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Fixing America's Economy; Interview With John Chambers; HPV Vaccine Controversy, Underwear Bomber Trial; Interview With Donald Trump

Aired October 10, 2011 - 19:00   ET


ERIN BURNETT, HOST: Yes we do and as you can imagine, John, he doesn't mince words on what he thinks about anything. Here's Donald Trump on leaders in America.


UNIDENTIFIED MALE: We are very, very stupid. Our leaders are very, very stupid people.


BURNETT: As promised, he says what he thinks. That's coming up later this hour. Then to the "Frontline" in Kansas City, Missouri, it's been almost a week since baby Lisa Irwin (ph) disappeared from her home. The police still have no suspects.

Plus, the underwear bomber's trial starts tomorrow and the "Bottom Line" of the economy. We're going to talk about what we have to do to fix the problems and create jobs.

Let's go OUTFRONT.

Hello I'm Erin Burnett OUTFRONT tonight. Good to be with you on a Monday and we have a little bit of a ray of sunshine. The Dow was up 330 points today, nearly three percent. That actually makes the first six trading days of October the best in 19 years. Wow. Well why?

The "Bottom Line" is this. Good news and a potential bailout for banks in Europe. Leaders there are pledging to unveil a debt crisis solution this month. Now governments on both sides of the Atlantic are really at the core of the roller coaster ride and the pain we felt over the past few months. Government is a big part of why U.S. stocks are down 12 percent from their highs earlier this year, losses that have hit every 401 (k) and IRA in this country.

Several things need to happen and frankly absolutely can happen to fix the problem. It is so fixable. European government leaders have to follow-through in a debt solution. And here in the U.S. Congress if it stopped acting like D's and R's with negative rhetoric against each other and started fighting for the country, it would get a whole better because it's really all about confidence. It's that simple. Our whole economy boils down to it. Confidence that tomorrow will be better than today and that the American system works. That will help hiring and hiring means more taxes. So there is an amazing statistic we pulled for you today. Forty percent of our entire deficit would go away if the economy started growing just at capacity. That is just because of increasing tax receipts, economic growth, 40 percent of our deficit poof.

We begin tonight with an on the ground view of when hiring will start. OUTFRONT has an inside tool -- we call it the "Strike Team". We told you about it last week, but we will tell you about it again. It's a group of 20 CEOs, investors and entrepreneurs who report what they see on the ground to us. And I picked them because they all want to see the economy grow.

John Chambers is the CEO of Dow component Cisco Systems and he joins us tonight -- John, good to have you with us. And let's just start with the big question out there.


BURNETT: It feels like a recession to most of America. The big question is whether we'll go into a formal double dip. Of our "Strike Team" 70 percent of people said no, a recession is not inevitable right now. What do you think?

CHAMBERS: Well I agree with that 70 percent. I think it depends on how our political leaders and business leaders react to the challenges in front of us. If you look at what we see on a global basis and Erin, I'm not an economist, but I do get to talk to almost major business and government leader in the world. You are seeing the economy slow. The issues you talked about on Europe are very true.

Northern Europe doing well, Central Europe doing OK, Southern Europe having some real challenges. Asia Pacific a little bit mix between Japan and India, but China, Australia, New Zealand doing well. Here in the U.S., the employers when we talked to them are not planning major hiring, but at the same time they are spending money on capital and when they spend on money on technology and small business and big business it means that they think the economy is probably going to do better as you move forward. Not great guns, but perhaps better than some people anticipate.

BURNETT: And perhaps a little bit more positive than many people would expect. But let me ask you about the question. Just the frustration that out there, a lot of it pointed at corporate America from the left as well as the right, and it really comes down to the jobs problem. So let's just put it to you at Cisco --


BURNETT: -- $4.5 billion in the United States. You've had to lay off 7,000 people this year and people watching say all right, you want to build the economy. You've got this cash. Why aren't you using it to hire? CHAMBERS: Sure -- more than fair question, Erin. If you look at what Cisco has done since I've been here at Cisco the last 20 years, we grew from 400 to 70,000 people. We've shared that with our shareholders, with our employees and with our customers in a very effective way. Most of the time we've been in hiring mode, and if you look out over the next 12 months we probably will be again, assuming there is not a major surprise in the economy. What would help us do that is the majority of our finances are outside the U.S. and not here. And so even though we are a pretty big company, about $4 billion is what we need for our normal activity in the United States. So if we perhaps (INAUDIBLE) more creatively at the tax policy and to encourage hiring America, we'd love to be a part of that.

BURNETT: And let's get to those numbers because 4.5 billion is what you've got. You say that's what you need to do your regular business. You do have 45 billion in all and as you point out most of that is outside the United States and I know you are advocating getting a break on that. As you say, other countries provide. Would you in exchange if you got a low tax rate on bringing that money home, what's called repatriation support getting rid of all the other tax loopholes in exchange as the president has proposed.

