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American Morning
Breaking Down the Dramatic Action to Slash the Deficit; Four States Banning the Drink Four Loco; Sources Say Obama Administration Ready to Support Extension of Tax Cuts; G-20 Summit Starts in Seoul: Obama Under Fire for Weakening U.S. Dollar; Royal Wedding in the Works?
Aired November 11, 2010 - 07:00 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 to you. It is Thursday, November 11th. I'm Kiran Chetry.
ALI VELSHI, CNN ANCHOR: Good morning, Kiran.
CHETRY: Good to see you.
VELSHI: And good to be back here. I'm Ali Velshi. John has the morning off. Here are the morning's top stories.
What to cut, Social Security, taxes, thousands of federal jobs, and that is just the tip of the iceberg. We are breaking down the dramatic action proposed to slash trillions of dollars from the U.S. deficit.
CHETRY: The controversial alcoholic energy drink we've been hearing a lot about lately, Four Loko, there are new restrictions this morning. Four states now banning the so-called blackout in a can. It comes after a group of college students got sick from a night of binge drinking. And there are other states who want to put voluntary bans in place at liquor stores.
VELSHI: And it looks like the White House is backing down on their position on Bush era tax cuts. The president's top advisers suggesting that the administration is now ready to support and across the board extension of those tax cuts set to expire at the end of this year even for the wealthiest Americans.
Late breaking details from Dan Lothian who's traveling with the president in South Korea.
CHETRY: First, though, a lot of people made it clear in this election, one of the things they are really concerned about was government spending, the rising deficit and debts. The question this morning is what would you cut? Well, President Obama's bipartisan commission is out with their list.
VELSHI: Right. It was supposed to be out December 1st, but they leaked it themselves. And it's not pretty. Here are some of the proposals that touch you and every other American.
First, gradually raising the retirement age from 67 to 69. Two years. On taxes, eliminating or scaling back some of the most popular write-offs, including the mortgage interest deduction. The United States is the only developed country that offers this mortgage interest deduction.
And the tax increases would be offset by replacing the current tax rates with just three tax rates -- eight, 14, and 23 at the federal level. It's pretty tough medicine for the American economy and it came with a dire warning.
(BEGIN VIDEO CLIP)
ERSKINE BOWLES, (D) CO-CHAIR, DEFICIT COMMISSION: We're clearly on an unsustainable path. We can't grow our way out of this problem. We can't tax our way out of it. We can't cut our way out of it.
Every single member of Congress knows that the path we're on today is not sustainable and that if we don't bring the deficits down and eventually get the balance, we are headed for disaster.
(END VIDEO CLIP)
VELSHI: Clearly, this is something that you care about. In our national exit polls taken last Election Day, last Tuesday, 39 percent of Americans who voted say the highest priority for the next Congress is to reduce the deficit. That was followed very closely by people who think the government should actually be spending to create jobs.
Cutting taxes was only 19 percent of the population despite of the fact that everybody says everyone wants to cut taxes. Apparently, most people are concerned with cutting the deficit.
CHETRY: Let's bring in Christine Romans right now to talk more about this. This is a dramatic proposal. And it is just a proposal. How this shakes out in Congress is the story. But highlight some of the changes.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: There are a lot of changes. We're talking about cutting a third of the overseas military bases, cutting military personnel. We're talking about freezing spending on the federal level. You're talking about cutting thousands of federal workers.
You're talking overall a huge impact. Everyone would feel this. This, I want to be clear, this is the story of our time. And it's just beginning and these are just proposals, but this is how it all starts.
What's the problem? The backdrop here is $14 trillion of national debt. This is a number that is going up with no end in sight. This commission is tasked by trying to figure ought how to stop the rise of red ink.
We are spending vastly more as a country than we are taking in. The recession made it worse, but it had already been started before that. And many people on both sides of the aisle think that something has to be done. And all the solutions are dramatic. And this is just a grouping of all of them. Again, $4 trillion over the next decade is what they're hoping to cut in deficits to slow the ascent of the national debt. But already the knives are out.
Look, not everyone's going to be happy. From the beginning, we knew no matter what this commission was going to do or say there would be people who would not like the solutions. Among them, House Speaker Nancy Pelosi who says it's simply unacceptable.
Senator Dick Durbin, "There are things in there that I hate like the devil hates holy water." The things in there that many progressive and liberals don't like is even talking about in touching Social Security the program in terms of balancing our budget and our debt.
Republicans are opposed to raising taxes. They do not want to see taxes go up. In this proposal -- it was actually a set of proposals. It's not even the final proposal from this body. But in this proposal, there are simplified tax rules. But also getting rid of a lot of deductions, $1 trillion in deductions, folks, that frankly, Americans and businesses are addicted to.
