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U.S. Warns Airlines of Toothpaste Bombs; 750K Without Power in Pennsylvania; CDC: All West Virginia Water Okay to Drink; Bieber's Flight Troubles; Billionaire: "The One Percent Work Harder"

Aired February 06, 2014 - 10:00   ET

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

CAROL COSTELLO, CNN: Explosives and anxiety as American athletes arrive to what could be the most dangerous games in history.

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UNIDENTIFIED MALE: The safety and security of our athletes and our whole delegation is always our primary concern.

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COSTELLO: Also, powerless if in Pennsylvania.

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UNIDENTIFIED MALE: There's a lot more trees hanging low. When they start breaking, then they bring the wires down.

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COSTELLO: The city of brotherly love looking for heat this morning.

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UNIDENTIFIED MALE: Winter has really been rough.

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COSTELLO: A third of the city waking up cold and in the dark.

Plus Justin Bieber Super Bowl pot flight.

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UNIDENTIFIED MALE: Justin Bieber is in trouble again.

UNIDENTIFIED FEMALE: This time officials at the New Jersey airport are the ones that searched his plane.

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COSTELLO: The singer's pot smoke reportedly so thick the pilots had to wear masks. Brand new details breaking this morning.

And the 1 percent and his message for the rest of us 99 percenters, the interview that's got us buzzing this morning.

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UNIDENTIFIED MALE: Quote, 1 percent are being pummelled.

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COSTELLO: The billionaire real estate investor and failed head of "Tribune" Sam Zell saying we should emulate him. Yes, this really happened. You're live in the CNN NEWSROOM.

Good morning. I'm Carol Costello. Thank you so much for joining me. We begin this hour in Sochi, Russia where the last of the Olympic athletes are arriving amid new terror concerns. The Department of Homeland Security now says a terror plot could begin in a U.S. airport inside an innocent looking tube of toothpaste.

Washington is warning airlines that terrorists could hide explosive materials there to detonate in flight or once they arrive at the games. Just minutes, we heard from America's top Olympic official in Sochi.

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SCOTT BLACKMUN, CEO, U.S. OLYMPIC COMMITTEE: The safety and security of our athletes and our whole delegation is always our primary concern as the team behind the team here on the ground. We, as we always do, work closely with our State Department. Our State Department is in very close contact with the local authorities. We react to situations as they arise. We also have a lot of planning exercises in advance. These games are no different in that respect.

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COSTELLO: CNN's Nick Paton Walsh is live in Sochi this morning with more. Hi, Nick.

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT: Carol, the real issue, of course, is not this is a threat to the homeland, but it is specifically pointed towards Sochi here. Threats serious enough Barack Obama is kept informed of them. It's a flight from Europe to Russia and then maybe on to Sochi. Russians may have had an inkling earlier because they seemed to try to ban all carry-on luggage.

This may be because of past ten years ago two suicide bombers took out two planes almost simultaneously over Russia and perhaps hid the explosives is in their makeup. The question is what that's going to do to the atmosphere behind me, due to start in 24 hours, the opening ceremony. And what may happen outside the Ring of Steel here.

We know the efforts being put into keep athletes safe. The question is, what's going to happen across Southern Russia where there's been insurgency for the past ten years -- Carol.

COSTELLO: All right, Nick Paton Walsh reporting live from Sochi this morning, let's talk more about what Nick Paton Walsh just reported. Terror warnings rumbling through U.S. airports. It's rattling nerves across Washington. CNN's Wolf Blitzer talked to two news makers with the different views on the safety of Americans in Sochi.

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MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: I would feel most confident in the hardened venues, if you will, the places where athletes are competing. The Olympic Village, Olympic hotels and the official Olympic transportation system I believe will be so substantially guarded those areas will be safe. Even there, there's no such thing as a 100 percent guarantee.

REPRESENTATIVE PETER KING (R), NEW YORK: I would not go myself. If I were an athlete, that's one thing. As a spectator, I don't think it's worth the risk. Odds are higher than any other Olympics that something could happen.

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COSTELLO: Robert Baer is a former CIA officer and now serves as a CNN national security analysts, welcome.

ROBERT BAER, CNN NATIONAL SECURITY ANALYST: Hi, Carol.

COSTELLO: So when you hear Peter King say that he wouldn't go to Sochi, that's frightening. How do you feel?

BAER: Well, I wouldn't go either. You know, standing around in large crowds in Sochi, you're putting yourself in definite risk. When they mike the threats, when they say they're going to do something, they will try something. Russian security officials are doing their best. It's a large country.

COSTELLO: Well, plenty of Americans are already there. What advice do you give them?

BAER: Stay out of crowds, stay out of theaters, congregating out in the streets and things like that. The attack would be against the soft target like that. I think in the hardened areas you'd be safe. Otherwise, it's risky.

COSTELLO: Let's talk about the toothpaste and the danger presented there or potential danger. Will the TSA in the United States adjust because of this threat?

