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American Morning

In the Michael Jackson Trial, Another Day of Crucial Testimony; 'The World is Flat'

Aired April 12, 2005 - 09:30   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.


SOLEDAD O'BRIEN, CNN ANCHOR: We're open for business as well. It's just about half past the hour on this AMERICAN MORNING. The Michael Jackson trial set to resume in just a few hours. Coming up, is a key witness for the prosecution, the mother of the boy, accusing Michael Jackson of molestation. We're going to take a look at the story that she's likely to tell, and also the pretty incredible story that one mother told on the stand.
BILL HEMMER, CNN ANCHOR: Also, in a moment here, meet one tough girl. How tough? She's so tough she won the Illinois boy's wrestling title, not once, but twice. She says she likes to make boys cry after she beats them.

O'BRIEN: She's scary, in the good way.

HEMMER: I'm telling you. We'll talk to her a bit later this half hour.

O'BRIEN: I liked her.

Let's get a look at the headlines first, though. Here's Carol Costello.

Good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to you.

Now in the news, at least five Iraqis killed in a morning suicide bombing. New video into CNN this morning shows debris from that attack. The apparent target, a U.S. military convoy. No word on U.S. casualties, but four Americans were hurt in a separate incident earlier today.

And violence taking place as Defense Secretary Donald Rumsfeld makes a surprise trip to Iraq. Rumsfeld taking part in a re- enlistment ceremony for about 100 American soldiers. He's also meeting with Iraqi officials, urging them to push ahead with a planned round of elections in December.

Within the half hour, John Negroponte is set to face lawmakers for confirmation hearings. He's been tapped as the first ever director of national intelligence. The post was created last December to help intelligence agencies coordinate in the fight against terrorism. Negroponte is expected to win approval for the post.

And some costly news about prescription drugs. A new study shows wholesale prices for popular brand-name medications rose more than 7 percent last year. That's twice the rate of inflation. The study was commissioned by the AARP. The group is expected to release the report later today. And of course, we'll keep you posted.

HEMMER: That we will. Thank you, Carol.

In the Michael Jackson trial, now another day of crucial testimony, this time from the mother of boy who says Jackson molested him more than 10 years ago.

Watching that trial in Santa Maria, here's Ted Rowlands.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT: The mother of one of Michael Jackson's alleged victims broke down on the stand saying, she regrets trusting Jackson with her then 13-year-old boy. The woman detailed his alleged relationship with Jackson, which she said started after she gave the pop star her son's phone number following a chance meeting in 1992. The mother testified that phone calls started, some lasting up to 90 minutes; then an invitation to Neverland. And within a few months, she said, her family was traveling the world with Jackson, and her son was sleeping in his bed.

One of the trips, she said, was to Monaco, where her son sat on Jackson's lap at the 1993 World Music Awards.

ANNE BREMNER, LEGAL ANALYST: He's a very charming, I think, individual. Somebody that was able to persuade this mother that he would not hurt her son. And she believed that.

ROWLANDS: The mother said Michael Jackson convinced her to allow her son to share his bed on a trip to Las Vegas, after she said Jackson cried and asked her, quote, "don't you trust me? We're family." The woman said Jackson ended up sleeping at her house, spending more than 30 nights, each time she said Jackson slept with her son in his room.

The woman said Jackson bought her gifts, including handbags, jewelry and a $7,000 boutique gift certificate.

JIM MORET, POOL REPORTER: You got the sense that she sold her son. You got the sense she received a gold bracelet, she received a necklace, she received a ring. In return, the implication is she allowed Michael Jackson to sleep at her house with her son for 30 nights.

ROWLANDS: On cross-examination, the mother admitted she hasn't talked to her son in 11 years, saying it wasn't her choice. She also admitted that she never saw any abuse, and that at times she was comfortable with Jackson sharing his bed with her son.

The mother was the latest in a series of witnesses allowed to testify about Michael Jackson's past. Her son, the accuser, is not expected to take the stand.

Jackson currently faces four counts of lewd acts on a minor, and has pleaded not guilty.

(on camera): The mother of the 1993 alleged victim is the 51st witness to testify for the prosecution. Prosecutors told the judge that they expect to bring the mother of the current accuser to the stand in the next few days.

Ted Rowlands, CNN, Santa Maria, California.

(END VIDEOTAPE)

HEMMER: Also that testimony in the Jackson trial is expected to start in about two hours -- Soledad.

O'BRIEN: It was proven long ago that the Earth is round, but our next guest says, well, the world is flat. He's not talking literally, but he does have some dire predictions about what the future might hold for Americans and the U.S. economy. "New York Times" columnist Thomas Friedman is our guest. His book the called "The World Is Flat."

Nice to see you, Thomas. Thanks for talking with us this morning.

THOMAS FRIEDMAN, AUTHOR, "THE WORLD IS FLAT"": Great to be with you, Soledad.