CHAMBERS: Well, Erin, I think the key take away question here is that I'm an American. I want to create jobs in America. We are one of the few large high tech companies that have been in existence for 25 years, still have the majority of our jobs in America and I want to do that in the future. Secondly, we are the only country in the world that when you pay taxes on your profits outside your country that don't bring it back at zero percent or two percent taxes. So I think we are missing an opportunity here to create jobs in America and one that every other developed country in the world has already taken advantage of to encourage.

So do I think that we can do something like a national infrastructure fund that with the money you bring back pay a nominal amount of taxes and invest it in building (INAUDIBLE) roads and highways -- absolutely. Do I have a problem assuming the economy grows and Cisco is doing well creating jobs -- absolutely. I don't have a problem with that. But remember you could bring back $1 trillion which was more of the entire stimulus package was in terms of back to the U.S. from funds overseas.

BURNETT: And let me ask you, John, because a lot of people have come out, they've looked at the last time we gave this tax break and overall it didn't create jobs in America. Can you come out tonight and say if it happened, you are going to create how many jobs at Cisco in the United States.

CHAMBERS: Well the last time we created quite a few thousand jobs in the year following that, I think if you actually look at the GDP growth, the GDP grew very well the next two to three years following the package that came back inside. And the unemployment went from 5.5 percent unemployment to 4.5 percent unemployment. But Erin, in and of itself is not the silver bullet. You've got to move on policies. America is an amazingly innovative country. We have the capability to work hard as a country. We've got to pull government and business and the American citizens together to lead the rest of the world I think out of this economic slowdown. I think we can do it as a nation.

BURNETT: All right, well John Chambers thank you very much. Well John Chambers was just elected by the readers of the Washington newspaper "Politico" as someone who should run as an independent for president. Now others on the "Politico" list included Mayor Michael Bloomberg, Hillary Clinton, David Petraeus and Colin Powell. Condoleezza Rice and others were on there as well.

It's not a surprise that "Politico" played the parlor game of another candidate because this is me. In the latest New Hampshire poll, only 14 percent of likely primary voters say they are quote, "very satisfied with the current candidate roster".

Joining us from our Washington Bureau is Kevin Madden, Republican strategist, Democratic strategist Jamal Simmons also in D.C. and here in the studio great to finally meet him in person, Major Garrett, correspondent for "The National Journal" -- great to have all of you with us. We appreciate it. Major, let me start with you. I was pretty surprised. Only 14 percent are very satisfied. Why?

MAJOR GARRETT, CORRESPONDENT, NATIONAL JOURNAL: Well Republicans keep looking at this field and saying yes, there is Romney. He's been the constant, but can't there be somebody else. Isn't there a better alternative to Mitt Romney? And so far there have been flash point alternatives who last for a month or two.

Michele Bachmann, Rick Perry and then plenty have looked and not run in the race at all. So Mitt Romney stays. The field is set, but it's set in a way that dissatisfies Republican primary voters, at least until the voting starts. When the voting starts and if Romney starts winning, winning has the tendency as anyone will tell you, Jamal or Kevin will tell you, winning tends to build momentum. So for now they are dissatisfied, but if Romney breaks out, that satisfaction will start coming.

BURNETT: The satisfaction will come. Jamal, let me ask you a question. You know Hillary Clinton being on that list just got me wondering is it a commentary on how the Republicans and Democrats are seen so polarized right now that the main place for reason is among the independents. Hillary Clinton is not an independent. She is a Democrat.

JAMAL SIMMONS, DEMOCRATIC STRATEGIST: Yes, but you know Hillary Clinton has had the great fortune of being out of politics for the 2.5 to three years, so everywhere she goes she is seen as a nonpartisan secretary of state, focused on America's future around the world and that always tends to buoy any person's poll numbers. Colin Powell is on the list. He had the same benefit. Condi Rice is on that list. Even though they're all partisans, they don't really have partisan profile in their public day-to-day work habits.

BURNETT: Kevin Madden, I want to just show a poll today, this one by "The Washington Post"/Bloomberg and I love the season of all these polls because there's so much (INAUDIBLE) everyday. So it asks which Republican candidate would do the most to improve the economy among Republican likely voters. Mitt Romney 22 percent; Cain 20 percent; the next closest Perry at 12 percent. That's just part of the Herman Cain phenomenon and he's surging in all the voting polls as well. Do you think Mitt Romney is worried about Herman Cain?

KEVIN MADDEN, REPUBLICAN STRATEGIST: Look, worrying in a campaign is for those without a plan. If you're worried that means you didn't put together the organization, the infrastructure and the message that you're going to need to win. So I think Boston is very confident that over the long ark of this campaign and that's the thing that we have to remember is that a lot of these polls are just snapshots right now in time.

