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CNN Live Today

Countdown to Handover; Scott Peterson Murder Trial; Pain at the Pump; Divided We Fight

Aired June 01, 2004 - 11:00   ET

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

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


CAROL COSTELLO, CNN ANCHOR: It is 11:00 a.m. on the East Coast, 8:00 a.m. in the west. From the CNN Center in Atlanta, I'm Carol Costello in for Daryn Kagan today.
Up first, major developments in Iraq, just 29 days until the handover of power. President Bush speaks out -- speaks out this hour about the new government taking shape. Earlier today, it was announced that Sheikh Ghazi al-Yawar had been appointed president after Adnan Pachachi said no thanks.

And car bombs exploded before and after the announcement of the new government. The bombings in Baghdad and near Baji killed 14 and wounded 46.

President Bush shows his support for Iraq's new interim government during remarks from the Rose Garden this hour.

Kathleen Koch at the White House with a preview for us.

Hello, Kathleen.

KATHLEEN KOCH, CNN WHITE HOUSE CORRESPONDENT: Well, at this point, Carol, what we're hearing is a very positive spin from the U.S. administration reacting to the new interim government in Iraq. As you mentioned, the president, this morning, made a speech to the -- to a national conference on faith-based initiatives across town. He is on his way back to the White House shortly and will speak to the media at 11:30, giving his impression of this new government.

But clearly, the choice of Sheikh Ghazi al-Yawar as the new president of the interim government is certainly problematic for the United States. In televised interviews recently, he criticized the American presence in Iraq, attributed the worsening conditions there to blunders by the U.S. military. And in his brief acceptance speech this morning, he thanked the United Nations and did not mention the U.S. or the coalition.

Still, the administration says this morning it's pleased with this new government, calling it a terrific list and saying that it is a positive step for the future of a free Iraq.

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: I think the Iraqi people will now see that their destiny is in the hands of their own leaders. The occupation, as they know it, is coming to an end in that their political leaders are in charge. We are there to help their political leaders restore control. We are there to help build up Iraqi security forces so that increasingly Iraqi security forces can take on the challenge of providing security for the people of Iraq and defeating the terrorists and former regime fighters who are still trying to take the country backwards.

(END VIDEO CLIP)

KOCH: National Security Adviser Condoleezza Rice briefed reporters here at this White House this morning. And she said, among other things, that the administration does not believe that the continuing presence of coalition -- U.S. and coalition forces in Iraq will be an issue.

Rice said that even all the members in the new Iraqi government have to admit that Iraq right now does not have its own forces, enough forces to maintain law and order in the country. Rice also, though, did predict that we could see an uptick in violence in Iraq as insurgents there try to test the will of this new government.

And rice said that that is why it is so important that the U.S. get through the United Nations Security Council a resolution that will solidify international support in Iraq and then lay the way for the future democracy there.

And what the U.S. is pushing for is a resolution that would allow coalition forces to act -- take -- quote -- "all necessary measures to maintain security and prevent terrorism" there. However, U.S. allies, France, Germany, Russia, are pushing for something that would give much more sovereignty and control to this new government.

Back to you.

COSTELLO: Kathleen Koch live from the White House.

President Bush, by the way, will talk about the new Iraqi interim government shortly in an appearance from the Rose Garden that has been set for 11:30 Eastern this morning. CNN will bring you his comments live.

There are reportedly more cases of Iraqi prisoner abuse. According to "The Washington Post," the Army has now opened investigations into at least 91 cases of possible misconduct by U.S. soldiers against detainees and civilians in Iraq and Afghanistan. That's a much larger total than had previously been reported. And the report points to a broader range of wrongful behavior than Defense Department officials have so far acknowledged.

After months of courthouse wrangling and weeks of jury selection, Scott Peterson's double murder trial finally begins in the next hour.

CNN's David Mattingly is in Redwood City, California this morning for a preview.

Good morning.

DAVID MATTINGLY, CNN CORRESPONDENT: Good morning, Carol.

One sign of the excitement this case has been generating began forming outside the courthouse this morning, people lining up for a chance at one of those precious few seats inside the courtroom. About 30 people will be awarded a seat by lottery. The room actually seats about 100 people, but most of those seats will be taken up by participants in this trial and members of the large contingency of media that is here covering it.

