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American Morning

New Year 2007; Saddam Hussein Execution; Honoring Ford; Behind The Numbers; "Banker To The Poor"; Minding Your Business

Aired January 01, 2007 - 06:00   ET

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


SOLEDAD O'BRIEN, CNN ANCHOR: It is New Year's Day 2007. More than a million people rang in the new year here in New York. We've got the sights and the sounds from Times Square and around the world this morning.
JOHN ROBERTS, CNN ANCHOR: In Iraq, a tragic milestone, 3,000 American troops killed in action now. The White House responding as President Bush prepares for that major speech on the war.

S. O'BRIEN: And America in mourning. Thousands are expected at the Capitol rotunda today to pay their respects to President Gerald Ford and pray for the loving widow that he leaves behind. We're live on this new year's edition of AMERICAN MORNING.

And welcome, everybody. Good morning. It is Monday, January 1st.

As you look at live pictures of the Capitol, the flags are flying at half-staff today. And they're honoring Gerald Ford, who is now lying in state in the Capitol rotunda. They'll open up again to public viewing at 9:00 a.m. Eastern Time and continue until 6:00 in the evening.

Welcome, everybody. I'm Soledad O'Brien.

ROBERTS: And I'm John Roberts in for Miles O'Brien this week.

An amazing scene at Times Square. More than a million people down there. It's a new record.

S. O'BRIEN: It was absolutely chaotic. And, of course, more chaotic when the weather is good. Everybody comes out for that big, big party. I'm fighting my way to get home yesterday.

ROBERTS: And, of course, our cars didn't arrive this morning.

S. O'BRIEN: No. No.

ROBERTS: So it was walk to work for me and you took a Pedicab.

S. O'BRIEN: Yes, I did.

ROBERTS: That's great.

S. O'BRIEN And I arrived in one piece, I'm happy to say.

ROBERTS: That's a very New York thing to do.

S. O'BRIEN They say a million people watched the ball drop in person yesterday and, of course, many millions more than that were watching it on TV. Let's get right to our senior correspondent, Allan Chernoff. He's in Times Square, the morning after.

Oh, you look all right. How you doing, Allan?

ALLAN CHERNOFF, CNN CORRESPONDENT: Happy New Year, Soledad.

S. O'BRIEN Happy New Year to you. Good morning.

CHERNOFF: Good morning to you.

Would you believe that Times Square is still pretty busy at this hour? Of course, not like it was about six hours ago, but there are plenty of people they're. They're taking down the scaffolding, also the speakers and the light systems. And the sanitation crew. A couple of hours ago, the dirt here was ankle deep. They've been working, coming down from 57th Street, up from 34th and right now the sanitation crews are just two blocks south of us. They've got a lot of work. So, let me tell you, their trucks are working overtime because last night, boy, this was one heck of a party.

(BEGIN VIDEOTAPE)

CROWD: Six, five, four, three, two, one.

CHERNOFF, (voice over): In New York's Times Square, it was estimated more than a million revelers, a record number, ushered in the new year. The giant crystal ball dropping into what looked like a sea of humanity.

UNIDENTIFIED FEMALE: Your plans for 2007?

UNIDENTIFIED FEMALE: Oh, all the best! Peace! Peace and good wishes to everybody!

UNIDENTIFIED FEMALE: Plans for 2007? Your resolutions?

UNIDENTIFIED FEMALE: None whatsoever. Just have a good time.

UNIDENTIFIED FEMALE: Have a good time. That works. What about you?

UNIDENTIFIED FEMALE: Have a good time and hopefully fall in love and stay alone (ph).

CHERNOFF: By the time 2007 arrived, the big crowd was well versed in counting backwards. Each hour brought another mock countdown complete with fireworks and confetti.

In Key West, Florida, they don't drop a crystal ball to bring in the new year, they drop a drag queen named Sushi (ph) in a big red stiletto. They've been doing it now for 10 years. A Texas-sized party in San Antonio with some 250,000 people taking part in the festivities. There were fireworks on Chicago's lakefront to welcome in 2007. And some celebrants even waxed alcoholic on the difference between New Year's in the big apple and the second city.

UNIDENTIFIED FEMALE: I'm from New York and here I am in Chicago celebrating New Year's Eve, yes!

UNIDENTIFIED FEMALE: We've got the bears. That's our ball.

UNIDENTIFIED FEMALE: Yes!

CHERNOFF: There was another big street party in New Orleans, where they dropped a big pot of gumbo to signal a new year in the city still struggling to come back from Hurricane Katrina.

Of course, it wouldn't be a New Year's Eve without plenty of music. And this year was no exception. From the Goo Goo Dolls in California, to the B-52s in Atlantic City, to Lionel Richie in Las Vegas, they were singing in the new year, 2007.

(END VIDEOTAPE)

CHERNOFF: Well, let's wish a very peaceful, happy and healthy 2007 for all of us.

