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President Obama in China; Taliban Staged Some Attacks; Illinois to Take Gitmo Detainees?; Paying Back Taxpayers
Aired November 16, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Good morning, Heidi.
HEIDI COLLINS, CNN ANCHOR: Good morning, Kiran. Good morning, John. That's right, here's what we're working on today.
Issue number one, snapshot of the holiday shopping season. New retail sales report just out.
Plus, a 5-year-old girl gone missing. Last seen on surveillance tape with a man charged in her kidnapping. Now her mom is in court, facing human trafficking charges.
And they are two cholesterol-fighting drugs taken by millions of Americans. But a new study raises questions now about their effectiveness.
Good morning, everybody. I'm Heidi Collins and you are in the CNN NEWSROOM.
Concerns about money and security top our hour. Our John Vause is actually covering the president's trip through China today. Mr. Obama is, in a sense, meeting with his bankers. We'll get to that in a moment.
Also, our Gerri Willis is following GM's recovery. The automaker says it will begin paying back the government next month. So we'll get to that as well.
Also, our Elaine Quijano, you see her standing there outside of an Illinois prison, right where some terror suspects could be heading.
President Obama in Beijing and at a crossroads. The U.S. economy is battered, the Chinese economy is surging, and Washington's long-time leverage is largely gone.
CNN's John Vause is in Beijing this morning with more on this.
John, good morning to you. What exactly is on the president's agenda today?
JOHN VAUSE, CNN CORRESPONDENT: Well, Heidi, the president arrived here a few hours ago. He pretty much went straight into a meeting with China's President Hu. They sat down for about 30 minutes and then they had a meal.
It's nighttime here in Beijing. The president is headed back to his hotel. Tuesday Beijing time, the show really gets on the road. There'll be the official welcoming ceremony and then an extended sit- down with President Hu at the Great Hall of the People.
That will be the first of three high-level meetings. This being the president's first trip to China, he'll also do some sightseeing. They'll take in a tour of the Forbidden City. But during those meetings, it's expected the Chinese side will express their concerns, in particular, about the falling value of the U.S. dollar and what that means for hundreds of billions of dollars the Chinese hold in U.S. debt.
Much of that is held in U.S. treasuries, which lose their value each time the U.S. dollar loses value. It's been doing a lot of that lately. Sources close to the U.S. side said the Chinese are even concerned about the cost of Mr. Obama's health care plan, how much extra will that add to the federal budget deficit.
How much more money will the U.S. have to borrow to pay for it, should that plan get passed?
Now, Mr. Obama, for his part, will be looking to the Chinese to revalue their currency, the renminbi. The U.S. believes it's undervalued, it's giving Chinese exporters an unfair competitive edge by making their products cheaper overseas.
Mr. Obama will also be pushing the Chinese on issues like climate change, how to deal with North Korea's illicit nuclear program, also what to do about Iran's nuclear ambitions. A lot on the agenda -- Heidi.
COLLINS: Yes. Absolutely. No question about that. Very important that we continue to talk to the Chinese about the debt as you mentioned, John. Also, a lot going on with this town hall the president held with students.
I'm wondering if it was a surprise that the president actually brought up some of the restrictive freedoms.
VAUSE: Well, you know, in the past, the president has been criticized for not being as harsh or outspoken when it comes to human rights in China. He took it up a notch today. He said freedom of expression, freedom of religion were, in fact, universal values.
He told this to a group of Shanghai University students during this town hall meeting. But perhaps mindful of those meetings, which still to come here in China, he showed some deference to his hosts.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Truly, we have known setbacks and challenges over the last 30 years. Our relationship has not been without disagreement and difficulty. But the notion that we must be adversaries is not predestined, not when we consider the past. Indeed, because of our cooperation, both the United States and China are more prosperous and more secure.
(END VIDEO CLIP)
VAUSE: Now most analysts say that President Obama is walking a fine line here. He has to be tough enough to earn respect, but not too tough to offend the communist party. They are the people who are also known, as you pointed out, Heidi, as America's bankers.
COLLINS: Yes. No question, definitely a fine line. All right, John. We'll continue to follow this alongside you. Thanks so much.
President Obama's trip to China -- there is much more than politics at stake, as we've been talking about here. In a little while, we're going to be talking with a financial journalist who actually says the rising superpower is also a growing challenge to the United States.
At least six people are dead after a car bombing today outside a police station in Peshawar. It marks the sixth suicide bomb attack in the Pakistani city in nine days. The bombing comes as a Taliban spokesman is blaming some of the recent attacks on Pakistani intelligence agencies.
CNN's Reza Sayah is joining us now live from the Pakistani capital of Islamabad.
Reza, good morning to you. Are the Taliban claiming responsibility now for today's attack, too?
REZA SAYAH, CNN CORRESPONDENT: Heidi, nobody has claimed responsibility for today's attack, but it certainly bears all the hallmarks of another Taliban attack. This was a powerful suicide car bomb, according to officials. A car bomb packed with more than 500 pounds of explosives.
Police say the target of this attack was a police station, but right next to this police station was a mosque. And this explosion flattened this mosque, reduced it to rubble.
We should note, in the past few days, the Taliban has come out with an announcement saying, look, we're not going after civilian targets. We're only going after government officials and security personnel.
Heidi, if this was their goal today, they failed miserably. All of the victims in this attack, according to officials, were civilians, something we've seen more and more. Innocent Pakistanis being killed in this cycle of violence -- Heidi?
COLLINS: That's right, Reza. We have also talked a lot about why Peshawar seems to take the brunt of attacks like these. But I am wondering about civilians, as you mentioned, in this attack, all of the victims were civilians. How are people feeling? Are they afraid now, or what's the general feeling in the street?
SAYAH: Yes, well -- yes, you bet they're afraid and they're frustrated, but they're also very resilient. One of the most remarkable characteristics of Pakistanis that we've seen in the past couple of years of being here is their resilience. They have endured a lot. A lot of civilians have been killed. But for the most part, they are still supporting the Pakistani government and the Pakistani army, especially in their latest offensive, targeting the Taliban in South Waziristan. So this is a golden opportunity for the government and the army to deliver peace and security for the public that's still supporting them, but they have yet to be able to deliver on that -- Heidi?
COLLINS: All right. We'll continue to follow that story, of course. Reza Sayah, sure do appreciate that, live from Islamabad this morning.
The Obama administration is defending the decision to bring Khalid Sheikh Mohammed and four other alleged 9/11 conspirators to trial in federal court in New York. Top Obama adviser David Axelrod talked with CNN's John King on the "STATE OF THE UNION."
(BEGIN VIDEO CLIP)
JOHN KING, HOST, CNN'S "STATE OF THE UNION": Many Republicans are criticizing this, but it's not just Republicans. This is Jim Webb, Democratic senator from Virginia who says, they do not belong in our country, they do not belong in our courts, and they do not belong in our prisons.
