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British Tuition Rates Triple; Global Economics Down And Out; Joe Paterno Announces Retirement; Sex Abuse Case Fallout At Penn State; Conservative Ballot Measures Defeated; $50,000 For Loyalty; Florida Water Supply; Well Water Can Make You Sick; Gitmo Hearing For USS Cole Suspect; Mississippians Reject Personhood Amendment; Ohioans Repeal Limiting Collective Bargaining and Allowing a Federal Health Care Mandate Opt Out; Senior Citizens Charged with Planning Attack on American Government; Iran Warns of Street Wars, Even on American Soil; Super Snow Storm Pounds Alaska; S.C. Boss Gives $50,000 Bonuses; Obama Cuts Spending Without Congress
Aired November 09, 2011 - 12:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: All right, two words sum up the U.S. and European financial situation this hour -- down and out. Take a look at that Dow. Blue chips sliding on a European debt crisis that seems to get worse every time we think it's getting better. Heading out are the beleaguered prime ministers of Greece, which is fully at the mercy of an EU bailout, and Italy, which is desperate to avoid one.
Both countries face drastic austerity measures which no one likes and which today sent thousands of young protesters into the streets of London. They are angry, to say the very least, about a tripling of British tuition rates to roughly $14,000 a year. Some 4,000 police have kept the march relatively peaceful and separate from the Occupy protest at St. Paul's Cathedral.
But I want to get back to New York now and my colleague, Christine Romans. So Christine, how bad is it on the U.S. and European markets?
CHRISTINE ROMANS, CNN BUSINESS CORREPONDENT: Well, you know, this is -- and you fold in those pictures out of London, and you can see that it's a world where there's not as much money as there used to be, right? And you have economies not growing as well as they once did and that's causing all sorts of problems as countries try to pay their bills and stock markets react as well. I mean, you had European stocks closing down on grave concerns about what's happening on the Euro zone and whether Italy will be able to pay its bills, and stresses that we're seeing in the Italian bond market.
When you talk about stocks, stocks are much smaller than the overall bond market. The bond market is where governments, companies go to borrow money to keep going. And the cost to borrow for governments -- governments in trouble has been rising. You've got that above seven percent now, 7.3 percent for Italy to borrow money. That's even with the European Central Bank buying Italian bonds, that's even with all the things that Europe's been trying to do to stabilize things. And that seven percent is seen as a dangerous signal, Fredricka, because when you've seen rates climb that high before, it's meant -- it's triggered a bailout -- having to bailout -- how can you bail out Italy? Italy is the third largest bond market in the world. It's also the third largest economy in Europe.
Look at Greece, for example, 27 percent of the interest rates on Greece bonds. Greece can barely even -- can't borrow money, quite frankly, right anymore because of its problems. Compare that with the U.S., though. The world is rushing into the U.S., Fredricka, for safety. The U.S. -- for short term -- for three months, the U.S. doesn't even have to give any interest to borrow money. I mean, think of that -- because of all the uncertainty in the world.
So, that's where we are here right now, incredibly uncertain moment for world markets, bond markets, and the stock markets are showing the nerviness because of that.
WHITFIELD: And so, why else does -- why does Wall Street even care about bond yields in Italy, which I understand did cross that important threshold?
ROMANS: Because if there needs to be a bailout for Italy, it's unclear how they're going to do that. This is an economy that is the third largest economy in Europe. This is an economy that -- with such huge ties to the French banks. The Euro zone, together, is the single largest destination for American exports.
So, if Europe falls into a recession because of a bond market crisis -- and this is the real fear, that there is some sort of a crisis here where you can't borrow money the way -- or it's very expensive to borrow money anymore. Then suddenly, you've got a European crisis, you've got banks on the ropes, and you've got a recession in Europe. And there's very little hope that the U.S. can keep -- stay in recovery mode if your biggest single customer is in a severe recession.
So, we need Europe to be healthy and we do not -- we cannot have a financial crisis in Europe -- a sovereign debt crisis in Europe for the U.S. to continue to grow here.
WHITFIELD: All right. Christine Romans in New York, thanks so much for that.
ROMANS: You're welcome.
WHITFIELD: All right. Other big stories that we're following this hour. Legendary Penn State head football coach Joe Paterno says he will retire at the end of the year. The announcement follows the arrest of one of his former coaches in an alleged child sex abuse scandal. Paterno was met by supporters and media outside his home last night. In a statement today Paterno says he is, quote, "absolutely devastated" in the developments in the case involving his ex-defensive coordinator, Jerry Sandusky.
Coming up in just a few minutes, I'll speak live with a Penn State student who knows Paterno personally. He's about to reveal what drove the coach to tears last night. Right now, however, let's head to Jason Carroll who just heard from some Penn State football players. So Jason, how are they reacting to Paterno resigning at the end of the season?