What we have to look at is the long term trends. And what we have seen in all these polls that we've looked at tonight is the long- term trend has shown a lot of volatility. But the constant has been that Governor Romney has actually held a very good level of good market share of voter support. So I think if you can continue to consolidate that support and then go out and grow it as the volatility of the campaign and all of the contests of the early primary states. They take place that's where this campaign I think is built. It built a strategy around it is the actual contest where actual voters decide.

SIMMONS: Erin, Erin if I (INAUDIBLE) I will give Kevin and the Romney team an incredible amount of credit right here. Because the one thing you see out of Mitt Romney it's such a disciplined campaign. I mean whether it was Sarah Palin or Michele Bachmann or Rick Perry or now Herman Cain they seem to be very focused on their job and from the Obama campaign in 2008, they had the same kind of disciplined focus. They had a message and they never veered from it.


SIMMONS: I think he can be beaten, Mitt Romney, but I just think as a primary campaign, they are doing a good job.

BURNETT: Final word to Major.

GARRETT: Two quick points about Mitt Romney, his biggest advantage is he's run before. His biggest weakness, he has run before. He's too familiar in a time when people want change, OK.

BURNETT: Very well said.

GARRETT: The other thing about that poll Rick Perry came in second on most damage to the economy if he was the Republican nominee, right behind Michele Bachmann. Even though Rick Perry runs as someone who's created jobs right now. That's all about immigration. For Republican primary voters they translate concerns about immigration to hurting the economy, that issue is killing Rick Perry. He's got to turn it around.

BURNETT: All right. Well it's going to be very interesting to see what he says tomorrow night. Thanks so much to all three of you, look forward to seeing you all again very soon.

UNIDENTIFIED MALE: Great to be with you.

BURNETT: And OUTFRONT next California Governor Jerry Brown today signed a bill that allows girls over 12 to get an HPV vaccine without their parents' consent. The underwear bomber's trial starts tomorrow and baby Lisa disappearing from her Kansas City home a week ago. We'll find out what the authorities are doing to find her later on this hour.


BURNETT: The number tonight, 3.15. That's how many millions of dollars Massachusetts' Democratic Senate-candidate Elizabeth Warren has raised for her campaign in the third quarter. If she wins the Democratic nomination, she will face incumbent Republican Scott Brown who raised 1.55 million in the third quarter. Those are very big numbers especially when you compare them to the presidential race.

GOP presidential-candidate Rick Santorum raised $582,000 in the second quarter, the most recent he is released, five times more in one quarter for a Senate race. It's big money to run for office. California Governor Jerry Brown signed a bill into law that allows girls 12 and up to get an HPV vaccine without their parent's consent. Now public health officials say the new law will help protect young people from sexually transmitted disease. Opponents say it undermines a parent's right to be involved in a child's medical decision.

Paul Callen is a legal analyst. Shannon Smith-Crowley is with the American Congress of OB-GYNs in California and Shannon I wanted to start with you. I guess people are very torn on this. The more people I talk to who go ahead and vaccinate their kids for everything and somehow feel a little bit more torn on this one. Does this encourage promiscuity or not in your view?

SHANNON SMITH-CROWLEY, AMERICAN CONGRESS OF OB-GYNS: Well we absolutely think that it does not encourage promiscuity. In fact it has to be given well in advance at the beginning of sexual activity and it also creates a great opportunity when the young person is in the physician's office to have a very in-depth discussion about safe sex and about abstinence. And abstinence is the only 100 percent way of preventing STDs and pregnancy.

BURNETT: So, but Paul, I'm just -- I'm confused here. It does seem awfully young. Children don't have at that point the right to make other decisions. Their parents do. Even in California, right, you can't get a tattoo at that age without your parent's consent, so where does this come from legally?

PAUL CALLEN, LEGAL ANALYST: You know this is -- a lot of people are extremely disturbed by this law, because of the 12-thing. I mean a girl -- a 12-year-old girl can go into a doctor's office, get the shot without telling her parents. No parental consent. I don't know where California is coming to do this because if for instance you are in a ski accident and your child broke an arm, was in the emergency room, they'd try to call up the parents to get permission to put it in a cast. And now they are saying that the parents can't decide whether to weigh the risk against the benefit of the shot? Normally we believe in informed consent with respect to medical treatment. So why can't parents have informed consent about their kid's medical treatment? I don't get it. I think they have gone over a line here in California.

BURNETT: Shannon, how do you respond to that?

SMITH-CROWLEY: Well actually this is expanding on current law from 1964 that allows minors to be treated for sexually transmitted diseases. And it now has also joined other states such as Arkansas and Alabama. I think there's a total now will be 11 states and the District of Columbia that will allow this. We are actually having 12 because it's trying to capture a wide net (ph) (INAUDIBLE) consistent with current law, but we expect that most of this will apply to 16, 17-year-olds that can already drive themselves to the doctor's office and their parents may already agree for them to do -- take the HPV vaccine but they are just not physically there to provide consent.

