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UN Security Council Holds Urgent Session to Discuss Sanctions Against Liby; A Rare Glimmer of Hope from the Nation's Capitol; Another Heated Day of Protests over Wisconsin's Budget Battle; Teachers Get Pink Slips in Providence, Rhode Island

Aired February 26, 2011 - 15:00   ET

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

FREDRICKA WHITFIELD, CNN HOST, CNN NEWSROOM: Hello. I'm Fredricka Whitfield at the CNN World Headquarters in Atlanta.

A quick check of our headlines right now.

The U.N. Security Council is holding an urgent session today to discuss sanctions against Libya. The government crackdown against anti-government protesters shows no signs of letting up.

And in New Zealand, rescuers in Christchurch recovered more bodies from the city's flattened buildings. The death toll from Tuesday's quake has now climbed to 145.

And then take a look at this video from northern California. Up to 2 feet of snow buried much of the state north and east of San Francisco. Thousands of people in Nevada City, California, are also without power now.

All right. Let's begin with a rare glimmer of hope from the nation's capitol. Congress may be nearing a compromise that could at least delay a government shutdown scheduled for next Friday. Democrats and Republicans have been fighting over a measure to fund government operations for the rest of the fiscal year.

Well, now they are discussing a temporary deal. Democrats would agree to some immediate cuts from President Obama's proposed 2012 budget and to cut earmarks right now. In return, Republicans would support a spending extension that would keep the government operating for another two weeks. If the temporary deal is approved, negotiations over a longer term agreement would continue.

It's another heated day of, and that's where we find our Ted Rowlands, where it is still snowy and cold, but that's not stopping protesters there.

Ted.

TED ROWLANDS, CNN CORRESPONDENT: No. Tens of thousands of people, Fredricka, inside and outside the capitol. In fact, the crowds this week are larger than they are last week. And those crowds were estimated to be about 70,000 people. It really is amazing.

Of course, at issue here is the collective bargaining part of Governor Walker's bill. There seems to be no budging on it. He says he won't give. Those 14 Democratic senators, they remain in the state of Illinois, they say they're not going to give up. A lot of protesters have a lot of very passionate opinions. Here's one of them.

Bruce Lyon, Bruce, what about the fact that Scott Walker was elected, fair and square, in November and said he was going to do some drastic things to fix the budget here?

BRUCE LYON: Well, fair and square, there was a lot of money spent, a significant donation from the Koch brothers. He never said he would break up the unions. The union agreed to the cuts that he proposed. They did not go along with having the union broken up. They said, we'll agree, but do not stamp us anywhere else.

ROWLANDS: All right. That's one of the many opinions out here, Fredricka, but basically, it's coming down to this game of chicken between Walker and the Democrats that are in Illinois, and at this point, there doesn't seem to be any movement, either way. We'll see as we get into next week, Tuesday, Wednesday, in there, when the deadline to refinance some bond money comes up, whether or not one of these sides will flinch, but right now thousands of people are out here. The governor, not budging, and those 14 senators are still in Illinois.

WHITFIELD: All right. Ted Rowlands, thank you so much, in Madison, Wisconsin. So like Wisconsin in other states with budget shortfalls, educators are increasingly the prime target of cuts. That led to stunning news for teachers in Providence, Rhode Island. They are losing their jobs. Our Mary Snow looks at what prompted Providence to take this dramatic step.

(BEGIN VIDEO CLIP)

UNIDENTIFED FEMALE: Aye.

UNIDENTIFED FEMALE: Aye.

UNIDENTIFED FEMALE: Come on, Julian!

UNIDENTIFIED MALE: Aye.

MARY SNOW, CNN CORRESPONDENT (voice over): And with that, the Providence, Rhode Island, school board voted to fire nearly all of its 2,000 teachers at the end of the school year. Not all of them will ultimately lose their jobs, but that didn't soften the blow.

UNIDENTIFED FEMALE: I am heartbroken. I can't tell you how much this hurts.

UNIDENTIFED FEMALE: I feel numb. I almost feel like I need to mourn, like the death of innocence or -- it's just surreal. There's just no justifying this.

SNOW: City officials say state law forced them to make the drastic move, since teachers must be notified of layoffs by March 1st. The Providence school system faces a projected deficit of $40 million, says Mayor Angel Taveras. MAYOR ANGEL TAVERAS, (D) PROVIDENCE, RHODE ISLAND: We need to make cuts; we don't know exactly the extent of the cuts yet, so therefore we thought it most prudent to give the notices to all the teachers to maintain the maximum amount of flexibility to make sure we can balance our budget for the next financial year.