And when those opening arguments begin, expect to hear some very familiar themes in this case. The prosecutors will no doubt try to characterize Scott Peterson as a lying, cheating husband, who killed his wife, Laci Peterson, and their unborn child.

His credibility, if you remember, was in question well before we found out about his affair with Amber Frey. It goes back to his original alibi, that he left an eight-month pregnant wife at home cleaning the kitchen floor so he could go fishing in a newly purchased boat in bad weather.

From the defense we will no doubt hear what Mark Geragos has been saying since the day he took this case, that Modesto police got it wrong when they arrested Scott Peterson, that investigators ignored credible witnesses placing Laci and a mysterious brown van in the neighborhood after Scott went fishing that morning.

So, in a sense, Scott Peterson is not the only one on trial here. The Modesto police will also have a lot of explaining to do as this trial winds on through the summer and possibly well into the fall -- Carol.

COSTELLO: So opening arguments will take place today. Do we expect the first witness to be put on the stand at some point this afternoon?

MATTINGLY: Today we are expecting only those opening statements. Both sides have about two hours. They are expected to be very thorough. And these opening arguments are very important in this case, as they are in any murder case. Each side will be trying to grab the jury and make them think about their scenario of what really happened in this case. So it should be interesting to hear what happens today -- Carol.

COSTELLO: Certainly so. David Mattingly live in Redwood City, California.

One other courtroom note to tell you about, the penalty phase opened this morning in the state murder trial of Terry Nichols. Jurors convicted Nichols of 161 counts of murder last week for his role in the 1995 Oklahoma City bombing. Prosecutors plan to question survivors of the attack, as well as family members of the dead. They hope to convince a jury to recommend the death penalty. Nichols escaped that sentence at his federal trial. The penalty phase may take three weeks.

Think gas is expensive now? Can you imagine a future where the oil well has practically run dry and America has come to a halt? Mark this on your calendar, the year will be 2016. We'll explain its significance next.

Also, a major departure at one of the country's most powerful entertainment companies. That's ahead in your 'Business Report.'

And we are waiting for President Bush to begin speaking in the White House Rose Garden. He'll be talking about the new Iraqi government.

CNN LIVE TODAY will be right back.

(COMMERCIAL BREAK)

COSTELLO: You're taking a look at the beautiful city of Washington, D.C. You see the White House there. President Bush will be speaking in the Rose Garden at 11:30 Eastern. When he begins to speak, of course we'll take you back there live.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: The world drinks nearly 80 million barrels of crude oil a day. Stands to reason with the finite supply down there, oil supplies will peak and eventually dwindle to a slurpy trickle. Whew. That's the dreary premise for the cover story in this month's "National Geographic."

Bill Allen is the magazine's editor-in-chief. Let's talk to him in Washington this morning to find out more.

Good morning.

BILL ALLEN, EDITOR-IN-CHIEF, "NATIONAL GEOGRAPHIC": Good morning.

COSTELLO: First of all, a prediction, how high will gas prices go?

ALLEN: You know if I knew that, I think I would be in the business of maybe buying some oil futures. I wish I could tell you. I think the only thing that we can know for sure is that oil prices are probably not going to be as low as we've seen them in the past. There may be some fluctuations, but they will probably, over the long term, be going up.

COSTELLO: Be going up. They stand at, what, $41 a barrel today. Still, you insist, oil is cheap. What do you mean by that?

ALLEN: Well, when you look around at the way that we're treating oil, we're treating oil these days as if it's an inexhaustible resource and it's not. You know oil may be actually too precious to burn. We're in this country using about two thirds of the oil that we use now to burn in our cars. But when you look at the other uses, such as all the plastics, for our clothes, for use in food production, this is a very valuable commodity and a very flexible commodity.

COSTELLO: But aren't there many other frontiers that we haven't tapped into yet? Russia, for example, the Gulf of Mexico, dare I say Alaska?

ALLEN: Sure. All of these things are, in the short term, sort of band-aids, for example. But in the long term, you're still looking at something that is going to be a declining resource.