CHETRY: Right. Being able to write up your mortgage interest, that's a huge incentive to buy a home as opposed to rent.
VELSHI: We're told that incentive wasn't necessarily the best for our economy over the last couple decades. No other country offers that and lots of other countries have the same ownership rates as the U.S.
ROMANS: And one of the proposals in here is actually just cutting the mortgage income tax deduction for loans over $500,000 for second homes and the like.
VELSHI: So less expensive homes you could still get.
ROMANS: There's something about controlling health care, paying doctors less. Not paying for health care. There's a lot in there.
VELSHI: Is issue different from than 9/11 commission where it was all hoopla and blue ribbon everything, and then ultimately it just got brushed under the door?
ROMANS: You hope it's a starting point now that horse trading begins behind closed door. There are 18 people on this commission, and 14 of them have to agree on the proposal to give Congress. A lot of people are thinking maybe this gives the president and Congress political cover.
VELSHI: Right, saying here's a whole bunch of smart people who came together.
ROMANS: When you look at yesterday, pictures in the U.K. of the students raiding the conservative headquarters and the burning in the streets in France. I'm telling you, this is the story of our lifetime now how we're going to pay for what we've already spent and get things simplified and get them to make sense again.
CHETRY: The president said before anybody goes commenting, gather the facts.
VELSHI: The full report is December 1st. Let's understand it. Let's all study it.
ROMANS: These would also phase in. It wouldn't happen right now. If you're generation y, you're the one seeing the big differences in your retirement age. Someone who is a senior right now, nothing is changing for you. Let's make sure the fear-mongering doesn't start on that, that somebody is trying to cut your benefits. This is all phased in, long-term stuff, but things that have to be discussed.
CHETRY: Christine, thank you.
VELSHI: "Blackout in a can," that's the nickname. It's been blocked out of Washington state. The liquor control board banned the alcoholic energy drink yesterday after a group of college students got sick from drinking too much Four Loko. That's what it's called.
It goes into effect November 18th. Oklahoma, Utah and Michigan have similar measures. The manufacturer says its product has been targeted unfairly.
CHETRY: People are joking that Google has a lesson for its employees, don't tell the world how well we treat you or you'll be fired. Apparently one person missing out on this 10 percent raise and other goodies is the person who leaked that word of that raise to the media.
VELSHI: That does puzzle me.
The federal government is paying out more and more six-figure salaries. "USA Today" reports the number of federal workers earning $150,000 orders more has jumped to ten times the level it was at just five years ago. The revelation comes as Republican congressman call for a pay freeze or pay cut for federal employees.
CHETRY: Odds are that there are a couple of students in your kids' class that have ADHD or perhaps your child does as well. The CDC says that nearly one in every ten children is being diagnosed with attention deficit hyperactivity disorder. It's not clear if the increase is actually to a rise or actual awareness. Two-thirds of the children diagnosed with the disorder are on medication to control it.
VELSHI: And it looks like Senator Lisa Murkowski's edge is growing in Alaska. The incumbent is battling Tea Party Republican Joe Miller as a write-in candidate. The count could last into the weekend. Apparently Miller trails write-in ballots by about 11,000 votes.
CHETRY: Well, they're almost home. This morning, passengers on board Carnival's Splendor say they can see the coastline, a welcome sight after being stranded. Five tugboats are towing that ship to shore. A fire in the ships engine room Monday caused it to lose power. CNN producer Paul Vercammen is filing the latest developments for us.
(BEGIN VIDEOTAPE)
PAUL VERCAMMEN, CNN PRODUCER: Executives for Carnival Cruise line say their disabled cruise ship Splendor will be pulled by tugboats into San Diego harbor at some time around midday. That's on Thursday. Carnival also promising the passengers on board the ship that they will get full refunds. They'll be put up in hotels if need to. Some have been shuttled to Long Beach where many parked and many will be flown out of San Diego.
In the meantime the USS Ronald Reagan played a big role helping out at sea. That vessel is back on maneuvers today. But as you can imagine, after airlifting some 60 pallets of food, supplies, water, and the rest on to the Carnival cruise ship, this was quite a different mission for many of those pilots who have been supporting U.S. troops in places like Iraq and Afghanistan.
COMMANDER TAMARA GRAHAM, NAVY HELICOPTER PILOT: It's very rewarding. What we do, obviously, there's goods and bads when you're in the middle of warfare and doing your job. But this is all an upside. We're helping out people that are in distress. It's an opportunity, actually, to improve the lives of a lot of folks that were in dire straits. So it's a great opportunity.
VERCAMMEN: The aircraft carrier pilots dropped some 60 pallets of water, food, and other supplies on to the carnival ship. Who's going to pay for all of this? Carnival is going to pick up the cost of supplies while the U.S. Navy is going to pay for the fuel, the aircraft and the rest.
