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Washington's New Spending Reality; Britain's Queen Hospitalized; Leader of Algeria Raid Could Be Dead; Catholic Church at Crossroads; Pay Without Cash or Cards; Michigan Governor Takes Over Detroit; Champion Golfer Quits
Aired March 03, 2013 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ALINA CHO, CNN ANCHOR: Hi, everybody. So glad you're with us. I'm Alina Cho, in for Don Lemon tonight.
Let's get you to up-to-speed in the hour's stop stories, including this: Britain's Queen Elizabeth is expected to spend the next two days in the hospital. Doctors admitted the queen today with a stomach flu. Buckingham Palace said the 86-year-old queen is in good health and good spirits and that she's in the hospital as a precautionary measure. Keep it here, we are live from London in just a few minutes.
A shocking apology from a Catholic Cardinal mired in scandal. Scottish Cardinal Keith O'Brien has been dogged by allegations of abusing four men studying to be priests back in the 1980s. O'Brien initially contested the claims. Today, he reversed course and apologized, saying his sexual conduct had fallen below standards, expected of a priest. He resigned last month from his post as archbishop of Scotland.
U.S. officials are trying to confirm that a top terrorist allegedly the mastermind behind a deadly attack at an Algerian gas facility is dead. His name is Mokhtar Belmokhtar. He said he led the attack in January that left more than three dozen hostages dead.
The nation of Chad said its military killed Belmokhtar in a raid in Mali. But a U.S. official says analysts are still searching through intelligence reports to find evidence backing the claim that Belmokhtar is dead.
An expanding sinkhole has taken a Florida man's life and now cost his family their home. Take a look there. Crews demolishing the house where that sinkhole opened up on Thursday night and swallowed Jeff Bush while he was sleeping in his bed. Officials have called off the search for bush's body saying the sinkhole is simply too deep and too dangerous. Demolition is expected to continue tomorrow.
Before heading into the first full week of a government working under mandatory budget cuts, and key lawmakers aren't giving much hope of an end in sight.
Emily Schmidt is live in Washington with what we're hearing today.
Hey, Emily. Good evening. EMILY SCHMIDT, CNN CORRESPONDENT: Hi, Alina. Good evening to you.
You know, there are really two different situations that are unfolding here at the same time. First, is there even talk between the parties about finding compromise on the cuts? Well, the president's senior economic aide says, yes, there is. Gene Sperling says President Obama talked on the phone to both Republicans and Democrats yesterday.
Second question, though, will it result in action? Just listen to Senate Minority Leader Mitch McConnell.
(BEGIN VIDEO CLIP)
SEN. MITCH MCCONNELL (R), MINORITY: The president's free to call whoever he chooses to. He doesn't have to go through the speaker and myself to talk to our members. I fully expect him to do that.
But so far, I haven't heard a single Senate Republican saying they're willing to raise one dime in taxes in order to avoid a spending reduction commitment that we made on a bipartisan basis just a year and a half ago.
(END VIDEO CLIP)
SCHMIDT: So with no new compromise in the works, the $85 billion in mandatory spending cuts now begin to kick in. That's going to impact everything from defense spending, to airport security lines, to Head Start programs.
House Speaker John Boehner said in an interview that was taped on Friday for "Meet the Press", the House is going to work this week to avoid another potential roadblock. He said they'll be putting together legislation to keep the government funded beyond the date, when the money would otherwise run out. That would be later this month.
(BEGIN VIDEO CLIP)
REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: Absolutely. We at the House next week will act to extend the continuing resolution through the end of the fiscal year, September 30th. The president this morning agreed that we should not have any talk of a government shutdown. So I'm hopeful that the House and Senate will be able to work through this.
(END VIDEO CLIP)
SCHMIDT: But when it comes to the budget cuts that are already beginning, Speaker Boehner said he doesn't think anyone quite understands how these cuts will really work and if they will hurt the economy -- Alina.
CHO: Well, the speaker seems pretty optimistic about avoiding a government shutdown. You know, what do we know about this House measure that he's been sort of intimating about? SCHMIDT: We heard another voice join the chorus of the optimism. In fact, Senate Majority (ph) Leader Mitch McConnell also predicted today that the bill could pass in the Senate with bipartisan support. But we don't know the details of the bill. And, as you know, Alina, those details are often what prove to be problematic.
If Republicans try to use the bill to try to alter these spending cuts that started on Friday, it would really create even more of a rift between Republicans and Democrats. So, today, the White House responded to Speaker Boehner's comments, they urged support for what they called a truly clean legislation. That would be something that doesn't have any strings attached to these new budget cuts -- Alina.
CHO: All right. Emily Schmidt live in Washington for us -- Emily, thank you very much.