SNOW: The head of the teachers union in Providence blasted the move as a political one.

STEVEN SMITH, PRESIDENT, PROVIDENCE TEACHERS UNION: This sounds very much like what's going on in Wisconsin, Ohio, and Indiana, where lawmakers want to the get rid of collective bargaining and remove the voice of workers.

SNOW: And while the mass firing in Providence is apparently unique, deep cuts in education are not as stimulus money dries up. At least 16 states so far have announced education cuts. Los Angeles is considering slashing 7,300 personnel. New York City is proposing to layoff 4,700 teachers. And Detroit is looking at closing 70 schools that's half of the district.

In providence, the fact that teachers were given termination and not layoff notices was significant. In layoff notices teachers are rehired by seniority. Now school officials have more of a say in who stays.

Mary Snow, CNN, New York.

(END VIDEO CLIP)

WHITFIELD: We're also following developments at the United Nations. Diplomats have said called to an urgent session. At issue, possible sanctions against Moammar Gadhafi's regime in Libya. Members of the Security Council have been meeting behind closed doors for the past couple of hours now. We understand a draft resolution is being debated. Our senior U.N. correspondent, Richard Roth, is there, monitoring all of it. First, Richard, what is in that resolution?

RICHARD ROTH, CNN Sr. U.N. CORRESPONDENT: Well, it's an urgent meeting, but you've still got to eat and there's a bit of a lunch break for an hour here at the Security Council. They've been in there for a few hours. The Security Council resolution imposes an arms embargo, acid freeze, and goes after the Gadhafi family, the high leadership there. But Gadhafi has survived these types of sanctions before, many years of sanctions imposed on him after the Lockerbie bombing over Lockerbie, Scotland. So these sanctions, they're a bit hung up on -- there's some technical wording or wording with big implications, depending on your viewpoint, regarding a possible referral of anyone accused of attacks on the Libyan people to be referred to the International Criminal Court for potential investigation and prosecution.

Plus, because there's a desire to get aid in quickly to the people there on a humanitarian basis, there's some wording which talks about using all necessary means to get that aid in. Some people on the Security Council are concerned that that might open the door to military action. Others say, no, don't look at it that way. So this is very typical in how they go over lawyers, ambassadors, diplomats, line by line, to approve a resolution, which stands for decades, sometimes, and is the basis for international law. No timing, yet, for a vote.

Fredricka.

WHITFIELD: All right, Richard Roth thanks so much, at the U.N.

All right. Before you send in your taxes, are you sure that you can avoid an audit this go-round? We can actually help, at least the Dolan's can, when we come right back.

(COMMERCIAL BREAK)

WHITFIELD: All right. We're talking your money again. This time, this is the season you're starting to get your taxes prepared. Well, here's some advice from the dynamic financial duo, Ken and Daria Dolan, who are with me now, instead of West Palm, they're right here in hot Atlanta.

KEN DOLAN, PERSONAL FINANCE EXPERT: Who would want to be in beautiful Florida?

WHITFIELD: Especially this time of year.

K. DOLAN: All right, Fred, this may be audit-proofing your return for the slightly paranoid. There are some things that we're going to talk about in the very few minutes --

WHITFIELD: And isn't everybody paranoid? Aren't you always worried you didn't do it right?

K. DOLAN: When you go to the mailbox, and say, excuse me, Fredricka, can we come by and talk with you please, with a big eagle from the IRS.

WHITFIELD: I would say no. You yes.

DARIA DOLAN, PERSONAL FINANCE EXPERT: The fact of the matter is, a lot of people don't take everything they're entitled to. Particular people who have home offices that they legitimately use --

K. DOLAN: Medical expenses.

D. DOLAN: Because they're afraid, oh, if I do take that, they're going to audit me.

WHITFIELD: It's got to be a certain percentage --

D. DOLAN: What we're saying to you, take every last cent that you're entitled to, because you're paying more than you need to. And that's just foolish. And we are going to show you how to stay out of trouble.