Paul Vercammen, CNN, Coronado, California.
(END VIDEOTAPE)
VELSHI: And it's 10 minutes after the hour.
(WEATHER BREAK)
VELSHI: So much for if you snooze you lose. A new study suggests that night owls have higher IQs than people who get up early. I really would have guessed otherwise. I would think that early risers are hard workers and they are ahead of things. And night owls are people who party a little bit too much.
The fact is we offend no one if we talk about how this is wrong that morning people are smarter than night owls because night owls aren't watching us.
CHETRY: Exactly, they're still snoozing.
The news is if you are an early bird, you tend to be more reliable than night owls. You also work harder and get better grades. We both took this quiz and we sort of came up in the middle. VELSHI: We both were in the middle. We were separated in the middle. We're both neither night owls or morning. Don't you think when you do this job, you should squarely be in the early morning category?
CHETRY: Yes.
VELSHI: The buzz is building. Prince William and Kate
CHETRY: We love to watch implosions, but this one was botched. The smokestack fell in the wrong direction during that demolition, sending people running for their lives. We're going to have more on how it all turned out. It's 12 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Well, today is Veterans Day. It's the day that we take some time to pause, to honor, and remember all the men and women who served this country so honorably in the U.S. military.
VELSHI: You're looking at live pictures now from Arlington National Cemetery. At 11:00 a.m. Eastern Time, Vice President Biden will be there laying a wreath at the Tomb of the Unknowns. Since April 6, 1948, the tomb has been guarded 24 hours a days, 365 days a year. More than four million people visit it annually.
CHETRY: Well, the richest, most powerful nations in the world are now fighting over how to fix the global economy. It's happening at the G- 20 summit which is in Seoul, South Korea, this year. President Obama is attending a working dinner with other world leaders and he's been forced to defend the plan here in the U.S. to dump -- to pump $600 billion of new money into the American economy. That was the Fed's move last week. (INAUDIBLE) Germany's finance minister calls clueless.
VELSHI: Security is very tight in Seoul. Demonstrators have already broken out. More than 50,000 police and riot officers are deployed. And a seven-foot wall has been built to shield the summit from widespread protests expected to take place today.
Dan Lothian is traveling with the president. He joins us now from Seoul this morning.
Dan, a short time ago, we heard about a possible deal that the White House is working on that would result in jobs here in the United States. We also heard that that deal ran into some trouble?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right, and that's the U.S./South Korea trade deal, the free trade deal, which is the U.S. says is worth about 70,000 jobs back home, could pump $10 billion into the U.S. economy. This, as you know, is something that the administration had been talking about now for quite some time, hopeful that with progress that was being made that this deal could get done during G-20. But the White House and the president today saying that they have decided now that this wasn't going to get done in the next few hours, that they should slow things down. And the president in a joint press conference this afternoon saying that he wants this to get done perhaps in the next few weeks or so but not months. This is critical to the White House because the president has been increasingly looking overseas to create more jobs back at home. We saw in India, these deals that were done. $10 billion worth of deals for airplane, airline, engines, and also this 10 C-17s as well. And so the White House, increasingly again, looking to the overseas market to create those jobs on the home front.
This is a little bit of a setback. But again, the president hopeful that this deal can get done in the next couple of weeks, Ali.
CHETRY: And speaking of the news out on the home front, this morning, White House adviser David Axelrod suggesting in one report the administration is ready to accept an across the board continuation of the Bush era tax cuts. What are you hearing about that issue?
LOTHIAN: You know, the White House is saying that the president has talked about being open to negotiating on this issue. In fact, Deputy White House Communications Director Jen Psaki saying, quote, "The president has been clear that extending tax cuts for middle class families is his top priority and he's open to compromise to get that done. He's also expressed concern about the cost of making the highest income tax cuts permanent and is looking forward to discussing this and other issues with bipartisan congressional leaders next week."
The president's big concern has always been that by extending this tax cut for the wealthiest Americans, it would cost about $700 billion. This is something he says that the U.S. simply cannot afford. But clearly, after the midterm elections, the president saying he's willing to negotiate to get this moving forward.
CHETRY: Dan Lothian for us this morning in Seoul, South Korea. thank you.
Well, she is playing the country music star on the big screen. Gwyneth Paltrow had a guitar, had a mic and she was rocking out right in Nashville's best. So how did she do?
VELSHI: I thought she did very nicely.
CHETRY: Well, we'll let people decide.
VELSHI: All right.
And from "THE SITUATION ROOM" to the "Soul Train" awards, Wolf Blitzer taking old school R&B.
It is 20 minutes past the hour.