Meanwhile, there is plenty of confusion surrounding these cuts. Tomorrow was supposed to be the day that the FAA began closing some of those air traffic control towers, but the agency has now backed off that plan. In a conference call on Friday, the FAA retracted an earlier announcement that the cuts would force 168 towers to close. Contractors who were invited to listen in were told that the original announcement had not been authorized.
Well, an exciting and optimistic announcement today from doctors working to cure HIV and AIDS. Researchers at a medical conference described an HIV-positive little girl as being, quote, "functional cured of her HIV infection". It's incredible. The 2-year-old was infected by her mother who didn't know that she herself was HIV positive. We'll have much more on this announcement with our Elizabeth Cohen, coming up right here on CNN tonight.
Now to London, that's where Queen Elizabeth will spend the night and probably longer in the hospital.
Max Foster is CNN royal correspondent.
Max, great to see you as always. You know, there is always what's known publicly and what is whispered privately. You have covered the royal family for quite some time. In your best guess, how serious is this?
MAX FOSTER, CNN ROYAL CORRESPONDENT: Well, you know, there is a lot of speculation around this. We've got very little information. We had the statement and I've had chats with people in the palace today as well. What they're telling me is she's in good health and in good spirits actually.
But you have to look at what's happened here. She hasn't been in hospital for a decade. She's in hospital.
This is the sort of person who doesn't like fuss. She doesn't rush into hospital at the drop of a hat. She was told -- we were told about this gastroenteritis on Friday. She probably had it before, and now Sunday, she's in hospital. There has been some analysis, I have to say, the statement, Alina, because they're not saying that she has gastroenteritis. They're saying she has the symptoms of gastroenteritis. And people are reading things into that.
But we haven't got clarity on that. And people are just concerned, because this doesn't happen very often to someone who's so dedicated to her job, and also dedicated to not creating a fuss.
CHO: Almost 87 years old, and by all accounts, still strong and in great health. But nonetheless, and forgive me if you did mention this already, but, Max, she did cancel, I believe I heard you say she did cancel her public appearances for the next week, right? And she doesn't often do this.
FOSTER: No. The last one I can remember is in October, and that was (INAUDIBLE). And before that, I can't really remember. It's been years since she's canceled anything, because she absolutely commits to everything she's going to do.
This week was really important, because there's a big visit to Rome. She's going to be -- the president there is very high profile. Lots of journalists were going to go with her. That's one of him, but she doesn't like to cancel anything at all.
It was interesting today that she had a private event. She was giving a medal to a member of long-serving staff and she carried on with that, when clearly, she must have been feeling awful, because in the afternoon, she had to go to hospital. That really sums up her commitment to her work. And the fact that she's canceled a whole week's worth of engagements, the beginning of the week, it has to feel very serious to her.
CHO: All right. Max Foster, live for us in London -- Max, thank you very much.
Dennis Rodman, goodwill ambassador? Is this the American you want leading with the new leader of North Korea? We will ask our political analyst, is he helping or hindering efforts towards good relations?
And a devastating car crash in the New York area, a young expectant couple killed. Incredibly, their child survives. We'll explain.
(COMMERCIAL BREAK)
CHO: Eleven minutes after the hour.
No group has claimed responsibility for a huge car bomb that killed at least 42 people in Pakistan today.
Another 145 people were injured in the blast. It happened in Karachi. Police believe Shiite Muslims were the target. Government officials say the death toll will rise as teams recover more bodies from the scene.
Syria's president has just spoken to a British newspaper, prompting one U.K. official to call it, quote, "one of the most delusional interviews that any national leader has given in modern times." Bashar al Assad told the "Sunday Times" that British leaders are, quote, "shallow and immature". He also said the U.K. is trying to arm rebels pushing to overthrow him. She has, for years, been in a civil war that's killed over 70,000 people.
New Secretary of State John Kerry pledged $1 billion today to help Egypt. Kerry met with Egypt's President Mohamed Morsy and promised more aid if the country implements certain economic and political reforms. Also today, Egypt's state-run news agency reports that former President Hosni Mubarak will be retried in April. The 84-year- old Mubarak is appealing a life sentence for his role in the deaths of protesters two years ago.
Well, those ominous and feared forced spending cuts are now officially in place. So now what? Major stock markets actually went higher on Friday and so far, there's been no panic on the streets. Also, since the cuts will take effect gradually, the political impact may be delayed as well. Or will it.
Let's talk about it with two of our favorite analysts, L.Z. Granderson and Ana Navarro, both CNN contributors. L.Z. is also a senior writer at ESPN. Ana is a Republican strategist.
Great to see you both.