JASON CARROLL, CNN NATIONAL CORRESPONDENT: Yes, Fredricka, just heard from these players just about 20 minutes ago. Spent a little bit of time with them. Basically, all three of them telling me that they trust Paterno made the right decision for the team, for himself, and for the University.
So, they are putting their trust in him. They said they received a text to show up for a meeting at just about 11:00 a.m. They said, once Paterno showed up, he made his announcement. He said there were some 150 players there. He said literally turned around, lots of tears were flowing. He said Paterno was very emotional when he made his -- when he made his statement. Want you to take a listen to what one of the players told me just a few minutes ago.
(BEGIN VIDEOTAPE)
CARROLL: So, I want to start out with how the announcement came down from coach Paterno. Obviously, you guys received some sort of a text. Take it from there, What happened next?
DAKOTA ROYER, LINEBACKER, PENN STATE UNIVERSITY: We just got a text from the team saying that we had a meeting and we just all came in and then coach Joe just gave us his announcement that he's going to be retiring after this season.
CARROLL: What were some of the immediate reactions from some of the guys? How do you think the team took the news?
UNIDENTIFIED MALE: I mean, it was just pretty surreal, the whole thing you know. We kind of, you know, heard the rumors going around. We tried to put it to the side obviously, but I mean to, you know, hear him come out and say it, it really, you know, kind of just, you know, brought us down to earth to what was really happening and we're just trying to come together as a team.
(END VIDEOTAPE)
CARROLL: And Fredricka, I also asked those players whether they thought all of this criticism was being directed at Paterno when some of the criticism they felt as though also should have been directed at the president of the University of Penn State, Graham Spanier. As you know, there have been many calls for Spanier's resignation as well. Those students telling me -- they just basically said, look, we're going to try to focus on the team, we're going to try and focus on the game this weekend. But they are definitely, definitely sad to see Paterno go -- Fredricka.
WHITFIELD: So Jason, wasn't Paterno's contract to end at the end of this season? However, it's this cloud, this scandal, that makes his departure that much more difficult for so many?
CARROLL: That's exactly what it is. When you look at a man like Paterno who's a legend, not just here, but in the world of collegiate football, a man who spent 46 years here as head coach, the most winningest (ph) coach in history in terms of college football. You look at the standard that he set, not just in terms of football on the field, but off the field in terms of dealing with these players. This man had a stellar reputation up until this moment.
WHITFIELD: All right, Jason Carroll, thanks so much. Of course, we're going to also get more reaction from coach Paterno momentarily.
So, in what may be seen as a barometer for 2012, a pair of conservative statewide ballot measures defeated. Voters in Mississippi rejected a so-called personhood amendment that would have defined life as starting at conception. In Ohio, voters repealed a law that would have limited collective bargaining rights of public workers. And now western (ph) Arizona, the Republican author of the state's controversial immigration law was defeated by a fellow GOP candidate in a recall election.
And then finally, in Georgia, dozens of communities voted to allow the sale of liquor on Sundays. We'll talk more about the implications of the votes in Ohio and Mississippi with a Democratic and Republican strategist just ahead in "Fair Game."
All right, students rallying behind their beloved football coach despite calls for his resignation. Up next, how an alleged sex abuse scandal is shaking things up at Penn State, including a firsthand account of Joe Paterno's private, emotional moments over the past 24 hours.
But first, check out the U.S. Coast Guard in action right here. They're dropping off supplies for seven mariners who were stranded on a deserted Pacific island. They found the men just who days after they went missing with the help of the Royal Australian Navy. The Coast Guard Hercules airplane crew, you are today's "Rock Stars."
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WHITFIELD: All right, by now, you've probably heard the disturbing details of boys allegedly raped, sodomized and molested by a former Penn State football coach. The fallout of this is now reaching the top of the University's football program. We've learned legendary Penn State football coach Joe Paterno will retire at the end of this season. Paterno's decision comes as Penn State's Board of Trustees plans to convene a special committee on Friday to investigate the allegations against its former defensive coordinator Jerry Sandusky.
The board is reportedly outraged by the Grand Jury report that alleges Sandusky victimized eight boys, at least one as young as seven or eight years old. According to investigators, a ninth potential, but unconfirmed victim, has reached out to them. Sandusky has long maintained his innocence. He is out on $100,000 bond after being charged with 40 counts of various sex abuse charges.
The troubling allegations have many questioning whether Penn State's president, its legendary football coach, Joe Paterno, and others could have done more. In a statement, Paterno says, quote, "I'm absolutely devastated by the developments in this case. I grieve for the children and their families. I have come to work every day for the last 61 years with one clear goal in mind, to serve the best interests of this University and the young men who have been entrusted to my care." End quote. Paterno goes on to say this, quote, "That's why I've decided to announce my retirement effective at the end of this season. This is a tragedy. It is one of the great sorrow s of my life. With the benefit of hindsight, I wish I had done more." End quote.
