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Google Cutting 200 Jobs; Obama to Meet with Banks CEOs; Dangerous Weather Assaulting the U.S. in Every Corner; President Obama Announces New Afghanistan War Plan

Aired March 27, 2009 - 09:00   ET

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


HEIDI COLLINS, CNN ANCHOR: President Obama will be unveiling his plan for Afghanistan. They include more U.S. troops to train the Afghan army and more U.S. civilians to help the Afghan people. The president's remarks live right here on CNN.

But first, severe weather happening right now. Historic flooding, tornado threat and a spring blizzard.

There's a whole lot to cover this Friday, March 27th. Hi, everybody. I'm Heidi Collins. You are in the CNN NEWSROOM.

We are looking at a potentially devastating day weather wise. The Red River keeps rising in Fargo, North Dakota. The crest now projected at a record 43 feet. One levee has already sprung a leak, in fact. The mayor of Fargo, North Dakota, vows his city will go down swinging.

Colorado's governor has declared a state of emergency after a blizzard there roared through. The heavy snow and gusty winds are now heading for Oklahoma and Kansas.

And in the Deep South, there's a threat of more tornadoes. Several slammed into Mississippi yesterday. Twenty-eight people were hurt in the small town of McGee.

We want to head straight over to Rob Marciano now because we need to get an update, first off, Rob. I know we've got a whole lot on the plate today of these severe storms.

ROB MARCIANO, AMS METEOROLOGIST: Yes, and the severe storms are rolling through the same area that got hit yesterday.

COLLINS: Yes.

MARCIANO: On top of that, it looks like we'll have another recharge in the atmosphere tonight. So very active and unusual weather pattern shaping up.

Let's get right to it.

(WEATHER REPORT)

MARCIANO: Quick check on what went through on Mississippi during the daytime yesterday. It was a rough -- well, actually it happened overnight. Now it's a dangerous part about this storm, over a hundred homes damaged.

Look at this. An F-3 with 150-mile-an-hour winds striking at 1:00 in the morning. 28 people injured. Some serious, but no fatalities. And that's certainly -- is an impressive figure right there.

All right, let's talk about rainfall that's moving across parts of the southeast and then snowfall, blizzard conditions from Denver all the way to Wichita that will continue today.

So blizzards and tornadoes and, of course, the flood situation that's happening across parts of North Dakota and Minnesota where Susan Roesgen is been covering that from Fargo. She joins us live.

Susan, how is the spirit of the folks up there right now?

SUSAN ROESGEN, CNN CORRESPONDENT: Hey, Rob. People are still doing this 24/7, still sandbagging here. You see them behind me. They've got the sand going from this huge dump truck up the conveyor belt and down to an automated sandbagging machine.

No one's going to quit. But there has been a crack in part of an earthen levee, not a sandbag levee but an earthen levee, in one neighborhood so they're trying to shore that up right now.

In that neighborhood and in a few other places, people are already trying to get out.

(BEGIN VIDEOTAPE)

ROESGEN (voice-over): Mandatory evacuations now in parts of North Dakota.

UNIDENTIFIED MALE: You guys evacuating?

ROESGEN: Even millions of sandbags may not be enough to hold back the rising Red River. Ambulances have been taking patients away from this Fargo hospital getting them to safer ground, but the hospital is not giving up.

UNIDENTIFIED MALE: We are not closing. We will continue to be here for the community. Our emergency room is going to stay open until people's feet are wet.

ROESGEN: In the frantic effort to save the city from flooding, now word that the river could crest as high as 43 feet, two feet higher than the earlier prediction. Devastating news for some who say they have already done all they can.

UNIDENTIFIED MALE: Our dike is good to about 42 feet. So if it does get to 43, it's coming over the dike, we can't add to it. Raising a dike a foot doesn't sound like much but for every foot high you go, it's pretty wider at the base and so several thousand sandbags.

ROESGEN: But Fargo City leaders are still hoping for the best. They opened last night's emergency meeting with a prayer and then, once again, called on thousands of volunteer sandbaggers. People who have worked for days in frigid temperatures trying to fortify the dikes.

DEPUTY MAYOR TIM MAHONEY, FARGO, NORTH DAKOTA: We got a hundred percent completion of our 43 level. With the new forecast coming in, what we want to do is, you know, on the south side of Fargo we believe it's necessary to go to 44 feet.

(END VIDEOTAPE)

ROESGEN: And tomorrow, Saturday, is going to be D-day here. That's when the river is supposed to crest, whether it's 42, 43, 44, let's hope not. In any event, the mayor of Fargo here is saying, well, if we go down, we'll go down swinging. Rob?

MARCIANO: Fight continues up there. Susan Roesgen live for us.

A little bit of history on what's going on. This is such a wide expanding story. It does include parts of Minnesota. It includes Canada. Here's Fargo. This river runs to the north and it's a very flat flood plain so it's susceptible to floods. It's a very young river, what geologists will tell you and it hasn't really cut down a valley.

So when it does flood and it'll do that during the spring time, during the spring thaw, it has a tendency to spread that water out and incorporate a lot of people, Heidi. So they've had this happen for the past 15 or so years. Been kind of a wet cycle for them.

COLLINS: Right.

MARCIANO: And it's just difficult to fight against, you know, a spring thaw when you have ice jams as well and -- complicating things.

COLLINS: Yes. No kidding. Never this bad, though. I mean we're talking now about this crest, which we keep mentioning, a possible 43 feet. That's what they're preparing for possibly tomorrow.

