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Alabama Immigration Law Under Fire; Senate to Vote on Debt Deal; U.S. Markets Awaiting Debt Deal; Ex-Detroit Mayor Leaves Prison; Bankruptcy for Rhode Island City; Vial of Ted Bundy's Blood Found; Representative Giffords' Surprise Vote; Obama to Speak at Noon; Kelsey Grammer Considers Politics

Aired August 02, 2011 - 10:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: OK. It's 10:00 a.m. on the East Coast, 7:00 a.m. out West. I'm Kyra Phillips. Thanks so much for joining us.

Well, now it's the Senates turn. Lawmakers schedule a lunchtime vote on the debt ceiling plan as Washington races the default deadline.

In Great Britain, police arrest a 71-year-old man in connection to the phone hacking scandal. Sky News reporting that he's the former managing editor of the disgraced tabloid "News of the World."

The Justice Department challenging Alabama's new immigration law less than one month before it takes effect. Civil rights groups also filed suit against the crackdown on illegal immigrants.

All right, you can hear the whistle, Senate showdown at high noon. Just two hours from now, voting is scheduled to get under way on the debt ceiling plan to keep the government from running out of money.

It passed the House with surprising ease last night. Congressional leaders hope to have the plan on President Barack Obama's desk this afternoon, the last day of the deadline.

We're covering all the angles of the story. Wolf Blitzer is in Washington, on Capitol Hill, Joe Johns and Brianna Keilar at the White House.

Wolf, let's go ahead and start with you now. The poll numbers, new poll numbers just out. It looks like the country feels like Washington has acted like a bunch of spoiled children versus responsible adults.

WOLF BLITZER, HOST, THE SITUATION ROOM: It's true. The new CNN ORC poll, take a look at this. We asked people across the country and this poll was taken after the agreement was struck. Some of the people we've spoke to before the House voted last night, some afterwards.

But only 17 percent, look at this, Kyra, 17 percent believe that elected officials acted like responsible adults, 77 percent say elected officials who dealt with the debt ceiling crisis have acted like spoiled children.

That's not exactly a ringing endorsement of the way officials in Washington, liberals and conservative, Democrats and Republicans, executive branch and legislative branch, Kyra, have acted. Certainly not a ringing endorsement of how they behaved in terms of this crisis.

PHILLIPS: And you write in your blog, I'm going to mention your blog once again, that if you liked the debt ceiling debate the last few day, you're going to love the debate that will occur in the days leading up to Thanksgiving this year.

BLITZER: And if you hated the debate, you're going to despise the debate that's going to unfold around Thanksgiving, just before Thanksgiving when the Super Committee is supposed to come up with its recommendations, six Democrats, six Republicans.

I don't know if they'll be able to come up with recommendations this 12-member panel, but even if they do then Congress would have to approve it.

And if they don't then there's going to be a whole series of triggers that go into effect, some automatic cuts in spending, defense spending, non-defense spending, painful spending cuts, more painful spending cuts.

People aren't going to be happy across the board. So this debate to put it mildly is only just beginning. A couple other poll numbers we should point out, Kyra, if you've got a sec. You've got a sec?

PHILLIPS: Sure, anything for you, Wolf.

BLITZER: All right, take a look at this. We asked in the CNN ORC poll, if you approve or disapprove of the debt ceiling agreement, 44 percent approve, 52 percent disapprove.

And then we asked if among Democrats, independents and Republicans, 63 percent of Democrats approved of the agreement, 35 percent independents, 35 percent Republicans.

So overall, the people approved -- didn't approve of the deal, but when all is said and done, the country really had no choice right now given potentially default and catastrophe, the economic catastrophe that could have developed.

We'll never know now if it would have developed, but it could have, and that's what motivated so many people who hated this agreement to go ahead and actually vote for it.

PHILLIPS: Wolf Blitzer, we'll be talking more. Thanks. Now, all along it was the House not the Senate that was seen as the greater hurdle passing this deal. So Joe Johns, does that pretty much mean it's a done deal in the Senate?

JOE JOHNS, CNN ANCHOR AND CORRESPONDENT: Kyra, well, the guidance we're getting is that it is expected to pass the Senate. They need a 60-vote margin to do that certainly some heartburn over this. The Senate was in around 9:30 Eastern.

We can show you the floor right now. Out there speaking is Senator Bill Nelson of Florida. A number of others on the floor including Senator Richard Durbin of Illinois saying he will vote for this bill with a heavy heart.

Senator Lamar Alexander of Tennessee calling this a change in government behavior from spend, spend, spend to cut, cut, cut and David Vitter, the senator from Louisiana not on the floor, but actually tweeting this morning that he will not vote for this bill because in his view it does not go far enough.

So we'll be watching and waiting. It's expected to go to a vote around lunchtime, noon here in Washington, D.C., Kyra, back to you.