Why, David Axelrod, did the administration decide to take these steps?
DAVID AXELROD, SENIOR ADVISER, OBAMA ADMINISTRATION: We believe that these folks should be tried in New York City, as you say, near where their heinous acts were conducted, in full view in our court system, which we believe in.
We've had, you know, since 2001, about 195 terrorism cases in the courts and we've been successful 91 percent of the time. We're very confident about these cases. We believe we're going to substantially meet the deadline. We may not hit it on the date, but we will close Guantanamo and we're making good progress toward doing it.
RUDY GIULIANI, FORMER NEW YORK MAYOR: The reality is, this is an unnecessary -- first of all, it's an unnecessary advantage to give to the terrorists. I don't know why you want to give terrorists advantages.
And secondly, it's an unnecessary risk to the city of New York, which already has any number of risks. If it was necessary, if this were the only option, well, of course I'd be in favor of it, and of course the city would do everything it could -- as it will -- to try and make it safe.
(END VIDEO CLIP)
COLLINS: Other critics of holding a trial in civilian court say it would give the defendants a chance to promote their ideology.
I want to show you exactly how military tribunals are different from federal court trials. Military tribunals are often closed to the public while federal trials are usually open. A tribunal can be held in a different country, in a U.S. territory or even on a U.S. naval ship.
Now unlike federal court, a person tried by a military tribunal does not have the right to a trial by jury. The tribunal is composed of members of the military. A tribunal's decision of guilty or not guilty does not have to be unanimous and a death penalty can be imposed immediately.
Now, of course, we'd love to know what you think about all of this. Do you agree with the decision to bring Khalid Sheikh Mohammed and the four other alleged 9/11 conspirators to trial in federal court in New York?
We'd love to hear your comments. Of course, I'll read some of them a little bit later coming up in the next hour of CNN NEWSROOM.
A possible new home for terror suspects from Guantanamo Bay, and it's a prison right inside the United States in Thomson, Illinois. Homeland Security officials are checking out the site today.
It is also where we find our Elaine Quijano, standing by live for more on this.
Elaine, good morning to you. Wondering what people in town think of this idea?
ELAINE QUIJANO, CNN CORRESPONDENT: Well, you know, there are some here in Carroll County, Heidi, who really understand that there are some national security concerns here. They are uncomfortable with the idea of having these hardened terrorism suspects on U.S. soil, potentially in this prison behind me.
But I have to tell you, the overwhelming majority of people that we have talked to here in Thomson itself are very supportive of the notion. They don't necessarily see this as putting their community at increased risk. Instead, they really look at this as an economic opportunity, a chance for their town to make a comeback.
Listen to some of the opinions that we heard here.
(BEGIN VIDEO CLIP)
CINDY OTTENS, LOCAL RESIDENT: We need jobs in our area, very depressed, both economically and emotionally. We're looking for jobs. People are looking for these jobs and what difference does it make what these people did if it's a maximum security prison.
JUDY AURANO, LOCAL RESIDENT: I think in the positive, with jobs, and bringing more people into the community, and using that facility to its fullest, because it has been vacant and not used to its high potential. Then again, I think of the high security people coming in.
That is also scary, thinking terrorists coming to our area and we have a nuclear facility not too far away from here, just south in the quad cities. And that concerns me also. So I see both positive and negatives about that.
(END VIDEO CLIP)
QUIJANO: Now the Thomson Correctional Center behind me has actually been open for a number of years now, but at the moment, it reportedly only houses some 144 minimum security inmates. The facility itself is capable of holding 1,600 -- or at least, there are 1,600 cells here in the building behind me, we are told.
Later this morning, federal officials are set to take a look at the building. They're going to meet with local officials in the afternoon, Heidi. And as all of this is happening, some Illinois Republican congressmen are making very clear, they do not like this idea at all.
They say, look, it is just simply too risky to have these detainees come to America's heartland. They say, look, we understand full well the economic picture, but they say national security concerns, Heidi, trump everything else.
COLLINS: All right. Very good. CNN's Elaine Quijano for us. Thanks so much, Elaine.
Payback for taxpayers. GM says it will repay its government loan sooner than expected, but will you get back all of the money coming to you?
REYNOLDS WOLF, AMS METEOROLOGIST: And we're expecting the possibility of a launch today. Weather looks like it's going to be good for the time being, but what about this afternoon? We're going to give you a sharp eye on that.
Plus, we're going to take a look at a big winter storm on the way to the central plains. That's coming up right here on CNN NEWSROOM.
(COMMERCIAL BREAK)
COLLINS: Well, it's payback time. General Motors says it will begin repaying its government loans starting next month and will have the loan paid off ahead of schedule.
CNN's Gerri Willis is joining us now from New York with more on this. From a GM news conference that just ended a few minutes ago.
Gerri, appreciate you being with us to let us know what happened with that. The company sort of -- seems to be making progress, right?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: That's right, Heidi. You have that right.
Yes, this press conference just ended moments ago and they say they're seeing signs of stability and progress. You might not know that from the numbers. The third quarter earnings were actually a loss, a net loss of $1.2 billion.
Now, you should compare this to previous quarters when results were even worse. But the company says, hey, we are seeing a solid foundation building here. We have a healthier balance sheet. And we are competitive on cost structure. That's a very big deal for GM, because they have such high legacy costs.
Now the very good news for taxpayers out there is that GM is going to begin repaying its debt to taxpayers beginning in the fourth quarter. There's a $6.7 billion loan to government or to U.S. taxpayers.
They say they'll start paying $1 billion on that by the end of the year and $1 billion in each quarter. Another $200 million will go to the Canadian government, which has also extended loans.
Now you should understand the $6.7 billion is 13 percent, just 13 percent of the total $50 billion in aid that was given to GM. The rest of that money actually takes the form of an investment in stock. That's right, a 60 percent equity stake. That means we own most of it, it's our company.
And that will be cashed out as an IPO, which means the company will go public again and the government will get the proceeds of that, the Treasury Department, actually. So as you can see, there's some improvement here. Some solidity going on. The company certainly seems happy about what happened in this quarter and it certainly looks good compared to what was the old GM, which emerged from bankruptcy just this past summer -- Heidi?
COLLINS: Yes. Did they mention in this press conference the Cash for Clunkers program?
WILLIS: Yes. You would think that would be a big deal, right?
COLLINS: Yes.
WILLIS: Good question. Actually, it did help sales in the third quarter. They had 11.7 million in units that were sold. That means the number of cars that were sold. Compare that, though, to their expectations to the fourth quarter, when they expect those unit sales to fall to 10.7 million.
You can see Cash for Clunkers has been very important. And in fact, the company itself, they say they expect fourth quarter results to be modest, flat, and they're expecting some kind of improvement in 2010 next year as consumers sort of get their footing in this economy -- Heidi?
COLLINS: All right, very good. Gerri Willis, sure do appreciate it.