MARCIANO: Right.

COLLINS: How do you know? How do you go about predicting? Is that a meteorological thing or is that more...

MARCIANO: It's...

COLLINS: I don't know. Flood predictors.

MARCIANO: Well, (INAUDIBLE) call them hydrologists.

COLLINS: Hydrologists. OK.

MARCIANO: And they have meteorology background. They also are pretty good with geology, and they encompass some models in regional offices that will determine, you know, where the water is and where it's flowing to, and then how much rainfall on top of that is going to fall.

But what complicates is the subfreezing temperatures that locks up some of the moisture.

COLLINS: Yes.

MARCIANO: And also when this -- when the ice thaws, how that complicates it as well and then these ice jams, these blocks of ice that will actually dam up parts of the river, when will those release and release water. So it's -- in this part of the world, it's certainly even more complicated to predict how high the river is going to get and that's why they've been changing the forecast tomorrow.

COLLINS: Yes, exactly. All right. So we'll keep our eye on that. Also we'll talk a little bit more later about how this is a north flowing river.

MARCIANO: Yes.

COLLINS: Kind of unusual. So our friends in Canada, as well, we're going to keep an eye on that.

Rob, thanks so much. Appreciate it.

MARCIANO: All right. Sure.

COLLINS: Also want to share to everybody some of these iReports that we're getting in now. Amazing images of people in North Dakota and Minnesota working together to protect neighborhoods from the rising flood waters.

Amelia Felz, a senior at North Dakota State University, took these shots of the massive sandbagging effort at the Fargo Dome. Other volunteers are stacking those sandbags in residential areas to shore up dikes along the swollen Red River.

Red River flooding also raising concerns, as we mentioned, in Canada. The threat right now in small towns in Manitoba is from ice jams. We keep talking about these. Pushing the river over roads and into homes. Some 40 homes have been evacuated now. 200 more are threatened.

Hundreds more people have been warned to prepare for possible evacuations as that north-flowing Red river is expected to crest in the Winnipeg area next week.

Severe storms also did a number on the Rockies. More than a foot of snow fell across parts of Colorado pushing the state's governor to declare an emergency.

CNN all-platform journalist, Jim Spellman, is joining us now live this morning from Commerce City, Colorado, just outside of Denver.

Jim, how do things look there?

JIM SPELLMAN, CNN CORRESPONDENT: Well, Heidi, you know, it snowed like the Dickens yesterday. It was crazy. I've never seen really anything like it. I just moved out here a couple of months ago. It was almost like a hurricane mixed with a snowstorm.

This morning, it's a lot calmer, just a little bit of flurries here. The big story here is the roads. Lots of them covered with ice, many pileups yesterday. Here at Commerce City, at a truck stop where I am, a lot of truckers have been overnighting in here and they're ready to get out on the roads.

Overnight, the plows have been all night and they were able to open up most of the highways which were closed off and on yesterday. So today we -- you know, we hope to get a little sunshine and maybe even a little bit of snow melt but there are so many trucks backed up here ready to get out on road.

Over at the airport, 300, 400 people had to spend the night there. The runways are open now so they hope to get those people cleared out. But it's really snow-packed here on all the roads, makes it very treacherous and a layer of ice, as you head more toward the foothills makes it even more dangerous. Heidi?

COLLINS: Yes, no question, because in Colorado, I lived there for several years, usually you think about the snow as being up in the mountains. When it comes down to the city, you know, it's kind of like every other city. I mean it makes things really difficult even for people who will tell you they're used to the snow.

SPELLMAN: Yes. Well, a lot of people -- you know if you come from the East Coast, people sort of make fun of you about the snow. Come from Washington, D.C., you know, where they close schools like that.

But I tell you here, there were people that were really struggling. Any time there was a hill, you couldn't tell whether it was snow-pack or a layer of ice or snow on top of it and people were spinning out everywhere. So you're right. Same story as anywhere else. When the snow comes, it's tough to get around.

COLLINS: Yes, absolutely. All right. Jim, great job. I know you shot all these videos that we're looking at right now, too. So we appreciate it.

Jim Spellman, coming to us from Commerce City, Colorado, right outside of Denver there.

One of our own CNN HEROES in the trenches helping to save lives and cities in the flood zone of North Dakota. We're going to talk to him coming up just a little bit later in the NEWSROOM. A good story there.

Also this today. The war in Afghanistan and the future of U.S. troops there. Minutes from now, President Obama will unveil a new strategy.

(COMMERCIAL BREAK)

ANNOUNCER: This is CNN. The most trusted name in news. Now back to the CNN NEWSROOM.

COLLINS: Just a few minutes from now, President Barack Obama unveils his new plans for U.S. troops in Afghanistan. A live shot of the room where that's going to be taking place. Thousands more Americans may soon be on their way.

CNN White House correspondent Suzanne Malveaux has details now of this hour's announcement coming up in just a few minutes, as we said.

Suzanne, tell us a little bit about what we're going to hear today.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Heidi, we got a briefing from three senior administration officials who really paint kind of an ominous picture about the status of al Qaeda as well as the Taliban.

One official saying -- and I am quoting here -- that by every indication, the Taliban is stronger now than they were two years ago. So they are building momentum. So what President Obama is going to announce is a new strategy and a new approach.

(BEGIN VIDEOTAPE)

MALVEAUX (voice-over): Senior administration officials say President Obama will warn Americans that al Qaeda is now plotting and planning to do the worse against the U.S. It is the central challenge now facing the country.