COSTELLO: You mentioned the year in our pre-interview of 2016. Why should that year resonate?

ALLEN: Well, this is a time when it may be that worldwide demand is going to cross the line with worldwide production. And at that point, that's a tilting point. And from then on we could be in really serious problem with the oil suppliers being in real control of destinies.

COSTELLO: So how are you going to make Americans believe that, because we're so used to our cars and other products made from oil or oil by-products? How do you convince Americans that we're going to run out?

ALLEN: Well, you just hope that there's going to be some way of saying, you know, when you go to the gas station and you watch that clicker go up and up and up and up, it's a sign that something is going on. And even though there are new supplies coming on, the long- term prospect is for much higher gas prices. And you can only trust that the American people will finally begin to see all of the evidence that's piled up in front of them and go, my gosh, we may have to change our own lifestyles.

COSTELLO: That'll be -- OK. Let's talk politics right now. Does either candidate have any good ideas?

ALLEN: You know I'm probably the last person in the world to talk about political things, because the only thing that we do is we try and lay out an unbiased series of facts for people to make their own decisions. So I wouldn't even begin to get into the political aspects of this.

COSTELLO: Even with the cover of your magazine, you're not even going to get into the political aspects? Didn't you mention John Kerry's 50-cent gas tax idea of 10 years ago?

ALLEN: Well, this is something -- you know, the question was, well what would happen if there's a 50-cent gas tax? If that had gone on, what would have happened to demand? You go back and you take a look at what had happened in the past the last time there was a huge increase in oil, and the demand did go down for oil, there was a demand for higher fuel-efficient cars. So there is an effect that a tax would have.

Now, none of us, especially me, like taxes. I don't think any of us like taxes. But the fact is, if you look in Germany, they have a tax of the equivalent of about $3 to $4 per gallon on oil. And that does have an effect of reducing demand and encouraging higher fuel- efficient cars.

COSTELLO: Interesting. Bill Allen, thank you for joining us. Bill Allen from "National Geographic."

ALLEN: My pleasure.

COSTELLO: Picking up the pieces of broken homes and broken lives. Where do you go when there's nothing left? An Indiana town comes together after devastating storms.

And a fire on a Seattle monorail leads to some terrifying moments and some incredible acts of heroism.

We're coming right back.

(COMMERCIAL BREAK)

COSTELLO: Let's head to Wall Street now to check in with Susan Lisovicz.

Hello -- Susan.

SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Hello, Carol.

(STOCK MARKET REPORT)

Back to you.

COSTELLO: All right, thanks, Susan.

A fast-moving wildfire shuts down a Florida university. The fire has burned about 1,300 acres in Lee County. Staff and students who commute to Florida Gulf Coast University were told to stay home today because of heavy smoke and ash from the wildfire. Crews say the fire is now about 70 percent contained.

From fires to floods, the governor of West Virginia has added three more counties to the list of disaster areas due to flooding. The National Weather Service says some areas were soaked by more than four inches of rain in a 24-hour period yesterday. State emergency officials say many homes and businesses in low-lying areas were damaged or destroyed.

And people across the South and the Midwest still cleaning up today from the mess left by a string of tornadoes and severe storms. At least 10 people were killed. National Guard units and crews with tractors and backhoes are helping to clear the debris. The weather service says the tornado that struck one Illinois town had winds of up to 170 miles per hour.

To the Forecast Center now and Jacqui Jeras.

Hey.

JACQUI JERAS, CNN METEOROLOGIST: Hey. I'll respond to all of those for you, Carol, how about that? COSTELLO: Good.

(WEATHER REPORT)

COSTELLO: All right. Jacqui Jeras, many thanks.

JERAS: All right.

COSTELLO: There was a pop and then smoke. Riders describe harrowing moments when the Seattle monorail caught fire last night. Dozens of riders were quickly pulled from the smoky cars. Several people had to go to the hospital. No one was seriously injured, though. The monorail runs from downtown to Seattle's center, which is home of the Space Needle. It's suspended a story above ground at the spot where the fire broke out.

