of people on earth and also mentioned commander kelly's wife, congresswoman good-bye who was shot in the head back in january. i'm don lemon at the cnn -- i was going to say world headquarters in atlanta. i'm in los angeles. our cnn center here tonight at 10:00 p.m. eastern, power and popularity and influence. why do so many men in a position of power have a history of cheating? it's a cnn newsroom special. sex, lies and arrogance coming up at 10:00 p.m. eastern. i'll see you back here in one hour from now. it's that's if we're still around. we're six seconds into it and still here. meantime, the situation room with wolf blitzer begins right now. the now former head of the international monetary fund gets bail as he faces a new indictment. plus, what's next for arnold schwarzenegger after admitting he had a child out of wedlock, a child he kept secret for years from his wife? and president obama says the u.s. must seize this moment of

opportunity in the middle east. this hour, his vision for the region and the controversial way he's pushing the israelis and the palestinians to make peace. we want to welcome viewers in the united states and around the world. i'm wolf blitzer. you're in "the situation room." the financial power broker who bailed out countries is being baled out himself as he awaits trial on charges he sexually assaulted a hotel maid. dominique strauss-kahn denies the allegations that many people find shocking. but the former head of the international monetary fund has been tied to previous allegations of sexual misconduct. our brian todd has been looking flow that. >> wolf, we've learned about one serious allegation that strauss-kahn wasn't even publicly linked to till his arrest in new york. and about another incident in his past where at the very least, his character and judgment came into serious question. his attorney and his wife

vigorously defend dominique strauss-kahn saying the imf's managing director is innocent of the charges. prosecutors suggest there may be a pattern to his alleged behavior. >> this information includes reports that he has in fact engaged in conduct similar to the conduct alleged with this complaint on at least one other occasion. >> reporter: he could be referring to an alleged incident that strauss-kahn's been linked to only since his arrest on saturday. french journalisttrist tran ben yoen says he tried to rape her nine years ago in paris apartment. his attorneys didn't respond to our inquiries on the allegation and one of them only mentioned it briefly in court. >> this is an individual with no criminal record. i can't respond to angations made in a foreign country that did not result in any criminal prosecution. >> tristan did not report the alleged incident to french police at the time. why not? her mother told a french tv station what she told her daughter at the time. >> there wasn't a rape strictly

speaking. there was an attack. for the rest of your life, you would have on your resume you know tristan bannon, that's the girl, who, well? >> french tv reporter and polean demo layer who wrote a profile of strauss-kahn in the washingtonian magazine says this about his wife, a popular tv figure in wife, american born ann sinclair. >> she is always beside him. she's really taking his arm wherever he goes. so yes, there have been probably some ups and downs but she has been by his side. >> even during affair he had a few years ago. strauss-kahn was investigated for what he later acknowledged was an improper relationship with a female employee. an independent investigation found that the relationship was consensual and there was no harassment, favoritism or any other abuse of power by him but he did later apologize to the imf, to his family and to the employee. i asked harassment attorney

debra katz about that case. does that is particular case have any relevance here. >> it's a different kind of standard. the fact that he engaged in a improper relationship with someone at work shows his character and poor judgment but it may not be relevant legally to this issue of sexual assault. >> but strauss-kahn may have other legal problems in france. the attorney for that young woman tristan bannon now says she's preparing documents against strauss-kahn. wolf? >> right, todd, thanks very much. let's dig deeper with jeffrey toobin. jeff, he's going to be living under house arrest in new york city. what's next legally in the case? >> well, the most thing that's next is the investigation has to proceed. there is a lot that needs to be looked at here. especially in terms of scientific forensic evidence. was there dna left at the crime scene? is there hair and fiber at the scene? what do the videos, the surveillance videos in that area show? what about the timecards of when

people went in and out of that hotel room? all that has to be looked at and experts from both sides have to have the opportunity to look at the evidence. it could take a long time. >> will his own attorneys be looking for a speedy trial rushing to trial or do they want this to drag on? >> delay, delay, delay. especially in a case like this be where passions are high. there's a lot of attention. and that's also why this bail decision is so important. because if he had been in rikers island for the months prior to trial, he would be telling his attorneys i can't stand this. get me to trial. now he's going to be in a relatively comfortable apartment which will certainly be cramped and frustrating him because he can't live his normal life. but he'll be eating normal food, sleeping in a normal bed, able to see people. he will not be pressing his lawyers to go as fast as he would be if he were in rikers island. >> he does have some excellent attorneys.