This was the scene outside Paterno's home just last night. Hundreds of Penn State students rallying behind him hoping to save his job. T.J. Bard as the president of the undergraduate association is joining us now from University Park. So T.J., word clearly has gotten out that coach Paterno has decided to retire at the end of the season. What have people been saying on campus?
T.J. BARD, PRESIDENT, UNDERGRADUATE ASSOCIATION: I think students are shocked. They're very surprised at the announcement. I think a lot of students are heartbroken. We've heard stories of students leaving their classes in tears. Students coming together and really just reflecting on Paterno's legacy and career here at Penn State.
WHITFIELD: So T.J., students felt very confident that he would be able to survive this and he would not be stepping down?
BARD: I think students -- rumors obviously have been flying around, even prior to this scandal, of the day that Joe Paterno would announce his retirement. And I think a lot of students had expectations that potentially this could have been his last season. I think a lot of students are very surprised that he just stepped down under these circumstances. And I think that is really the heartbreaking part of all this.
WHITFIELD: We're looking at pictures right now, last night outside his home apparently a number of students were out there throwing their support to the coach. Were you there? Or did you have any fellow classmates who were there who could describe the scene?
BARD: Yes. I think it was one of a lot of pride, a lot of respect for Joe Paterno. I actually, myself, wasn't there, but I obviously was hearing a lot of reports from students who were there outside his front yard. I think it really meant a lot to the students that Joe Paterno came out and spoke to them, told them to really think about the victims and their families in this entire situation. I think that truly speaks to Joe Paterno's character in this entire situation.
WHITFIELD: How well did you know the coach and what were your thoughts about him -- or what are your thoughts about him?
BARD: Yes, I've interacted with the coach over the past two years in my career here at Penn State. He is one of the most phenomenal individuals I've met in my entire life. He's truly an inspiration to me and I think to this University as a whole. He's contributed so much not only to the football program but academics and, like I said, he's just meant so much to this University, and I really, really highly respect him.
WHITFIELD: OK. And the defense coordinator, Jerry Sandusky, did you have any interaction with him or did you know anybody who had any strong opinions, especially as a result of these charges?
BARD: I myself have never interacted with just Sandusky. I obviously have very strong opinions about the allegations. I think it is, for lack of a better term, very disgusting, the allegations. If these allegations are proven to be true, then obviously there needs to be some severe consequences.
WHITFIELD: All right. T.J. Bard, thanks so much for your time, I appreciate that.
$50,000, that's how much one small business is paying its employees to stay. How loyalty can really pay off.
But next, a Florida water supply tainted with a cancer-causing chemical. How famed legal clerk, Erin Brockovich, you know her, well, she's on the case, and she's joining us live with developments.
(COMMERCIAL BREAK)
WHITFIELD: It's been more than a decade since the world learned not to mess with Erin Brockovich.
(BEGIN VIDEO CLIP)
JULIA ROBERTS, ACTRESS, "ERIN BROCKOVICH": Believe it or not, I'm on the prowl for some water records.
UNIDENTIFIED MALE, ACTOR, "ERIN BROCKOVICH": You've come to the right place.
ROBERTS: I guess I did.
UNIDENTIFIED MALE: You just tell me what you want to look at and I'd be glad to dig them out for you.
ROBERTS: I wish I knew.
(END VIDEO CLIP)
WHITFIELD: But for the real Erin Brockovich, the case that inspired a blockbuster was just the beginning. The legal aide turned environmental crusader is constantly investigating ground water contamination cases from California, to Michigan, to Florida. She's also writing. Her new book is a novel, "Hot Water," which Publisher's Weekly calls an environmental thriller. Erin Brockovich joining me now from New York.
Good to see you, Erin.
ERIN BROCKOVICH, ENVIRONMENTAL ACTIVIST/AUTHOR: Hi. How are you? WHITFIELD: I'm doing pretty good.
BROCKOVICH: Good.
WHITFIELD: You're certainly doing your part to expose and clean up tainted well water. But as a public health issue, it really is under covered, wouldn't you say?
BROCKOVICH: It really is. You know, we don't realize the tens of millions of Americans that are on well water that have contamination. And oftentimes, unfortunately, an agency or a company can know. They've already mapped out a plume of where the contamination is or isn't, but nobody ever lets the community know what's happening. So it is something that, I hate to say, we continue to uncover on a daily basis.
WHITFIELD: So now you have zeroed in on a community of about 100 residences in central Florida. Deland, Florida.
BROCKOVICH: Yes.
WHITFIELD: Where the water, the well water, is contaminated. That is indisputable?
BROCKOVICH: That is indisputable. And Deland is just one of six communities down in Florida that has the dieldrin contamination, which has been a pesticide that isn't in use anymore, but it finds its way through the system and creeps into people's wells and they don't know that it's there. It doesn't have any particular color or smell or taste. And so unbeknownst to them, they have been drinking a poison for years. And it isn't until the community starts talking with each other and they all find out that they're having the same similar health issues or they're noting what appears to be too much cancer in their neighborhood.
