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Concerns Inside Toyota; Roethlisberger Assault Decision; Global Forum on Nuclear Weapons
Aired April 12, 2010 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TOM FOREMAN, CNN ANCHOR: If Toyota thought its troubles were fading away in the rearview mirror, just the opposite is happening. It's smack in the middle of a multi-problem pileup.
And here is the latest. Insurance giant State Farm says give us our money back. It's demanding that Toyota reimburse the company for claims paid out in any crashes linked to sudden, unintended acceleration. Other insurers are expected to follow suit. The potential cost to Toyota is estimated in the tens of millions of dollars.
And we could be talking much bigger bucks to settle over 200 lawsuits brought against Toyota. So far, the cases have just been consolidated by a federal judge in California. Legal analysts say Toyota may be on the hook for at least $3 billion, with a B, dollars.
And then there is the government, too. It's already levied a $16 million fine on the carmaker for failing to promptly notify highway safety officials about its gas pedal problems, and now it's threatening a second separate fine. You really have to wonder what the future is going to be for Toyota at this point.
And these last few months as we have heard all this news about recalls and congressional hearings, you've also heard whispers about whistle blowers at Toyota, people who were trying to get the word out when they saw a problem there. CNN's Deb Feyerick talks to one of them at length. Take a look.
(BEGIN VIDEOTAPE)
DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): For 45 years, Tadao Wakatsuki worked at the assembly line at Motomachi factory in Toyota City, Japan. He took pride in his work, pressing metal to shape the outside of cars, believing it was for the good of society.
TADAO WAKATSUKI, RETIRED TOYOTA WORKER (through translator): It was a good life I had.
FEYERICK: Bu in the last decade as demand for small fuel efficient cars skyrocketed, Wakatsuki and the small union represented began to fear the company was dangerously cutting corners and compromising safety. So, they took a risk.
FEYERICK (on-camera): Four years ago, the men wrote this letter voicing serious concerns about what they saw as Toyota moved to cut cost outsource critical design work, limit car testing on new models, and hire more workers they believed were less qualified.
WAKATSUKI (through translator): Workers without skill become in charge of making cars. As a result, naturally, the quality had to be compromised. We were very anxious of the danger.
FEYERICK (voice-over): From 2000 to 2005, the number of Toyota recalls had been rising steadily. The letter warned the company could face a serious crisis if it failed to act. The company's reply --
WAKATSUKI (through translator): We do not reply. That's it.
FEYERICK: Toyota now acknowledges the letter and says it strictly adheres to all Japanese and U.S. labor laws and regulations.
And this February, company president Akio Toyoda admitted priorities got confused. Competition to be first along with consumer demand outpaced quality control.
AKIO TOYODA, PRESIDENT, TOYOTA MOTOR CORPORATION: I fear the face at which we have grown may have been too quick.
FEYERICK: Toyoda set the gold standard for its lean manufacturing model, minimizing cost, maximizing efficiency. But economic research specialist Cliff Waldman says the company forgot a key goal.
CLIFF WALDMAN, MANUFACTURERS ALLIANCE: They overemphasized the efficiency and rapid growth without the goals of careful new product development, efficient information sharing.
FEYERICK (on camera): That information sharing or lack of it would come to haunt Toyota. Executives in the U.S., seemingly kept in the dark during Toyota's major car recall in more than 30 European countries last September, just before similar recalls hit the U.S.
STEVE ST. ANGELO, CHIEF QUALITY OFFICER, TOYOTA NORTH AMERICA: We're not perfect and we -- we didn't share the experience that we had in Europe. We didn't know about it in North America.
FEYERICK (voice-over): In March, Steve St. Angelo was named chief quality officer for North America --
(END VIDEOTAPE)
FOREMAN: So there's the latest from what's going on there.
And right now we're going to Milledgeville, Georgia. This is the attorney -- the district attorney there, Fred Bright, talking about charges or potential charges against Pittsburgh Steelers quarterback Ben Roethlisberger.
Let's listen.
(JOINED IN PROGRESS)
FRED BRIGHT, DISTRICT ATTORNEY, MILLEDGEVILLE, GEORGIA: The duty of a district attorney is to always seek justice, not merely to convict. When we have solid evidence of a crime and can prove a defendant's guilt beyond a reasonable doubt, we do that. Just as important, when we cannot prove a defendant's guilt beyond a reasonable doubt, we admit it and do not prosecute the crime.
