The NewsHour With Jim Lehrer : WETA : July 30, 2009 7:00pm-8:00pm EDT; The NewsHour With Jim Lehrer

Captioning spnsored by MaEIL/LEHRER PRODUCTIONS

>> Lehre GOOD EVENING, I'M JIM LEHRER. ON THE "NEWSHOUR" THIS THSDAY: THE LEAD STORIS AN UPDATE OF THE ON-GOING BATTLE OV HEALTH CARE RERM. THEN, WE HAVE THE HER NEWS OF THE DAY; A NEWSMAKER INRVIEW WI SPEAKER OF THE HOUSE NAN PELOSI; THE LATESTN THE NEW POST-ELECTIONURMOIL IN IRAN; A PAUL SOLMAN REPO ON TRANSPARENCY AND THE FEDERA RERVE; AND A LOOK AT THE LEGED THREAT OF HOMEGROWN TERRORISM. MAOR FUNDING FOR THE NEWSHOUR WITH JIM LEHRER ISROVIDED BY:

>> WHAT THE WLD NEEDS NOW IS ERGY. THE ENERGYO GET THE ECONOMY HUMMING AGAIN. E ENERGY TO TACKLE CHALLENGE LIKE IMATE CHANGE. AT IS THAT ENER CAME FROM AN ENGY COMPANY? EVERYDAY, CHEVRON IESTS $62 MILLION PEOPLE, IN IDEAS-- SEEKING, TEACHING, BUILDI. FUELING GROWTH AROD THE WORLD TOOVE US ALL AHEAD. THIS IS THE POWER OF HUN ENERGY. CHEVRON. INTEL. SUPPORTING MATH AND SCNCE EDUCATION F TOMORROW'S INNATORS. THE NATIONAL SCNCE FOUNDATION. PPORTING EDUCATION AND RESEARCH ACROSS ALL FIEL OF SCIENCE ANDNGINEERING. AND WITTHE ONGOING SUPPORT OF THESE INSTITUTIONS AND FOUNDATIONS. AND... THIS PROGR WAS MADE POSSIBLE BY THE CORPORION FOR PUBLIC BROADCASTING AND BY CONTBUTIONS TO YOUR PBS STATION FROM VWERS LIKE YOU. THANK YOU.

>> Lehrer: HEALTH CA EGISLATION CREPT FORWARD IN CONGRESS TAY. THE HOUSE ENERGY D COMMERCE COMMITTEE RKED ON A BILL A DAY AFTELEADERS STRUCK A DEAL WITH CONSERVATIVE "BLUE G" DEMOCRATS. THEY SAID IT WOULD CUT T COST OF THE BILL BY100 BILLION. ITOULD ALSO MOVE AWAY FROM USING MEDICARE AS THE DEL FOR A GOVERENT INSURANCE OPTION. AND IT WOULD EXEMPTORE BUSINESSEFROM A MANDATE TO PRIDE COVERAGE. HOUSE MINORITY LEADER BONER INSISTED THEEMOCRATS' BILL STILL MEANS TING SMALL BUSINESS, CUTTINMEDICA AND GIVING GOVERNMENTOO MUCH CONTROL.

>> CLEARLY, THEY VEN'T LEARNED. THE AMERICAN PPLE DON'T WANT THE GOVERNMENT INVOED IN DELIVERING THEIR HEALTH RE. THEY WANT RE REFORMS THAT DRE DOWN THE COST FOR THEMSELVES AND TIR FAMILIES. AND DEMOCRATS APPEAR REY TO LEAVE TOWN FOR THE AUST RECESS WITH A SO-CALLEDEAL IN HAND. THINK IT'S SAFE TO SAY THAT ER THE AUGUST RECESS, AS MO AMERINS LEARN MORE ABOUT THEIR PLAN,HEY'RE LIKELY TO HAVE A VERYVERY HOT SUMMER.

>> Lehrer: ON THE SENATE SE, ONE OF THE SILAWMAKERS INVOLVED IN BI-PARTIS TALKS RAISED A WARNING FLAG. BUT REPUBLICAN MIKENZI OF WYOMING INSIED THE BILL IS "NOT READY FOR PME TIME". THERE'VE BEEN REPORTS THGROUP WILL DISCARD GOVERNMENT OPTION PLAN A THE EMPLOYER MANDATE. BUT MAJORITY LEADEREID EMPHASIZED AGAIN, THKEY IS TO WIN 60 VOTES, TO OVERCOME A FILIBUSTER.

>> WE HAVTO HAVE TO HAVE 60 VOTES. IS THAT FAI WELL, THAS THE RULE WE IN AMERICA IS THE UNITED STES SENATE WAS SET UP BY T FNDING FATHERS THAT REQUIRES US TO GET THE TES AS REQUIRED UNDER THE RULES OTHE SENATE. ANWE'RE GOING TO DO THAT. THAT'S OUR PROSS, WE CAN'T DO IT THOUT REPUBLICAN SUPPORT. EVEN THOH REPUBLICAN LEADERSHIWANTS TO STIFF EVYBODY AND DO NOTHING. > Lehrer: WE'LL HAVE MORE ABT THE HEAL CARE FIGHT AND OTHER ISSUES IN AN INTEREW WITH USE SPEAKER PELOSI. BUT FIRST, HERE IS JEFFREY BWN WITH THE OTHER NE OF THE DAY.

>> Brown: THE U.S. HOUS APPROVED A DEFENSE SNDING BILL TODAY THAT KILLS PLA FOR MORE F-22 GHTER JETS. THE SENA HAD ALREADY DONE SO. DEFENSE SECRETARY ROBERGATES HAD ARGUED THERE'S NEED FOR ADDITIONAL PLES AND WHITE HOUSE OFCIALS THREATENED A VETO. TODAY'S DEBATE DIVIDED OV MAINTAININGHE CURRENT FLEET WITHOUT BUILDING NEW TS.

>> WH I'VE DONE IS TRY TO ROBUSTLY ND THE PROGRAM AS IT IS. EY ALREADY HAVE 187. LES MAKE SURE IT'S FUNDED ADEQUATELY. LET'S MAKE SURE TH HAVE WHAT THEY ED. THERE ARE A LOT OF MAINTENCE PROBLEMS WITH THE F-22'S. THERE'S NO QUESTION AUT IT. >>E ALL KNOW THAT TO MAINTAIN AIR SUPERIORITY WHICWE'VE HAD SINCE THE KOREAN WARREQUIRES TWO ELEMES. ONE IS THE THNOLOGICAL ABILITY WHICH WE KNOTHE F-22 PROVIDES. BUT THOTHER IS NUMERICAL SUPERIORITTHAT WE HAVE TO VE. WHAT WE ARE DOING IS PUING OURSELVES IN DGER TEN AND 15 YEARS OUT, OF BEIN ON THE WRONG SIDE OF HISTORY.qp

>> Brown: THE HOUSE REFUS TO DROP VERAL OTHER PROGRAMS, INCLUDING A NEWLEET OF PRESIDENTIAL HELICOPRS. A FEDERAL JUDGEN WASHINGTON HAS ORDERED THE RELEASE OF E OF THE YOUNGT DETAINEES AT GUANTANAMO. THE JUDGE RULED MOHAMD JAWAD IS BEING HELD ILLEGAY. HE ALLEGEDLY WOUNDED TWS. SOLDIERS IN AFANISTAN IN 2002. THE.S. MILITARY SAYS HE'S ABOUT 24 YEARS O, JAWAD SAYS HE'S MUCHOUNGER AND WAS TORTURED INTO CONFEING. HE COULD BE RETURD TO AFGHANISTAN NE MONTH. BUT THE STICE DEPARTMENT IS CONSIDERING A CRIMINAL INDICTMENT AND COULD STL BRING JAWAD TO THE U.S. TO STAND TRIAL. THE WHITE HOUSE HOSTED THEO- CALLED "BEERUMMIT" THIS EVENING, HOPING TO 1T TO RT A RACIAL COROVERSY. PRESIDENOBAMA INVITED HARVARD SCLAR HENRY LOUIS GATES TAND JAMES CROWLEY, THE POCEMAN WHO ARRESTED GES AT HIS HOME THIS MONTH FODISORDERLY NDUCT. THE PRESIDENT INIALLY SAID THE POLICE AED "STUPIDLY", BUT LATEROICED REGRET FOR THOSE WORDS. HE H THIS TO SAY, THIS AFTERNOON.

>> THESWERE PEOPLE INVOLVED-- INCLUDING SELF-- ALL OFHOM ARE IMPERFECT AND HOPEFULLY INSTEAD OF GINING UP ANGER D HYPERBOLE EVERYBODY CAN JUST SPEND A LITTLE BIT OF TIME WITH SO SELF-REFLECTION AND RECOGNIZING THAT OTHER PEOPLE HA DIFFERENT POINT OF VIS.