Dressed for success. We'll tell you why a Chinese shirt maker is wearing his heart on his sleeve when it comes to an economic rebound in the United States.
(COMMERCIAL BREAK)
COLLINS: A new court battle may be looming over photos that apparently show the abuse of terror detainees in U.S. custody. The Pentagon is blocking public release of the photos and wants to take the fight to the Supreme Court. Court documents show the Pentagon wants the Supreme Court to dismiss a lower court ruling that ordered the photos be publicly disclosed. There may be more digging outside the home of suspected serial killer Anthony Sowell. CNN has learned FBI agents marked some areas after a high-tech search for more buried bodies. Already, 11 bodies have been found on the property in Cleveland, Ohio. Police will not reveal their plans.
In Fayetteville, North Carolina, a court appearance for the mother of a missing 5-year-old girl. Police have charged the mother of Shaniya Davis with human trafficking and child abuse involving prostitution. Police tell CNN she was selling her child for sex.
The little girl was last seen Tuesday by a surveillance camera at a hotel. The man seen with her has been arrested and charged with her kidnapping.
(COMMERCIAL BREAK)
COLLINS: The countdown is under way for Space Shuttle Atlantis. NASA says the weather appears about 90 percent favorable for the mid- afternoon launch. Atlantis is scheduled to haul spare parts to the International Space Station.
Scientists want to stock up critical components before the space shuttle fleet is retired next year.
Some live pictures for you, Cape Canaveral. And Reynolds Wolf standing by now, talking a little bit more about the possible delay there. What do you think? Ninety percent is pretty good, right?
WOLF: Yes, you know, I think it's going to happen. I think people are going to be heading out to the banana river ride near Titusville and they're going to be parked in their cars, looking out and watching this thing launch. It's going to be an incredible thing to see.
COLLINS: Have you ever been? Have you ever gone to one?
WOLF: I've seen a couple of them actually when I worked in Orlando. You can actually see them in Orlando, in downtown Orlando.
COLLINS: Yes.
WOLF: On a good day, you can actually see the thing going up. And today it should happen. 2:28 is going to be the time. Low clouds a possibility. Now, again, we're going to be seeing it with about a 30 percent probability of weather stopping the launch.
The probability not occurring, which means, of course, you've got a much better chance that it will be taking place.
(WEATHER REPORT)
WOLF: That is a wrap on your forecast. Heidi, let's kick it back over to you.
COLLINS: OK. We'll be watching very closely to see if that shuttle goes off. WOLF: You bet.
COLLINS: So check back with you a little bit later on, Reynolds.
Used to be the kind of -- the U.S. could kind of push China around. Well, not anymore. We're going to talk about how the new U.S./China relationship affects President Obama's visit. We're back in a moment.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: The opening bell just about to ring on Wall Street today. Well, stocks are coming off two straight weekly gains.
And for a look at what's in store this week, let's head over to Stephanie Elam at the New York Stock Exchange with more on this.
Good morning to you, Stephanie.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Good morning, Heidi. Yes, we're waiting to see what the day is going to be like, but right now we are looking to see that the rally will continue this morning, although it's -- futures right now are off of their highs. We'll be keeping our eyes on it.
The big focus this week is on the American consumer. First, a new reading on retail sales shows a much better than expected jump on a nearly 1.5 percent last month. The gain was largely due to a rebound in auto sales.
Other sectors, however, are still under pressure. One of them, Home Improvement is still definitely feeling the pressure. Lowe's third quarter profits fell 30 percent and sales dropped as well. People are delaying big purchases and housing projects. Lowe's is starting to see optimistic signs in some of the hardest hit areas; places like California, Florida, and parts of the Southwest.
Later this week, we'll hear from Home Depot, Target, Sears, GAP, and the parent companies of T.J. Max and Marshalls to see how they're doing.
And finally, you heard Gerri mention a little bit ago, General Motors released its first quarter - I should say first report card since emerging from bankruptcy. The automaker says it lost $1.2 billion last quarter, but that is much less than it was losing before it filed for chapter 11. And GM they'll restart paying the government bailout money next month. As for how all of this is playing out, green on the screen. The DOW up at 46 points, 10 to 3, 17. And NASDAQ better by just about nine points at 21.77 in the early going.
Heidi, back to you.
COLLINS: All right. Stephanie Elam, keeping our eye on all the numbers. Appreciate it, Stephanie. The White House asking Congress to stay out of the Fort Hood massacre investigation for now, but lawmakers are starting to demand answers anyway.
(BEGIN VIDE CLIP)
REP. PETE HOEKSTRA (R), MICHIGAN: Yes, I think the administration knew by the Friday after the Fort Hood shootings that they had a lot of questions that needed to be answered that there had been all of these red flags, but that they'd never come together in one place. There's going to be a lot of tough questions that need to be asked that I'm not sure that they were prepared to answer.
(END VIDEO CLIP)
COLLINS: Our Barbara Starr is live now for more on this from the Pentagon this morning. Barbara, good morning to you. Congress is backing off, but there are still people working to get answers through all of this.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Absolutely, Heidi. There are a number of things on the table now in regards to the Fort Hood investigation. Topping the list, the Army's criminal investigation into the shooting by the alleged shooter, Major Hasan, 13 charges of premeditated murder.
The next step we will see in the criminal investigation is some type of military investigating official appointed to oversee the next steps in the military judicial proceedings. Next on the list, President Obama has ordered both a military and intelligence review of who knew what and when. There were a lot of people talking about Major Hasan. Was there information about him? Were signals missed? And the President says he wants to see some results by the end of the month. And if there were signals missed about Major Hasan and his activities, should somebody be held accountable?
The third part of all of this is the army's own so-called hard look investigation. The army's been saying it wants to take a hard look at itself. Did they miss anything here, did something go wrong? Everything from base security to was there something about Major Hasan? That third part may be a little problematic because they have to stay out of the way of the criminal investigators, but still they are promising to take a look at it all -- Heidi.
COLLINS: Yes, Barbara, Defense Secretary Gates, usually a fairly mild mannered guy, but not so much in talking with the media and the media reports on the Hasan case.
STARR: Absolutely, Heidi. The Secretary's been getting frustrated about leaks to the news media. First, of course, about the whole Afghanistan war strategy. But late last week, he talked to reporters off camera and expressed what can only be thought of as his ire about all the leaks about Major Hasan. So many anonymous sources being reported on in the media. People saying that they knew this or that about him and his concern, of course, is that this gets in the way of the criminal investigation. What the secretary said and I want everybody to see the quote directly. He says, quote, "everybody out there with their own little piece of the action." He goes on and he says, "I worry a lot that it has the potential to jeopardize a criminal investigation, so my view is everybody ought to just shut up." Words from the usually mild- mannered Secretary of Defense, certainly very frustrated about all the reports that he's seen in the news media -- Heidi.