As you know, for the last month, the Georgia Bureau of Investigation and the Milledgeville Police Department have been investigating a sexual allegation regarding Ben Roethlisberger. They have completed their investigation, turned over the reports to my office, which we have reviewed thoroughly.
The sexual allegation against Mr. Roethlisberger cannot be proven beyond a reasonable doubt. Therefore, there will be no arrest made, nor criminal prosecution of Mr. Roethlisberger for his actions here on March 5, 2010.
The facts as they appear from the investigation are essentially these --
On the evening of Thursday, March 4th, and going into after midnight on Friday, March 5th, Ben Roethlisberger was bar-hopping with his bodyguards and friends here in Milledgeville, Georgia, and attracting a crowd wherever he went. And the victim was bar-hopping with her sorority sisters.
Both parties had been drinking alcohol prior to meeting each other. They did not know each other before this evening, but did meet at different bars throughout the course of the night. They participated in conversations, some of a sexual nature.
After midnight, Mr. Roethlisberger and his entourage were at the Capital City Club --
FOREMAN: So that's District Attorney Fred Bright from Milledgeville, Georgia, saying there will not be prosecution of Pittsburgh Steelers quarterback Ben Roethlisberger in that sex allegation there in that town. This is a huge development, obviously, for Mr. Roethlisberger and the Steelers. Sports fans all over will be following very closely.
It is worth noting that he is -- this is the second time in a year that he has been accused of sexual misconduct. He faces a lawsuit filed by a woman who says he raped her in 2008 at Lake Tahoe. He denies that allegation, but nonetheless, the news right now is that in Milledgeville, Georgia, he will not face charges in this accusation which came up not so long ago.
Let's move on to the top news of the day. Here's what I've got "On the Rundown."
A major announcement as President Obama hosts dozens of world leaders for a nuclear summit. We're now learning Ukraine has pledged to get rid of all highly-enriched uranium in two years. More details on that in just a moment.
Plus, just a few days to go before Tax Day. If you have not filed yet, don't panic. "The Tax Lady," Roni Deutch, is here to answer your most frequently asked questions.
Also, if there is one group that knows full well when Tax Day is, it's the Tea Party. And they are wrapping up a massive road trip to D.C. this week, gathering steam all the way. And we are on their trail. We'll bring you the latest.
Turning to the top story of the hour, so many warheads, so many pounds of plutonium, highly-enriched uranium, in so many countries. With so many terrorists so eager to get their hands on it, that's more than a nightmare scenario. President Obama calls it the single- biggest threat to U.S. security.
It's why he has invited dozens of fellow world leaders to Washington this week, and it's why they have accepted. They want to find ways to further lock down the global supply of nuclear weapons- grade materials.
And just moments ago, we got a headline. The White House says Ukraine is vowing to get rid of all of its highly-enriched uranium in two years.
We'll bring you more on that as we learn more details as the day goes on.
This is the biggest such gathering hosted by a U.S. president since the 1945 meeting that gave rise to the United Nations, and it comes just days after Mr. Obama signed a new arms reduction treaty with Russia. Russia is taking part in the D.C. conference, along with 46 other countries from Algeria to Vietnam. You can see them here highlighted in yellow.
Iran, however, which claims not to be developing nuclear weapons, is not attending. You can see it there in red. Nor is North Korea, which claims to already have nukes.
India and Pakistan are at the table, but each is making weapons- grade plutonium as fast as it can as a deterrent against the other. But that's another story, one that's not on the agenda this week in Washington, as important as it is.
We have a new CNN poll on all of this about your opinions on this, and I want you to see those numbers, because they're pretty striking.
A majority of Americans believe it is likely the U.S. will be attacked by terrorists with nuclear weapons in the coming decade. Forty-five percent say it's not likely. Fewer than four in 10 Americans believe the U.S. will be involved in a full-fledged nuclear war. For that reason, an overwhelming majority say it's more important to keep nukes away from terrorists than to reduce nuclear weapons held by unfriendly countries.
Look at the numbers there. Seventy-seven percent are worried about this terrorist threat. My next guest is worried about it, too. He says he believes a nuclear attack by terrorists is more likely than not by the year 2014, which is not far off. Graham Allison is a former assistant secretary of defense who now heads the Belfer Center for Science and International Affairs at Harvard.
Let me ask you first, why do you believe that this is such a likely thing?