CALLEN: Shannon, the law says 12 years old, a 12-year-old child can do this without parental consent. I mean what is the fear here? Is there really fear that a parent won't be smart enough to know that this is a good thing or a bad thing for the child? This is not an abortion. This is not a contraceptive. This is a vaccination. Some people think vaccinations shouldn't be given. Not everybody gets a flu vaccination even though statistically it's a wise thing to do. Why should the American people be robbed of the ability to make a decision about their own children's health care?

SMITH-CROWLEY: Well actually what we're really hoping is that 11 and 12-year-olds are vaccinated when they get all of the other vaccinations that they get at that age and there's -- that's a decision that has been made with the parent. But actually I think if there is a 12-year-old who really thinks that she is at risk and needs this vaccine, we are happy that she is going to the physician's office because that raises a red flag.


SMITH-CROWLEY: Something is going on --

BURNETT: All right. Well thank you very much.

SMITH-CROWLEY: -- with a 12-year-old.

BURNETT: Shannon -- Shannon and Paul, thank you very much and everyone let us know what you think. We're going to be talking a whole lot more about this issue of vaccines in general, the HPV and the age of children specifically. You can always find us on our Facebook page OUTFRONT or on Twitter.

Well still OUTFRONT Herman Cain, a leading member -- leading a lot of polls, but still not getting respect, we can't resist telling you why. And Donald Trump speaks his mind.

(COMMERCIAL BREAK) BURNETT: The trial of the man accused of trying to detonate an underwear bomb on a plane headed to Detroit in 2009, the Christmas Day bombing starts tomorrow. It is a story we're going to be covering every step of the way here on OUTFRONT and Sunny Hostin is here to help us get OUTFRONT of the trial.

Sunny, Umar Abdulmutallab has been representing himself which is a really crucial part of this and a curious part. What does that mean if it comes to trial?

SUNNY HOSTIN, FORMER FEDERAL PROSECTOR: Well you know there's an old adage that says he who defends himself has a fool for a client. And really that's the gist of it, no one should represent themselves in a court of law, it's like a surgeon performing surgery. But this is no typical prose defendant. He has stand by council Anthony Chambers (ph), a very, very well regarded federal defense attorney and I am told at this point that Mr. Chambers will be giving opening statements tomorrow and he will also be grilling most of the government witnesses.

Although we do know that the defendant is sort of driving the bus. He is making the ultimate decision. This will be almost a hybrid case because he will be co-counsel with someone else, not necessarily trying himself. And that is a good place for him to be because the evidence in this case against him is rather significant.

BURNETT: All right and let me ask you about the -- you know there has been some stories saying this should be a slam dunk of a trial. There were people on the plane. Everyone saw him doing what he was doing. How could the government not win this case? Is it a slam dunk?

HOSTIN: No case is a slam dunk and I say this all the time. I mean just look at Casey Anthony, right, I think the prosecution there thought that that was a slam dunk. When you have 12 jurors from different backgrounds that know nothing about a case, you don't know what's going to happen in the jury room. But let me say this. The evidence is very strong against this defendant.

We have a confession in this case. There's also a videotape of his description of his suicide mission before going into the United States. And there are the remnants of the bomb and his underwear. So certainly there is significant evidence. I think what is going to be really interesting about this trial is that we know the Obama administration for sometime has wanted to try terror cases on U.S. soil. So this is almost a test case --


HOSTIN: -- for that and that is why so many people, Erin are going to be very, very interested in this case and watching it so very closely.

BURNETT: All right, well Sunny, thank you and we will be watching it. I remember getting on a plane right after that to go to over to Nigeria that weekend in Christmas of 2009 and we will be covering it every step of the way here OUTFRONT.

Well up next, the military power of one country that is rising to challenge America. Then we will be sitting down with Donald Trump and where is baby Lisa? We examine what the authorities are doing to find her OUTFRONT (INAUDIBLE).


BURNETT: Start the second half of our show with stories we care about where we focus on our own reporting, made the calls for the "OutFront Five".

Number one, Chinese military power, a new report just published by the Rand Corporation warned a future conflict with China. OUTFRONT spoke to the reports author who told us if America's economy becomes too dependent on China, the Chinese will build up their military and America will be hard pressed to do anything about it, said quote, "China could gradually achieve superiority in the Western Pacific over the next 30 years."

Number two, the worst violence in Egypt since the Mubarak regime fell. At least 25 dead, 272 injured in attacks over the weekend. The violence occurred between Egyptian security forces and Coptic Christian protesters.

Now, the violence is hurting jobs in Egypt. The market there has lost nearly half its value this year. A businessman in Cairo tells OUTFRONT that few businesses are investing it all and many people feel aren't going to work.

And number three, seven people saved after treading water for 20 hours off the Florida Keys. A group of eight had gone fishing, the thunderstorm capsized their boat. Good Samaritan Dave Jensen discovered a group of them yesterday. And OUTFRONT spoke to him today. He told us they were shaken and freezing and in shock, but they weren't in terrible health once he gave them water. He said they were then speaking clearly. A real miracle there.