O'BRIEN: Thank you.

You're a guy who spent a lot of time in the Middle East. Much of your work, which of course we've all followed, is about conflict in the Middle East. What brought you to write a book that's really essentially about technology?

FRIEDMAN: Well, basically I went to Bangalor (ph), India, the capital of outsourcing, and India's silicon valley about a year ago to do a documentary. And while I was there, we shot about 10 hours of interviews in -- 60 hours of interviews, excuse me, in 10 days, and I found myself getting sicker and sicker after each interview, Soledad, because somewhere between the Indian entrepreneur who wanted to do my taxes from Bangalor, and the one who wanted to write my software from Bangalor, and the one who wanted to read my X-rays from the Bangalor and the one who wanted to trace my lost luggage on Delta Airlines from Bangalor, I realized that while I had been off covering the Middle East, something really big had happened in this whole kind of globalization technology world, that the global playing field had been flattened.

You know, 35 years ago, if you had a choice of being born a 'B' student in the Bronx or a genius in Beijing, you'd choose to be a 'B' student in the Bronx because you're life chances were so much greater than that genius in Beijing who was bottled up there. Well, when the world is flat, you do not want to be a 'B' student in the Bronx; you want to be the genius born in Beijing. And what this book is about is partly a how-to guide for moms and dads, how to think about what to do with your kids when the world is flat. O'BRIEN: And in fact you talk a lot about China, China is exploding. Is it only, well, primarily because of the sheer number of Chinese, or is there's something more to that, more of an emphasis on education and education that's relevant in today's world?

FRIEDMAN: Well, exactly. You know, when the world isn't just getting flat, but when it got flat, who happened to walk on to the playing field? Well, about three billion people had been out of the game, namely China, Russia and India. And these are cultures with very strong, very strong educational heritages and huge emphasis on education. That's why, you know, I say in the book when I was growing up, my parents said to me, Tom, finish your dinner, people in China and India are starving. But what I say to my girls, is, girls, finish your homework because people in China and India are starving for your jobs.

O'BRIEN: Are you saying the U.S. schools are not competitive overall? You talk about the 'B' student in the Bronx. Or are you saying when it comes to technology, the U.S. is not sort of creating enough of these -- from students into workers who are going to be able to move the ball forward on this new playing field?

FRIEDMAN: Well, I can only quote Bill Gates, who in an address to the Governor's Conference just a month ago, told the governors of our 50 states that high school education in America is obsolete, and that comes from a person whose job is to cream off the first-round intellectual draft choices from around the world and encourage them to innovate.

And so we have a real education problem. If you look at all the math tests, the international math tests, American kids are ahead in fourth grade, they're about even in eighth grade; by the time they graduate they're behind. It means they're get dumber the longer they're in high school. That's a terribly dangerous trend.

O'BRIEN: It is scary trend. Your write a lot about it in your new book. It's called "The World is Flat."

Thomas Friedman, columnist for "The New York Times," nice to see you. Thanks for talking with us.

FRIEDMAN: Great to be with you.

O'BRIEN: Thank you -- Bill.

HEMMER All right, 22 minutes before the hour now.

(WEATHER REPORT)

Also tomorrow here on AMERICAN MORNING, a special interview with world renowned opera soprano Debra Voigt. She was fired from a London production last year after being overweight. Since then, she's slimmed down, she had gastric-bypass surgery. Why she's going public now about her ordeal. We'll talk to her about it, tomorrow morning at 7:00 a.m. Eastern Time right here. Good story to tell. O'BRIEN: Yes, looking forward to it, coming up this morning, if gas prices don't break the bank, maybe prescription drug price also. Andy tell us about some alarming increases, as he minds your business, just ahead.

HEMMER: Also after the Masters, it was clear that Tiger Woods was playing with a heavy heart. The special role his father has played in his life, and now the difficult you challenges he faces today. That's ahead, after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: We've got this just in to CNN. We've been updating you all morning on this hostage situation taking place in Ennepetal, in Germany. That's about 40 miles northwest of cologne. We heard reports that somewhere between four and seven children, somewhere in the 10, 11, 12-year-old range, were taken off a bus at knifepoint, maybe a kitchen knife by some descriptions. We want more details now on the alleged hostage-taker.

Markus Esser is a journalist. He is covering the story for us this morning.

Markus, thanks for talking with us.

What can you tell us? What details do you have about the suspect?

MARKUS ESSER, GERMAN NEWSPAPER REPORTER: OK, it was at 1:00 p.m. a call reached the local police that a man had took hostages from a local public school bus, took some pupils who were inside this bus. Was forced by him with two kitchen knives. After a while, he stopped the bus on a small road, (INAUDIBLE) in this town. And he abducted four children, boys and girls, age 11 to 12 years, and then he forced them to follow him into (INAUDIBLE), this very small road, before he bound them with a rope. And when he went into that blind alley, and at the end of this blind alley, there's a turning point. And the left edge of this turning point, he directly went to a house, (INAUDIBLE). The woman who lived inside didn't want to let them in. So he kicked against the door and opened it himself and went inside.

