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Democrats' Assertive Agenda; Israel Warning of Escalated Attacks; Night Full of Stars; Shot in the Back; The Economic Crisis; Navigating the Inauguration

Aired January 10, 2009 - 10:00   ET

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

BETTY NGUYEN, CNN ANCHOR: The president-elect and his new team pushing forward with a plan for the economy, but already there are plenty of red flags going up.
T.J. HOLMES, CNN ANCHOR: Also, a developing story this morning, a new round of airstrikes in Gaza. Happening right now in the U.K., a protest in support of the Palestinians in Gaza.

NGUYEN: A busy morning for you, folks.

Good morning from the CNN Center. This is CNN NEWSROOM. It is Saturday January 10th.

I'm Betty Nguyen.

HOLMES: And hello to you all. I'm T.J. Holmes.

10:00 here in Atlanta, 7:00 a.m. out in Denver, Colorado.

NGUYEN: And it's an end to an era. We will miss some of those special phrases from the commander in chief.

HOLMES: Yes. We're taking a look back at some of our and maybe your favorite Bushisms that are out there.

But first, we need to get you caught up on a lot that's going on around the world.

We'll start by talking about the economy.

Last year was in fact the worst year for workers in this country since 1945. Five hundred and twenty-four thousand jobs were lost in December. That's according to the latest government figures. The total for the year, nearly 2.6 million jobs gone.

Also we got numbers on Friday, those latest on the 524,000 jobs lost. But also on the same day, we saw the Dow fall 143 points. It lost 1.6 percent of its value, lost about 5 percent of its value for the week. That's the worst week we have seen in the Dow since November.

Also, in these tough economic times, tough economic news. People were at least looking at the falling gas prices as welcome relief, but that appears that it's about to change as well.

Yesterday, AAA reported the national average for a gallon had gone up two cents from Thursday, prices up another penny today. Now, a penny here or there might not sound so bad, but we've got a trend going, because now we have seen 11 consecutive days of increases in gas prices.

NGUYEN: Well, Barack Obama's economic team is now increasing its goal of creating new jobs. The president-elect's aides say his stimulus package could create 3.5 million jobs. That is up a half-million positions from a previous prediction. But the advisers note the plan is subject to "significant margins of error."

In his radio address today, the president-elect says many of those new jobs have a green tint.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D-IL), PRESIDENT-ELECT: We'll create nearly half a million jobs by investing in clean energy, by committing to double the production of alternative energy in the next three years, and by modernizing more than 75 percent of federal buildings and improving the energy efficiency of two million American homes.

(END VIDEO CLIP)

NGUYEN: The president-elect's stimulus plan won't get a free pass from his party.

CNN's Dana Bash looks at the Democrats' assertive agenda.

(BEGIN VIDEOTAPE)

REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: The bill is passed.

UNIDENTIFIED FEMALE: The bill is passed.

DANA BASH, CNN SR. CONGRESSIONAL CORRESPONDENT (voice-over): Overwhelming House approval of two bills giving women more legal rights to force employers to pay them as much as men.

PELOSI: And in this very first week of this new Congress, the change that we want to make is in the lives of America's families. This legislation hits home.

BASH: Behold, congressional Democrats elated about total control of Washington, flexing their new muscle. Moving to pass long-stalled priorities like equal pay for women, now that they have won new Senate votes to pass it and a president who promised to sign it.

OBAMA: If a woman is out there trying to raise a family, trying to support her family, and is being treated unfairly, then the court has to stand up if nobody else will.

BASH: Republicans are slamming Democrats for misplaced priorities.

REP. BUCK MCKEON (R), EDUCATION AND LABOR COMMITTEE: And what signal does it send to the nation and the world that the first substantive order of business of the 111th Congress is not job creation or tax relief or economic stimulus, but rather a trial lawyer boondoggle?

BASH: Congressional Democrats plan to act fast on many agenda items blocked by President Bush, like on SCHIP, money for children's health insurance. But they are also laying down an early marker with the incoming Democratic president: don't expect a rubberstamp.

SEN. BARBARA BOXER (D), CALIFORNIA: This particular moment is not about personalities, it's not about party. It's about country.

BASH: In fact, on the big issue, economic stimulus, Obama aides met behind closed doors for the second day in a row with Democrats who criticized his tax plans.

CNN is told congressional Democrats are increasingly warning Obama's team they want a stimulus with more spending on infrastructure, less tax cuts.

REP. RON KIND (D), WAYS AND MEANS COMMITTEE: And I don't think anyone really expects that this stuff is going to come down from some mountain written on tablets and given to the Congress.

BASH (on camera): Democratic lawmakers all say there is little question there will be a bill to stimulate the economy relatively soon, but they are demanding a big say in what's in it. And in a sign the Obama team increasingly understands that, they are coming back to Capitol Hill to discuss the issue with all Senate Democrats this weekend in a rare Sunday meeting.