>> Brown: E PRESIDENT HAS SAID HE BELIEVES BOTH GATES A CROWLEY OVER-REACTED DURING THEIR CONFRONTATION. ON WALL STREET TODAY, STOC SCORED GAINS ON RONGER CORPORA EARNINGS THE DOW JONES INDUSTRIAL ARAGE GAED 83 POINTS TO CLOSE AT 9,15 THE NASDAQ SE 16 PNTS TO CLOSE AT 1984. THERE'S NEINFORMATION ON BOUSES PAID BY NINE BIG BANKS THT RECEIVED FEDERAL RESCUE MONEY LAST YR. THE NEW YORK STATE TORNEYTE GENERAL'S OFFICE REPORTEON THE PAYMENTS DAY. CITIGROUP LED THWAY. IT PAID OUT MORTHAN $5 BILLION AND RECVED MORE THAN $45 BILLION IN GOVERNMENT AID. BANK OF AMECA GOT THE SAME AUNT IN FEDERAL HELP. IT PAID OUT MORE TH $3 BILLION IN NUSES. AND MORE BAD NEWS FOR BASEBL TODAY: "THEEW YORK TIMES" REPORTED THAT DAVID ORTIZ AND MANNY RAMIREZ TESTEDOSITIVE FOR PERFORMANCE-ENHAING DRUGS BACK 2003. A YEAR LATER, THELED THE BOSTON RESOX TO THE FRANCHISE'S FST WORLD SERIES TITLE SINCE 1918. ORTIZ STILL PLAYS FOR THE D SOX. RAMIREZ IS WITH THE LOS AELES DODGERS. HEECENTLY SEED A 50-GAME SUSPENSION FOR VLATING BASEBALL'S DRUG LICY.

>> Lehrer: AND SLL TO COME ON TH "NEWSHOUR" TONIGHT: TURML IN IRAN; TRUSTING TH FED SRECY AND THE FED; AND ERICAN JIHADISTS. THAT FOLLOWOUR NEWSMAKER INTERVIEW WH THE HOUSE SPEAKER NANCY PELOSI. JUDY WOODRUFF TALKED WI HER THIS AERNOON AT THE CAPITOL.

>> odruff: HOUSE SPEAKER NAN PELOSI, THANK YOVERY MUCH FOR TALKING TH US.

>> MYPLEASURE.

>> Woouff: IF "A REQUES" IS THE BEGINNING OF OF T HEALTH CAREEFORM AND "Z" IS THE PRIDENT'S SIGNATURE, WHEREDO YOU STAND IN

>> WE'RE SOMEWHERE INHE MIDDLE OF THE ALPHABET BUT WE HAVE A LONG IT TO GO. I WOULD SAY WE'RE PROBABLY AROUND-B-C-D-E-F-G-H-I-G-J-... I'VE BEEN SINGING WITH MY GRANDSONS. ABOUT "CAN CAN CANAN" I WOULD IMAGINE. WE HAVE A LONG WAYO GO.

>> Woodruff: E HOUSE ENEGY D COMMERCE COMMITTEE. A LOT OF ATTENTION WI THE BLUE DOG DEMOCRATS, SELF-DESCRIBED FISCAL CONSERVATIVES WITH OTHERS ON THE COMMITTE EENTIALLY AND WITH THE LEADEHIP, YOU, ESSENTIALL CUING BACK ON THE PUBLIC PLA THERE ARE THERE'S ALREY CONCERN BEING RAID BY PROGRSIVEEMOCRATS THATOO MUCH IS BEING GIVEN TO THE BLUE DOGS. WHAT DO U SAY TO THEM?

>> WELL, FIRSTOF ALL, I DON'T LE THE WORD "DEAL" BECAUSE IS ISN'T ABOUT A DEAL, IT ABOUT AN AEEMENT AS TO HW WE WILL GO RWARD AND A RECOGNITION OF SOME O THE NEEDS THAT SOM OF THE MEMBERS HA TO MEET THE NEEDS OF THEIR CONSTITNTS IN RURAL AREAS. THE PUBLIC OPTION IS A MUSHAVE PROVISION FORE, A STRONG PUBL OPTION. ANDHE PUBL OPTION IS IN THI AGREEMENT. THE LANGUAGE OF IT IS EXACTL LANGUAG THAT SENATOR KENNE HAS IN THE HELPILL INHE SENATE. AND SO IT IS SOMETNG THAT ACCEPTABLEANGUAGE. I'D KE TO IMPROVE UPON IT AND WE LIKE O ORIGINAL LANGUAGE THAT IS INTHE WAYS AND MEANS COMMITE AND THE EDUCATION AND LABOR COMMITTEE. BUT THIS IS THE LGISLATIVE PROCESS, THE GIVE AND TAKE OF THAAND THERE'S PLENTY IN THIS LEGISLATION FOR EVERYONE IN AMERICA TO REOICE ABOUTWHO CARES-- AS EVERYONE, I THINK, IN HE CONGRESS DOES-- ABOUT MAKING OURCOUNTRY HEALTHR.

>> Reporter: IS IT FAIR TO SAY THESE NCESSIONS TO THE MORE MODERATE CONSERVATIVE DEMOCTS ARE TEMPORARY JUST TO GET THE BILL OUT OF COMMITTEE OR THEY COD BE THERE IN THE LONG RUN TO G IT THROUGHHOUSE?

>> WELL, FIRST OF ALL, LET ME SAY THIS. SOME OF T INIATIVES ARE INITIATIVES THAT... IDEAS THAT HAVE BEEN SHARED B MANYEMBERS OF CONGRESS. FOR EXAMPLE, ONEOF THEIR BIG POINTS WASHE INCREASING... THE EXETION FOR SMALL BUSINESSES TO $250,000 PAYROLL TO 00,000 YROLL. THAT HAD VERY GENERAL PULARITY IN OUR CAUCUS AND INHE CONGRESS, I'M SUR AMONG PUBLICANS AS WELL. SO THAT WAS ONE POT. ANOTH POINT WAS HOW WE DO THE PUBLIC OPTION THAT IS MORE SERVICEABLE TO THEM IN THEIR REGIONS ANDTHAT'S... THIS IS ONE BI, WE HAVE TWOWO OTHER BILLS, TH HAVE A STRGER PUBC OPTION IN IT. THIRD IS THE LOWER COST. WE A SHARE THAT VW. AND, OF COURSE, THEY WANT MORE TIME TO REVIEW T BILL NOW THAT WE'VE HAD THESEHANGES. THESE AR ALL WITHIN THE REALM OF A VERY IMPORTAN PIECE OF LEGISLATION TAT MUST GOFORWARD AND HAVE A COMPLETE CFORT LEVEL TH WHAT THE AGREEMENT CONTAINE

>> Woodruff: I HEAR YOU SAY YOU COULD LI WITH ITF, FOR EXAMPLE, THENUMBER OF SML BUSINESSES TAT DIDN'T HAVE TO PROVIDE INSURANCE FOR THEIR EMPLOYEES REMAINED WHERE THE MORE CONSERVATIVE DECRATS WANT IT? 5.3 MILLION, I THINK IT IS.

>> >> ACTUALLY, WE WERE OUR WAY TO THAT PLA AND THIS JUST GAVE IT FURTHER IMPETUS BECAUSE MANY MEMRS... I HAD A LETTERROM I THNK 21 O 2 OF MYRESHMEN MEMBERS SAYING "WE WANT TO GO TO 50" IT HAD GREAT POPULARITY AND THE BLUE DOG MEMBE OF THE COMMTEE PUT THAT FOARD. B THE IMPORTANT THING IS IS WE WILL HAVE A BILL AND WHEN IT COM TO THE FLOOR WEILL HAVE THE VOTES AND IT WILL BE SOMETHING TH WILL HAVE GENAL ACCEPTANCE AND SOMETHINGHAT WE LL ALL TAKEREAT PRIDE IN.

>> Woodruff: E OTHER PROVISION. T MORE CONSERVATIVE DEMOATS INSISTED ONAVING THE STAT SHARE T COSTN EXPANDING MEDICAID WHICH IS HETH INSURANCE FOR T POOR. IS THAT SOMETHING YOU THINK WILL STAY THERE?

>> WELL, WE'RE TALKING ABOUT 2016. IN 2016, TRE WOULD BE A 7% SHARING OF THE STATES. 2016. OURNDERSTANDING IS-- BUTE HAVEN'T SEEN IT YET FROM THE SETE-- IS THAT THEY WILL VE AUCH BIGGER SHA FOR THE STATES. IN THE LEGISTION. SOHIS IS NOTOMETHING OUT OF TH BLUE. BUT IT IS A SMALLERCENTAGE SEVEN YEARS FOM NOW.

>> Woouff: SO TOHOSE WHO SAY AIT A MINUTE,E'RE WOIED THAT YOU'RE ALRDY GIVING AWAY THE STORE TO SOME DEMOCRATS AT DO YOU SAY?

>> WELL, I DON'T GETHE POINT. THIS IS ABOUT THE AMERICAN PEOPLE. WHAT I HAVE ALWAYS SAID IS WE WILL HAVE A GOOD STRONG BILL WITH A ROBUST PUBLIC OPTION AND WE WILL. WH I'VE ALSO ID,T'S NOT ABOUT DEMOCTS OR REPUBLICANS OR ANY PLACE ACROSS THE SPECTRUM IT'S ABOUT THE AMECAN PEOPLE. AND THE BILLMUST WORK FR THEM AND TH IS A BILL THAT SAYS TO THEINSURANCE COMPANIESA NEW DAY HAS DAWNED. NO LONGER WILL YOU BE ABLE TO EXPLOIT TH AMERICAN PEOPLE BY DEPRIVING... DSCRIMINATING AGAINST THEM IF THEY HA A PRE-EXISTING MEDICALCONDITION, IF THEY LOSE THIR JOB OR CHANGE THEIR JOB OR WNT TO START BUSINESS OR BE A SELF-EMPLOYED, THEY STILLILL HAVE WILL HAVE HETH INSURANCE. IF THEY ARE SICK AND HAVE INSUNCE, YOU CAN NOONGER PULL HE PLUG ON THEIR HEALTH INSURANCE" AS THEYAN D NOW. SO TH IS SAYING TO THEM FOR TOO LONG WE VE BEEN.. THE AMERICAN PEOPLE HAVE EN AT YOURERCY,OU'VE BEEN ABLEO NCREASE THE PMIUMS AT YOUR OWN WILL AND TH DIMINISHES THE ABILI OF THE AMERICAN PEOPL TO HAVE ACCESS.