(COMMERCIAL BREAK) CHETRY: Twenty-three minutes past the hour. Time now for our "Morning Talkers."
VELSHI: Is that Gwyneth Paltrow singing?
CHETRY: No, that was Estelle. The stories that got us talking in the newsroom this morning. First of all, this one. We all love a good implosion, right? You knock the old, you build up the new.
VELSHI: I do. But there's no reason for anyone near one. I'm happy to watch on TV.
CHETRY: People like to go watch the implosion in person. It's very exciting.
VELSHI: Well, this one as you see in Springfield, Ohio, not so good, right?
CHETRY: Right. Unless it goes wrong, which is what happened here. What happened was they were trying, you know, knock down --
VELSHI: Implode something?
CHETRY: Yes, that's obvious. Let's just show it again, please.
What they were trying to do is knock down -- there you go. That 275- foot tower and it snapped. It went the wrong way. It snapped the power lines. It crushed part of the power substation. No one was injured, but they had traffic lights out. Eight thousand people in the area lost power and those spectators --
VELSHI: There's no reason to have kids near that.
CHETRY: The spectators who went to go see it had to run for their lives.
VELSHI: Yes. Don't be a spectator in a demolition. Watch it on TV. You're guaranteed to see it on TV, right?
New stars rising in Nashville last night on country's biggest night, the 44th annual CMA Awards. "Entertainer of the Year" went to Brad Paisley. Zac Brown won -- Zac Brown Band won "Best New Artist." And a new power couple swept the female and male vocalist of the year -- Miranda Lambert and Blake Shelton.
CHETRY: But guess who else was out there, who you wouldn't possibly or probably expect to see it.
VELSHI: I was surprised to see this. Gwyneth Paltrow.
CHETRY: Good old Gwyny (ph), Gwyneth Paltrow. She showed that she's a little country last night.
VELSHI: Yes.
CHETRY: She went to the CMAs to belt out the title track of her new movie "Country Strong," where she plays a country music singer. So here's a listen.
(BEGIN VIDEO CLIP)
GWYNETH PALTROW: You prove me but I won't stay that long because I'm country strong. Yes, I'm country strong.
(END VIDEO CLIP)
VELSHI: I thought she did a great job.
CHETRY: Well, anemic. I mean, it wasn't bad. She's probably nervous. She doesn't look she's really strumming the guitar or singing that loud.
VELSHI: You're a tough crowd.
CHETRY: Well, she's a country star she should be out there. I mean, Taylor Swift.
VELSHI: What did you say? What did you say about Wolf Blitzer when he was on "Ellen"?
CHETRY: I said he did a good job.
VELSHI: Dancing?
CHETRY: Yes.
VELSHI: Yes.
CHETRY: Did a great job.
VELSHI: Did you see me dancing? Imitating Wolf Blitzer dancing?
CHETRY: Yes. But I think that you, if you were really on "Ellen" you might get a little nervous.
VELSHI: Oh, come on.
CHETRY: I don't know if you'd bring it like Wolf did. He wasn't afraid.
VELSHI: Well, Wolf can bring it. We all saw him dance on "Ellen." But apparently the R&B community did not see him dance. Wolf Blitzer was a guest announcer last night at the most soulful night in entertainment. Soul Train awards in Atlanta. He's also up for reggae artist of the year.
CHETRY: Good luck with that.
VELSHI: No, he's not. It airs on November 28th. We can't show you what happened inside because it airs on November 28th, but we caught up with him on the red carpet. Take a look.
(BEGIN VIDEO CLIP) WOLF BLITZER, CNN ANCHOR: It's a surprise. I really can't talk about it too much because the audience is going to be pretty happy when they see what I'm going to do. But it's going to be late of fun.
It's not exactly "THE SITUATION ROOM." It will be a little different.
UNIDENTIFIED FEMALE: Right.
BLITZER: A different side of Wolf. I was growing up in Buffalo, New York, and I remember vividly Saturday mornings watching Don Cornelius and all my favorite groups, whether The Temptations or the Four Tops, or Gladys Knight, The Jackson Five. They were all there. All the kids were dancing. We had a lot of soul. It was very, very cool. And that's why I'm here because "Soul Train," you know, was part of my life.
(END VIDEO CLIP)
CHETRY: He had a lot of soul.
VELSHI: He had a lot of soul. He's a big music fan. I mean, every time I've worked with Wolf and we've been covering anything to do with a musician or music, he really has a great depth. I think he's got a depth --
CHETRY: Oh, yes. And you want to know something else?
VELSHI: What?
CHETRY: He is watching us right now as he runs on the treadmill as he does every morning.
VELSHI: There you go.
CHETRY: Rain or shine.