WHITFIELD: So here's some of the things you need to do. For starters, you say, keep a log. Be good bookkeepers about what you're including in your tax preparation. K. DOLAN: Especially on things that are sensitive to the IRS. Daria just said home office deduction, medical expenses, and travel and entertainment. Yikes. So you want to, number one, keep a log. You say, well I can do that.

D. DOLAN: Then, once a month, take that log to a notary public.

K. DOLAN: Call your banker.

WHITFIELD: Oh, this is serious homework.

D. DOLAN: Well, it's just your protection and it is a way to avoid being audited.

Get it notarized, every single month. Because if not, the IRS could, if they decide to audit you say, well, you just slapped this together because you knew you were being audited. No, it's been notarized every single month.

K. DOLAN: It's not like you have to drive 100 miles to a notary public.

WHITFIELD: And many banks do it for free.

And then you say create an affidavit.

D. DOLAN: Yes.

WHITFIELD: This is really intimidating information.

K. DOLAN: Yes. But do you ever think intimidation when the IRS is involved?

WHITFIELD: Well, yes.

K. DOLAN: OK. Don't be too quick. All we're just saying is, with a notary public or a sworn affidavit saying, what I'm saying to you is true. That's all a sworn affidavit is. The last one is a form, its right here, not many people know about it, it's called Form 82-75. It's called a Disclosure Statement. And if you fill this out --

D. DOLAN: Hold it up. Maybe they can see --

K. DOLAN: I don't know if you can see it or not. And it basically says, here's all the deductions that you may question, and here's the documentation that I have. You can call 1-800-tax form or get it online at irs.gov.

D. DOLAN: Because look at it this way if you're an IRS person and you want to audit a tax return, if you've got one tax return with this and one with nothing, which one do you think you're going to call for an audit? The one with nothing. Because this one, there's a 90 percent chance that there's nothing to be changed.

K. DOLAN: A very good website, taxhelponline.com is very good. Dan Pillar specializes at taxhelponline.com. WHITFIELD: I love this advice, but say we don't adhere to all of those things; you need to hang on to your receipts, your documentation -- is it seven years or is that changing?

D. DOLAN: No, no, seven years is usually for bad credit.

K. DOLAN: Three years. Six years if you have underestimated your income by 25 percent. Fraud, no statute.

D. DOLAN: There's no statute of limitation on fraud. But generally speaking, after three years, you can shred all those documents.

K. DOLAN: Maybe before tax, Fred, we'll talk about the things you can throw away and the things you should save.

WHITFIELD: Oh that is good. Because I know there's been plenty of times when someone has asked me to produce a receipt or something --

K. DOLAN: Where's that shoe box?

D. DOLAN: My favorite was we did a radio interview on tax night from the New York central post office, in Manhattan, they put out tables and chairs and there were people literally doing taxes up until midnight out of shoe boxes.

K. DOLAN: Daria went up to a guy with a mic and said, how you doing, and he said, get away from me.

WHITFIELD: People a little tense this time of year. Ken and Daria Dolan, always good to see you. Thanks so much.

K. DOLAN: Thanks Fred.

D. DOLAN: Thanks Fred.

WHITFIELD: Thanks for making us smarter about our money all day long. Of course the Dolan's have much more financial advice. This is really just the tip of the iceberg. Go to their website including the truth about some debt relief offers, go to www.Dolans.com. Good advice. Thanks so much.

K. DOLAN: Thanks, Fred.

WHITFIELD: High fashion, ageless beauty, Iman is a bona fide international superstar, but it didn't come easy.

(BEGIN VIDEO CLIP)

IMAN, CEO, IMAN COSMETICS: I was embraced, my race was not embraced. And there was a conflict with me about the two.

(END VIDEO CLIP)

WHITFIELD: Navigating the high stake world of high fashion, culture, and race. My face-to-face interview with Iman, next.

(COMMERCIAL BREAK)

WHITFIELD: All right. Time now to go cross-country and check the stories our affiliates are covering. Firefighters in Conyers, Georgia, rescued a toddler trapped inside a bank vault. The 14-month-old girl is going to be OK. She was inside the bank late yesterday with her mother and grandmother, who actually works at that bank, and the toddler wandered off and then right into the vault. The vault, which has a timed lock, then closed.

And then look at this. A woman lost control of her minivan and crashed into a coffee shop in Cohasset, Massachusetts. Almost everything inside the coffee shop is damaged, but no one was hurt. Police said it appears to be a complete accident and the driver will not be getting a ticket.