As far as we know, as neighbors told us, they met the woman afterwards and she told them what has happened. The man forced the pupils to go into the cellar, and at the moment the local police took special forces to that scene and the forces talked to the man.

He is described as very nervous. He is aged 48 to 50. And he is born Iranian. And he lives at the moment, he lives in a public accommodation here in Ennepetal.

That's all our information at the time. And we don't know why this is. As far as we know, there are no conditions told to the police that's in effect at the moment.

O'BRIEN: Do you know if they've had any communication with the kidnapper? Is there any sort of negotiation ongoing, or are they still just surrounding the scene? We're looking, Markus, as you talk to us at some of the first pictures coming to us from the scene, I should say.

ESSER: Yes, they are talking to him. I don't know if they're talking by handheld or telephone, because I'm sure that they have located the house and I'm sure that they know which telephone will reach in that house. And there was some information that maybe the pupils are having mobile phones and talked with someone, but not very clear at the moment, talk the parents or someone outside.

O'BRIEN: Marcus Esser updating the situation in Ennepetal in Germany. He's saying that it appears the hostage-taker stopped the bus on the road, took four children, boys and girls, somewhere between 11 and 12 years old, forced them to follow him down a blind alley, went into a house, kicked his way essentially into a house. People didn't want to let him in. The special forces and the police then arrived. They've surrounded the area, as we can see from the videotape.

They say, some are describing the suspect as very nervous, somewhere between 48 and 50 years old, Iranian born. No word on a motive at this time. No conditions have been set forth that the journalists know about from the scene. There has been no communication established with the hostage taker.

We will update you on this story as we continue to follow it all morning. A short break and we're back in just a moment. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Brand name prescriptions is rapidly rising. With look at that and a check on Wall Street this morning, Andy Serwer is "Minding Your business."

No real surprise there, I think, it's fair to say.

ANDY SERWER, "FORTUNE" MAGAZINE: No, the only surprise is that drug companies continue to get away with it. Year after year, drug prices go up higher than inflation. Year after year, politicians say they're going to do something about it. Nothing ever happens.

Let's talk about the markets first of all, Soledad. Stocks trading down at this hour. Higher oil prices, 26 -- is that 36? The cameras are far away today, Jack.

HEMMER: That's 36.

SERWER: 36 down on the Dow. No, that's the same as it always is. My eye sight's getting worse. 36 points down on the Dow. Oil prices and the trade deficit is up to its record $61 billion.

Let's talk about the study that Soledad alluded to earlier by the AARP that just came out. Drug prices 2004, up 7.1 percent, the biggest since they started taking this survey in -- actually they started in 2000. And you can see here what's interesting about this is that -- and it is interesting. Inflation is about half the rate of those increases in drug prices. A drug industry group says this survey is misleading, by the way.

Let's look at some specific drugs and see, if you're taking some of these meds, how would you fare? Well, you can see here if you took Plavix, you would be paying a lot more. And so on. And so anyway, again, seniors, hits them hard and hits people hard, lower-income people, as well. So we'll see. The politicians talk, but nothing gets done.

O'BRIEN: Yes, anybody on a fixed income, they're sort of stuck.

SERWER: That's right. Yes. More and more every year.

O'BRIEN: All right. Andy, thanks.

SERWER: You're welcome.

HEMMER: In the meantime, Jack's got gas. I mean, the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: No, that's -- can't you rephrase that? I mean...

HEMMER: I've been waiting all morning to say that, actually.

CAFFERTY: The question, boys and girls, is have gasoline prices changed your lifestyle? Here's Aaron Brown -- no, that's later.

HEMMER: Almost got out of it.

CAFFERTY: Sally in Florida writes: "Of course the cost of gas has changed my life. I'm a middle class American. I skip going out to lunch. I don't make any extra stops after work and I won't be planning any expensive vacation trips this year."

Laura in Columbus, Ohio: "Instead of driving around to look for work, I 'coast' most of the time. This strategy does assist in gasoline costs. It also ticks off the drivers behind me.

Michelle in Buffalo, New York: "Rising gas prices have changed one aspect of my behavior. In the past, when acquaintances bought immense SUVs and homes deeper and deeper in the suburbs, I would sit in my city home and laugh behind their backs. Now I laugh out loud."

SERWER: Nice.

HEMMER: Well, this story's out there, all kinds of conversations about alternative fuels...

CAFFERTY: Right.

HEMMER: ... drilling in Alaska and the issues continue.

O'BRIEN: And the issue, how it's going to affect the economy and everywhere else. I mean, everybody talked about in their e-mails, what else they can't buy. It's a real problem.