VELSHI: So that means I shouldn't do my imitation of him at "Ellen"?
CHETRY: That's right.
VELSHI: All right.
CHETRY: I would save that.
VELSHI: I hope you don't have a TiVo, Wolf, because I did it last hour.
CHETRY: So is Prince William ready to pop the question? You know the British tabloids are buzzing about this one. Coming up, Katie Nicholl, author of "William and Harry: Behind the Palace Walls," is going to be joining us to tell us why a royal wedding could soon be in the works.
VELSHI: Whoa, I can't hardly wait.
CHETRY: Twenty-seven minutes past the hour. (COMMERCIAL BREAK)
CHETRY: We're crossing the half hour. Time for a look at our top stories.
A powerless cruise ship closing in now on San Diego harbor. Five tugboats are towing the Carnival Splendor back to port after an engine fire Monday left the nearly 4,500 passengers and crew stranded out of the Pacific Ocean. Carnival is now offering passengers refunds as well as a free cruise in the future.
VELSHI: Desperate measures for desperate times. The leaders of the president's bipartisan deficit commission released their preliminary proposals for cutting the U.S. deficit. These are long-waited proposals. Among the recommendation, gradually raising the retirement age, eliminating or reducing the tax deduction for home mortgages. And cutting defense spending by $100 billion. It's all designed to cut $4 trillion from the U.S. deficit over the next 10 years.
CHETRY: President Obama is honoring Veterans Day in South Korea today where he paid tribute to the generations of men and women who served in U.S. military and called the Korean War, "a victory for freedom." You're looking right now at live pictures. This is Arlington National Cemetery where in just a few hours, at 11:00 a.m. Eastern time, Vice president Joe Biden will be there to lay the wreath in a ceremony for the Tomb of the Unknowns.
VELSHI: An a big thank you to all the troops serving on this Veterans Day. We're looking at one brave soldier, he may have saved his entire squad when they came under fire in Afghanistan. That's him. On Tuesday, Sgt. Sal Giunta is going to be honored at the White House with the medal of honor. Barbara Starr now with his incredible, incredible story.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Indeed, the nation's highest honor for valor on the battlefield. When I met Sgt. Giunta, he told me just a few years ago, he'd been working one night at a Subway sandwich shop, mopping the floor. All by himself, listening to a radio commercial that the recruiting station downtown was giving away free t-shirts. He said he wasn't really doing much with his life. So he decided to go and get a free t-shirt. Just a few years later, he is stepping into the pages of American history.
(BEGIN VIDEOTAPE)
SGT. Well, the whole time frame maybe lasted, anywhere between like two minutes, three minutes. And five or six lifetimes. I don't know.
STARR (voice-over): But in those two, three minutes, Army Staff Sergeant Sal Giunta went from a self-described mediocre soldier to a hero. That October night, Giunta was walking along a ridge line with other members of his unit, assigned to protect other soldiers as they were walking back to their base.
UNIDENTIFIED MALE: And single shot rang out. Everybody started getting down behind cover.
GIUNTA: There's not just one of them. It's not two of them. It's not 10 of them. It's probably more than 10. And they're really not that far away.
UNIDENTIFIED MALE: You actually watch the guy pulling the trigger who is aiming at you.
GIUNTA: It seems like your world is exploding in bullets and RPGs and everything. We looked and it was along the whole side. It was along our flank.
STARR: Hit eight times was the man in front, walking point, as the military says, Sergeant Josh Brennan of McFarland, Wisconsin. He talked to his dad, Mike, only a few days before.
UNIDENTIFIED MALE: Actually, he had volunteered for that mission that day.
STARR: On that ridge line, Josh Brennan was down, severely wounded, Sal Giunta raced ahead into the face of Taliban fire.
UNIDENTIFIED MALE: He got to the front. He killed one of the guys that was dragging my team leader away, Sergeant Brennan. Wounded another one. Recovered Sergeant Brennan. Brought him back to an area where we could get him and continue to fight, started the aid on him. For all intents and purposes, the amount of fire that was still going on in the conflict at the time, he shouldn't be alive right now.
STARR: Sal Giunta keeps insisting he doesn't deserve the nation's highest military award for heroism.
GIUNTA: When I first heard that they were putting me in for the medal of honor, I felt lost, I felt kind of angry. It came at such a price. It's very bittersweet. I mean, it's such a huge honor. It's a great thing, but it is a great thing that has come at a personal loss to myself and so many other families.
STARR (on camera): And that is what you want people to know?
GIUNTA: Absolutely.
(END VIDEOTAPE)
STARR: And indeed, when Sal Giunta on Tuesday stands next to President Obama at the White House, he told me, he will be accepting this award on behalf of all of those who served in a very violent, vicious place, in the war zone. A place that became known as "the valley of death."