PHILLIPS: OK, Joe, thanks. Now let's get to the White House. Brianna Keilar, as the Senate gets ready to vote in just a couple of hours, when is the president expected to sign the bill?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: We're expecting that he would sign it, Kyra, very quickly after getting it, which isn't to say that he gets it very quickly after it would be passed by the Senate.

There's sort of a paperwork process that the Senate goes through and then the bill, if isn't just e-mailed over here to the White House. It is physically delivered. And while at this point there is no plan for some big signing ceremony like you've seen with past bills.

It wouldn't be that unusual if the president were to perhaps make some remarks and try to really punctuate exactly what this whole saga has really come to and the resolution of it. Then, Kyra, it's sort of interesting.

The president is just on to the next thing. Tomorrow, he'll be going to Chicago for some fundraisers. He has his 50th birthday on Thursday. And on Friday, July jobs numbers come out and the president has really felt that he's been stuck here.

Of course, dealing with this for over a month, hasn't been able to get out on the road with his jobs message. So we're going to be seeing him traveling here in the next few weeks, Kyra.

PHILLIPS: OK. Brianna, thanks. And Alison Kosik, let's get to you at the New York Stock Exchange. You know, after seven straight days of losses, will today's expected passage help boost the U.S. markets?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Did you think it would, right? But at this point, it doesn't seem likely, Kyra. The major averages trading in the red. We're about 30 minutes into the day here on Wall Street.

Investors, they are still anxious for the Senate vote to go through and you know, get this entire debate behind them. The main concern actually now seems to be less on the debt ceiling, which some are calling a side show.

And more on the health of overall economy because the recovery is showing signs of stalling out so you combine last week's lackluster GDP report with yesterday's weak manufacturing numbers and throw in today's drop in consumer spending and we've for the some losses in the markets.

And, you know, a lot of concern among investors. Now stocks don't rebound today. It will make it the eighth straight day of losses for the Dow. The best hope is that Wall Street gets stronger than expected July jobs report on Friday. That could boost sentiment because it is right now very pessimistic right now on Wall Street, Kyra.

PHILLIPS: OK, Alison, thanks. And it's just Wall Street, investors around the world have been watching the stalemate, a lot of pessimists there, too. Richard quest on the Washington Mall. Now, you're not a pessimist, but you will give us the reality check when it comes to the international reaction today. Richard.

RICHARD QUEST, HOST, "QUEST MEANS BUSINESS": I am going to give you the reality check. It's relief that something is being done and as Wolf has said, as Ali Velshi has said, as Joe Johns has said, the question is whether it's going to be enough.

Look, there is no point in getting out of the pan if you jump into the fire. This Super Committee that will now have to choose six members from either side, there will be the ramifications and the rancor that will go through in that process.

The international community will be watching very carefully to see whether or not this debt reduction is serious. We've seen the U.S. before try to cut the deficit. It doesn't usually work very successfully.

The only way deficits are removed in this country in the past is through first economic growth in the '90s, which either get rid of the deficit or you inflate the debt out of existence. Neither of those solutions is likely to happen in the short term.

PHILLIPS: All right, so let's talk more about the debt rating agencies, OK, because of all these talks swirling around the deal and that it can't save a lower credit rating for the U.S. and that any kind of ratings adjustment is justified either way. What do you think?

QUEST: You can't have it both ways. You cannot attack the debt ratings agencies when they did it a terrible job during the subprime crisis and gave all that rubbish nonsense AAA.

You can't have that and then when they now say we're doing the right job, we're looking at the U.S. debt, we're talking about that, and we're coming up with a proper rating, then castigate them for doing that.

If the debt rating agencies, and they use qualitative and quantitative measures to take the total picture, the long term outlook for U.S. debt, if they say and if they look at what happened over here this week that the U.S. does not merit AAA, you've got to take that seriously.

But don't worry too much. There are plenty of countries that aren't AAA. I happen to think that AAA will stay for the time being. I think it will stay for somewhat longer because I think the pressure on the rating agencies will be absolutely ferocious to hold the line.

PHILLIPS: Got it. By the way, is it hot out there or is this debt debate that's making you sweat so much there, Richard Quest?

QUEST: No, no, I tell you what it is, I'll be much more honest. It is the sun block so that when I'm not talking to you -- multitasking.

PHILLIPS: Multitasking and just keeping things cool. Thank you, sir.

Coming up, the day after her surprise vote on Capitol Hill, we look at how far Gabrielle Giffords has come. Joining live her former intern Daniel Hernandez, that's him right there holding her hand after a gunman put a bullet in her brain.

(COMMERCIAL BREAK)

PHILLIPS: All right, checking stories cross country now. Former Detroit Mayor Kwame Kilpatrick is a free man. He walked out of a Michigan prison just three hours ago. Kilpatrick served more than 14 months for violating probation and an obstruction case that forced him to leave office in 2008.