Soledad.

S. O'BRIEN I'll second that. Allan Chernoff, happy New Year to you. Allan, thank you.

John.

ROBERTS: Unfortunately, it was a deadly start to 2007 in Thailand. New Year's celebrations canceled in that country after bombings killed three people. A total of eight explosions shook Bangkok early on Sunday. The blasts injured 20 people. including some American tourists. Troops are now patrolling parts of the city. It's still not clear who's responsible. So far no one is pointing a finger at Islamic extremists who are linked to past attacks in Thailand.

Now to Iraq and a new number to remind us about the sacrifice of war this New Year's day. The U.S. military death toll in Iraq is now at 3,000, following the deadliest month of 2006 for American troops. The military is also on high alert following the execution of Saddam Hussein and fears that it could spark even more sectarian violence. CNN's Ryan Chilcote joins us live from Baghdad with more.

And, Ryan, it really is a tragic milestone that we reached today.

RYAN CHILCOTE, CNN CORRESPONDENT: No doubt, John, a grim milestone, particularly, I think, when it's coupled with the fact that more than 22,000 U.S. troops have been wounded since the war began. A large number of whom would also likely be dead if it wasn't for the advancements in battlefield medicine over the last couple of decades. That milestone comes as the violence is on the rise here in Iraq for both Iraqis and U.S. troops.

The month of December was the deadliest month for U.S. troops in two years. And let's not forget that this is happening against the backdrop of an increasingly violent Iraq. The U.N. estimating that more than 100 Iraqis are killed a day.

John.

ROBERTS: You know, Ryan, we've seen this cell phone video that was taken of his execution and the dialogue that went on before Saddam was actually executed is quite striking, arguments back and forth, and some of his captors yelling "Muqtada, Muqtada, Muqtada!" It's not like they were saying, "down with the tyrant, viva (ph) democracy." They're chanting the name of a Shiite cleric who is in charge of the biggest militia in Iraq. What does that say about the state of affairs there and who's really in charge?

CHILCOTE: Well, it is very unfortunate in all, but I think many people see that as many Sunnis going into this execution already believe that the government -- a Shiite-led government was really pursuing revenge in the execution of Saddam Hussein. That it wasn't about historical justice. That they were just seeking revenge. That this was a government that wasn't interested in national reconciliation.

Certainly now with that video out there, those sectarian exchanges with the guards taunting Saddam Hussein, captured on that video, even more Sunnis will, I think, that conviction that the government is not an impartial government, not a government of national unity, but a government that's really, you know, following out a Shiite agenda. That those convictions, I think, are going to be confirmed by many, many Sunnis here.

So it is very disturbing, very unfortunate, I think, development, when you consider that the most important thing right now, of course, for Iraq is to -- for Iraqis to come to some kind of national reconciliation. We are on the brink of a civil war here, brutal sectarian violence. Everyone that felt that Saddam Hussein should be executed still even questioned that this is going to help bring that violence to a close.

John.

ROBERTS: Yes, a lot of people, Ryan, as well, wondering if there was sort of a rush to get rid of him, where the Kurds denied their sense of justice as well.

Ryan Chilcote, thanks very much. We'll check back with you as the day progresses.

Soledad.

S. O'BRIEN Today, President Bush and the first lady, Laura Bush, will join their fellow Americans in paying respects to the late President Gerald R. Ford as he lies in state at the Capitol. AMERICAN MORNING's Bob Franken is live for us on Capitol Hill. Good morning, Bob.

BOB FRANKEN, CNN CORRESPONDENT: Good morning, Soledad.

And the accidents of fate that made him president meant that he would lie in state with the highest tributes of his nation. But Gerald Ford always liked to present himself as a common man, a family man.

(BEGIN VIDEOTAPE)

FRANKEN, (voice over): Throughout the day, family members came to share their private grief with the public. Sons Jack and Steve Ford stayed on to personally thank many of the ordinary citizens who waited hours to pay their respects to the man called to lead the nation out of the Watergate debacle.

UNIDENTIFIED MALE: He helped us get through a bad time.

HUGH KEARNEY, BALTIMORE, MARYLAND: It was a very calming time after, you know, a very difficult period.

FRANKEN: On Saturday night, there were the eulogies from the highly placed, like the vice president, Ford's former chief of staff.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: He assumed power without assuming errors.

FRANKEN: The somber occasion was also notable for those who did not show up. President Bush flies back from Crawford, Texas, today and heads straight to the Capitol. Neither his father, the first President Bush, nor President Clinton was here. For whatever reason, six of the nine Supreme Court justices were absent and most of the new congressional leaders have not showed up, Republicans as well as Democrats, at least so far. The final memorial service in Washington is held at the National Cathedral on Tuesday. Between now and then, those who were not on the "a" list get their chance to glimpse history and the man that everyone remembers as honest and decent.