>> Couric: EVEN WITH THESE CONCESSIONS, THOUGH, THE REPUICANS ARE STILL SAYING "WE'RE NOT GOING TO GO ONG TH THIS." HOUSE MINORITY LEADER JN BOEHNER SAID TODAYHIS WOULD BE A GOVERNMENT TAKEOV. IN FA, HE SAID "THIS CUENT LEGISLATION SPECIFIES AFR FIVE YEARS AN INDIVIDUAL WON BE BLE TO BUY POLICY ON HIS OWN, THEY WOULD HAVE TO G THROUGH A GOVERNMENT-N HEALTH INSURANCE EXCHAE.

>> I HAVEHE HIGHESTREGARD FOR MR. BOEHNER AS REPUBLICAN ADER. WHAT HE'S SAYING ISOT TRUE. AND I REGRET HAVE THAT TOAY THA MOSTLY EVERYTNG THAT THE REPUICANS HAVE SAID ABOUT TH PLANAS NOT BEEN TRUE. THOSE ARE THE TALKING POINTS TH HEALTH IURANCE INDUSTRY IN AMERICA AT'S GOTTEN U WHERE WE ARE TODAY WITH UPARD SPIRALING COST WITH PEOPLE WHO NEED MORE STABITY AND RTAINTY ABOUT THEIR HEAH INSURANCE AND THEIR GOOD HEALTH. THE HEALTH INSUNCE INDUSTRY MESSAGE IS T MESSAGE. THE ONLY SBI THEY WILL BE HEALTHI WITH THE REPUBLICAN PROSAL IS THE HEALTH INSURANCE DUSTRY.

>> WoodruffWHAT ABOUT, MADAM SPEAKR, WHAT YOU SEE WITH INCREASG CONCERNS ON THE PART OF THE PUBLIC THAT SHOWSP IN THE POLLS, PEOPLE JUST WORRIED MORE AND MORE TH THE COST OF HEALTCARE FOR THEM IS GOING TO GO UP UNDER YUR PLAN. WHAT DO Y SAY TO TEAM?

>> IT'S VERY IMPTANT. IF U SEE THE POLLIN THE "WALL STREET JOURNAL" THIS MORNG, IT WAS SOMETHING KE WHEN THEY HEAR ABOUT PEOPLE T PLAN PEOPLE ARE 40% SOMETHING OPPOSED 32% IN FAVOR. WHEN YOU TELL THEM WHAT'S IN E ILL IT GOES UP TO 59% IN FAVOR AND 32% AGAINST. PEOPLE HAVE TO KW MORE ABOUT IT. THE PRESIDE HAS BN VERY CLEAR. IF YOU HAVE HEALTH INSURANCE AND A DOCTOR TH YOU LIKE, Y CAN KEEP THEM. YO HAVE THAT CHOICE. AND ENLY WAY YOU CAN HAVE THAT CHOICE IS TO BE ABLE TO AFFORD THAT CHOICE. D THIS BILL WILL MAKEEALTH INSURANCE AFFORDAE FOR MANY MORE PEOPL IN OUR COUNT, STOP THE UPWARD SPIRALTHAT HURTS FAMILIES, THAT HURTSUSINESSES, AND THEIR COMPETITIVENESS, HELPS OUR ECONOMY A ITS VITALITY AND INCREASES THE ENTITLEMETS OF MEDICARE AND MEDICAID IN THE NATIONAL BUDT. SO THE STATUS QUO CANN CONTIE. IT'S E WORST POSSIBLE ARRANGEMENT IN ORDER TO CONTROL COST, IMPROVE RE, AND MAKE IT UNIVERSAL.

>> Woodruff: AS WE'VE BEEN DISCUSSINGTHE PRESSURESARE FROM EVERY WHIH DIRECTION ON HEALTCARE LEGISLATION.

>> THAT'S FOR SURE.

>> Woodruff: YOU HAVE COERVATIVES SAYING ONE THI, LIBERALSAYING SOMETHING ELSE. DEMOCRATS E SAYING THEY'RE WORRI... IN THE SENATE, ESPECILY, GIVE UP TOO MUCH TO JUST GET AEW REPUBCAN VOTES TO SAY THAT THISIS A BIPARTISAN BILL. ARE YOU WORRIED ABOUT THAT?

>> NO,'M NOT WORRIED ABOUT THAT AT AL THE PRESIDENT, BY E WAY... WERE IT NOT FORTHE PRESIDENT WEWOULD NOT BE AS FAR DOWN THE PATH AS WE ARE NOW. HIS LEADERSHIP HAS BEE ESSENTIALO THIS. BUT WHAT I SAY TO MY COLLEAES ISYOU HAVE TO GO OUT THERE AND SELL. YOU WANT ROBUST PUBLIC OPTION? YOU HAVE GO OUT THE AND SELL IT. YOU MUST INOCULTE AGAINST THE FALSE MESSA THAT THE OTH SIDE-- THE HEALTH INSURANCE INDURIES WILL BE PUT OUT THE ANYOU HAVE TO POSITIVELY SAY WHY A ROBUST PUBLIC OPTION WLL INCREASE COMPETITN, WILL KEEP THE HLTH INSURANCE INDUSTRY HONEST AND WILL GIVEEOPLE MORE CHOICES. AND THOSE CHOICES INCLUDE THE PRVATE SECT AS WELLS BEING PART OF THE PUBLIC PLAN WHICH ENABLES YOUTO BUY INTO A PUBC PLAN OR INTO THE PRVATE SECTO Woodruff: WELL, HOW WORRIED ARE U ABOUT THIS AUGUST RECESS COING UP? MEMBERS ARE GOING TO GO HOME TO THIR STATES, TO THEIR DIRICTS ANTHEY ARE GOING TO HAR A LOT OF THESE ARGUMENTS FROM THE HER SIDE THAT SOME ARESAYING COULD JUST CONTINUE TO WEAR DOWN THE CASE FOR HEALTH CAR

>> WELL, MAY. BUT I DON'T S IT THAT WAY. I SEEUGUST AS AN OPPORTUNITY FOR US TO TAKE OUR MSAGE HOME ABOUT WH IS IN IT FOR THE INDIVIDL PATIENT OR CONSUMEER OUT THERE. THE MO PEOPLE KNOW ABOUT WHAT ITS WE ARE DOINGN OUR GISLATION, THE BETTERTHEY LIKE IT. AND IT WILL HAVE TO A DRUM BEAT, AN EO CHAMBER OF THE RESIDENT'S MESSAGE OF AFFORDABILITY AND QUALI AND ACSSIBILITY AND UNIVERSE ALTY AND JUST TO MAKE AMERI HEALTHIER. IT'S NOT JUST AOUT HEALTH CARE, IT'S ABOUTTHE HEALTH OF AMERICA. PREVENTION,WELLNESS. IT'S ABOUT EVENTIONOT AMPUTATIN. IT'S ABOUT ET NOT DIABETES. IT ABSOLUTELY ESSNTIAL THAT WE GO FOR IT THERE'S SOUCH GOOD HIS LEGISLAON WITH THE COSTS THAT ARE COAINED AND WITH THE PROSPECT FOR GREAT SUCCESS.

>> Woodruff: W TALKED AUT COST, TWO QUICK SPECIFIC QUESTIONS ABOUTTHAT. THE PRESENT SAID HE WOU SUPRT A TAX ON HOUSELDS EARNING OV A MILLION DOLLARS A YEAR. RIGHTOW THE HOUSE THE LEGISLATN SAYS, I BELIEVE $350,000 YEAR. WHERE DO YOUOME DOWN ON TH IN? TO PA FOR THIS, MEAN.

>> I THINK... I'M NOT SU, BUT I EY THE PRESIDENT IS SAYING IS $ $500,000 FOR AN INDIVIDUAL, A MILLION FOR AOUPLE. AND ACTLLY YOU DO'T GET A SURCHARGE THERE UNTIL YOU ARE OVER $5,000. I INK THAT'S A GOOD PLACE TO BE. ALTHOUGH IORDER TO PAY FOR THE BI, YOU HAVE TO ME DOW A LITT LOWER TO $300,000 OR SOMETHING. SO WE'LL ST TO HAVE A FFERENT PAY FOR. BUT THE BILL MUST BE PAID FOR. ONE OF THE CHALLENGES WE HAVE I WE KNOWHAT THERE ARE TREMENDOUS SAVINGS INGOING FORWARD WITH THE HAVE VENGS PIECE. HUNDREDS OFBILLIONS OF DOLLA. THE CONGRESSIONAL BUET OFFICE, THE ACCOUNTING OFFICE HE DOESN'T GIVEYOU ANY CREDIT FOR PREVENTION. BUT WE ARE SO SRE ABOUT AT THAT I DON'T OW THAT WE'LL EV EVEN NEED THE Y FOR BECAUSE E PREVENTON WILL PROVIDE MUCH SAVING.