The web site for Central Falls Rhode Island calls itself a city with a bright future, but that maybe stretching it a bit. Central Falls filed for bankruptcy after failing to get police and firefighter retirees to give up half their pensions. The governor weighed in.

(BEGIN VIDEO CLIP)

GOVERNOR LINCOLN CHAFEE (R), RHODE ISLAND: Its ability to provide basic services for its citizens and to meet the obligations that would make the city retirees and beneficiaries have been endangered by years of unfortunate fiscal mismanagement.

(END VIDEO CLIP)

PHILLIPS: The vial of Ted Bundy's blood could help investigators close cold cases. A serial killer was executed in 1989 after confessing to more than 30 murders, but he could be pinned with even more killings thanks to a detective who came across a vial of blood taken in 1978. It was still on file. Complete DNA profile on Bundy will be uploaded to the FBI's national database this week.

It was almost seven months ago when a gunman attacked a rally for Arizona Congresswoman Gabrielle Giffords. She was horribly wounded, a bullet to the left side of her brain. Well, she beat the odds as you know and survived. And after months of rehab, she surprised her colleagues right here returning to Capitol Hill for last night's vote on the debt deal.

And a pretty touching moment for Daniel Hernandez, he was that brand new intern in Giffords office when the shooting happened and he's a big reason why she's alive today.

So Daniel, she definitely wowed the floor. How did that make you feel to see that?

DANIEL HERNANDEZ, REP. GABRIELLE GIFFORDS' FORMER INTERN: You know, it was absolutely amazing to be able to see her going back to doing what she's always loved, which is representing her constituents in the 8th District. So I think for me, words really can't put into context how excited I was to finally see her going out and doing what she's always done.

PHILLIPS: Now if have you had a chance to talk to her recently, Daniel?

HERNANDEZ: Not recently. But I'm very excited because the fact that she's been able to do this means that she's just on this great path to recovery and this is an important step in her recovery.

PHILLIPS: Well, the way you responded to her on that devastating day has definitely changed your life, as well. How do you think it sort of refocused or changed your destiny?

HERNANDEZ: You know, I've always been interested in helping others in a way that I didn't though how to do that, so I've really dedicated myself to public service.

And I still don't know which route that's going to take, but I'm just really excited that as many opportunities as I have now because I've always known that I want to help others.

And now I can do it through advocacy or do it by working in government and those are options that only came up after having worked with Congressman Giffords.

PHILLIPS: I know you've been doing a lot of speaking engagements. Would you want to work for the congresswoman again, is that an option possibly?

HERNANDEZ: If it were an option, I'd jump on it right away.

PHILLIPS: I had a feeling you'd say that. All right, well, I have you, if you don't mind, Daniel. Because you're a college senior now, the debt deal, a huge concern right now among college students, college loans, interest rates. As a college senior, what are your thoughts and what's the talk among students there on your campus?

HERNANDEZ: Well, I actually work for a non-profit association and we've been really concerned during the debt ceiling talks about the reduction -- possible reduction of the Pell Grants, which is such an important measure for so many students around the country.

So there was just a lot of concern because tuition has gone up significantly in the last three years since we started college. So there's a lot of fear that our tuition has gone up, but our financial aid might get cut.

And we might have to rely more on private or other types of loans that really at the end of the day usually don't end up helping the students because they stay in debt for 5, 10, 15 or 20 years.

PHILLIPS: You got involved in all kinds of that because advocacy including the debt. Daniel Hernandez, thanks much for Skyping in. It was good to see you.

HERNANDEZ: Thanks so much for having me.

PHILLIPS: You bet. Our chief medical correspondent Dr. Sanjay Gupta joined me last hour and talked about Gifford's appearance as well. Here's what he had to say about her recovery.

(BEGIN VIDEO CLIP)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: If you just take it from a pure medical sense, you know, about 75 percent of people who have this type of injury don't survive at all. So, you know, the fact -- that was January 8th.

I think most of us who have seen this video by now seven months later almost, she's standing there, she's obviously conversing, interacting, recognizing her colleagues, giving them high fives, saying short sentences.

I also notice as well, you know, from a medical standpoint that, Kyra, you know, she's not moving the right side, her right arm really at all. It's all left sided waving to everyone.

She got some assistance, someone helping her, hold her waist, help her down the aisle. That's not unexpected, as well. You know, this is a left-sided brain injury, as you remember, Kyra. That affects not only your speech, your ability to express yourself, but also the strength on the right side of the body.

So it all makes sense, but, again, seven months almost later, this is pretty remarkable recovery. One of her rehab doctors said she's in the top 1 percent of people who recover from this.

(END VIDEO CLIP)

PHILLIPS: And we're being told 12:15 Eastern Time, the president expected to step out into the Rose Garden and make comments. We can only assume it's probably about the debt deal. We'll take that live 12:15 Eastern Time.