United we stand, divided we fall or so the saying goes. But in times of war, Americans are seldom united and often divided.

CNN's senior political analyst Bill Schneider gives us a history lesson on war, dissension and discord.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): The current wave of World War II nostalgia carries a political message, a longing for national unity.

ROBERT DOLE, FMR. PRESIDENTIAL CANDIDATE: Everybody came together, just as we came together at 9/11. But unfortunately, you know, we don't have that unity now.

SCHNEIDER: The country was united behind the last good war, but unity in war time is more the exception than the rule. The rule is wars divide Americans. Going all the way back to the American Revolution, as many as a third of Americans opposed it. The New England states were so opposed to the War of 1812 against Britain, they threatened to secede.

The Civil War didn't just divide north and south. Many northerners wanted to sue for peace. There were anti-draft riots in New York City.

World War I produced an isolationist backlash that threw the Democrats out of office and kept the U.S. out of the League of Nations. World War II was not entirely the great exception. Before Pearl Harbor, the country was deeply divided.

DOLE: There was a lot of dissent in the country. It was sort of an isolationist country that Congress barely voted to declare war until they had the attack on Pearl Harbor.

SCHNEIDER: The Korean War caused an anti-war movement on the right that helped bring down President Harry Truman. The Vietnam War created a tumultuous backlash on the left that brought down another Democratic president. HARRY TRUMAN, FMR. PRESIDENT OF THE UNITED STATES: I shall not seek and I will not accept the nomination of my party for another term as your president.

SCHNEIDER: The first Gulf War was a splendid victory, preceded by a deeply divisive debate.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I asked my colleagues if we are once again so willing to risk people dying for a mistake.

SCHNEIDER: There was less division going into Iraq last year. But a lot more now. But you don't have to go back to World War II to find the country united behind a war. You can just go back to 2001: Afghanistan.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The Taliban must act and act immediately. They will hand over the terrorists or they will share in their fate.

SCHNEIDER (on camera): What did the war in Afghanistan and World War II have in common? The U.S. was attacked, Pearl Harbor, 9/11. Going to war without being attacked divides Americans. Always has. Probably always will.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And we are waiting for President Bush to enter the Rose Garden. He'll be speaking live about the new Iraqi government. Of course, we'll carry that live. You stay tuned.

(COMMERCIAL BREAK)

COSTELLO: I'm Carol Costello at the CNN Center in Atlanta. Let's check the latest headlines now.

The interim Iraqi government was finally formally announced today in Baghdad. A Sunni sheikh will serve the ceremonial post of president. Iyad Allawi, a Shiite, will run the country as prime minister. The new government will assume power from the U.S.-led coalition on June 30.

President Bush is about to step into the Rose Garden and congratulate members of the emerging Iraqi government. Live coverage of the president's comments on CNN soon.

Kathleen Koch live at the White House while we await the president's arrival at that podium you just saw. Let's check in with Kathleen Koch on what the president is expected to say and will he take questions?

KOCH: Carol, yes, we are hearing that the president will, when he comes to the podium in a few minutes, take questions. And what we've been hearing from the administration all morning is they're putting really the best spin on what some might say is a bad situation. The new president of the Iraqi interim government is not known to be a strong friend of the United States.

Sheikh Ghazi al-Yawar has criticized the American presence in Iraq. He has attributed some of the problems, some of the disruptions and violence in Iraq to what he called blunderings by the U.S. military. Now, on the positive side, he has, though, denounced violence against U.S. forces in Iraq and against members of the coalition, the military coalition there.

But we have been hearing from the national security adviser. She was describing this as a terrific list, a really good government. She has said that all the candidates, though, this is National Security Adviser Condoleezza Rice this morning, all the candidates that were put forward were acceptable to the United States. She denied any speculation that the U.S. had one candidate that it was backing and supporting.

The Secretary of State Colin Powell praised U.N. Envoy Lakhdar Brahimi, saying that he had done a tremendous job. He had come up with what the Secretary of State called a strong slate for the future of Iraq.

