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CNN Live Saturday

Jordan Confirms: Zarqawi Behind Amman Attacks; Attorney General Gonzales Travels To Australia, Asia

Aired November 12, 2005 - 17:00   ET

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

CAROL LIN, CNN ANCHOR: And battered levees designed to protect New Orleans may not be fully restored by the 2006 hurricane season. The chief engineer in charge of reconstruction says work may continue even after June. He says temporary fixes, if needed, will be in place when the season begins.
Our top story right now, a growing threat to the Middle East, that is what Jordan's King Abdullah is calling Abu Musab al-Zarqawi. After a suicide bombing, series of them, in Amman. Jordanian officials say four people were involved in the attacks Wednesday, including a married couple. Secretary of State Condoleezza Rice may see the damage for herself. She is planning to visit Jordan very soon. And King Abdullah is vowing to take the fight to al-Zarqawi and his al Qaeda cell in iraq. CNN's Nic Robertson has just spoken with Jordanian official and has new information right now.

Nic, what have you learned?

NIC ROBERTSON, CNN CORRESPONDENT: Well, Carol, I've just been talking to security sources closed to the situation, she said this husband and wife couple, one of them, the male, the suicide bomber, they say they're investigating the role of the woman. They don't know exactly the role and involvement of this woman. They hope to know more later.

But what we have learned is that the suicide bombers crossed over from Iraq, into Jordan on Monday, three days before the bombing took place. We've also learned from the same security sources that they crossed over with ready-made suicide vests. The suicide vests contained high explosives, similar to an explosive called RDX. That they came in also with detonators for these explosives, these detonators made from hand grenade detonators, and the security sources here said they've never seen this type of detonator used before.

They say the explosives were manufactured in Yugoslavia, exactly the sort of explosives that can be found in Iraq at this time. They say, from what they can see, that the suicide vests were made in Iraq. They won't at this time say the nationality of the suicide bombers, although probably the indications are they may well be Iraqi.

But I think in the next days, maybe even hours, we can expect to learn perhaps the names and definitely the nationalities of the bombers at this time. Fourteen people arrested so far. None of them Jordanians, we're told. A safe house also being investigated, believed to have been used by the team just before the bombing, Carol.

LIN: Nic, so is there any evidence that al Qaeda has tried to attack in Jordan on this scale before?

ROBERTSON: Absolutely. The security sources we've talked to have said, and they've been publicly on the record as well in the past as saying that they've thwarted massive attack, an attack in April last year, an attack that they say would have killed 80,000 people. Now, since then they say they have thwarted at least 15 other attacks, 10 of those this year, some of them aimed against intelligence officials here inside Jordan.

It is being felt, definitely, from the security sources we're talking to, that this campaign by Zarqawi is being felt very personal, personally. They're also, they say, taking it very personally, trying to track him down, Carol.

LIN: All right, Nic Robertson, thank you very much for that new development.

Now, Jordan's King Abdullah calls terrorism a sick and cross- border phenomenon. The king spoke exclusively with CNN's Brent Sadler.

(BEGIN VIDEOTAPE)

BRENT SADLER, CNN CORRESPONDENT: I'm Brent Sadler in Jordan's capital Amman. Triple suicide bombers launched near simultaneous attacks against three hotels in the capital Wednesday, inflicting heavy loss of life. Al Qaeda's chief in Iraq, the Jordanian-born terrorist Abu Musab al-Zarqawi, claims he ordered the strikes.

Here to discuss the ramifications of those attacks, both inside and outside his country, I am joined by King Abdullah of Jordan. Your majesty, how much of a threat does Zarqawi's network pose and do you intend to smash it?

KING ABDULLAH II OF JORDAN: Well, Zarqawi's network, al Qaeda, pose a threat to all of us in the international community and obviously Jordanians have suffered in the past two days because of the al Qaeda network. Obviously, we're going to crack down and take the fight to Zarqawi. But this is part of our coalition through the international community, as countries that band together against this extremist threat.