But the leadership of al Qaeda has now moved from Kandahar, Afghanistan, to a safe haven in neighboring Pakistan at an unknown location.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We cannot allow al Qaeda to operate. We cannot have those safe havens in that region.

MALVEAUX: That's why President Obama is announcing a new strategy. A war against al Qaeda and its allies. Now focused on two countries -- Afghanistan and now Pakistan.

The goal, according to one senior administration official, to disrupt, dismantle and defeat al Qaeda and destroy the safe haven that has developed in Pakistan and prevent it from rebuilding in Afghanistan. Also to reverse the Taliban's momentum by working with Afghans who want another way of life.

President Obama is ordering 17,000 additional U.S. troops to Afghanistan along with 4,000 military personnel to train the afghan army and police. The goal by 2011, Afghanistan's own security will nearly double in size to 135,000 serving in the army and 80,000 acting as police.

The president will also call on Congress to pass a bipartisan bill to triple U.S. aid to Pakistan. As for an exit strategy for U.S. troops, there is no timetable. As one senior administration official put it, this is a strategy, not a strait jacket. Getting out will depend on the progress made on the ground, from periodic assessments and consultation with commanders.

(END VIDEOTAPE)

MALVEAUX: And senior administration officials say that President Obama did reach out to the presidents of Afghanistan and Pakistan to brief them on this new strategy, this new plan. Those officials wouldn't give the details about the conversation, but they did say the president, in their words, was gratified by their reception. Heidi?

COLLINS: Some people probably wondering at this point, Suzanne, what the plan is or if this new plan includes new tactics for getting Osama bin Laden.

MALVEAUX: Well, I actually asked that question at the briefing whether or not there was any kind of new specific efforts to go after bin Laden. They said, well, look, bin laden is a part of the al Qaeda leadership. He is included in that and so certainly they're going to go after him as well.

COLLINS: Of course. All right. CNN's White House correspondent, Suzanne Malveaux. Thank you, Suzanne.

Eyes on Afghanistan. World leaders are turning their attention to the troubled nation. President Obama has spoken with the leaders of Pakistan and neighboring Afghanistan to brief them on his plans. Administration officials say he was, quote, "gratified by their reception.

Afghanistan is also the focus of at least two major meetings in coming days. Today, Moscow holds a conference. Representatives from China and the United Nations will attend that. And then next week, Secretary of State Hillary Clinton will be taking part in a conference at The Hague.

We are keeping an eye on the developing weather situation as well. Right now our Rob Marciano is watching developments from the severe weather center.

I'm not sure where you want to start here but we've got tornadoes to talk about and of course, the situation in North Dakota with the flooding.

MARCIANO: Absolutely. There the rivers continue to rise there and another round of severe storms rolling across the same spot that got hit yesterday. A severe thunderstorm and tornado watch in effect until 10:00 local time and just issued, a tornado warning for parts of the Florida panhandle.

There you see it there on the pink polygon issued there until 8:45 local time for Bay, Calhoun, Jackson and Washington County. That's a radar indicated tornado and it'll likely won't be the last one we see today. Complete weather coming up when the CNN NEWSROOM comes right back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Is it the wrath of God? You know? Or what is it? You know, it's nature taking its course and there's nothing we can do it.

UNIDENTIFIED MALE: It's just the nicest place in town to live, but not anymore.

(END VIDEO CLIP)

COLLINS: Those are just some of the residents from Fargo, North Dakota, forced from their homes because by all of the flooding there. Another neighbor was evacuated earlier this morning about 150 homes.

We'll have more on the flooding and severe weather coming up in just a few moments.

Minutes from now, though, President Obama is due to unveil a new strategy for Afghanistan. Thousands more U.S. troops could soon be on their way. We'll take his comments live just as soon as they begin.

The economy. Taking a prominent position on the president's schedule yet again today. Here's a look at what he is doing on day 67 of his administration. In just about two minutes he's announcing a new strategy, as we said, on Afghanistan and Pakistan. Then at 10:25 Eastern he'll attend the installation ceremony of Attorney General Eric Holder and then at noon, President Obama will be meeting with CEOs from some of the nation's biggest bank.

I'll get their feedback on this executive economic recovery plan.

It is a busy day at the Pentagon. Military leaders waiting for President Obama to unveil that new plan for the Afghanistan war. Meanwhile, Navy ships are on the move as the U.S. warns North Korea against a provocative missile launch.

Let's go ahead and begin now with North Korea and CNN correspondent Barbara Starr.

Barbara, give us the latest here.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Heidi, there is a new satellite image which I think we can show to our viewers. Now that is what the administration is looking at very closely. Experts say it does show a missile on a launch pad in North Korea, a long- range missile.

The North Koreans say they are simply going to launch a satellite on top of this missile. The U.S. has no policy of shooting commercial satellites down, but make no mistake, they do not want to see North Korea proceed with this launch because even it's a satellite on the front-end it's the same type of military technology for that long- range intercontinental ballistic missile that could someday threaten the U.S., backing the White House into a very tough corner here, Heidi. COLLINS: Yes. All right. So we're clearly watching that situation as always. Meanwhile also waiting for President Obama, as we've mentioning here this morning to announce his plans for Afghanistan today. Can you give us some details on what we're going to hear?

STARR: Well, we're going to be watching very carefully to see what exactly the president is going to say here that is new. The situation in Afghanistan, the decline in security, the rise in violence and the number of U.S. troops being killed, that has been going on for months now.