GRAHAM ALLISON, DIRECTOR, BELFER CENTER FOR SCIENCE & INTERNATIONAL AFFAIRS, HARVARD UNIVERSITY: Well, I think if you look at the facts, while it's psychologically incredible to imagine terrorists bringing a nuclear bomb and exploding it in one of our cities, analytically it's hard to see how it's not happened already.
Take 9/11. We know that on that day, a terrorist group killed 3,000 people, twice as many people as Japan killed in the attack at Pearl Harbor. What's the difference between 9/11 and a nuclear 9/11? Just one thing -- terrorists getting a nuclear bomb.
So, if Osama bin Laden gets a nuclear bomb, or the material from which he can make a nuclear bomb, he has stated his intention. He has been working hard at this objective. And he'll bring it to an American city and explode it, God forbid.
FOREMAN: Let me challenge you on just the physics of this thing, though, to begin with.
Even nations like North Korea and India and Pakistan and Iran, most recently, have proven in their own way that this is not an easy thing. You don't just cook this up in your kitchen.
So, aren't there still daunting physical challenges for a terrorist group to actually make this happen?
ALLISON: Well, there are. You're precisely right in what you've noticed, that in making highly-enriched uranium, or making plutonium, the only two things from which you can make a nuclear mushroom cloud, only states have the capacity to do that. And states like North Korea had to struggle for a long time to do that, but they've done so successfully.
The unfortunate fact, however, is that there are lots of nuclear bombs that states have made like North Korea or Pakistan, and there's lots of nuclear material which they've made. And if terrorists were to get a bomb that a state has made, or get 100 pounds of highly- enriched uranium that a state has made, they can make a primitive nuclear bomb.
So, the point of this summit is precisely focussed on this proposition. If we could lock up all nuclear weapons and all nuclear materials as good as gold in Fort Knox, then we could deny terrorists the means to achieve their deadliest aspirations and prevent nuclear terrorism. So, as I say in my book, there's a nice syllogism from physics -- no fissile material, no mushroom cloud, no nuclear terrorism.
So, the objective needs to be and has to be -- and it's the focus of this summit -- preventing terrorists acquiring a nuclear bomb or nuclear material made by a state. They're not going to make it themselves, but unfortunately they might get it from a state.
FOREMAN: Let me ask you this -- what is your biggest fear about in terms of getting it? Is it someone like North Korea, who we know has dealt in arms to other people, flat-out selling it to someone, or the failure of a country like Pakistan, where they simply can't protect their arms and they're taken by terrorists, or a terrorist organization effectively taking over the government, of a Pakistan?
Of those three scenarios, what do you think is the most deadly and most likely?
ALLISON: Well, those are three serious scenarios to think about. I would say the first and the second are more likely than the third.
In the case of North Korea, while it seems incredible to imagine that somebody like Kim Jong-il could sell a bomb to somebody like Osama bin Laden, we should remember that this same fellow in 2007 sold something thousands of times larger than a bomb to Syria. That is, a plutonium-producing reactor, plus starter fuel from which they would be able to make their own bomb.
And in the case of Pakistan, while the current physical arrangements for the security of nuclear weapons and materials are satisfactory as far as we can tell, the government of Pakistan and the society is one that's fighting currently two insurgencies against two Taliban groups, where al Qaeda is an active group and where we know that there are very tight connections between some of these groups and the custodians of the nuclear weapons and materials. So, Pakistan, if it became an unstable state, which is more likely than that a terrorist group would take over Pakistan, but if it became an unstable state, you could imagine the splintering of control of the nuclear weapons and materials, and those might get into the hands of somebody like Osama bin Laden.
FOREMAN: All right. Thanks so much for joining us, Graham Allison, from Boston today. We appreciate your time. Over in Cambridge, in fact. We appreciate your time and your expertise.
Some very dark days in Poland right now. The country begins a week of official mourning for the president and 95 percent others killed in a fiery plane crash. A lot of mourning in Chicago here, as well, the large Polish community outside of Warsaw.
But we will have a live report from Warsaw coming up in just a bit.
(COMMERCIAL BREAK)
FOREMAN: Intense grief is mingling with at least some relief today over in Poland. That country is mourning its president, first lady and dozens of other government and military officials killed in a plane crash Saturday in Russia.
Considering the size of Poland's loss, you might expect some political chaos to follow. But by all accounts, transfer of power has been smooth, and the rules governing this sort of thing have kicked in.
What does that mean? Well, the speaker of the lower house of parliament is now the acting Polish president, according to the constitution. He has two weeks to announce a date for a new presidential election. The vote has to be held in two months, so we're talking about mid-June.