Dana Bash, CNN, Capitol Hill.

(END VIDEOTAPE)

NGUYEN: And we are going to have much more on the Obama stimulus plan. And coming up in 10 minutes, we'll talk with a business professor about what could happen if the government does not take action.

HOLMES: We have seen smoke once again rising over Gaza this morning, similar to the scenes we have been seeing over the past couple of weeks. It's the result of more Israeli airstrikes and tank fire. Now Israel is warning civilians in Gaza that they may be ready to escalate attacks.

CNN's Karl Penhaul joins us now from Rafah, Egypt. That's just across the border there from Gaza.

Karl, you have seen a lot of activity this morning. Tell us what you have been seeing.

KARL PENHAUL, CNN INTERNATIONAL CORRESPONDENT: Well, in fact, in this part of southern Gaza, in which we have an overlook -- that's Gaza just over there, in fact, just about 500 yards from where we are -- we have seen the activity ramp up there over about the last 45 minutes. We have seen pairs of F-16 fighter jets flying overhead, surfing around, and then dumping bombs on an area probably no more than a mile from where we are now. That's sending plumes of smoke into the air. Now, prior to that bombing, shortly before, Israeli jets were dumping these kinds of leaflets on Rafah, on the Gaza side. Some of them, in fact, floated across on to the Egyptian side. And according to our translator, what they say is that they -- it says, "Urgent notice," and then it says the Israeli Defense Forces are strong, Hamas is weak, but be warned, the Israeli Defense Forces are even stronger.

The notice goes on and warns the residents across in Gaza that Israel has not used all its firepower so far. It says more is coming. It says tougher measures are coming.

And then in the last lines, T.J., it says to the residents of Gaza, Rafah, "Get out of your homes on the edge of town and go down to the center of town," because, of course, these residents have nowhere else to run. They can't flood across the border into Egypt because that border is closed.

They are, in a sense, trapped. They have nowhere to run to. And now, as night falls, the Israelis say that they are going to attack even harder this part of southern Gaza. Those people can only watch and wait in their homes or out in the street -- T.J.

HOLMES: And Karl, quickly, if you can, ,you talked about just there at the end that they may pound more so this area of southern Gaza. What do we know? What have we seen in the past couple of weeks since these airstrikes have been going on? Is this an area that has gotten much bombing?

PENHAUL: Certainly this part of Rafah has been hit on multiple occasions, and we're told that the Israelis there are primarily looking to shut down some of those smuggling tunnels. Those smuggling tunnels are used, yes, to take food and fuel across to the civilians, but the Israelis also believe that those tunnels are being used to smuggle in weapons and ammunition for Hamas.

And in the Egyptian/French cease-fire proposal, one demand that the Israelis are making that there's some verifiable way to make sure that Hamas cannot rearm using these tunnels. So it looks like what the Israelis might be trying to do is target those tunnels and shut down those tunnels by force, regardless of any cease-fire proposal -- T.J.

HOLMES: All right.

Our Karl Penhaul there on the border with Gaza there and Rafah, Egypt.

Karl, we appreciate you this morning.

We want to turn now to what we have been seeing around the country, really, demonstrations, pro-Palestinian demonstrations. This one we're looking at, this happened in London.

They marched there today. You can see -- we're told about -- they were hoping at least to get about 100,000 people in this march, but certainly you can tell it's a substantial crowd. Not sure about the numbers just yet.

Last week, also a similar march ending in a rally, the square there. There were a few arrests.

This march going on in London's Hyde Park, the one we're looking at here. This is at the Israeli Embassy. Israeli embassies around the world, really, a couple, at least, people have been marching in support of what's happening in Gaza, in support or Palestinians.

NGUYEN: Want to get the latest now from the situation in Gaza.

Osama Hamdan, he is a Hamas spokesperson joining us in Lebanon.

Let me ask you, sir -- we have been watching today as smoke has billowed from the skies over Gaza. This, in particular, during the time in which there was supposed to be a three-hour stoppage when it comes to the fighting there to allow people to get aid.

What is going on in Gaza?

OSAMA HAMDAN, HAMAS SPOKESMAN: What is going on, that the Israelis are still bombing Gaza, regardless to the international resolution which was taken, the number 1860 (ph).

What had happened, that there was an Israeli attack before the three hours with supposed injuries. And those blackouts (ph). And I think it was a kind of sending the Palestinians a message there will be no stop full (ph) of fight. (INAUDIBLE) and you have to continue the fight again.

NGUYEN: I understand as well that Israel is disseminating leaflets that says that it will increase and escalate the attacks in Gaza.

Let me ask you, as both sides continue to fight, can the people of Gaza endure any increase in the fighting?

HAMDAN: Well, I have to say that not both sides are continuing the fight. The Israelis are continuing the attack, while we are continuing the resistance.