L.Z., coming out of this, you know, Republicans seem to be sounding pretty confident, saying that they held firm not raising taxes. Do you think the president overplayed his hand on this a bit saying this was dumb and arbitrary?
L.Z. GRANDERSON, CNN CONTRIBUTOR: I don't think so. I just think he necessarily hasn't done a great job explaining how this is going to impact us in the long run. If you're waiting for something to happen immediately because of the cuts, I don't think a lot of Americans are going to feel that.
I would like to go back and talk about what happened between 2009 and 1999. We had 1.9 percent private sector job growth. We didn't do that all at once. But it was a gradual buildup. Then, all of a sudden, when the recession happened, we were like, holy cow.
That to me what's going to happen with those forced budget cuts. We're not going to feel it right away. It's going to be a gradual thing in 10 years (ph). If we don't adjust it, we're going to be like, "Holy cow, what happened?"
CHO: Well, Ana, and let's talk a little bit more about that, because you talk about L.Z., that sort of long-term effect. You know, "New York Times" in its second graph in the lead stories said today lost in a talk of Washington's dysfunction is this fact, on paper at least, President Obama and congress have reduced projected deficits by nearly $4 trillion over a decade. And that is really the goal toward stabilizing the national debt.
So, some people might argue, hey, it might hurt right now, but it's better in the long run.
ANA NAVARRO, CNN CONTRIBUTOR: You know, Alina, I don't think many people are arguing much of anything, because people are just so tired about this topic. They're tired of being brought into a frenzy and a froth every three months by the government.
I think it is a very risky move for everybody involved, for Congress and for the president. I don't understand how Democrats and the president can rationalize not allowing the cuts to be not arbitrary, but actually specific, and having more control on how the government cuts. Look, here's the problem. The problem number one, we've got a frenzy every three months, because all they do is govern by kicking the can down the road, not by solving the big issue.
And problem number two is that if you ask most Americans if they think the government is bloated, most Americans will tell you, yes. If you ask Americans if they think that you can cut 2.5 percent from government budgets, most Americans will tell you yes. And most Americans, most American businesses and families, have had to cut themselves in the last several years.
CHO: All right.
NAVARRO: So there's not that much sympathy.
CHO: All right. Let's talk about something that really got my attention this week, which was Dennis Rodman, the Worm, self-described worm, showing up in North Korea last week. He even met with North Korea's new leader, Kim Jong Un.
Let's listen to what Rodman told George Stephanopoulos on ABC this morning about that trip.
(BEGIN VIDEO CLIP)
DENNIS RODMAN, FORMER NBA PLAYER: The one thing that I said was, we talked about -- you can see the clips, or whatever -- he loves basketball. I said, Obama loves basketball. Let's start there. Let's start there. If you see the quotes in the papers, he says that. He says that about sports. Both of you guys love basketball so much.
(END VIDEO CLIP)
CHO: I mean, L.Z., I don't even know where to begin. What do you make of this? I've been to North Korea twice. Lucky enough to have been. I mean, it's a journalist's dream to be able to meet Kim Jong Un face-to-face. Many diplomats would fight for that chance as well, you know?
And here Dennis Rodman is the first American ever to meet face-to-face with him. What do you make of it?
GRANDERSON: I don't. I just don't. I'm so thoroughly embarrassed for us, so thoroughly embarrassed for North Korea, so thoroughly embarrassed about this conversation, because it's not really talking about anything serious. This is like a publicity stunt. I grew up in Detroit. I'm born and raised Detroiter. I loved Dennis Rodman the basketball player. And I think anyone who played with him would tell you he's one of the best basketball players they ever played with. That's why he's in the hall of fame.
But seriously, structuring a Sunday morning around his trip to North Korea in conjunction with talks about international politics? It's absolutely ridiculous.
CHO: Ana, what do you think the point was of this trips, besides shooting an HBO documentary?
NAVARRO: I think it was pointless. I think there was no point. I'm absolutely with L.Z. on this one. It's all I can do to keep my eyes from rolling to the back of my head to be discussing this.
Frankly, you know, let's talk about his jacket and his choice of clothes. But you know, we're not going to send Peewee Herman to negotiate peace between Israel and the Palestine and we're not going to send Mickey Mouse to go solve the issue with Syria.
This is a joke. This is not serious. It's not diplomacy.
I think, you know, if he'd like to stay in North Korea and play one- on-one with that dictator, I think it's fine with a lot of us.
CHO: You know, one top --
GRANDERSON: I will say --
CHO: Yes, go ahead.
GRANDERSON: I was going to say, I will say, we kind of deserve this, though. I mean, two years ago, Donald Trump, who is pretty much a comedian as well, was the leading candidate at one point for Republicans to be president. So perhaps this is just what happens when you head down this really rocky road.