All right, when you hear the name Iman, you think, drop dead gorgeous, fashion magazine and catwalk model, the brain child of Iman Cosmetics and the sharp-tongued co-host alongside designer Isaac Mizrahi on the reality TV hit "The Fashion Show."

And don't forget this distinction, agent of change. This, beginning in the early '70s, when she was the tender age of just 18, a new arrival to the United States from her adopted home of Kenya, and wise beyond her years, caught in a clash involving beauty, culture, and race. Face to face with Iman.

(BEGIN VIDEO CLIP)

WHITFIELD (voice over): You have lots of acts in your life.

IMAN: I do.

WHITFIELD: So part of that, if you want to call it, was that part of your first act, then, you know, making your way to the United States, making that first dent or impression in the fashion world, and while your dad read about you in "Newsweek" and saw, this is what my daughter is doing, you also realized that you weren't completely embraced right away, and that had to be hard.

IMAN: I was embraced. My race was not embraced. And there was a conflict with me about the two.

WHITFIELD: Because doesn't that also become one and the same?

IMAN: Well, yes. The weirdness of it is because they would say, but you're not like them top which to me, I mean, mind you, I think politically. And I thought the whole thing was the politics of beauty and the politics of fashion. There is a politics to it. So I couldn't understand, what do they mean, I'm not like them. And mind you, I have never really -- and people find this weird when I say, I've never considered when I came to America, I've never thought as myself as a black woman. I come from a black country. There was no reason for me to think otherwise. I didn't need to have that statement or to own it or all that.

I was born that way and I will live that way all my life. So there was no other way. So when I came here is the first time I heard people describe me, I'm a black model. I couldn't understand it. Why would they have to say "black"? I am black, but what's the distinction here? And I've learn what had the distinction is.

WHITFIELD: It's interesting, because you write in your book that white magazines called you exotic, black magazines considered you not ethnic enough. In fact, "Essence" Magazine, Marcia Ann Gillespie at the time, went as for a as saying in a 1976 article that you were a white woman dipped in chocolate. That had to hurt, a. And b, did you even understand what that meant, and what she was saying?

IMAN: Yes, I understood it and it hurt, but most importantly, I was furious. So everybody, every newspaper, called me to answer, to retaliate. And for 18 years -- I was like 18, 19 years old; it was interesting to me that I would even think of it that I would not retaliate. But you know what? I'm going to go and talk to Marcia Gillespie myself.

WHITFIELD: And what happened in that conversation?

IMAN: She said, I apologize, but I needed to make a statement of why do we have all these black models, American black models, in this country, who are not being used, and they needed to have somebody from Africa. And I do understand, politically, that. And that's why I did not retaliate.

WHITFIELD: Because at the time, black panther movement was strong, and there were people who were saying, wait a minute, there are beautiful black women right here in this country. Why did anyone in the fashion industry have to reach all the way to Africa in order to find a representation of beauty, of black beauty?

IMAN: Yes. Which, it is very legitimate. Very legitimate and I understood it.

WHITFIELD: Did you understand it right away?

IMAN: Absolutely, when I talked to Marcia Gillespie, she explained it to me, the reason that she was using me as a scapegoat, to make her point. And I really understood it very well, because that's what I said. White magazines thought of me as exotic. I was not a human being to them, I was an exotic. It's like they call Asians, oriental. And I said, oriental is a carpet, OK.

So I understand it, because I am a political person. And I understand underlying issues without everybody taking it personally, things. And I was a big girl that I knew I can take care of myself, but the issue that is bigger than me was the race issue in this country. We were not paid; the black models were not paid the same amount of money when I came here as white models. And I said, I don't have to do this. I really don't have to do this.

WHITFIELD: Who did you say that to?

IMAN: To my agent. I said, unless you're going to get me the same amount of money, you know what, I've got my return ticket, I can go home. You see, I didn't do, by all means necessary, anything that was required of me. I was going only to do it my way.

WHITFIELD: But what was that in you that said, I can be this agent of change, and even though I'm a novice at this, and I am in a place that is unfamiliar, how is it that you mustered that courage to make demands and especially in an industry that was saying, we're the ones in charge, not you.

IMAN: My mom. My mom raised me to always know my worth. Always. She said, if you settle for less, I will always get less. I've carried that with me. I've always known my worth. I'm the first person who in any business, whether in fashion or beauty or anything, that I will say, no more than I'll say yes. You know, there is a line that I draw and nobody crosses over. And once people know that, there is no point of negotiation.