JOHN BYERS, SUMMIT, NEW JERSEY: It's kind of nice now that he's passed and everyone's looking back at the positive things that he did and it's nice to be a part of it.

(END VIDEOTAPE)

FRANKEN: And typical of Gerald Ford, he wanted a low-key funeral, relatively low key, anyway, and he's getting it.

Soledad.

S. O'BRIEN Bob Franken for us this morning on Capitol Hill.

Thanks, Bob.

John. ROBERTS: Coming up, you hear the numbers, but rarely do you hear about the people behind them. We'll meet a mother whose son is among the 3,000 Americans killed in Iraq. Hear how she is helping others cope with tragedy.

Plus, while the president forms his strategy in Iraq, a fresh look at how Americans view the war in the new year. Straight ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN The war in Iraq has surpassed a new milestone, 3,000 American troops killed. The Pentagon reporting that Specialist Dustin Donica of Spring, Texas, died on Thursday while in patrol in Baghdad. His name was released on Sunday.

And while the 3,000 mark naturally draws attention, the personal toll is rarely counted. Each number, of course, represents a person, a son, a daughter, a father, a mother who leaves behind a family that struggles to cope.

(BEGIN VIDEOTAPE)

DEB YASHINSKI, SON KILLED IN IRAQ: This is the book that I started for him once we found out he was gone.

S. O'BRIEN Everywhere in Deb Yashinski's home are reminders of her son, Michael. Pictures, paintings, medals, his ashes.

YASHINSKI: He was my baby. My buddy. My life. He was my son.

S. O'BRIEN Deb lost her son, Army Sergeant Michael Yashinski, three years ago on Christmas Eve in Iraq.

YASHINSKI: About 1:00 or 2:00 in the afternoon, two soldiers from Ft. Bragg knocked on the door, came inside, and said, "on behalf of a grateful nation."

S. O'BRIEN These days, Deb's life is about remembering those who have been lost and reaching out to those they've left behind.

YASHINSKI: This is gold star moms. This is where I spend most of my time.

S. O'BRIEN Every day she goes online looking for new gold star moms, mothers who have lost their children to war.

YASHINSKI: The only name I recognized was this one.

S. O'BRIEN During one of those searches, she found Patricia Desens.

YASHINSKI: I called her and I said, would you be willing to meet? And she said, "yes."

S. O'BRIEN That initial contact turned into a friendship, which turned into a unique bond.

YASHINSKI: I always say, you know, my phone is open 24/7. If she is having a bad day and calls me or I'm having a bad day and call her, we know that we're not going to tell the other one, well, get over it. You know, you've got to keep going.

S. O'BRIEN Yes.

Patricia's son, Army Specialist Daniel Desens Jr., died in a firefight near Baqubah, Iraq, in June 2004. He was only 20 years old.

PATRICIA DESENS, SON KILLED IN IRAQ: If I could leave this earth and go where he is, I'd be happy. But it's not my time. I'm not that special angel. He was.

YASHINSKI: See, they've got a book of everyone that's been . . .

DESENS: Right.

YASHINSKI: North Carolina residents.

S. O'BRIEN The women, who share not only loss, they share a goal.

YASHINSKI: The most important thing, I think, to all of us is, we don't want our children forgotten. You're saying 3,000. Well, number 436 probably doesn't mean much to you. But it meant the world to me. Because number 436 was my son. Each one of those numbers was somebody, someone.

(END VIDEOTAPE)

S. O'BRIEN At least 111 service members were reported killed in December. It was the deadliest month of 2006 for the U.S. military.

John.

ROBERTS: It seems that Americans have some pessimistic views as to what the new year has in store for us all. According to a new poll from the Associated Press and AOL News, 60 percent think the U.S. will be hit by a terrorist attack in 2007. The same number of people think a biological or nuclear weapon will be unleashed somewhere else in the world. And 70 percent think a major, natural disaster will hit the United States.

When it comes to Iraq, only 29 percent think the U.S. is going to withdraw this year. And 40 percent think the situation in Iraq will get worse in the course of 2007.

But despite all that, 72 percent of Americans say they do remain optimistic about what 2007 holds for the country. While 89 percent are optimistic about the new year for themselves and their families.

S. O'BRIEN Sixteen minutes past the hour. I'm optimistic Chad Myers is going to give us a decent forecast today.

Chad, when did the rain start? I woke up and there was pouring rain for these people.

(WEATHER REPORT)

S. O'BRIEN Ahead this morning, both sides of the coin. First the scandals and the judgments that changed the way America did business in 2006. We'll take a look back.

And then, on the opposite side, we'll meet a banker who's changing the world a dollar at a time. We sit down with the winner of the 2006 Nobel Peace Prize. You're watching AMERICAN MORNING. We're back in just a moment.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

MAJ KEITH RUPPER (ph): Hello, I'm Major Keith Rupper in Mosul, Iraq. I want to say happy holidays to my wife, Donna, my son, Ryan, my daughter, Erin (ph) in Fort Mill, South Carolina. Happy holidays.