COLLINS: Understandably. All right. Thanks so much. We sure do appreciate it, Barbara Starr.
Also, alleged Fort Hood shooter, Nidal Malik Hasan is still in the hospital. One of the survivors of the rampage hopes he never comes out. Private George Stratton was shot in the shoulder on November 5th. He returned home to Idaho after recovering in Texas. We actually talked with his father on this program. And he has no sympathy for the man who allegedly pulled the trigger.
(BEGIN VIDEO CLIP)
PVT. GEORGE STRATTON, WOUNDED AT FORT HOOD: I'm glad he's in the hospital. I hope he doesn't live through, my personal opinion, but I'm glad he's not going to hurt anybody else.
(END VIDEO CLIP)
COLLINS: If Hasan does recover, Stratton wants to see him get the death penalty.
At this hour, President Obama is in Beijing, the likely highlight of his trip to Asia. He's meeting with China's President and other government leaders in discussions focused on economic issues. But just hours before, in a town hall style meeting, President Obama focused on China's restricted freedoms, appearing before students in Shanghai, he urged China's Government to stop censoring internet access.
(BEGIN VIDEO CLIP)
OBAMA: In the United States, information is free. And I have a lot of critics in the United States who can say all kinds of things about me. I actually think that that makes our Democracy stronger and it makes me a better leader. Because it forces me to hear opinions that I don't want to hear. It forces me to examine what I'm doing on a day-to-day basis to see, am I really doing the very best that I could be doing for the people of the United States?
(END VIDEO CLIP)
CHETRY: The President will meet with his Chinese counterpart again tomorrow and attend a state dinner. His Asian trip will wrap up with a visit to South Korea.
So, President Obama in Beijing, as we said, right now, fresh from a meeting with Chinese President Hu Jintao. It's the President's first trip to China, a trip "The New York Times" described as the U.S. in the role of the spender coming to pay his respects to the banker. Interesting.
Here to help us understand how the U.S./China relationship has changed, the author of "China Inc." and writer for "The New York Times" magazine Ted Fishman.
Thanks for being with us, Ted.
A lot to talk about here because it is an interesting line we heard coming from "The New York Times" about the reversal of roles, if you will. What are your thoughts?
TED FISHMAN, FINANCIAL AND ECONOMIC JOURNALIST: The President comes without a lot of economic ammo to China. China needs the United States as a customer, but the United States has a lot of money floating out there right now and China is very, very worried that the dollar is going to go down and we will be less able customers. And there are a lot of pronouncements, Heidi, from the Chinese regime, before the President's arrival, that the United States is out to dash global economic recovery. Now when China says that, what it really means is it's out to dash China's prospects to be an aggressive exporter to the United States.
COLLINS: Yes. And when you talk about all that, how -- if I'm China, what am I still interested in, in the United States?
FISHMAN: You're interested in the ways the United States can create jobs for Chinese people. The Chinese government's number one job is to create millions of jobs for its people a year, 12 million, 15 million jobs a year. And if the United States is not there, buying the output from China's factories, tens of thousands of which have closed, then China get very, very worried. It's a political problem more than an economic problem.
COLLINS: Yes, we're having a very difficult time creating jobs for Americans.
FISHMAN: Yes, exactly. And when we want to create jobs for Americans, we have to wonder whether American companies and global companies creating jobs in China serves America. Ultimately, it will. But in the short term, that's a very, very tough political problem for the President. You know, Heidi, when he's talking to the Chinese government, he has a domestic audience that is listening very, very carefully.
COLLINS: So how does he do that? And what's the take away from this entire Asia trip? What's it going to look like?
FISHMAN: Well, I think what the president needs to do is he has to say, look, we have long-term strategies with China, which is all about cooperation. In a ways, they've reversed hats. The president is saying is, what we need a harmonious relationship, which is usually the Chinese's line. And the Chinese are very short-term focused, which they are normally very long-term focused. You know, what that means is the power shift has changed in the United States and China's relationship, where the president has to come and try and sell the Chinese on something and the Chinese are saying, we need the status quo. That's a reversal.
COLLINS: So what does it mean? Let's say, even just five years from now?
FISHMAN: Well, five years from now, it means that China will be quite a bit further along towards becoming the world's largest economy. We will be in the position of co-equal with China, much more. China's speed limit on their economy will continue to be far faster than the United States. And they will be making the rules. We will be in the position that the rest of the world was in with the United States for the last 50 to 100 years.
COLLINS: Unless what? Unless what happens?
FISHMAN: It's hard to see a change in the scenario. You know, China will be employing hundreds of millions of more people at higher and higher incomes that will give them much more clout. We have to figure out a way to lasso our fortunes to China's rise and prosper that way. That means doing basically what the President wants to do, which is to invest in our industrial infrastructure, our educational infrastructure, and really take this long-term view that he's talking about with China.
COLLINS: All right we'll continue to talk about this issue that we've talked about many, many days here in the CNN NEWSROOM.
Ted Fishman, sure do appreciate it, the author of "China Inc.," thanks so much.
FISHMAN: Thank you, Heidi.
COLLINS: Checking our top stories now, there's a new stumbling block to long-term political stability in Honduras. The pose President Zelaya says he will not support the upcoming election. His statement means an agreement signed by him and the De Facto President last month is now in doubt. That fact called for a unity government to lead Honduras until a new president is elected on November 29.
All systems are going for the launch of the Space Shuttle Atlantis this afternoon. The six-member crew making a spare parts run for the space station. The mission will also include the installation of two platforms to the station and those platforms will hold spare parts to keep the station operating after the shuttle program is discontinued.
The U.S. and Russia closer to reducing their nuclear stockpiles. That news came out of a meeting between President Obama and Russian President Dmitry Medvedev. The two nations have been working to renegotiate a follow-up to the strategic arms reduction treaty. That pact expires on November 5th. The two leaders met in Singapore yesterday after the APEC summit.
Lots of changes to health care insurance coming your way January 1st. We have tips on how to get the most out of your current coverage in just at little time you have left.
(COMMERCIAL BREAK) COLLINS: Chances are your health insurance next year is going to cover less and cost more. But next year is still six weeks away and there are some things you can do now to take full advantage of your current coverage. CNN's Personal Finance Editor Gerri Willis is here once again.
So Gerri, where do we start if we want to get the biggest bang for our buck?
WILLIS: Yes, you know, chances are, as you're saying, health insurance is more generous this year than next. So you want to make sure first of all, that you hit your deductible, and then take advantage of the remaining weeks to get though doctor's appointments in. Think ahead to what health needs you might have in the coming year. Hey, maybe you want to buy an extra set of glasses, look, now is the time to maximize your health care policy. And while you're at the doctor's, think about asking for an extra refill on medicine or maybe some samples to take home.
COLLINS: What about those flexible spending plans. There's still time to use that if you have it left over right?