WHITFIELD: Do you think you almost made people fearful of you? Wait a minute, she means business!

IMAN: No, I do it very nicely. Because I say, I do give you service the same girl is give you, so I don't understand. But also, what you do to be irreplaceable in an industry like this, is that you become better than anybody else. So you become irreplaceable to them. So you can't be just acting like a diva and not bring anything to the table. So it's like, I made them understand that they need me more than I need them.

(END VIDEO CLIP)

WHITFIELD: And she brings a lot to the table. This hour, more face to face with Iman. Don't you wonder how this 55-year-old wise, intelligent visionary does it all and looks so good doing all of that? Iman, face to face on her beauty routine.

And check out my blog, CNN.com/fredricka for more of the interview face to face with Iman.

All right. If you want to be a high school sports star, you have to pay the price, right? But can sometimes the price be too high?

(COMMERCIAL BREAK)

WHITFIELD: All right. A look now at how youth sports can consume a family, both in time and money.

But first, a look at today's top stories.

Providence, Rhode Island, becomes the city of pink slips. Every single teacher in the public school system there will be getting one. Providence, like so many cities, is struggling with budget issues and must cut a $40 million deficit in the school district by next year. The teachers are being told they can reapply for available jobs, but there's no guarantee that they will actually be rehired.

And it's cold in Wisconsin, where tens of thousands of demonstrators are gathering again at the state's capital in Madison. They're protesting the governor's plan to limit collective bargaining.

And there are new signs a compromise is in the works to avoid a federal government shutdown. Senate Democrats tentatively approved a Republican plan to cut $4 billion in federal spending. The proposal would keep the government running for two weeks past the March 4th deadline while negotiates continue.

All right. When schoolchildren participate in sports, their families are often on the team as well. Kid athletes can spend hours practicing and competing. The families frequently spend thousands of dollars on equipment training and travel, so how much is too much?

As part of our "In Your House" series, CNN's Julie Peterson looked at one young gymnast.

(BEGIN VIDEOTAPE)

JULIE PETERSON, CNN CORRESPONDENT (voice-over): Eleven-year-old Sam Roscigno twists, stretches, and bounces, 12 hours every week. His sport of choice, gymnastics.

SAM ROSCIGNO, GYMNAST: I like to do risky things with my body in front of an audience.

PETERSON: Sam and his family live in Ohio, near one of the largest universities in the country, Ohio State.

SAM ROSCIGNO: We practice in the same training facility as the college gymnasts.

PETERSON (on camera): Well, that has got to be awesome.

SAM ROSCIGNO: It's pretty cool.

PETERSON (voice-over): This week, Sam and his mom, Susan, are leaving the rest of the family behind, driving seven hours to Chicago for one of the biggest boy's gymnastics competitions in the U.S., the Windy City Gymnastics Meet.

SUSAN ROSCIGNO, SAM'S MOTHER: We did one in Schaumburg, Illinois, in December. And we have this one, the Windy City, now. And then we go to Tampa in two weeks. And then two in town in February.

PETERSON: Susan says they spend almost $5,000 every year on training, travel, and uniforms.

SUSAN ROSCIGNO: I'd like to come get my car at about 11:25.

PETERSON: She also takes time off from her teaching job to drive Sam to his meets. They make their own food and they share a hotel room with friends to save money. This trip has been planned for months, all for a one-day competition.

To compete at a higher level, Susan says they have no choice but to travel. SUSAN ROSCIGNO: There are only, like, three meets in central Ohio, so for us to go to any meets besides those of any level of competition, we have to travel.

PETERSON: It's a short drive from the hotel to the meet, where it costs money, even for parents, to get in the door.

UNIDENTIFIED MALE: For one adult, it's $10.

PETERSON: It's warm-up time for Sam and his team.

UNIDENTIFIED MALE: I really want you guys to be very focused. There's obviously a lot of people here. But I want us to do our best and have fun.

PETERSON: All the practice and training leads up to six events.

SAM ROSCIGNO: The events are rings, high bar, vault, floor, P-bars, and pommel horse.

PETERSON: This meet goes well for Sam, he finishes eighth all around for his age and skill level. His mother says it's not just about the competition.