WHITFIELD: So what's the focus of this fight? Is it, who is responsible for these contaminants or who will clean it up?
BROCKOVICH: Well, you know, I've been out here doing this now for 21 -- God, do I dare date myself -- 21 years. But I can see what's happening out here. I mean agencies, for a whole lot of reasons, and this is to place no blame, are absent. You know, litigation is available for us, but it can't be the solution to these issues because it takes five and 10 and 15 years and, in the meantime, people are still being poisoned.
What I think needs to happen is obviously more awareness, uncovering these issues, because if we don't look at them, find a source, we'll never begin to find a solution. And there are solutions out there for communities on wells and if they're contaminated, ways to help them and provide them clean water.
WHITFIELD: So now let's talk about your book, "Hot Water," and, you know, what was the impetus for that?
BROCKOVICH: Actually the people and all the cases that I'm seeing and all the people that are in and around nuclear facilities reporting them to me. I get tens of thousands of e-mails a month. And I've started to plot them on maps so we can at least look at what's happening. And just through their stories, and realizing people aren't that aware, they became the inspiration for this book. AJ Palladino is a character just like you and I, but she can aspire to make people aware of something and be protective of public health and safety.
So we call it a cause novel. She's an action hero. And I thought it would be a good way for people to read a book, know that this could be going on, close the book and think that they could become informed, aware and make a difference as well.
WHITFIELD: Is this a book that you see translated for the big screen as well?
BROCKOVICH: It's been optioned for a television series, yes.
WHITFIELD: All right. Very good.
BROCKOVICH: Not the big screen, but TV.
WHITFIELD: A screen nonetheless.
BROCKOVICH: Yes.
WHITFIELD: All right, Erin Brockovich, thanks so much.
BROCKOVICH: Thank you.
WHITFIELD: Congratulations on that and all the best in your continued efforts.
BROCKOVICH: Thank you. Thank you very much.
WHITFIELD: Thanks so much for you time.
All right, President Barack Obama stopped military tribunals at Guantanamo Bay, but his goal to shut down Gitmo failed. The controversial trial of the alleged al Qaeda mastermind behind the attack on the USS Cole and why today marks a huge milestone in the prison's future.
But first, on this day in 1965, lights out across the northeast and parts of Canada. A human era left more than 30 million people without power for up to 12 hours. That's this shame in history.
(COMMERCIAL BREAK)
WHITFIELD: He's the man the U.S. says killed 17 American sailors. Saudi born Abd al-Rahim Hussein Mohammed al-Nashiri faced a military hearing today at Guantanamo Bay. He's accused of being the brains behind the bombing of the USS Cole back in 2000. The hearing marks the resumption of Gitmo prosecution. Something President Obama said he would stop. Eugene Fidell, senior research scholar at Yale Law School, joins me now for today's "Crime & Consequence."
All right, professor, break down some of the legal challenges going on that could complicate this trial.
EUGENE R. FIDELL, SR. RESEARCH SCHOLAR IN LAW, YALE LAW SCHOOL: There are a lot of them involved in this case. This is a capital case. It's the first of the so-called high-value detainee cases to come before a military commission. And there's going to be a raft of issues presented.
One of them has to do with whether Mr. al-Nashiri is even subject to trial by a military commission. This turns on whether his offenses were committed in the course of armed conflict. In other words, the statute requires that the conduct have been part of hostilities. There's separate litigation pending in Tacoma, Washington, that addresses that.
In the case in Guantanamo, there are going to be issues regarding waterboarding, since Mr. al-Nashiri was subjected to waterboarding. An electric drill was apparently held next to his head. A variety of other things done by the CIA.
WHITFIELD: And because of perhaps those controversies that you underscored right there, is that in large part why these proceedings are being transmitted via closed circuit television to reporters and family members? Only some people are going to be allowed to see it.
FIDELL: Right. Well, this is a glass half full/glass half empty situation. Obviously it's better that more people be able to see these proceedings. On the other hand, the government has, for better or worse, gotten itself into a position where it's conducting the actual trial proceedings in Guantanamo, which is extremely inconvenient to get to. It's a good thing that members of the victims' families, let's say, can attend and watch TV at Fort George GME (ph) outside Washington.
But it -- personally it seems like it would be a lot better idea to try this case, which is the subject, by the way, Mr. al-Nashiri is the -- is an unindicted co-conspirator in a case involving similar charges in New York City -- to try the case in New York City or some other federal court where everybody can get to the courthouse and it doesn't take an airplane to actually be physically present.
WHITFIELD: Well, what happened? There were some instance in which the administration said it wanted the use of federal courts. And in other cases, as you see it here, being played out via a closed-circuit TV. Can you have it both ways?