SADLER: After you visited the wounded in the hospital you said when Jordanians get even -- get mad they get even. How can you accomplish that?

ABDULLAH: Well, we do have contacts internationally. I think that Jordan will look beyond its borders to assist in bringing these people to justice. But more importantly, how you take these people down is ideologically. This is not a battle between a Jordanian born or Jordan or different countries, this is an ideological struggle between extremist Muslims who have perverse view of Islam against the rest of us moderate Muslims.

SADLER: Historically, the kingdom has played a pivotal role in being a key ally of the United States, this has increased Arab outrage, frustration on the streets towards U.S. policy and the goal of stimulating democracy in this region.

ABDULLAH: Well, again, and I know you know about this, and let's talk about the issue of the peace process. The Palestinians know their strongest ally and the one that's used whatever capital I've had with the west to be able to safeguard the Palestinian aspirations and the future of the Palestinian or what we hope is a two-state solution.

Similarly with Iraq. We all believe in the unity of Iraq. Jordan has gone out of its way to standby Iraqis. And I just want to, I think, point out that the struggle that we have with al Qaeda is not an issue of politics. It's not an issue of Jordanian policy. They're out to get everybody. More Muslims have lost their lives to these extremists than all other religions put together.

This is a fight inside of Islam. If this was a fight against Jordanian policy, why go into a hotel and kill innocent women and children going to a wedding? I mean, this is the type of people that we're dealing with. We all have, I guess, you can say our Timothy McVeighs but this is a strike against the people of Jordan, not the policies of Jordan.

SADLER: Now, Zarqawi has effectively declared war, and there does seem to be a degree of personal vengeance here against the Hashemite Kingdom.

ABDULLAH: You touched on one very important issue, the Hashemite Kingdom, because we are the defenders of the prophet, because we have the legitimacy to take on these extremists through Islam, I think that is where it gets personal because it is the ideological boundaries that have been drawn between, I think, the overwhelming majority moderate Muslims and these extremists who have nothing to do with Islam.

And they know that we can call them out on this and I think this is where it gets personal. Because they run out of the arguments to be able to use whatever rhetoric and whatever propaganda they have against Jordan or any other Muslim country in this world. For Zarqawi to say that this is an attack against the Jordanian regime, it is not. This is the excuses that al Qaeda have used against the regimes but at the end of the day I think if I can be truly honest these tekfilis (ph) all they want to do is kill fellow Muslims.

And I think to walk into a lobby of a hotel, to see a wedding procession, and to take your spouse with you into that wedding and blow yourself up, these people are insane.

SADLER: Your initiative to try to win the battle within Islam, what happens if that fails?

ABDULLAH: I think it's a failure beyond the borders of Islam. It is a challenge that many other religions will have to face. And if these extremists continue the way that they're doing, we all pay the price. These people have perpetrated horrendous crimes from bail on one side of the world to the United States on the other. Arab, Muslim, western, eastern nations have all suffered from this. So it is a challenge that we Muslims are taking very seriously and one that we're continuing to fight but we need to do it together. Muslims, Christians, Jews, Buddhists, all of us need to come together and stand up against extremism.

SADLER: Your Majesty, thank you very much indeed for joining us today.

ABDULLAH: Thank you.

(END VIDEOTAPE)

LIN: Now, the war on terror is leading Attorney General Alberto Gonzalez to Australia and Asia. He's heading the region where bomb attacks have killed hundreds in Indonesia. Gonzales will meet with officials in Sydney tomorrow just days after 18 suspected terrorists were arrested in Australia.