And U.S. market surging today. European leaders pledging to have a solution to the debt crisis by the end of the month. We'll all believe it when we see it, but for today, the Dow up 330 points, its biggest one-day move since August 11th.

And tomorrow by the way is the start of American earnings season. Paul Hickey of Bespoke Investment Group tells OUTFRONT earnings will send stocks higher. He's looking for an 8 percent gain from now through the end of the year.

Well, it's been 66 days since the U.S. lost its top credit rating. What are we doing to get it back?

Donald Trump, conservative, showman, businessman -- he has a lot to say about where the country is headed and who should lead it. At one point, his name was on all the list for Republican candidates.

I asked him why he got out. (BEGIN VIDEOTAPE)

DONALD TRUMP, CHAIRMAN, THE TRUMP ORGANIZATION: Well, you know, a number of things happened. Number one, NBC is driving me crazy like please, please. You know, it's hard to give up a top rated television show, not because of the money. The money is a lot. But you now have your own primetime television and, you know, for the privilege of being spat at for the next year and a half, OK?

BURNETT: It's pretty tough from that perspective.

TRUMP: Well, you understand that. OK. So, you know, but that's not the reason.

When Paul Ryan came out with his plan knocking Medicare, he shouldn't have done it, big mistake. A bad poker player. He could have kept his mouth shut and elections were already lost because of that, including a very popular Republican woman from Buffalo where there was no chance for the Republican to lose and she lost very easily. That was the because of Paul Ryan's plan, very bad thing.

The lame duck session was the disaster. I mean, they allowed Obama to rise like a Phoenix. He was gone, and they allowed him to rise.

When they did those things -- so when I see that and I see all these things, I said, you know what? I'm very, very discouraged with what they are doing. But I'm meeting with the individual people and, you know, I'm seeing some real signs of life. I have to tell you.

And I met with Herman last week. He's a very impressive guy and a really nice guy.

I met with Mitt two weeks ago and I'll you, you know, I was less of a Mitt Romney fan until I met him. And when you meet him, he's a completely different guy and a terrific guy. I never met him prior to this. And, you know, I was very, very impressed.

So, they have to get the word out. I mean -- and they are trying to get the word out. I think it's very early to be relying on polls. I never have seen polls that changed so quickly. One guy is on top, another is.


TRUMP: I mean, look at Michele Bachmann, who I've also met with, who was a very lovely woman. I mean, she was through the roof three weeks ago. And now, she is having a hard time.

So, the polls fluctuate very greatly and I think it's very early and I'm not sure it means that much at this point.

BURNETT: When are you making your decision in terms of who to endorse?

TRUMP: Probably sometime prior to the primary. I think I owe it to a lot of people. Thousands of people are writing letters asking me who I'm going to endorse. And I think at sometime prior to -- I think, honestly I have an obligation to do it sometime prior to the primaries.

BURNETT: Like now? Like right here, right now?

TRUMP: No, but maybe it will be on your show. It's a little bit soon.


BURNETT: Do you think -- Chris Christie talked about the Republican Party needing to go back to being a big tent party. And one of the frustrations that some people have is that it's been become a smaller tent party in part because of the focus on social issues. And just this week, you have this whole discussion over are Mormons Christians and, you know, all of a sudden religion comes into it again.

Do you have frustrations that the Republican Party still ends up defining itself by abortion stance or gay marriage? Or --

TRUMP: Well, I think that was much more true four years ago than it is today and it's still true to a certain extent. But I think it's now about jobs and the economy. I really believe that even people pretty strong on the social issues are really looking. And that's why I hated to see what's going on about the whole Mormon thing, because Mitt Romney is a good man. I think it's unfair how that came out and the way it came out.

And I happened to be Presbyterian. I happened to be Protestant and I understand and I know a lot of the people who are even saying negative things, and they like me a lot and I like them a lot, but I think it was unfair.

BURNETT: So, in terms of the policies where we are right now, I want to ask you, obviously, talk about China, and I know that you favor a currency readjustment which is a big issue in Washington. But Americans are trying to understand it.

So, I wanted to ask to you this way. So, if we adjust the currency, if China adjusts their currency, a couple of negative things might happen in the U.S. Prices at Wal-Mart may go up and the U.S. is still just barely passed by China in terms of manufacturing.

So, make the case for why now, why they adjust?

TRUMP: I make the case very simply, it's jobs. Instead of buying from China, we'll be making the gadgets and the toys to Baron Trump and everybody else that buys their children toys. They'll be made in Alabama and Iowa and lots of other places.

This country can be turned around so fast. You know, it's funny, I have a club in Washington. It was on the Potomac River. It's great. But it wasn't really properly run, et cetera, et cetera, but I fixed it and made it really great. The clubhouse was clean and painted and beautiful and carpets. And a member came up and I never heard it this way. And the club -- it went from being, you know, good club and everything else, but just not in good shape, to being a phenomenal club where you can eat of the floors.