(CROSSTALK)

NGUYEN: But rockets are still being sent over into Israel, so both sides are engaged.

HAMDAN: Well, those rockets are reaction for the Israeli bombing by missiles with F-16s. The Israelis are using F-16 missiles, while the Palestinians are reacting towards this.

I believe the one who was passing (ph) the orders is Israel, and the one who is putting the Palestinian people under the fear are the Israelis. They don't have to expect that the Palestinians will surrender and will say, well, please cut our necks or throats. They have to understand the people who resist, regardless to their power. It's not a measure of power, it's the idea of an occupation.

NGUYEN: But the Palestinian people, many of them are caught in the middle of this, and many of them are in need, desperately in need of aid. What is it going to take to stop this fighting? HAMDAN: Well, I believe all the Palestinians in Gaza need the aid. We are talking about aid to persons and Palestinians in Gaza.

They have been (INAUDIBLE). The one who's cutting that, who's closing the crossings, is the Israeli side.

I believe this can be ended by stopping the fight, by stopping the war against the Palestinians and Gaza. This is the only solution. And I think this is the simplest solution for that.

NGUYEN: But what will Hamas do...

HAMDAN: The Palestinians are not fighting just because they wanted to fight. The Palestinians...

NGUYEN: Sir, let me ask you, what will Hamas do to help stop the fighting? Something has to be done on both sides. What will Hamas do? What is it willing to do in order to stop the fighting?

HAMDAN: Well, I think we are ready to act positively if the Israeli fight stops. But unfortunately, the Israelis, when they hear such words, they use it against the Palestinians. They imagine that it's a sign of weakness from the Palestinians. They have to understand the Palestinians are trying to be positive while they are trying to be more aggressive against them.

NGUYEN: All right.

Osama Hamdan, a Hamas spokesperson, joining us by phone in Lebanon with the latest on the situation in Gaza.

HOLMES: All right. We're going to hear from the Israeli side as well as we continue to look at some of these pictures here.

We have an IDF spokesperson that we're lining up, but it's also about exactly what they are doing today. As we heard, as we know, the attacks continued there, the Israeli airstrikes continued even during that three-hour lull that folks there in Gaza were supposed to have to get out, to, in some cases, bury their dead, to pick up supplies and to get what they needed. But still, airstrikes continued during that three-hour lull.

We do, again, have an IDF -- an Israeli spokesperson coming up to tell us about just exactly what their objective is today, and also warning the people there in Gaza that the attacks are going to be increased and intensify. Stay with us for the Israeli reaction.

(COMMERCIAL BREAK)

HOLMES: All right. Continuing to watch a live picture right now in Gaza. We're seeing more smoke, more Israeli airstrikes today.

We just heard from a Hamas spokesperson talking about what it could take, what it might take for a stop to this fighting, a cease-fire, but it doesn't look like there's going to be any easy answers from either side. We'll try to get some answers now from the Israeli side. Avital Leibovich joining us now, an IDF spokesperson.

Ma'am, thank you for being with us.

Tell us -- you've been dropping leaflets today warning people in certain parts of southern Gaza that there could be an escalation of this bombing. Why an escalation, and what are you going after now?

MAJOR AVITAL LEIBOVICH, ISRAELI DEFENSE FORCES SPOKESWOMAN: Well, it's not really an escalation. We take few precautions in order to ensure the safety of civilians.

Since Hamas is endangering civilians in many ways. For example, booby-trapping neighborhoods, locating the storage of weapon areas in the middle of the most dense areas. We put those leaflets out in order to warn civilians from staying in the same areas where the Hamas militants act and practice their terror activities.

HOLMES: And you're telling me, ma'am, those leaflets that were dropped today did not warn people that there could be an increase in attacks today?

LEIBOVICH: No, the leaflets say that those people should be aware to go to those places where military terrorist activity is taking place, and also that the operation will continue all over the Gaza Strip.

HOLMES: Ma'am, what is the objective now? What is victory, I guess, if you will, for Israel? And how close are you to achieving your objective? We have been watching this now for two weeks.

LEIBOVICH: Well, you have been watching it for two weeks, but the people of Israel have been under attack for eight years. Therefore, the objective is to try and get a secure and stable, safe situation for the Israelis by actually trying to cripple Hamas' launching capabilities and also decreasing Hamas' motivation to continue with these threats.

HOLMES: Well, how will you ever determine whether or not you have decreased somebody's motivation? Maybe you can determine whether or not there aren't so many rockets coming into Israel, but how do you measure motivation? When do you know when to stop launching airstrikes and that you have reached that objective? I mean, how do you measure that?

LEIBOVICH: Well, it's really simple. Since we know, according to our intelligence, what has Hamas been up to -- for example, planning suicide attacks inside Israel, planning to kidnap more soldiers, planning to build more tunnels for smuggling weaponry -- so we are aware for Hamas' motivation and how high it is to execute additional terror activities.

