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Four Americans Killed by Pirates; Earthquake Rocks New Zealand; Senator John Thune Not Running for President; On the Ground in Libya; Teachers to March in Columbus, Ohio; Touring a Drug Smuggler's Tunnel in Mexico

Aired February 22, 2011 - 12:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

SUZANNE MALVEAUX, CNN ANCHOR: Top of the hour. I'm Suzanne Malveaux. Let's get you up to speed.

A defiant Moammar Gadhafi appears on Libyan state television refusing to give up power. He called government supporters "true heroes" and labeled protesters "rats" and "drug addicts." Gadhafi says he'd rather die than go into exile.

The United Nations holds crisis talks on Libya in New York today. The Security Council has been meeting for about three hours now in urgent session.

Libya's diplomats to the United Nations have defected, calling Gadhafi a genocidal killer. Libya's ambassador in Washington has also cut ties to the regime.

And the U.S. military says pirates killed four Americans aboard their hijacked yacht today. The military says gunfire erupted during negotiations with the captors. The pirates are believed to be Somalis. The U.S. says four pirates are dead, 15 are in custody.

It is early Wednesday morning in Christchurch, New Zealand. That is 17 hours after a major earthquake.

Rescue workers hope to find survivors under the wreckage. New Zealand's prime minister says 65 people right now are known dead. And that number is expected to rise very quickly.

The people of Christchurch are in shock.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's my building.

UNIDENTIFIED FEMALE: It's your workplace?

(END VIDEO CLIP)

MALVEAUX: Just outside Christchurch, a man captured a massive rockslide on videotape. I want you to listen to this terrifying narrative.

(BEGIN VIDEO CLIP) GAVIN BLOWMAN, NEW ZEALAND RESIDENT: This is a live earthquake. You see the floors trembling, and the rocks are falling down in Sumner, just outside Christchurch.

And this giant rock has just fallen on the RSA building, and you can see it's crushed the building there and the cars. It's terrifying.

(END VIDEO CLIP)

MALVEAUX: We are tracking breaking news right now. Four hostages onboard a hijacked American yacht, killed by their pirate captors.

Our David McKenzie, he is in Nairobi, Kenya, to tell us about what happened here.

I mean, this is startling. This is something where U.S. forces, they were keeping a close eye, hopefully negotiating. Was this a botched rescue attempt?

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, it's unclear at this point, Suzanne. Certainly, four U.S. Navy ships, including an aircraft carrier, were keeping an eye, shadowing, in the words of the U.S. Navy, this 58-foot pleasure yacht, the Quest, which had four Americans onboard, all of them experienced sailors.

What we do know according to CENTCOM is that there was ongoing negotiations with the pirates. They could have even had some pirates onboard the U.S. Navy vessels to try and negotiate.

Now, at some point something went horribly wrong, Suzanne, and shots were fired on the Quest, not towards the Navy. It's unclear where those shots were going towards. And the Navy dispatched, very quickly, it seems, Special Operations Forces towards the Quest.

When they arrived, there were no shots fired initially, but they did find those four hostages severely wounded, according to the Navy. They did emergency first aid, but were unable to revive the two couples. And they even found two pirates dead onboard, so there could have been some kind of disagreement between the pirates.

And certainly experts I've spoken to in the region say with 19 pirates trying to hijack this one vessel, there might have been some who wanted to give up the hostages and others who wanted to take them to Somalia. So certainly a very tragic end. I don't think it's a botched rescue at this point, but certainly questions will be asked how this happened.

MALVEAUX: And David, do we know why those couples were out there in such dangerous waters?

MCKENZIE: They were out there because they were on this trip of a lifetime, Suzanne. They had started from the West Coast of the U.S. They had been going around past the Pacific. And initially on this trip leaving from the India, from the western port of Mumbai, they had been a part of a rally, as it were, a group of vessels sailing together for safety. At some point they left that group of vessels to go on their own, and that could have caused them to be even more vulnerable.

I just want to play actually a bit of sound here from a vice admiral in the U.S. He described what happened when those U.S. Navy Special Ops Forces arrived on that boat.

(BEGIN VIDEO CLIP)

VICE ADM. MARK FOX, COMMANDER, U.S. NAVAL FORCES, CENTRAL COMMAND: There were no gunshots fired from the boarding team as they boarded. None. And then as they were clearing the vessel, they did kill one pirate as they were clearing it, and then there was another pirate that was killed in a knife fight.

(END VIDEO CLIP)

MCKENZIE: Suzanne, some audio there from a press conference by Central Command. So certainly the Navy is trying to indicate that they weren't going in there guns blazing, as it were, that something really went wrong, and possibly on the side of the Somali pirates. But, certainly, this will be a bad sign for other people captured by pirates. Some 700 mostly commercial sailors are currently off the coast of Somalia right now, held captive by pirates -- Suzanne.