And a member came up. I was there this weekend, and said, this is what the country needs. The country has to be taken care of the way you just took care of this big club. It's sort of an interesting thing. I never thought of it that way, but it's true.

Our bridges are falling down, our roads are potholes are all over the place. I mean, you look at the major highways and they look like third world country highways.

BURNETT: They do. They do. Even here in New York City, some of the streets.

TRUMP: You go to places now like China where they're building many George Washington Bridges. We think the George Washington Bridge is like a little bridge compared to the things they are doing. And they are doing it with our money.

You know, if we have to cutoff China, China would go into the worst depression of any country in the history of the world. We have all the power, they don't have the power. We have the power. But we don't have people smart enough to realize that. And we have tremendous power.

So, just getting back to your question, if we ever aligned China properly in terms of the manipulation of the currency and instead of buying two toys, you buy one toy and that's OK.

BURNETT: Right, because it will cost a little bit more to make them here, but that's the choice you make as Americans.

TRUMP: You know, I mean, I have a child upstairs who's got nine airplanes. So, instead of nine, he'll three that will be made in this country, and I like that. And he wouldn't know the difference.

BURNETT: No, he wouldn't. Who needs nine airplanes, right?

TRUMP: He doesn't need it. They are stacked up in a corner. Who needs it? They will be made in this country.

The good news, we have tremendous potential if we had a guy who was intelligent with common sense -- those two things. Brain power and common sense.

You know the other thing, Erin, we have the greatest business people in the world.


TRUMP: And I'd say, you used to say businessman, but businessmen and women --


TRUMP: -- in the world. I know them. A lot of them are nice and that's people, and some are nice, but some are horrible human beings and who cares.

But we don't use them to negotiate deals with China and all of these countries. We don't use them. We use diplomats. We use people that don't even have a clue and we lose it every single front. So, that has to stop.

We have tremendous potential. This country has tremendous potential if only we'd use it.


BURNETT: Donald Trump talks about leadership in America, really harsh words coming up.

Also, you're going to hear him talk about the deal he would have made with Libya. Trust us, it is OUTFRONT.

But now, let's check in with John King. He is doing double or triple shifts tonight, in for Anderson.

What do you got on "A.C. 360," John?

JOHN KING, CNN HOST: The Donald is always interesting, Erin. I'll keep listening. We are keeping them honest ahead tonight at "360" at 8:00 p.m. Eastern. It's the new Egypt, the one fought for in the Arab spring uprising starting to look disturbingly like the old Egypt run by dictator Hosni Mubarak.

Take a look at these pictures from a protest this past weekend, the worst violence in the country since Mubarak was forced out in February. Now, look at these pictures. Bodies in the morgue packed in ice. This is how the night ended for at least 25 protesters, hundreds more were wounded.

Yet, state TV urged, quote, "Honest Egyptians" to take to the streets to protect the soldiers. Despite promises of reform, is the new Egypt really the same old Egypt? We're keeping them honest.

Also, the important results of a "360" commission study on bullying which find that those being bullied are often bullying others at the same time. It's called social combat.

Much more on that at the top of the hour, Erin.

BURNETT: All right. Thanks very much, John King.

Well, Donald Trump, up next. Some very harsh words for leaders in America and a ray of sunshine today for America 401(k)s. Will Europe blow it?


BURNETT: We do this at the same time every night. It's our "Outer Circle" here we reach out to our sources around the world.

And tonight, we begin in Libya where troops are closing in on Gadhafi's hometown.

Nic Robertson is in Tripoli.

And, Nic, they say they are in the final stages, so what's the hold up now?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Erin, National Transitional Council fighters say they made important gains over the weekend. They're taking control of a university, a conference center and a hospital where Gadhafi loyalists are holding out. But it's the hospital that perhaps gives us the strongest clue of how this fight is going. Seventeen loyalists found hiding there. That's an indication just a small, handful of Gadhafi fighters were able to hold up a large number of rebels for a long period of time.

So, the fighting is still going on. They say they'll win soon, but from what we've seen, it could take quite some time more -- Erin.

BURNETT: All right. Nic Robertson, thank you.

And now to Syria where fighting throughout the nation has killed 30 people, 17 soldiers among them.

Arwa Damon is in Beirut tonight -- Arwa.

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Well, Erin, when it comes to those particular casualties, the Syrian observatory for human rights reported that they were caused due to clashes that erupted between members of the Syrian security forces and a group of individuals believe to have defected from the military. But at the same time, there is something of a reluctant conversation amongst activists about the need to perhaps begin arming themselves for self defense -- Erin.

BURNETT: All right. Arwa, thank you.

And now to London, German Chancellor Angela Merkel and French President Nicolas Sarkozy said they've got to deal to fix Europe's banking crisis. It sends stocks in the U.S. surging.

Richard Quest is in London.