HOLMES: But again, ma'am, how do you know when you've crushed somebody's motivation. And how long do you anticipate now -- we heard from Israeli officials when this first started that this was going to go on for a while. How long is that? LEIBOVICH: Well, Hamas had two full years to put a lot of time, money and effort in rearming itself. Hamas has built hundreds of tunnels for smuggling weapons. We're talking about a smuggling factory that has been existing for two years.

We're talking about numerous bunkers. We're talking about tunnels that are underground from one house to another house of Hamas militants in order to flee Hamas terrorists. We are talking about mosques filled with ground (ph) rockets and many, many other terror infrastructure.

So, Hamas has had two full years to do so. We're only after two weeks. We still have a lot of time because Hamas has provided us many, many targets.

HOLMES: And ma'am, it sounds like this could go on indefinitely, or, again, until you all feel comfortable. Tell me about the policy, if you will, of Israel in knowing that -- and again, it's still hard for us to confirm the number of civilians who have been killed, but you all have said, Israel has said that Hamas, it's their fault for using people as human shields.

What, I guess, is the stance of Israel? If you know that there are human shields, do you warn people and hope they get out of the way and heed those warnings? And do you make any effort to prevent those civilian casualties?

LEIBOVICH: Of course we make every effort to try and prevent targeting civilian people. We do it by phoning up a house in which a terrorist lives, endangering the whole building, and ask them to evacuate.

We also put leaflets from time to time. Hundreds of thousands of them were already spread all over the Gaza Strip asking for civilians to stay away from these areas.

Now, the military targets we have chosen are only Hamas-affiliated terrorist targets. We don't shoot civilian targets like Hamas, which is targeting only Israeli places.

Now, look, we did not want to be in this situation, we did not choose it. We did not choose to be bombarded for eight years.

Enough is enough. We cannot go on like this anymore. No country in the world would agree that one million of its civilians were seeking shelters. This is not normal.

HOLMES: But ma'am, you say you're not targeting -- only military sites of Hamas, but so many civilians, we understand, have been killed. But do you go ahead and shoot? You say a phone call or a leaflet. Do you think that's enough warning to still go ahead and shoot if you know there's a possibility that civilians could still be there in the way of those airstrikes?

LEIBOVICH: Many, many times, I can tell you, that our pilots have u- turned and did not target the goal because they saw civilians in the area. Many, many times, as well as the infantry forces.

We don't have any intention to target those civilians. However, Hamas is endangering their lives.

This has to be understood. Hamas is doing its utmost activity from the most dense areas. Hamas could have picked very isolated areas to put its warehouses; however, it chose mosques, mosques at the center of the villages.

HOLMES: All right.

Avital Leibovich, again, spokesperson for the IDF, Israeli Defense Forces.

Ma'am, thank you so much for your time and for the update.

And again, we will continue to follow the situation there in Gaza, as we have seen this morning the bombings there. The airstrikes do continue, as you just heard from the Israeli side. The rockets continue to be launched into Israel as well.

A developing situation. We're on top of it. Stay with CNN.

(COMMERCIAL BREAK)

HOLMES: All right. Well, with the Golden Globes last year, it was just kind of bland.

NGUYEN: Lackluster, yes.

HOLMES: Yes. Not much to it last year because of a writers strike.

Well, the glitz, the glamour and the great storytelling making a comeback at the Golden Globes tomorrow.

NGUYEN: Oh yes. And among them, many films nominated, an episode in American history.

CNN's Brooke Anderson has the story.

(BEGIN VIDEOTAPE)

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT (voice-over): It was a confrontation powerful enough to be dramatized on stage and now on screen.

FRANK LANGELLA, ACTOR, "FROST/NIXON": I'm saying that when the president does it, that means it's not illegal.

ANDERSON: "Frost/Nixon," the film version of David Frost's 1977 interviews with President Richard Nixon, nabbed five Golden Globe nominations. And the Hollywood spotlight has many remembering the history behind the movie. It was the first time Nixon publicly answered questions about Watergate and his resignation.

UNIDENTIFIED MALE: No, no, no, no. DAVID FROST, JOURNALIST: There were two reasons I was so desperate to get this interview, which was -- one was, obviously, constitutionally, he was the first ever American president who has ousted. But the second thing was that he was the most fascinating man.

ANDERSON: David Frost was a British talk show host who was willing to pay the disgraced president $600,000 for access. And the drama behind the scenes, where an interviewer is trying to make his mark, and a disgraced president is trying to find some redemption, made this story ripe for a big-screen take, says the man who wrote the play and the film.

PETER MORGAN, GOLDEN GLOBE NOMINEE: It's very much like a boxing match. When I first went to see Sir David, I did tell him that, you know, that the structure of the play that I had in mind would be like a gladiatorial fistfight, like a rocket.