COSTELLO: And, Kathleen, we see the president approaching the podium now. Let's let him get there and we'll listen.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired June 1, 2004 - 11:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It is 11:00 a.m. on the East Coast, 8:00 a.m. in the west. From the CNN Center in Atlanta, I'm Carol Costello in for Daryn Kagan today.
Up first, major developments in Iraq, just 29 days until the handover of power. President Bush speaks out -- speaks out this hour about the new government taking shape. Earlier today, it was announced that Sheikh Ghazi al-Yawar had been appointed president after Adnan Pachachi said no thanks.

And car bombs exploded before and after the announcement of the new government. The bombings in Baghdad and near Baji killed 14 and wounded 46.

President Bush shows his support for Iraq's new interim government during remarks from the Rose Garden this hour.

Kathleen Koch at the White House with a preview for us.

Hello, Kathleen.

KATHLEEN KOCH, CNN WHITE HOUSE CORRESPONDENT: Well, at this point, Carol, what we're hearing is a very positive spin from the U.S. administration reacting to the new interim government in Iraq. As you mentioned, the president, this morning, made a speech to the -- to a national conference on faith-based initiatives across town. He is on his way back to the White House shortly and will speak to the media at 11:30, giving his impression of this new government.

But clearly, the choice of Sheikh Ghazi al-Yawar as the new president of the interim government is certainly problematic for the United States. In televised interviews recently, he criticized the American presence in Iraq, attributed the worsening conditions there to blunders by the U.S. military. And in his brief acceptance speech this morning, he thanked the United Nations and did not mention the U.S. or the coalition.

Still, the administration says this morning it's pleased with this new government, calling it a terrific list and saying that it is a positive step for the future of a free Iraq.

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: I think the Iraqi people will now see that their destiny is in the hands of their own leaders. The occupation, as they know it, is coming to an end in that their political leaders are in charge. We are there to help their political leaders restore control. We are there to help build up Iraqi security forces so that increasingly Iraqi security forces can take on the challenge of providing security for the people of Iraq and defeating the terrorists and former regime fighters who are still trying to take the country backwards.

(END VIDEO CLIP)

KOCH: National Security Adviser Condoleezza Rice briefed reporters here at this White House this morning. And she said, among other things, that the administration does not believe that the continuing presence of coalition -- U.S. and coalition forces in Iraq will be an issue.

Rice said that even all the members in the new Iraqi government have to admit that Iraq right now does not have its own forces, enough forces to maintain law and order in the country. Rice also, though, did predict that we could see an uptick in violence in Iraq as insurgents there try to test the will of this new government.

And rice said that that is why it is so important that the U.S. get through the United Nations Security Council a resolution that will solidify international support in Iraq and then lay the way for the future democracy there.

And what the U.S. is pushing for is a resolution that would allow coalition forces to act -- take -- quote -- "all necessary measures to maintain security and prevent terrorism" there. However, U.S. allies, France, Germany, Russia, are pushing for something that would give much more sovereignty and control to this new government.

Back to you.

COSTELLO: Kathleen Koch live from the White House.

President Bush, by the way, will talk about the new Iraqi interim government shortly in an appearance from the Rose Garden that has been set for 11:30 Eastern this morning. CNN will bring you his comments live.

There are reportedly more cases of Iraqi prisoner abuse. According to "The Washington Post," the Army has now opened investigations into at least 91 cases of possible misconduct by U.S. soldiers against detainees and civilians in Iraq and Afghanistan. That's a much larger total than had previously been reported. And the report points to a broader range of wrongful behavior than Defense Department officials have so far acknowledged.

After months of courthouse wrangling and weeks of jury selection, Scott Peterson's double murder trial finally begins in the next hour.

CNN's David Mattingly is in Redwood City, California this morning for a preview.

Good morning.

DAVID MATTINGLY, CNN CORRESPONDENT: Good morning, Carol.

One sign of the excitement this case has been generating began forming outside the courthouse this morning, people lining up for a chance at one of those precious few seats inside the courtroom. About 30 people will be awarded a seat by lottery. The room actually seats about 100 people, but most of those seats will be taken up by participants in this trial and members of the large contingency of media that is here covering it.