MALVEAUX: All right. David McKenzie, thank you very much.

Well, here is your chance to "Talk Back" on one of the big stories of the day -- big budget battles in several states, President Obama's role in all of this.

Our Carol Costello, she's joining us from Washington with today's "Talk Back."

Carol, there are a lot of folks who are debating the role of the president, the federal government, and getting involved in all of this.

CAROL COSTELLO, CNN CORRESPONDENT: Yes, getting involved in states, the whole states' rights thing, you know.

President Obama is in Cleveland right now. He is talking up small business leaders. But you can bet he will be asked about the budget battle down the road in Columbus.

Twenty thousand people are expected to protest Ohio Governor John Kasich's efforts to curb collective bargaining. Political observers are eager to hear what the president might say about that.

Some say he should just stay out of it, but it's too late for that. Last Thursday, the president said of Wisconsin's budget battle, everybody's got to make some adjustments to new fiscal realities, but then he added it seems more like an assault on unions. And that last comment drove Mr. Obama's critics wild.

Republican Senator Lindsey Graham called his comment "inappropriate." Graham said the president should focus on what's happening in Washington, not Wisconsin. But others say President Obama should be involved. He says he's pro- union, and organized labor helped elect him in 2008. And perhaps now is the time, because Wisconsin Governor Scott Walker is threatening to lay off 1,500 workers if the bill doesn't pass.

So "Talk Back" today: What should President Obama's role be in Wisconsin and Ohio?

Send me your comments, Facebook.com/CarolCNN, and I'll read your comments a little later in the hour -- Suzanne.

MALVEAUX: Carol, no mistake, no accident that this is all playing out to those key battleground states for 2012, huh?

COSTELLO: You've got that right.

MALVEAUX: All right.

COSTELLO: So the president has to sort of, you know, tread the waters very carefully on this one.

MALVEAUX: Yes, he does. All right. Thank you, Carol.

COSTELLO: Sure.

MALVEAUX: Well, here is what's ahead "On the Rundown."

A closer look at the earthquake devastation in New Zealand. Learn what liquefaction is and the role it played in the widespread damage.

Plus, we take a look back at some of the more bizarre moments of Moammar Gadhafi's reign in today's "Globe Trekking."

And major changes coming to Detroit's public school system as officials make drastic cuts to try to balance a $325 million deficit.

And if you forgot your wallet, there's no problem. The new way that some businesses are accepting virtual payment.

And finally, don't forget to vote for the story you want to see. We're going to play our winner in the "Choose the News" segment, up next.

(COMMERCIAL BREAK)

MALVEAUX: You get to "Choose the News." We're going to tell you about three stories, and you vote via text message for the one that you want to see at the end of the hour. So here's how it goes.

Your choices --

The dangerous game of smuggling people and drugs across the Mexican border. Agents take our Rafael Romo on an underground tour of a tunnel that's nearly a mile long.

Belgium sets a world record for the most days without the government in session. Some are celebrating. Others say this is a catastrophe.

And a reunion between a father and his kidnapped son, it goes viral in China. We're going to show you how bloggers are trying to solve the kidnappings of thousands of Chinese children.

So all you've got to do is text 22360. Vote 1 for Arizona smuggling tunnel; 2 for Belgium's world record; and 3 for Chinese family reunion. You'll get a chance to see the one you want.

Daybreak is about an hour away now in New Zealand. Search and rescue teams have been working through the night in quake-ravaged Christchurch. They are trying to find survivors buried in the rubble of collapsed buildings.

Much of the city now is in ruins. The magnitude 6.3 earthquake struck during lunchtime. At least 65 people are confirmed dead, and that number is expected to increase.

Well, we want to hear from one of the survivors, weather analyst Richard Green. He joins us by phone from Christchurch.

And Richard, just so happy that you are safe, that you are OK. But I understand that you were teaching a class when this earthquake hit. Can you tell us what happened?

RICHARD GREEN, EARTHQUAKE SURVIVOR: Yes, certainly.

Yes, it was very frightening, no doubt about that. And yesterday, our time, at around lunchtime, just in the class, radio class -- and, in fact, what seems a little odd is that we were analyzing music. The song that we were analyzing was Queen's "We Will Rock You" when the earthquake struck. And although there were a few smiles after that, once we got out it was just quite unbelievable.

And surviving that first one, the 7.1 earthquake in September, and comparing the one that was a little less on the Richter scale, 6.3 yesterday, it was just as violent. I'm not a small man, and I was thrown against the whiteboard where I was working on as well. I had 20 students in the class.