ANDERSON: David Frost spent nearly 30 hours conducting the interview. There were risks for Frost, who not only financed the production himself, but cobbled together independent TV stations for the nationwide broadcast the networks wanted no part of. Forty-five million people watched in the U.S. alone.

FROST: If one had completely failed to get anything out of Nixon, or any admissions out of Nixon, and so on, it would have been pretty disastrous.

Would you go further than mistakes, the word that seems not enough for people to understand?

RICHARD NIXON, FMR. PRESIDENT OF THE UNITED STATES: What word would you express?

FROST: And that was sort of a heart-stopping moment because I knew he was at his most vulnerable.

NIXON: I let the American people down.

ANDERSON: Frost, who continued to interview world leaders and still hosts a talk show on Al-Jazeera, feels his interview with Nixon was one of a kind.

Brooke Anderson, CNN, Hollywood.

(END VIDEOTAPE)

NGUYEN: Well, Barack Obama's plans for bringing us out of a recession will cost billions.

HOLMES: Yes, but hopefully it will work if it's costing all that. Will we be done a recession? We'll ask an international business professor. He's right here.

(COMMERCIAL BREAK)

HOLMES: All right. We'll tell you what we are following for you this morning.

The number of jobs lost in 2008 is the worst we have seen since 1945 -- 2.6 million people lost jobs. The unemployment rate 7.2 percent. That's the highest we have seen since January of 1993.

NGUYEN: And gas prices, they are up another penny for the 11th consecutive day. AAA reports the national average is now $1.80.

Now, in his weekly radio address this morning, the president-elect said his plan to revive the economy would include moving toward cleaner energy.

(BEGIN VIDEO CLIP)

OBAMA: We'll create nearly half a million jobs by investing in clean energy, by committing to double the production of alternative energy in the next three years, and by modernizing more than 75 percent of federal buildings, and improving the energy efficiency of two million American homes.

(END VIDEO CLIP)

NGUYEN: The president-elect says his stimulus plan will create three to four million jobs.

HOLMES: Well, the FBI now involved in the killing of a man who was shot in the back a dozen times. The FBI involved here now because those bullets came from the guns of police officers.

NGUYEN: Yes. As CNN Sean Callebs reports, the incident happened just after Adolph Grimes had come home to New Orleans.

(BEGIN VIDEOTAPE)

SEAN CALLEBS, CNN CORRESPONDENT (voice-over): As fireworks exploded near the French Quarter on New Year's Eve, 22-year-old Adolph Grimes, or Chris, as he is known to his family, just pulled up to his grandmother's New Orleans home after a five-hour drive from Houston.

ADOLPH GRIMES JR., VICTIM'S FATHER: He made it at 12:00, exactly, with seconds to spare.

CALLEBS: A scant three hours later, he lay dying on the sidewalk, a half a block from his grandmother's front door. Fireworks giving way to the hue of flashing police lights. The Orleans Parish coroner says Grimes was shot 14 times, including 12 times in the back.

PATRICIA GRIMES, VICTIM'S MOTHER: The violence has to stop. My child's death will not be meaningless.

CALLEBS: And Grimes didn't die at the hand of common street thugs. He was shot and killed by New Orleans police officers. The family wants to know why, why cops descended on a young man with no police record who works for a phone company and teaches bible study in Houston.

(on camera): Have the police told you anything?

P. GRIMES: No. I know just as much as you know.

CALLEBS (voice-over): The police department won't release the names of the officers involved or the shooting report, saying the investigation is ongoing. But police Superintendent Warren Riley says Grimes shot at police first, when plain-clothed officers surrounded Grimes' car. Riley says officers are trained to fire when fired upon, and fire more than one shot.

The FBI is now investigating, following a request for the Grimes family.

WARREN RILEY, NEW ORLEANS POLICE SUPERINTENDENT: We think that families should do everything they can to make sure that this investigation is as thorough and complete as possible so that they know the truth.

CALLEBS: Grimes had a gun and a legal permit to carry the weapon. Authorities also say they found a shotgun in the car's trunk. The family says that's not true, and so far, police have not produced the weapon.

The 22-year-old, according to family members, had just walked out the front door and was in a car waiting for his cousin when the shooting started. Grimes' relatives don't believe for a minute that he opened fire first.

ROBERT JENKINS, GRIMES' FAMILY ATTORNEY: Left right here.

CALLEBS: And the family attorney shows the investigation will show rogue cops and sloppy police work.

JENKINS: We know the FBI is going to do a full and complete investigation, and we're hoping that criminal charge will be brought against all of these officers for the execution in this case.

CALLEBS: It doesn't make sense, the family says over and over. A young man who has never been arrested or in trouble with the law, a loving father with a good job. The grieving mother and father say they won't be silenced and say they are not worried about a code of silence among officers, the so-called blue wall.