(END VIDEO CLIP)

S. O'BRIEN We'll get a chance to hear from some of our troops this morning.

The man is known as the banker to the poor. His name is Muhammad Yunus and he is the winner of the 2006 Nobel Peace Prize, along with his bank, Grameen Bank. It was all founded on a very revolutionary idea that you could help end world poverty by lending very small amounts of money to very poor people. Well, Yunus originally took his idea to the local bank in Bangladesh. And as he writes in his book, they pretty much laughed him out of the room. Yunus sat down with me recently and I asked him why he decided then to open up his own bank.

(BEGIN VIDEOTAPE)

MUHAMMAD YUNUS, "BANKER TO THE POOR": What I tried to do is to bring this tiny loans to the poor people in the village, but the bank doesn't want to do that. After I became -- I said, OK, I'll become a guarantor. I'll sign all your papers.

S. O'BRIEN How much money are we talking about?

YUNUS: Oh, about $300, $200 in total.

S. O'BRIEN And then you . . .

YUNUS: So finally they did it and it worked. People were paying back. So I was very excited. But they were not very keen on continuing with this. Then I said, why am I pushing them? Why don't I just create my own bank instead of relying on their desires and wishes and their rules?

S. O'BRIEN But the bank you created was almost like the anti- bank. I mean, it didn't have the roles and the setup and the way you'd pay back a loan like a normal bank does. Your bank went completely the opposite. Tell me about your bank.

YUNUS: Our bank is the normal bank.

S. O'BRIEN OK, OK, I stand corrected.

YUNUS: What we did -- I would call them conventional banks. We kind of turned around everything they do in other way and we created what we call Grameen Bank. We don't take collateral. They cannot function without collateral. They go to the rich. We go to the poor. They go to the man. We go to woman. They give big loans. We give tiny loans. They asked people to come to their office. We go to people's homes.

S. O'BRIEN You make people pay back in tiny, tiny increments all the time.

YUNUS: Tiny, tiny -- all though it just . . .

S. O'BRIEN So no one gets way into debt.

YUNUS: Exactly. And these are income-generating loans, so they can earn money. As you earn money, you pay a little bit on the side. So along the way, you pay back the entire loan. And you feel very happy that you paid back and you have something left for yourself.

S. O'BRIEN A big reason you won the Nobel Prize, along with the bank, is because it worked. You've now loaned out $3.8 billion at last count.

YUNUS: It works. Yes, it's -- every year, another billion adds up as we go around. Right now Grameen Bank, which works only in Bangladesh, has nearly 7 billion borrowers, 97 percent of them are women. We lend out nearly $1 billion a year in tiny loans averaging about $130.

S. O'BRIEN How much money of that billion has come back?

YUNUS: Ninety-nine percent of the money comes back on time. You get back more after the time is over, but they still need to pay it back. We don't worry about getting our money back because even after they became bad debts, they still pay back, only takes longer time. So you can almost say that the poor always pay back. Not only working in Bangladesh today, it's working all over the world. Almost every country in the world has now a Grameen-type program going on.

S. O'BRIEN You have an interesting theory that we'll end on this morning, which is, you could help end terrorism if you had more projects like Grameen Bank. How so?

YUNUS: Yes, because object (ph) poverty is what drives people into all kinds of extreme things. And people who are promoting extreme ideas, they find it really good breeding ground when you have object (ph) poverty. So terrorism and poverty is very closely linked. So if you adjusted (INAUDIBLE) poverty, you reduce the chances of terrorism. S. O'BRIEN Professor Muhammad Yunus. It's so rare that I read a book by an economist about banking and laugh through a lot of it because the stories you tell about how you got to form this bank are very, very funny. Congratulations on the prize.

YUNUS: Thank you very much.

S. O'BRIEN And thanks for talking with us this morning.

YUNUS: Thanks a lot. Thank you, Soledad.

S. O'BRIEN We appreciate it.

YUNUS: Thank you.

(END VIDEOTAPE)

MILES O'BRIEN, CNN ANCHOR: Out with the old, in with the new. But before we do that, Ali Velshi is "Minding Your Business," taking a look back at 2006, the year that was in business. Ali, I think when you think of 2006, you've got to at least spend a little bit of time, maybe a lot of time, on corporate crime.

ALI VELSHI, CNN CORRESPONDENT: I've got to tell you, when I was in Houston for the Enron conviction of Ken Lay and Jeff Skilling, I thought that was closure to corporate crime. I thought we had seen all these things in the early 2000s and we were going to move on. And then, of course, just over a month later, Ken Lay died. Not going to prison. Jeff Skilling has started his prison sentence.