We had been having practice drills at the start of the teaching year -- as I say, as another quake hit -- to get under the desks. They did that within a matter of a couple of seconds.

And the earthquake itself, it started as a small tremor but then built, well, rapidly to that violent sway. And injuries as well to so many people, as we've heard. Well, to myself as well, cut on the head, but very minor compared to so many others.

But it was frightening. You know, it's just indescribable about seeing it on television and then actually experiencing it firsthand are two very different things, something I wouldn't want to experience again. And my wife --

MALVEAUX: What did you see?

GREEN: Sorry.

MALVEAUX: Oh, tell me about your wife, please.

GREEN: Sorry. Yes, well, she was in a worse situation.

She was in a high-rise building on the sixth floor, and much more violent being higher up. And although she escaped with her life, others may not have been as fortunate.

But she got down the stairwell, as the lifts weren't operating due to power cuts. And the water that was just pouring from above her, and they were all running down the stairwell to get out.

So just scenes that we just cannot quite believe. And I just wanted to mention, in the last couple of minutes we've had another live aftershock, and some of these aftershocks throughout the hours of darkness have been big, exceeding 5 on the Richter scale. So just adding to the nerves yet again here in Christchurch.

MALVEAUX: And that aftershock, Richard, what was that like?

GREEN: This one had quite a big sway on it, too. Not as violent as the main one yesterday, but yes, it's just a reminder. How big is this going to get? And it's just like it triggers the memory, and getting under a doorway or getting under the -- if you're at home -- the dining table.

Some people still running outside, and I think they've had two such large earthquakes within a five-month time frame has left locals extremely nervous, although resilient. Christchurch is a city of 350,000 people. Not a large city by international standards, but a very strong community.

MALVEAUX: Richard Green, we are so thankful and relieved that you are OK.

I want to go to retired Coast Guard Admiral Thad Allen, who was in Christchurch, New Zealand, where this quake hit. He recently headed up the U.S. response to the BP oil spill in the Gulf of Mexico.

And we've spoken many times, Admiral. I'm very pleased to find out that you're OK, too. But what were you doing there? Can you tell us what happened?

ADM. THAD ALLEN (RET.), U.S. COAST GUARD: Good morning, Suzanne. Actually it's morning here in Wellington, where I'm at right now.

I was part of a U.S. delegation that is part of something called the U.S./New Zealand Partnership Forum that gets together government officials and businesses to talk about how the two countries can proceed together. And our particular delegation was led by former Senator Evan Bayh and former U.S. trade representative Susan Schwab. We had gotten into the country over the weekend, and actually were spread around town at a variety of luncheons throughout Christchurch when the earthquake occurred.

MALVEAUX: And what happened when it actually hit?

ALLEN: Well, as I said, there were about five or six different lunches going on. Some of them were in the city center, which was greatly affected, and then out towards Littleton Port.

I, myself, was at the Antarctic Center out by the airport. And while the building shook furiously, and glasses were broke, the building stayed intact, and there was not significant damage there. Some of our representatives that were having lunches downtown actually had to escape from second-and-third-story buildings -- I mean floors in hotels, and get out, and had to walk to where we could get them out to an evacuation point. We were all evacuated yesterday by the Royal New Zealand Air Force to Wellington, and we're moving on from there this morning.

MALVEAUX: And Admiral, you've actually experienced a great deal of crises and disaster. You were on the front lines of Hurricane Katrina in New Orleans, as well as the BP oil spill.

How does this compare when you see what has taken place on the ground?

ALLEN: Well, I think you've heard from the local New Zealand officials, this was very small and targeted in the area right around Christchurch. And while this earthquake was not of the magnitude of the September earthquake, because of the location and the depth, it was much more damaging to the structures around there.

I can tell you this -- we met with the mayor on Sunday night before our meeting started, Bob Parker, and we talked about the September earthquake. I can tell you, this is a very resilient city. It's a very strong city. And under the prime minister, John Key, and Mayor Parker, they are doing a terrific job down here.

MALVEAUX: All right. Admiral Thad Allen, good to hear from you. Good to see you. We're glad that you are safe, as well as the U.S. delegation that's there.

I want to go directly to Mark Preston, who has got some news for us coming out of the Political Desk -- Mark.

MARK PRESTON, CNN POLITICAL EDITOR: Hey, Suzanne. Yes, breaking political news out of here in Washington.

Senator John Thune, he's a South Dakota Republican. A lot of people thought that he would run for president. Well, just moments ago, he has released a statement saying that he will not run for president in 2012. In fact, what he is saying is that the battles over the next two years are going to be on Capitol Hill.