>> odruff: ONE OTR QUICK COST. THAT'S THE PROPOSAL TO TAX ESE SOALLED CADILLACGOLD-PLATED HEALTH INSURANCE PLANS. ARE YOU OP TO TT IDEA TO RAISE NEY FOR THIS? WELL, THE WAY WE HAVE HEARD IT COMING OVER FROM THE SNATE A, OF COURSE, WE HAVEN'T SEEN IT YET I THAT THEY WANT TO TAX THEINSURANCE COMPANIES FOR THE X... FOR THE CADILL, ROLLS ROYCE, WHATER THE TOP-OF-THE-LINE IS OFTHE DAY. I PRER DOMESTICODEL. BUT THE... TO TAX THE INSURANCE COMPANIEFOR THOSE HIGH END INSURANCE PICIES. I THINK THERE'S AOT OF INTEREST INAXES THE INSURANCE COMPANIEBECAUSE PEOPLE REALLY DO SEE ROSS AMERICAHEY KNOW THAT THEY HAVE CAUS THE PROBLEM THAT WE HVE TH THEIR ANTITRUST EXEMPTION TT THEY HAVE A THEIMMORAL PROFITS. THEY'RE MAKING BILLIO OF DOLLARS IN PROFITS WLE THEY'RE CUTTING OFF PEOPLE FOR BENEFITS THATHEY ARE ENTITD TO UNDER THEIR INSURCE. Woodruff: SO YOU'D BEOPEN TO THAT?

>> I'M HOPE TO EVERYTHING. IAY JUST PUT EVERYTHING ON THE TABLE. BUT I THINKIT HAS TO BE TRULY THE TOP OF THE LINE. CE YOU GETNTO+SORT OFHE MILE INCOME, I DON'T THINK THAT THAT I A GOOD IDEA. I DON'T THINK IT'S A GOOD IDEA THERE. BU AGAIN, WHEN WE TALK ABOUT AT THE HIGHT LEL TO HAVE A SURCHARG OR AT THE HIGST PACKAGE, T'S TAKE A LOOK AT INSURANCE... INSURANCEACKAGE, LET'S KE A LOOK AT IT. BUTTHERE'SBIG APTITE TO TAX THE INSURANCE COMPANIES.

>> Woodruff: I CAN'T LE YOU TWO DAM SPEAKER, WHOUT ASKING YOU ABOUT THECONOMY. AS YOU AND YOUREMBERS GO HOME FOR THE AUGUST RECE, MANY AMERICANS,F COURSE, STILL WONDERING WHEN THE RECESSI IS ING TO FEEL LIKE IT'S COMING TO AN END. UNEMPLOYMT IS HIGH. INCASING CRITICISM OF THE STIMULUS PACKAGE. PEOPLE INTING OUT, WE, THERE ARE THREE MILLION MRE AMERICANS OUT OFORK THATHERE WERE WHEN E STIMULUS WASASSED. WHAT DO YOU AND OTHERS-- OTR DEMOCRATS IT IS HAV TO SAY TO THE AMERICAN PEOPLE.

>> WILL SAY THIS. I WILLAY WHAT REPUBLICAN ECONOMITS HAVE SAID. WITHOUTHE STIMULUS PACKAGE WE WOULHAVE MANY MORE PEOPLE OUT OF RK NOW. NOW, IF YOU DON'T HAVE A JOB, THAT'S NO CONSOTION. BUT THE FACT IS THAT THE RECOVE PACKAGE IS JUST ACTLY THAT. IT HAS STOPPEDTHE FREEFA THAT WE ARE IN. THERE ARE MANY INDICATORS THAT THE ECOMY XH I IS TURNING AROUND NOW UNEMPLOYMENT IS THE LAGGING INDICATOR THAT THE JOBS SHOW UP LAST BUT WE HAVE TO, I BELIEVE, BE MOREGGRESSIVE IN GETTING OUT OUR RECOVERY MONEY. BUT IT'S A TIME CAPSULE RELEASE. IS AT HOW YOU SAY IT? TIME RELEASE CAPSULE. AND WE HAVE TOET IT OUT FASTER. BUT ABSENT TAT RECOVERY PKAGE THIS COUNTRY WOULDE MUCH WORSE ECONOMIC STATE. HAVING SAID THAT, THE PRESIDENT IN OUR BUDGET THAT PASS ON THE HUNDREDTH DAY OF HIS PRESIDENT ANY THE HOUSE AND IN THE SENATE HAD THREE PILLARS FOR TURNING E ECONOMY AROUND: EDUCATI WHERE INNOVATION BEGINS; HEALTH CARE, WHICH ISAN ECONOMIC IUE; AND ENERGY F NEW GREEN ECONOMY. A WE ARE ON OUR WAY TO PASSI ALL OF THIS LEGISLATN TO CREATE GOOD JOBS THROUGH INNOVATION FOR AMERICA. IN E MEANTIME, TUGH, PEOPLE ARE SUFFERING, UERSTAND THAT, AND WE WANT IN THIS LEGISLION TOGIVE THEM MORE STABILITY. THAT IF THEY LOSE THEIR JB THEY ILL NOT LOSE THEIREALTH INSURAN.

>> Woodruff:PEAKER OF THE HOUSE OF REPRESENTATIES, NANCY PELOSITHANK YOU VERY MUCH. >THANK YOU, JUDETY. MY PLEASURE.

>> LeerWEE HAVAN INTERVIEW REQUEST INTO THE HOU MINORITY LEAD JOHN BOEHNER. E HOPE TO BRING THAT TO YO SOON.

>> Lehrer: NOWTHAT NEW BURST OFROTESTS IN IRAN. WE BEGIN WITH A REPORT NARTED BY LINEY HILSUM OF INDEPENDENT TELEVISION NEWS.

>> Reporter: DEFYING T AUTHORITIEONCE AGAIN, THOUSANDS OF IRANIANSENT TO THE MARTYR'S CEMETERY UTH OF TEAN TODAY. TH WERE MARKING THE TRADITIONAL 40AY MOURNING PERIOD FOLLOWING THE SHOOTI OF THE STUDENT NE AGHA SOLTAN DURING AN ELIER PROTEST. THE RIOT POLICE WERE ALSTHERE. THEY BE WITH BATONS THE OPPOSITION FIGUREEHDI KAROUBI, SEEN HERE IN THE WHITE TURN. THEY REVENTED THE OPPOSITION LEADER MIR HOSSEIN MSAVI FROM GETTING OUTF HIS CAR, BUT ONE YEWITNESS SAID SOME POLICE N APPEARED TO BE ON THE DE OF THE PROTTORS.

>> I SAW WITH MY EYES ATEAST TEN RIOT POLICE WHO WE ENCOURAGING PEOPLAND SOMETIMES THEY WERE HIDDENLY, CLANDESTINE SHOWING VICTORY SIG TO PEOPLE AND THEY HAD PLASTICATONS WITH THEM. THEY HAD OFFICIAL EEN UNIFORMS AND THEY WERTRYING TO SHOW PEOE THEY ARE WITH THEM.

>> Reporter: BUT SOMPROTESTORS WERE INJURED. NEDA'S DEATH HAS BECOME A POTENT SYMBOL FOR THOSE INIANS PROTTING NOT JUST WHAT THEY SE AS A FRAUDULENT ELECTIOBUT ALSTHE ATTACKS ON DEMONSTRORS AND THE ALLEED TORTUREF DETAINEES. THE MOBILEHONE FOOTAGE OF DA AGHA SOLTAN AS SHWAS DYING DREW WORLD ATTENTION. THE MAN THE LEFT WITH BLACK HAIR IS DR.RASH HEJAZI, WHO TRIED TO SAVE HER LIFE. HS NOW IN THE U.K. HE TOLD ME THE CROWD GBBED THE MAN THEYELIEVED HAD SHOTEDA AND TOOK HIS.D. CARD.

>> THEYEIZED HIM AND THEY TOOK HIS I.D. CARD AND HEARD HIM SHOUTING, "DIDN'T WANT TO KILL HER", AND PEOPLE STARTED SHTING THAT HE'S A BASIJ.

>> Repter: FOR LEGAL REASONS, WE CAN'T SHOW THE NAME FACE ON THIS I.D. CARDHICH THE DOCTOR SAYS IS THMAN HE SAW, AND WHICH W POSTED ONLINE BY AN UNKNOWN PERSON, NOR CANE CORROBORA HIS ACCOUNT. SO THIS IS THE N YOU SAW SEZED?

>> AND THE PERSON WHO WAS SHOUTING "I DIDN'T WANTO KILL HER THIS CARD SHOWS HE IS A MBER OF HEYAT RAZMANDAN. HEYAT RAZMANDAN IS AN ORGIZATION CONTROLLED BY THE REVOLUTIONARY GUARD. IT'S LIKE THE BIJ.

>> Reporter: IT A PARAMILITARY FORCE?

>> EXTLY.

>> Reporte THE IRANIAN AUORITIES DENY THAT NEDA WAS KIED BY A MEMBER OF THE CURITY FORCES.

>> Reporter: RIOT PICE ON MOTORBIKESSOME CARRYING SCKS, WERE DEPLOYED DOWNTOWN NEARHE GRAND MOSALA MOSQUE WRE THE AUTHORITIES HAD FORBIDN PEOPLE TO GATHER. THEY CAME ANYWAY, MOUING NOT ONLY NEDA B OTHERS WHHAVE DIED DURING SIWEEKS OF ANTI- GOVERNME PROTEST. SOME PEOPLE WERE BEATEN. HTEAN.