A bit of trouble for the queen of daytime talk, Oprah Winfrey getting sued. She's accused of stealing the phrase own your power. Details after the break. And also don't forget if you walk away from the TV, it doesn't mean you have to stop watching. You can get CNN streaming live on your phone, your computer or your iPad.

Check out cnn.com/video or just download the app and go. It's pretty simple. All you have to do is to go to cnn.com, hit the live TV, CNN NEWSROOM and boom, there you go, live streaming with us.

(COMMERCIAL BREAK)

PHILLIPS: All right, 12:15 Eastern Time, we are expecting the president of the United States to make live comments from the Rose Garden. We will take that live as soon as he steps up to the mic.

All right, Oprah Winfrey being sued. A woman claims that she stole the phrase own your power. A.J. Hammer following it for us. What are the details, A.J.?

A.J. HAMMER, HOST, "SHOWBIZ TONIGHT": Well, Kyra, Oprah has actually been hit with a lawsuit over this by a New Jersey woman who claims she ripped off that motto to use for her struggling cable network, OWN.

Now according to entertainmentweekly.com, Simone Kelly Brown is the founder something called "Own Your Power Communications Inc." filed the suit on Monday in New Jersey claiming that she came up with the "own your power" concept.

And while waiting for a trademark to come through, Winfrey's studio started using the acronym for its own gain. Now Kelly Brown is seeking unspecified damages for Winfrey's according to the lawsuit brazenly unlawful disregard for the existence and use of OTP's trademark.

Now a Harpo rep issued a statement that says the studio has not been served with any paperwork and therefore had no comment on its suit or allegations. A lot's been made of Oprah's struggling network, OWN.

Kyra, I actually think in the end it will do just fine, it's just getting its feet running off the ground here. But I don't think they need any legal headaches right about now.

PHILLIPS: Speaking of looking fine, not many movie stars past the age of 40 can beat out Elle McPherson or Jennifer Lopez.

HAMMER: Well, Helen Miran has done it, Kyra. Miran won an Oscar for portraying the queen. She's a real life royal title and now all are bowing to Helen Miran's regally hot body. How hot you asked?

The 66-year-old star did just beat out Elle McPherson. Elle is 48. Jennifer Lopez was beat out in this thing. Pippa Middleton, she won the title. Helen Miran grabbed it for body of the year.

That's according to survey of 2,000 people commissioned by a gym chain. Now Helen was the choice of nearly 18 percent of the people who took the survey while "Sports Illustrated" cover model Elle McPherson who's known as the body was picked by just barely 10 percent.

The runners up, Jennifer Lopez around 6 percent of those polled. Middleton 4 percent and I know you're curious about the guys, Kyra. The top three hottest bodies belonging to men, David Beckham, Daniel Craig, and Johnny Depp.

PHILLIPS: Why am I not surprised. All right, Kelsey Grammer not in the mix there, I assume, but he is looking to maybe change his profession, not posing but politics?

HAMMER: Yes, Alec Baldwin may be looking over his shoulder right about now because it looks like there's another actor eyeing a political career. Kelsey Grammer has just revealed that he might be jumping into the political ring.

Here's what he told "The New York Post." He said I look at my political aspirations as that last piece of my life where I hope to do something good for people and pay back a little."

Now Grammer is a rare conservative in Hollywood and he told the paper that he's got experience and he said that, and I love this, being an actor and a politician both require a narcissistic personality and a resilient ego.

So I guess, his capping to that money helps, too, of course. In fact, the paper calculates that Grammer who will be playing a fictional Chicago mayor in a TV drama called "The Boss This Fall" is worth about $100 million.

But there is plenty of dirty laundry to throw around if Kelsey does in fact run for office. He's current wife number four and we'll have to watch how his nasty custody battle with his ex, "Real Housewives of Beverly Hills" star Camille Grammer plays out in public.

In fact, "Showbiz Tonight" caught up with Camille and her "Real Housewives" pal Liza Vanderpump at an event last night and we asked her how she's handling all of this. Check it out.

(BEGIN VIDEO CLIP)

CAMILLE GRAMMER, "REAL HOUSEWIVES OF BEVERLY HILLS": Just making sure that my kids know that their mom loves them and they're --

LISA VANDERPUMP, "REAL HOUSEWIVES OF BEVERLY HILLS": It's a shame he hasn't handled it best. Camille has done her utmost to keep it civil and be a good mother and supportive and he hasn't reciprocated. I can say that.

(END VIDEO CLIP)

HAMMER: And thank you, I guess we'll have to wish Kelsey Grammer the best of luck as all that gets sorted out, Kyra.

PHILLIPS: All right, A.J., thanks. Well, if you want information on everything breaking in the entertainment world, A.J.'s always got it, every night "SHOWBIZ TONIGHT" 11:00 p.m. on HLN.