Now, he holds a GOP leadership position on Capitol Hill. John Thune, considered a rising star in the Republican Party. In fact, back in 2004, he defeated then-Senate Minority Leader Tom Daschle.

He's only 50 years old, Suzanne, so even though he is not going to run in 2012, if President Obama does win another term, in the next two years expect John Thune to at least be on the short list to run in 2016.

MALVEAUX: All right. Thank you, Mark. Thanks for that developing story and that breaking news out of Washington.

Well, in the midst of unspeakable violence, Libya's leader makes a strange appearance. Some are questioning just how mentally stable Moammar Gadhafi really is.

Our Michael Holmes is going to take a look at his bizarre past.

(COMMERCIAL BREAK)

MALVEAUX: The United Nations Security Council is in closed-door talks now about the crisis in Libya. The meetings also involve Western envoys and a delegation from Libya that has now broken away from the Gadhafi regime.

Secretary-General Ban Ki-moon has spoken to the Libyan leader, and he's urged him to respect human rights and stop the violence against protesters. Now, one of the main options the U.N. has right now is to suspend Libya from the Human Rights Council. Libya's deputy U.N. ambassador has also called on countries to deny Gadhafi entry into their country if he decides that he is going to flee.

Well, he went on state TV telling the world he'd rather die as a martyr in Libya than step down.

Our Michael Holmes, he's here with a closer look at Moammar Gadhafi in today's edition of "Globe Trekking."

We saw that speech together.

MICHAEL HOLMES, CNN CORRESPONDENT: Yes.

MALVEAUX: And some people look at Gadhafi and they say, the guy is just crazy.

HOLMES: Yes.

MALVEAUX: Others say he is crazy like a fox.

Which one is it?

HOLMES: Ronald Reagan famously nicknamed him the "Mad Dog of the Middle East." But if Moammar Gadhafi is anything, he is idiosyncratic, eccentric. He's a dictator who has run the country since 1969. He orchestrated a coup.

He's been unchallenged, shrewd, iron fist. His style? Well, you could call it dramatic flair.

You can if you can try to just forget for the moment that this man has been ordering his troops to fire into crowds of his own people, or that he is known for executing anyone with mild dissent. While indisputably ruthless, now, Gadhafi's name is of course synonymous with the bizarre. Now, the image from his earlier state television appearance -- you see it there today -- stepping out of the car. He's got the big white umbrella. Wearing some wacky hat. A commonplace eccentricity for this violent ruler.

MALVEAUX: And who can forget -- I mean, it was just a couple of years ago where you had before the United Nations a speech that went on for about an hour and 40 minutes or so. I remember seeing that.

HOLMES: Yes. Six or seven times longer than allowed.

MALVEAUX: Right. And today was kind of reminiscent of what we saw.

HOLMES: It was, wasn't it? I was waiting for him to start talking about the NBA or something. That's what we're talking about here.

That speech, six times longer than the allotted timeslot. In the middle, it was a nonsensical ranting.

He tore up the U.N. Charter at one point, accused the Security Council of being a terrorist organization. Later on he said it was jetlag, sorry.

And don't forget his failed attempt on the same trip to pitch a tent in the middle of Central Park to receive visitors. He does this all over the world, or tries to.

He surrounds himself with dozens of heavily-armed, often voluptuous female bodyguards because he doesn't trust the men. He once invited hundreds of Italian -- let's call them hostesses -- to a villa in Rome to lecture them on the merits of Islam.

Now, in his late 60s -- he turns 69 next month actually -- he refuses to anoint a successor. And as this uprising now goes into its eighth day, some experts are beginning to question whether his iron fist grip might be slipping.

One thing is certain. I mean, based on what we heard today and what we know of his personality, he is obviously not going anywhere without a fight. And not likely to flee to some other country, as some were suggesting earlier.

MALVEAUX: And as we know, there are not as many countries that raising their hands to take him. Right? That's the other point.

HOLMES: Exactly. And if that happens, what has he got to lose? And that's the big fear here, that he could end up taking out thousands of people, of his own people.

MALVEAUX: If he's got no other place to go.

HOLMES: No other place to go. And brutal.

MALVEAUX: Michael, thank you very much. Appreciate it.

Well, cities trying to cope with tough budget decisions. A Detroit plan would make classrooms a lot more crowded. We're going to tell you about this drastic proposal and what it means for the kids.

(BEGIN VIDEOTAPE)

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Time now for "The Help Desk," where we get answers to your financial questions.

With me this hour, Ryan Mack, the president of Optimum Capital Management. And Doug Flynn, he's a certified financial planner and founder of Flynn Zito.

Thanks for being here today, guys.

Our first question is from Semiray (ph), who writes in, "I'm a 22- year-old college student and I have $20,000 in debt, not including student loans. I have considered bankruptcy because I want to start fresh. Will that affect my student loans?"