benjamin brafman is very well-known in new york. you know him. >> absolutely. if you were to ask people in the know in new york city, who's the best trial lawyer in new york city, i think ben brafman would get more votes than anyone else. now, it is still true that he is not undefeated. he is not more important in a case than the evidence is. but certainly he's going to have the best defense that strauss-kahn could have found anywhere. >> i think it's fair to say those new york prosecutors are pretty good as well. >> very good. and this case will get a lot of attention. this is the first really big case that is cyrus vance junior has had as the new relatively new manhattan district attorney. he knows that his reputation is going to rise and fall at least initially based on this case. so those prosecutors are going to have all the resources they need. >> he's the son of the former secretary of state, cyrus vance. here's a question, it goes to trial. let's say it goes to trial six months from now, a year from now, whenever it goes to trial in new york city. can he get a fair trial in new

york, a jury trial given all the publicity out there, the tabloids in new york? some of whom have already convicted him for all practical purposes? what's the argument in terms of keeping the trial in new york or moving it to another location? >> well, you know, we in the news media i think, we always have this question. everybody's following this so closely. how can he get a fair trial. when you actually get to jury selection, i think i am always surprised at how much people are not following a big case. and i think that will be particularly true in a case like this. if you were to ask most people in manhattan two weeks ago, who was dominique strauss-kahn, i think you would get 99 out of 100 saying they heard of him. now it would be less -- it would be more people would have heard of him but i still don't think this is a big obsession here in new york. so i don't think the picking a jury in this case will be all that difficult and i don't think this trial is going to be moved. >> we're going to watch it together with you, jeffrey, thanks very much.

jeffrey toobin, our senior legal analyst. dominique strauss-kahn is used to the good life. ivan watson takes us to the paris neighborhood where he lived. ♪ >> reporter: this is one of the most elite expensive neighborhoods in paris, a centuries old planned square in the heart of the city where the french author victor hugo once lived. it's also where dominique strauss-kahn maintained a paris residence right here in number 13. now, this expensive neighborhood couldn't offer more of a stark contrast to the bronx apartment building where the alleged victim of the assault in that new york hotel lives. dominique strauss-kahn had come under some criticism in the past. he's a leading member of the socialist party but he was photographed getting into an expensive porsche here in this neighborhood once leading some to criticize him calling him a

caviar socialist. the neighbors here, the owners of the boutiques and gal riz around here are very camera shy. but some of them tell cnn they would periodically see strauss-kahn and his wife ann sinclair getting in and out of chauffeured vehicles here but they were always polite, always say hi, how do you do. a new york judge has released strauss-kahn on $1 million in bail. he'll now live in a new york rented apartment under near constant surveillance wearing an electronic tracking device. it's likely to be many long months before he ever sees his home here in paris ever again. ivan watson, cnn, paris. >> a top contender for the republican presidential nomination stumbles right out of the gate. can newt gingrich recover from a very bad week? speaking of bad weeks, more details coming out about schwarzenegger swsz's extra marital affair and secret child.