Meantime, we're following developments on several other fronts. At the crash site in western Russia, we're told there are still bodies trapped in the wreckage of the presidential plane. There it is there.
That plane and its pilot both are under scrutiny today. Russian and Polish authorities are examining the flight recorders to learn more about the crew's decision to try to land in heavy fog.
Joining us live from Warsaw now, my old friend, CNN's Jim Clancy.
Jim, what is the latest on your end with this just really unbelievable story?
JIM CLANCY, CNN INTERNATIONAL CORRESPONDENT: Well, the nation of Poland still grieves, no doubt about that, Tom. But I want to get you briefed.
As you say, some of these latest developments that we have, word from the crash scene is that Maria Kaczynski, the wife of Lech Kaczynski, the president of Poland, her remains have been positively identified. They will be turned over by Russian authorities in the morning. And at some time after that, they will fly back to Warsaw, where she will lie in a casket, alongside the former president.
The public is going to be able to go in there tomorrow at some point to pay their personal respects to the president and his wife. No timing on that yet, but we do know now that the state funeral for both the president and the first lady will come on Saturday.
But keep in mind, Tom, you've got 20 lawmakers, you have military heads, you have so many other people, the funerals could go on for some time here in Warsaw.
Back to you.
FOREMAN: Jim, one of the things that has been raised is this question of what investigators might be looking at, at this scene, and what might have happened on board that plane.
Do you have idea of what they are looking at?
CLANCY: Well, not being in (INAUDIBLE) -- that's where in Russia where the investigation is taking place -- they're really looking at the black box data recordings, they're really looking at the communications that went on between the aircraft and the tower, and trying to determine just what happened there. Now, Russian authorities have come out and said today that they believe that these data recorders clearly show the tower warned the airplane that there was heavy fog at the time and urged them to divert to Minsk, another location, another airport, where they could have landed safely. But for some reason, as yet unexplained, the pilots tried, we are told, on four different occasions to land at that airport with tragic results.
FOREMAN: Unbelievable.
And how is the government functioning there, especially things like the economy? Obviously, if we had something like that happen here, even if we had a successful transfer of power, we would expect some bumps in road.
What's happening there?
CLANCY: You know, you can look at how the nation is coping right here behind me. If you take a look and you see, these are how the people in this democracy are coping. They are grieving, they are gathering in the streets, they are lighting candles, leaving bouquets of flowers, all the while the political process appears to be moving ahead slowly, but surely and steadily.
Now, on the economic front, we do know a lot of people were watching this morning to see how this was going to play out as the stock market, the Warsaw Stock Exchange, once again opened here in Warsaw, the capital city. What we saw was actually was actually a one percent rise.
Now, what the former deputy president told me just a couple of hours ago was that this shows the stability of the institutions of democracy. Twenty years after solidarity, the shipyards, the overthrow of communism in Poland, but he said as we see, the pillars of democracy in this country are holding firm. And that is why a lot of people went to their jobs today. But tonight, they have come out once again in their tens of thousands to pay homage to those who lost their lives on Saturday -- Tom.
FOREMAN: Jim Clancy, as always, a terrific job. And I know you'll keep us up to date on the investigation. Thanks so much.
Tragic stories over there in Poland.
In a moment or two, we will turn to somewhat lighter fare. Conan O'Brien is coming back to television here in the United States. When and where?
We're going to tell you. Just stay put.
(COMMERCIAL BREAK)
FOREMAN: Let's check out our top stories.
In Washington, D.C., President Obama is making some headway at the global nuclear summit. The White House says Ukraine has now pledged to get rid of all of its highly-enriched uranium in the next two years. That's an element commonly used for nuclear fuel.
Searchers have gone back into a West Virginia coal mine where 29 people were killed in an explosion last week. They hope to pull out the nine bodies still in the Upper Big Branch mine.
Plus, federal investigators are expected to arrive today. And in a rare move, the U.S. attorney in West Virginia says he will prosecute if there was any crime that may have led to this blast. That's a surprise out there.
Federal law enforcement sources tell us the alleged ringleader of a plot to blow up the New York subway system planned to stage his attack in mid-September of last year. They say Najibullah Zazi and his two alleged coconspirators planned to board trains at Grand Central and Times Square stations during rush hour and blow themselves up after the trains departed.
Imagine how that would have been.
Zazi has pleaded guilty to the charges. His codefendants have pleaded not guilty.