What do you say, Ryan?

RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Well, as of right now the answer is no. I mean, essentially, right now student loans cannot be discharged in bankruptcy. There is legislation that individuals are talking about proposing to make sure that they are. But as of 1998, in October, that essentially negated them from being discharged in bankruptcy unless you can prove undue hardship within that.

But the bigger question is exactly being responsible, making sure we can do the patriotic thing and making sure we use loans responsibly, take out loans responsibly, devise a plan, and pay it back responsibly, whether individual, governments, and corporations. All we have to do to make sure that we're adding value.

ELAM: Yes, that could be kind of young, 22, going into bankruptcy.

MACK: Exactly.

ELAM: And that could really affect you for a long time, so I'd look at the effects of that.

All right. Our next question from Ken is, "I'm 64 and have been out of work for 18 months. I have depleted what was left of my 401(k), been through $125,000 in personal savings, carried $20,000 in credit card obligations, and am about to lose my unemployment benefit. Is there a way back?"

Doug?

DOUG FLYNN, FLYNN ZITO: Well, the first thing that comes to mind is if you're 64 and you spent that much money in that short period of time, a year and a half, two things pop up. One, you're probably spending $100,000 a year and haven't changed your lifestyle being out of work. And, two, you are completely not prepared for retirement at 64 if money that was supposed to last you the rest of your life was completely gone through in 18 months. So the problem is this person was probably already on a way to working for their entire life. They just overspent. And the bigger issue is, what should have happened was three or six months into the unemployment, that's when you have to go into crisis mode. You don't wait until the very last dollar to do that.

ELAM: What can he do now? Anything?

FLYNN: The problem is he is going to have to probably downsize if he owns a house, cut expenses to the bone, get any kind of a job. And the problem is, had he done this a year ago, he might have been able to do it with $100,000 in the bank.

Now you're doing it -- and humans do this. They wait until it's an absolute crisis, and then they act. And what we try to do is to say, listen, three or six months in, act as if right then and there you have that money as a backstop. You can always go back and do these things --

(CROSSTALK)

ELAM: So the idea then is just find places to cut that you didn't realize you could cut before.

FLYNN: He's going to have to cut everything.

ELAM: All right. Thanks so much, gentlemen, for helping us out.

If you have a question you want to get answered, let us know. Send us an e-mail any time to CNNHelpDesk@CNN.com.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

MALVEAUX: We're following all the developments in the ground in Libya. Our own Ben Wedeman who was the first western TV journalist to be reporting out of Libya. He joins us by phone.

Ben, if you can, just give us an update on what you are seeing and hearing on the ground today.

BEN WEDEMAN, CNN CORRESPONDENT (via telephone): Well, we've been just traveling around the eastern part of the country where, clearly, the anti-Gadhafi forces are firmly in control. It's sort of the most notable thing at the moment is the local reaction to the speech, this long, rambling, incoherent speech by Moammar Gadhafi live on television in which he is basically telling -- he is urging the protesters, for instance, in Benghazi to hand over their weapons.

He is saying that he is expecting Libyans who love and support him, to take to the streets and demonstrate for him. Certainly, the reaction in this part of the country, what I saw, shakes of the head and rolling of the eyes. Yet another speech from this man who has ruled this country for 42 years, threatening his own people, one man telling me, this is a leader who wants a country without any people.

Because apparently most of the people, at least from the perspective of eastern Libya are absolutely and adamantly opposed to his continuation in power, but certainly it was a threatening speech indicating that he -- he said that he hasn't even used force yet in putting down these protests, something that obviously most of the Libyans are going to raise their eyebrows at, given that hundreds have already been killed so far in these demonstrations. They've only been going on for one week.

MALVEAUX: Beyond raising their eyebrows do you get a sense that these protesters, the folks that are out there, despite all of the killing that's happened by the regime, that they're emboldened now, that they will continue to protest, they will continue to defy Moammar Gadhafi?

WEDEMAN: Certainly from the perspective of this part of the country I would say yes. There is no going back. There is a realization that there is no way that the central government in Tripoli is going to be able to extend or reassert its authority in the eastern part of the country without an absolute blood bath.

These people have made a division that they no longer want to live under the rule of Moammar Gadhafi and will fight tooth and nail to prevent any reassertion of his authority in their part of the country.

MALVEAUX: Ben Wedeman, there on the ground inside Libya. We appreciate your perspective and obviously being able to bring this story to us first hand. Thank you, Ben.

Well, class is back on today in Wisconsin. That is Madison, Wisconsin, after protests shut down schools last week. But from Wisconsin to Ohio, tens of thousands of teachers and other public workers are continuing to fight plans to limit their bargaining power.