Now to Israel where massive crowds are remembering a political giant. It's been 10 years since the assassination of former Israeli Prime Minister Yitzhak Rabin. Tonight tens of thousands of people gathered at the Tel Aviv square where he was shot by an extremist Jew. The mourners included former President Clinton. He worked closely with Rabin to try to bring peace to the Middle East.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT: However, since I love this country and spent a lifetime to persuade people to reach beyond their anger, their fear, their hurt, their insecurity to find common ground in our common humanity, I do have some observations which I offer as a friend. One, if you live in a world where you cannot kill, jail or occupy all your enemies, true peace and security can only come through principled compromise based on shared responsibilities and shared benefits.

Two, if you work for peace and fail, fewer people will die than if you do not work at all.

(END VIDEO CLIP)

LIN: Meanwhile, Palestinians are remembering the man who shared the Nobel Peace Prize with Rabin, the late Palestinian leader Yasser Arafat died one year ago.

Now, 3,000 Paris police fanned out today to guard high-profile landmarks. Police say possible targets include the Champs Elysees and the Eiffel Tower. Police say Internet blogs and cell phone text messages suggest rioters may attack those landmarks. There's been a ban public gatherings until morning than but that's not stopping the violence. Police say there were arson attacks in 163 towns last night, most targeted cars or buses.

But one mosque was damaged by Molotov cocktails. It was the sixth straight night of violence in France.

Here in the United States new poll numbers bring disturbing news to the president, part of the problem, the war in Iraq.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, U.S. PRESIDENT: While it's perfectly gel -- legitimate to criticize my decision or - or the conduct of the war, it is deeply irresponsible to rewrite the history of how that war began.

(END VIDEO CLIP)

LIN: President Bush, once again, feels the pressure of the battle in Baghdad. Also senators grilling oil company executives on their record profits and threatening to make them pay.

And more pirate attacks on ships. Gun battles are breaking out in the middle of the ocean.

(COMMERCIAL BREAK)

LIN: Well, it was another day of deadly violence in Iraq. Just as the UN's top official visits Baghdad. Secretary-General Kofi Annan is calling for rival ethnic groups to reconcile before next month's parliamentary elections. CNN's Baghdad bureau chief Kevin Flower has the latest.

(BEGIN VIDEOTAPE)

KEVIN FLOWER, CNN CORRESPONDENT (voice-over): Kofi Annan's unannounced visit here was his first to Iraq since the 2003 invasion and capped off what had been a week of high-profile visits here to the Iraqi capital. Friday, U.S. Secretary of State made her own visit. The message of these diplomatic trips, the need for Iraq to push forward in the political process. This just ahead of national elections scheduled for next month.

The hope here is that continued progress on the political front and the setting aside of sectarian differences will take the steam out of the insurgency that's been raging in Iraq for the past two years. A need underscored this morning by yet another deadly attack here in Baghdad. This time a remotely detonated car bomb exploding in the crowded market area of a Shia neighborhood killing four women and wounding 40 others.

(on camera): These attacks highlight the need and the calls for the standing-up of Iraqi security forces, some success on that front. Early morning raids by elite units from the Iraqi interior Ministry's Wolf Brigade resulted in the capture of 360 suspected insurgents. No word on whether all of those people will remain in custody, but a positive sign that Iraqi security forces are at least taking on some more responsibility. Kevin Flower, CNN, Baghdad.

(END VIDEOTAPE)

LIN: Now, just after president bush tried to make his case, again, for attacking Iraq, a new poll shows Americans are unhappy with him. Mr. Bush's approval rating is at a record low. CNN's Elaine Quijano joins us now from the White House. Elaine, good evening. ELAINE QUIJANO, CNN CORRESPONDENT: Good evening, to you, Carol. That's right. Now, officials here at the White House are continuing to insist that polls are merely snapshots in time, but taken together, they paint a picture of declining public support for President Bush and his policies.

Now, first up, the president's overall approval rating according to a just-released "Newsweek" poll stands at 36 percent, that's down about four points from roughly a month ago.

