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Veterans Day at Arlington National Cemetery; Gripping Words From War Veterans; Carnival Passengers to Arrive in San Diego; Vice Pres. Biden Veterans Day Speech; U.S.-China Currency War Heats Up
Aired November 11, 2010 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: And, good morning, everyone. It is the 11th of November, Veterans Day.
Ceremonies at Arlington National Cemetery. Vice President Joe Biden, as you just saw, placing a wreath at the Tomb of the Unknowns. "Taps" providing the morning's somber sound track.
The vice president will have remarks shortly, and we will have those remarks for you live from the amphitheater.
Veterans Day honors the men and women who have worn the uniform for the U.S. military, for the patriotism and sacrifice for their country and the American people.
President Obama is marking this Veterans Day in South Korea. He stopped at a U.S. Army garrison earlier, ahead of the G-20 summit. The president laid a wreath to honor American and South Korean troops who lost their lives in the Korean War more than half a century ago, and paid tribute to those still serving today.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Now, real change comes slowly. Many people don't live to see the difference they've made in the lives of others. But for the men and women who have served on this peninsula, all you have to do is look around. Whether you're a veteran who landed in 1950, or one of the Yongsan troops today, the security you've provided has made possible one of the great success stories of our time.
(END VIDEO CLIP)
HARRIS: First lady Michelle Obama is also overseas on this Veterans Day. During a stop in Germany, Mrs. Obama helped serve a Veterans Day meal at Ramstein Air Base. She also visited wounded troops at the U.S. military hospital in Landstuhl. The first lady is heading home to Washington after traveling to Asia with the president.
Veterans describe the powers of war using just six words: "Hollywood fooled us, this is hell."
One man's word project is providing therapy for veterans and understanding for us all.
(COMMERCIAL BREAK)
HARRIS: A preliminary plan to reduce the nation's crushing debt is already coming under fire. The chairman of the bipartisan Deficit Commission calling for tax increases and deep spending cuts. The goal is to slash deficits by $4 trillion over 10 years.
This is one of the most important debates facing our nation right now. Most of you have had to make difficult decisions about your own personal debt and finances. Now it is the nation's turn.
So, as the debate unfolds, we are going to follow it in depth. How big is the debt, and how did we get here? Who owns the debt, and why you should care. What cuts are being proposed, and what would you cut?
You are fully involved. We need you to be fully engaged in this debate.
OK. Iraq has a tentative deal on a new government aid. Long months after elections, the three main ethnic blocs each take a top post. Nuri al-Maliki, a Shiite, gets another term as prime minister. Jalal Talabani, a Kurd, remains president.
Sunnis are choosing their leader, the speaker of the parliament, today. A new panel will keep check on the prime minister's powers.
(BEGIN VIDEO CLIP)
ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: The political leadership decided on establishing what is being called the National Council for Strategic Policies. This council will hypothetically have decision and policymaking authorities. It will be headed by a member of Iraq, possibly, former prime minister Ayad Allawi himself.
And on paper, this really does seem like it could be a working solution, but this, after all, Iraq's -- we're going to have to wait and see exactly how this power-sharing deal is going to play out.
(END VIDEO CLIP)
HARRIS: Amazon.com has pulled an eBook after angry protests and threats of a boycott. "The Pedophile's Guide to Love and Pleasure" was self-published. The author says he wrote it to correct society's misconception about pedophiles, not as a how-to manual.
(BEGIN VIDEO CLIP)
PHILIP R. GREAVES II, AUTHOR: Well, to tell you the truth, I don't think that it's always bad for the child. OK? But I do think it's always confining for the adult, because there are just so many more things that adults can enjoy between each other than they could enjoy with a child without hurting the child.
You know, every time you see them on television, they're either murders, rapists or kidnappers. And, you know, that's just not an accurate representation of that particular sexuality. It's not. (END VIDEO CLIP)
HARRIS: Oh boy. The eBook reportedly sold fewer than 100 copies.