CHO: For two people who didn't want to talk about this, boy, you sure had a lot to say. I have to tell you. It does prompt a lot of discussion. I mean, the picture alone of the two of them watching a basketball game was pretty remarkable.
All right. L.Z. and Ana, thanks so much. Always great to se you. Hope to see you soon.
NAVARRO: Thank you.
CHO: All right.
GRANDERSON: Thank you.
CHO: Coming up, the anniversary of one of the most important events in the civil rights movement. Vice President Biden helps remember Bloody Sunday. That is just ahead.
(BEGIN VIDEO CLIP)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: A neuroscientist on the fast track to the future.
UNIDENTIFIED MALE: This lab, we can animals learning to communicate with other animals just by sending brain signals. That's why you call it brain to brain interface. The people that have speech impairment because of strokes or tumors or lesions on the brain and this is a prototype of what could be a new way for these patients to communicate.
GUPTA: Miguel Nicolelis on "THE NEXT LIST". This Sunday, 2:30 Eastern.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
CHO: A cab ride that started with so much promise, ends with so much sadness. A young expectant couple, both just 21 years old, died late last night when their cab was broadsided. It happened in Brooklyn, New York. They were on their way to the hospital. Their baby boy was born by C section and survived. He's in serious condition right now.
Police are now looking for the driver and a passenger who fled the scene on foot after their BMW hit the cab.
Six members of the same Wisconsin family died in a fiery crash on a Kentucky interstate. A tractor-trailer rear-ended their SUV. It happened on Interstate 65. That's near Elizabethtown, caused it to burst into flames. Two other family members were injured.
Just minutes later, a crash happened at that very same spot, but in the other direction. Injuring three people, one critically.
CHO: A second-grader suspended after he shapes his pastry into a gun. Seven-year-old Josh Welch then held the food while saying, "bang bang". That's according to our Baltimore affiliate WBFF. Josh denies he did that, but his teacher definitely took notice of the problem pastry.
(BEGIN VIDEO CLIP)
JOSH WELCH, 7-YEAR-OLD: She was pretty mad. And I was in big trouble.
(END VIDEO CLIP)
CHO: Administrators kicked josh out of class for two days and sent a letter home to parents. His dad thinks the school is, well, overreacting.
(BEGIN VIDEO CLIP)
B.J. WELCH, FATHER: I almost call it insanity. With all the potential, you know, issues that could be dealt with in school, you know, real threats, you know, bullies. I mean, whatever the issue is. I mean, it's a pastry. You know?
(END VIDEO CLIP)
CHO: Sounds about right to me. School officials told WBFF they would not comment on the case for privacy reasons.
Well, it's been nearly a half century since "Bloody Sunday" marked a pivotal moment in the civil rights moment. On that day state troopers beat marchers as they crossed a bridge in Selma, Alabama. It was a turning point. Americans were horrified. And that march convinced Congress to pass the Voting Rights Act.
Victor Blackwell was there as hundreds recreated that bridge crossing.
Victor, good evening to you.
(BEGIN VIDEOTAPE)
VICTOR BLACKWELL, CNN CORRESPONDENT: Alina, thousands of people crossed the Edmund Pettus Bridge today. And at the front, in the center, Vice President Joe Biden, the first sitting vice president to cross this bridge in a reenactment. He was locked arms on one side with Representative John Lewis, who was beaten with a billy club here in 1965, when he tried to cross the bridge for the first time.
On the other side, Congresswoman Terri Sewell, the first black woman elected to Congress from the state of Alabama.
And he spoke before crossing the bridge about the challenge before the Supreme Court right now, to the Voting Rights Act. And here's what he said about his optimism that it will be upheld.
(BEGIN VIDEO CLIP)
JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: Still have a lot of work to do, but I think it's going to be easier, a lot easier than it was 48 years ago for one overwhelming reason. Because what you all did here 48 years ago changed the hearts and the minds of the vast majority of the American people. That's why I'm absolutely convinced we will prevail in this new fight with regard to voter access and voter rights.
(END VIDEO CLIP)
BLACKWELL: That was about the last two or three minutes of remarks that lasted for about 20 minutes. Most of the time, he talked about the people who he said literally inspired a nation, when they tried to cross this bridge peacefully to get attention for voting rights protections in 1965.
(voice-over): It was supposed to be a nonviolent march for voting rights. But it became one of the most violent days of the civil rights movement. March 7th, 1965, Alabama, 600 demonstrators set off to march 54 miles from Selma, to Montgomery, to bring attention to the need for voting rights protections in the South. They were led by civil rights activist Hosea Williams and now congressman, John Lewis. REP. JOHN LEWIS (D), GEORGIA: As we crossed the Edmund Pettus Bridge, we were met by state troopers who shot us with tear gas, beat us with night sticks, and trampled us with horses. I was hit on the head and suffered a concussion on the bridge.
