE AIMED AT WOMEN'S LEADERSHIP. PLUS, A REMINDER: THE SPACE SHUTTLE "ENDEAVOUR" IS SET TO LAUNCH MONDAY AT 8:56 A.M. EASTERN. WATCH IT LIVE ON OUR SITE, AND FIND COVERAGE FROM SCIENCE CORRESPONDENT MILES O'BRIEN ON spaceflightnow.com. ALL THAT AND MORE IS AT newshour.pbs.org. JUDY.

>> Woodruff: AND THAT'S THE NEWSHOUR FOR TONIGHT. ON MONDAY, WE'LL REMEMBER THE FREEDOM RIDERS WHO CHALLENGED SEGREGATION IN THE SOUTH IN THE EARLY 1960s. I'M JUDY WOODRUFF.

>> Lehrer: AND I'M JIM LEHRER. "WASHINGTON WEEK" CAN BE SEEN LATER THIS EVENING ON MOST PBS STATIONS. WE'LL SEE YOU ONLINE, AND AGAIN HERE MONDAY EVENING. HAVE A NICE WEEKEND. THANK YOU AND GOOD NIGHT. MAJOR FUNDING FOR THE PBS NEWSHOUR HAS BEEN PROVIDED BY:

>> I WANT TO KNOW WHAT THE UNIVERSE...

>> LOOKS LIKE.

>> FEELS LIKE.

>> FROM DEEP SPACE.

>> TO A MICROBE.

>> I CAN CONTRIBUTE TO THE WORLD BY PURSUING MY PASSION FOR SCIENCE.

>> IT REALLY IS THE KEY TO THE FUTURE.

>> I WANT TO DESIGN...

>> A BETTER SOLAR CELL.

>> I WANT TO KNOW WHAT'S REALLY POSSIBLE.

>> I WANT TO BE THE FIRST TO CURE CANCER.

>> PEOPLE DON'T REALLY UNDERSTAND WHY THINGS WORK.

>> I WANT TO BE THAT PERSON THAT FINDS OUT WHY.

>> AND BY BNSF RAILWAY. PACIFIC LIFE. AND BY THE ALFRED P. SLOAN FOUNDATION. SUPPORTING SCIENCE, TECHNOLOGY, AND IMPROVED ECONOMIC PERFORMANCE AND FINANCIAL LITERACY IN THE 21ST CENTURY. AND WITH THE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGRAM WAS MADE POSSIBLE BY THE CORPORATION FOR PUBLIC BROADCASTING. AND BY CONTRIBUTIONS TO YOUR PBS STATION FROM VIEWERS LIKE YOU. THANK YOU. Captioning sponsored by MacNEIL/LEHRER PRODUCTIONS Captioned by Media Access Group at WGBH access.wgbh.org

>> THIS IS C WORLD NEWS AMERICA. FUING FOR THIS PRESENTATION IS MADE POSSLE BY THE FREEMAN FOUNDATIONF NE YOR STOWE, VEONT, AND HONOLULU . NEWMAN'S OWNOUNDION AND ION NK. UNION BA HASUT ITS FINCIAL STRENGTH TO RK FOR AIDE RANGE O COMPANIE FROSMALL BUNESS TO MAJOR RPORIONS. WHATAN WE DO FOR YOU?

>> AND