Another big story, the Carnival cruise ship Splendor is close to docking in San Diego. The ship, crippled Monday by an engine room fire. The accident left the ship without electricity, and for a while without toilets. The Navy ferried food to the 4,500 people on board yesterday.
America pauses to remember its heroes in uniform. Arlington National Cemetery is just one place where tributes are being paid on this Veterans Day.
And gripping words from those who have paid a heavy price for protecting our freedom. "Joined Army, left legs in ago." A special 6 Word Memoir project straight ahead.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I knew it.
(END VIDEO CLIP)
HARRIS: That's pretty good, huh?
Honoring America's veterans. Live pictures now from Arlington National Cemetery on this Veterans Day. We are awaiting remarks from the vice president of the United States. Vice President Biden and other dignitaries are attending those ceremonies, including a wreath- laying in honor of fallen troops.
Emotional words from American veterans returning home from war. "SMITH" magazine has a special memoir project where veterans talk about their experiences, but they have to do it in six words.
Here's one: "Moment of silence, years of sadness."
And from another vet, "Finally home, but miss the guys."
The magazine's editor, Larry Smith, is with us from New York.
Larry, good to see you. Thanks for your time on this Veterans Day.
If you would, tell us about your project, how it came about.
LARRY SMITH, EDITOR, "SMITH" MAGAZINE: My pleasure, Tony.
HARRIS: And it's great to have you here. And why you decided to do this.
SMITH: Well, a few years ago, playing off the Hemingway legend, as the story goes, Hemingway was once challenged in a bet, could he write a whole novel in just six words? I run a personal story-telling site called "SMITH," where people tell their life stories.
We thought, what if we asked our readers to tell the story of their own life? What would your life look like if you had to do it in just six words? We called it the "6 Word Memoir."
HARRIS: So, a lot of veterans say they had a hard time talking about their experiences. Why do you think your format sort of drew them out of it?
SMITH: You know, if you ask anyone a question, whether you're a veteran or any person living your life, "How are you? What's the story of your life?" It's a very hard question.
You know, I like to say that a blank page is a very scary thing. But one that's filled with just six words isn't quite as scary.
A veteran comes home and people -- they ask him or her, "How are you? What happened?" And it's really hard to start.
So, six words, it's an ice breaker. You take a "6 Word Memoir" like, "Look how big you have gotten." You know, your heart just fills with empathy, it says so much. And it really works, just a six-word format.
HARRIS: OK. So you devised the six-word format, but I'm sure the veterans who responded have said more than that to you. What's been the personal feedback from veterans beyond the six words?
SMITH: Well, it's really an amazing thing, to have a story-telling site where people share their words with you so sort of gracefully and engagingly. And you can tell a back-story on SmithMag.net.
So, there is a wonderful "6 Word Memoir," "I don't know who I am," by a veteran who served in the Green Zone named Jeffrey Kohler (ph). And he talked about looking in the mirror, reading his driver's license, "Jeffrey A. Kohler (ph)," and yet not knowing the person in the mirror, in that license, just sort of trying to figure out -- "I don't know who I am."
HARRIS: Yes. You've said your own "6 Word Memoir" would be, "Big hair, big heart, big hurry."
Explain that.
SMITH: Well, the hair is not as big as usual.
(LAUGHTER)
HARRIS: Yes.
SMITH: You know, like the 300,000 people who have submitted a "6 Word Memoir" to "SMITH" magazine, I, too, have written many six-word memoirs. And it's the essence of who you might be.
So, you know, I do have big hair; it's genetic. My heart is very big, and it's big for story-telling. And I'm in a big hurry because there's a lot of people who want to tell a lot of stories. And I hope in our little way, with six words and more at "SMITH" magazine, we're just helping people tell the story of their lives, getting them started, really.
HARRIS: Yes.
He's the editor of "SMITH" magazine. Larry Smith with us.
Larry, it's great to see you. Thanks for your time. What an amazing project. And it's great that you provided this platform for the veterans.
Glad we could share it on Veterans Day.