But who knew that Enron wasn't going to be the big story of the year in corporate crime? By about the middle of the year we had started to hear this word "pre-texting," which no one had heard about. HP, Hewlett-Packard, tried to do what people think was a good thing. They had a leak on the board. Now a company's entitled to not have its board members leak things that they don't want leaked. But instead of sort of saying to them, guys, we've got to stop this and we're going to investigate, they went and did something called pre- texting, pretending to be board members and the journalists who they were supposedly talking to and get their phone records. And this was pretty widespread. So we've got charges in that case.

M. O'BRIEN: And it was a story that just kept unraveling in a way that was so detrimental to HP.

VELSHI: Right. Completely.

You know I remember the day that we heard about Enron all those years ago. You knew that day this was going to be a big story. But the HP thing kind of did unravel. You didn't really know it was going to be a big deal. So that's something that we're going to be talking about into 2007.

And then the other story, which I've got to tell you has been very difficult to express on a daily basis but it's happening, this options backdating story. The idea of betting on a horse after you know the race has run.

M. O'BRIEN: That's a good bet. I like those bets. Usually you win.

VELSHI: Yes, right. So you get to choose the price at which your options are granted. And if you picked a really low day, then you sell your stock and you make the difference. In some cases, United Health Care CEO. I mean for several years in a row, he got his options awarded at the lowest price in the year. Home Depot was implicated. All sorts of companies are investigating. Two hundred companies are either being investigated by the SEC, the Department of Justice, state's attorney generals or themselves.

M. O'BRIEN: Widespread practice. Even Apple.

VELSHI: Even Apple. And Apple is one of those companies that said early on, we did our own investigation, we found out there were some problems and we're going to fix them. And then right toward the end of the year we found out it might be more serious than we thought. There were allegations that someone fudged some minutes of a meeting.

This is a problem. It's hard for investors to connect to it, but it comes down to integrity. Enron was about honesty and integrity and these options backdating stories about honesty and integrity. So we need to see. It's been a strong market year, but will investors continue to believe that their money is safe in the stock market when boards aren't looking out for their interests?

M. O'BRIEN: Ali Velshi, our man of complete integrity on the business front. Thank you very much.

ROBERTS: Coming up, from minimum wage hikes to gun-toting judges. I'll look at some of the notable new laws in this new year.

And the nation says good-bye to former President Gerald Ford. How the former first family is coping and how they're thanking the visit visitors paying their respects on Capitol Hill.

AMERICAN MORNING is coming right back.

(COMMERCIAL BREAK)

S. O'BRIEN: America in mourning today. The public and President Bush will pay their final respects to President Gerald Ford today and pray for the loving widow that he leaves behind.

ROBERTS: The high cost of war. The number of U.S. troops who have died in Iraq hit 3,000. The president is responding while still waiting to reveal his new plans for Iraq.

S. O'BRIEN: And ringing in the new year with some exceptional new laws. Wine drinkers raise a glass as minimum wage workers celebrate on this AMERICAN MORNING.

Welcome back, everybody. Happy New Year. It is Monday, January 1st. I'm Soledad O'Brien.

ROBERTS: And I'm John Roberts, in for Miles O'Brien.

Thanks for joining us this morning.

How many people do you think out there are just going to bed?

S. O'BRIEN: I ran into a lot of people this morning coming into work.

ROBERTS: How many are just getting up? And how many fell asleep at the television last night?

S. O'BRIEN: A large number if you add them all up.

ROBERTS: Sure.

S. O'BRIEN: Let's begin this morning on Capitol Hill, where mourners will again file by the casket of President Gerald Ford as he lies in state at the Capitol Rotunda.

AMERICAN MORNING'S Bob Franken is live for us there this morning.

Good morning to you, Bob.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning, Soledad.

And Gerald Ford was one of those politicians who really treasured being what he would consider the common man, and so he would have been comfortable without the scene in the rotunda. Yes, it was this very, very elaborate lying-in-state tribute that presidents of the United States get, but those who were coming to pay their last respects were just common citizens, people who waited in line, sometimes a couple of hours, to get inside and get a glimpse, get a glimpse of the casket bearing the man who had had such a pivotal role in bringing back the United States from all the problems of Watergate, but viewing somebody who just really welcomed the time that he spent with his fellow citizens. They got a glimpse of history.

Many people bringing their children. The children would oftentimes be heard making comments as they walked past. A very quiet, somber affair. The high and mighty have been making their appearances sporadically.

But the big finish to the commemoration of Gerald Ford's life will actually come tomorrow when his casket is taken from the Capitol behind me to the National Cathedral across town for a ceremony that include eulogies from President Ford (sic) -- President Bush, rather. President Bush, by the way, is coming back from the ranch in Texas, and this afternoon he'll pay his respects at the Capitol. And then Gerald Ford, after he leaves Washington, will go back to Grand Rapids, where he'll be buried where he came from, a man of the Midwest, a mainstream Republican -- Soledad.

S. O'BRIEN: It was interesting to see his sons really thanking members of the public who came by to pay their respects. You know, each and every person. I thought that was pretty remarkable.