WILLIS: That's right, look, if you have a flexible spending account, check the balance. One of these accounts lets you set aside pre-tax money to use on health care expenses. Look, it usually has to be used by the end of the year, otherwise that leftover money vanishes. But a lot of employers will give you a grace period, so you're money stays in the account until say March 15th. Make sure you use the money in the account before it disappears.
Now, here's some of the things you can buy, over-the-counter: medicine, massage therapy, if you have a medical condition, first aid kits, sunscreen over 30 SPF and even dancing lessons if it's used as treatment. To get a more complete list of eligible expenses check out WageWorks.com, click on participants and employees and look for those eligible expenses.
COLLINS: Ok, very good.
What else can you do, though, to make sure that you're getting everything that you're entitled to before things change?
WILLIS: Well, listen to this, you know Cigna Insure recently sampled ten large employers and on average only half of employees took advantage of free preventative checkups and low-cost screenings. Many times, you can get free services like high cholesterol screening, prostate cancer screening, or even mammograms.
You may also be entitled to one or two three dental cleanings a year through your dental plan. So take advantage of the free stuff. And remember, what's free this year, well, it may not be free next year -- Heidi.
COLLINS: All right, very good points. Gerri Willis, I appreciate it. Thanks.
Cash cow, "Missy" is sold at auction for more than a million bucks. Find out why this cow is considered almost perfect.
(COMMERCIAL BREAK)
COLLINS: Sarah Palin, "Going Rogue," it's the title of her new book, out tomorrow. But the media blitz gets under way this afternoon on Oprah. Just for you, Oprah gave us a little preview.
(BEGIN VIDEO CLIP)
OPRAH WINFREY, HOST, "THE OPRAH WINFREY SHOW": Sarah Palin just left and it was really an interesting interview.
You know, lots of people didn't want me to have her on, lots of people did. Lots of her supporters didn't think that she should come here, but she did.
And we talked about everything. We talked about inside the campaign, about what it felt like when she first was asked to be vice president, the candidate. We talked about Bristol, the pregnancy. We talked about Trig, her baby. We talked about Levi Johnston. We talked about her marriage.
We talked about -- we've talked about everything. There's nothing that we didn't talked about.
(END VIDEO CLIP)
COLLINS: The new book is raising Palin's profile even higher. Yesterday Secretary of State Hillary Rodham Clinton told NBC's "Meet the Press" she'd be happy to talk with Palin over a cup of coffee.
Rain and snow in the Central Plains; meteorologist Reynolds Wolf, standing by, tracking it all at the Severe Weather Center.
Good morning to you, Reynolds.
(WEATHER REPORT)
COLLINS: All right, Reynolds, I sure do appreciate it, thank you.
WOLF: You bet.
COLLINS: And you should stick around for this, too, Reynolds, because believe it or not, it's only happened four other times ever. I know you've been waiting for this story.
WOLF: Oh good.
COLLINS: Until this weekend, in Canada, a cow sold for more than $1 million; $1.2 million, to be exact. Take a look at her, "Missy" is her name. She has also almost everything, a flawless rating, this is like a ten in cow terms, this is according to the Bovine Genetic Index which I know you're very familiar with.
WOLF: Oh absolutely of course.
COLLINS: Yes, yes but to the perfection has gone to Missy's head just a little bit, apparently.
(BEGIN VIDEO CLIP)
CHRIS PARRY, MARKETING MANAGER, MORSAN FARMS: When you look at Missy, she has a lot of style, a lot of presence, she knows she's pretty.
(END VIDEO CLIP)
COLLINS: Well, why shouldn't she know she's pretty? Missy left her admirers at the cattle auction and went back to live at her old barn in Alberta, where she'll stay despite her new ownership; doesn't sound like it's gone to her head at all actually.
All right. So, there's an awful lot going on this morning, besides the cow. CNN crews are working to bring you all of the details this morning.
Of course, I want to check in with correspondents beginning with Elizabeth Cohen, our medical correspondent -- hi, Elizabeth.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Hi. I actually sort of have a cow-related story. Too much red meat can lead to high cholesterol and actually there's some bad news for some expensive drugs, very popular drugs, used to treat cholesterol. Could a cheaper alternative actually be better for your heart? I'll have that at the top of the hour.
ELAM: I'm Stephanie Elam at the New York Stock Exchange where stocks are trying to rally for a third week in a row. Apparently we have bulls, not too many cows here right now. Will a new report on retail sales help the market extend those gains? We'll be tracking it Heidi. More on that in the next hour.
WILLIS: GM seeing signs of improvement and stability, says it will pay its government loans off early. Wait until you hear where the money's coming from. I'll have that in the next hour.
COLLINS: All right ladies, thanks so much. We'll check back later on.
Meanwhile, a wedding and reception all for just 40 bucks and that may not even be the best part of the deal.
(COMMERCIAL BREAK)
COLLINS: We've been talking about the story all morning long. We want to know what you think, too, about whether or not you agree with the decision to bring Khalid Sheikh Mohammed and four other terrorism suspects -- all 9/11 conspirators -- to trial in federal court in the state of New York. You can always go to cnn.com, that's where you'll find more about the story. And then go ahead and post your comments there, your thoughts about this decision. I'll read some of the posts coming up in the next hour here on CNN NEWSROOM.
America's financial crisis from Main Street to Wall Street to Pennsylvania Avenue; we are all hoping the worst is over. But that same hope for an American rebound is also shared overseas in the rising economic superpower of China.
CNN's Eunice Yoon is in Beijing.
(BEGIN VIDEOTAPE)
EUNICE YOON, CNN CORRESPONDENT (voice-over): You've probably never heard of Roger Lee, but chances are, you've worn one of his shirts.
ROGER LEE, TAL APPAREL: Brooks Brothers, L.L. Bean, Nordstrom's, Dillard's, JC Penney; we also make for J. Crew and Banana Republic.
YOON: Lee's company TAL Apparel makes clothes for a dizzying number of brands. In fact one out of every six dress shirts sold to Americans comes off one of these assembly lines.
When Americans change their buying habits, this Hong Kong businessman feels the pain.
(on camera): How did you know that U.S. consumers were starting to tighten their belts?
LEE: Americans buying more basic shirts. We find that typically during downturn; basic items like plain white shirts people continue to buy that because it's what they need to wear to interviews, in looking for new jobs.
YOON (voice-over): And it's not just shirts.
This past year has been unprecedented. The slump in demand for everything from shoes to toys to DVD players forced thousands of factories here in southern China to shut down. Millions lost their jobs.
Lee says his workers went from making over 200 shirts a minute to 160, but few people were laid off.
(on camera): Close to 5,000 people work in this factory alone. They sit on assembly lines for ten hours a day to stitch together shirts for American shoppers.
(voice-over): Lee fears trade disputes between Washington and Beijing could escalate and possibly lead to higher prices at U.S. stores.
UNIDENTIFIED MALE: You made for them before.
LEE: Pretty smashing.