SMITH: Thank you so much, Tony.
HARRIS: Yes, it's my pleasure.
Here are six more words expressed a veteran coping with the horrors of war: "It's a hard road out of hell."
We take you now to Arlington National Cemetery. We expect to hear from the vice president shortly. The vice president, just moments ago, laying a wreath at the Tomb of the Unknowns. When the vice president begins his remarks, we will take you back to the amphitheater.
You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
(NEWSBREAK)
HARRIS: And relief in sight for 4,500 people aboard a crippled cruise ship. Carnival Splendor is expected to dock in San Diego soon. The cruise turned into a nightmare when the ship lost power earlier this week after a fire in the engine room.
Our Paul Vercammen joining us live now from San Diego.
And, Paul, as I look at this live shot here, it -- boy, it's close enough. The folks on board have to feel it's close enough. So close, and yet so far, seemingly.
PAUL VERCAMMEN, CNN PRODUCER: Well, Tony, your timing couldn't be better. As you look behind me, you can actually see the passengers on the ship. They're getting a hearty honk from probably a relative who's here in San Diego right now.
This is going to be difficult. You can see the tugboats, which have played such a critical role in getting the Splendor back to shore, are going to nudge it right into that dock. They're all lined up on the other side of the ship.
Here's the tough part, Tony. Because of the fire in the engine room which took out the main power, they do not have operating elevators, et cetera, or winches. So we're going to have to see what they do.
I guess they're going to try to lower the gangway. And by the way, they do not get any sympathy from U.S. Customs.
They still have to go through Customs over there on that dock when they land. Now, we understand from the Coast Guard that Customs is going to streamline the process and try to get these people through as fast as possible, but some 3,000 of them are going to have to leave the ship and go through Customs, Tony.
This is going to take quite a while. And most of them will take buses, which are starting to file in behind us, back to Long Beach, California. That's the port of origin.
And, of course, people flew in from all over the country to be part of this, so others will leave and, basically, they will be flown out of San Diego back to their hometowns, Tony. But we'll watch as they start to disembark. And how they disembark is going to be interesting.
HARRIS: Yes. Well, Paul, that tees up my question. What are they going to do? How are they ultimately going to ultimately get these folks off that ship?
VERCAMMEN: We're assuming they're going to try to go ahead and put the gangplank down. And as you know, it's sort of that crisscross switchback thing they usually do for the cruise ships. But just moving all these people in and around the ship has been an ordeal because of a lack of power and the elevators and whatnot.
HARRIS: Oh my.
VERCAMMEN: So, they've been through a lot and they'll go through more. I guess if you look in the background, you can see Coronado Island. On this Veterans Day, I think that this is rather appropriate.
The U.S. military played such a big role in helping these people out. Not only was their guardian angel with them, the Morgenthau -- that's a Coast Guard cutter -- the 18 crewmembers there sitting in -- Navy corpsmen on board watching them -- but, then, of course, the USS Ronald Reagan breaks off military maneuvers on basically a pre- deployment training mission, steams south, and goes ahead and dumps some 60 pallets of food and water on top of it.
And interestingly enough, the Reagan is stationed right behind the Carnival, as you can see, out there on north island Coronado. So everything is sort of coming full circle today, right now in San Diego -- Tony.
HARRIS: Hey, Paul, is anyone -- I'm trying to put myself in place of the folks who have been on that ship and are anxious to get off at this point. All right. You can see the dock. You're this close.
Is anyone giving you an estimate on time here as to how long it might take for the first passengers to get off of that ship? VERCAMMEN: Tony, estimates of time have been the most elusive part of this whole story. They were talking about midday today, but once they got these other tugboats involved, things started going a lot quicker.
And we're starting to hear some cheers behind us. I mean, I would imagine that if all goes well, it could be as soon as 15 minutes, perhaps, Tony. But they have got work to do.
HARRIS: Yes.
VERCAMMEN: I think the whooping and hollering that was going on below were some of the relatives.