SERWER: Right. It's topic A in the world of biz.

O'BRIEN: Yes, it is. That is true.

HEMMER: Thank you, Jack.

O'BRIEN: Let's get right to Aaron Brown. He's got a preview of what's ahead tonight on "NEWSNIGHT."

HEMMER: Shake him. Shake him.

O'BRIEN: Aaron, what's the matter?

(CROSSTALK)

O'BRIEN: No, of course, obviously we're having a little technical...

CAFFERTY: Now the secret's out, isn't it?

O'BRIEN: Well, it was never a secret. For God's sake, the man works so late at night. Do you think it's in live doing those teasers?

CAFFERTY: Well, why would we create that impression, because they go, "Well, thank you, Soledad. Coming up tonight on.."

O'BRIEN: I am...

CAFFERTY: Like he's just in the room next door.

O'BRIEN: I am grateful to be thanked on tape.

HEMMER: You're wrecking television's secret.

O'BRIEN: And I know he's on -- everyone knows he's on tape. I'm sure he's sleeping in. In any case, be sure to watch "NEWSNIGHT" this evening.

SERWER: It's a great program.

CAFFERTY: He's more animated on "NEWSNIGHT" than he is on "AMERICAN MORNING".

O'BRIEN: Generally speaking, he's more animated.

(CROSSTALK)

O'BRIEN: Ahead on -- how about I get to the tease? How about if I get right to the tease for CNN?

We're going to have much more of this morning on that massive breach of security involving an online information firm. Hundreds of thousands of Americans may have had their personal information stolen. "CNN LIVE TODAY" tells what consumers need to know, how worried they should be. That's coming up in the next hour with Daryn. AMERICAN MORNING, back in a moment. (COMMERCIAL BREAK)

HEMMER: Makeba Elliott is only 10 years old and she's already a national girl's wrestling champ. But Makeba is also the boy's wrestling champ in her home state of Illinois. She beat the best of the boys as well a year ago, the first girl ever to do that.

And Makeba and her father Mike Elliot are my guests now in Chicago. Nice to see you. Good morning to both of you.

MAKEBA ELLIOTT, ILL. BOYS STATE WRESTLING CHAMP: Good morning.

MIKE ELLIOTT, MAKEBA'S FATHER: Good morning.

HEMMER: Hey, and Makeba, what makes you so good?

MAKEBA ELLIOTT: My wrestling team and my coaches and my teammates and they give me a lot of support. And I'm just real dedicated to the sport. And I know nobody can beat me, so I just do my best.

HEMMER: You speak with a lot of confidence. What's wrapped around your neck there, Makeba?

MAKEBA ELLIOTT: My medals. I have three boy's state medals and three girl national medals.

HEMMER: Wow, you're doing all right so far, aren't ya?

Hey, Mike, three areas ago, when your daughter came to you and said she wanted to wrestle, what did you think?

MIKE ELLIOTT: Well, actually, it was four years ago. And I had no qualms about it because she's always been a natural athlete. She's always been really good at what she did. When she -- at a very early age she did karate and soccer and she excelled in that. And I had no doubt about it.

HEMMER: I understand your wife doesn't share your enthusiasm, though, does she?

MIKE ELLIOTT: Not for wrestling. My wife is very supportive of Makeba's track and field events. Makeba runs track and field also. She qualified in three events in the Junior Olympics two years in a row. But, no, she doesn't share my enthusiasm about her wrestling, about seeing her little girl on the mat with boys.

HEMMER: Hey, Makeba, what is it about wrestling boys? I read some comments here that you like to see them cry?

MAKEBA ELLIOTT: I like to see their coaches cry -- I mean, see them cry and their coaches, they let them. And the way -- when they see that I'm a girl, the way they start crying even more and they (INAUDIBLE) crying off the mat.

HEMMER: Well, you haven't won every match, though. What happens when you lose?

MAKEBA ELLIOTT: I don't want to be around anybody and I write their name down.

HEMMER: You write their name down?

MAKEBA ELLIOTT: So next time I wrestle them, I'll know who they are and I'll beat them.

HEMMER: So Makeba, what do you want to do when you grow up?

MAKEBA ELLIOTT: I want to be a physical doctor -- a physical therapist and then I want to win the Olympics and win the world trials.

HEMMER: Well, listen, good luck to you. Have a great summer, too, OK? It's coming up soon. Makeba, thanks. And Mike Elliott also there in Chicago.

MIKE ELLIOTT: Thank you.

HEMMER: All right. Keep it going. Here's Soledad.

O'BRIEN: Thank you very much. That's it for us on this AMERICAN MORNING. Let's get right to Daryn Kagan. She's at the CNN Center, going to take us through with the rest of the -- couple hours, ahead this morning. We'll see you back here tomorrow, AMERICAN MORNING.

Hey, Daryn, good morning.