Our CNN's Kate Bolduan is in Madison. Deb Feyerick is in Columbus, Ohio and Poppy Harlow is in New York talking about Detroit's drastic plan to close city schools. We have this covered throughout the country.

I want to start off you, Kate, in Madison. What are you finding?

KATE BOLDUAN, CNN CORRESPONDENT: Hey there, Suzanne, as you mentioned teach yours unions, the teachers are heading back to class today, but the union protests, they are continuing here at the state capitol. Neither side of this budget debate are showing any signs of backing down any time soon.

Governor Walker is now warning of the potential of massive layoffs, 1,500 workers in the near term if his budget repair bill is not passed. Unions though, they say they're already offering concessions, but really neither side is ready to compromise on the big issue, the issue of collective bargaining rights.

At the same time, the state Senate and state assembly, they are back in session today, but with those 14 Democratic state senators still out of town, the Senate can't do anything. They are at a standstill and they cannot bring this measure or vote on this measure.

Ratcheting up the pressure here is the fact that Walker's administration says that a key provision of his budget bill, if it is not passed by Friday the state may not be able to refinance state bonds and they say that could only make things worse here in Wisconsin.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, Suzanne, busloads of union workers arrived moments ago. Some of them are out here on the steps. Others inside the state capitol here in Columbus, Ohio. The Republican who is sponsoring this bill says the state is out of money. There is a billion dollar deficit and that this has to be done.

The measure is not going to save money, however, it will give city and town managers the ability to balance their work force while maintaining services. What does that mean? It means it is aimed squarely at the union state workers losing bargaining rights, firefighters, teachers, police would be able to bargain but for salaries only. Pensions and health care off the table.

Existing contracts already negotiated, those could be terminated or changed because of the fiscal crisis. These union folks say it's going to deprive them of a livable wage that working conditions will get worse, and also it will affect everyone's quality of life.

However, the senator who is shepherding this through says that in fact there are other protections for these workers that this has to be done. There is this demonstration going on, a committee meeting at 4:00, and then after that we will see as more protesters begin to gather. That's it from Ohio for now.

POPPY HARLOW, CNNMONEY.COM: And we are tracking the school's budget deficit. Really a crisis in Detroit. What Arne Duncan, the education secretary has called ground zero for the education crisis in this country. I want to show you the man trying to fix it. Robert Bob is the emergency financial manager of the Detroit Public Schools.

You see him right here and what he has done and what has just been approved by the state of Michigan is to close a $327 million budget deficit for the schools, but take a look at what this is going to mean. Just astonishing. They will have to close 70 more schools in Detroit, alone. That will leave only 72 schools by 2014.

That will also mean 60 students per high school class. Now, the teachers are fighting back. They are gathering in Lansing, Michigan, at the state capitol today, fighting against these emergency financial managers just like Robert Bob, people that can make these drastic cuts.

And just to be clear here, Suzanne, this is not what he wants to see happen to Detroit, but he said it is the only way that you can close that gap of $327 million. That said, they are looking for alternate ways to get around this. They cannot declare bankruptcy for the school system. They are fighting, trying to find out what else they can do, Suzanne.

MALVEAUX: Thank you, Poppy, Kate, Deb. Well, he is out of rehab, but Charlie Sheen is never far from the Hollywood spotlight. Our showbiz news is up next.

(COMMERCIAL BREAK)

MALVEAUX: It's the geekiest race ever and it's our "Random Moment" of the day. Here you go. A British athlete is planning to run the Tokyo marathon this weekend with this really funky contraption strapped to his body. He calls it an I-run and wait until Apple hears about this.

The I-run, it's got four iPhones on rotating mounts. It's got an iPad, an android handset, three mobile Wi-Fi routers. He plans to stream all 26 miles live on the internet. By the way, the satellite dish on the helmet is just for show. You have to love that creativity of some folks there.

All right. Two of Hollywood's most controversial stars, they are back in the news and not surprising. "Showbiz Tonight" host Brooke Anderson joins us live from Los Angeles to tell us what is going on. We have Miley Cyrus and Charlie Sheen both making headlines. Brooke, let's start with Miley. What do we know?

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: Yes, why don't we start with Miley, Suzanne? You may remember that Miley's dad, Billy Ray Cyrus, recently told "GQ" magazine that Miley's popular television show "Hannah Montana" destroyed their family and ripped it apart and now there are reports Miley is upset with her dad.

She was given an award over the weekend for her charity work and in her acceptance speech she took what many people interpret as a shot at her dad. Here is what Miley said. I want kids to do something they love, not something that seems like a chore because someone tells them that's the right thing to do or what their parents want.