>> Warner:, BOOU DARAGAHI, WELCE. THANK YOU FORBEING WITH US. THE AUTHORITIES IN IRA REFUSE TO GRANTERMISSION FOR THIS MASS MRNING EVENT TODAY, AND YET THSANDS OF PEOPLE SHOWED UP. HOW USUAL IS THAT?

>> WELL, IT NOT ONLY THAT THEY DIDN'T GET RMISSION AND SHOWE UP ANYWAY, IT'S ALSO TH THEY'VE BEEN COMING OUTAIRLY REGULARLY FOR PROTESTS BEING BEATEN, BEING HURT, BEINGEAR GASSED,UT IN SOME CAS FOLLOWED HOME AND ARRESTED. ND YET THEY CONTINUE TO KEE GOI. A THEY SAY THAT THEY'RE GOI TO KEEP GOINGEVEN IF THE GET HURT ORJAILED AND THAT THAT'S THE USUAL PART. AND THIS IS KINDF UNPES TENTED IN THA WAY. THE ISLAMIC REPUBLIC HAS A PLAY BOO BY WHICH IT USULY DEALS WITH THIS KIND OF UNRESTAS IT DEALT WITH IT IN 1999 AND 2003 ANDVEN IN THE EARLY YEARS OF THE RVOLUTION WHEN THERE WS STILL LOT OF OPPOSITION TO THE TYPE OF CLERICA RULE THAT WAS ESTABLISHED. ALL OF THEIR METHODS, THE JAILINGS, THE BATINGS, THE THREATS,HE TREATS OF AIRING FORCED CONFESSIONS ON TELEVISION ARE NOTORKING THIS TIME. SO YOU'VE GOT A PAP NICKHE ESTABLISHMENT AS THEYRY TO FIGU OUT WHAT TO D TO CONTAIN THI MOVEMENT.

>> Warner: LET ME ASK YOU O HER QUESTION ABOUT TOY'S EVENT. THE ITN PIECE HAD'REUDIO OFN EYETNESS SAYING THAT SOME OF THE SECURITY FCES WERE ACTUALLY COURAGING THE DEMONSTRATORS. YOU REPORTED A SIMILA THING QUITE ELY THIS MORNING. WHAT CAN YOUELL US ABO THAT?

>> WLL, WE'RE NOT ECTLY SURE AT HAPPENED HERE. BUT FROM ONE THING THAT WE UNDERSTAND NOT ONLY IN TERMSF EYEWITNESS ACCOUNTS BUT YOUTU VIDEO THAT I'VE SE,ALTHOUGH THEREERE SOME RPORTS OF CLASHES BETWEEN THE SERITY FOES AND T MOURNERS AT HRAN'S GREATEST AND LARGEST METERY, THERE WERELSO REPORTS THAT THEY WERE GETNG ALONG QUITE AMICABLE, THE MOURNERS AND THE POLIC AT SOM INT. AND WH WE HAD THOUGHT WAS THAT TH WAS BECAUSE THEY JUST THOUGHT THAT THEY WERE SO OVERWHELMED BY THEUMBERS THAT THEY STEPPED BACK. BUT IS DEFINITLY TRUE THAT WITHIN THE SECUTY FORCES THERE'S AATHER PERILOUS SPLIT. AND WE'VE SEN EVIDENCE OF THIS ON THE STREET ERE SOME SECURITY FORS REFE TO BEAT ANY OF THE DEMONSTRATORS AND IN SOME CASES EVEN STOP SOME OF THE PRO-GOVERNMENT BASIJ MILITIA WHO ARE BEATI THE DEMONSTRATS. THIS A VERY DANROUS SIGN FOR THE ISLAMIC REPUBLIC THERE'SNY KIND OF SERIOUS RIFT WITHIN THE SECURITY FORCES.

>> Warner: A YET THE ARRESTS ARE CTINUING. THE WERE MORE THIS WEEK.

>> INDEED, ERE WERE MO ARRESTS THIS WEEK OFOME PROMINENT POTICIANS AS WELL AS OTHERS WHO WERE NOT SO WELL KNOWN. BUT THE ARE ALSO A BUN OF PEOPLE BEING RELEASED OM PRIS. AGA, THE SENSE THATE GET, THE UNDERSTANDINGHAT WE HAVE IS THAT THE TOP LEVELS OF TH ESTABLISENT ARE RHER CONFUSED ABOUT WAT TO DO D THEY'RE FLAILINGBOUT TRYING TO FD DIFFERENT FORMULAS TO COOL PEOPLE'S ANGERHILE AT THE SAME TIMEOT APPEANGTOCCEDE TO ANY OF THEIR DMANDS ANDAN ATTEMPT TO STOP THIS MOVEMENT FROM BURGEONING.

>> Warner: Y MENTION VIDEOTAPED CONFESSIONS. GATHER THE'S ALSO A BIG COROVERSY ABOUT WHETHER TO AIR THOSE VIDEOTAPED CONSSIONS. WT... TELL US ABOUT THAT. HAT'S THE STATUS OF THAT?

>> IN THE EARLY YRS OF TH REVOLION AND AT OTHER INT THERE ISAVE BEEN TIMES WHEN PEOPLE WHO WERE POLITICAL SSIDENTS WERE JAILED, SOMETIMES HE FOR WEEKSOR EVEN MONTHS IN SOLITARYONFINEMENT AND AS A CONDITION FORHEIR RELEASE, THEY HAD T MAKE IDEOTAPES CONFESSINGO VARIOUS CRIMES BEING OPPONENTS OF THE GOVERNMENTBEING FOREIGN TUNES. RIGHT NOW THERE SEEMS TO BE, CORDING TO THE COMMENTS TH WE'RE SEEING FROM PUBLIC OFFICIALS AS WE AS REPORTS WE'RE GETTING FROMITHIN THE ESTLISHMENT A KIND OF FHT ETWEEN DIFFERENT FACTNS IN THE GOVERNMENT OVER THE AIRIN TAPED CONFESSIONS FROM PRISONERS TT WERE INVOLVED IN THE RECENT REST. AND ON THE ONEHAND, YOU HAVE SOMEARD-LINERS SAYINGHAT, YOU KNOW, YES WE HAVE TO DO THIS IT WORKED IN THE PAST. ON THE HER HAND, THERERE OTHERS WHO ARE VERY CONCERNED THAT IN THIS CURRENT CLIMATE WITH E NEW CONDITNS AND THE DYNAMICS OF TH CURRENT OVEMENT THAT AING THESE CONFESSIONS WLD ONLY FURTHER ANR AND AIENATE FREEDOM THE GOVERNMENT AND TS FIGHT IS GOING ON.

>> Warner: FINALLY, I HAVE TO ASK OUT A LITLEIDBIT THAT WAS ASTORY YOU WROTE YESTERDAY. YOSAID THAT ONE HARD LINE POLITICALGROUP HAD ACTUALLY FIRED A SHOT ACROSS PRESIDENT AHMADINEJAD'S BOW WI AETTER.

>> INDEED THS IS NOT ONLYUST SOME HARD LINE POLITICAL GROUP, THIS IS A HARDINE GROUP THAT AHMADINEJAD WAS ONCE PROMINEN MEMBER OF. AND IN TIS LTER, WHICH S PICKED UP BYFFICIAL IRANIAN NEWS OTLETS, THEYOMPARED AHMADINEAD TO PREVIOUS IRANIAN LEADERS WHO HAD W ELECTIONS AND BEEN DPOSED BECAUSE THEY WE UP AGAINST THE CLERG AND THIS WAS A REAL HARSH WARNING AGAINST AHMADINEJAD. INDEED, SIN THIS WARNING CAME OUT, AHMADINEJAD HAS BEEN ND OUT OF THE PTURE FROM OUR UNDERSTANDG IN THE LAST DAY OR SO HS BEEN T OFF TO THE IRAAN EASRN CITY OF MASHAD.

>> Warner: BORZOU DARAHIF THE "LOSNGELES TIMES,"THANKS SO MUCH FOR BEING WITH U

>> IT'S BEEN A PLEASUR

>> Lehrer: YOU CAN FOLLOW R COVERAGE OF THELECTION CRACKDOWON OUR WEB SITE, newshour.pbs.or THERE IS AL A LESSON PLAN FOR TEACHERS ON THE PRPECTS FOR MOCRACY IN IRAN.

>> Lehrer: NEXT TONIGHT,HE FEDERAL RESEE AND QUESTIONS OF TRANSPAREN, PARTICULARLY IN LIGHT OF OUR FORUMHIS WEEK WI FED CHAIRMAN BERNANKE. OUR ECONOMICS CORRESPONDENT, PAUL SOLMAN REPORTS APART OF HIS SERIES ON "MAKING SENSOF FINCIAL NEWS."