(END VIDEOTAPE)

HOLMES: Again, our Sean Callebs there reporting.

The nine police officers involved in that incident have been assigned to desk duty while that case is under investigation.

NGUYEN: Anger continues to grow in Texas over the police shooting of an unarmed son of a baseball player in his own driveway. Robbie Tolan, son of former baseball player Bobby Tolan, was shot in the chest. The family says the boy has a bullet still lodged in his liver. Police say officers thought the 23-year-old and his cousin had stolen the SUV that they were driving. The officer is on administrative leave.

Well, five young men are spending the weekend in the hospital after bullets began flying outside a high school in Chicago's south side. Police say the shots were fired after people left a basketball game. Police say the shooting appears to be gang related and that security cameras at the scene are providing some good leads.

Take you to Los Angeles now, where the police are asking the public for help to find an abducted child. Take a good look here.

They say Eduardo Rivera (ph) was on his way to school yesterday in Riverside, Los Angeles, when two unidentified men grabbed the 7-year- old and forced him into a nearby car.

(WEATHER REPORT)

NGUYEN: New developments involving the natural gas dispute between Russia and Ukraine. Both countries have decided on a monitoring agreement for gas to flow from Russia through Ukraine, into Europe. The European Union will now begin monitoring the flow of gas. Two energy companies representing the two countries were locked in a disagreement over unpaid bills and the price of a new contract.

Well, Zimbabwe's central bank coming out with a new note on Monday. Hold on to your hats, folks. Listen to this.

It is a $50 billion note. Yes, $50 billion, with a "B." The African nation has one of the highest inflation rates in the world, perhaps the universe.

What can you get for a $50 billion note? About two loaves of bread. Compare that to what it costs us. As of yesterday, one U.S. dollar was trading at $25 billion Zimbabwe dollars.

Let's talk about inauguration protection. We are going to speak with the head of a security group working with Secret Service.

(COMMERCIAL BREAK)

HOLMES: Well, under the microscope, the nation's lousy economy. President-elect Barack Obama gave a grim assessment of the economy this week and dire warnings of what this could mean for everybody.

(BEGIN VIDEO CLIP)

OBAMA: Now, I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible. If nothing is done, this recession could linger for years, the unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four.

We could lose a generation of potential and promise as more young Americans are forced to forego dreams of college or the chance to train for the jobs of the future. And our nation could lose the competitive edge that has served as a foundation for our strength and our standing in the world. In short, a bad situation could become dramatically worse.

(END VIDEO CLIP)

HOLMES: All right. That's some pretty scary sounding stuff.

Jeff Rosensweig, a familiar face to us around here, associate professor of International Business and Finance at Emory University's School of Business.

What about that? Let's take the one point, a recession that could go on for years. Is that possible?

JEFF ROSENSWEIG, EMORY UNIVERSITY SCHOOL OF BUSINESS: It is possible. In fact, it's going to already be the longest recession since the Great Depression...

HOLMES: The Great Depression.

ROSENSWEIG: ... as long as we go into the summer, and it's going to go on at least until the fall.

Let me tell you one thing I'm worried about though, which is when you see the president-elect, he is, I think for good reason, to try to get people focused on this in Congress, to try to move things along, he's beginning to raise people's fears of what could happen, how bad things are. And if you go back to FDR and, "We have nothing to fear but fear itself," we don't really want to spread anymore negativity and gloom and doom than we need to.

HOLMES: But a lot say that he's doing that for political reasons.

ROSENSWEIG: Yes.

HOLMES: I know you look at it from a business side. And from a business perspective, right now people are scared to spend money. You don't want them even more scared?

ROSENSWEIG: That's right. No.

I think what he represents, which is what I think -- he's the right man at the right time -- is he does represent hope and a new freshness and a new beginning. And we could squander that capital if he's seen talking about this could be bad, double-digit unemployment. So that's my point.

You know, all of a sudden, the fight with Congress, it's not really a fight, but you're beginning to see Democrats and Republicans in the Senate saying Republicans want tax cuts, Democrats want spending. And now he has to fight with them. And meanwhile, what businessperson is going to create a job or invest, what individual is going to invest or go out and spend? HOLMES: But at the same time, is he giving it to us straight? Is he telling us the truth here, though? And maybe, you know, some would argue, that's what we need to hear.

ROSENSWEIG: Yes. I mean, in many ways, he's giving it to us straight. But on the other hand, let's just see if we can have everyone work together, work together quickly, but not so quickly that we do stupid things, we waste money. But the confidence is so important right now, and that's what's lacking.

HOLMES: All right. And he talked about -- we talked about the jobs report last year, 2.6 million jobs lost in this country, over 500,000 in the month of December alone. He talked about that as well.