And when those opening arguments begin, expect to hear some very familiar themes in this case. The prosecutors will no doubt try to characterize Scott Peterson as a lying, cheating husband, who killed his wife, Laci Peterson, and their unborn child.

His credibility, if you remember, was in question well before we found out about his affair with Amber Frey. It goes back to his original alibi, that he left an eight-month pregnant wife at home cleaning the kitchen floor so he could go fishing in a newly purchased boat in bad weather.

From the defense we will no doubt hear what Mark Geragos has been saying since the day he took this case, that Modesto police got it wrong when they arrested Scott Peterson, that investigators ignored credible witnesses placing Laci and a mysterious brown van in the neighborhood after Scott went fishing that morning.

So, in a sense, Scott Peterson is not the only one on trial here. The Modesto police will also have a lot of explaining to do as this trial winds on through the summer and possibly well into the fall -- Carol.

COSTELLO: So opening arguments will take place today. Do we expect the first witness to be put on the stand at some point this afternoon?

MATTINGLY: Today we are expecting only those opening statements. Both sides have about two hours. They are expected to be very thorough. And these opening arguments are very important in this case, as they are in any murder case. Each side will be trying to grab the jury and make them think about their scenario of what really happened in this case. So it should be interesting to hear what happens today -- Carol.

COSTELLO: Certainly so. David Mattingly live in Redwood City, California.

One other courtroom note to tell you about, the penalty phase opened this morning in the state murder trial of Terry Nichols. Jurors convicted Nichols of 161 counts of murder last week for his role in the 1995 Oklahoma City bombing. Prosecutors plan to question survivors of the attack, as well as family members of the dead. They hope to convince a jury to recommend the death penalty. Nichols escaped that sentence at his federal trial. The penalty phase may take three weeks.

Think gas is expensive now? Can you imagine a future where the oil well has practically run dry and America has come to a halt? Mark this on your calendar, the year will be 2016. We'll explain its significance next.

Also, a major departure at one of the country's most powerful entertainment companies. That's ahead in your 'Business Report.'

And we are waiting for President Bush to begin speaking in the White House Rose Garden. He'll be talking about the new Iraqi government.

CNN LIVE TODAY will be right back.

(COMMERCIAL BREAK)

COSTELLO: You're taking a look at the beautiful city of Washington, D.C. You see the White House there. President Bush will be speaking in the Rose Garden at 11:30 Eastern. When he begins to speak, of course we'll take you back there live.

We'll be right back.

(COMMERCIAL BREAK)

COSTELLO: The world drinks nearly 80 million barrels of crude oil a day. Stands to reason with the finite supply down there, oil supplies will peak and eventually dwindle to a slurpy trickle. Whew. That's the dreary premise for the cover story in this month's "National Geographic."

Bill Allen is the magazine's editor-in-chief. Let's talk to him in Washington this morning to find out more.

Good morning.

BILL ALLEN, EDITOR-IN-CHIEF, "NATIONAL GEOGRAPHIC": Good morning.

COSTELLO: First of all, a prediction, how high will gas prices go?

ALLEN: You know if I knew that, I think I would be in the business of maybe buying some oil futures. I wish I could tell you. I think the only thing that we can know for sure is that oil prices are probably not going to be as low as we've seen them in the past. There may be some fluctuations, but they will probably, over the long term, be going up.

COSTELLO: Be going up. They stand at, what, $41 a barrel today. Still, you insist, oil is cheap. What do you mean by that?

ALLEN: Well, when you look around at the way that we're treating oil, we're treating oil these days as if it's an inexhaustible resource and it's not. You know oil may be actually too precious to burn. We're in this country using about two thirds of the oil that we use now to burn in our cars. But when you look at the other uses, such as all the plastics, for our clothes, for use in food production, this is a very valuable commodity and a very flexible commodity.

COSTELLO: But aren't there many other frontiers that we haven't tapped into yet? Russia, for example, the Gulf of Mexico, dare I say Alaska?

ALLEN: Sure. All of these things are, in the short term, sort of band-aids, for example. But in the long term, you're still looking at something that is going to be a declining resource.

COSTELLO: You mentioned the year in our pre-interview of 2016. Why should that year resonate?