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 April 12, 2005 - 09:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: We're open for business as well. It's just about half past the hour on this AMERICAN MORNING. The Michael Jackson trial set to resume in just a few hours. Coming up, is a key witness for the prosecution, the mother of the boy, accusing Michael Jackson of molestation. We're going to take a look at the story that she's likely to tell, and also the pretty incredible story that one mother told on the stand.
BILL HEMMER, CNN ANCHOR: Also, in a moment here, meet one tough girl. How tough? She's so tough she won the Illinois boy's wrestling title, not once, but twice. She says she likes to make boys cry after she beats them.

O'BRIEN: She's scary, in the good way.

HEMMER: I'm telling you. We'll talk to her a bit later this half hour.

O'BRIEN: I liked her.

Let's get a look at the headlines first, though. Here's Carol Costello.

Good morning.

CAROL COSTELLO, CNN ANCHOR: Good morning. Good morning to you.

Now in the news, at least five Iraqis killed in a morning suicide bombing. New video into CNN this morning shows debris from that attack. The apparent target, a U.S. military convoy. No word on U.S. casualties, but four Americans were hurt in a separate incident earlier today.

And violence taking place as Defense Secretary Donald Rumsfeld makes a surprise trip to Iraq. Rumsfeld taking part in a re- enlistment ceremony for about 100 American soldiers. He's also meeting with Iraqi officials, urging them to push ahead with a planned round of elections in December.

Within the half hour, John Negroponte is set to face lawmakers for confirmation hearings. He's been tapped as the first ever director of national intelligence. The post was created last December to help intelligence agencies coordinate in the fight against terrorism. Negroponte is expected to win approval for the post.

And some costly news about prescription drugs. A new study shows wholesale prices for popular brand-name medications rose more than 7 percent last year. That's twice the rate of inflation. The study was commissioned by the AARP. The group is expected to release the report later today. And of course, we'll keep you posted.

HEMMER: That we will. Thank you, Carol.

In the Michael Jackson trial, now another day of crucial testimony, this time from the mother of boy who says Jackson molested him more than 10 years ago.

Watching that trial in Santa Maria, here's Ted Rowlands.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT: The mother of one of Michael Jackson's alleged victims broke down on the stand saying, she regrets trusting Jackson with her then 13-year-old boy. The woman detailed his alleged relationship with Jackson, which she said started after she gave the pop star her son's phone number following a chance meeting in 1992. The mother testified that phone calls started, some lasting up to 90 minutes; then an invitation to Neverland. And within a few months, she said, her family was traveling the world with Jackson, and her son was sleeping in his bed.

One of the trips, she said, was to Monaco, where her son sat on Jackson's lap at the 1993 World Music Awards.

ANNE BREMNER, LEGAL ANALYST: He's a very charming, I think, individual. Somebody that was able to persuade this mother that he would not hurt her son. And she believed that.

ROWLANDS: The mother said Michael Jackson convinced her to allow her son to share his bed on a trip to Las Vegas, after she said Jackson cried and asked her, quote, "don't you trust me? We're family." The woman said Jackson ended up sleeping at her house, spending more than 30 nights, each time she said Jackson slept with her son in his room.

The woman said Jackson bought her gifts, including handbags, jewelry and a $7,000 boutique gift certificate.

JIM MORET, POOL REPORTER: You got the sense that she sold her son. You got the sense she received a gold bracelet, she received a necklace, she received a ring. In return, the implication is she allowed Michael Jackson to sleep at her house with her son for 30 nights.

ROWLANDS: On cross-examination, the mother admitted she hasn't talked to her son in 11 years, saying it wasn't her choice. She also admitted that she never saw any abuse, and that at times she was comfortable with Jackson sharing his bed with her son.

The mother was the latest in a series of witnesses allowed to testify about Michael Jackson's past. Her son, the accuser, is not expected to take the stand.

Jackson currently faces four counts of lewd acts on a minor, and has pleaded not guilty.

(on camera): The mother of the 1993 alleged victim is the 51st witness to testify for the prosecution. Prosecutors told the judge that they expect to bring the mother of the current accuser to the stand in the next few days.

Ted Rowlands, CNN, Santa Maria, California.

(END VIDEOTAPE)

HEMMER: Also that testimony in the Jackson trial is expected to start in about two hours -- Soledad.

O'BRIEN: It was proven long ago that the Earth is round, but our next guest says, well, the world is flat. He's not talking literally, but he does have some dire predictions about what the future might hold for Americans and the U.S. economy. "New York Times" columnist Thomas Friedman is our guest. His book the called "The World Is Flat."

Nice to see you, Thomas. Thanks for talking with us this morning.

THOMAS FRIEDMAN, AUTHOR, "THE WORLD IS FLAT"": Great to be with you, Soledad.

O'BRIEN: Thank you.