BAER: You know, there's only so much they can do. It's not only toothpaste and liquids. There are powders you can bring airplanes down with. Planes are vulnerable. We could get to the point we couldn't carry anything on an airplane and be safe. I don't see that happening. On the other hand a single tube of toothpaste is not going to bring down an airplane unless you've got it this the cockpit. You'd have to have an awful lot of this stuff. It's a remote threat. Nonetheless in Sochi, there will be an attempt to do something there.

COSTELLO: I hope you're wrong, Robert.

BAER: I do too.

COSTELLO: Thanks for joining me.

You won't be surprised to hear me say it's been a brutal winter. The extremely cold temperatures and crippling storms have snarled travel even causing shortages and propane that millions use to heat their homes in the winter months.

In North Dakota, a woman was found dead on an Indian reservation. Her propane tank was empty and the police chief thinks she may have frozen to death. In Ohio, slippery roads are causing a mess for drivers. Snowplows slid into a retaining wall and dangled over until emergency crews could get involved.

In Pennsylvania nearly a quarter of a million are waking up without lights or heat this morning after heavy snow and ice brought down trees and power lines in the latest storm. CNN's Margaret Conley is live in Abington Township near Philadelphia. It's what, 24 degrees with the real feel of 8?

MARGARET CONLEY, CNN CORRESPONDENT: That's exactly what it feels like, Carol. About a million people across the country are without power. Hundreds of thousands are without power here in Pennsylvania. Ashleigh, some areas were hit by the storm harder than Super storm sandy. We were walking down the street last night, pitch black. They let us in. They were surviving by candle light with whatever power they had.

When you look up at trees here, there's snow and ice on the branches that's too heavy for them. Trees are mature here, fallen down and broken power lines. That's decimated power in this area. We can hear the crackling now as the ice is melting and falling from the trees. That's creating a dangerous situation for people on the ground here too. Emergency workers are working around the clock to try and restore power in the area.

There are warming centers, heating centers all over the county. Pico are sending in 200 more workers from Chicago to try and help deal with the situation. The governor of Pennsylvania is meeting 20 minutes from where we are here. We are hearing from officials that some may not have power restored until this weekend.

COSTELLO: That's awful. Margaret Conley, thanks for your report.

Still to come in the NEWSROOM, Justin Bieber can't seem to stay out of trouble. What he did on a charter flight that had pilots wearing oxygen masks. You know this by now, but there was so much pot smoked on the plane pilots had to wear oxygen masks. We'll talk more about that next.

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COSTELLO: Checking our top stories at 12 minutes past the hour, the CDC says all West Virginians can now drink tap water following last month's chemical spill. After a ban had been lifted for most people, the CDC advised pregnant women not to drink the water. The 300,000 people were affect add by the height of the ban.

The 1,800 guns were confiscated in the year alone. Of the guns 1400 were loaded. One man tried sneaking in guns by hiding them in laundry detergent.

The health of the man that says he survived 13 months lost at sea is in decline. Officials say he's severely dehydrated and low on vitamins and minerals. He was scheduled to go back to El Salvador where he was allegedly living. The trip has been delayed because of his health.

We know about Justin Bieber and what happened on the plane. He and his father were reportedly smoking to much pot on the flight, pilots put on oxygen masks in fear they'd fail drug tests. We have more now from Susan Candiotti.

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SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): Justin Bieber in the headlines again for the wrong reasons, this time for allegedly refusing the pilot's warning to stop smoking pot on board a private flight from Toronto to the Super Bowl last Friday. The smell of weed permeated the cockpit.

The law enforcement source tells CNN the pilots claim they put on oxygen masks to keep their lungs clear afraid they might fail a possible drug test. The flight crew reportedly warned Justin Bieber and his on the entourage to put the pot away. It got so bad the pilot suggested the flight attendant hang out near the cockpit to avoid the star. The sources say the odor was so pungent it was obvious more than the plane was flying high.

PETER SHANKMAN, BRANDING EXPERT, SHANKMAN/HONIG BRANDING: The traditional person gets on an airplane and has to worry about being on time and worry about going through the TSA. This kid has a private jet, yelling at pilots trying to get them high, probably not the best way to get sympathy.

CANDIOTTI: This incident coming on the heels of a string of legal troubles for the pop star. Last month, Bieber plead not guilty to driving under the influence in Miami Beach. The toxicology report showed he had Xanax and marijuana in his system. He faces charges in Toronto for hitting a limousine driver in the head. His agent says Bieber is innocent. The DEA is deciding whether to charge him with vandalism for egging a neighbor's House last month.

SHANKMAN: This is a text step of how to kill your career.

CANDIOTTI: As for the Super Bowl incident, no drugs were found and no charges were filed, CNN, New York.

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COSTELLO: Still to come in the NEWSROOM, the 99 percent just are not working hard enough. One of the richest men in America has harsh words for nearly all Americans. Are the wealthy out of touch are? Is there a greater truth here? We'll talk about it next.

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COSTELLO: If you are poor, maybe the reason you can't get ahead isn't because of the low wage jobs or cut to food stamps, it may be other people are simply working harder than you. That's the rational offered by one of the richest men in America.

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UNIDENTIFIED MALE: The quote, 1 percent are being pummelled because it's politically convenient to do so. The problem is that the world and this country should not talk about envy of the 1 percent. It should talk about emulating the 1 percent. The 1 percent work harder. The 1 percent are much bigger factors in all forms of our society.