We want to remind you, we're waiting for that Senate vote on the debt ceiling at high noon. Then at 12:15, the president of the United States expected to come out to the Rose Garden and make a live statement. We'll take both live.

(COMMERCIAL BREAK)

PHILLIPS: OK, Capitol Hill, the clock is ticking. Lawmakers hoping for quick approval of the debt plan so it can arrive on the president's desk this afternoon.

His signature is all that stance between the federal government and a possible default. Wolf Blitzer in Washington. Wolf, we're less than two hours away from the vote.

Now we're learning the president will speak at 12:15. Sort of set the stage for us as we're moving up on high noon. Also I want to mention we've been listening to Orrin Hatch on the floor. Apparently, he's saying he is not going to vote for it. He's just too much heat from home, Wolf.

BLITZER: That's not a surprise because Orrin Hatch is going to almost certainly face a Republican primary challenge from Congressman Jason Chaffetz, a Tea Party supporter in Utah.

And that's setting up to be a real fierce battle between the long term Republican and Orrin Hatch in Utah and Jason Chaffetz is the much younger challenger. I suspect that's going to be quite a battle so that helps explain why Orrin Hatch as announced he's going to vote no on this deal.

Having said that I think there's going to be more than 60 votes in favor of it, well more than 60 votes in favor of it in the U.S. Senate, and as a result, it will pass and go to the president for his signature.

It will probably pass around noon as you're pointing out noon Eastern, Kyra, an hour and a half or so from now. And then at 12:15, about 15 minutes later, the White House has just announced the president will go to the Rose Garden and make a statement.

I don't know if they'll have all the paperwork ready. I suspect they won't for him to actually sign it, formal signing ceremony. They probability won't even do a formal signing ceremony. He's got to sign it before midnight tonight in order to ease up about $400 billion right away as far as debt relief is concerned.

That debt ceiling is supposed to expire at midnight tonight. But he'll make a statement welcoming it and then set the stage for going to Chicago tomorrow where he'll be celebrating his 50th birthday and doing a couple of Democratic party and presidential campaign fundraisers. So, I guess he'll be a little bit more at ease going to Chicago for that event.

PHILLIPS: Well, it depends on how you feel about turning 50. BLITZER: Well, they used to say -- I remember when Bill Clinton turned 60, he said remember, 60 is the new 40. And I suspect with President Obama, he's turning 50, and some might say 50 is the new 40 or whatever. In his case, given the enormous work he does, the enormous pressure he's under, the commander in chief, 50 may turn out to be in his case the new 60, if you will.

(LAUGHTER)

PHILLIPS: We've seen the gray hairs.

BLITZER: Have you seen that gray hair over the past two-and-a- half years, how he's aged?

PHILLIPS: Exactly!

BLIZTER: Look, he's under enormous pressure. I feel his pain, I must say.

PHILLIPS: But you're under no pressure, that's just a natural sophisticated gray for you.

BLITZER: No pressure compared to him. Compared to him, I'm under no pressure. And neither are you. although you have twins.

PHILLIPS: Yes, that true. That's a whole other story.

BLITZER: That's a lot of pressure.

PHILLIPS: All right, Wolf, we'll keep talking. Stay with us, please, because we want to keep talking about this as we hit the top of the hour.

Joe Johns on Capitol Hill. Joe, what's your sense of things right now?

JOE JOHNS, CNN SENIOR CORRESPONDENT: Well, we've still got quite a ways to go. About an hour and a half. This vote is scheduled for noon Eastern time.

Just watching the floor of the United States Senate, they got started about an hour ago with speeches. And you and Wolf talked a little bit about Senator Orrin Hatch of Utah facing a challenge from his right, announcing on the floor of the Senate that he will not vote for this because in his view, it is not a solution to America's spending problems.

A variety of other members out on the Senate floor talking -- Senator David Vitter of Louisiana, interestingly enough, did not give a speech, but he did announce his intentions to vote against this debt limit bill on Twitter just a little while ago, saying in his view it also doesn't go far enough.

Some Democrats out there, the refrain I've heard from several of them so far, is they don't like the bill very much, they see flaws in it. Nonetheless they will vote for it because the alternative, which will be default, is much worse in their view and would do a lot more harm to the country than this bill, which they also view as very flawed. Kyra?

PHILLIPS: All right. Joe Johns on the hill. Wolf Blitzer out of Washington.

We're also going bring in members of our "Political Buzz" panel. They'll weigh this on this. We'll be in rolling coverage from now until noon when that vote happens. Stay with us here on CNN. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: About 80 minutes away, waiting for the president to speak at 12:15 Eastern time. Just prior to that, we're expecting the vote as we're watching the debate going on the floor. Wolf Blitzer in Washington, watching it right along with us.