YOON: With Christmas coming, Lee is encouraged by the increase in orders. Manufacturers are here are hiring, rather than firing. A sign Lee hopes the U.S. consumer can make a comeback in 2010.
LEE: We'll see a good Christmas season. If we see that then I think it will be good for everyone, for us as manufacturers, for the retailers, for the whole economy.
YOON: After all, U.S. shoppers may not be as invincible as they once were but they still make the global economy go round.
Eunice Yoon, Dongxuan (ph), China.
(END VIDEOTAPE)
LOTHIAN: President Obama danced around a question about arms sales to Taiwan, was asked whether terrorism still remains America's greatest threat. And on his Nobel Peace Prize award, told a questioner it's not something he deserves, but emphasized the need to promote peace.
Mr. Obama was not asked about human rights, but used his opening remarks to push that message.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: These freedoms of expression and worship, of access to information and political participation, we believe are universe rights.
LOTHIAN: The Chinese students appeared to embrace this exercise in democracy...
UNIDENTIFIED FEMALE: I think it's very good.
LOTHIAN: ... and President Obama himself.
(END VIDEOTAPE)
(on camera): There were no surprises, no tough questions. But a White House official says that the president was able to deliver an important message about open government and human rights. And they believe that the town hall meeting was a meaningful way to do it -- Wolf.
BLITZER: Dan Lothian in Shanghai for us.
Thank you, Dan.
Look who has a booming sales business in China right now -- the troubled U.S. carmaker General Motors. GM lost over $1 billion in its first quarter since emerging from bankruptcy, but guess what? GM now says it can afford to start repaying billions of dollars in loans from the U.S. government as early as next month. It turns out the automaker is in better financial shape than expected, in part because of the huge Chinese market.
Let's go back to our senior international correspondent, John Vause, in Beijing -- John.
JOHN VAUSE, CNN SR. INTERNATIONAL CORRESPONDENT: Wolf, industry analysts say General Motors makes an annual profit in China of about $1 billion a year. Even the president said today in Shanghai that GM could learn from the operations here to increase sales back in the U.S.
(BEGIN VIDEOTAPE)
VAUSE (voice-over): It's the biggest car market in the world, with a record 12.5 million vehicle sales expected in China this year. Until now, only the U.S. and Japan produced more than 10 million cars in one year. And what's hot in this hot market? GM. Last month's sales for China's biggest foreign carmaker more than doubled.
KEVIN WALE, PRESIDENT, GM CHINA: They're off the charts, and they're hard to comprehend unless you live in China.
VAUSE: Bankruptcy in the U.S. seems to have had little impact on GM in china. Sales have been surging all year, thanks in part to government rebates for smaller cars and a perception that American brands are high end.
(on camera): At this GM plant they are making the Regal, XL (ph) and the new LaCrosse, two shifts working from 6:30 in the morning until 10:00 at night, pretty much at full capacity.
(voice-over): And that new Buick LaCrosse has been in big demand, GM's first car since emerging from Chapter 11 in July.
UNIDENTIFIED MALE: I'm thinking about actually...
VAUSE: In a major shift, the interior was designed in Shanghai, not Detroit, incorporating traditional Asian concepts like feng shui, laying out the dashboard and seats to maximize positive energy, or chi.
BURT WONG, BUICK LACROSSE DESIGNER: We look for a nice elegant shape, nice elegant key lines to do this chi, the chi concept.
VAUSE (on camera): One of the big differences between the American and Chinese markets, in the United States the owner of the car would also be the driver of the car. But in China, the person who paid all the money, well, they would be sitting in the back.
(on camera): So these are the controls.
UNIDENTIFIED MALE: These are the controls.
VAUSE (voice-over): And so that means lots of leg room for that very important passenger and access to controls for the air conditioner, DVD and stereo.
WALE: And the voice of China is so large, that the influence of Chinese as taste, culture and fashion has got to be reflected in global cars today.
VAUSE: It's not your father's Buick anymore, and judging by sales in the U.S. and China, that's a good thing for General Motors.
(END VIDEOTAPE)
VAUSE: And there's that old saying: As General Motors go, so does the nation. And General Motors is doing very well in China --Wolf.
BLITZER: Good for GM.
Thanks very much, John Vause.
The fear: Iran or North Korea could be hiding several secret nuclear sites deep underground. America's possible answer? A massive 15-ton bomb that may be able to penetrate some of the most heavily fortified bunkers.
And ahead of the release of Sarah Palin's new book, how are people in one state that plays prominently in that book feeling? We're going to Alaska.
Stay with us. You're in THE SITUATION ROOM.
(COMMERCIAL BREAK)
BLITZER: Some parts of the country, they're counting down to the official release of Sarah Palin's book. In some places, book stores are gearing up for a huge crush of buyers.
Our Chief National Correspondent John King visits one place especially grateful for all the attention.
(BEGIN VIDEOTAPE)
JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): Wasilla's famous resident lives across this shimmering lake. Her image, still a smiling life-sized calling card at the local Chamber of Commerce.
It's mostly back to normal a year after the big election, but to visit Pandemonium Booksellers is to be remind that Wasilla, like the rest of America, is preparing for the next installment of the Sarah Palin debate.
SHANNON CULLIP, OWNER, PANDEMONIUM BOOKSELLERS: I think it will stir it up a little bit.
KING: Owner Shannon Cullip says presales of Palin's "Going Rogue" are shattering store records and re-igniting the Palin political divide.
CULLIP: It's either one extreme or the other, I would say. People either completely, completely have her on a pedestal or don't like her. It's not too much in the middle. You'll have just some people just, "Oh, she's just such an amazing woman, I can't believe what she's accomplished," and that sort of thing.
KING (on camera): And the flip side, those who...
CULLIP: The flip side, "I can't stand her."
KING (voice-over): Palin's fast political rise has been good for business here. Books on her tenure as governor are in the Alaska section. And other political titles sell more now, too.
CULLIP: I have a little bit of everything. You know, I have "The Audacity of Hope." And during the election you would find that people bought both. You know, they were comparing. KING: Palin calendars are a big seller at the moment, and post- election political sales tend to reflect Wasilla's more conservative leanings.
(on camera): Glenn Beck outsells President Obama at the moment?
CULLIP: Oh, yes,
KING: Oh yes?
CULLIP: Big time.
UNIDENTIFIED MALE: The governor's office is down that end of the hall.
KING (voice-over): This was Governor Palin's Anchorage office until she abruptly resigned in July. As new Governor Sean Parnell rises to make his own mark, he, like everyone else in Alaska, is waiting for the next Palin chapter.
GOV. SEAN PARNELL (R), ALASKA: I can really say nothing except that I wish her the best, because she treated me and her fellow Alaskans so well and looked out for us well.
KING (on camera): Do you as governor pick up the phone at all and say, you know, hmm, this is a tough one, let me seek her advice, or have you both sort of moved on?