I actually think Miley was just saying, follow your heart. But of course the blogosphere went wild looking for anything to call a rift between the two of them. There's also a report that Billy Ray canceled some public appearances in New York this week because Miley wants him to stop talking about the family.

Suzanne, in his "GQ" interview to me Billy Ray seemed like an anguished father who has a lot of regrets and is now trying to regain some control. So hopefully they can put all of this drama behind them, come together again as a family.

We wish them the best. What about Charlie Sheen? What do we know? How is he doing?

Well, my day is not complete, without a mention of Charlie Sheen. He's back in the news but no scandal. He told TMZ he wants to appear in another sequel to "Major League." You may remember "Major League" as the baseball movie where sheen played a character nick named appropriately wild thing. This would be the fourth film in the series about major league baseball although sheen was not in the third film. There are other reports that the film is in the works. TMZ saying that most of the actors have already been contacted about appearing and sheen is well known as a huge baseball fan. Might be a really good project for him. MALVEAUX: Yes, we wish him the best and what about Charlie Sheen. What do we know? How is he doing?

ANDERSON: Well, you know, my day is not complete, Suzanne, without a mention of Charlie Sheen. He's back in the news, but no scandal here thankfully. He told TMZ that he wants to appear in another sequel to "Major League."

You may remember "Major League" as the baseball movie where Sheen played a character nicknamed appropriately "Wild Thing." This would be the fourth film in a series about major league baseball though Sheen was not in the third film.

There are reports that the film is in the works. TMZ saying that most of the actors have already been contacted about appearing in the film and Suzanne, Sheen is well known as a huge baseball fan so it might be a really good project for him.

MALVEAUX: All right, we wish him the best. Thank you, Brooke.

Today on "SHOWBIZ TONIGHT" Justin Bieber cuts his famous locks. The crazy coast-to-coast reaction to his new look live on HLN at 5:00 and 11:00 p.m. Eastern.

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MALVEAUX: And a reminder to text us at 22360 with "Choose the News" picks. You vote one for Arizona's smuggling tunnel. We're going to show you the mile long underground path where people are risking their lives to cross the border. You vote two for Belgium's world record. Two hundred and fifty-five days, if you can believe this, without a government. And three for a Chinese family reunion. Thousands of Chinese parents whose children have been kidnapped have new hope now of being reunited. So your choice airs at the end of the hour, but you've got to text first. All right.

President Obama is in Ohio. Should he get involved with that state's budget crisis while he's there? That's our "Talk Back" question of the day. And some of you are already weighing in. Robert Matthews writes, "It's none of his business." We'll have more of your responses ahead.

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MALVEAUX: And this just in to CNN. The niece of one of the women killed by Somali pirate captors off the coast of Africa spoke with reporters in San Francisco this morning about what the government has told her about her aunt's death. Take a listen.

(BEGIN VIDEO CLIP)

NINA CROSSLAND, NIECE OF PIRATE VICTIM: I can speak to what I've been told about my aunt. My aunt was not dead when she -- when the Navy Seals arrived on the ship. She had been shot. She was not dead at that time. And they did try to save her but they were unsuccessful.

(END VIDEO CLIP)

MALVEAUX: The group aboard the Quest was reportedly on a mission to distribute Bibles around the world when Somali pirates hijacked their yacht.

Well, this just in. The Algerian state news agency is now reporting that the government has agreed to lift a state of emergency that was imposed back in 1992. This after protests began in January over rising food prices, high unemployment, housing issues. The protests started in Algiers, but spread to other cities. And clearly this looks like the president, Algerian president saying now he's lifting the state of emergency law. That he is hoping, analysts say, he's hoping to head off any kind of revolt that happens in his own country. This on the heels of what we have seen coming out of Tunisia and Egypt. Again, the leadership there and Algeria, this just in, lifting its state of emergency.

Well, here is your chance to "Talk Back" on one of the big stories of the day. States are facing some tough budget cuts. And there are some battles over what to do next. Our Carol Costello, she is live in Washington with your answers to talking back about what the president should do in all of this and his role.

Hey, Carol.

CAROL COSTELLO, CNN CORRESPONDENT: Hi, Suzanne.

President Obama is in Cleveland right now. Some wonder if he'll comment about the collective bargaining fight that's going on just down the road in Columbus, the state capitol. Some Republicans have said the president should stay out of the fight. It's up to governors of each state to handle his or her own business. So "Talk Back" today, what should President Obama's role be in Wisconsin and in Ohio? And in Indiana, for that matter.

This from Mike. He says, "he should continue to stand up for the rights we've earned to bargain collectively. I.E., he should act like a Democrat."

This from Kathleen. She says, "it's risky and tricky. He will be criticized no matter what course of action he takes."