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just days after launching his campaign, newt gingrich was forced to apologize for slamming a key republican budget plan. gingrich stumbled so badly coming out of the starting gate that many question whether he can even recover. joe johns is here following this uproar for us. what's the latest? >> wolf, the first few days and weeks are sensitive for campaigns. any candidate would love to get off on the right foot, set the right tone. but in the case of gingrich it has not happened so far. >> when it rains it pours. newt gingrich's first week in the race has been so bad by any measure when a gay activist known for political pranks sprinkled glitter on the former speaker and his wife, that old adage came to mind. >> stop the hate. stop anti-gay politics. >> while the left certainly has its beef with newt gingrich. the onslaught this week came from the right and he had no one

to blame but himself and his choice of words. in his 35th appearance on "meet the press," one question about a house proposal to turn medicare into a voucher program and gingrich's sharply worded answer made him the center of attention. just like when he was on capitol hill. >> i don't think right wing social engineering is any more desirable than left wing social engineering. i don't think imposing radical change from the right or left is a very good way for a free society to operate. >> one analyst told cnn he could have accomplished much the same thing without the edginess by just calling the house medicare over haul plan a good start that needs improvement, but accusing conservatives of social engineering was seen by some as over the top. the author of the proposal, house budget committee chairman paul ryan, fired back on the laura ingram show. >> with allies like that, who needs the left. >> so many conservatives recoiled by that midweek, gingrich had walked back his comments apologizing. >> i made a mistake and i called

paul ryan today, who's a very close personal friend and i said that. >> but if excessive talking is his biggest problem, plain excess apparently runs in the family. financial disclosure forms filed with the house of representatives indicated that as recently as five years ago, gingrich carried debt up to $500,000 with tiffany & company of new york, one of the premiere jewelers on the planet. he declined to answer questions about this on the fox television network tuesday. >> i'm not commenting on stuff like that. i am perfectly happy to talk about what we need to do for america and to help americans. but i frankly don't want to play the gotcha games in washington. >> given all this out this week, the first week of his campaign, the question is whether gingrich's candidacy is already done for. >> i say it's on life support. his fund-raising numbers are not where he wants them to be. but the key for him here is while he represents the past is to show why he's relevant to the future political discussion. >> reporter: the gingrich people

seem to be complaining that the media's pile ong here and his campaign press secretary rick tyler put out a statement saying gingrich will not be intimidated by what he calls the political elite. those relies familiar phrases. >> we've heard it many times before. gloria borger is here. gloria, can he get beyond this really bad start? >> he's really trying to. he's been on an apology tour this week, called up congressman ryan. spoke with rush limbaugh. and don't forget, people very often have bad starts to their campaign. remember joe biden? he had a terrible start to his campaign. first week out of the box, called barack obama clean and articulate. caused him a lot of trouble. >> didn't do all that well in the race for the democratic nomination. >> guess what, he's vice president right now. so did recover. >> republicans have said also look at john mccain. he was pronounced all but dead in his campaign and went on to

get the nomination. didn't win the presidency. so it's probable that newt gingrich gets back on his feet. >> the difficulty is how he misread the republican constituency, the tea party constituency. he always when he became speaker of the house in the 90s and engineered the republican takeover, he always knew where the party regulars were, where the base was. people i talked to this week say what's surprising is that he didn't seem to know how important this ryan budgeting is to the republican base. >> and this notion of blaming the mainstream elite media for his problems. >> why not. >> you've heard that many times before. >> and it works a lot of times, sarah palin did it. a bunch of politicians resort to that refrain when they get themselves in trouble. but the question is always in the facts. what was it that you actually said, where did you say it. when you look at this situation on "meet the press," newt gingrich had been on that program an 35 times previous. he knows the deal.