FRANKEN: It was a very pleasant sight to see. And that's exactly the word. They were just there saying, hey, we did come from this family that exists at the highest levels of U.S. society. We just wanted to thank you, our fellow citizens.

S. O'BRIEN: Bob Franken for us on Capitol Hill this morning.

Thank you, Bob -- John.

ROBERTS: As Bob mentioned, President Bush and the first lady return to Washington today after ringing in the new year in Crawford. Iraq and President Gerald Ford were on his mind on this New Year's Day.

We get more from CNN's Elaine Quijano.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: President Bush returns to Washington today to pay his respects to the late President Gerald Ford. The president spent nearly a week on his Crawford ranch, making two public appearances. One to pay tribute to Mr. Ford, the second after huddling with his war cabinet to discuss Iraq.

But the president chose not to appear before the cameras in the wake of Saddam Hussein's execution. Instead, he released a carefully- crafted written statement, calling the execution a "milestone," but warning that it would not bring an end to the violence. That was underscored as the Iraq war reached a grim marker. December was the deadliest month for U.S. forces in 2006.

Still, President Bush has signaled he's not ready to announce changes to his Iraq policy just yet, saying that he wants to consult further with the Iraqi government and members of Congress. Bush aides say an announcement is expected early this month.

Elaine Quijano, CNN, Crawford, Texas.

(END VIDEOTAPE)

ROBERTS: The U.S. military, meanwhile, has hit another tragic milestone in Iraq. Three thousand American troops have now died in Iraq since the war began in 2003 -- Soledad.

S. O'BRIEN: Well, a new year brings some new laws. Seven states are raising their minimum wage -- Arizona, California, Delaware, Massachusetts, New York, North Carolina and Pennsylvania. The federal minimum wage is $5.15 an hour, and the state increases go as high as $7.50.

In Illinois, a new law goes after copycat music groups. Tribute acts have to make it clear in their advertising that they're a salute to an actual band.

Alaska and South Carolina adopting laws to help curb school bullies.

And in Wisconsin, police have to tape interrogations of felony suspects either on videotape or audiotape, and that is to prevent wrongful convictions.

CNN's Allan Chernoff back at Times Square with more on this for us this morning.

Good morning to you, Allan.

ALLAN CHERNOFF, CNN SR. CORRESPONDENT: Good morning once again, and Happy New Year, Soledad.

You know, people do some crazy things for the new year. And it's not just at the parties. If you consider some of the other laws that are taking effect today, well, you could say some of them are pretty wacky.

(BEGIN VIDEOTAPE)

CHERNOFF (voice over): Pistol-packing judges could become the norm in Kansas. A new state law permits judges to carry concealed weapons into their courtrooms.

UNIDENTIFIED MALE: I would have no problem with that. I would have no problem with that.

UNIDENTIFIED FEMALE: I don't like that.

CHERNOFF (on camera): You wouldn't trust a judge to be a good shot?

UNIDENTIFIED FEMALE: No. No. I wouldn't trust anybody with a gun. No.

CHERNOFF (voice over): California is cracking down on pranksters. It's now illegal to ride in the trunk of a car.

UNIDENTIFIED MALE: Dead or alive.

CHERNOFF: Some live-wire teens apparently have been doing it. Now it will cost them $100 if caught.

And anyone taking more than 25 copies of a complimentary newspaper in California could be subject to a $250 fine and jail time for a second offense.

It's no longer a legal offense to take home a half-empty bottle of wine from a restaurant in Illinois. Patrons now get to drink every drop they paid for, perfect for New Year's Eve.

2007 rings in new rights for animals. In California, it's now illegal to keep a dog tethered for more than three hours. If convicted of a misdemeanor, the offender could be jailed for up to six months.

(on camera): A person could actually be sent to prison for that.

UNIDENTIFIED FEMALE: Good. I'm an animal lover, you know.

CHERNOFF (voice over): Pet owners can now show their love under a new law in Ohio by setting up a trust fund for their pooch.

(on camera): In Ohio, you're going to be allowed to set up a trust fund for your pet. Would you?

UNIDENTIFIED FEMALE: Sure, why not?

CHERNOFF: You already have one.

UNIDENTIFIED FEMALE: Talk to my kids. Everybody likes dogs, yes.

CHERNOFF: Wait a minute. You're losing your trust fund to your dog.

UNIDENTIFIED FEMALE: I know. That's not good.

(END VIDEOTAPE)

CHERNOFF: A trust fund for your dog. Well, there's a new year's resolution to consider -- Soledad.

S. O'BRIEN: Yes. And, you know, something else to consider, it's 6:37 in the morning. You don't need the sunglasses anymore for 2007.

CHERNOFF: Oh. There you go, huh?

S. O'BRIEN: I'm kidding you. You look cute. You look cute in them.

ROBERTS: You know what? Based on the shape of his eyes, he just might need those sunglasses.