This from Alyson. "President Obama needs to stay out of it. This is a state issue, not a federal one."

And this from David. He said, "interfering in state politics is tricky, constitutionally. But if he can intervene in strike-related situations for the national good, airline strikes, for example, maybe there is a precedent here."

Continue the conversation, as always, facebook.com/carolCNN and I'll see you again on TV tomorrow.

MALVEAUX: Hey, Carol, I can only imagine how politics is playing in all of this. I mean, I don't know how many times we were in Ohio during the campaign. The president trying to push for support. A big union state. A lot those swing states the president was there trying to rally support. Do you think -- how much do you think viewers are weighing in on its politics?

COSTELLO: Oh, it's definitely politics. But it's also this. The president has to do something about his own budget, right? The federal budget. So he's trying to be fiscally responsible because that's what voters told him to do in the midterm with, you know, the shellacking the Democrats took. So he has to walk a fine line between supporting collective bargaining rights for union members and for being, you know, fiscally responsible. So for him, there's a really fine line to walk. And it may be politics, but it's also practicality, too.

MALVEAUX: Absolutely. And, Carol, we'll see you, what, tomorrow on television again, as you said, next time.

COSTELLO: Yes. But I'll still be on Facebook, facebook.com/carolCNN.

MALVEAUX: All right, good. People can weigh in on Facebook as well.

Thanks, Carol.

Well, our producers, they've been tallying the last-minute results. We're going to have your "Choose The News" winner. It airs next.

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MALVEAUX: Time for your guilty pleasure. Stories that are too juicy to resist. Want to know the moment that the special someone you've been eying is out of a relationship? Well, there's now a new app for that. The Facebook Breakup Notifier. Yes, that's right. It sends you an alert as soon as they change their relationship status.

And Kathy Griffin landing a role on the hit show "Glee." Griffin tweeted the news to her fans last week. She'll be playing a judge on an upcoming episode. And her character, Tammy Jean, is said to be based on a middle aged recent Tea Party candidate and home schooler, or what they call a Sarah Palin type.

And, you picked it. We're going to air it. It's your "Choose The News" winner. A tunnel under the border between Arizona and Mexico is being used to smuggle drugs and illegal immigrants. Our CNN senior Latin American affairs editor Rafael Romo takes us on an underground tour.

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RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR (voice-over): As night falls, it's time to go into the bowels of the earth.

AGENT MICHAEL CAMDRON, U.S. BORDER PATROL: We're usually trying to see some sign that someone's been coming through or pushing bundles of marijuana or something like that.

ROMO: Only flashlights separate these U.S. border patrol agents from complete darkness. This is the grand tunnel. A flood prevention system built right underneath the U.S./Mexico borderline at Nogales, Arizona. But the tunnel, almost a mile long, has been used by criminal organizations to smuggle drugs or people.

AGENT ARIEL MEDELES, U.S. BORDER PATROL: You can set up a marker, an empty can or something, stand it up, that way you know you set it there. If anybody comes through, they'll knock it down or push it out of the way.

ROMO: Earlier this month, agents found a smaller tunnel connecting to the Mexican side that was used to smuggle drugs. Last November, another tunnel connected to a sewer line was also discovered.

CAMDRON: I've personally seized groups of 30 individuals with 50-pound bundles down here.

ROMO: Patrolling this tunnel is not for the faint of heart. As we walk its length, we find black widows and other insects, not to mention entire colonies of cockroaches. But what the agents are interested in are signs of human presence.

MEDELES: Well, a lot of times they'll tunnel around the gates and they'll come out on the north side and they'll smuggle people or contraband across, drugs. Or I've even seen they can push the grates up, five or six guys, and They'll run across, too.

ROMO (on camera): We are inside what is called the grand tunnel. This is underground in Nogales, Arizona. Right next to me, on the other side of this gate, is actually Mexico. And the way a lot of smugglers operate is that they will use smaller tunnels like this one, bringing anything from people to also drugs. Risking their lives in many cases.

ROMO (voice-over): Before the gate was installed, it was not uncommon for agents to find dead bodies in the tunnel.

MEDELES: There was a group down here and they got caught in the flash flood and then hours later they were looking for a body, you know, north of the openings.

ROMO: After patrolling the entire length of the tunnel, it's time to go back up to the surface again. No new tunnels, drugs, or suspects have been found tonight. But tomorrow, the story may be entirely different.

Rafael Romo, CNN, Nogales, Arizona.

(END VIDEOTAPE)

MALVEAUX: CNN NEWSROOM continues right now with Martin Savidge, who's in for Ali Velshi.

Hey, Martin.

MARTIN SAVIDGE, CNN ANCHOR: Thanks very much, Suzanne.