You can see the passengers all lined up, though, never so happy to see shore. I can see one person crisscrossing their arms and waving, and just anxiously awaiting that moment, to leave this cramped vessel.
By the way, this is more than three football fields long. You can't really tell as the bow is pointed at us. But they can accommodate 3,000 guests.
The quarters, it's a cruise ship. Let's be honest, unless you have the luxury suite, these people have been sort of shoulder-to-shoulder, with each other for a long time. And as this cruise is supposed to go down, you head on down the coast of Mexico, and you have a shore stop every day. You get yourself a little R&R on land, and you don't get that feeling of being at sea for so long.
But obviously, thinks changed, and that didn't happen. And so here they come back to San Diego, and not Long Beach, after this harrowing ordeal -- Tony.
HARRIS: Well, it's all smiles now. It wasn't so funny a couple of days ago.
Paul, if you would, keep an eye on that. I know that you're going to want to talk to a lot of these folks when they disembark. But round up a couple of folks for us to talk to as well. We would appreciate that.
Paul Vercammen for us.
Man, that's an amazing scene behind you.
All right. Back to Arlington National Cemetery, where the vice president is attending the wreath-laying ceremony at the Tomb of the Unknowns. That was moments ago. He is at the amphitheater now of Arlington National Cemetery.
The vice president will be speaking shortly, and we will bring you his remarks live on this Veterans Day in moments, right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: So you are talking about, clicking on and posting about it, and we've got the best of the best, really -- Armistice, armed forces and Veterans Day. Curious about history, huh?
Plus, cruise ship Splendor's slow tug to shore. Did you see those pictures a moment ago?
DEREK DODGE, CNN CORRESPONDENT: Oh, yes.
HARRIS: That's going to be pretty exciting when those folks get off that ship. And the families are there.
DODGE: I can't imagine three days.
HARRIS: Derrick Dodge is here.
DODGE: Let's take a look at--
HARRIS: What's "Trending"?
(CROSSTALK)
DODGE: Worldwide trending topics on Twitter.
HARRIS: OK.
DODGE: We've got armed forces, Armistice, Veterans Day.
HARRIS: Right.
DODGE: It's basically a Twitter history lesson. So you know, there's a lot of silly conversations on Twitter at lot of times, but today you can actually learn something. So here Aaron Allison (ph), "On November 11th, 1918, fighting in World War I came to an end with the signing of an armistice between the Allies and Germany."
HARRIS: Yes. yes.
DODGE: So he's got his facts straight there, as well as Edmond Michael (ph) says, "The 11th hour, the 11th day, the 11th month, 1918. Happy Armistice Day." So a little Twitter history lesson there for you today on--
HARRIS: Terrific.
DODGE: -- Veterans Day. And while we're talking veterans, CNN.com/veterans is our special coverage of "Veterans in Focus," some really great stories about going off to war, coming back from war, including this one, I think everyone should probably take a look at, "Five ways to help a veteran today." This is CNN.com/veterans.
And while we're at CNN.com--
HARRIS: Yes.
DODGE: -- go to "News Pulse," where we can find out what are the stories that everyone is clicking on? They're clicking on the cruise ship.
HARRIS: Yes.
DODGE: Apparently, that is something that's resonating with everyone there.
HARRIS: So let's do this. I don't want to do that tease. Let's see the cruise ship once again. I mean, we're hearing estimates here that we could be anywhere -- well, we're certainly inside an hour, it seems to me, Derek, before we'll start to see some of those passengers disembark from that cruise ship. It's been a rough couple of days for them without power. And we are minutes away. So what we'll do is we'll keep an eye on this picture. Let's take a quick break here before we get back to Arlington National Cemetery and the vice president's remarks.
You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: Pretty good stuff, huh? You know, several stories are developing right now. Let's bring you a bit of a bird's eye view from our tower cam, the nation pausing to remember America's military veterans for their courage. A ceremony is currently under way at Arlington National Cemetery, Vice President Joe Biden and other dignitaries in attendance. We will take you there in just a moment.