COLLINS: Yes.

STARR: And nobody is really done much about it. There have been a lot of ideas there -- out there, but is there really anything new?

The president, by all accounts, will call for adding to the 17,000 troops already going there. He is going to say, he is going to send another 4,000 to be military trainers, to train up more Afghan security forces. More civilian aid, more reconstruction, more aid to Pakistan across the border, which is basically now the Taliban and al Qaeda safe haven in that country.

He's going to call for the benchmarks, looking for measures of success. But this is going to be very tough going by all accounts. You know, one commander last week said, it could be another three to five years of a significant international military effort in Afghanistan.

COLLINS: Yes. Still so much training needed and going on. I also wonder, Barbara, when we're talking about taking troops out of the Iraq, do we have a number yet or sort of maybe a percentage of those who will come from Iraq and then redeploy to Afghanistan?

STARR: Well, it won't be that they will directly go from one country to the other. Of course, but as troops come out of Iraq and they come home for that 12-month rest period, that gives the military the Pentagon more flexibility to select troops to go to this plus up in Afghanistan. Very interesting choice of words. Nobody is calling Afghanistan a surge.

COLLINS: Right.

STARR: Like they did in Iraq.

COLLINS: Right.

STARR: We don't even see General Petraeus out there nowadays. Very different choice of words. This is going to be a strategy of diminished expectations. Nobody is talking about Afghanistan becoming a Jeffersonian democracy. They're talking about trying to put in enough security so Afghanistan can have an election later this year so Afghanistan eventually begin to look after itself.

No talk here of mission accomplished or victory at hand. This is really downplaying what can be accomplished, trying to make something happen. Heidi?

COLLINS: Yes. Yes. And again, the small box there right beneath Barbara, we are waiting for President Obama to begin unveiling that plan coming up any minute now. And I did actually see General David Petraeus in the room as well, so we'll be watching to see if he has anything to say as well today or at least that we'll hear about later on perhaps after the president.

Barbara Starr from the Pentagon, thanks so much.

STARR: Sure.

COLLINS: Let's get to meteorologist Rob Marciano now with a tornado warning that we need to update for you.

Rob, what's the latest now. Are we talking about Florida or just before Florida?

MARCIANO: Florida panhandle, Heidi. Bay County, Washington County, Jackson County, Calhoun County. This tornado warning for the next about 20 minutes. It's moving easterly rapidly at about 50 miles an hour so about 8:45 Central Time it'll be crossing the I-10 and at this point it is radar-indicated. That's good news.

Tornado watch in effect for this area until 10:00. That may be extended eastward as this entire system rockets off towards the Atlantic. Heavier rain across part of the southeast. This is definitely causing travel delays and then the snow is from the Denver to the plains. It will eject another piece of energy that will bring another round of severe weather to the same spots tonight and tomorrow.

That's a quick check on weather at CNN NEWSROOM with Heidi Collins. We'll be right back.

(COMMERCIAL BREAK)

COLLINS: Quickly, we want to get you to the opening bell. You hear it ringing there. We've seen a pretty ferocious rally this past two weeks. The Dow gained more than 1300 points, in fact. Today, though, we are expecting a bit of a pull-back.

Stephanie Elam is at the New York Stock Exchange with a preview of the trading day. A little wrestling going on with those numbers, I guess, Stephanie? Get it? WWE?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: A little bit of wrestling. I know. It makes me want to make my ugly face or something. Look at me. But...

COLLINS: Do you have one of those?

ELAM: Sure. But I'm not going to show it.

COLLINS: OK.

ELAM: I'll send you a picture later, and I won't even do that, actually.

But, yes, we are off to a weaker start today, Heidi. Giving back some of those recent gains. A new report shows that personal income fell last month for the fourth time in five months, spending edge slightly higher.

In about a half an hour, we'll get a reading on consumer's sentiment, which will show how confident Americans are about the economy. Ms. Christine Romans will have more on that in a few moments.

President Obama is said to meet with about 15 bank CEOs today to discuss the economic crisis. This comes as one of the nation's biggest banks, JPMorgan Chase is taking steps to cut cost. The company plans to reduce or eliminate its 401(k) match. The move will affect workers making between $50,000 and $250,000 a year.

Now on the jobs front, auto parts maker Johnson Controls is cutting an unspecified number of jobs and we'll close ten plants. Amazon.com is closing three distribution centers affecting more than 200 workers.

All right, here we go. Early numbers right now. We've got the Dow up 113 at 7811. NASDAQ lower by more than 1.5 percent right now at 1561. But you know what, for the year as of yesterday, NASDAQ in the plus column now here. And over the last couple of weeks, the Dow has gained about 21 percent.

So it's not too bad to see a little bit of a pull-back here today. We're not too surprise about that one, Heidi. So that's the latest from here. Withstand ugly face, back to you.

COLLINS: Yes, exactly. All right, we will be watching closely. Stephanie, thank you.

Google is eliminating jobs. The Internet giant second wave of layoffs this year will affect 200 employees. That's less than one percent of their work force. Google makes most of their money off those Web ads, but many companies are cutting back on advertising as well.

Measuring the economy and trying to read the tea leaves on whether it's headed up or down. Last hour, we got some new numbers we want to share with you.

CNN's Christine Romans is here now to tell us what they are and, more importantly, what they mean - Christine.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, what this is is this is a gauge, Heidi, of Americans spending power. And Americans personal spending went up a little bit about 0.2 percent for the second month in a row. Meaning, they are finding a way to spend a little bit more money.