VELSHI: Now, these stories, when you hear them about medal of honor recipients, they're so remarkable. I mean, these are just so beyond the norm and beyond the call of duty. But for him to say what he said there, that he felt uncomfortable. He felt -
CHETRY: Angry? VELSHI: - angry about the fact. I mean, there's remarkable honesty in that.
STARR: This is a very young man who is remarkably candid. He makes it very clear that he has a lot of mixed emotions about this. He is honored, but he is adamant it is on behalf of all of those who served. And it is especially on behalf of Josh Brennan and the men of Cumindosa (ph). The men who didn't make it back.
VELSHI: He said he take them over -
STARR: Exactly.
CHETRY: It just makes you think - I mean, we're all so lucky we owe them such a debt of gratitude. We have people defending our freedom here.
STARR: Absolutely. And on this Veterans Day, so many need to be remembered. Homelessness. Joblessness, very high in the veterans community. Not everyone makes it back and is able to resume their lives in such a normal fashion.
VELSHI: That's a good thing to remember. Thank you, Barbara.
CHETRY: Barbara, thanks.
VELSHI: And we will continue to remember Veterans Day today and we should be remembering the veterans who fight every day.
Are you ready for a royal wedding? After eight years of dating and two brief breakups, it looks like Prince William and Kate Middleton will finally tie the knot. Is it really going to happen?
CHETRY: We're going to find out. We're going to get all the details, exclusive about this, coming up. 36 minutes past the hour.
(COMMERCIAL BREAK)
(MUSIC PLAYING)
CHETRY: Royal watching. People love royal watching. One of the big things, of course, when will the future king marry, right? It looks like Prince William is finally coming to a conclusion.
VELSHI: Who said that? Who told you that?
CHETRY: Told me what?
VELSHI: Is that out? Because all I hear is that they talked about it, and they may be getting engaged. And they're not.
CHETRY: They may be getting closer and closer to the time. After eight years of dating. Two high-profile breakups. The prince and his girlfriend Kate Middleton appear ready to tie the knot.
VELSHI: They call her "Waity Katie" because she's waiting so long. Our next guest says we could be hearing about a royal engagement in 2011, around the corner. Katie Nicholl is the author of "William And Harry: Behind the Palace Walls" and she joins us this morning. Full disclosure. I'm Canadian, so this royal family is my royal family.
KATI NICHOLL, AUTHOR, "WILLIAM AND HARRY: BEHIND THE PALACE WALLS": It's a wonderful royal family to have as well. And I think we're really (INAUDIBLE) royal family as well.
VELSHI: Right. It's just kind of is everybody's. Americans, in particular are very interested. We'll get to why in a minute. Are we going to see a royal wedding or at least a royal engagement?
NICHOLL: Well, all the signs in the UK, we are. You're absolutely right. It's been on. It's been off. It's been nine years of this fever speculation. But if you actually look at what's been happening over the last few weeks, it's very significant. Probably the most important thing is that Kate's parents were invited to Balmoral, which you know is the Queen's Scottish residence. That was a big deal. That was we are welcoming you into royal fold.
And I found out over the weekend that Kate's having a whole wardrobe tailor made for her for a special event and you wonder what that's going to be. And then I found out that the royal mint are manufacturing a commemorative coin. Now, that only really happen if a royal wedding is in the offing.
VELSHI: Wow.
(CROSSTALK)
NICHOLL: All the signs of that.
CHETRY: You also talk about, which is interesting, in your book, this pact was made in vacation when they were in Seychelles together. Tell us about that.
NICHOLL: You're absolutely right. You remember they split up in 2007. And when they got back together, William decided that needed some time together. So he whisked her off to this private island. Over there, they basically decided that they had to make a decision about their future. You know, Kate was "Waity Katie." And she had enough of waiting.
He said "I've got to finish my military training. Once that's done, this will pave the way for us to get married. You are the one. I love you deeply and we're going to end up together." So I think when she had the security of that pact gave her the confidence to go through with the relationship. So "Waity Katie" but I think it's going to be well worth the wait.
VELSHI: I like that military training excuse. You know, when I first met my in-laws for the first time, I didn't get a special wardrobe tailored. Because I thought I'm going to be seeing these people if things work out very often and I didn't want to create expectations that every time I'd see them and get my hair done and I had to wear something special.
CHETRY: I'm so glad you don't have to get your hair done when you see your in-laws. You don't have to worry about the hair.
VELSHI: Yes.
NICHOLL: She has made a huge effort with everything. Not just the clothes. Every time she steps out. I mean, she's a beautiful, beautiful looking girl. And I think -
CHETRY: She is. So will there be this comparison, inevitably, Katie, with Diana?