SUSAN ROSCIGNO: It's a me-and-him thing. Sam and I do this together. Even though it's time away from the rest of the family, it's something that we can do together, and that will always be a part of our relationship.

PETERSON: But she admits there are drawbacks.

SUSAN ROSCIGNO: Gymnastics is not a real popular sport. It's like all the boys that play football, play football with the kids in the neighborhood, (INAUDIBLE) play tee-ball, or soccer, play with kids in the neighborhood. But because there are only a couple of kids that do men's gymnastics, you have to travel outside of your neighborhood to do that. And so he's kind of cut-off from some of the neighborhood sports stuff.

PETERSON: But Sam says he's happy, even with the heavy time commitment required for competitive gymnastics. And he's keeping up his grades with his family behind him.

SAM ROSCIGNO: I like it a lot, because, yes, I mean, it takes a lot of work, but after you're done at a competition, it feels really cool.

SUSAN ROSCIGNO: I'm proud. I'm proud of Sam. He did a good job.

PETERSON: Julie Peterson, CNN.

(END VIDEOTAPE)

WHITFIELD: And in a matter of minutes, we're going to talk to someone who studies youth sports and the impact on the individual and the family. We'll talk about the competition and the family's commitment as well, next. (COMMERCIAL BREAK)

WHITFIELD: Her name is Patricia Sawo, and she's from Kenya, and she used to believe that HIV and AIDS are punishments from God. But an unexpected revelation about her own health not only made her re- evaluate her beliefs, but also launch a movement to end the stigma of HIV/AIDS. It's quite a story and that's why she is this week's "CNN Hero."

(BEGIN VIDEOTAPE)

PATRICIA SAWO, COMMUNITY CRUSADER: Back in 1990s, I believed that AIDS was a punishment from God. When I personally tested HIV- positive, it was, oh, my God, how could this happen to me? I fasted and prayed for years, hoping that I would be healed. When I went public, I lost my job. My husband lost his job. The landlord wanted us out of his house. The stigma was terrible. I realized that I'd been wrong.

My name is Patricia Sawo. My mission is to change people's attitudes about HIV.

All that you need is accurate, correct information.

As church leaders we need to shepherd the people. HIV is not a moral issue, it is a virus. I do a lot of counseling. When I'm helping somebody else who is HIV-positive, I want them to know that you can rise above this.

The 48 children at the center, most of them saw their parents dying of AIDS. My HIV status brings some kind of a bond. I provide that motherly love and all their basic needs. HIV, it's making me a better person. We want to be there for people. So if we have it, we share it out.

It's what I want to do, because it's what I'm meant to do. God has his own ways of healing, so for me, I'm healed.

(END VIDEOTAPE)

WHITFIELD: All of this year's CNN heroes are chosen from people you tell us about. So to nominate someone who is making a big difference in your community, go to cnnheroes.com.

(COMMERCIAL BREAK)

WHITFIELD: A look at our top stories right now. The United Nations is worried about the escalating unrest in Libya. The Security Council is considering new sanctions against Libya's Moammar Gadhafi. Among the items in a new draft resolution, an arms embargo, freezing of Gadhafi's assets, and a travel ban. Libya's regime could also face charges from an International Criminal Court.

And the death toll from this week's devastating earthquake in New Zealand is climbing. At least 145 people are now confirmed dead. More than 200 others are still missing. Hope is fading that more survivors will be found. And we're getting new images of the fissures and the cracks in the earth there created by this 6.3 magnitude quake. Pretty remarkable.

And cleanup crews are still finding tar balls on the beaches of Mississippi's barrier islands from the BP oil spill, but they're taking a break from this cleaning for nesting season. Wildlife experts say nesting sea turtles and shore birds don't need the distraction of workers and the equipment there. The cleaning shutdown will last from March to mid-August. A very long nesting season.

All right. Back overseas now. Libya's turmoil is not a completely internal affair. If you've put gas in your car in the past few days, you know that the uprising in Libya has impacted you as well. Ralitsa Vassileva, from CNN International, is here to talk about Libya and the ramifications.

And everyone is feeling it here. If they feel like, oh, it's way over there, Ralitsa, then you feel it right here, at home.

RALITSA VASSILEVA, CNN INTERNATIONAL CORRESPONDENT: Yes. As you said, when you go to fill up your car with gas, oil prices are spiking. And it's very interesting, because Libya contributes less than 2 percent to the global output on oil.