We'll stay in rolling coverage now starting from this point. Wolf and we're going to have our "Political Buzz" weigh in in just a second, but here we go. It's countdown time before high noon, and we'll get that vote. And let's talk about what we expect.

BLITZER: Well, the senators are now speaking. They're making their respective cases. Everyone has a little bit of time. The Democrats, the Republicans. It will wrap up, Mitch McConnell, the minority leader, the Republican leader, who was really instrumental behind the scenes, Kyra, at putting this deal together. Working very closely with his old friend Joe Biden, a former U.S. senator. Now, of course the vice president of the United States. They worked closely over the weekend and really did important work in getting the differences resolved.

Mitch McConnell will speak, and then Harry Reid, the majority leader, he will speak, at which point there will be a formal roll call in the Senate. Unlike the House of Representatives where it's electronic voting, in the Senate, as you know, it's a voice. Everyone says yea or I nay, yes or no, whatever. And then a count.

It will require a 60 vote threshold, but I think they have more than 60 votes between the Democrats and Republicans to get it passed. And the legislation will then go to the president for his signature. Even before he signs it, though, he's already announced -- the White House has just announced he'll be in the Rose Garden to make a statement welcoming this agreement.

And I think what the president will then try to do, Kyra, is move the subject forward. Yes, they've eased this crisis, but now the country has to move forward and deal with a really fragile economic recovery and most important, the creation of jobs.

We'll get a new jobs number Friday morning, a new jobs number for the month of July. And a lot of people are once again bracing for more bad news. Not a whole lot of jobs being created. This is an enormous problem, not only politically. Forget about the politics, Kyra. As you know, this is an enormous problem for millions of Americans who don't have a job, can't find a job, or do have a job that simply isn't paying them what they used to get paid. They don't have the benefits they used to get.

So, there are a lot of unhappy people, understanably so. The question is how do you turn that around, and that's what they'll be focusing on, as well. So I suspect what we'll hear from the president is he will try to move this subject forward now that this debt ceiling crisis has been resolved.

PHILLIPS: Okay, Wolf, stay with me. Usually at this time in our hour, we have our "Political Buzz," your rapid-fire look at the hottest political topics of the day. But now we're going to have more than three questions, more than 30 seconds each.

And probably, guys, we'll have about 80 minutes to let you just get crazy here. We've got Democratic strategist Robert Zimmerman, senior political columnist at "Newsweek" and "The Daily Beast" John Avalon. And Will Cain, CNN contributor and host of the Internet radio show "Cain and Table." Guys, thanks for mixing it up with us and playing here.

Will, let's start with you. What are you paying attention to?

WILL CAIN, CNN CONTRIBUTOR: You know, Kyra, I think it was interesting in your conversation with Joe Johns a minute ago, he said Orrin Hatch would be voting against this about a it's not a solution. I'd make three quick points. He's right. It's not a solution. Some senators that I really respect, like Tom Coburn, said it might not amount to much of anything. Not much of any cuts and not much towards deficit reduction.

But that being said, you don't get a solution when you owe one- half of one third of the government. So B, I would say, you must raise the debt ceiling. It's not an option not to raise the debt ceiling.

So, C, you take the best deal you can get. This looks like that's what it is.

PHILLIPS: Robert?

ROBERT ZIMMERMAN, DEMOCRATIC STRATEGIST: Orrin Hatch is not casting his vote because he's worried about a solution. He's worried about a primary. He remember what is happened to one of the most conservative members of the Senate, Senator Robert Bennett of Utah, who was defeated by a Tea Party challenger. And of course, Lisa Murkowski was defeated for renomination for the Republican nomination in the Senate in Alaska by a Tea Party challenge.

Now, individuals like Orrin Hatch, who has certainly got extraordinary conservative credentials. Richard Lugar, another distinguished conservative senator. Olympia Snowe, they're all threatened with Tea Party challenges. And that is truly what is defining our political agenda today. The challenge by extremes, and how that's really hijacking our system of government.

PHILLIPS: John Avlon?

JOHN AVLON, SENIOR COLUMNIST, "NEWSWEEK": Well, the one thing I'd add to Robert's analysis is one of the things yesterday's lopsided and refreshingly bipartisan vote in the House showed is that the senator can hold. Yes, you have organized extremes in both parties who oppose the solution even when the alternative was default. You had the Heritage Foundation and Club For Growth. You had MoveOn.org and other groups on the left opposing it, but the senator held. And that's what we see in the Senate today.

As long as you clear the 60-vote threshold, the folks voting no can do it for all sorts of political reasons. But they ignore, of course, the larger responsibility, which is to make sure that the nation avoids default and staves off the prospect of a downgrade.

And then we move to this commission, this special committee. And that's where the action will be. And we'll see if people are serious about dealing with the deficit and debt. There are a lot of good triggers in place -

ZIMMERMAN: John --

AVLON: There'd be great commissions like Bowles-Simpson and Gang of Six.