NICHOLL: I was just going to say, there is going to be. Absolutely.
CHETRY: Can she measure up?
NICHOLL: I think she can measure up. Look at Diana when she just started dating Charles. She was also very shy. You know, you remember pictures of here in that see-through dress, she just didn't know what to do. And we've seen that look with Kate, but I also think with Kate, over the last nine years, you know, the palace have helped her. They've aided her in introduction into public life. And I think that's very important because I think that also means she's not likely to make the same mistakes that Diana did. She's aware of the paparazzi. She knows not to talk to the press. She hasn't had a hair out of the place and that's great.
VELSHI: That said, they haven't had a great track record with royal weddings of one of late. Is there something that one does or is there due diligence that the royals have done to suggest that this as a relationships under the stresses that any royal relationship comes under is likely to work?
NICHOLL: Well, you know what, I think the fact that they've been together for so long is going to make it work. And also, they've lived together. You see, this hasn't happened before. This is a thoroughly modern romance. That's really analyzing the book. His father would never have enjoyed these privileges. I mean, they were living together at St. Andrews. They're living together now, pretty much as man and wife. And they've had all this history together. So, it's got the signs that it can work.
CHETRY: You mentioned something else as well that may or may not be key for people who have seen why the Princess Diana situation didn't work out. Why Fergie and Andrew didn't work out is that they both, when talked candidly felt that they were undermined by the palace and by the queen's people.
NICHOLL: Absolutely.
CHETRY: Whereas, you said that Kate has the support.
NICHOLL: Yes.
CHETRY: So how will that make a difference? NICHOLL: It's going to make a huge difference. I mean, you can never imagine Kate Middleton doing something like the "Panorama" interview. It will never happen. She's been trained right from the start. She knows what royal protocol is and what isn't and she stays within that boundaries. I mean, I think it's quite significant. We've never heard her speak, not once. She's never given an interview. So getting information on her for this book, I can tell you, was a challenge but I think you will learn about her -
VELSHI: That's a good sign, though?
NICHOLL: Absolutely.
CHETRY: All right. Well, we look forward to and our viewers know about it as well. "William and Harry: Behind Palace Walls." Well, I was reading through it. I love royal watch. Katie Nicholl, thanks so much.
NICHOLL: Thank you.
VELSHI: All right. There's snow in the Rockies and it is beginning its trek eastward. We're going to fill you in and see if you're in the track with some snow with Rob Marciano, coming up just after this.
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CHETRY: Wow, what a pretty sight this morning? Almost makes you wish you were in Miami, doesn't it?
VELSHI: Yes. I'm happy to be here in New York? I don't want to be somewhere else. That would mean another flight.
CHETRY: I'm just saying. The clouds are puffy, it's beautiful, 73 degrees and it's going to be a high of 81.
VELSHI: I'm saying we're probably compelled to say something like that if we show a nice picture of Miami, right? Can't say, glad I'm here and not there.
CHETRY: Right.
VELSHI: With 53 degrees or whatever it is here.
CHETRY: Exactly. A little later we'll show a beautiful picture of Central Park, you'll be happy you're here.
VELSHI: I'll be happy.
CHETRY: The leaves are changing colors.
VELSHI: But, you know what? Let's just talk about what this weather is going to be like because there's snow in the Rockies. It's heading east. Rob's here to tell us more of what to expect across the country. It's like two different countries right now, Rob.
(WEATHER REPORT) VELSHI: On the south side of Staten island, New York, this morning, there's a lot of talk about turkeys and they're watching where their step, too, because turkeys have taken over the neighborhood. Check this out. About 100 of them running loose. Someone released a handful of the birds 10 years ago and they have multiplied tenfold. The community is divided on what to do with the birds.
CHETRY: Hello! Divided on what to do with them? We're a couple of weeks away from Thanksgiving!
VELSHI: A lot of people caring for them and feeding them every day. And a lot of people think, wow, that's nice. We've got cared for, fed turkeys.
CHETRY: This is free range at its best.
VELSHI: And it's two weeks from -- I don't know about free range birds in New York. I don't know how good an idea that is.
But some people would like them --
CHETRY: That's as free range as you can get. You can't even drive across the street.
VELSHI: I don't know if that counts.
People want them served at local shelters two weeks from now. So officials are taking a neighborhood survey to decide whether to implement the Thanksgiving option.
CHETRY: Everyone knows me, I'm an animal lover, right? But I do --
VELSHI: But you draw the line at turkeys? Because turkeys are food.
CHETRY: No. As long as animals are treated humanely, fine. But yes, we're talking about rising costs in food.
VELSHI: They're living free in Staten Island. Is that humane?