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COSTELLO: That would be real estate developer Sam Zale talking about the Tom Perkins which compared anger toward the rich against persecution of Jews in Germany. Joining me now to talk about this, Stephen Moore, chief economist for the Heritage Foundation and chief business correspondent, Christine Romans. Welcome to both of you.

STEPHEN MOORE, CHIEF ECONOMIST, HERITAGE FOUNDATION: Hi, Carol.

COSTELLO: We hear this again. The 1 percent work harder and the rest are envies you of his wealth. Seriously, Mr. Zale worked harder than a single mother working two jobs?

MOORE: I'm going to defend what he said. There are grains of truth in what Sam said. It's true people make it to the top in this country. They do work hard, take a lot of risks, start businesses and make sacrifices to get to the top. I agree that's the kind of behavior everyone should emulate. Everyone wants to share the American dream. It's also true -- you're right. A lot of American poor are working 50 to 60 hours week. A lot of households, nobody is working. If nobody is working, guess what, you're not going to climb the economic ladder. Hard work is a prescription for getting ahead in this country.

COSTELLO: Christine, I read about this topic. I wrote the majority of middle class people are struggling not because they don't work as hard as most successful Americans but it takes more than sweat to succeed and the odds are tougher in 2014. If you look at wages in this country, frozen in place for decade, how can you argue that is not true?

CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Those wages have been frozen. The technology and factory changes mean you don't need as many workers. Hundreds of millions around the world will do your job less than you will do it for. Companies are eager to lower labor cost by pursuing the markets. This has been going on before this president, the president before him and all the way back to JFK.

You hear politicians promising to help the middle class. I wonder if they know what they're talking about. This has been going on a long time. Middle class workers, the whole game has changed around them. The expectations for being in the middle class have not changed. We talk about low wage explosion of jobs.

Those aren't middle class jobs. You can't live a middle class life on those jobs. The fastest pace of the labor market has changed around us for how we want to live in this country.

COSTELLO: Stephen, along the lines, Mr. Zale talks about envying the 1 percent. It's not envying the money they have. Lower middle class people don't respect the rich because they think the system is rigged against them. It's not because they're envious of money wealthy people have.

MOORE: Certainly there's some of that. People do feel the system is rigged against them. If people have to go to -- young people go to poor schools or grow up in households where there's crime in the neighborhood and so on. I do think it's important for us to -- I don't know if the right word is envy, but to emulate what the rich do is important.

The evidence is clear most rich people built businesses, did work hard. That's exactly the kind of trap to the American dream every American wants. I am troubled quite frankly, Carol, with the kind of talk, if we tear down the rich, that's somehow better for the middle class. Christine is right. A lot of traditional middle class jobs we saw in the 1960s and 70's have disappeared.

No question, Christine. It's true we're creating a lot of jobs in the energy industry and technology industry. We have to get the workers to have the skills and education so we have the highest paid workers in the world. That's something we all want to see.

COSTELLO: That has nothing to do with working hard. That's opportunity.

ROMANS: And training and education is the other thing I hear. I hear from CEOs -- they are more politic than Sam was in the comments. They say I could hire 100 people today if they had the skills for this rig, for this factory, for this airplane center. I don't have them. I talked to someone that told me he needs welders so badly.

Then you go to community colleges, they have a backlog of space to be trained as a welder. Where's the crazy mismatch? How do we fix it? Those are the things policy makers should be focussing on not blaming each other.

MOORE: We had the debate over the new health care law and the idea it's discouraging people from working more. You can work less and get more benefits. That's the public policy that works against people climbing the economic ladder. We want people to work more not less.

COSTELLO: There are two ways to parse that out when it comes to Obamacare. That may mean retired people don't have to work until they're 72. They can get affordable health care. That's how Democrats look at it. There are two ways to look at it. ROMANS: Also the unpredictability of how it will play out. We're implementing life changing country changing legislation. I think these press releases back and forth about how many jobs are going to be lost are premature. It's law playing out. We'll watch it. The most important thing here, Carol, American workers feel like the game is rigged against them. They don't have the choice they used to.

You have to be a stem brainiac or working in North Dakota in energy or flipping burgers. We got to have more choices than that. We have to have an education that doesn't cost so much if you want to retrain. You come out of college $26,000 in debt and work at a Starbucks. All of these are important questions that get lost in this.

COSTELLO: And the question -- I could talk about this forever and ever. It's a passion of mine.

MOORE: We have to reward work. That's not what we're doing in Washington. We're discouraging work.

COSTELLO: I have to say one more word. My producers are screaming in my ear to wrap this up. Many see the top 1 percent working hard and never punished for it. They make huge mistakes, some of them. They suffer no consequences. Most of the middle class do suffer consequences.

MOORE: We shouldn't bail out companies that fail. I'm with you on that, Carol.

COSTELLO: Stephen Moore, thanks so much. Christine Romans, thanks for the discussion.

Still to come in the NEWSROOM, President Obama takes a message of faith and religious freedom to the National Prayer Breakfast. Will this help break gridlock in Washington?

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