But personal income was down. Down. Why? Because of these layoffs. We were just talking about -- IBM, Google, all of these layoffs we're seeing, meaning the people have less money, but finding a little way to spend a little bit of it for the second month in a row.

It might be because they bumped up their personal savings rate over the past few months. You can see right now it's about 4.2 percent, which is not as high as it has been in the past couple of months. But it might be they're feeling a little bit more comfortable about the money they have saved in the bank, and so that's allowing them to go out and buy some of those things that they've been putting off for a while - Heidi.

COLLINS: Yes. All right. Interesting. And you mentioned this meeting with the big CEOs of the bigger banks, we should say. Tell us about that as well as Treasury Secretary Timothy Geithner's testimony yesterday. I believe he is going back today, right?

ROMANS: Well, let me talk about the Obama and bank CEOs first. President Obama will be talking to maybe 15 bank CEOs today. This is incredibly important. I mean, he and they have to bury the hatchet here. It's been a very difficult couple of weeks as you know, between here.

COLLINS: Yes.

ROMANS: He needs to sell the toxic asset plan. He needs to sell the fact that this administration has a plan for healing the banking system. And frankly, he needs to convince them what he has said publicly this week that we are not going govern out of anger.

What you're hearing from the banking sector are grave, grave concerns about Congress and the government changing the rules as we go along the way, and so that really creates uncertainty for some of these -- some of these banks and financial institutions.

(CROSSTALK)

COLLINS: Or change some of the rules later?

ROMANS: Retroactively. It's really that. And so, he's got to get in there and convince them -- look, you know. The concerns about the House bill, taxing things after the fact, that's kind of going away. We're going to really make sure that we're not governing out of anger here; we're governing out of what is best for the American people.

And then you mentioned Timothy Geithner. That testimony, he is outlining -- really has been outlining what they want to do for a super regulator.

COLLINS: Right.

ROMANS: And he's going to have to convince them of that, too. That these critically important non-bank institutions, which these big bankers do lots of business with, there needs to be some oversight there. And one thing that, Heidi, what I've been asking people about, what does a super regulator means, a lot of people are telling me they might never actually have to go in there and do anything to take down a company and unwind it. I mean, that's the goal that they would never actually have to do it. But...

(CROSSTALK)

COLLINS: That would be great.

ROMANS: Yes. The confidence that we need in this -- you know, people are confident that there is somebody actually doing the job and watching out. That goes a long way to helping this psyche of the economy and consumers in the market and everything.

COLLINS: Certainly after AIG, I think everybody is running scared on that one.

ROMANS: I know.

COLLINS: Christine Romans, we sure do appreciate that.

ROMANS: Sure.

COLLINS: As we continue to watch for President Obama on a completely different topic there. We see right below Christine, our little live shot there of the room where we expect the president to come and announce his new plan for Afghanistan. Of course, we'll bring it to you just as soon as he appears. Scheduled originally for 9:25 so we run a little late there.

Welcome news, though, for some of the millions of unemployed Americans. The IRS saying all of or part of unemployment benefits will be tax-free this year. Now, it applies to the first $2,400 in benefits. The change to tax-free benefits is part of the recovery and reinvestment act President Obama signed back in February. More than 5.5 million people are getting those benefits this month.

And this program note as well. On CNN tonight, Anderson Cooper, Ali Velshi and the CNN Money Team search for hints the economy could be turning around. But what does that mean for you? We gather the sharpest minds on money to help make sense of it all. You can join us on the "MONEY SUMMIT," tonight at 11:00 only on CNN.

Potentially dangerous weather situations. East of the Rockies to the upper Midwest and into the Deep South. The Red River is creeping up on Fargo, North Dakota. Already one levee has sprung a leak, and people are starting to move to higher ground.

In Colorado, the National Guard has been activated. A state of emergency declared after a spring blizzard dumped as much as 16 inches of snow. Also, severe thunderstorms rumbling across the south with the threat of more tornadoes like the ones that tore through Mississippi, and you see the aftermath there. It happened yesterday.

We are getting a whole lot of iReports, too, from our viewers on the flood threat. These pictures are in from Kyle Martin in Bismarck, North Dakota. He was one of the volunteers filling the sandbags at the civic center yesterday to stop potential flooding from the swollen Missouri River. Today, officials say sandbaggers are no longer needed because the river has receded a bit.

Rob Marciano joining us now. A very, very busy day. You are all over the map, if you will. What's the latest in Fargo now? Because we're talking about not only the Red River here.

MARCIANO: Yes. And, you know, we were talking about the uncertainty there is in forecast. Difficulty in forecasting, you know, what rivers are going to do and how high they are going to rise. This just release, a statement from the Grand Forks National Weather Service saying that record flows upstream of Fargo have produced unprecedented conditions. So, basically, the relative uncertainty in forecast models has increased significantly...

COLLINS: Wow.

MARCIANO: And they basically, they're not quite sure that the river is going to stop at 42, 43 feet.

COLLINS: Geez.

MARCIANO: But they are sure it's going to probably stay there for three to seven days regardless.

COLLINS: Holy cow.

MARCIANO: So scary words coming out of that forecast office, and not -- certainly not news that those folks want to here.

We also have flood issues across the southeast, although not as dramatic. Probably the more dramatic news with this weather system is the severe weather. Thunderstorm watch or tornado watch, I should say, in effect until 10:00 Central Time, and that may very well be allowed to expire.