Going, going, gone. In Denver, the flying saucer house made famous by Woody Allen in the movie "Sleeper" -- remember that? -- sold at a foreclosure auction for $1.5 million.
And three days stranded at sea -- one of the best pictures of the day, right? The crippled Carnival cruise ship Splendor is being delivered to a San Diego dock sooner than expected, actually. We are tracking its progress, and we will speak with passengers on board.
Seven-and-a-half million Americans can remember what it was like fighting in the Vietnam war. Today we honor them and remember the more than 58,000 U.S. troops who died in Vietnam, the longest war the U.S. has ever fought.
(COMMERCIAL BREAK)
HARRIS: I guess I've been watching this for six years or so, and this seems to be the latest that we've gone before we heard from either the president or the vice president. Weather looks great up there, though.
(CROSSTALK)
ROB MARCIANO, CNN METEOROLOGIST: -- as far as Veterans Day is concerned?
HARRIS: Yes. Yes, 75 degrees or so?
MARCIANO: Yes, it's been beautiful. So it's -- we can't beat that.
HARRIS: OK. MARCIANO: We're going to talk about weather in just a few minutes.
(COMMERCIAL BREAK)
HARRIS: Yes, so, honestly, we were talking just a moment ago in the break that -- we're in November now. And this looks like terrific weather because we've got -- we've got Arlington National Cemetery. The folks at home can't see it, but maybe we can split the camera. We've got it on the big monitor here. And it looks wonderful in D.C. today.
MARCIANO: Yes, bluebird skies.
HARRIS: Yes.
MARCIANO: I mean, it's just fantastic. You know, it'll be comfortable there, about 60 degrees.
HARRIS: About 60? OK.
MARCIANO: You know, just enough to -- if you care to throw on, you know, a fashionable jacket and--
HARRIS: Yes, yes.
MARCIANO: -- do that. And obviously, for our folks, men and women in uniform, they'll be comfortable, as well.
HARRIS: Yes. And we've been waiting for this moment, the vice president, remarks on this Veterans Day, Arlington National Cemetery.
(JOINED IN PROGRESS)
JOSEPH BIDEN, VICE PRESIDENT OF THE UNITED STATES: -- in uniform and now out of uniform, taking care of the millions of vets that have served this country so nobly. And Major General Horst (ph), thank you for your hospitality.
And, Roger, you spoke well.
Roger and I were kidding one another. He said, "My speech is in big print."
I said, "So is mine."
(LAUGHTER)
We -- we're of the same generation and the same era.
And to all the veteran service organizations, who -- some of whom I've had the honor of having breakfast with this morning in the White House, thank you. Thank you for your service, your vigilance and your constant voice on behalf of America's veterans.
And, Jim, thank you -- the master of ceremonies today. And our new superintendent, Patrick Hillinan, thank you very much for your -- for your hospitality and the great service you render to this nation.
And to Leader -- Leader Boehner, it's good to have you here today -- and soon-to-be Speaker of the House Boehner.
BIDEN: Congratulations.
(APPLAUSE)
And let me say at the outset here, I stood in this amphitheater in May to observe Memorial Day. I think I was talking to Secretary Gates when I said, "This is one of the truly great honors -- one of the great honors bestowed on me as vice president of the United States to be able to return here to this amphitheater on Veterans Day."
This slight November chill today contrasts with the 9l-degree heat we experienced on that sultry day in May. And as I -- it should remind us, in my view, that the heat we endured in May was nothing compared to the heat our veterans endured in World War II battling across sun- baked coral islands in the Pacific, and in some cases going for days without water.
Nothing -- nothing compared to the generation of Americans who waded through the rice paddies of the Mekong Delta in Vietnam. And nothing compared to the heat experienced when I visited our troops in Fallujah in the middle of the summer, showing me the inside of an MRAP vehicle that had just saved their lives from a roadside bomb. And when I -- when I saw, as I got out of that MRAP, a thermometer on a nearby wall, it was 115 degrees.