And finally, if you're missing Conan O'Brien, I've got a surprise for you. O'Brien is heading to cable channel TBS to host a late-night talk show. It's expected to debut in November. The show will air Monday through Thursday at 11:00 p.m. Eastern, shifting "Lopez Tonight" back to midnight. And, of course, TBS is one of our sister stations here at Turner.
We all remember stacking blocks when we were kids, right? Well, they've got nothing on these guys.
When we go "Off the Radar" with Chad, we will show you some fast hands and a new king in the world sport of cup stacking. Here's a tip -- don't blink.
(COMMERCIAL BREAK)
(WEATHER REPORT)
FOREMAN: Tax week is here, and if you are biting your nails about the big deadline, well, take a breath. Roni Deutch, "The Tax Lady," is going to join us and answer all of your critical questions now, as fast as stacking a cup.
Stay with us.
(COMMERCIAL BREAK)
FOREMAN: Here is a date that makes a lot of Americans cringe, April 15th, tax day. It means many of us owe Uncle Sam a lot of paperwork, maybe some cash, by Thursday. And a lot of you are rushing out there. So we've enlisted tax expert Roni Deutch to help make it as painless as possible for you. She wrote the book, "The Ladies' Tax Guide to Beating the IRS and Saving Big Bucks on Your Taxes." She's going to (INAUDIBLE) answering your questions. And Roni, let's start off with a question about tax returns. When can folks expect their cash?
RONI DEUTCH, TAX EXPERT: It really depends on the method in which you use to file your tax return. For example, if you e-filed your tax return with the IRS, you're going to get your refund check within 10 days. But if you use the United States Postal Service, it will generally take up to 10 weeks to get your refund check from the IRS.
FOREMAN: All right. We were showing for a moment there our next question, which I want to get to. "Do I need to have direct deposit if I'm going e-file?" Because a lot of people are going that way.
DEUTCH: Yes, that's a common misconception that taxpayers have. You do not need to have a direct deposit bank account if you e-file your tax return. All you need to know is e-filing is the safest, fastest, most effective way to get your refund check. And again, you'll get it within 10 days, with or without a direct deposit account.
FOREMAN: "Can I track the status of my refund?"
DEUTCH: Isn't it great to know, Tom, that you can absolutely track the status of your refund check? Here's what you need to do. You need to go to IRS.gov, and go to the "Where's my refund?" page at that IRS Web site and you can track the status of your refund. If you e-filed, it will be available within 72 hours. And if you mailed your tax return, that information will be available within three to four months -- three to four weeks -- excuse me -- after sending your return.
FOREMAN: OK. Here's another one that would matter a lot to some people. "Can the IRS intentionally withhold my refund?"
DEUTCH: Yes. It is so important for taxpayers to know that the IRS acts as the biggest collection agency in the United States. If you owe the IRS money, or you owe any other governmental agency money, like delinquent student loans, or owe money to a state agency, you bet. The IRS will absolutely keep all of your refund check.
FOREMAN: You're doing very well so far, Roni. Here's the next question. "What if there's an incorrect amount on the refund check?"
DEUTCH: Yes. Wouldn't it be great if the IRS sent all of us too much money? Here's what you need to know. The IRS is going to either send you the exact amount of money on your tax return, or a little more or a little less. And if they send you anything different than what was on that tax return, generally, they send you a letter of explanation within two weeks. But if you do not receive that letter of explanation within two weeks, please pick up the phone and call 1- 800-829-1040 and ask the IRS for an explanation as to why your refund check amount differs.
FOREMAN: All right. And last one here. "Can I change my mailing address even after I've filed my return?" I've suddenly moved to a different state, I finally got the job I was looking for. What happens?
DEUTCH: Yes, certainly, millions of taxpayers change their mailing address after they send their federal tax return in. Here's what you need to know. Your refund check is going to be delayed, meaning the post office will send it back to the IRS. So what you must do is go to IRS.gov "Where's my refund?" and make sure that you change the address that the IRS has for you, or you'll be like millions of taxpayers who have $1.2 billion in unclaimed refunds. Very easy to change your address to ensure that your refund check arrives to the right place.
FOREMAN: Roni Deutch, thanks so much. And her address will be right here all week long, answering your tax questions. Make sure you join us every day for that.
Moving on. The plan of attack, well, it was simple enough, board the subways at rush hour and blow them up. CNN will have the details on this alleged plot to attack New York City trains, all the latest. We've been following it all day. We'll bring the latest to you in just a moment. Stay put.