So, Richard, what's in the deal and I guess is what really matters, will all the 15 countries in the Euro zone sign on?

RICHARD QUEST, HOST, "QUEST MEANS BUSINESS": Erin, we most certainly don't know what the detail of the plan actually is, although we got a very good idea of what it must include. It must reinvent Greece, deal with the sovereign debt crisis. It must also recapitalize the banks, get gross going, and if there's any room left, set up new governance for Europe. It's such a big plan that frankly getting all the other 15 members of the Eurozone to agree will be a Herculean task, Erin.

BURNETT: All right. Richard Quest, who knows everything there is to know about Europe from London.

More now with Donald Trump. I asked him about the millionaire's tax that the CBO has said would fund the president's jobs bill. I asked Trump whether he'd be willing to pay it and whether it's class warfare or not.


TRUMP: It is a class warfare thing, but I will say this -- there are certain groups, as an example, oil companies.

Now, you know, I'm a big negative fan -- even though many of them are tenants of my buildings but I happen to believe that OPEC and the oil companies are in absolutely cahoots. Why are we giving subsidies to oil companies is beyond me. Now, the Republicans are going to say, oh, that's terrible that you say that. That's terrible.

I love you, Republicans, and I'm more conservative than all of you. But for ExxonMobil to be getting subsidies and to be paying not that much in tax relatively speaking I think is ridiculous, OK?

BURNETT: And what about individuals? What about people like you?


TRUMP: I think this. I think this. You know, I don't mind paying more tax, but I think -- and I'm not talking about myself.

We have a terrible economy and more importantly, it's the word fragile is a good word. We have a very fragile economy. I think if you start playing around with tax increases, I really think it could lead to a disastrous result.

It's a bad time to raise taxes on people. And people aren't doing that well. Even rich people, I mean, some rich people are doing well. But it's a bad time to be raising taxes on people that provide work.

If you could this economy turn around whatever anyone is paying right now, first of all, they're paying much more than. They will make more of them. They'll pay more.

But the thing that really solves the problem is a good economy.

But you can have a good economy when China and when OPEC and when virtually every country in the world is ripping us when we are fighting wars for trillions and trillions of dollars that we shouldn't be fighting, you can't do that. It's got to stop.

And I said something like in Libya. You go to Libya -- I would have said, OK, fellas, they came to see us, right? They didn't win. The rebels, the so-called rebels, they didn't win the war. We are bombing the hell out of these people and then they walk in.

OK. But I said, take over -- make sure when they come and they ask for your support, say absolutely, for the next 25 years, we want 50 percent of your oil. You know what they would have said, how about 75 percent? We'll give you that, too, all right?

But now, you can't go back because, you know, they're so-called won the war. We spent billions of dollars, and they won the war. Why didn't we get oil? Why didn't we get oil for what we did?

We made it possible. I mean, we knocked out Gadhafi. Nobody else knocked him out. We knocked him out through NATO and we are NATO.


TRUMP: Why didn't we get paid for that? We are very, very stupid. Our leaders are very, very stupid people. Now did I say that diplomatically?


BURNETT: Donald doesn't like to say anything diplomatically. Of course, he was considering running for the Republican nomination and he is a Republican.

And now, speaking of Republicans, we've got a story we can't resist.

Herman Cain won the Florida straw poll and he's leading in a number of states. And yet a recent "Washington Post" headline called him the Republican flavor of the month. "TIME" magazine asked, Herman Cain, flash in the pan or serious candidate.

We couldn't resist asking the question, what is it about Herman that some people seem to not like? We realized unlike the other candidates, Herman Cain has a mustache. This country elected an interesting array of men with facial hair over the years, but even our most famous bearded president, Abraham Lincoln, was elected clean- shaven. Listen, it's more than 100 years since our last president even had facial hair. And these days, candidates have started shaving when they decide to enter politics and grow beards when they lose. Yes.

Because as Homer Simpson once told Ned Flanders --


HOMER SIMPSON: Makes you look like you have got something to hide.


HOMER SIMPSON: People are talking. Lots of people. (END VIDEO CLIP)

BURNETT: Herman Cain might be the man to that around, because in case you have not noticed, facial hair is really hot right now. Fashion magazines are full of bearded male models, male, yes, of course. There are TV shows like "Whisker Wars" and on Saturday, the beard and mustache championships were held. Oh, yes, they were.

Now, beards mean money apparently. In a recent survey by Global Hunters Securities, 29 gas exploration and production companies had a senior executive with a mustache. And those executives delivered twice the growth achieved by the ones that didn't have facial hair. Hmm.

What a survey. Still not convinced? Well, the American Mustache Institute -- because yes, there is one -- has declared President Obama's hometown of Chicago is the most mustache-friendly city in America.

Good news for the president? Not quite because guess who's up for the institute's Robert Goulet Memorial Award? That would be Herman Cain, who will be our guest on Thursday. And we can assure you, we are sure his mustache will also be OUTFRONT. Sorry. We just couldn't resist.