>> Solman: AS E FEDERAL RESERVE MOVED RAPIDLY D RADICALLY LAST YEARO PREVENT WHAT IT FEARED WAS ECONOMIC MELTDOWN, IT BAILED OUSOME INSTITUTIONS BUT NOT OTHERS FORCED RGERS, CREATED HUNDREDS OF BILLIONS OF DOLLA. T NET RESULT IT SEEMS: INCREASED ECONOMIC CONFIDEN; INCASED SUSPICION OF THE FED ITSELF. IT TURNS OUTHAT'S NOTHING NEW. IT S IN RESPONSE TO A FINANCIAL CRISIS OF CENTURY AGO-- 1907 THAT THE FEDERAL RESERVE WAS CREATED. THE 1913 ACT OF CONESS THAT ESABLISHED AMERICA'S CENAL BANK WAS,ROM THE START, A MPROMISE BETWEEN GOVERNMENT DEMOCRAT WOODROW WILSONAS THEN PRESIDENT-- AND PRIVATBANKING INTERESTS, WHICH OWNED THE 1REGIONAL FED BRANCHE FM THE GET-GO TO THE PRESENT, SOME AMERICANS HAVE BEEN SUSPICIOUS OF E FED FOR OPERATING ABOVE POLITICS, T CLOSEO BANKERS, AND BEHIND CLOSED DOORS. SIMPLYOOGLE "FEDERAL RESERVE" TOAY, AND YOU ENCOUNTER ERYTHING FROM SKEPTICISM TO FEAR OF COPIRACY. "THIS FARIOUS CARTEL OF "THIS NEFAOUS CARTEL OF TYRANTS IS IN A POSITI TO LITERALLY AUIRE CONTROL OVER THE ASSETSF THE WORLD."

>> THE POWER TO REGUTE THE MONEY SUPPLY IS ALSO THPOWER TO REGULATE IT VALUE WHICH IS ALSO THE POWER TO ING ENTIRE ECONOES AND SOCIETIES TO THEIR KNEES..." >>olman: IN RESPONSE TO THE SUSPICION OUTHERE, CHAIRMAN BEN BERNANKE IS TRYING TO KE H A MORE OPEN FED, AS HIS PARTIPATION IN THE PUBLIC FORUM THAT RAN ON THE "WSHOUR" THS WEEK SUGGESTS. ALICE RIIN, VICE-CHAIR IN THE '90s, SAYS IT PART OF A TREND.

>> THEY HAVE BEENESS AND LESS SECRETIVE OVER THE YRS. THIS STARD BACK IN THE EENSPAN YEARS. THE WAS A TIME WHEN THE FED DIDN'T TELL ANYBODY ANYTNG ABOUT WHAT THEY WE DOING EVEN ON MONETARY POLICY. THEY DIDN'T SAY WHAT THEY HA NE. THEY ALLOW THE MARKETS TO GUESS. BUT THAT D IS LONG OVER.

>> Solman: 35-YEAR D VETERAN, NOW VICE-CHAMAN, DON KOHN, HAS BEEN CHARGED WITH MAKING THEED MORE INTELLIBLE TO THE PUBLIC.

>> THE FEDERAL RESEE HAS BECOME INCREANGLY TRANSPARENT ABOUT WHAT IT'S DOING AND W 'S DOING IT OVER THE LAST I WOU SAY 15-20 YEARS. 20 YEARS AGO, WEEREN'T EVEN ANNOUNCING OUR DECISIONWHEN THEY WERE MADE; YOU HAD TO FER THEM FM OUR ACTIONS IN THE MARKET.

>> Soln: BUT THIS MARCH, THE CHAIRN OF THE FED VISITED HIS HOMETOWN, DILLON, SOUTH CAROLINAWITH CAMERAS FROM "60 MINUTES." AND THEN LAST WEEKEND, THE PUBLIC T.V. FORUMUBBED "BERNAE ON THE RECORD IN KANSAS CI." BUT, SPITE THE NEW TRANSPARENCY, PLENTY AT THFED REMAINS OFF-THE-RECORD THE BOD OF GOVERNORS MTINGS THE BOARD OF GOVERNORS MEINGS D.C. ARE EVEN MORE SECREVE- - FOR THSAME REASON THE NEW YO MEETING IS, SAYS VICE- CHAIRMANOHN.

>> WE BNG INFORMATION TO BEAR FM THE PRIVATE SECTOR, FROM FOREIGN GOVERNMEN AND FOREIGN CENTRAL BANKS THATHEY TELL US IN NFIDENCE ABOUT WHAT'S GOING ON IN THEIR BUSINESS. SO IWOULD INHIBIT THE DISCUSSION AND IT WLD BE LESS THE POLICYOMING OUT WOULD BE LESS GOOD. WE DO MAKERANSCRIPTS AND WE LEASE THEM AFTER FIVE YEARS.

>> IF THEY WANT TO GET TRANSPARENT, YOU COULD SRT THERE, COULDN'T YO

>> lman: JOURNALIST WILLIAM GRDER THINKS THE FED ISN'T GOING NRLY FAR ENOUGH.

>> YOU COULD SAY, OKAY, HAVE TO VE OUR MEETINGS IN SECRET BECAUSTHINGS WILL BE SAID THAT ARE NATIONAL SECURITY SRETS, BUT WE'LL VET THE TRANSCRIPTND RELEASE IT FR WEEKS LATER. WHY NOT DOHAT?

>> Solman: OUGH THE FED DOES PLISH MINUTES OF ITS MEETINGS WITHIN THREE WEEKS OF T DECISIS IT MAKES. AUTHOR OF A MAJOROOK ON THE FED, "SECRETSF THE TEMPLE," REIDER SAYS THE FED BEGAN INLATING ITSELF BACK WHEN IT STARTED NEARLY CENTURY AGO.

>> THISAS THE PROGRESSIVE ERA, WHICH LIEVED DEEPLY IN GOOD GOVERNMENT. ITEPENDED ON PROFESSIONALIZING THE MANAGEMENOF GOVERNMENT AND THAT MEANT IN SOME DEGREE GETTING IT OUT OF THE HAS OF PEOPLE, THUNRULY PUBLIC WITH ITS PASSIONS A IGNORANCE ETCETERA. IN MY WAYS, IT WAS CREATED TO MAKE TS VOLATILE SUBJECT A SECRET AND IT SUCCEEDED.÷p

>> Sman: IT SUCCEEDED AND CONTINUED TO FOR NEARLY A CENTURY. FMER FED VICE-CHAIRMAN ALAN BLINDR. >MY FIRST ADVICE WHEN I WENT THERE IN '94M THE FEDS PRESS OFFICER WAS, "I WANT TO TE YOU WDON'T TALK ABOUT THE ECONOMY." I LOOK AT HIM AND SAID, "WHAT WOULD YOU LIKE MTO TALK ABO?"

>> Solma BUT THEN AGAIN, SAYS ALICE RIVLIN, WHO SUCCEEDE BLINDER AS VICCHAIR, THERE'S WAYS A RISK OF SAYING TOO MUCH.

>> I MADE SPEECH IN NEBRASKA WHICH W INTERPRETED AS TALKING DN THE DOLLAR. I CERTAINLY DN'T THINK I HAD BUT SOMEBODY DID AND E DOLLAR ACTUALLY FELL. T THAT WAS THE EXCEPTION. MOST OF THEIME, I WAS REALLY CAREF.

>> Solman: BUT E PERSON'S CAUTI CAN BE ANOTHER'S SHROUD OF SECRECY. THUS THE DEBATE OVERHE FED, ITS TRANSPAREY, ITS ACCOUNTABILITY, DEBATE ON FULL DISPLAY IN CONESS AT THE MENT.

>> I JUST DON'TEE WHY THERE SHOULDN'T BE 100% RYSTAL-CLEAR TRANSPARENCY OF EVERSINGLE FUNCTION OF THE FED AFTER T FACT.

>> BECAUSE WE HAVE TO BE EXTRAORDINARILY CAREFUL THATHE MARKETS AND THE PUBLIC D'T THINK THAT CGRESS IS TRYING TO INFLUENCE MOTARY POLICY DECISIONS.

>> Solman: BUT IWE DON'T KNOW HOWHE FED DECIDES UNTIL LONG AFTER, CNGRESSMAN BILL POSEY PRSED.

>> WE DON'T KNOW IFHEY'RE THE BESTECISIONS. WE DON'T KNOW WHO THE FEPICKED TO BE WINNERS AND LOSERS. AND I... I THINK THE PUBL REALLY HAS A RIGHT TO KNOTHAT.

>> Solman: E HOT POTATO OF THE MOMENT IA HOUSE BILL SPONSORED BY LONG-TE FED CRITIC RON PAUL TO WHICH MORE THAN HALF OF T HOUSE HAS SIGNED ON. IT ULD GIVE THE GOVERNMENT COUNTABILITY OFFICE THE RIGH TO AUDIT THE FED'S TEREST RATE DECISIONS. CHAIRMANERNANKE OPPOSES IT AS COMPROMISING THE FE'S INDENDENCE.

>> SO IS THA YOUR POSITION, THAT THIS BILL,F IT WERE TO BE PASSED, WOULD INTERFEREIRECTLY WITH INTERESRATES-- SETTING INTEREST RATES? IF WE WERE TO RAISE INTERES RES AT A MEETING AND SOMEONE IN THE CONGRESS DIDN'T LIKTHAT ANSAID I WANT THE G.A.O. TO AUDIT THATECISION, WOULDN'T THT BE VIEWED AS AN INTERFERENCE?

>> I WOULDN THINK SO. THIS IS JUST REVIEWING IT. YOU CAN DO WH YOU WANT.

>> Solman: FORMER VICEHAIRMAN BLINDER,HO'S BEEN MENTIONED AS HE ADMI THAT INDEPENDENCE N LEAD TO SECREC

>> BUT IT'S VERY PORTANT IF THE F IS GOING TO DO SOME OF THE NASTY WORTHAT IT SOMETIMES HAS DO, TO FIGHT INFLATION, THAT THE FED HAS A LOTOF INDEPENDENCE. AMERICANS WOULDT THINK YOU SHOULD HE POLITICIANS MAKING THE DECISIONS FOR T FOOD AND DRUG ADMINTRATION RIGHT? YOU KNOW BECAUSE THAT UG COMPANY MIGHJUST BE IN THAT GUYS DISTCT AND WED RATHER HAVE SCNTISTS AND TECHNICIANS KING THOSE DECISIONS.