BLACKWELL: Lewis and 16 others were taken to hospitals, and the day was known thereafter as bloody Sunday. Since then, Selma has hosted a bridge crossing jubilee on the first Sunday in March. Year after year, thousands return to cross the Edmund Pettus Bridge. Civil rights activists and leaders and members of Congress have reenacted the march.
In the final months of his administration, President Clinton crossed the bridge in 2000. He returned in 2007 with then-Senator Hillary Clinton, alongside Senator Barack Obama at the start of the 2008 presidential campaign. More than a photo opportunity for politicians, activists marched to honor the original "Bloody Sunday" demonstrators and to show that the struggle for voter protections continues.
(on camera): And I spoke with Debo Adegbile, he is the special counsel to the NAACP Legal Defense Fund. And he says that he's confident when the majority opinion comes in from the Supreme Court, that it will be to uphold intact the Voting Rights Act of 1965, and keep that authorization that was passed in 2006 through 2031 -- Alina.
(END VIDEOTAPE)
CHO: All right. Victor Blackwell for us in Selma, Alabama. Victor, thank you very much.
A new day for the Catholic Church, with division in the ranks. The next pope faces a daunting task. Even among nuns in the U.S. We'll have that next.
(COMMERCIAL BREAK)
CHO: Half past the hour now. Let's take a look at the top headlines including this.
Britain's Queen Elizabeth will probably spend the next two days in the hospital. Doctors admitted the Queen today with the stomach flu. Buckingham Palace said the 86-year-old queen is in good health and good spirits and that she's in the hospital as a precautionary measure.
Another high-tech space milestone today, way over our heads in earth's orbit. The SpaceX Dragon capsule hooked up to the International Space Station. The Dragon is an unmanned cargo ship built by a private company contracted to NASA. SpaceX engineers were nervous because of a tiny glitch that happened right after launch on Friday. But everything, thankfully, worked out just fine. The capsule took supplies and equipment to the space station crew.
A shocking apology from a Catholic cardinal mired in scandal. He's Scottish Cardinal Keith O'Brien. And he's been dogged by allegations of abusing four men studying to be priests back in the 1980. O'Brien initially contested the claims. Today he reversed course and apologized saying his sexual conduct had fallen below standards expected of a priest. He resigned last month from his post as archbishop of Scotland.
More than a billion Catholics worldwide are in limbo. For the first time in nearly eight years there was no Sunday papal blessing in Rome's St. Peter's Square. A nun in the square said today's move was very sad and that she feels a bit like an orphan. Cardinals will meet tomorrow to start setting up a special election known as the conclave to choose a new Pope.
Well, the Catholic Church is at a crossroads. Some Catholics want to boost the conservative vision that was favored by Benedict XVI. Other Catholics want the church to move beyond its male dominated hierarchy and embrace some more progressive agenda.
CNN's Susan Candiotti talked with two nuns about qualities they would like to see in the next Pope.
(BEGIN VIDEOTAPE)
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Sister Mary Ellen Lacy spends her days helping the poor at New York's Bedford-Stuyvesant neighborhood, providing legal aid and promoting healthcare. She's a lawyer and a lobbyist.
(On camera): What kind of reaction do you get when people find out you're a lobbyist?
SISTER MARY ELLEN LACY, DAUGHTERS OF CHARITY: Very surprised. And I think that you can't promote change, you can't ask for change unless you've walked with the person who's suffered that problem.
CANDIOTTI (voice-over): Like other Catholics, she has an eye on who will succeed Pope Benedict XVI.
(On camera): What characteristics would you like to see in the next Pope?
LACY: I hope that the next Pope reaches out to everybody. I hope that he sees his need to be a healer. And in healing comes understanding and open dialogue.
CANDIOTTI (voice-over): Because more than half of the cardinals selecting the next Pope were chosen by Pope Benedict XVI, Sister Mary Ellen doubts opposition to ordaining women will change.
In Washington, D.C., Sister Simone Campbell isn't shy about speaking out. She helped organize last year's Nuns on the Bus tour opposing federal spending cuts in a proposed budget by GOP Congressman Paul Ryan.
UNIDENTIFIED FEMALE: Thank you for coming.
CANDIOTTI: In her view, the church, unlike a cultural democracy, still struggles with expanding the roles of women. SISTER SIMONE CAMPBELL, EXECUTIVE DIRECT, NETWORK: We know women are equal, and we know that all should be at the table contributing their insights. But the culture of our church, not the faith of our church, but the culture of our church has not caught up to a democratic culture.