ALLEN: Well, this is a time when it may be that worldwide demand is going to cross the line with worldwide production. And at that point, that's a tilting point. And from then on we could be in really serious problem with the oil suppliers being in real control of destinies.

COSTELLO: So how are you going to make Americans believe that, because we're so used to our cars and other products made from oil or oil by-products? How do you convince Americans that we're going to run out?

ALLEN: Well, you just hope that there's going to be some way of saying, you know, when you go to the gas station and you watch that clicker go up and up and up and up, it's a sign that something is going on. And even though there are new supplies coming on, the long- term prospect is for much higher gas prices. And you can only trust that the American people will finally begin to see all of the evidence that's piled up in front of them and go, my gosh, we may have to change our own lifestyles.

COSTELLO: That'll be -- OK. Let's talk politics right now. Does either candidate have any good ideas?

ALLEN: You know I'm probably the last person in the world to talk about political things, because the only thing that we do is we try and lay out an unbiased series of facts for people to make their own decisions. So I wouldn't even begin to get into the political aspects of this.

COSTELLO: Even with the cover of your magazine, you're not even going to get into the political aspects? Didn't you mention John Kerry's 50-cent gas tax idea of 10 years ago?

ALLEN: Well, this is something -- you know, the question was, well what would happen if there's a 50-cent gas tax? If that had gone on, what would have happened to demand? You go back and you take a look at what had happened in the past the last time there was a huge increase in oil, and the demand did go down for oil, there was a demand for higher fuel-efficient cars. So there is an effect that a tax would have.

Now, none of us, especially me, like taxes. I don't think any of us like taxes. But the fact is, if you look in Germany, they have a tax of the equivalent of about $3 to $4 per gallon on oil. And that does have an effect of reducing demand and encouraging higher fuel- efficient cars.

COSTELLO: Interesting. Bill Allen, thank you for joining us. Bill Allen from "National Geographic."

ALLEN: My pleasure.

COSTELLO: Picking up the pieces of broken homes and broken lives. Where do you go when there's nothing left? An Indiana town comes together after devastating storms.

And a fire on a Seattle monorail leads to some terrifying moments and some incredible acts of heroism.

We're coming right back.

(COMMERCIAL BREAK)

COSTELLO: Let's head to Wall Street now to check in with Susan Lisovicz.

Hello -- Susan.

SUSAN LISOVICZ, CNN FINANCIAL NEWS CORRESPONDENT: Hello, Carol.

(STOCK MARKET REPORT)

Back to you.

COSTELLO: All right, thanks, Susan.

A fast-moving wildfire shuts down a Florida university. The fire has burned about 1,300 acres in Lee County. Staff and students who commute to Florida Gulf Coast University were told to stay home today because of heavy smoke and ash from the wildfire. Crews say the fire is now about 70 percent contained.

From fires to floods, the governor of West Virginia has added three more counties to the list of disaster areas due to flooding. The National Weather Service says some areas were soaked by more than four inches of rain in a 24-hour period yesterday. State emergency officials say many homes and businesses in low-lying areas were damaged or destroyed.

And people across the South and the Midwest still cleaning up today from the mess left by a string of tornadoes and severe storms. At least 10 people were killed. National Guard units and crews with tractors and backhoes are helping to clear the debris. The weather service says the tornado that struck one Illinois town had winds of up to 170 miles per hour.

To the Forecast Center now and Jacqui Jeras.

Hey.

JACQUI JERAS, CNN METEOROLOGIST: Hey. I'll respond to all of those for you, Carol, how about that? COSTELLO: Good.

(WEATHER REPORT)

COSTELLO: All right. Jacqui Jeras, many thanks.

JERAS: All right.

COSTELLO: There was a pop and then smoke. Riders describe harrowing moments when the Seattle monorail caught fire last night. Dozens of riders were quickly pulled from the smoky cars. Several people had to go to the hospital. No one was seriously injured, though. The monorail runs from downtown to Seattle's center, which is home of the Space Needle. It's suspended a story above ground at the spot where the fire broke out.

United we stand, divided we fall or so the saying goes. But in times of war, Americans are seldom united and often divided.