WHITFIELD: So why is there such a big impact?

VASSILEVA: The impact is psychological, as usual, with the markets. You know, they work on fears. They are fearful that what is happening in Libya, which is an oil producer, could spread to bigger oil producers. For example...

WHITFIELD: Like Saudi Arabia.

VASSILEVA: ... like Saudi Arabia. That's right. And that's what's causing the spike. It's the perception, not actually the reality. For example, only 5 percent of Libya's oil goes to the United States.

Europe is more exposed, Italy in particular, more than 30 percent of Libya's gas goes to Italy. But it is the perception that there's instability, it could spread, it could form disruptions around the world. And that's what's driving this spike in prices.

WHITFIELD: So it's almost as if -- I mean, the prices that we're seeing right now that have spiked over the last few days, that gas that we're pumping has nothing to do with the supplies in Libya.

VASSILEVA: No. And...

WHITFIELD: It's the anticipation of...

VASSILEVA: Exactly, exactly.

WHITFIELD: ... how the oil industry might be impacted.

VASSILEVA: Yes. And even Saudi Arabia boosted its production yesterday. The International Energy Agency, which specifically makes sure that there's extra capacity, says, don't worry, we have it covered, you know, we're going to produce more, this is just a tiny amount.

But, you see, the markets work on perceptions.

WHITFIELD: Wow. So you have to wonder how long this will go. Because, obviously, unresolved in Libya. We know the U.N. Security Council meeting today. Don't know what kind of resolution will come about. And if there is a vote of some sort of resolution, if it would make an impact at all on Libya, Moammar Gadhafi is really in isolation on his own, by his choosing.

He doesn't have a whole lot of friends, and he's all right with that. This is not a popularity contest for him.

VASSILEVA: No. And it has never been a popularity contest. He has survived sanctions before, from the '90s to the early 2000s. So he knows that -- and he believes that he can do it. And he has always been a pariah until he mended fences with the West and things were OK, until these protests.

WHITFIELD: Moammar Gadhafi is also blaming -- I guess, pointing the finger at what is at the root of these protests taking place. He's blaming the international community. He's also, you know, blaming the media, the Western influence.

VASSILEVA: Exactly, exactly.

WHITFIELD: As well as people who, in his view, are looking to simply disrupt, and perhaps even take over.

VASSILEVA: And we heard this with Egypt also. The Mubarak regime kept telling people, listen only to state TV, there are outside forces that are trying to manipulate you, they want to destroy our country.

And we're hearing something similar, although the Mubarak regime never blamed al Qaeda. We are hearing this for the first time. The Libyan leader and his son, they're blaming al Qaeda. The Libyan leader even wanted to play some sound on state TV --Libyan TV played a comment from Gadhafi, in which he blames outside forces, al Qaeda manipulating, drugging the youths of Libya.

Let's take a listen.

(BEGIN VIDEO CLIP)

SAIF GADHAFI, SON OF MOAMMAR GADHAFI (through translator): Mothers are sending their children to schools, young persons are offered pills -- hallucination pills at night. They are offered those hallucination pills. And after taking the pills, they tell them, OK, you have to go and attack.

(END VIDEO CLIP)

WHITFIELD: Very bizarre, but, that has been the expectation from Gadhafi, for a very long time, that he is one that has been known to be very eccentric, and he continues to be so, even as he continues to be defiant. Ralitsa Vassileva, thanks so much, appreciate it, from CNN International.

VASSILEVA: You're welcome.

WHITFIELD: All right. Something you don't see every day, snow flurries in the San Francisco area! Take a look. We'll have a complete forecast when we come right back.

(COMMERCIAL BREAK)

WHITFIELD: All right. A pretty wild night across the Delaware River Valley, and now crews are cleaning up the mess. Take a look. Damaging winds toppled trees and power lines in three states. A massive tree, about 100 feet tall, came crashing down on a house near Philadelphia. The home was heavily damaged. Fortunately, no one was home when it happened.

WHITFIELD: And the West Coast is getting another dose of winter weather. Can you believe, snow flurries in San Francisco?

(WEATHER REPORT)

WHITFIELD: All right. Securing the homeland, strengthening the borders, it's a big issue to tackle. Well, this video from inside one of the Mexico's drug tunnels earlier this month, our own Rafael Romo inside the tunnel. Well, now the Obama administration is in the process of changing the way it measures the security of the nation's borders.