it wasn't a setup. it was a simple straightforward question and newt gingrich gave his answer. >> all on videotape too. >> right, but it's also republicans who were criticizing newt gingrich. they saw the show and knew what they saw. the other republicans weren't coming out and saying you know what, newt, somebody played a game of gotcha with you. it was the republicans saying no way. >> joe, you pointed out this half a million dollar credit line he had at tiffanies and he didn't want to talk about it. if you're running for president of the united states, you have to assume that everything in your personal, financial, political life is open. you have to talk about it. you can't just say i'm not talking about it. >> it's impossible. the cat's out of the bag. when you're running for president, everything is fair game. he knows that. he was raked over the coals in a lot of ways when he was on capitol hill. people got into his business. go pac is a good example of it. so speaker gingrich nose the deal. a lot of people are asking whether he's trying to play politics. '90s style when we're in 2011

and when things move so fast with twitter and facebook and like that, you have to be really quick on your toes. >> we've invited him several times to come here in "the situation room." we hope he'll eventually accept our invitation. quickly, mitch daniels is he the hope right now a lot of the establishment republicans have as far as a nominee is concerned? >> a lot of establishment republicans are reaching out to him. tim pawlenty is going to announce his candidacy on monday. but mitch daniels is one of those fiscal conservatives whose kind of a wonk. been in washington, gets the budget issues. been a successful governor. so lots of republicans are saying he understands the spending issues better than anyone else. and he might be able to be a good person to go toe to toe with barack obama. so you have to say. haley barbour is pushing. he was once considered a possible candidate, the governor of mississippi, he dropped out. >> there's also a little bit of suspicion on the conservative side about daniels particularly because he called for a truce on

social issues so the country could get its financial matters in order. this is a guy who's going to have to answer questions like that before conservatives sort of anoint him as the front runner. >> joe and gloria, thanks very much. we now know the identity, yes the identity of the woman who arnold schwarzenegger secretly fathered a child with. what we're learning. stand by. and president obama deliver amajor speech on u.s. relations with the arab world, but does it really represent the start of what he calls a new chapter in regional diplomacy? lots of news happening right here in "the situation room." building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible.

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a lawyer for arnold schwarzenegger says the former california governor is putting his movie comeback on hold to focus on personal matters.

that announcement came as we learned the identity of the woman with whom he fathered a child while married to maria shriver. cnn's thelma gutierrez is standing by with more in los angeles. >> wolf, the woman was first identified by "the new york times" as 50-year-old mildred patricia bane na, a native of guantanamo and worked for the schwarzeneggers for 20 years. she recently moved to bakersfield, california, and neighbors in the upscale subdivision told us she openly talked about working for the family and about her desire to retire to bakersfield with her son. now, since the scandal broke, she has kept a low profile and so has the former governor of california. >> on the day that maria shriver made a grand appearance at one of the final episodes of oprah, her high profile husband was laying low trying to stay away from reporters. a source close to former california governor arnold

schwarzenegger told cnn the fallout from the revelation that he fathered a child outside of his marriage has been very hard for him, that he realizes the terrible mistake he made and has a lot of work to do to repair his relationship with his family. the power couple who were married for 25 years, have four children. since the scandal broke, two of them have posted their feelings on twitter. 17-year-old patrick schwarzenegger who also goes by shriver on facebook and twitter tweeted some days you feel like expletive. some days you want to quit and just be normal for a bit. yet, i love my family till death to dew his part. his sister followed with her own tweet saying this is definitely not easy but i appreciate your love and support as i begin to heal and move forward in my life. i will always love my family. psychologist michelle goalen says coping with infidelity is devastating for children. >> is apparent, we are not only modeling to our children what it

means to be a mother and a father, but a husband and wife. >> the source close to schwarzenegger says the action star talked to his children the night before he publicly admitted he fathered a child. and apologized to them. the source says he also talked to maria and told them that he wants to make sure that his family has everything they need to get through this. even space. according to the source, schwarzenegger said he would do whatever they want him to do to allow them time to heal. now, the scandal has also been difficult on the adult daughter of mildred bane na. jacqui rosa told cnn her mother is a great woman and the most caring person you could ever hope to know. as for the 14-year-old boy, neighbors in bakersfield told us he's intelligent, polite and respectful and that their hearts go out to him too. >> thanks very much, thelma gutierrez from los angeles. president obama delivers his most important speech on the

middle east in two years, hoping to use the revolution sweeping the arab world as i an launching pad for new efforts at an israeli/palestinian peace process. plus the taliban in pakistan is seeking opportunity in the death of bin laden. ♪ intellichoice proclaims that lexus has the best overall value of any brand. ♪ and j.d. power and associates ranks lexus the highest in customer satisfaction. no wonder more people have chosen lexus over any other luxury brand 11 years in a row. see your lexus dealer.