CHETRY: Yes. They're happy right now but if they are -- if the Thanksgiving option is used, you can go to feed some hungry people, and the turkeys are not harmed --
VELSHI: So you're an animal lover unless it comes to your dinner?
CHETRY: The turkeys are treated humanely on their way to the table.
VELSHI: Right.
CHETRY: That's the best way to put it.
VELSHI: Excellent. No inconsistencies with that perspective.
CHETRY: No, not at all. I mean, what can I do? Why does it have to taste so good?
Top stories just minutes away. Grainy cell phone video allegedly showing a high school basketball coach beating a player.
VELSHI: Yes, this is interesting. You can see it. See that? I don't know what that is. Is that a strapping or a paddling? And, there's audio, too. It's not very long. Only about six seconds long. Parents now suing the school district. We're going to hear from a father who says his son was whipped.
CHETRY: Yes. It's amazing.
Well, also helping the paralyzed walk again, to helping people fly. We're taking a look at the 50 best inventions of 2010.
VELSHI: Look at that. I want one of those.
CHETRY: That's a jet pack. See you later. Forget traffic.
VELSHI: It's a bit big. But that's going to change my life.
Yes, babies do remember. Amazing new research says your earliest memories help make you the person you are today. Somebody must have bought me a vest when I was a baby.
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CHETRY: Fifty-two minutes past the hour.
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VELSHI: That is NASA mission control. It is not. It is our control room.
CHETRY: They're always up to something.
VELSHI: These guys could launch a rocket.
CHETRY: Oh, yes. Oh, yes.
Well it's time for our AM House Call this morning. Fifty-six minutes -- we can put the music down now. I can't hear myself think. They may gross you out, they may even scare you, but that is the point. The FDA says it wants some blunt labeling on cigarette packs, including phrases like, cigarettes cause cancer and smoking can kill you.
You say you're from Canada. They have them on the cigarettes --
VELSHI: They have them. Most of the pack of cigarette is just a big photo of how bad it is or words about what cigarettes can do.
CHETRY: You're right. Graphic pictures in some cases of cancer patients, of corpses, coffins, and even rotting lungs and gums.
VELSHI: Good. Let's not lie to people. For years people smoked because they said they didn't know, they didn't have the evidence. The evidence is there. Put it on the box. It'll save some lives.
Odds are there are a couple students in your class or your kid's class that have ADHD. The CDC says nearly one out of every 10 kids has attention deficit hyper activity disorder. It's not clear whether the increase is due to an actual rise in the disorder or a growing awareness of it. Health officials say two-thirds of the children diagnosed with the disorder are taking medication to control it. And, of course, there are people say this whole thing is overdone.
CHETRY: Right. A Dr. Leonard Sax, for one, has written a couple books on it. "Girls on the Edge," and I think "The Trouble with Boys" are one of the books. He says that because the genders learn differently, you'll see boys diagnosed at higher rates and medicated at higher rates when there are things that you could actually do without medication that help them.
VELSHI: Do you name drop a lot on the show?
CHETRY: Well, Dr. Leonard Sax has really done a lot of research on this. So --
VELSHI: All right. Go ahead.
CHETRY: How many times have you heard that babies don't remember things? There's new research by a man by the name of -- I'm just kidding -- turning conventional wisdom upside down. Scientists say under the right circumstances infants can form memories that last for a long time.
You know why I love this story? Because you think of hours you spend with your children.
VELSHI: Right. All that fun stuff when they're babies. And you're hoping that somehow they remember this.
CHETRY: Did some of it sink in? You know, did some of that love and caring sink in? Well, apparently it does. And while you may not actually be able to list off the things your parents did for you as an infant it's something about the subconscious. And one French study actually found that toddlers prefer smells that they were actually first exposed to in first weeks of life.
VELSHI: Somebody bought me one of those onesies that was like a three-piece suit when I was a kid.
CHETRY: Exactly. It had a built-in tie and --
VELSHI: A built-in tie, the whole thing.
CHETRY: I mean, Ali sleeps in this stuff.
VELSHI: Yes. This is actually still -- this is a one piece. CHETRY: You got to the gym at night. You just pull it on, zip it on up the back and you're ready to go.
VELSHI: Dr. Marla Hickenbottom (ph) has written books on that.
CHETRY: Extensively.
VELSHI: Extensively.
The pieces may help keep you together. An new Oxford study says playing with Tetris could help people deal with stress and even reduce painful flashbacks associated with post-traumatic stress disorder.
CHETRY: See, I get post-traumatic stress from playing Tetris too much because I see everything and how to compartmentalize them into blocks. It doesn't work for me. Sonic is much more -- Sonic the Hedgehog --
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CHETRY: All right. We're going to take --
VELSHI: I'm learning a lot this morning.
CHETRY: Top stories coming up.
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