>> Solm: BUT DESPITE THE FED'S EFFORTS TO BE ME OPEN, 86 YEARS AFTER ITS INCEPTIO SOME STILL FEEL ITS TECHNIANS, AND THE STRATEGY MAKERABOVE THEM, REMAITOO HIDDEN FROM PUBLIC SCRUTINY. >>ehrer: A REMINDER: PAUL SOAN IS TAKING YOUR QUESTIONS AT HIS BINESS DESK ON OUWEB SITE, ewshour.pbs.org. THERE ARALSO EXTENDED INTERVIE WITH ALICE RIVLIN AND ALAN BLINDER ABOUT THE D'S INPENDENCE AND ATTEMPTS TO BE MORE TRANSPARENT.

>> Lehrer:EXT TONIGHT, THE ARRESTS OF SEVENORTH CAROLINA MEN RAISE N FEARS ABOUT HOGROWN TERRORISM. RAY SUAZ HAS OUR STORY.

>> Suarez: IT WAS FROM TS HOME IN A RURAL CORR OF NORTH CAROLINA AT 39-YEAR-OLD DANIEL BOYD AND A GUP OF ALLEGED CO- CONSPIRARS ARE ACCUSED OF QUIETLY PLANNING IOLENT HAD."

>> I SPOKE WITHIM ON SEVERAL OCCASIONS AND NEVERAS THERE ANIDEA THAT HE WAS INVOLVED IN SOMETHING LIKE THAT OR COULD HAVE THE CAPACITYO BE INVOLVED N SOMETHING LIKE THAT.

>> Suarez: ON MONDAY, MO THAN 0 FEDERAL AGENTS FANNED OUT ACSS THE STATE TO ARREST BOYD, HIS O SONS, AND FOUR OTHERS. A 14-PAGE INDICTMENT ACCUS THE MEN OA LONG-STANDING CONSPIRACY TO PLAN A LAUNCH AN OVERSEAS TERRORIST ATTK. BOYD, E SILENT CELL'S ALLEGED MASTERMIND, IS AN AMERIC-BORN MUSLIM CONVERT. THE INDICTMENT CLAS THAT HE TRAVELED TO AFGHASTAN AND PAKISTAN IN THE LATE 10s TO AIN ALONGSIDE ISLAMIST FIGHTERS THEN BTLING THE SOVIETS. THE NORTH CAROLA CASE-- AND SILAR RECENT INCIDENTS-- WORR AMERICAN LAW ENFOEMENT OFFICIALS,NCLUDING ATTORNEY GENERAL ERICOLDER, WHO SPOKE A.B.C. NEWS.

>> E WHOLE NOTION OF RADICALITION IS SOMETHING THAT DIDN'T LOOM AS LARGE A EW MONTHS A AS IT DOES NOW. AND TT'S THE SHIFTING NATURE OF THREATS THAT KEEPS YOUP AT NIGHT.

>> Suarez: IA MEMO ISSUED SHORTLY AFT MONDAY'S ARRESTS, THE F.B.I. ANTHE DEPARTMENT OF HOMELAND SECURITY CID THE BOYD CASE AND OTRS AS EVIDENCE OF A GRONG TREND. D.H.S. SECRETARY JANET NAPOLITANO ADDRESSED THE ISS YTERDAY. >>WE NEED TO COMPREHEND AND ANTICIPATE AN EXPANDING NGE OF THREAT NOW D.H. MONITORS AND SHARES FORMATION ABOUT POTENTIAL HOMEGROWN THREATS AS WL. THESE CAN BE INVIDUALS, RADALS RADICALIZED BY EVENTS ABROAD, OR LONE-WOLF ATTKS. Suarez: FEDERAL PROSECUTORS RECENTLY DISCLOS THAT AN AMERICAN ISED ON LONG ISLAND WAS CURRENTLY EING DETAINED FOR TRAING WITH AL QAEDA IN PAKISTAN ANAFGHANISTAN. AND THIS WK, A VIRGINIA MAN, WHO HAD JOINED AL IDA, WAS SENTENC TO LIFE IN JAIL FOR PLANNINTO KILL FORMER RESIDENT GEORGE W. BUSH. BOYD A HIS CO-DEFENDANTS ARE HEDULED TO APPEAR IN A FEDER COURT IN RALEIGH NEXT TUESD. >>Suarez: JUST HOW WIDESPREAD ISHOMEGROWN RADICAL EXTREMISM? AND HOW DO YOU COMBAT THAT THREAT? FOR SWERS, WE TURN TO DAVID SCHANZER, DECTOR OF THE TRIANGLE CENTER TERRORISM AND HOMELAND SECURI LOCATED AT DUKE UNIVERSITY AND THE UNIVERSITY OF NORTH CAROLNA CHAPEL HILL. AND IBRAHIM RAMEY, DIRECTOFOR HUMAN AND CIVIL RIGHTS THE USLIM AMERICAN SOCIETY FREED FOUNDATION, AN ADVOCACY OUP IN SHINGTON, D.C. DAVID SHAN SISTER, IS N YELL BOYD AN ANOMAL OR PART OF A PHNOMENON THAT MERITS SIGNIFICANT AND ON GOING ATTENTION FROMAW ENFOEMENT?

>> I THI ITOES MERIT ONGOING ATTENTION. THIS IS AROBLEM. IT SHOULDN'T BE AN OVERSTATED PROBLEM, BUT IT IS A SIGNIFICANT ONE. WE'VE COLLECTED TAE A HERE OF 25 MUSLIM AMERICANS THAT HAVE BEEN PROSECUTED OVER THE PAST EIGHT YEARS FO TERRORISM-RELATED OFFEN THAT NVOLVES SOME ELEMENT OF VIOLENCE. NOW T PUT THAT IN CONTEXT, THERE'S BEEN 130,0 MURDERS OER THE PAST EIGHT YEA INAMERICA. SO THIS IS A PROBLEM, BUT WE SHOULD KEEP INHE CONTT AND WE SHOULD TREAT IT SEIOUSLY BUT NOT OVER IT.

>> Suarez: THERE VE BEEN ARRESTOF AMERICANS AND NATURALIZE CITIZENS AND LEGAL RESIDENTS IN PLACES LIKE LACKANNA, NEW YORK,UTSIDE BUFFALO,N MIAMI, IN OER PLACES AROUND T COUNTRY. DIDANY OF THEM TURN OUT TO HAE SIGNIFICANT LKS, ONGOING LINKS, TO INTERNATIONAL TERRORISM OR WRE THEY JUST PEOPLE WHOTARTED TOATCH PLOTS HER IN THE UNITED STATES?

>> WELL, OF THOSE 125, ABOUT 40% HAD SOME ELEMENT OF A DOMESTIC PLOT OR ATTACK AND THE OTHER 60% WE TOTALLY CONNECTED WITH ACTITIES ABROAD.

>> Suare IBRAHIM RAMEY, HAVE MOSQUES, HAVE MUSLIM ORGANIZATIONS LKE YOURS BEEN APPROACHED BY THE F.B., FOR INSTANCE, FOR AID IN TRACKING THESE TREATS? >>ELL, CERTAINL THAT'S TR ANDWE ALSO KNOW THAT THRE HAVE BEEN INSTANCES NATIONALLY WHERE MUSLIM ORGANIZATIONS AN PARTICULARLY MOSQS HAVE BEEN NFILTRATE BID THE F.B.I. A WHERE PELE HAVE BEEN APPROACHED TO BE UNDERCOVER AGENTS OR EN AGENT PROVOCEURS FOR THE F.B.I. NOW, LET SAY CATEGORICALLY THATERRORISM AND THAT KIND OF VIOLENCE IS SOMETHI THAT WE CATEGORICLY CONDEMN AND ABSOLUTELY REJT. BUT WE WANT LAW ENFORCEMENT ALSO UNDERSTAND THAT TH SHOULD NOT BE A PRE-TEXT FOR DENIZING AN ENTIRE COMMUNITY O TRYING TURN THE COMMUNITY AGAINST ITSELF IN WAY THAT'SOTH UNTERPRODUCTIVE AND ALSO N LIKELY TO YIELD ANY GREAT RESULTS. Suarez: WL, YOU'VE TALKED ABOUT ABOVE-BOARD D LET'S SAY BELOW-BOARD APPROACH. IN THE ALMOSTEIGHT YEARS SINCE SEPTEMBER 11, HAVE IT SHALL HAS AOUGH RELATIONSHIP BEEN HAMMERED OUT? THE RULES OF ENGAGEMEN SO THAT MUIM ORGANIZATIO AND THE F.B.I. HAVE SOME SORT OF UNDERSTANDING?