PARNELL: We keep in touch just on a personal basis. I haven't -- we haven't had the policy consults or anything, but we do keep in touch.
KING: You going to read the book?
PARNELL: Of course I'm going to read the book.
KING (voice-over): Not everyone here is a Palin fan, of course. Democratic Senator Mark Begich among those who choose their words carefully.
SEN. MARK BEGICH (D), ALASKA: I don't know what her future's going to be. I'll let the public make that decision.
KING (on camera): Are you going to read the book.
BEGICH: I don't know. You know? I've got so many other -- I've got a health care bill to read.
KING (voice-over): Fireside Books is in Palmer, a short drive from Wasilla. It will be open three hours early on Tuesday.
DAVID CHEEZEM, OWNER, FIRESIDE BOOKS: I expect people will be lining up and knocking on the door. Sarah Palin fans are not the most patient people in the world. They want it now.
KING: Owner David Cheezem is a Democrat and thought he had a chance at winning a race for the state house last year. CHEEZEM: The thought was, you know, Republicans aren't that excited about John McCain. I might be able to get some votes here, where otherwise I wouldn't. And then she came in and ran for vice president. And at that point, there's just no way, and I lost dramatically.
KING (on camera): But you don't seem to hold it against her too much.
CHEEZEM: No. No, not if she sells a bunch of books here.
KING (voice-over): Proof that all politics is local, even as the debate about Sarah Palin's national ambitions opens its next chapter.
John King, CNN, Palmer, Alaska.
(END VIDEOTAPE)
BLITZER: Our Candy Crowley is going through the book right now. We have a copy. We'll share that with you. Her report coming up in our next hour.
Stand by for that.
What's said to be the last autograph signed by President John F. Kennedy has just been sold at auction. Kennedy reportedly signed a copy of "The Dallas Morning News" on what would turn out to be the day of his assassination in that city.
Let's go to our Internet reporter, Abbi Tatton.
Abbi, how much did it go for?
ABBI TATTON, CNN INTERNET REPORTER: Wolf, it's a newspaper that in 1936, cost just five cents a copy. But this copy has just been sold for almost $40,000 because of the signature on it and the date.
This is a copy of "The Dallas Morning News" from Friday, November the 22nd, 1963. And if can I zoom in there on the photo of President Kennedy and the first lady, you can see a faint autograph that says "To Jan White (ph), John Kennedy."
This is a photograph alongside an article predicting that thousands of people would turn out for this campaign stop in Dallas. That day, of course, the headline from "The Dallas Morning News." The next day was this one.
The auction house is Heritage Auctions. What they say is this was a hotel worker called Jan White (ph) who was there, an employee, saw the president that morning, asked him to sign a copy of the newspaper. And then she's had it in storage ever since. It's been bought by a collector in California who says that he was willing to go into the six figures for this piece of history and he will be putting it on display -- Wolf.
BLITZER: Abbi, thanks very much. Good autograph. The woman behind a controversial leader. You've heard a lot about the Iranian president, Mahmoud Ahmadinejad, but what about his wife? She almost never appears in public, and it's believed has never spoken to a crowd in public until now.
And as we learn that the Fort Hood massacre suspect frequented a strip club in Killeen, Texas, what else might that teach us about his behavior?
(COMMERCIAL BREAK)
BLITZER: We're digging deeper on the only suspect in the Fort Hood massacre. As CNN previously reported, the conservative Muslim, Major Malik Nidal Hasan, actually frequented a street club near the scene of the massacre, and that's raising some eyebrows considering reports that the 9/11 hijackers also visited strip clubs leading up to the 9/11 attacks.
Let's talk about it with Professor Akbar Ahmed. He's an Islamic studies professor here at the American University in Washington, D.C.
Professor, thanks very much for coming in.
When I heard about the fact that he had gone to the strip club in Killeen outside of Fort Hood in the weeks leading up to the attack, I thought of the 9/11 hijackers, Mohamed Atta and the others, and the reports that in Vegas and elsewhere, they visited strip clubs, even as they prayed five times a day.
Is there a contradiction here? Explain what's going on.
PROF. AKBAR AHMED, ISLAMIC STUDIES, AMERICAN UNIVERSITY: Wolf, there's clearly a contradiction. You go to a strip club, and then you kill and wound so many people, as Major Hasan did, and you shout "Allahu akbar!"
BLITZER: Allegedly did.
AHMED: Yes, allegedly did.
What you are really seeing is a tremendous conflict of identies in this man, Major Hasan's personality. He is an American. Remember, he's born here, he grows up here, he's an officer in the American Army.
He's also rediscovering his own Islamic identity. And it's a mishmash kind of version of Islam, because while he's going to the strip club, that's one part of his identity. He goes out and shoots people and wounds people, and he yells "Allahu akbar," which is very much part of his Islamic identity. He's trying to assert a triumphant, victorious kind of Islam, because that is associated with a kind of war cry.
BLITZER: Is there some kind of perverse interpretation of Islam some justification that these men may have had for going to strip clubs and enjoying lap dancing, while at the same time getting ready to kill?
AHMED: Not at all, Wolf. We should be very clear about this. Not at all.
Even in his mind I'm not sure how he links, connects these particular dots. This really is a very individual response, and it comes, as you say, not only him, but the 19 hijackers. Some of them were doing precisely the same thing.
BLITZER: On his business card that he ordered while he was stationed at Fort Hood he had the initials -- he had "Major Hasan," but he had the initials "SOA." I'm going to show that up on the screen. We'll show it to our viewers.
What exactly does that mean?
AHMED: Now, Wolf, this is interesting, because the American media, of course, is translating that to mean "SOA," "Soldier of Allah." Now, the fact is that many Muslims take Arabic phrases and abbreviate them, so AOA means "Asalaam Aleichem," which means peace be upon you, greetings for you.
At the same time, this could mean -- "SOA" -- meaning (SPEAKING ARABIC). That's glory to -- the greater glory to God. And then immediately after in brackets he's got (SPEAKING ARABIC), which again means the gracious, the...
(CROSSTALK)
BLITZER: Because he's got "SWT" in parentheses after "SOA."
AHMED: Exactly, which is praising the exaltedness of God himself, the glory to God. So, it could be that. It could be soldier of Allah. I mean, only he would be able to interpret it.
BLITZER: But what does the "SOA" stand for in Arabic, for example? Because I've heard various interpretation from "Soldier of Allah," to "Servant of Allah," "Slave of Allah."
You understand this better than I do.
AHMED: It could also mean (SPEAKING ARABIC). It could also mean that.
He could be being clever and using one abbreviation to mean two or three different things, maybe trying to disguise it, or then simply meaning (SPEAKING ARABIC), which also means glory to God. So we need to be a bit careful how we interpret it, because only he can explain it. I would say that anyone using this phrase on a card, a major in the American Army, in itself is curious, itself is odd.