Well, Baby Lisa has been missing for almost a week. After multiple searches, there are still no suspects. The FBI and police are stumped OUTFRONT. We go live to Kansas City.


BURNETT: It's been almost a week now since Baby Lisa Irwin disappeared from her Kansas City, Missouri home. Her father Jeremy Irwin says he returned from work early last Tuesday morning and found the front door unlocked and his 10-month-old daughter gone. After multiple searches for the child, there are really no suspects.

The FBI and police are stumped on this one.

Our very own Ed Lavandera has been keeping and covering this story for us from Kansas City.

Ed, I know you've been there through the weekend. Investigators actually did a re-enactment. What is the latest you can tell us?

ED LAVANDERA, CNN CORRESPONDENT: Well, this was interesting. Yesterday afternoon, you can see the house there behind me, that window has been the center and the focus of this investigation is the one there on the right edge of the house. And late yesterday afternoon, investigators came out here and tried to re-enact this story that was one of the initial stories put out by police that someone had perhaps gone into the home through that window, and they tried, officers, kind of to re-create to see if this was even possible to do, what it would have taken to get this done in the overnight hours between Monday and Tuesday of last week. It was interesting to kind of watch because you saw some of the officers quite frankly kind of struggling to get in there. At one point, the window falls down on them. They needed some help to get into the window as well.

So, it was interesting. All of this done in full display here of the neighborhood in the middle of this Sunday afternoon. So, it was interesting to watch them do that.

They've been out here once again. They continue to search through the lawn and the area. A lot of attention being paid to the creek area in the back of the house as well over the last few days., Erin.

BURNETT: All right. Ed, stay with us, if you would.

I want to bring in a man who knows what it's like to have his home invaded and his child taken because it happened to him. Marc Klaas lived through it in 1993. His 12-year-old daughter Polly was kidnapped and later found murdered.

Since then, he's devoted his entire life to preventing crimes against children.

And, Marc, we appreciate you taking the time to be with us.

Let me just ask you first now that we're six, seven days away from the last time Lisa was seen. From your experience dealing with families who have gone through this over the past two decades, it is likely that she was abducted? We're going to find her alive? What do you think?

MARC KLAAS, DAUGHTER KIDNAPPED AND MURDERED IN 1983: Well, Erin, first of all, thanks for having me on your show and congratulations.

I -- I think the farther you get away from these types of situation, certainly the less your chance of getting the child recovered alive are. And, in fact, our tag line in our foundation is that a mile a minute is how fast your child can disappear. So, presumably, that child could be anywhere in the world.

I suspect, though, that the child is probably still somewhere in the local area, whether she is alive or dead.

BURNETT: And that's something that you found over the years, I believe, right? That usually these are local situations with someone who perhaps was familiar or knew the child as opposed to a random abduction from someone far away?

KLAAS: Well, in fact, what we find, Erin, is that 80 percent of all abductions are family centric. That is some member of the family is involved in the disappearance of the child. And absolutely, almost every kidnapping with certain exceptions, many of the high profile ones including Polly's, are local events, pure and simple.

BURNETT: What do you think about the parents issue here, Marc? I want to ask this, and then I want to bring Ed in on that as well.

KLAAS: Sure.

BURNETT: The parents obviously were cooperating, and then were not cooperating. We talked to the police about that on Friday on this show. Now they're cooperating again. Do you -- is that -- I don't know -- hesitancy to cooperate normal or is this something that still seems very strange?

KLAAS: Well, I think this is very instructive, not only for this family but anybody else who might go through this.

Here's the problem. You have to cooperate fully. As I mentioned, most of these cases are family centric. Therefore, law enforcement is going to continue to ask you questions until you're able to eliminate yourself from suspicion and they can then move on to the next possibilities.

Now, I know that it can be very, very difficult to do that, but you should never put your own personal needs and feelings ahead of the desperate search for your child. In other words, you've got policemen, you've got FBIs, you've got search and rescue professionals out there combing the grounds, going through landfills, and you as a parent decide you don't want to answer any more questions for a while -- it's a big red flag. And, as Mr. Irwin found out, it could have had very serious repercussions.

BURNETT: All right. Well, Marc, thank you very much.

Ed, quickly, before we go, what happens from here and is it fair to say the family is fully cooperating now from the perspective of the police?

LAVANDERA: We haven't heard any differently, Erin, from police. Since they told us Saturday night that the parents had returned, they met with them Saturday night and we presume Sunday as well. We haven't heard any differently so far today. We tried to ask if, you know, if the dynamics had changed if there was an attorney in the room or anything like that and police wouldn't say.

BURNETT: All right. Well, Ed Lavandera, thank you very much. Ed covering that story for us here in Kansas City, Missouri.

All right. John King is in for Anderson cooper tonight. It's going to be a great show. And "A.C. 360" starts in one second.