CNN's senior political analyst Bill Schneider gives us a history lesson on war, dissension and discord.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST (voice-over): The current wave of World War II nostalgia carries a political message, a longing for national unity.

ROBERT DOLE, FMR. PRESIDENTIAL CANDIDATE: Everybody came together, just as we came together at 9/11. But unfortunately, you know, we don't have that unity now.

SCHNEIDER: The country was united behind the last good war, but unity in war time is more the exception than the rule. The rule is wars divide Americans. Going all the way back to the American Revolution, as many as a third of Americans opposed it. The New England states were so opposed to the War of 1812 against Britain, they threatened to secede.

The Civil War didn't just divide north and south. Many northerners wanted to sue for peace. There were anti-draft riots in New York City.

World War I produced an isolationist backlash that threw the Democrats out of office and kept the U.S. out of the League of Nations. World War II was not entirely the great exception. Before Pearl Harbor, the country was deeply divided.

DOLE: There was a lot of dissent in the country. It was sort of an isolationist country that Congress barely voted to declare war until they had the attack on Pearl Harbor.

SCHNEIDER: The Korean War caused an anti-war movement on the right that helped bring down President Harry Truman. The Vietnam War created a tumultuous backlash on the left that brought down another Democratic president. HARRY TRUMAN, FMR. PRESIDENT OF THE UNITED STATES: I shall not seek and I will not accept the nomination of my party for another term as your president.

SCHNEIDER: The first Gulf War was a splendid victory, preceded by a deeply divisive debate.

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: I asked my colleagues if we are once again so willing to risk people dying for a mistake.

SCHNEIDER: There was less division going into Iraq last year. But a lot more now. But you don't have to go back to World War II to find the country united behind a war. You can just go back to 2001: Afghanistan.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The Taliban must act and act immediately. They will hand over the terrorists or they will share in their fate.

SCHNEIDER (on camera): What did the war in Afghanistan and World War II have in common? The U.S. was attacked, Pearl Harbor, 9/11. Going to war without being attacked divides Americans. Always has. Probably always will.

Bill Schneider, CNN, Washington.

(END VIDEOTAPE)

COSTELLO: And we are waiting for President Bush to enter the Rose Garden. He'll be speaking live about the new Iraqi government. Of course, we'll carry that live. You stay tuned.

(COMMERCIAL BREAK)

COSTELLO: I'm Carol Costello at the CNN Center in Atlanta. Let's check the latest headlines now.

The interim Iraqi government was finally formally announced today in Baghdad. A Sunni sheikh will serve the ceremonial post of president. Iyad Allawi, a Shiite, will run the country as prime minister. The new government will assume power from the U.S.-led coalition on June 30.

President Bush is about to step into the Rose Garden and congratulate members of the emerging Iraqi government. Live coverage of the president's comments on CNN soon.

Kathleen Koch live at the White House while we await the president's arrival at that podium you just saw. Let's check in with Kathleen Koch on what the president is expected to say and will he take questions?

KOCH: Carol, yes, we are hearing that the president will, when he comes to the podium in a few minutes, take questions. And what we've been hearing from the administration all morning is they're putting really the best spin on what some might say is a bad situation. The new president of the Iraqi interim government is not known to be a strong friend of the United States.

Sheikh Ghazi al-Yawar has criticized the American presence in Iraq. He has attributed some of the problems, some of the disruptions and violence in Iraq to what he called blunderings by the U.S. military. Now, on the positive side, he has, though, denounced violence against U.S. forces in Iraq and against members of the coalition, the military coalition there.

But we have been hearing from the national security adviser. She was describing this as a terrific list, a really good government. She has said that all the candidates, though, this is National Security Adviser Condoleezza Rice this morning, all the candidates that were put forward were acceptable to the United States. She denied any speculation that the U.S. had one candidate that it was backing and supporting.

The Secretary of State Colin Powell praised U.N. Envoy Lakhdar Brahimi, saying that he had done a tremendous job. He had come up with what the Secretary of State called a strong slate for the future of Iraq.

COSTELLO: And, Kathleen, we see the president approaching the podium now. Let's let him get there and we'll listen.

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