These kids do it every single day.
The chill in the air today is nothing compared to what our young men fought through in 25-below-zero temperatures in North Korea mountains pinned down by enemy fire on frozen ground 60 years ago. Nothing -- nothing compared to the snow and cold that hampered our forces in the Ardennes Forest 66 years ago. And nothing compared to what the 86th Brigade Combat Team or the 1st Battalion, 327th Infantry Regiment or the 101st Airborne Division experienced and is experiencing or will this summer -- this winter in the mountains of forward-operating bases in Afghanistan.
I've seen it first-hand.
I was with General David Rodriguez when a sudden snow squall forced our helicopter to land between two jagged peaks 9,000 feet above sea level on a road not much wider than the rotor blades of the helicopter. We landed where the 10th Mountain Division just earlier that month had climbed with 60-pound packs of gear or more to engage Al Qaida. It absolutely blew me away to realize what these kids continue to do -- and they're not kids: what these men and women continue to do.
Ladies and gentlemen, these are fierce warriors, engaged and engaging a fierce enemy on fierce terrain.
There's a section in John Steinbeck's "East of Eden" where Cyrus Trask describes to his son Adam what it means to be a soldier. And here's what he says. He said: "A soldier is the most holy of all humans because he is the most tested. A soldier must coldly learn to put himself in the way of losing his own life without going mad. If you could bring yourself to face, not shadows, but real death, described and recognizable by bullet or saber, arrow or lance, then you need never be afraid again."
BIDEN: I look out at all of you who served our nation, and all of you who have stood by their side and waited as they served, and I see the most tested among us, the most tested of all Americans. I also see the most honorable men and women, citizens who have never feared the future and are determined to build a better future to this day.
Collectively, the generation of soldiers, sailors and airmen, and Marines, who have served and sacrificed for us are the heart and soul, the very spine of this nation.
And as a nation we pause today to thank the more than 23 million surviving veterans who have so bravely and faithfully protected our freedom.
(END OF COVERAGE)
HARRIS: As we should on this Veterans Day. The vice president, Joe Biden, in remarks at Arlington National Cemetery.
Roger (ph), let's get a live shot of the cruise ship, the Carnival cruise ship Splendor, so close and yet -- oh, we've got activity. We've got activity. This looks like folks boarding the ship? Maybe we can put that on the big monitor so I can look at it with the people at home and in offices across the country. We understand that we're about an hour or so away from the passengers actually disembarking the cruise ship. We will keep an eye on this story for you, get the very latest for you. Our Paul Vercammen is there a in San Diego following the story for us. We're back in a moment.
You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: OK, very quickly, we want to get back to Derek Dodge, who is rocking the iPad and getting tweets in from folks, right?
DODGE: Yes, I was mining the Twitter-verse to find some people who are there on the scene. I found this reporter--
HARRIS: Well, when we say "the scene," we should talk -- explain to folks what we're talking about here. This is -- we can show the cruise ship now, and we are actually getting a couple of tweets from folks in the vicinity. And this is from a reporter who is in San Diego right now?
DODGE: Yes, with "The Union Tribune." HARRIS: OK.
DODGE: She says that a photographer with a high-power zoom says that the decks are crammed with people, but everyone's waving--
HARRIS: Nice, nice.
DODGE: -- so maybe they're in good spirits.
HARRIS: Good.
DODGE: She also says that they can hear an on-board announcer telling them that about one hour and 15 minutes before they disembark.
HARRIS: OK. So -- all right, that puts us past the -- just past the 1P Eastern hour.
DODGE: Now, one thing people might be wondering is, What is Carnival going to do for these stranded passengers?
HARRIS: Right. Right.
DODGE: So Carnival has been posting on--
HARRIS: Give them lots of things, right?
DODGE: -- their Facebook -- this is the Carnival Cruise Facebook page, where they say, "We've been working to make alternate flight arrangements for all guests and to coordinate ground transportation and local accommodations for those who may need it." Now, here's the kicker. "All guests will receive a full refund"--
HARRIS: Good.