(LAUGHTER)

S. O'BRIEN: You think he's been doing a little drinking overnight, huh?

ROBERTS: No. But I'll bet he's been staying up late, though.

S. O'BRIEN: All right.

Allan, thank you.

CHERNOFF: Maybe I'll put these back on.

ROBERTS: The ball dropping in Times Square didn't just usher in the new year. It also signaled a new era in New York politics.

Democrat Eliot Spitzer was sworn in at midnight as the governor of New York. Spitzer succeeds Republican George Pataki, who did not seek a fourth term.

Over the next two weeks, nine other governors will officially take their oaths of office.

Coming up, a lot of the West still reeling from those holiday storms. We'll have your New Year's Day forecast for you.

And ringing in the new year across the globe -- the sights and sounds from London to Rio ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: HI. This is Major Kristen Heck (ph). I hope by the time you guys see this I'll be Lieutenant Colonel Kristen Heck (ph).

I'm in Balad, Iraq, and I want to send a special greetings to Elvis (ph), to Annie (ph), Rebecca (ph), Sammy (ph), Darlene (ph) and Matthew (ph), and all my brothers and sisters in Kansas, Vermont and Colorado.

Happy holidays. I love you guys and I miss you.

(END VIDEO CLIP)

ROBERTS: Did she say Elvis? Do you think that was one of the family members?

S. O'BRIEN: Or a pet.

ROBERTS: It could be. Let's hope.

S. O'BRIEN: I used to have a pet named Elvis. And congratulations on her promotion.

ROBERTS: Yes.

S. O'BRIEN: Hopefully it's gone through. That's good word.

ROBERTS: Excellent.

Good morning to you and happy new year.

If you're up this early, maybe you didn't get a chance to see a lot of the parties going on late all around the world. Or maybe you're just getting home and you did. But we'll tell you anyway.

About a million people packed into New York Times Square to watch the ball drop. That's a new record. But in London, much of the action was along the bank of the Thames River.

CNN's Alphonso Van Marsh joins us live from London.

Alphonso, was it swinging last night? ALPHONSO VAN MARSH, CNN CORRESPONDENT: It was. It was, because, you know, New York may get all the attention. It's got Times Square. But there were plenty of other cities around the world that made New Year's Eve a night to remember.

(BEGIN VIDEOTAPE)

SHIRLEY BASSEY, SINGER (SINGING): Diamonds are forever

VAN MARSH (voice over): Over Sydney, the skies sparkled to the tune of Shirley Bassey's diamonds are forever. Australia is one of the first nations to ring in 2007 in spectacular style.

New Year's Eve organizers weren't about to be outdone in Taiwan. Taipei's 101 building, one of the world's tallest, was aglow in fireworks.

In Bucharest, Romanians were cheering on more than an impressive fireworks display. At the stroke of midnight, Romania became a member of the European Union. Political implications of EU membership aside, some revelers in this former communist capital say they are looking forward to more social and economic opportunities in '07.

UNIDENTIFIED MALE (through translator): I wish for cheaper drinks for my friend, Yanni (ph), and better salaris.

VAN MARSH: Paris's Eiffel Tower once again provided a classy and festive show to close 2006. Warm weather and a letup in rain ensured big crowds and plenty of champagne flowing at midnight.

Low-tech but high in spirit in Nairobi, a sold-out concert featuring Kenya's top pop acts one of many parties across Africa bringing young and old together.

UNIDENTIFIED MALE: I'm really excited about sharing this new year with young people right here, young Kenyans here in Africa. It's an exciting moment.

VAN MARSH: Leave it to Rio to draw some two million people to the biggest New Year's party in South America. Brazil's Copacabana Beach was the place to be.

And London was the envy of Britain. Driving winds and heavy rain forced cancellations and delays of New Year's celebrations in Newcastle, Liverpool, and other cities north of London. It almost seemed like they all came down here. Police say 350,000 people packed the banks of the River Thames to hear Big Ben chime in the new year, along with a stunning 10-minute fireworks display around the London Eye Ferris wheel.

(END VIDEOTAPE)

VAN MARSH: Now, John, with New Year's, of course, comes New Year's resolutions. And according to a financial advisory group here in London, some 16 million Britons are making New Year's resolutions kicking in today. Topping their lists, to quit smoking, to fix their finances, maybe lose weight. But according to this nationwide survey, by June, in terms of keeping those resolutions, more than half will fail miserably -- John.

ROBERTS: But, you know, every year they still try. And that's the important thing.

Alphonso Van Marsh, thanks very much. Appreciate it. Happy New Year to you as well -- Soledad.

S. O'BRIEN: Did you make lots of resolutions?

ROBERTS: Never, because I'm not going to keep any of them, so why bother?

S. O'BRIEN: I make lists and lists and lists.

ROBERTS: And do you ever keep any of them?

S. O'BRIEN: Like 60 percent.

ROBERTS: Really?