>> I THINK WE VE TO RELY ANER THE QUESTION IN TWO PARTS. THEIRST PARTOULD LOOK AT THE BUSH AINISTRATION, WHICHDID NOTAVE CAT FOR TWOALLY VRY GOOD RELATIONSHIP WTH THE MUSLIM COUNITY. WE INK THAT THAT RELATIOHIP CAN IMPROVE AND HAS IMPROVED OMEWHAT UNDER THE NEW ADMINISTRATION, BT THERE ARE STILL ELEMENTS OF CONCERN. WE KNOW TT THERE ARE VERY ZEALOUS PROSECURS IN DIFFERENT RTS OF THE COUNRY THAT LL TWIST EVIDENCE AGNST MUSLI. WE KNOW THAT MUSLIM CHARITS AT ARE TOTALLY LEGITIMATE HAVE BEEN SHUT DON. WE KNOW THAT THE HUMAN AND CIVIL RIGHTS OF SOME MUSLS HAVE BEEN ABREGAITED OR CHALLEED BY THE CURRENT CLIMATE OF ISLAM PHOBIA INHEOUNTRY. SO I WLD HAVE TO SAY TOYOU THAT THOSE RLES OF ENGAMENT ARE ALLY A WORKN PROGRESS.

>> Suarez: DAVID SCHANZER AT THE TIME OF THE ARRESTSN SOME OF THE CASES, EV F.B.I. ANTS CALLED T PLOTS INVOLVED MORE ASPIRATION THAN OPERATIAL. IS THERE A DECENT QUESTION T BE ASKED ABOU TIMING HERE?

>> WELL, THERE'S AAYS A TOH CALLFOR LAW ENFORCEMENT ASO WHETHER THEY WANT TO CUT SOMETHING OFF BEFORE ANYTHIN COULD POSSIBLY HAPPEN OR THEY WANT TO LET IT PLAYOUT A LITTLE MORE, LET T PLOT RIPEN A BIT TO SEE IF YOU CAN CAH SOMEBODY IN THE ACT. MO RECENTLY, IN E CASE NEW YORK WI THE POTENTIAL PLOT TO BOMB A SYNOGUE IN BROOKLYN, THE AUTHORIES LET THAT GO TO THE POINT WHERE AN INER BOMB WAS ACTUALLY PLANTED TSIDE THE SYNAGOGUE. AND I THINK THAT DEONSTRATED, I THINK MORE CONVINCINGLY TO E MMUNITY, THATTHESE INDIVIDUALS WERE POTEIALLY ERY DANGEROUS. SO I THINKIT'S A TOUGH CALL FOR LAW ENFORCEMENT. MAY WE'RE SEEIN THINGS ALLOWED TO GO A LITTLE BIT FURTH, THE FURTHER W GET FROM 9/11.

>> Suarez:AS LISTENTHERE BEEN A DIFFERENT AROACH IN OTHER COUNTRIES THAT HAVE FAD THIS KIND OF THREAT?

>> WEL, I THINK THE REST OF THE WORLD, ESPECIALLY OUR FRIEDS IN THE UNITED KINGM, THOUGHT W RE A BITJITTERY EARLY ON AND THAT WE WERERRESTING PEOPLE AT A VRY EARLY STE. AT DIDN'T MEAN THAT TY HAD NOT ENGED IN A CONSPIRACY VIOTED THE LAW IN SOME WAY ALTHOUGH THERHAVE BEEN SOME ACQUTALS, MOST OF THE TRIALS F THESE HOMEGROWN OTS HAVE BEEN SUESSFUL BUT,AGAIN, I THI THAT OUR FRIENDS ABROAD USLLY LIKE TO TRY TO LET THGS PLAY OUT A LITTLE BIT MORE RELY FOR THE PURPE OF GATHERING GREATER INTELLIGENCE. Suarez:BRAHIM RAMEY, HOW DO YOUALANCE THE NEEDS OF A COUNTRY TO PROTECT ITSELF TH HE CIVIL RIGHTS OF ITS OWN CITIZENS? TRE HAVE BEEN COMPLAINTS FM MUSLIM ORGANIZATNS IN THE PAST ABOUT THIS.

>> CERTAINLY. >>Suarez: HOW DO YOU STRIKE THAT BANCE?

>> I THIN THE BANCE HAS TO STRUCK BY INCREASINGLY ENGAGING WITH MUSLIM IN THE PROCESS OF CIVIC INVOLVEMENT, THE PROCSS RAISING YOUNGEOPLE IN A WAY THAT IS FULLY RESPECTFUL OF THE LAWS F THE COUNTRY BUT AL COMMITTED T THE RIGHTS OF MUSLIMAND THE RIGHTS OF ALL CITIZENS. RE THAN THAT, I WOULDAY THE SLIM ARICAN SOCIETYAS BOY SCOU TROOPS AND CIVIC EAGEMENTS WITH OTHER FAITH COMMUNITIES AND THEEY, REALLY, IS TO RECOGNIZE TT MSLIMS ARE THE BT ALLIES IN THEPOSITIVE TRANSFORTION OF THE COUNTRY BUALSO IN THE PROTECTION OF THE CIVIL RIGS AND THE PROTECTIOOF ALL PEOPLE FROM OLENCE.

>> Suarez: U DON'T DOE TE NIGH THAT THE ARE NEFARIOUS ELEMENTS TING TO ENTICE YOUNG MUSLIMS IN THE UNITED STATES?

>> ABSUTELY THERE ARE. AND I THINK RESPONSE A THAT WE HAVE IS TO EQUIPPED OUR YOUNG BEAM THE COLLIE UNDERSTANDING OF WHAT ISLAM REALLY MEANS, TO UNDERSTAND THA THE OPTIONS THAT WE HAVE FOR ENGING THE SOCIETY IN A POSITIVE WAY EXCLUDE VIOLENCE AND REALLY CAT FOR TWOALLY OUT TO DO THAT. AND THE THIRD THING I THAT YOUNG PEOPLE CAN MAKE INTELLIGEN CHOICES AND MUST MAKENTELLIGENT CHOICESABOUT THEIR OWN LIVES, THE SAFETY OF THEIR COMMUNITY AND ULTIMATELY CREATING AORD THAT'S LESS VIOLENT ANDLESS UNJUST Suarez: DAVID SCHANZER, RACIAL PROFILING HAS BEEN IN THE NEWS QUITE A T TELY FOR OBVIOUS OTHER REASONS. BUT IS THERE SOMETHING THAT GIVES YOUECOND THOUGHTS AND SOME PAUSE ABOUT A DIEL BOYD WHOLLEGEDLY WAS ABLE TO OPERATE IN AHANISTAN AND PAKIST AND THE UNITED STATES, PUT TOGETHER A CELLHAT HE MIGHT ESCAPE NTICE BECAUSE OF HIS NE, HIS LOOKS,HIS BACKGROUND INHIS COUNY?

>> AND THE SAME WOULD APY TO THE PERSON WHO WAS ARRESTED IN LONG ISLAND. IT WOULD BE A GEM FOR AL QAEDA TO HA A CAUCAAN RECRUIT WITH A U.S PASSPORT. FIRST OF L, THEY COUL GET A TREMENDUS AMOUNT OF IORMATION TO AL QAEDA ABOUT E WAY WE LIVE, AUT THE RAILROAD STATION WES GO IN THINGS LIKE THA. ANDTHEN THEY CAN GET INTO THE COUNTRY MUCH MORE EASILY THAN OTHERS. SOHOSE ARE PRIME PRPECTS FO AL QEDA AND W NEED TOAKE CARE NOT TO RACIALLY PROFILE BEAUSE IF YOU HAVE O MUCH EMPHASIS LOOKING FOR THE OIOUS PPLE THAT YOU THINK MIGHT BE ERRORISTS, YOU ARE GOING TO MISS PEOPLE W DON' STAND T AS THOSE YOU MIGHT EXPT WOULD BE E PERPETRATORS.

>> Suarez: IBRAHIM RAMEY, WHA DO YOU MAKE O THAT?

>> WELL, I DO AGREE WITH WHAT MRSCHANZER HAS TO SAY. I WOULD ALSO SAY THAT, AGAIN, OURBJECTIVE IN THI KIND OF GLAL CLIMATE AND NATIONAL CLIMATE IS TO PROTECT POPLE FROM VIOLENCE, T ENSURE PEOPLE THAT THE MUSL COMMUNITY IS NOT VIOLENT COMMUNY, IT'S A LAW ABIDING COUNITY AND EVERY INDETHAT YOU CAN LOOKT IN TERMS OF OUR DEMOGRHICS AND OUR POLITICAL POSITIONS INDICATES THAT. BUT MORE THANTHAT, THAT FIGHTING GLOBA TERRORISM AND VIOLENCEHAS ALSO FOR ME AND FO US, I BELIEVE, A MATTER OF AFFIRMING JUSTICE. THAT WH YOU DRY UP THE POND IN WHICH TERRORISM TEND TO SPRING AND DO TH THROUGH NON-VIOLENT ENGAGEMENT ND DO THAT THROH BUILDING JUSTICE ANDBUILDING ALLIANCES WITH TH MUSLIM COMMUNITY, 'S GOOD FOR MUSLIMS IT'S GOOD FORAMERICA,T'S GOOD FOR THE WORLD.

>> Suarez: SO BETTER FUTURES FOR THOSEOUNG FELLOWS AND YOU TAKE AWAY THE BEADING GROUN OF TERRORISM, YOU'RE SING?

>> AND EDATION ANDGIVING YOUNG PEOPLE THE KINDOF THUR ICH YOU ARING AND ENCOURAGEME AT THE MOSQUE LEVEL, THE COMMUNIY LEL,ND HE NATIONAL LEV THAT YOUTH NEED. AND WHEN YOUNG PEOPLE A ENGAGED A NURTURED AND CARED ABT THAT I EAR NOT GNG TO DO THAT KIND OF CRAZY STUFF.

>> Suarez: RAIN HIMRAMEY DAVID SCHANZER, THAN YOU BOTH.

>> THANKOU.

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