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obama addressing the changes sweeping the arab world and announcing a new chapter in middle east diplomacy. our white house correspondent brianna keiler is joining us. set the scene for us. tell us what the president said and did. >> wolf, he was trying to explain the events of the arab spring, give some contempt and assert that the u.s. supports any move toward democracy while also trying to explain the administration's seemingly contradictory responses to different countries where there have been uprisings and most importantly he said the region should capitalize on the events in the arab spring and push for

a return to the peace process. >> after months of protests in the middle east and north africa and much criticism that the u.s. has been harsh with some countries cracking down on protesters while staying silent on others, president obama tried to make clear the u.s. stands firmly with those calling for democracy. >> we have the chance to show that america values the dignity of the street vendor in tunisia more than the raw power of the dictator. >> the president said the u.s. supports its ally bahrain but demanded they allow protesters to assemble peacefully. >> you can't have a real dialogue when parts of the peaceful opposition are in jail. >> and he used his strongest language yet for syria's president stopping short of calling for bashar al assad to step down. >> he can lead that transition or get out of the way. >> the u.s. will try to strengthen egypt and tunisia economically and create jobs for young people frustrated with a lack of opportunity.

>> america's support for democracy will therefore be based on insuring financial stability, promoting reform, and integrating competitive markets with each other and the global economy. we're going to start with tunisia and see egypt. >> the headline came when he said the arab spring should be a jumpoff for a renewed peace process going further than any president before him with this pronouncement. >> we believe the borders of israeli and palestinian should be based on the 1967 lines with mutually agreed swaps. so that will secure and recognized borders are established for both states. >> a monumental undertaking explaining the u.s. policy on the as the region experiences more change than it has in decades and says erin miller, a former middle east peace negotiator, it was a so-so performance. >> it's not a home run. and it's not a bunch of stumble bumbles. it's a serious effort to try to

harmonize american values and interests. >> and that's because american values are at odds in many of these countries with the short-term interests of the u.s. politically and economically. and miller added as this was the president's opportunity to inject some predictability into a policy that has been criticized is a bit whack a mole, his words, wolf. he thought the president did a decent job considering how difficult the task was. >> tough tough assignment. breianna, thank you. let's get reaction to the president's speech as well as the fallout from the u.s. raid that killed osama bin laden. joining us republican congressman mike rogers. he's the chairman of the house intelligence committee. congressman, thanks very much for coming in. >> wolf, thanks for having me. >> quick reaction to president obama saying that the negotiations between the israelis and the palestinians should begin on the '67 lines in his phrase with mutually agreed swaps. is he right on that? >> that's a complicated thing. it's good that we're starting to

put pressure on the palestinians to give a little bit, for the israelis to get back into the game of negotiation. doing it in public i think is a very bad idea. i saw today that the israelis reacted saying that is a nonstarter. so we've already locked ourselves out of negotiations. when you get that technical, i argue that's the thing you leave on the table when the doors close and the media steps outside so you can have a pretty tough dialogue amongst those parties. when you try to negotiate those tough details in public, i think it spells disaster for getting this thing under way. >> talk about "uss/pakistani relations right now. the cooperation or lack of cooperation between the u.s. and pakistani intelligence services, is it getting better three weeks after bin laden is dead or getting worse? >> still lots of challenges. and to some degree, the embarrassment has and the bravado has not allowed us to move forward. you know, they named a cia case