DODGE: -- "reimbursement of transportation costs"--
HARRIS: Yes.
DODGE: -- "and a complimentary future cruise."
HARRIS: Yes. I need a full refund. I need pain and suffering. I need more! I need more, if I'm one of these passengers on this cruise.
All right, so what we're doing is, we're going to talk to our Paul Vercammen. He's going to grab us some folks as soon as they come off that cruise ship. But we need to get to a break as quickly as possible. We're back in a moment.
You're in the CNN NEWSROOM. Got to go!
(COMMERCIAL BREAK)
HARRIS: OK, here are some of the stories we're working on for the next hour of CNN NEWSROOM. Thousands of cruise ship passengers are getting close to kissing dry land after their vacation gone very, very wrong, stranded at sea, eating Spam every day -- I kind of like Spam. We will talk to passengers as they get off the ship. Don't need it every day.
And a new eBook on Amazon.com -- have you heard about this? -- has people threatening a boycott. It's called "The Pedophile's Guide to Love and Pleasure." Hear what the author is saying to defend it.
(COMMERCIAL BREAK)
HARRIS: As the G-20 summit opens in Seoul, Korea, the leaders of the world's largest economies are deeply split over the issue of currency and balancing trade. CNN's Stan Grant gives us a look at the emerging currency war.
(BEGIN VIDEOTAPE)
STAN GRANT, CNN CORRESPONDENT (voice-over): Currencies, the new economic battleground. According to some analysts, it has now gone to a whole new level.
DONG TAO, CREDIT SUISSE: This is not officially declared, but I do believe that the world is in a currency war.
GRANT: On one side, the Chinese renminbi. On the other, the United States dollar.
TAO: In the past, it's been one way, U.S. pushing China. And now we're going to see two-way arguments.
GRANT: And in any battle, words are weapons. The U.S. has accused China of manipulating its currency, keeping it low to boost exports and take American jobs. The U.S. has embarked on another round of so- called "quantitative easing," pumping an extra $600 billion into banks to stimulate lending. It lowers the value of the dollar. China looks at America's sluggish growth, financial woes and high unemployment and says, Don't blame us.
CUI TIANKAI, VICE MINISTER OF FOREIGN AFFAIRS: If they get cold, they cannot ask China to take the medicine because this will not cure their cold.
GRANT: In the middle, countries like Australia, staunch U.S. ally, but building its economy on the back of China growth. Australian foreign minister Kevin Rudd, recently in China, ever the diplomat.
KEVIN RUDD, AUSTRALIAN FOREIGN MINISTER: Well, I think, as they say in the classics, it takes two to tango. So these questions are not as simple as that.
GRANT: At stake is the very future of the world economy. Western countries are no longer the engines of growth. That belongs to emerging economies. According to the International Monetary Fund, China grew 10 times faster than the global average last year and contributed almost 50 percent of world domestic demand.
RUDD: Where would we be if China had not generated phenomenal economic growth in the last 18 months? I tell you where we'd be, in a lot of trouble.
GRANT: With the world's number one and two economies facing off, there are fears of a rise of protectionism, putting national interests above the world's. The answer ultimately is cooperation, not conflict. For the U.S-- .
TAO: The base for the U.S. to get the jobs of making shoes and socks back is long over. The U.S. salary needs to decrease by at least 80 percent before they become competitive.
GRANT: For China--
TAO: China should give its workers more salary increase, and that's going to create domestic demand in China, and that's where the global rebalancing should be coming from.
GRANT (on camera): A compromise easier said than done. The G-20 brings the two leaders head to head. "Forbes" magazine now rates Hu Jintao the most powerful man in the world, ahead of Barack Obama. That's two leaders, two countries, two economies often at opposite ends. Little wonder many are saying this meeting is the G-2 plus 18.
Stan Grant, CNN, Beijing.
(END VIDEOTAPE)