FIDELL: I don't think you can have it both ways. I recognize that the administration is on kind of a charm offensive to make these proceedings somewhat more palatable. And I also recognize that, for a time at least, the president and Attorney General Holder were trying to preserve civilian trials for this and other cases.
But, unfortunately, it got away from the administration politically and Congress basically made it impossible to try this case anywhere other than Guantanamo. I think that's a really terrible misfortune. I think it doesn't contribute to public confidence in the administration of justice. And, frankly, I bet federal judges all around the country are wondering why there isn't more confidence in the ability of the federal courts to try a case like this.
WHITFIELD: All right, Eugene Fidell of Yale Law School, thanks so much for your time.
All right, now to politics. Republican presidential candidate Herman Cain remains on the defensive against widening accusations of sexual harassment. He insists he will not quit the race, even as the lawyer for one of his accusers tells CNN that all of the women who have made complaints against Cain may hold a joint news conference to, quote, "lay out all the facts," end quote. Cain says he has no memory of the first accuser to publicly describe alleged inappropriate behavior by the GOP presidential hopeful and he rejects the growing number of allegations as politically motivated.
All right, coming up during this very hour, history in the making. Just minutes from now, the government will do something that's never been done before and it effects how you watch television and listen to the radio.
Plus, the voters have spoken. How two controversial state elections resulted in a blow to Republicans. But was it a win for Dems? That's fair game, next.
But first our "Political Junkie" question of the day. Who was the first president to make a televised speech from the White House? The answer, after the break.
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(COMMERCIAL BREAK)
WHITFIELD: Before the break, I asked you which president made the first televised speech from the White House. The answer? Harry Truman, October 5th, 1947. He went on television to ask the American people to cut back on grain consumption in order to help struggling countries in Europe.
Reactions are pouring in after voters weighed in on some controversial ballot measures. Mississippi voters rejected an amendment that would have defined life as beginning at conception. The amendment could have made it impossible to get an abortion in the state and would have hampered the ability to get certain types of contraception that work after eggs are fertilized.
In Ohio, voters repealed a law limiting the collective bargaining rights of state and local employee unions, while approving a measure allowing the state to opt out of federal health care mandates.
Let's bring in Democratic strategist, Maria Cardona, and Republican strategist, Ron Bonjean.
Maria, you first.
Why is the defeat of the personhood measure being considered a Democratic victory in some circles? MARIA CARDONA, DEMOCRATIC STRATEGIST: I think, more, Fredricka -- what would be more accurate is for it to be considered an American victory and victory for women's health. What you saw was all sorts of Americans, not just Democrats, but you -- I think you have Republicans as well, who all believe in a woman's right to choose and the fact that abortion should not be completely outlawed, pushing back against those who believe in that extreme position. And what that extreme position would have done is it would have put a woman's health secondary or tertiary and would have damaged the ability of a woman to make her own decisions, even when her life is in danger. That is an extreme position. What we saw yesterday was Americans standing up and pushing back against those extreme positions.
WHITFIELD: So, Ron, what's behind the crafting of this personhood measure? It was all inclusive, as Maria just mentioned, contraception, fertility, cancer treatments, et cetera.
RON BONJEAN, REPUBLICAN STRATEGIST: Right. Well, obviously that measure was written way too broadly. And the Mississippi voters simply rejected it because, you know, you still had Republicans getting a -- one of their own as governor once again. And you had a voter I.D. law that passed, that Republicans were supporting.
So clearly, to me, this shows that the measure was written too broadly and that, not only that, but that this is going to be an economical action, that this 2012 election cycle is going to be based upon jobs and the economy and not on social issues. Especially ones that are going to be too broad and too encompassing in scope.
WHITFIELD: You agree that personhood -- you're agreeing with Maria that that personhood measure was apolitical because when you look at the governor remaining, Republican governor and lieutenant governor in power, that clearly is more of a political vote?
BONJEAN: Yes. No, that's absolutely right. And you see that in other places like, you know, Ohio, where, you know, the unions had a victory in the ballot measure, on their ballot measure, but at the same time, President Obama's health care plan was rejected. and it's going to be very difficult to try to nationalize that among Democrats.
WHITFIELD: OK. Let's talk about that Ohio measure, then. and, you know, clearly this is a -- this is a statement that Ohio is making that could have ramifications in other states, especially as this health care mandate from this administration is finding its way in the Supreme Court, Maria?
CARDONA: Right. Absolutely. This was an extremely important victory, Fredricka. Again, not for Democrats, not for the unions, but for middle class families, for working class families and main street America.
I'll push back on something Ron said. I do think the victory in Mississippi was political, because if you hadn't had the Tea Party sweep and thinking that they could own this and pass extreme measures, I don't think you would have had this law written so broadly. They have overreached, the way that they did in Ohio. And, again, middle class families stood up for firefighters, for teachers, for public employees, while Governor Kasich and the rest of the extreme GOP tried to demonize public employees, when they are not the enemy. And Americans pushed back. Folks in Ohio pushed back.