officer who happened to be the chief of state. he's the station chief there. bad form. they knew it. they did it on purpose. >> it's the second time they did that. >> that's the second time they've done it. they held a u.s. diplomat for 42 days not that long ago. >> a cia contractor. >> a u.s. diplomat for 42 days who had all the rights of immunity. they also interrogated him. so it's the most confusing relationship. they are fair weather friends at best. but we're going to have to work through it. i know there's lots of calls in congress, we should cut the funding and be angry at the pakistanis. nobody's more angry than i am on most days. at the same time, they help us with logistics for the effort in the war in afghanistan. they have sent troops into the tribal areas and taken thousands of casualties. they have helped us arrest al qaeda operatives to one degree or another and taliban operatives in the settled areas of pakistan. so it is a real mixed bag. i would walk very slow down the path to cut them off.

>> i want to get more on that in a moment. quick question. what's the scariest thing that you've learned from that so-called treasure trove of documents, information taken from bin laden's compound. >> i think the good news, if there is good news in some of that information, is that there wasn't -- there's no smoking gun there that says this is going to happen, this horrible event well under way, can't stop it. none of that is true. >> have they finished reviewing anything? >> no, that's one thing people have to realize. some of it's coded and in darry and pashtu and arabic. there's a series of things they'll have to do to be able to interpret all of the information. but from what i've seen it, clearly show he was conducting operational advantagement of al qaeda where he could. he was given guidance where there were disingredients among factions. he would try to mediate those. that was still happening, a little different than analysts believed. >> he was working on a computer

sending out thumb drives, sending out instructions and he was deeply involved in this al qaeda operation? >> absolutely. the one thing that struck me so far is how focused he was on telling al qaeda elements around the world remember, target america first. >> here's what surprised me. he had no security, really no serious weapons there. why? >> well, a higher profile would have been a lot more attention. think about it, he had a family around him that invited other family members' children into play. they didn't see osama bin laden. they didn't see his family. didn't see his wife. but they tried to make it as normal as you possibly can having a high security compound in the middle of abottabad. >> is the u.s. with or without the help of pakistan any closer to getting anwar al awlaki, the american born cleric in yemen right now, runs al qaeda in the arabian peninsula? i know the u.s. tried to kill him with a drone strike a couple

weeks ago. almost got him. >> can't talk of the specific details but when you look at his threat and why that -- it's a unique threat when it comes to al qaeda, he has a complete understanding of american culture. he. >> he was born in new mexico. >> born in new mexico, lived in virginia for a period of time. lived in the south for a period of time. he understands america and has used that to his advantage to try to recruit people who have those blue american passports. >> so is the u.s. any closer to finding him, do you think? >> he's under a lot of pressure, il say that. >> legally the u.s. can kill him from your perspective. he's an american citizen. would it be okay to kill him as it was okay to kill bin laden? >> he renounced his citizenship and he has declared war on the united states, his own words. i think we are in the full right of the of united states to bring him to justice just the way we brought in bin laden. >> what about and war -- ayman al zawahiri, the number two al qaeda leader, the egyptian whose

obviously been in hiding we believe in pakistan? any closer to finding him? >> what happens when something like this, we know this through the history of how al qaeda will respond. when we get other senior leaders or senior logisticians or finance people, they change their security protocols. this was a major impact on them. he was an inspirational leader and operational leader. >> bin lad. >> and when that happened, they're going to change. so zawahiri doesn't know if the last note that he was writing had his name and address on it or not. >> do you think the pakistanis or at least elements of the pakistani intelligence service or military know where he is? >> well, i would guess that somebody has information that's valuable to us to find mr. zawahiri if he's in pakistan, in afghanistan, in yemen, in the maghreb. >> because the pakistanis help the u.s. finding him, that would go a long way in improving that relationship.