But why, and is it a good idea? CNN's Jeanne Meserve has details.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): In report after report, the Border Patrol has said its top goal is gaining operational control of the nation's borders, meaning law enforcement can detect and respond to illegal activity.

With $3 billion spent on just the southern border last year, how are they doing? A recent GAO report says 44 percent of the southern border and only 2 percent of the northern border meet the definition.

Now Homeland Security has decided it will measure border security a different way that better reflects the impact of new technology. Operational control, once the holy grail of border security, is being scrapped.

JANET NAPOLITANO, HOMELAND SECURITY SECRETARY: That is a very narrow term of art in Border Patrol lingo and doesn't -- and should not be construed as kind of an overall assessment of what's happening at the border.

MESERVE: For the time being, DHS will measure its success with numbers on apprehensions and seizures on weapons and currency. RICHARD STANA, GOVERNMENT ACCOUNTABILITY OFFICE: But it doesn't give you a batting average, it doesn't tell you how much they have caught or apprehended versus the universe out there, and that's why they're limited.

MESERVE (on camera): It's a gap.

STANA: There is a gap right now. And until that gap is closed, they're eliminating a measure which we thought was useful, and they're instituting measures that, frankly, aren't as useful.

MESERVE (voice-over): The GAO says ultimately DHS may come up with a system of gauging border security that is better than the old one, but a former official who helped formulate the operational control measurement says some residents of border states are concerned the new system could manipulate statistics to support a political agenda.

RONALD COBURN, NATIONAL DEPUTY CHIEF, U.S. BORDER PATROL (RET.): ... of justifying of moving away from resourcing the border for operational control and toward comprehensive immigration reform.

(END VIDEOTAPE)

WHITFIELD: In recent testimony, the head of the Border Patrol reiterated the administration's commitment to immigration reform. He also said the government should use its money and resources in areas that give the biggest return on investment, raising questions about whether securing the entire border is still the government's goal.

All right. She traded the catwalk for the board room. Former supermodel Iman makes it all look so easy and she still looks great. We find out what's in Iman's cosmetics bag when we talk face to face, next.

(COMMERCIAL BREAK)

WHITFIELD: Oh, it just doesn't seem fair, does it? Fifty-five years old, radiant, wise, intelligent, and a powerful brand. How does this woman, supermodel Iman, turned multimillion cosmetics and fashion business executive, do it all and look fabulous to boot? Iman face to face from her New York 7th Avenue office.

(BEGIN VIDEOTAPE)

WHITFIELD: So what are the mainstays, say, in your cosmetic bag? How do you look fabulous all the time, no matter what act in your life there is? What do you have with you at all times?

IMAN, CEO, IMAN COSMETICS: A skin kit is big because that is really something that nobody sees but yourself. In terms of cosmetics, 60 percent of my business is in foundation because I personally think I created the best foundation ever for women with skin of color. And that is still is what's in my bag, is my foundations are the ones that I believe in.

Color cosmetics, what you do for the outside world, skin care is what you do for yourself. Well, my mom always -- because, in Somalia, women don't wear makeup, but they're very religious about their skin care. So we were taught very young as girls to take care of our skin, and especially the sun is very harsh there so SPF -- anything that is SPF is really the way to go.

And I was always taught like brushing your teeth. Your mom says you brush your teeth in the morning and at night, there's no negotiation about that. That's exactly how our skin care was. You know, you moisturize, you cleanse, tone, whatever you have to do.

And so I've always -- she always said the skin that you take care of in your early years is the one you'll inherit when you're 50 and 60 and beyond. And so I've always been religious about my skin care. So -- and it doesn't have to be very expensive.

It's the constant taking care of it. And all the elements that go -- I mean, our products is -- our skin care is the first skin care for women with skin of color that has SPF. Everybody laughed at us when we said I wanted SPF. They said, why? Because, you know, I mean, the skin doesn't just -- I mean, the sun doesn't discriminate.

(END VIDEOTAPE)

WHITFIELD: You must hear more from Iman face to face. She could have stopped after 14 years of modeling, and instead she filled a need for women of color looking for cosmetics, that she just spoke of, that match their skin tone.

And from there, more enterprises. Next hour, face to face with Iman on branching out and back into fashion but in a very different, accessible way.

And check out my blog on cnn.com/fredricka for more of that interview, face to face with Iman.