WHITFIELD: OK.
CARDONA: That is what the 2012 election is going to be about.
WHITFIELD: All right. Well, Ron, Ohioans made another big statement as it pertains to labor unions during yesterday's election as well. Do you think this is contained to Ohio or might this be a contagion?
BONJEAN: I think it's contained to Ohio. The unions made this their last stand. They lost miserably in Wisconsin, Scott Walker's push to reform collective bargaining rights there and to try to get the state's economy back in balance. That's what John Kasich was trying to do in Ohio. The unions rejected that.
What's more telling I think for 2012 is the fact voters rejected -- and you're talking now massive amount of union voters voting in rejecting President Obama's health care initiative, which is very telling about a battleground state that he's going to have to win in 2012.
WHITFIELD: All right.
BONJEAN: And that organization was -- you know, failed to achieve any other results.
(CROSSTALK)
CARDONA: But it doesn't do anything. It doesn't practically change anything.
BONJEAN: It's very symbolic.
WHITFIELD: All right, lady and gent, that's what fair game is all about.
Thanks so much. Appreciate your --
CARDONA: Thanks, Fredricka.
WHITFIELD: -- your input.
All right, up next, disturbing developments out of Iran now. The country is said to be on the verge of building a nuclear bomb as the regime reportedly threatens street wars against Israel and right here in the United States.
Standing by live, Jim Walsh, who has met personally with the Iranian president several times. Don't miss our conversation, next.
(COMMERCIAL BREAK) WHITFIELD: Disturbing developments out of Iran -- street wars. That's what the Iranian regime is reportedly warning, should anyone provoke the country. And one of the battlefields? American soil. This, of course, comes after the United Nations' nuclear watchdog says Iran is closer than ever to building nuclear weapons.
Joining us now to talk about Iran's latest threats, international security analyst, Jim Walsh, who has actually met with the Iranian president several times.
Jim, both the West and Iran are stepping up the rhetoric. How worried should the world be after this new nuclear report?
JIM WALSH, INTERNATIONAL SECURITY ANALYST: You know, I think obviously the report shows that Iran has violated its NPT, it Nuclear Nonproliferation Treaty commitment. There's no doubt about that.
But there's some good news in this report as well. The good news is its centrifuge program seems to have leveled off and stagnated, that they are having problems with their new centrifuge designs. They had announced with great flurry a bunch of improvements. Those don't seem to be going anywhere.
The other thing in the report is that while it shows, it documents in a really fine-grained way past violations, it leaves open the question of whether Iran is pursuing a nuclear weapon today, you know, has made a decision to seek nuclear weapons. The U.S. intelligence committee has said, as a consensus, with high confidence -- that's the way they put it -- that they don't think Iran has made that decision yet. There's still time here to turn this boat in a different direction.
WHITFIELD: OK, so Iran kind of spits at sanctions. So what are the options?
WALSH: Well, sanctions, they -- of course, they're going to say sanctions don't do any harm. They're not going to admit that. Actually, interestingly, within the last couple months, Ahmadinejad did admit sanctions are having an impact. They are not a magic wand and there isn't a magic wand. It's going to require a combination of things. Yes, sanctions, yes diplomacy, perhaps the threat of military attack.
But at the end of the day, you can't bomb the knowledge out of the Iranian scientists' heads. They know how to make a centrifuge. What they have to be persuaded is that they should not go down that path. They haven't made that decision yet. They have to be persuaded to give up path and that they'll get something out of it and they'll also avoid paying a very big price. That's how you stop nuclear programs. That's how we've done it in the past. That's how we did it with Libya and other cases and that's what's going to have to happen here as well.
WHITFIELD: We talk about these threats. then there was the most recent alleged assassination plot involving the U.S. ambassador to Saudi Arabia. You met with President Ahmadinejad many times. Describe his temperament. Does this seem to be indicative of the cat- and-mouse game he likes to play or is there something more ominous?
WALSH: Well, no. two things on that, Fredricka. One, his response is classic Ahmadinejad. He talked about this being a U.S. plot. He's always talked this anti-imperialist line. This is also a classic for him. Then he shifts the subject and says, no one's talking about U.S. nuclear weapons. I don't think that really -- no one really buys that as an answer to this. I think the international community is pretty united here on the nuclear issue.
But the second thing to realize, and it's important here, Fredricka, is Ahmadinejad has lost power. He's essentially a lame duck inside the Iranian government. The supreme leader has turned on him, as it were, and he cannot run for re-election. He's being sort of managed and contained. So he's not really the center of gravity in Iran. It's the supreme leader who's the most important player here.
WHITFIELD: Jim Walsh, thanks so much. Always good to see you.