And then the snows across Denver to Wichita. This is very unusually strong spring storm to see blizzard conditions here. Two feet of snow plus in parts of Wyoming and Vail got 11 inches, anywhere from 8 to 18 inches of snow in the Denver area. And the forecast calls for more snow across parts of Oklahoma and Kansas. Could see several inches to a couple of feet there.

And then also point this out, Heidi. Of all that energy that's coming out of Colorado is going to trigger more thunderstorms in the same spots that got damaging thunderstorms the last two nights that includes parts of Mississippi, Alabama and Arkansas. Storm prediction center has put out a moderate risk for more severe weather beginning later on this afternoon.

Back to you.

COLLINS: All right. Very good. We're going to stay on top of all of this. I know it's a busy day for you. We are very glad you're there. In fact, I think we're going to have an opportunity to talk with the governor of North Dakota, also a busy man today -- coming up shortly here in the CNN NEWSROOM. Rob Marciano, thanks so much. We'll check back later on.

Meanwhile, waiting for President Barack Obama to hold a news conference right here. We are going to be hearing more about his new plans for Afghanistan. Off the top here, we do know that 4,000 additional troops will be headed there. We are going to talk about some of the goals and the new strategy just as soon as he takes to the podium.

(COMMERCIAL BREAK)

COLLINS: Quickly, we want to take you directly to President Barack Obama announcing his new plans for Afghanistan.

(BEGIN VIDEO CLIP)

OBAMA: Before I begin today, let me acknowledge, first of all, your Excellencies, all the ambassadors who are in attendance. I also want to acknowledge both the civilians and our military personnel that are about to be deployed to the region. And I am very grateful to all of you for your extraordinary work.

I want to acknowledge General David Petraeus, who's here, and has been doing an outstanding job at CENTCOM, and we appreciate him. I want to thank Bruce Reidel, Bruce is down at the end here, who has worked extensively on our strategic review. I want to acknowledge Karl Eikenberry, who's here, and is our Ambassador-designate to Afghanistan. And to my national security team, thanks for their outstanding work.

Today, I'm announcing a comprehensive, new strategy for Afghanistan and Pakistan. And this marks the conclusion of a careful policy review, led by Bruce, that I ordered as soon as I took office. My administration has heard from our military commanders, as well as our diplomats. We've consulted with the Afghan and Pakistani governments, with our partners and our NATO allies, and with other donors and international organizations. We've also worked closely with members of Congress here at home. And now I'd like to speak clearly and candidly to the American people.

The situation is increasingly perilous. It's been more than seven years since the Taliban was removed from power, yet war rages on, and insurgents control parts of Afghanistan and Pakistan. Attacks against our troops, our NATO allies, and the Afghan government have risen steadily. And most painfully, 2008 was the deadliest year of the war for American forces.

Many people in the United States, and many in partner countries that have sacrificed so much, have a simple question: What is our purpose in Afghanistan? After so many years, they ask, why do our men and women still fight and die there? And they deserve a straightforward answer.

So let me be clear: al Qaeda and its allies, the terrorists who planned and supported the 9/11 attacks, are in Pakistan and Afghanistan. Multiple intelligence estimates have warned that al Qaeda is actively planning attacks on the United States homeland from its safe haven in Pakistan. And if the Afghan government falls to the Taliban, or allows al Qaeda to go unchallenged, that country will again be a base for terrorists who want to kill as many of our people as they possibly can.

The future of Afghanistan is inextricably linked to the future of its neighbor, Pakistan. In the nearly eight years since 9/11, al Qaeda and its extremist allies have moved across the border to the remote areas of the Pakistani frontier. This almost certainly includes al Qaeda's leadership -- Osama bin Laden and Ayman al- Zawahiri. They have used this mountainous terrain as a safe haven to hide, to train terrorists, to communicate with followers, to plot attacks, and to send fighters to support the insurgency in Afghanistan. For the American people, this border region has become the most dangerous place in the world.

But this is not simply an American problem, far from it. It is, instead, an international security challenge of the highest order. Terrorist attacks in London and Bali were tied to al Qaeda and its allies in Pakistan, as were attacks in North Africa and the Middle East, in Islamabad and in Kabul. If there is a major attack on an Asian, European, or African city, it, too, is likely to have ties to al Qaeda's leadership in Pakistan. The safety of people around the world is at stake.

For the Afghan people, a return to Taliban rule would condemn their country to brutal governance, international isolation, a paralyzed economy, and the denial of basic human rights to the Afghan people, especially women and girls. The return in force of al Qaeda terrorists who would accompany the core Taliban leadership would cast Afghanistan under the shadow of perpetual violence.

As President, my greatest responsibility is to protect the American people. We are not in Afghanistan to control that country or to dictate its future. We are in Afghanistan to confront a common enemy that threatens the United States, our friends and our allies, and the people of Afghanistan and Pakistan who have suffered the most at the hands of violent extremists.

So I want the American people to understand that we have a clear and focused goal: to disrupt, dismantle and defeat al Qaeda in Pakistan and Afghanistan, and to prevent their return to either country in the future. That's the goal that must be achieved. That is a cause that could not be more just. And to the terrorists who oppose us, my message is the same: We will defeat you.

To achieve our goals, we need a stronger, smarter and comprehensive strategy. To focus on the greatest threat to our people, America must no longer deny resources to Afghanistan because of the war in Iraq. To enhance the military, governance and economic capacity of Afghanistan and Pakistan, we have to marshal international support. And to defeat an enemy that heeds no borders or laws of war, we must recognize the fundamental connection between the future of Afghanistan and Pakistan, which is why I've appointed Ambassador Richard Holbrooke, who is here, to serve as Special Representative for both countries, and to work closely with General Petraeus to integrate our civilian and military efforts.