So, I just think, let's not lose sight of this: that while there's no question the role of the extremes has brought us to this brink because of hyperpartisanship, there's a good story to be told today because the senator did hold and we were able to reach a constructive compromise to avoid a default.

PHILLIPS: Go ahead, Robert.

ZIMMERMAN: The senator didn't hold. The senator went into hiding. Let's be realistic about the vote.

There was nothing here except a decision - really, it was an example of both parties failing our country. My party, the Democratic party, and the Republican party. Issues of entitlement reform were taken off the table. A longer-term solution, like reforming the tax code, was not addressed. Or in fact, more substantive cuts in the deficit were not addressed.

So, the reality is what Congress did and very frankly, what both parties did, was choose to really divert the major issues to another commission and avoid dealing with the substantive issues. And so, that's not a victory for the center, and it's certainly not a victory for our country.

PHILLIPS: All right, guys. We'll continue the discussion. Will, I'm going to let you weigh in. John, you as well. Hold your thoughts.

The debt ceiling vote expected at noon. We're about an hour 15 minutes away. Stay with CNN for rolling coverage. We'll be right back. (COMMERCIAL BREAK)

PHILLIPS: You're watching CNN rolling coverage now. The debt ceiling vote expected at high noon. We're doing our "Political Buzz" panel a little different way today. Democratic strategist Robert Zimmerman, senior political columnist at "Newsweek" and "The Daily Beast" John Avalon, and Will Cain, CNN contributor and host of the Internet radio show "Cain and Table."

Robert, you had the last word as we went into break. John, you were just about to jump in. But Will, I want to give you a second to come back first and then I'll let John weigh in.

CAIN: Let me see if I can tie a ribbon around these two guys' disagreement.

First of all, on one level, this is a victory for the center or for reasonable, rational people that understand you must raise the debt ceiling. That is nonnegotiable.

But on the other level, it's a complete failure on substantive issues, as Robert said. This isn't a victory for the center because there's no real substantive move toward deficit reduction. There was no touch on entitlements. So, who that was a victory for was for politicians. For politics in general.

PHILLIPS: It's interesting. John Avlon, you know, we had the poll numbers that came out in the past 45 minutes to an hour. CNN poll saying that more than 70 percent of Americans think our law makers were acting like spoiled children versus responsible adults.

AVLON: And I agree with that 77 percent of Americans. I mean, look. This was a totally dysfunctional process that was directly produced by the hyperpartisanship that the two parties have been playing with for a long time now. The fact that we have dodged this bullet and avoided default is a modest success.

The real deal is going to be whether or not this new bipartisan commission can actually deal with the real underlying issues of entitlement reform and tax reform, which can raise revenues by closing loopholes. That's the real challenge to come.

But the important thing is we did have a bipartisan vote, despite all the activist groups aligning against it on the left and right. So, that's a moment to appreciate.

But the real (INAUDBLE) is Gabby Giffords coming on the floor last night, yesterday afternoon, and that reset and remembrance of reality check, folks. We do have the responsibility to act like responsible adults. What divides us is not more important that what unites us, and that's been entirely forgotten these past several weeks.

PHILLIPS: Robert, final word.

ZIMMERMAN: That's the most important -- Gabby Giffords' presence on the floor was that one moment of unity and inspiration in this otherwise disgraceful process. And I think it was a very important reminder, not just to our members of Congress and the administration, but to all of us as citizens about what public service is all about. And the courage she showed and the complete leadership she demonstrated by being there in a very tough vote despite what she had to endure. It really is an example to all citizens about public service, and hopefully it helped reset how they're thinking.

PHILLIPS: I think we all can agree on that point. Robert, Will, John, thanks so much, guys.

Brianna Keilar live now at the White House. Once again, the president getting ready to speak at 12:15. Just after he signs that bill, the vote expected to go down at high noon. We think we know what's going to happen here.

Brianna, so what do you think? Will the president then get back to regular business?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: Oh, very much so. In fact, it's interesting today, Kyra, he has a couple events on his schedule throughout the day. One is a labor union event, meeting with the executive committee of the AFL-CIO. The other one, though, certainly that has much more mass appeal, is meeting with the crew of the space shuttle Endeavour. But it is sort of to note that both of these closed press. We're not actually going to be seeing any video, any pictures of these thing.

So, the White House trying to paint the picture that they want today is the president in the Rose Garden, punctuating this saga that has played out for months. And it's been so chaotic, and he's tried to really frame himself as the compromiser in chief and really work towards the middle and sort of attract those more independent voters, because let's be honest, this is going into the election season.

And so that's really the image they want is him in the Rose Garden following the Senate vote where the White House is confident that the Senate will pass this, Kyra.