You're a guy who spent a lot of time in the Middle East. Much of your work, which of course we've all followed, is about conflict in the Middle East. What brought you to write a book that's really essentially about technology?

FRIEDMAN: Well, basically I went to Bangalor (ph), India, the capital of outsourcing, and India's silicon valley about a year ago to do a documentary. And while I was there, we shot about 10 hours of interviews in -- 60 hours of interviews, excuse me, in 10 days, and I found myself getting sicker and sicker after each interview, Soledad, because somewhere between the Indian entrepreneur who wanted to do my taxes from Bangalor, and the one who wanted to write my software from Bangalor, and the one who wanted to read my X-rays from the Bangalor and the one who wanted to trace my lost luggage on Delta Airlines from Bangalor, I realized that while I had been off covering the Middle East, something really big had happened in this whole kind of globalization technology world, that the global playing field had been flattened.

You know, 35 years ago, if you had a choice of being born a 'B' student in the Bronx or a genius in Beijing, you'd choose to be a 'B' student in the Bronx because you're life chances were so much greater than that genius in Beijing who was bottled up there. Well, when the world is flat, you do not want to be a 'B' student in the Bronx; you want to be the genius born in Beijing. And what this book is about is partly a how-to guide for moms and dads, how to think about what to do with your kids when the world is flat. O'BRIEN: And in fact you talk a lot about China, China is exploding. Is it only, well, primarily because of the sheer number of Chinese, or is there's something more to that, more of an emphasis on education and education that's relevant in today's world?

FRIEDMAN: Well, exactly. You know, when the world isn't just getting flat, but when it got flat, who happened to walk on to the playing field? Well, about three billion people had been out of the game, namely China, Russia and India. And these are cultures with very strong, very strong educational heritages and huge emphasis on education. That's why, you know, I say in the book when I was growing up, my parents said to me, Tom, finish your dinner, people in China and India are starving. But what I say to my girls, is, girls, finish your homework because people in China and India are starving for your jobs.

O'BRIEN: Are you saying the U.S. schools are not competitive overall? You talk about the 'B' student in the Bronx. Or are you saying when it comes to technology, the U.S. is not sort of creating enough of these -- from students into workers who are going to be able to move the ball forward on this new playing field?

FRIEDMAN: Well, I can only quote Bill Gates, who in an address to the Governor's Conference just a month ago, told the governors of our 50 states that high school education in America is obsolete, and that comes from a person whose job is to cream off the first-round intellectual draft choices from around the world and encourage them to innovate.

And so we have a real education problem. If you look at all the math tests, the international math tests, American kids are ahead in fourth grade, they're about even in eighth grade; by the time they graduate they're behind. It means they're get dumber the longer they're in high school. That's a terribly dangerous trend.

O'BRIEN: It is scary trend. Your write a lot about it in your new book. It's called "The World is Flat."

Thomas Friedman, columnist for "The New York Times," nice to see you. Thanks for talking with us.

FRIEDMAN: Great to be with you.

O'BRIEN: Thank you -- Bill.

HEMMER All right, 22 minutes before the hour now.

(WEATHER REPORT)

Also tomorrow here on AMERICAN MORNING, a special interview with world renowned opera soprano Debra Voigt. She was fired from a London production last year after being overweight. Since then, she's slimmed down, she had gastric-bypass surgery. Why she's going public now about her ordeal. We'll talk to her about it, tomorrow morning at 7:00 a.m. Eastern Time right here. Good story to tell. O'BRIEN: Yes, looking forward to it, coming up this morning, if gas prices don't break the bank, maybe prescription drug price also. Andy tell us about some alarming increases, as he minds your business, just ahead.

HEMMER: Also after the Masters, it was clear that Tiger Woods was playing with a heavy heart. The special role his father has played in his life, and now the difficult you challenges he faces today. That's ahead, after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: We've got this just in to CNN. We've been updating you all morning on this hostage situation taking place in Ennepetal, in Germany. That's about 40 miles northwest of cologne. We heard reports that somewhere between four and seven children, somewhere in the 10, 11, 12-year-old range, were taken off a bus at knifepoint, maybe a kitchen knife by some descriptions. We want more details now on the alleged hostage-taker.

Markus Esser is a journalist. He is covering the story for us this morning.

Markus, thanks for talking with us.

What can you tell us? What details do you have about the suspect?

MARKUS ESSER, GERMAN NEWSPAPER REPORTER: OK, it was at 1:00 p.m. a call reached the local police that a man had took hostages from a local public school bus, took some pupils who were inside this bus. Was forced by him with two kitchen knives. After a while, he stopped the bus on a small road, (INAUDIBLE) in this town. And he abducted four children, boys and girls, age 11 to 12 years, and then he forced them to follow him into (INAUDIBLE), this very small road, before he bound them with a rope. And when he went into that blind alley, and at the end of this blind alley, there's a turning point. And the left edge of this turning point, he directly went to a house, (INAUDIBLE). The woman who lived inside didn't want to let them in. So he kicked against the door and opened it himself and went inside.