(COMMERCIAL BREAK)
FOREMAN: We have been following all day the new chilling details of the alleged al Qaeda plot to blow up the New York subway system. We want to bring you up to date on the latest. Federal law enforcement sources tell us that this man, the man in the white shirt getting off of that chopper -- that's Najibullah Zazi -- that he -- they say that he along with two allies planned to bomb New York subway trains last September around the time of the 9/11 anniversary. His likely target dates were September 14th or the 15th or the 16th.
Zazi has been cooperating since his arrest last year. According to the feds, the three were planning to target the subway system's busiest stations, Grand Central and Times Square, and they are unbelievably busy, if you've never been there. Wearing explosive vests, they would have boarded the trains, lines 1, 2, 3 or 6. Particularly for New Yorkers, that'll make sense. And after the trains departed, they would have blown themselves up. That's what they believe the plot was.
Zazi and his co-defendants were buddies at New York's Flushing High School, and all were allegedly recruited by al Qaeda and got training over in Pakistan. You may recall the plot began unraveling last year after Zazi drove from Denver to New York to allegedly scout out the targets. The feds say he admitted in court that he called off the plan when he learned that FBI and New York police were on to him. Zazi's co-defendants have pleaded not guilty so far in all this. Zazi has pleaded guilty. He's scheduled for sentencing in June. Some really astonishing new revelations about that attack plan. We'll have more all evening long here on CNN.
In the meantime: Red star rising. We're talking about the People's Republic of China. In case you did not notice, it's an economic power on the global stage, and we'll look at whether that is a good thing or a bad thing as the U.S. tries to come out of its own recession.
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FOREMAN: Now, back before we had those big millennium parties, every business person in this country knew that you had to be in China. It was considered a no-brainer if you wanted to move forward. Well, fast forward 10 years and you can't help but see the huge impact China is having on the U.S. in many different areas, but especially on the economy.
Our Christine Romans joins us now from New York for more on this very timely issue -- Christine.
CHRISTINE ROMANS, CO-HOST, "YOUR $$$$$": And Tom, especially coming out of a very deep and dark recession here, the question then, nine years after China was admitted to the World Trade Organization and officially welcomed to the world economy, many people are asking, has China's rise been good or bad for the U.S.?
(BEGIN VIDEO CLIP)
(voice-over): Meet Steve Udden, husband, father of two daughters, and a trade statistic.
STEPHEN UDDEN, LOST HIS JOB TO CHINA: I felt like a baseball player that got traded from a team that he loved playing for and loved the fans. I loved my customers. My co-workers were like second family to me.
ROMANS: His job as a telecom projects manager went overseas to China when his factory moved there. Classified by the U.S. government as a casualty of foreign trade qualifies him for a stipend and money for retraining. Unemployment benefits and COBRA health insurance help fill the gap.
UDDEN: We're keeping it level and steady and holding the line. And right now, we're OK.
ROMANS: He's the face of the increasingly strained relations between the U.S. and China. One think tank estimates 2.4 million manufacturing jobs went to China between 2001 and 2008. And with China's explosive rise comes a nation that is now a key player in America's domestic and foreign policy. Take its currency. Anything made in China is cheaper than made in the USA. Why?
DAN SLANE, U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMITTEE: They arbitrarily control the value of their currency and they do not allow it to float, like most other currencies in which supply and demand for the currency set the value of it.
ROMANS: That means $1 is always equal to about 6.83 yuan.
SLANE: The manipulation of their currency gives them about a 40 percent advantage and it puts our exporters at an enormous disadvantage. ROMANS (on camera): The Treasury secretary abruptly postponed releasing a report this week that could have listed China as a currency manipulator, opting for back room diplomacy and a closed-door meeting in Beijing, this just before China's president, Hu Jintao, comes to Washington for nuclear talks.
ROBERT KAPP, CHINA TRADE AND BUSINESS CONSULTANT: That's good. We're not going to hang him out to dry while he's here, which would be politically disastrous.
ROMANS (voice-over): And then there's this. Pressuring China is tricky. China is America's banker, the world's factory floor. It's building its military, buying more of the world's natural resources to fuel its growth, and it doesn't like Americans telling it what to do.
GORDON CHANG, AUTHOR, "THE COMING COLLAPSE OF CHINA": The Chinese showing a new assertiveness and aggressiveness that took many Americans by surprise. I think that it's partly because they're starting to listen to what we say about this being China's century and they started to internalize it and they say, Well, if this is our century, then we should determine what goes on.