Let's take a quick listen.

(BEGIN VIDEO CLIP)

OBAMA: Five hundred and twenty-four thousand jobs were lost in the December, across nearly all major American industries. That means that our economy lost jobs in all 12 months of 2008, and that nearly 2.6 million jobs lost last year amount to the single worst year of job loss since World War II.

The unemployment rate is now well over 7 percent. In addition, we have 3.4 million people who want full-time work but are only able to get part-time work. Clearly, the situation is dire, it is deteriorating, and it demands urgent and immediate action.

(END VIDEO CLIP)

HOLMES: All right. On the matter of jobs and job creation here, some argue this plan. You're taking the money, we're talking about $800 billion, just another astronomical figure. But where it might be going, towards tax cuts, towards stimulus checks for people. That's not stuff that's going to create jobs.

If somebody gets a check right in these times, they're going to put it in the bank, they're going to save it right now. Tax cuts can't really play the type of role -- we need to create jobs. What do you think? That's just one argument?

Do you believe the plan he has put in place right now is going to create more jobs? He's talking about three million to four million.

ROSENSWEIG: Yes. I think we do need to target the situation, which is jobs. And in many cases, direct job creation. Or incentives to businesses to create jobs directly, maybe reduce payroll taxes.

When we already, past spring, gave people a tax rebate, it's already been seen as a failure. People did put it in the bank. So why would we repeat a failure?

I think -- and that's where Republicans have to play along with Democrats. People will have to see jobs being created as soon as possible. And frankly, another situation I'm worried about is, we're talking about broadband and alternative energy, all these wonderful things, but we cannot lose focus. Focus has to be, let's get out there and build bridges and get shovels in the ground. Let's create jobs or give business the incentive to create jobs.

HOLMES: To create those jobs. And that will, in turn, help that confidence, and then confidence is really what you're saying is key.

ROSENSWEIG: That's right.

HOLMES: One more thing I want to get you out of here on.

Again, the deficits, what role do those play? I mean, to me and you, and to the average American, they hear deficit, they think about their own deficit.

ROSENSWEIG: Yes, definitely.

HOLMES: But role does that play in our recovery? Can we go into further debt for a little while, while we're trying to get back on track?

ROSENSWEIG: Yes. We have no choice, and we're going to get into a lot of debt.

It will be a problem. Young people like yourself and your anchor there...

HOLMES: Betty over here, yes. She just looks young.

ROSENSWEIG: ... you know, we have $10 trillion of debt now, we're going to have $18 trillion by 2013. The sad thing, as bad as that sounds, is we have no alternative.

But yes, you young people, or our kids, we'll be paying for that, for at least a generation. And the numbers we're throwing around, you know, $700 billion for the banks here, $800 billion there, they're so large, that now we don't comprehend them.

HOLMES: Yes.

ROSENSWEIG: But the sad thing is, I believe we have no choice, because if the economy collapses, no one's paying taxes anyway if they lost their job and the deficit expands either way.

HOLMES: All right.

Jeff Rosensweig, again, the Emory School of Business.

Sir, always good to have you. Always good to have you on the set and talk some business.

ROSENSWEIG: Good to see you.

HOLMES: Thanks for coming in this morning. ROSENSWEIG: Thank you.

NGUYEN: Well, top trends for 2009, what's hot in the new year, from gadgets to the latest fashion.

(COMMERCIAL BREAK)

HOLMES: Mama is moving in. Michelle Obama's mother will join the soon-to-be first family when they take up residence at the White House.

Transition officials say Marian Robinson will help the Obama daughters get used to their new surroundings and then decide in the coming months if she wants to stay in Washington permanently. Mrs. Robinson resigned from her job as a bank executive secretary to help care for her granddaughters during the campaign season.

NGUYEN: Well, you know, next weekend, millions of people are expected in Washington for the inauguration of President-elect Barack Obama.

Clayton Young of AlliedBarton Security Services joins me in Washington this morning to talk about all those people descending upon the city and what that's going to mean for security.

All right, because they're talking, you know, upwards of four million people. Give us a survival guide on how to maneuver through Washington during this time.

CLAYTON YOUNG, ALLIEDBARTON SECURITY SERVICES: First of all, try to travel as stealth-like as possible. I think it's going to be a problem if people were to bring large backpacks or any large bags. It would be best if you were to travel in a manner that would prevent possibly searches, to be suspicious in any way, shape or form.

For example, there will be certain things that will be allowed on the Mall that would not be allowed on the parade route. Obviously, that's closer to the president.

And so when you're coming to Washington, first of all, public transportation is your best bet, given the enormity of this event and four million people ascending on Washington, D.C. But AlliedBarton has met with the Secret Service and also with special operations with MPD. And we now know that those crowds are going to be enormous, and not only will security be a challenge, transportation will be a challenge, as well as crowd control.