As far as we know, as neighbors told us, they met the woman afterwards and she told them what has happened. The man forced the pupils to go into the cellar, and at the moment the local police took special forces to that scene and the forces talked to the man.

He is described as very nervous. He is aged 48 to 50. And he is born Iranian. And he lives at the moment, he lives in a public accommodation here in Ennepetal.

That's all our information at the time. And we don't know why this is. As far as we know, there are no conditions told to the police that's in effect at the moment.

O'BRIEN: Do you know if they've had any communication with the kidnapper? Is there any sort of negotiation ongoing, or are they still just surrounding the scene? We're looking, Markus, as you talk to us at some of the first pictures coming to us from the scene, I should say.

ESSER: Yes, they are talking to him. I don't know if they're talking by handheld or telephone, because I'm sure that they have located the house and I'm sure that they know which telephone will reach in that house. And there was some information that maybe the pupils are having mobile phones and talked with someone, but not very clear at the moment, talk the parents or someone outside.

O'BRIEN: Marcus Esser updating the situation in Ennepetal in Germany. He's saying that it appears the hostage-taker stopped the bus on the road, took four children, boys and girls, somewhere between 11 and 12 years old, forced them to follow him down a blind alley, went into a house, kicked his way essentially into a house. People didn't want to let him in. The special forces and the police then arrived. They've surrounded the area, as we can see from the videotape.

They say, some are describing the suspect as very nervous, somewhere between 48 and 50 years old, Iranian born. No word on a motive at this time. No conditions have been set forth that the journalists know about from the scene. There has been no communication established with the hostage taker.

We will update you on this story as we continue to follow it all morning. A short break and we're back in just a moment. Stay with us.

(COMMERCIAL BREAK)

O'BRIEN: Brand name prescriptions is rapidly rising. With look at that and a check on Wall Street this morning, Andy Serwer is "Minding Your business."

No real surprise there, I think, it's fair to say.

ANDY SERWER, "FORTUNE" MAGAZINE: No, the only surprise is that drug companies continue to get away with it. Year after year, drug prices go up higher than inflation. Year after year, politicians say they're going to do something about it. Nothing ever happens.

Let's talk about the markets first of all, Soledad. Stocks trading down at this hour. Higher oil prices, 26 -- is that 36? The cameras are far away today, Jack.

HEMMER: That's 36.

SERWER: 36 down on the Dow. No, that's the same as it always is. My eye sight's getting worse. 36 points down on the Dow. Oil prices and the trade deficit is up to its record $61 billion.

Let's talk about the study that Soledad alluded to earlier by the AARP that just came out. Drug prices 2004, up 7.1 percent, the biggest since they started taking this survey in -- actually they started in 2000. And you can see here what's interesting about this is that -- and it is interesting. Inflation is about half the rate of those increases in drug prices. A drug industry group says this survey is misleading, by the way.

Let's look at some specific drugs and see, if you're taking some of these meds, how would you fare? Well, you can see here if you took Plavix, you would be paying a lot more. And so on. And so anyway, again, seniors, hits them hard and hits people hard, lower-income people, as well. So we'll see. The politicians talk, but nothing gets done.

O'BRIEN: Yes, anybody on a fixed income, they're sort of stuck.

SERWER: That's right. Yes. More and more every year.

O'BRIEN: All right. Andy, thanks.

SERWER: You're welcome.

HEMMER: In the meantime, Jack's got gas. I mean, the "Question of the Day."

JACK CAFFERTY, CNN ANCHOR: No, that's -- can't you rephrase that? I mean...

HEMMER: I've been waiting all morning to say that, actually.

CAFFERTY: The question, boys and girls, is have gasoline prices changed your lifestyle? Here's Aaron Brown -- no, that's later.

HEMMER: Almost got out of it.

CAFFERTY: Sally in Florida writes: "Of course the cost of gas has changed my life. I'm a middle class American. I skip going out to lunch. I don't make any extra stops after work and I won't be planning any expensive vacation trips this year."

Laura in Columbus, Ohio: "Instead of driving around to look for work, I 'coast' most of the time. This strategy does assist in gasoline costs. It also ticks off the drivers behind me.

Michelle in Buffalo, New York: "Rising gas prices have changed one aspect of my behavior. In the past, when acquaintances bought immense SUVs and homes deeper and deeper in the suburbs, I would sit in my city home and laugh behind their backs. Now I laugh out loud."

SERWER: Nice.

HEMMER: Well, this story's out there, all kinds of conversations about alternative fuels...

CAFFERTY: Right.

HEMMER: ... drilling in Alaska and the issues continue.

O'BRIEN: And the issue, how it's going to affect the economy and everywhere else. I mean, everybody talked about in their e-mails, what else they can't buy. It's a real problem.