Four Americans charged with plotting terrorist attacks back in court in just minutes. A live update.
Plus, a storm barreling towards Alaska. It's being called epic. A look at "snowicane."
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WHITFIELD: Investigators say these four men, all senior citizens in their 60s and 70s, were conspiring to attack government officials with deadly biotoxins and explosives. The Georgia suspects are set to appear at the Gainesville federal courthouse later today.
And CNN's George Howell joins me now.
So what's expected to happen in court?
GEORGE HOWELL, CNN CORRESPONDENT: Well, we're talking about the four men -- Fred Thomas, Dan Roberts, Sam Crup and Ray Adams. And today, we're expecting to see them in court for a bond hearing. We also expect prosecutors, Fred, to make the case as to why they say these men are dangerous. Their focus will be the alleged plot to buy explosives, buy ammunition and spread this deadly toxin, called ricin, on highways in Atlanta; Washington, D.C.; Newark, New Jersey, to name a few of these cities.
We got an interview with the sheriff of Stephens County. Just listen to what he has to say. Completely surprised by the alleged actions of these men.
(BEGIN VIDEO CLIP)
RANDY SHIRLEY, SHERIFF, STEPHENS COUNTY: I've known them 34 years, and I am just like the community are, I'm shocked.
(END VIDEO CLIP)
HOWELL: Completely taken by surprise by this. He's known them for years.
WHITFIELD: Do they feel like the evidence is pretty well stacked against these four men?
HOWELL: At this point, they're still looking through a lot of that evidence. We're talking about recordings that came from a person who these men apparently knew, but was giving information to investigators.
The other thing about this, we're talking about older suspects here. People are asking the question, were these men trash-talking the government or did they have a plan? And prosecutors believe they did have a plan and say they had things needed to create ricin.
WHITFIELD: So they're taking it very seriously.
HOWELL: They are.
WHITFIELD: We're going to find out. You're going to keep us posted throughout the afternoon --
(CROSSTALK)
HOWELL: I will. We're monitoring it today. Absolutely.
WHITFIELD: All right, George, thanks so much.
All right. Take a look at this video. It looks like a hurricane, doesn't it? Looks a little familiar. Take a peek. Except, it's snowing. That is not just wind and rain. That's wind and snow. This epic 1,000-mile-wide super storm is pounding Alaska as we speak.
And severe weather expert, Chad Myers, joining us now.
We're calling this a "snowicane."
CHAD MYERS, AMS METEOROLOGIST: There you go.
(LAUGHTER)
Winds were hurricane force. Not it's not formed like a hurricane is formed, by warm water. The water up here is cold. There's the low pressure, the spin right here. You can hardly find Alaska. And all the way down there, Juneau and the entire state. A very big storm. Not the only one this week. There will be another big storm that comes in on Friday. But the wind (ph) are just howling around the storm up here, blowing up towards Nome. But we're not talking about Anchorage or Juneau. We're talking about -- there is the line of islands. You know, "Deadliest Catch," all those guys and women do all that fishing this way. Not anywhere near there. But certainly, winds up here on the north show here, Nome, Barrow, all those area where the Iditarod race goes every once in a while.
WHITFIELD: Right. MYERS: That is where you are seeing all this blizzard winds right now, 74 miles per hour. That was the latest winds there, 48 out of Nome, 36, a little bit -- 31 farther inland. But the biggest storm, the lowest pressure, bigger than a category 3 hurricane pressure --
WHITFIELD: It is big.
MYERS: -- storm. This would be a major hurricane, if it became a hurricane in the middle.
WHITFIELD: Oh, my.
MYERS: But the last storm this big, 1974. Before that, 1913. So that doesn't happen very often.
WHITFIELD: Yes, so they are not really that used to this after all.
MYERS: Right.
WHITFIELD: All right, Chad Myers, thank you so much.
MYERS: You're welcome.
WHITFIELD: $50,000, that's how much one small business is paying its employees to stay employed there. How loyalty can really pay off.
Plus, beer, liquor, wine -- folks in many cities can't buy booze on Sundays. Well, voters just had their say in one state. That's all next in "Street Level."
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WHITFIELD: All right. Now, let's go "Street Level" with stories making headlines across the country.
To Killeen, Texas, where an AWOL soldier plotting to kill soldiers at Fort Hood faces new charges. You may remember, Naser Jason Abdo, an American Army pilot was arrested in July for allegedly planning to both bomb a restaurant in Fort Hood frequented by soldiers. Abdo already faced a number of firearms charges but prosecutors are tacking on new federal charges, including attempted murder of a U.S. officer and attempted use of a weapon of mass destruction, which carry a maximum life sentence.