DEUTCH: At the same time, the U.S. needs China's influence with emerging nuclear threats in North Korea and Iran.
KAPP: Thus far, the United States and China have clearly not been of one mind. The Chinese and emphasized over and over again, Do it diplomatically, let's negotiate, and the Americans have gotten more and more impatient and tried to move the world in the direction of difficult sanctions.
ROMANS: As the temperature rises, the American people wonder, is China an opportunity or a threat?
CHANG: It's going to be both. And the question is, on balance, is it better or it's worse?
ROMANS: A question unanswered for Steve Udden. He is still out of work in Foxboro, Massachusetts. His job is now somewhere in China. His outlook, quintessential American.
UDDEN: I'm completely optimistic and believe in the marrow of my bones that I am going to find something that's good for me and my wife and children.
(END VIDEOTAPE)
ROMANS: Publicly, the Chinese dismiss the Obama administration's calls to let its currency rise, and Chinese officials insist the U.S. is using Beijing as a scapegoat for its own economic troubles. Chinese premier Wen Jaibao in rare public comments recently, Tom, scolded President Obama and called America's attitude today protectionist and said the U.S. has too many of its own problems to interfere in how China chooses to do its business. Privately, Tom, though, there are high hopes that there could be some progress of the currency front, if not on the nuclear front, this week. FOREMAN: Unbelievably. So Christine, thanks so much. Engineering and space and everything that they're doing over there in China -- big, big news. We're going to stay on it.
ROMANS: Sure.
FOREMAN: You know what they're watching in Washington these days? The tea party. I'm telling you, as somebody who's there all of the time, both parties are still not quite sure what to make of these folks. They're going to get a good close-up look in just a few days. The "tea party express" is making its way to Washington, D.C. We will have an inside look at that movement on its way to your capital after this break.
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FOREMAN: Pushing for change, one rally at a time, the tea partiers are heading to Washington, D.C., where they're planning a big rally Thursday on tax day. Meanwhile, the "tea party express" continues its 48-stop tour with a couple of stops in upstate New York.
CNN political producer Shannon Travis is in Buffalo. Shannon, you've been traveling with the express and blogging about your experiences. You've talked about these perceived stereotypes of the tea party people. Explain a little bit more about that.
SHANNON TRAVIS, CNN PRODUCER: Well, let me just say this first, Tom. We're here in Buffalo, obviously, where a tea party rally just wrapped up. We're actually here at a naval and military park. You can see behind me there's some U.S. fighter jets retired -- some retired fighter jets. We're also on the Erie Canal, two interesting backdrops for this movement, one obviously of America's military might and another of a canal that helped the country grow commercially.
But another interesting tidbit about this area is that Buffalo was really key to the Underground Railroad, obviously, a movement that helped free a lot of slaves. Unclear if the "tea party express" knew that that would be a backdrop today up here also.
But you mentioned the thing about stereotypes. They are keen (ph) on the stereotype that at least their critics say is that they're a bunch of people who don't really like President Obama because he's black or that they have racist -- outright racism within their ranks. They're very keen on that.
As you said, I've spent a lot of time with them over the past two weeks, just observing some of the diversity in the crowd, some of the reception that I've even gotten as an African-American political producer. I can say that there aren't that many blacks that are actually at these rallies, but the ones who are there are very passionate. We had one person on stage, an act -- a singer named Lloyd Marcus (ph), who just at this rally said something about blacks at the media and said, are we a bunch of racists, which is odd for a black person to say that.
But yes, I've been traveling with the "tea party express." I've observed some things. I also took a little time to see what it's like for some of these activists behind the scenes, traveling from state to state, leaving their families and jobs behind. Take a look.
(BEGIN VIDEOTAPE)
We're here in Grand Rapids, Michigan, the latest stop on the national "tea party express" tour, where that crowd over there is full of angry protesters, but a lot of protesters who are celebrating the fact that Congressman Bart Stupak will not seek reelection.
How do you feel about Congressman Stupak's decision to not run for reelection?
UNIDENTIFIED MALE: He could see that he was going to get whipped.
UNIDENTIFIED FEMALE: Hello!
UNIDENTIFIED FEMALE: Freedom!
UNIDENTIFIED MALE: There are a lot of people riled up. And you know, I tell them it's better to turn off cable, unless, of course, we're on CNN, and get out and do something about it. And that's what they're doing.