SERWER: Right. It's topic A in the world of biz.

O'BRIEN: Yes, it is. That is true.

HEMMER: Thank you, Jack.

O'BRIEN: Let's get right to Aaron Brown. He's got a preview of what's ahead tonight on "NEWSNIGHT."

HEMMER: Shake him. Shake him.

O'BRIEN: Aaron, what's the matter?

(CROSSTALK)

O'BRIEN: No, of course, obviously we're having a little technical...

CAFFERTY: Now the secret's out, isn't it?

O'BRIEN: Well, it was never a secret. For God's sake, the man works so late at night. Do you think it's in live doing those teasers?

CAFFERTY: Well, why would we create that impression, because they go, "Well, thank you, Soledad. Coming up tonight on.."

O'BRIEN: I am...

CAFFERTY: Like he's just in the room next door.

O'BRIEN: I am grateful to be thanked on tape.

HEMMER: You're wrecking television's secret.

O'BRIEN: And I know he's on -- everyone knows he's on tape. I'm sure he's sleeping in. In any case, be sure to watch "NEWSNIGHT" this evening.

SERWER: It's a great program.

CAFFERTY: He's more animated on "NEWSNIGHT" than he is on "AMERICAN MORNING".

O'BRIEN: Generally speaking, he's more animated.

(CROSSTALK)

O'BRIEN: Ahead on -- how about I get to the tease? How about if I get right to the tease for CNN?

We're going to have much more of this morning on that massive breach of security involving an online information firm. Hundreds of thousands of Americans may have had their personal information stolen. "CNN LIVE TODAY" tells what consumers need to know, how worried they should be. That's coming up in the next hour with Daryn. AMERICAN MORNING, back in a moment. (COMMERCIAL BREAK)

HEMMER: Makeba Elliott is only 10 years old and she's already a national girl's wrestling champ. But Makeba is also the boy's wrestling champ in her home state of Illinois. She beat the best of the boys as well a year ago, the first girl ever to do that.

And Makeba and her father Mike Elliot are my guests now in Chicago. Nice to see you. Good morning to both of you.

MAKEBA ELLIOTT, ILL. BOYS STATE WRESTLING CHAMP: Good morning.

MIKE ELLIOTT, MAKEBA'S FATHER: Good morning.

HEMMER: Hey, and Makeba, what makes you so good?

MAKEBA ELLIOTT: My wrestling team and my coaches and my teammates and they give me a lot of support. And I'm just real dedicated to the sport. And I know nobody can beat me, so I just do my best.

HEMMER: You speak with a lot of confidence. What's wrapped around your neck there, Makeba?

MAKEBA ELLIOTT: My medals. I have three boy's state medals and three girl national medals.

HEMMER: Wow, you're doing all right so far, aren't ya?

Hey, Mike, three areas ago, when your daughter came to you and said she wanted to wrestle, what did you think?

MIKE ELLIOTT: Well, actually, it was four years ago. And I had no qualms about it because she's always been a natural athlete. She's always been really good at what she did. When she -- at a very early age she did karate and soccer and she excelled in that. And I had no doubt about it.

HEMMER: I understand your wife doesn't share your enthusiasm, though, does she?

MIKE ELLIOTT: Not for wrestling. My wife is very supportive of Makeba's track and field events. Makeba runs track and field also. She qualified in three events in the Junior Olympics two years in a row. But, no, she doesn't share my enthusiasm about her wrestling, about seeing her little girl on the mat with boys.

HEMMER: Hey, Makeba, what is it about wrestling boys? I read some comments here that you like to see them cry?

MAKEBA ELLIOTT: I like to see their coaches cry -- I mean, see them cry and their coaches, they let them. And the way -- when they see that I'm a girl, the way they start crying even more and they (INAUDIBLE) crying off the mat.

HEMMER: Well, you haven't won every match, though. What happens when you lose?

MAKEBA ELLIOTT: I don't want to be around anybody and I write their name down.

HEMMER: You write their name down?

MAKEBA ELLIOTT: So next time I wrestle them, I'll know who they are and I'll beat them.

HEMMER: So Makeba, what do you want to do when you grow up?

MAKEBA ELLIOTT: I want to be a physical doctor -- a physical therapist and then I want to win the Olympics and win the world trials.

HEMMER: Well, listen, good luck to you. Have a great summer, too, OK? It's coming up soon. Makeba, thanks. And Mike Elliott also there in Chicago.

MIKE ELLIOTT: Thank you.

HEMMER: All right. Keep it going. Here's Soledad.

O'BRIEN: Thank you very much. That's it for us on this AMERICAN MORNING. Let's get right to Daryn Kagan. She's at the CNN Center, going to take us through with the rest of the -- couple hours, ahead this morning. We'll see you back here tomorrow, AMERICAN MORNING.

Hey, Daryn, good morning.

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