BLITZER: And when about what he cried out, "Allahu akbar!" right before the shooting started, according to several eyewitnesses who survived? Some have seen that as a jihadist warning going out.
How did you interpret that?
AHMED: I would -- Wolf, it's a terrible act. It's an act of murder and mayhem. And that, of course, in his mind, again, he's associating with Islam by making this war cry, by saying, "Allahu akbar."
At the same time, we must remember that "Allahu akbar" is "God is great." It's a phrase like many Christians would say something about Jesus or some other religions would use some other divinity in some form. Muslims would use it eating or standing or talking to people simply to praise the greatness of God.
In his case, obviously he's using it to associate with an act that he's committing, which is an act of murder, which is an act of carnage. So it has a different meaning. It has...
(CROSSTALK)
BLITZER: We're out of time. But knowing what you know about -- you've read, obviously -- you don't know this man personally -- would you describe him as an Islamic jihadist terrorist or just a guy who went berserk?
AHMED: I would say he is a prime example of extreme pressures on a Muslim living in the West where he simply collapses and goes berserk, because what he did, by any interpretation, was not a purely Islamic act. He was acting as a man who was on the rampage, who has just gone over the hill, over the brink.
BLITZER: Professor, thanks very much for coming in.
AHMED: Thank you, Wolf.
BLITZER: Appreciate it.
Regarding Iran, a new report raises some disturbing possibilities about its nuclear program, and that's prompting fears from the United States over how to respond.
Let's bring in our Pentagon correspondent, Barbara Starr.
Barbara, what are you learning?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Wolf, the latest report from the International Atomic Energy Agency suggests Iran could -- could be hiding more secret nuclear sites, and that is raising the stakes on all sides.
(BEGIN VIDEOTAPE)
STARR (voice-over): Iran's once secret underground nuclear fuel enrichment plant. The Pentagon is worried Iran is now burying weapons factories so deep, that the current arsenal of bombs can't reach them, leaving the U.S. with no viable military option if a strike was ever ordered.
This new Air Force 15-ton bomb may change that calculation.
JOHN PIKE, GLOBALSECURITY.ORG: We'd certainly be able to take this out with a massive ordnance penetrator, the 30,000-pound boss. STARR: This is the massive ordnance penetrator, or MOP, now being rushed into development to be carried on B-2 and B-52 bombers. The most likely targets? Iran and North Korea, which are believed to have buried weapons facilities hundreds of feet underground or into the sides of mountains.
PIKE: Some of those would probably require this massive ordnance penetrator simply because they are buried so deep and no other bomb would be able to certainly destroy them.
STARR: At 30,000 pounds, the MOP, some experts say, will be able to penetrate 650 feet of concrete, a significant boost over current bunker-busting bombs like the 2,000-pound BLU-109, which can penetrate just six feet of concrete, and the 5,000-pound GBU-28 which can go through about 20 feet of concrete.
GEOFF MORRELL, PENTAGON SPOKESMAN: This has been a capability that we have long believed was missing from our quiver (ph), our arsenal, and we wanted to make sure we've filled in that gap.
STARR: No air strikes against North Korea or Iran appear to be in the works, but Iran says it could start enriching uranium here in the next two years, and both the U.S. and Israel want to ensure that Iran cannot manufacture and assemble a nuclear weapon.
All of this has now led to more funding for the MOP. The Pentagon plans to have the first bombs available by December 2010, two years earlier than planned.
(END VIDEOTAPE)
STARR: Now, the Pentagon likes to say it's not helpful to speculate on future military targets, but certainly this weapon gives the Pentagon, Wolf, an option it hasn't had before -- Wolf.
BLITZER: It's a huge, huge bomb, Barbara. Thanks very much for that.
Today, federal officials are taking a tour of an Illinois prison that could be the new home for suspected terrorists. Just ahead, plans to close the Guantanamo Bay prison camp hits home in the heartland.
And how far would the U.S. go to protect Pakistan's nuclear arsenal from terrorists? I'll ask the veteran investigative journalist Seymour Hersh what he's uncovered.
Stand by. That interview coming up.
And later, what's up with the space shuttle? One of its final missions ever is now off the ground.
(COMMERCIAL BREAK)
BLITZER: On our "Political Ticker," a win for the Washington Redskins in the United States Supreme Court a day after the embattled football team finally broke its losing streak. The court refused to hear an appeal from Native Americans who say the team's name is offensive. That ends the latest round in a 17-year court battle between the Redskins and American Indians over the team's trademark.
Remember, for all the latest political news any time, you can always check out CNNPolitics.com.
Let's go back to Jack for "The Cafferty File" -- Jack.
CAFFERTY: A big weekend for the Redskins, right?
BLITZER: Huge.
CAFFERTY: They finally won a football game, too, right?
BLITZER: Yes, I was thrilled.
CAFFERTY: Who did they play?
BLITZER: The Redskins played -- who did the Redskins play?
UNIDENTIFIED MALE: Denver.
BLITZER: Denver. Denver, that's who they played. I forgot.
I know they are playing Dallas. That's coming up. That will be a tough one.
CAFFERTY: Denver is a pretty good team, too.
BLITZER: Denver is excellent, yes.
CAFFERTY: So -- well, maybe they will get something going there now that they got their court case cleaned up.
The question this hour: If you were interviewing Sarah Palin, what would you ask her?
Jennifer in Winnipeg, "There are many things I would like to ask Sarah Palin. However, I'm quit sure she wouldn't understand any of them and would immediately go into rhetoric mode and babble incoherently."
C.J. said, "I'd ask her how wonderful it feels to wake up every morning knowing that you frighten the hell out of the liberals by just speaking common sense. She makes it look so easy."
T. says, "I'd ask her what books and magazines she reads. I'd also like to know her thoughts on the Bush doctrine. She never did answer those questions."
Tony says, "She mentions in her book she believes in creationism. I'd ask her if she had become vice president, would she have taken steps to have the federal government encourage the teaching of creationism in public schools."
Paulette in Pennsylvania, "I wouldn't seek her out, but if she crossed my path I'd ask her, 'Honey, what is it you don't understand about 72 percent of the American people not believing you're qualified to be the president?'" H.J. writes, "I'd ask her why she puts up with the insulting, ignorant left that. Does she feel this is the reason that good people like herself fail to run for office, leaving us with the people who only have their own interest in mind? We need more people in office like Sarah, but why would they be interested?"
Jay says, "I'd ask her to name all 50 states just for fun."
Kate writes, "How many Internets are there?"
And Linda in Kentucky says, "I would ask her, 'Where do you go to get a clue?' I bet you can't see that from our house."
If you didn't see your e-mail here, you can go to my blog and read many, many more of these. Every time we do a Sarah Palin question, as you know, Wolf, the mailbox gets flooded with responses. There's a lot of good stuff on the blog.
BLITZER: Always is.
All right, Jack. Thank you.
And to our viewers, you're in THE SITUATION ROOM.