NGUYEN: No doubt. And we understand that people cannot bring strollers. And that's going to be difficult for families, especially couples that have small children. But I also read that people need to make sure they have got identification on them.

Are they going to be searched? Are they going to be checked?

YOUNG: Indeed. There will be several areas of spot checks that will occur during the inauguration. We will have 13 magnetometers, AKA those metal detectors. And so you could be searched at any point. Again, proper I.D. will be required, government-issued I.D., work I.D. Someone asked the other day in terms of students, not having maybe government-issued I.D.

NGUYEN: Right.

YOUNG: But obviously if you're a student, your student I.D. will be important, your library card. And, you know, for those who might not yet have their driver's license, but may have maybe a voter registration card, that would also be important, because any time -- or I should say anyone could be checked at any time because this is such a massive undertaking and such an obvious security issue.

NGUYEN: Yes, it is a huge undertaking. And at this point, as we're just a little over a week away, have you heard of, are you anticipating any credible threats?

YOUNG: Well, and I should say this for the entire nation, and also to the world who might be coming to Washington, D.C. We have no evidence of a credible threat; however, we certainly have to be diligent.

This is a large crowd, certainly an opportunity for folks to do harm to a number of people. So, you know, we obviously prepared for the worst, but we prepare and expect the best. And it's what we do at AlliedBarton, also with the Secret Service and special operations.

We will have so many different organizations -- the FBI, the CIA, the ATF, the park police. Ninety-seven different police agencies are going to be assisting us in Washington, D.C., as well as over almost 12,000 members of the military, to include the National Guard, the Air National Guard. The Air Force will provide overhead surveillance.

And so, you know, I want people to know that we will do everything we can to make sure that they're safe. It's what we do, certainly. The job of the Secret Services to protect the president, but all the other agencies would obviously be there to protect the public as well.

NGUYEN: That's going to be quite a day.

Clayton Young with AlliedBarton Security Services.

Thanks for your time today. We appreciate it.

YOUNG: Thanks, Betty. We appreciate the opportunity.

NGUYEN: Sure -- T.J.

HOLMES: Well, Betty, sushi, that was so last year. This year, noodles are in. We have got the top trends in food and fashion as well.

(COMMERCIAL BREAK)

NGUYEN: All right. So it's time now to get up to speed on what is going to be in for 2009. HOLMES: And we turn to Los Angeles, a trendy place.

Jane Buckingham, president of the market research firm The Intelligence Group.

And your intelligence tells you that I don't need to be wearing a tie this coming year, I need to be wearing a bow tie. Is that correct?

JANE BUCKINGHAM, PRESIDENT, THE INTELLIGENCE GROUP: Yes, you do, I'm sorry to say.

HOLMES: Come on.

NGUYEN: Yes.

BUCKINGHAM: Well, you know, I think everyone's going to be dressing up a little bit more this year, especially when their jobs are on the line. It's not the year that you can go casual, so everyone's going to be a little more of a dandy. So I think you're going to see more formalwear. No more of the casual day.

NGUYEN: OK. But Jane, did anyone poll the men out there to see if they are willing to go with these new trends?

HOLMES: Yes.

BUCKINGHAM: Trends don't ask people what they want, they tell them, unfortunately.

HOLMES: Oh.

NGUYEN: So you're so 2008, T.J.

HOLMES: Tomorrow. I have a little time, Betty.

NGUYEN: All right.

You know, let's talk about food, because that can be trendy as well.

And T.J., you mentioned it a little bit earlier, out with the sushi and in with the?

BUCKINGHAM: In with the noodle bars...

NGUYEN: What is that?

BUCKINGHAM: ... which you're seeing -- they're popping up all over the place. It's sort of an extension of the ramen noodles. It's actually sort of great. You can have lots of different kinds of them. They have meat, they have chicken.

You're seeing them in lots of the big cities. They're very inexpensive and there are lots of varieties, so it's something lots of different people can enjoy.

NGUYEN: And then, of course, recycling, seems like it's always in, always trendy. But you say not so.

BUCKINGHAM: It's not enough. It's not that that's out. It's that now you have to do pre-cycling.

NGUYEN: What is that?

BUCKINGHAM: So that it's getting to -- before recycling happens. So it's all about carrying your tote bag, it's all about getting to the point where you're not actually generating waste. So you're not carrying a water bottle, you're carrying a sig (ph) bottle.

So it's not about wearing earrings, it's about getting to the point where you are not generating waste. You are recycling, you're not actually creating waste.

NGUYEN: I kind of like that trend. That's a good one.

BUCKINGHAM: Yes.

NGUYEN: All right. Jane, we do appreciate your time today. We'll try to be as trendy as we can in the new year.

Thank you.

BUCKINGHAM: Thank you.

HOLMES: Apparently one earring is in this year as well.

All right. Thank you, Jane.