Let me start by addressing the way forward in Pakistan.

The United States has great respect for the Pakistani people. They have a rich history and have struggled against long odds to sustain their democracy. The people of Pakistan want the same things that we want: an end to terror, access to basic services, the opportunity to live their dreams, and the security that can only come with the rule of law. The single greatest threat to that future comes from al Qaeda and their extremist allies, and that is why we must stand together.

The terrorists within Pakistan's borders are not simply enemies of America or Afghanistan, they are a grave and urgent danger to the people of Pakistan. al Qaeda and other violent extremists have killed several thousand Pakistanis since 9/11. They've killed many Pakistani soldiers and police. They assassinated Benazir Bhutto. They've blown up buildings, derailed foreign investment, and threatened the stability of the state. So make no mistake, al Qaeda and its extremist allies are a cancer that risks killing Pakistan from within.

It's important for the American people to understand that Pakistan needs our help in going after al Qaeda. This is no simple task. The tribal regions are vast, they are rugged, and they are often ungoverned. And that's why we must focus our military assistance on the tools, training and support that Pakistan needs to root out the terrorists. And after years of mixed results, we will not, and cannot, provide a blank check.

Pakistan must demonstrate its commitment to rooting out al Qaeda and the violent extremists within its borders. And we will insist that action be taken, one way or another, when we have intelligence about high-level terrorist targets.

The government's ability to destroy these safe havens is tied to its own strength and security. To help Pakistan weather the economic crisis, we must continue to work with the IMF, the World Bank and other international partners. To lessen tensions between two nuclear- armed nations that too often teeter on the edge of escalation and confrontation, we must pursue constructive diplomacy with both India and Pakistan. To avoid the mistakes of the past, we must make clear that our relationship with Pakistan is grounded in support for Pakistan's democratic institutions and the Pakistani people. And to demonstrate through deeds as well as words a commitment that is enduring, we must stand for lasting opportunity.

A campaign against extremism will not succeed with bullets or bombs alone. al Qaeda's offers the people of Pakistan nothing but destruction. We stand for something different. So today, I am calling upon Congress to pass a bipartisan bill co-sponsored by John Kerry and Richard Lugar that authorizes $1.5 billion in direct support to the Pakistani people every year over the next five years -- resources that will build schools and roads and hospitals, and strengthen Pakistan's democracy. I'm also calling on Congress to pass a bipartisan bill co- sponsored by Maria Cantwell, Chris Van Hollen and Peter Hoekstra that creates opportunity zones in the border regions to develop the economy and bring hope to places plagued with violence. And we will ask our friends and allies to do their part, including at the donors conference in Tokyo next month.

I don't ask for this support lightly. These are challenging times. Resources are stretched. But the American people must understand that this is a down payment on our own future, because the security of America and Pakistan is shared. Pakistan's government must be a stronger partner in destroying these safe havens, and we must isolate al Qaeda from the Pakistani people. And these steps in Pakistan are also indispensable to our efforts in Afghanistan, which will see no end to violence if insurgents move freely back and forth across the border.

Security demands a new sense of shared responsibility. And that's why we will launch a standing, trilateral dialogue among the United States, Afghanistan and Pakistan. Our nations will meet regularly, with Secretaries Clinton and Secretary Gates leading our effort. Together, we must enhance intelligence sharing and military cooperation along the border, while addressing issues of common concern like trade, energy, and economic development.

This is just one part of a comprehensive strategy to prevent Afghanistan from becoming the al Qaeda safe haven that it was before 9/11. To succeed, we and our friends and allies must reverse the Taliban's gains, and promote a more capable and accountable Afghan government.

Our troops have fought bravely against a ruthless enemy. Our civilians have made great sacrifices. Our allies have borne a heavy burden. Afghans have suffered and sacrificed for their future. But for six years, Afghanistan has been denied the resources that it demands because of the war in Iraq. Now, we must make a commitment that can accomplish our goals.

I've already ordered the deployment of 17,000 troops that had been requested by General McKiernan for many months. These soldiers and Marines will take the fight to the Taliban in the south and the east, and give us a greater capacity to partner with Afghan security forces and to go after insurgents along the border. This push will also help provide security in advance of the important presidential elections in Afghanistan in August.

At the same time, we will shift the emphasis of our mission to training and increasing the size of Afghan security forces, so that they can eventually take the lead in securing their country. That's how we will prepare Afghans to take responsibility for their security, and how we will ultimately be able to bring our own troops home.

For three years, our commanders have been clear about the resources they need for training. And those resources have been denied because of the war in Iraq. Now, that will change. The additional troops that we deployed have already increased our training capacity. And later this spring we will deploy approximately 4,000 U.S. troops to train Afghan security forces. For the first time, this will truly resource our effort to train and support the Afghan army and police. Every American unit in Afghanistan will be partnered with an Afghan unit, and we will seek additional trainers from our NATO allies to ensure that every Afghan unit has a coalition partner. We will accelerate our efforts to build an Afghan army of 134,000 and a police force of 82,000 so that we can meet these goals by 2011. And increases in Afghan forces may very well be needed as our plans to turn over security responsibility to the Afghans go forward.