S. O'BRIEN: That's not bad odds, right?

ROBERTS: Oh, that's good. What do you -- what do you make resolutions to do?

S. O'BRIEN: Oh, you know, go back to the gym, blah, blah, blah. Eat more healthfully, cook.

ROBERTS: Just once or repeatedly?

S. O'BRIEN: It's so much easier if I just said just once, but no, all the time.

ROBERTS: Well, that's good.

S. O'BRIEN: Yes, thanks.

ROBERTS: Good for you.

S. O'BRIEN: I try. I try.

ROBERTS: I gave up years ago. I figure I'm too old to change, so I'm not even going to try.

S. O'BRIEN: Hope springs eternal.

Coming up all next week on AMERICAN MORNING, we're going to be taking a closer look at Dr. Martin Luther King Jr.'s historic journey for equality. Now, CNN got exclusive access to Dr. King's speeches and private notes, and what they reveal in many cases is very surprising -- his thoughts as he redrafted his speeches, the notes he took in the margins of books in his personal library, and some big surprises. For example, did you know that Dr. King's famous "I Have a Dream" speech, which is what we call it now for the march on Washington, wasn't written for the march at all? In fact, it wasn't in the speech. He ad-libbed it. He sort of got on a whim and his staff was so dismayed as he went off copy completely and were sort of horrified, really.

We're going to tell you more details about that and other moments as well. Our special is called "Martin Luther King: Words That Changed a Nation."

You can see and hear those words, some of them for the very first time, starting one week from today. That's January 8th, right here on AMERICAN MORNING.

At 47 minutes past the hour, let's get right to Chad Myers at the CNN weather center with the traveler's forecast.

You make resolutions, don't you?

CHAD MYERS, CNN METEOROLOGIST: I do.

S. O'BRIEN: I knew you did.

MYERS: But this year I'm actually playing reverse psychology with myself. So my resolution is to gain weight because then maybe I'll lose some, because it always goes the other way.

S. O'BRIEN: Yes. OK. Let me know how that goes in a year.

MYERS: I'll tell you. I'll tell you in six months how it's going.

S. O'BRIEN: Yes.

MYERS: If you see me wearing only one suit that's because it's the only one that still fits.

(WEATHER REPORT)

MYERS: John, Soledad, back to you.

ROBERTS: Chad, thanks very much for that.

Coming up, remembering the "Godfather of Soul," James Brown. A look at the tribute to one of America's most influential performers. What a rockin' funeral it was.

Ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: The "Godfather of Soul" has been laid to rest, but not before a fitting tribute in the James Brown Arena in his hometown of Augusta, Georgia. More than 8,000 fans inside the arena and thousands more outside remembered the man who changed American music history.

(BEGIN VIDEOTAPE)

REV. AL SHARPTON, CIVIL RIGHTS ADVOCATE: The whole world changed their beat because of James Brown. Rap started from James Brown. Hip hop started from James Brown. Funk started from James Brown.

(MUSIC)

MICHAEL JACKSON, SINGER: And when I saw him move, I was mesmerized. I've never seen a performer perform like James Brown. And right then and there, I knew that that was exactly what I wanted to do for the rest of my life because of James Brown.

(MUSIC)

CHARLES BOBBIT, JAMES BROWN'S MANAGER: My wife, god bless her soul, talked me into going to a James Brown show. We walked in, sat down. Mr. Brown walked on stage, and the bells went off. I said, "I'm going to get me a job with him, and I'm going to be the manager."

(MUSIC)

JESSE JACKSON, RAINBOW-PUSH COALITION: Beyond the service today, his memory will be carefully carved out in the legacy built upon his manifest talents. There's enough substance and legacy for all of you to share.

UNIDENTIFIED MALE: We got on the good foot because of James Brown!

(END VIDEOTAPE)

S. O'BRIEN: Wow!

James Brown died a week ago, early Christmas morning, of congestive heart failure. He was 73 years old.

Quite a party there.

ROBERTS: It really was. You know, it's kind of striking, the number of prominent people who died over the Christmas holiday.

S. O'BRIEN: Yes, it really was.

ROBERTS: James Brown, Gerald Ford. I mean, Saddam, though he didn't exactly die of his own accord, but still. You know, that week between Christmas and New Year's, a lot of prominent people seemed to go.

S. O'BRIEN: Yes. Yes.

ROBERTS: Still to come, behind the numbers of the latest milestone reached in Iraq, 3,000 American troops killed. Live reports from the Pentagon and Iraq just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

S. O'BRIEN: Welcome back, everybody. We're coming up at the top of the hour.

Chad Myers is at the CNN weather center for us.

(WEATHER REPORT)

(BEGIN VIDEO CLIP)

UNIDENTIFIED GROUP: Three, two, one!

(END VIDEO CLIP)

S. O'BRIEN: There it was, New Year's Day, 2007. More than a million people rang in the new year in New York.

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