CANDIOTTI: She hopes the next Pope will drop an investigation of American nuns who the Vatican accuses of spending too much time fighting for social justice, not enough time opposing abortion and same-sex marriage.
CAMPBELL: We work to much for the poor, the needs of the poor. And which I take it as a badge of honor since that's our mission.
CANDIOTTI: For Sister May Ellen, the church's future is all about better communication.
LACY: I feel that we can only make a difference if we continue to maintain the dialogue.
(END VIDEOTAPE)
CANDIOTTI: The Archbishop of New York, Cardinal Timothy Dolan, is one of the 115 cardinals who will be choosing the next Pope. Some of the cardinals are already in Rome. Others are arriving tomorrow and Tuesday to decide when that conclave will begin -- Alina.
CHO: Susan Candiotti from New York. Susan, thank you very much.
Taking on credit card fees, one company has found a way to get around them and it could save you money. News you need to know, right after the break.
(COMMERCIAL BREAK)
CHO: A new survey shows about half of all Americans are still having a tough time saving money in this economy. That could bode well for a company in Iowa that is trying to make all transactions cash free, card free and nearly cost-free.
Tom Foreman explains in this week's "American Journey."
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): Far from the bustle of New York, Chicago, and other financial powerhouses, in Des Moines, Ben Milne is leading an economic revolution.
(On camera): You're basically trying to kill money, aren't you?
BEN MILNE, CEO AND CO-FOUNDER OF DWALLA: Well, we're trying to give people a better alternative to actual cash, yes.
(LAUGHTER)
FOREMAN (voice-over): And he explains it with a quick stop in a restaurant, his cell phone, and the app that connects him to his company called Dwalla.
(On camera): So I sit down here and order a cheese Panini, and the bill comes and what do I do?
MILNE: So basically I just select the location, type in how much I owe them and hit pay. They confirm that I paid and the transaction is over.
FOREMAN: That's it?
MILNE: That's it. No cards, no cash, no nothing. Just all based on the Internet.
FOREMAN (voice-over): The target is not just paper money, but more specifically credit cards that charge percentages on every dollar of every purchase. Tens of billions paid by merchants and consumers alike. Other companies are trying to undercut that system, which Milne has always found disturbing.
MILNE: We work very hard for our money, and when we exchange it with someone else who has worked very hard to receive that money, it shouldn't just get siphoned off to some third party.
FOREMAN: Dwalla's alternative, quick, electronic cash transfers on the cheap. There's no fee for any purchase under $10, and over $10, the fee is a flat 25 cents. That's all. The state of Iowa likes it so much, it signed up this year to let Dwalla handle tax payments.
MILNE: We also have consumers or kind of personal users in all 50 states. So people use Dwalla all over the U.S.
FOREMAN: And that could turn Dwalla into a big player one quarter at a time.
Tom Foreman, CNN, Des Moines.
(END VIDEOTAPE)
CHO: Cool stuff.
One of America's largest cities is facing a financial crisis. $14 billion in debt. No idea how to pay it back. We'll have that next.
(COMMERCIAL BREAK)
CHO: A fire that shut down Interstate-95 in Florida is now 75 percent contained. The Interstate has reopened and many people who evacuated from 300 homes near Daytona Beach are now being allowed to return home. High winds and dry conditions are fueling the remaining flames which have burned more than 1,000 acres so far.
Four straight weeks and the fourth straight drop in gas prices. AAA reports this weekend that prices at the pump fell again this week. Not by much, just .8 of a cent. But better than nothing. The average this weekend for regular unleaded is $3.75 a gallon. Another company says it was victim of computer hackers. Evernote Corporation is a digital note-taking service. It reset all user passwords after the hacking. The company also says passwords are encrypted, making it harder for hackers to crack the content. So far it says it has not found any evidence that information stored on Evernote was ever compromised.
America's famed Motor City, Detroit, is so broke, that the state of Michigan wants to take it over. Governor Rick Snyder made that announcement on Friday and now Detroit leaders have 10 days to decide if they're going to appeal.
CNN's Poppy Harlow has more on Detroit's decline and what's at stake if that city goes bankrupt.
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNN CORRESPONDENT (voice over): Just two years ago, "Forbes" called Detroit "The City of Hope". Today it tops the Forbes "List of Most Miserable cities in America."
TINESHA FLOWERS, DETROIT RESIDENT: When you call the police now, you wonder if they're coming.
HARLOW: It's a tale of two Detroit. A city on the hook for more than $14 billion in unfunded pensions and health care costs for retired government workers.