This push must be joined by a dramatic increase in our civilian effort. Afghanistan has an elected government, but it is undermined by corruption and has difficulty delivering basic services to its people. The economy is undercut by a booming narcotics trade that encourages criminality and funds the insurgency. The people of Afghanistan seek the promise of a better future. Yet once again, we've seen the hope of a new day darkened by violence and uncertainty.

So to advance security, opportunity and justice, not just in Kabul, but from the bottom up in the provinces, we need agricultural specialists and educators, engineers and lawyers. That's how we can help the Afghan government serve its people and develop an economy that isn't dominated by illicit drugs. And that's why I'm ordering a substantial increase in our civilians on the ground. That's also why we must seek civilian support from our partners and allies, from the United Nations and international aid organizations, an effort that Secretary Clinton will carry forward next week in The Hague.

At a time of economic crisis, it's tempting to believe that we can shortchange this civilian effort. But make no mistake: Our efforts will fail in Afghanistan and Pakistan if we don't invest in their future. And that's why my budget includes indispensable investments in our State Department and foreign assistance programs. These investments relieve the burden on our troops. They contribute directly to security. They make the American people safer. And they save us an enormous amount of money in the long run, because it's far cheaper to train a policeman to secure his or her own village than to help a farmer seed a crop, or to help a farmer seed a crop than it is to send our troops to fight tour after tour of duty with no transition to Afghan responsibility.

As we provide these resources, the days of unaccountable spending, no-bid contracts, and wasteful reconstruction must end. So my budget will increase funding for a strong Inspector General at both the State Department and USAID, and include robust funding for the special inspector generals for Afghan Reconstruction.

And I want to be clear; we cannot turn a blind eye to the corruption that causes Afghans to lose faith in their own leaders. Instead, we will seek a new compact with the Afghan government that cracks down on corrupt behavior, and sets clear benchmarks, clear metrics for international assistance so that it is used to provide for the needs of the Afghan people.

In a country with extreme poverty that's been at war for decades, there will also be no peace without reconciliation among former enemies. Now, I have no illusion that this will be easy. In Iraq, we had success in reaching out to former adversaries to isolate and target al Qaeda in Iraq. We must pursue a similar process in Afghanistan, while understanding that it is a very different country.

There is an uncompromising core of the Taliban. They must be met with force, and they must be defeated. But there are also those who've taken up arms because of coercion, or simply for a price. These Afghans must have the option to choose a different course. And that's why we will work with local leaders, the Afghan government, and international partners to have a reconciliation process in every province. As their ranks dwindle, an enemy that has nothing to offer the Afghan people but terror and repression must be further isolated. And we will continue to support the basic human rights of all Afghans, including women and girls.

Going forward, we will not blindly stay the course. Instead, we will set clear metrics to measure progress and hold ourselves accountable. We'll consistently assess our efforts to train Afghan security forces and our progress in combating insurgents. We will measure the growth of Afghanistan's economy, and its illicit narcotics production. And we will review whether we are using the right tools and tactics to make progress towards accomplishing our goals.

None of the steps that I've outlined will be easy; none should be taken by America alone. The world cannot afford the price that will come due if Afghanistan slides back into chaos or al Qaeda operates unchecked. We have a shared responsibility to act, not because we seek to project power for its own sake, but because our own peace and security depends on it. And what's at stake at this time is not just our own security, it's the very idea that free nations can come together on behalf of our common security. That was the founding cause of NATO six decades ago, and that must be our common purpose today.

My administration is committed to strengthening international organizations and collective action, and that will be my message next week in Europe. As America does more, we will ask others to join us in doing their part. From our partners and NATO allies, we will seek not simply troops, but rather clearly defined capabilities: supporting the Afghan elections, training Afghan security forces, a greater civilian commitment to the Afghan people. For the United Nations, we seek greater progress for its mandate to coordinate international action and assistance, and to strengthen Afghan institutions.

And finally, together with the United Nations, we will forge a new Contact Group for Afghanistan and Pakistan that brings together all who should have a stake in the security of the region, our NATO allies and other partners, but also the Central Asian states, the Gulf nations and Iran; Russia, India and China. None of these nations benefit from a base for al Qaeda terrorists, and a region that descends into chaos. All have a stake in the promise of lasting peace and security and development.

That is true, above all, for the coalition that has fought together in Afghanistan, side by side with Afghans. The sacrifices have been enormous. Nearly 700 Americans have lost their lives. Troops from over 20 countries have also paid the ultimate price. All Americans honor the service and cherish the friendship of those who have fought, and worked, and bled by our side. And all Americans are awed by the service of our own men and women in uniform, who've borne a burden as great as any other generations. They and their families embody the example of selfless sacrifice.

I remind everybody the United States of America did not choose to fight a war in Afghanistan. Nearly 3,000 of our people were killed on September 11, 2001 for doing nothing for than going about their daily lives. Al Qaeda and its allies have since killed thousands of people in many countries. Most of the blood on their hands is the blood of Muslims who al Qaeda has killed and maimed in far greater number than any other people.

That is the future that al Qaeda is offering to the people of Pakistan and Afghanistan, a future without hope or opportunity, a future without justice or peace. So understand the road ahead will be long, and there will be difficult days ahead. But we will seek lastly partnerships with Afghanistan and Pakistan that promise a new day for their people.

And we will use all elements of our national power to defeat al Qaeda and to defend America, our allies, and all who seek a better future because the United States of America stand for peace and security, justice and opportunity. That is who we are, and that is what history calls on us to do once more.

Thank you. God bless you. God bless the United States of America.

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