>> it would be i think a big healer in our relationship. and again, i hope we take this opportunity to say it was embarrassing, it was bad. now this is the time to step up. more transparency, more access, share more information. let's move forward and use this as an opportunity to strengthen our relationship, not weaken it. >> the al qaeda organization named another egyptian like ayman al zawahiri saif al add del to be their interim leader. what do we know about this guy? >> all of the folks they have talked about have some inspirational qualities. they've been out talking, they've been preaching the message, if you will. have some operational experience, are completely trusted. we're not convinced yet that they have solidified on any particular person that is going to assume that role. and we also would not be -- i would be at least suspect of anyone early on knowing that they're going to go through

these changes and are they trying to divert people's attention or not. the good news is our intelligence services have been going after a whole slew of targets all over the world at the same time. so the whole apparatus wasn't going after osama bin laden. it was going after all of the senior leaders as we know them all at the same time. we're close on some, not so close on others. >> there are reports now that the department of homeland security and the fbi are warning cities, mid level cities, other cities that al qaeda may be thinking of attacking what are described as oil and natural gas targets inside the united states. have you heard about this? >> you know, what it is is there's aspirational events and operational events. aspirational event is when a group of their leadership would sit around the table and say these are things we think could make an impact, if we could do this kind of terrorist attack, this would move our mission forward. and so those aren't things that have been turned operational. they haven't said go do this or

that. you remember the train information that got out was a little bit blown out of proportion. they had said yes, we would like to do trains and this is one way we could do it, but we have no operational information. we have known for some time and they have done it in other parts of the world where they have attacked energy sources for, it could be tractor-trailers carrying fuel or actually depots. we know they have an interest in it. i think what you're seeing is we need to take extra precautions. there's still interest in it. make sure your security is right. >> congressman, thanks for coming in, congressman mike rogers chairman of the house intelligence committee. the taliban striking with deadly force in pakistan as militanttants see a new opportunity with the death of osama bin laden. plus, why some experts see gold as the answer to the crushing u.s. debt. ♪ ooh-oo, child

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the death of osama bin laden has forced al qaedaed to scramble to put a new leadership in place but it's also seen as an opportunity by pakistan's taliban. cnn's stan grant has this story from islamabad. >> this man is the second most powerful taliban leader in pakistan. from his hideout near the afghan border, he directs a bloody campaign that has killed thousands of pakistanis. while he is now speaking for the first time since the death of al qaeda leader osama bin laden more than two weeks ago. he says "the great lead ser gone but his fight lives on." we love his mission, which is not dependent on any one man he says. we loved him because he was

courageously fighting against america and its allies. we have to continue because we love his mission even more than the man. he gave this interview just days ago at a secret location in pakistan's northern tribal region. a gun strategically placed beside him but no identifying features to giveaway his location. cnn obtained the video through an intermediary. the taliban commander says his enemies don't just i be include the united states and its allies, that anyone who in his words, would for them. that includes pakistan. in the koran, god says to fight the infidels until they are finished, he says, not just the infidels but also their lackies. he says america and its allies have not been able to defeat the taliban in afghanistan, and he is determined to continue his reign of terror on his side of the border in pakistan. if all these countries together could not stand up to our

guerrilla war in afghanistan, i am sure that pakistan, which is weak and lacking in technology, cannot defeat us, he says. since bin laden's death, the taliban has struck with lethal force. last week it launched a double suicide attack at this military base in northern pakistan more than 0 recruits were killed. there have been other attacks and shoot-outs since. pakistan's interior minister says pakistanis are paying in blood to defeat the taliban, and he rejects any claim the military is not up to the fight. >> we are not weak. they know it, but don't go by the statement after enemy. >> reporter: but the taliban does sense vulnerability. they know the relationship between the u.s. and pakistan is at a new low. the strategy right now is to push home any advantage it has and test the resolve of the pakistani military. stan grant, cnn, islamabad. >> the u.s. has hit its debt ceiling.