JACK MARTIN, DETROIT'S CHIEF FINANCIAL OFFICER: Most of us are facing legacy costs that we can't afford. They were cut in the good old days when you could -- you know, the tax revenues were up. We didn't have overseas competition. We could sell all the cars we could make. That day is gone.
HARLOW: And get this. The "Detroit News" found nearly half of Detroit homeowners didn't even pay their property taxes last year. There have been hundreds of millions in spending cuts and thousands of government layoffs in recent years. But it's not enough.
On Friday, Michigan's Republican governor, Rick Snyder, declared Detroit is in a financial emergency. In the coming days he is expected to announce a state takeover of the city in the former of an emergency manager with sweeping powers.
GOV. RICK SNYDER (R), MICHIGAN: It is time to say this is the time for us not to argue or to blame. But to come together as Detroit, Michigan, not Detroit versus Michigan. And bring all our resources to bear to say let's just solve the problem.
HARLOW: Detroit's mayor, Democrat David Bing, has long opposed such a move, saying this in 2011.
MAYOR DAVE BING (D), DETROIT: He could void all of their contracts. He or she could fire everybody quite frankly.
HARLOW: Joe Harris was Detroit's auditor for 10 years. (On camera): An emergency manager has the right to basically throw out or rewrite union contracts, we'd likely see government job cuts? Wouldn't real people feel this?
JOE HARRIS, FORMER DETROIT AUDITOR GENERAL: It simply doesn't affect the -- average person, it affects the government workers, it affects the politicians, but it does not --
HARLOW: Union workers?
HARRIS: Union workers.
HARLOW: Those are real people.
HARRIS: You're absolutely correct.
HARLOW: Real people like Tinesha Flowers, a mother of eight and a government worker. She fears losing her job if more cuts come, but knows something has to change.
FLOWERS: At what point do someone does something that's going to make a difference? It doesn't matter if it's the emergency manager or God.
HARLOW: The rescue could also come from the private sector.
JOSH LINKNER, CEO, DETROIT VENTURE PARTNERS: What will ultimately be looked back at I believe for decades will be the story of the greatest American turnaround story in our country's history.
HARLOW (on camera): You think so.
LINKNER: Absolutely.
HARLOW (voice-over): Josh Linkner's company has invested $15 million in tech start-ups here.
LINKNER: And people will think you're smart.
HARLOW: And he's part of a group that recently bought 15 entire buildings downtown.
LINKNER: We're sort of like the Rocky Balboa of cities. We're fighting -- we're the underdogs, fighting for life and glory.
HARLOW: So what are Detroit's other options? There is bankruptcy which would shed debt but also cost the city millions in legal fees and bring that dreaded stigma.
MARTIN: I don't even like mentioning the B word.
HARLOW: Or what about even a federal bailout like New York City got in the '70s? But that was then.
MARTIN: I think it's pretty radical. I think it's nonsensical.
KIMME REED, DETROIT RESIDENT: I believe that if anybody needed to be bailed out, it would be the city of Detroit.
HARLOW (on camera): But good luck getting a federal bailout through Congress in this political environment. As for a bankruptcy, if that happened, it would be the single largest municipal bankruptcy in U.S. history.
Poppy Harlow, CNN, Detroit.
(END VIDEOTAPE)
CHO: That was snowy Detroit.
Two wacky moments this week from the world of sports. First this, the world's number one ranked player pulls out of a tournament because of a toothache? Really? We will have that. Plus how a tattoo got one baseball player sidelined. We'll talk about that next.
(COMMERCIAL BREAK)
CHO: Well, is it cold where you are? Too cold for a dip perhaps? Well, wasn't too cold for 1,000 Chicagoans who showed up on the shore of Lake Michigan and took that polar bear plunge today. Look at them. Crazy. The sand was covered in a layer of that frigid slush but it only got worse once they hit the water. They found it hovering at the freezing mark, 32 degrees.
They don't seem to care.
The Iditarod dog sled race under way in Alaska. There they are. The thousand mile race started today. Sixty-six dog teams competing. The winner gets a new truck and $50,000.
Well, she set out to make NFL history but an injury forced her to drop out today. She's Lauren Silberman. And she was the first woman ever invited to an NFL-sponsored tryout. She had hoped to be the league's first female kicker, but she aggravated a quad injury apparently and had to quit after just two kickoffs. Silberman isn't giving up. She says she will try again.
The world's top golfer calls it quits in the middle of a round just weeks before the year's first major and a baseball player is sidelined because of a tattoo?
Let's talk about it with Jon Wertheim. He's a senior investigative reporter for "Sports Illustrated."