Here in Atlanta, voters made it loud and clear that they want to be able to buy alcohol on Sundays. Voters in dozens of cities and towns across Georgia, in fact, have put an end to the state's long- standing ban on Sunday liquor sales. But hold off on running to the liquor store this weekend. According to the "Atlanta Journal Constitution," the alcohol sale ban will be lifted on different dates in different cities, ranging from November 20th to as late as February. On to Charleston, South Carolina, now. An innovative boss has come up with a way to cut his business costs by -- get this -- giving his employees $50,000 bonuses, no strings attached. The only thing workers have to do is stay with his company for five years. If they stay even longer, some may get as much as $250,000 in bonus money.
Dan Schneider is the man behind this big incentive, as the founder and CEO of SIB Development and Consulting. He is joining us live now.
Dan, you are probably the most loved man in Charleston, South Carolina. Why are you doing this?
(LAUGHTER)
DAN SCHNEIDER, CEO, SIB DEVELOPING AND CONSULTING: At least with people that are employed by me.
WHITFIELD: Right. At least.
(LAUGHTER)
OK. So you are talking about 30 full-time employees, $50,000 if they stay at least five years, and $250,000 if they stay even longer? Why did you decide to do this? What gave you this brilliant idea?
SCHNEIDER: What I realized is that, these days, people seem to stay at their job for two to three years and then they keep continuing to look for the next best thing. So I thought, well what can I do to incentivize employees to not even worry about looking for a job and to have something to look forward to on top of their normal raises and promotions. So I thought, why not a $50,000 check at the end of five years and then, once five years is up, if they want to stay for another five, they can get another 50.
WHITFIELD: You clearly did some calculations of your own -- you are a business man -- to figure out, how I do come up with the right amount, the right incentive. Why, in the end, does this save you money as a business owner to give the incentives to get people to stay, to get this kind of retention?
SCHNEIDER: There's a couple ways that it helps us save money. Number one, we are not retraining employees. Number two, we have employees that are happier. They have something to look forward to, so they are going to be more productive at work. And the longer that they stay with the company, the more effective they are at their job because they have done it and become more experienced with what they are working on?
WHITFIELD: Have you heard from employees now who are saying, you know what, I think I'm going to stay for as long as possible now?
SCHNEIDER: Yes, they -- sometimes they --
(LAUGHTER) -- they might want to stick around for a while. And what they are going to do is definitely make sure that they are doing their job properly and that we want to keep them there for the next 10, 20 years.
WHITFIELD: And what about your, you know, neighborly business openers? Are they saying, Dan, are you crazy? Are they saying, hey, you know what you got a pretty good idea? I think we will consider that?
SCHNEIDER: I think they think that I'm crazy because their employees then come to them and ask them, well, why aren't you doing this. The way we are able to do it is, we work with clients to help save them money and then we share in part of the savings of what we find for our clients. So we know what our revenue is going to be five years out from now because we are signing long-term agreements with our clients. So we are able to account for it in the budget and know that the money is going to be there, rather than a company that is just only as good as their next deal. It would be little harder for them to off they are type of program because they don't know what their revenues are going to be in the next couple of years.
WHITFIELD: All right. Fantastic.
Dan Schneider, thanks so much.
One more time, for people who maybe thinking about new employment, think of SIB and his job in Charleston, South Carolina. So, the first five years, $50,000. You stay on another five years, you will get another $50,000. That's some incentive.
Thanks so much, Dan.
(LAUGHTER)
All right. President Barack Obama is taking steps to cut billions of dollars from the federal budget and bypassing Congress to do that.
Brianna Keilar joins us from the White House with more on that -- Brianna?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Hi there, Frederica. This is part of his "we can't wait campaign," bypassing Congress to sign this executive order. This one to save federal dollars, to cut waste and making the federal government more efficient.
So what are we talking about here? For instance, this one includes slashing travel budgets, conference-related expenses, focusing instead on video conferencing to save money, and cutting back on federal vehicles and printing costs. And this is to follow on something the Commerce Department has already done, the White House says, saying they have saved millions of dollars this year for something that is going to probably make your eyebrows go up. They actually disconnected more than 2,600 wireless phones, phones that had been given to people who had retired or quit, and those phones and those accounts have never been turned off. So this sort of speaks to his strategy to bypass Congress in his "we can't wait campaign" -- Fred?
WHITFIELD: All right. Thanks so much. Brianna Keilar at the White House. A very noisy White House today.
All right. In just under a minute, millions of Americans will witness history. For the first time ever, the government will launch a nationwide test of the Emergency Alert System. It is designed to allow the president of the United States to address the country within 10 minutes from any location at any time. The system was not used on 9/11, which some critics say proves the U.S. is still living with an outdated warning system. So, if you are watching television or you are listening to the radio, you are about to hear it. We are told it will last just 30 seconds. And keep in mind, it is only a test.
After that, Don Lemon will be in this seat.
(LAUGHTER)
I will see you tomorrow.
DON LEMON, CNN ANCHOR: All right, Frederika, thank you very much.