PHILLIPS: Okay. And that vote expected at high noon. We'll bring our Wolf Blitzer back into the conversation after a quick break. It's 10 minutes before the hour.

(COMMERCIAL BREAK)

PHILLIPS: All right. In just over an hour from now, the Senate due to begin voting on the debt deal. Then at 12:15 Eastern, the president is due to speak in the White House Rose Garden. Wolf Blitzer, we're now moving in to rolling coverage here to bring folks up to date just before the 11:00 hour.

Shall we gaze into your crystal ball and talk about what we expect the president to say, and besides celebrating his 50th birthday, it's a big moment that's going to happen at high noon today.

BLITZER: He'll be going to his hometown of Chicago to celebrate that birthday. And also doing some political fundraising while he's in Chicago. I'm sure he'll do well with that.

You know, he wants to move on now. The country has been sick and tired of this whole debate over the debt ceiling whether you're on the left or whether you're on the right. They want to move on and the first and most important issue right now obviously is the economy. It's a very fragile recovery, an anemic recovery, if you believe all these numbers that are out there. And Friday, we'll get more evidence of that, we suspect, when the new jobs number for the month of July comes out. It's probably going to be pitiful, rather sad, as well.

So, they've got to do something. And the debate now is how do you do it? There isn't a whole lot of money to do another economic stimulus package, trying to pump that economic recovery anymore as far as government spending is concerned. They have to cut spending, they can't increase spending. The Federal Reserve apparently doesn't have a whole lot of opportunity to do that, either. They did that, they tried it, and there's a debate over how much it helped, how much it didn't help or whatever.

So right now, the debate will continue and it will heat up big time over how do you create jobs? What do you do? Republicans will say you have to cut spending, you have to eliminate a lot of government interference, restrictions in the way you deal with business. Small business got to get some enthusiasm right now.

There's a ton of money out there that these big corporations, these big companies have, Kyra, but they're reluctant right now to invest that money and create the kind of jobs that the country is desperately searching for right now. And that's going to be the debate. We're going to see it unfold in the weeks and months to come. How do you do it, how do you deal with this economic crisis?

PHILLIPS: Let's talk about the rating agencies, shall we, after a quick break? Wolf Blitzer, stay with me. That vote expected to happen on the Senate floor at high noon. We are in rolling coverage as we await the debt vote. We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: About an hour and four minutes away from the votethere in the Senate on the debt debate. Well, it's made a lot of Americans everyone more disgusted with politicians, if you look at the poll numbers that just ame out the last hour.

Jim Acosta talking about those as we watch the live picture from the floor. And it's a bit -- it looks like -- is that Biden - no, I mean is that Lieberman on the floor, Jim?

JIM ACOSTA, CNN CORRESPONDENT: That is Senator Joe Lieberman, and I guess we don't really know how he'll vote, although it's expected he'll vote yes. I would imagine he's going to vote yes with the Democratic majority.

So, the votes aren't finalized, I suppose until they actually happen, but you know, Kyra, if you're wondering and if Americans are wondering what their fellow Americans are feeling about this process that they just witnessed this last couple of weeks, they are not too happy. There's a new CNN/ORC poll that was released this morning at 10:00 a.m. It was conducted yesterday to get sort of an instant response from Americans on how they felt about this debt deal.

And look at this number. This is incredible. How have elected officials dealt with the debt ceiling? Have they acted like responsible adults? Seventeen percent. Have they acted like spoiled children? Seventy-seven percent of the people surveyed feel that elected members of Congress and the president, as well, have acted like spoiled children. So, not very good numbers there.

We also took a sampling -- or a look at how folks feel about the debt ceiling agreement overall. Forty-four percent approve, 52 percent disapprove.

And there are some new approval numbers for the president and members of Congress. Those numbers are not that good, as well. The president's approval number now at 45 percent, 52 percent disapproving. And then look at this number. The last number in terms of how Americans feel about Congress and how Congress is handling its job: 14 percent approve, 84 percent disapprove, if you'll pardon the chuckle there.

You'll be having politicians stepping forward to say that they wonder who those 14 percent are. Just about everybody out there is pretty disgusted with the process that they just witnessed over these last several weeks, Kyra.

PHILLIPS: Jim, thanks.

And once again, draw attention to the live picture that we're following as the debate continues right now on the floor, Jim. Joe Lieberman at the mike now.

And Marty Savidge, you're filling in for Suzanne Malveaux at the top of the hour here. We're expecting a vote come noon. Yes, many Americans disgusted. Also a lot of Americans just saying, OK, let's get it over already and move forward.

MARTIN SAVIDGE, CNN ANCHOR: Finally the end.

PHILLIPS: Yes, and know our fate.

SAVIDGE: Right. That's exactly what people are hoping, I think, at this point is let's get over and let's get beyond. And let's get going! Kyra, so very good to see you.