TRAVIS: You're about to see something that very few people actually get to see. We're actually about to get on board one of the tea party buses and see what actually happens inside.
UNIDENTIFIED MALE: So just one microwave now?
UNIDENTIFIED FEMALE: Well, we had to get a new microwave (INAUDIBLE) take up all this counter space.
UNIDENTIFIED FEMALE: We do have some bunks back here.
UNIDENTIFIED MALE: There you have it.
TRAVIS: Is it pretty comfortable?
UNIDENTIFIED MALE: Absolutely not!
(LAUGHTER)
UNIDENTIFIED MALE: (INAUDIBLE) I'm actually getting some work done.
TRAVIS: Getting some work done? OK. I'll leave you alone.
DARLA DAWALD, TEA PARTY EXPRESS 3 ACTIVIST: The media (INAUDIBLE) we do, so I mean, we get on the bus and we have brainstorming sessions, What kind of racial slur can we come up with this time? Not! Just joking, of course.
UNIDENTIFIED MALE: Hey, everybody!
UNIDENTIFIED MALE: Hi, how are you?
UNIDENTIFIED FEMALE: (INAUDIBLE) we are going to vote the bums out! And we're going to do that by voting (INAUDIBLE)
UNIDENTIFIED FEMALE: We just thank you for the amount of people that have stepped forward in this movement and we ask that you'll continue to grow it, Lord.
UNIDENTIFIED FEMALE: OK, so it's 6:30 in the morning, and I haven't had much sleep. We actually got to bed about 1:00 o'clock last night.
UNIDENTIFIED FEMALE: The days start to kind of blur together, and you feel like -- like you can't even remember where you were yesterday.
UNIDENTIFIED MALE: Had to get it in there somehow.
UNIDENTIFIED FEMALE: We're headed to Detroit for our first rally. And it's drizzling here, so hopefully, we have better weather as we go.
UNIDENTIFIED FEMALE: (INAUDIBLE) hurry up and get here. You saw him running by, patting me on the back. The buses are leaving. They're honking their horns. You're trying to (INAUDIBLE) and trying to talk to people. We don't have time. Our schedule is so tight. We have to get to the next rally.
(END VIDEOTAPE)
TRAVIS: Darla and her fellow tea activists are on their way to Syracuse, New York, right now. They've got a big rally there. They've also got another big rally in Boston on Wednesday, where Sarah Palin is expected to attend. And of course, they'll wrap up (INAUDIBLE) national tour in Washington, D.C., Thursday.
FOREMAN: And we'll see them there. Thanks so much, Shannon. We appreciate your time on this.
Is the recession over? All sorts of politicians and pundits have been asking that question over and over again, but maybe the question you should be asking -- is your recession over? I'll tell you why in my "XYZ" in just a moment.
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FOREMAN: Well, it's time to wrap things up with the "XYZ" on all of it today. We turn to that bastion of all things exciting, the National Bureau of Economic Research. This is the group that officially declares when recessions begin and end. And after throwing the bones, reading the tea leaves and consulting the stars, they have concluded what almost anyone could have told them, this recession is not over yet.
Yes, they admit parts of the economy are growing. Yes, they concede that if the positive trends continue, they may reassess their position. But not yet. Of course, this is the same group that did not declare a recession was stomping across the country like Godzilla until most of us already knew it.
So why is that? Because the way the government, economists and businesses measure the health of the economy is different than the way you or I measure it, and what's good for the boss is not always good for the workers. Take productivity, for example. We invariably report a rise in productivity as a good thing. If a factory worker makes hundred little red wagons a week and suddenly he makes 120, his productivity has gone up. That's good for the company. It's good for the boss. Can be good for the government, too, if it produces extra tax revenue. But the worker just worked harder for the same wages. You see how this works?
My point is, while plenty of the powers that be in D.C. may want evidence of a recovery as soon as possible for political reasons, no matter what the numbers say, we all know what our lives are like -- almost 10 percent unemployment, millions of homes in foreclosure, millions more teetering on the brink, and oceans of families running scared.
So you want to know when the recession will be over? When you feel generally secure in your job again, when you feel like your house will remain yours and most of your neighbors feel the same way. That's when you will know you can pronounce the last rites for the great recession, and you won't need the priests of high finance to tell you it's time.
That's my "XYZ." I'm Tom Foreman, filling in for Ali Velshi today. Time now for my friend, Rick Sanchez, and "RICK'S LIST."