now some experts are looking to gold and saying it's time to start selling. plus, the stroll no one wants to take but everyone wants to see. jeanne moos looks at some memorabler. walks. that's right. it runs flash. so unlike some tablets we could mention, you get the best of the internet - not just part of it. ♪ flash, aah-ah ♪ flash, aah-ah

the day the treasury

department has been warning would come has arrived. this week, in fact. the u.s. hit the debt ceiling set by congress, freezing the government's power to borrow money. so what should the government do now? some experts think they have the golden answer. cnn's mary snow has more. >> reporter: as the united states plowed past its debt ceiling, the treasury secretary manured to allow the government to keep borrowing until august. congress is nowhere near an agreement to raise the debt limit. to buy time for spending cuts, some conservative economists think the u.s. should sell assets, like land in the west leased if are farming and ranching and the tennessee valley authority. chris edwards of the think tank, the cato institute, which advocates limited government thinks the u.s. should even sell its nearly $400 billion worth of gold. >> i think selling gold would show that congress and the white house are willing to consider

new ideas to pay down the debt. that shows progress and a reformed mindedness, i think, that will calm financial markets. >> reporter: the treasury department thinks the opposite would happen. the treasury department's assistance secretary for financial markets writes on the blog, a fire sale of the nation's gold to meet payment obligations would undercut confidence in the united states both here and abroad and would be extremely destabilizing to the world financial system. even if the u.s. sold its gold, it would only buy a few months' time since the u.s. borrows about $125 billion a month. and a former economic adviser in the carter administration says if the u.s. sold gold at any other time to cash in on high gold prices it wouldn't be a big deal. but selling it now would send a bad signal. >> if people are going to sell assets to try to finance their consumption, like the ongoing budget deficit we have, then i think it's a terrible idea. sort of the notion that you can sell off the family jewels to

continue to spend the way you are for a while longer. >> reporter: and the treasury department says if the u.s. wanted to sell its gold, there would need to be public input and oversight. and it wouldn't be tied to the debt issue. mary snow, cnn, new york. >> hot shots and jeanne moos, those are next. building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible.

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here's a look at some hot shots. in libya, a boy's face is painted in the colors of the rebel tag in a children's fair in benghazi. in thailand, monks lead prayers calling for piece in their country. queen elizabeth wears one of her famous halts on a visit to a horse farm. and in england, check it out. sheep weight to be judged at a spring livestock competition. hot shots, pictures coming in from around the world. the perp walk, for many suspects it's a walk of shame. cnn's jeanne moos shows us the hall of fame. >> reporter: it's a scene, seen by americans all the time. >> nicholas, did you strangle your girlfriend? >> why did you do it? >> i'm innocent. i didn't do it. >> reporter: but you tend not to look innocent, even when no one shouts a single incriminating question. it's what's called. >> the perp walk. >> reporter: perp, as in

perpetrator. and some in france are outraged over the treatment of the head of the imf, accused of attempted rape. france's former culture minister called it a lynching, that provoked horror and aroused disgust. french law bars the media from showing suspects in handcuffs before they're convicted. some say the perp walk goes against the presumption of innocence. >> it is done some would say to humiliate the suspect and they give off an aura of guilt. >> reporter: though sometimes the aura doesn't fit the alleged crime from the smiling, accused somali pirate to the jfk terror plot suspect. others bend down or cover up to conceal their identity. suspects use anything that's handy and we do mean anything to hide from the cameras during a perp walk. amy fisher, the long island local leet that used her own hair to keep her face out of sight.

the perp walk is a perennial. always popping up, even as cameramen pedalling backwards or falling down, and suspects are falling forward. and every once in a while you get an apparent confession. >> something came over me. >> do you regret it? >> of course i do. no matter what he did, you know, you can't justify that. >> reporter: he's been charged with using an ax to murder a man. sometimes a perp walk leads to perpetual cursing. >> you [ bleep ], get [ bleep ]. you lucky i've got these [ bleep ] or i'd smack you [ bleep ]. >> reporter: and finally the armed robber who managed to escape midperp walk. it happened in staten island last year. the suspect took off down the street with police in hot pursuit. they recaptured him quickly. check out how he slipped out of a loose handcuff to make his break. if only they could cuff