Jon, great to see you as always. There's the new issue proving never too early to talk college football, but we're not going to talk about that today, Jon. We're going to talk about some other things, including Rory McIlroy dropping out of this tournament. I mean, this is the Honda Classic. He was the defending champ. Just quits, walks off the course. Says at first he's not in a good place mentally. Then his management company comes out with a statement saying it was a wisdom tooth problem.
I mean, what do you make of this? JON WERTHEIM, SENIOR INVESTIGATIVE REPORTER, SPORTS ILLUSTRATED: The problem was he eating a sandwich earlier in the round which sort of undercut that explanation.
CHO: Come on, really?
WERTHEIM: But it was a strange, strange event. I mean, as you said, this is the number one golfer. This is really the face of golf post- Tiger. Has a new nine-figure deal with Nike. In the middle of the round, just wasn't hitting the ball well, the ball is going in the water and just sort of said enough is enough. So it was very strange to see and, you know, we remember this with John Daley who was a considerably more sort of colorful and tempestuous player earlier.
CHO: Right.
WERTHEIM: But with Rory McIlroy, very strange event on Friday.
CHO: Yes, it was surprising. I mean, as you say, you know, they're calling him the sort of the new Tiger. It was pretty shocking.
Meanwhile, this other story really got our attention. This Texas Ranger shortstop, Elvis Andrus scratched from a game because of sensitivity in his left arm caused by a tattoo? What's up with that?
WERTHEIM: It is an awesome tattoo. I mean, it's his late father. Look at that.
(CROSSTALK)
CHO: Well, I mean, when you look at it you can see why he had sensitivity in his left arm. I mean, my goodness, it covers his whole arm.
(LAUGHTER)
WERTHEIM: Nine hours under the needle. In fairness, it was a -- it was a February exhibition game, but you know we've seen injuries in baseball. We've seen players injured with Q-tips. We've seen -- we had a Guitar Hero injury recently. An NBA player once had to get pulled from the lineup because he had an infection when his tongue piercing got infected. But I've not seen a tattoo injury yet. And you -- as you say he missed a game because of that left shoulder injury, but again it's exhibition season. We can let him go.
CHO: All right. We have a little extra time. So I'm going to ask you about my favorite story of the week, which is this. Dennis Rodman showing up in North Korea to shoot an HBO doc. I mean, I have been to North Korea twice. I mean it would -- it's a journalists dream to meet Kim Jong-Un. Dennis Rodman, first American to meet Kim Jong-Un? I mean, come on.
(LAUGHTER)
WERTHEIM: I love someone at the Pentagon said it says an awful lot that Dennis Rodman now has more knowledge and more interaction with North Korean government than we do. But no, you know, he said he's 28 years old. He's not like his dad. And Dennis Rodman is a lot of things, but a diplomat and statesman we never thought of.
CHO: Well, it's interesting. One North Korean expert I spoke to today said, you know, it just show that Kim Jong-Un loves his basketball as much as he loves his nukes. So there you have it.
All right, Jon Wertheim with "Sports Illustrated," thanks so much. Great to see you.
WERTHEIM: Thanks. You too.
CHO: Maybe the breakthrough we've been waiting decades to hear. Researchers say they have actually cured a toddler of HIV. We will have that story coming up at the top of the hour.
(COMMERCIAL BREAK)
CHO: Friday before spending cuts went into effect, so Saturday, well, the folks at "SNL" just could not resist.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: And, of course, these cuts will affect our military, our civil servants, federal construction projects, even grants to Native Americans. And I'm the one who has to tell these folks, young men, there's no need to feel down. Young men, pick yourself off the ground. Young men, just because you're funning is down, there's no need to be unhappy.
(END VIDEO CLIP)
CHO: Got to love it.
Coming up in the next hour, how "SNL" spoofed our very own Wolf Blitzer.
Hi, everybody. So glad you're with us. I'm Alina Cho in for Don Lemon tonight. Let's get you up to speed on the hour's top stories including this.
The queen of England spending the night in a London hospital. Just a precaution, says Buckingham Palace. The 86-year-old queen is suffering from stomach flu symptoms and has canceled all her official engagements for the week. The palace expects her to stay in the hospital for a couple of days.
A shocking apology from a Catholic cardinal mired in scandal. Scottish Cardinal Keith O'Brien has been dogged by allegations of abusing four men studying to be priests back in the 1980s. O'Brien initially contested the claims. Today he reversed course and apologized saying his sexual conduct had fallen below standards expected of a priest. He resigned last month from his post as Archbishop of Scotland.
More than a billion Catholics worldwide are in limbo for the first time in nearly eight years. There was no Sunday papal blessing in Rome's St. Peter's Square. A nun in the square says today's mood was very sad and that she feels a bit like an orphan. Cardinals will meet tomorrow to start setting up a special election otherwise known as a conclave to choose the next Pope.