In addition, people were asked if the phrase " honest and ethical" describes President Bush. Less than half, 42 percent said yes representing a drop of eight points in the last month. So what's changed? Of course the CIA leak case which resulted in the indictment of Scooter Libby, the vice president's now former chief of staff. At the same time, Karl Rove, the president's top political advisor remains under investigation.

But there's a new dynamic, Democrats in the wake of the CIA leak case have stepped up their attacks against the Bush administration over Iraq. They are reviving or trying to revive the arguments that the administration somehow manipulated intelligence in the run-up to the Iraq War over weapons of mass destruction and on that point, in a "Newsweek" poll respondents were asked whether or not they believed Vice President Dick Cheney deliberately misused or manipulated prewar intelligence.

Fifty two percent said they believed he did. Now, that's part of the reason why we saw President Bush, on Veterans Day, forcefully push back against Democrats. In a speech at a Pennsylvania army depot, the president said, while it's legitimate to criticize decisions about the war, he also said it was, quote, "deeply irresponsible to rewrite the history of how that war began."

Now, the president said the accusations are hurting U.S. efforts in Iraq. Democrats, meantime, question whether Veterans Day was an appropriate time to launch a political attack against them. They continue to insist that the president should come up with an exit strategy for had Iraq. Now, Carol, look for this back and forth to continue. The security advisor Stephen Hadley is said to appear on the talk shows tomorrow and then on Monday, before he heads to Asia, President Bush will be raising these arguments, once again, when he speaks to troops at Elmendorf Air Force Base in Alaska.

Carol?

LIN: We'll see if it has an effect, Elaine Quijano, thanks very much.

Well, something else that's not helping American morale, could the high cost of fuel become the Grinch who stole Christmas? No toys because mom and dad are busy paying the gas bill. The story coming up on CNN LIVE SATURDAY.

(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: Most of these people don't have anything else to lose, I mean, we've lost our homes, most people lost their cars, I mean, they don't have anything. Football's the only thing a lot of people on our team do have.

(END VIDEO CLIP)

LIN: A Mississippi high school football team that thought Katrina washed up their season. An emotional story of the power of the human spirit.

(COMMERCIAL BREAK)

LIN: Stories across America now.

In Wisconsin, a man freed from prison after serving 18 years on a wrongful rape conviction but he could now face a murder charge. Prosecutors believe human remains found on Stephen Avery's property are those of a woman who was last seen with him two weeks ago. He claims he is being set up. Now, it was DNA evidence that exonerated Avery on the unrelated rape charge but now prosecutors say they have DNA evidence to support the murder charge.

LIN: In Arlington, Texas, a 66-year-old grandmother helps cops catch a fleeing suspect, she shot him in the leg. Police say they were chasing a man for speeding when he jumped out of his vehicle and broke into Susan Buckston's (ph) home. She looks pretty mad there. Well, she shot him. He ran and was caught three hours later by police.

All right, if you're driving east of Seattle, look out for this. Rock slides. They closed parts of Interstate 90 since last Sunday. Washington has seen a series of rock slides this year. One killed three people.

And caught on tape in Los Angeles. Look at this. Paris Hilton and her boyfriend get into a car crash. Now, cops are being investigated for letting the couple go before finding out whether the driver, whoever that may be, they never said, was under the influence.

All right, now, it's, you know, tornado season is supposed to be passed and already seeing more sightings Brad Huffines in the CNN weather center. Brad, what are you seeing?

BRAD HUFFINES, CNN METEOROLOGIST: Well, currently, right now, Carol, in Iowa we have a tornado watch in effect for much of Iowa and southern parts of Minnesota and according to the Storm Prediction Center increasing threat of damaging winds and tornadoes within the confines of the tornado watch box.

The increasing threat goes from Des Moines up into southwestern parts of Minnesota and eastern sections of South Dakota, just north of Sioux Falls. Looking at the heaviest thunderstorms on radar right now we have two tornados in effect presently for western Dallas and eastern Guthrie counties just to the northwest of Des Moines. If you live in the town of bone, if you live in Ames, these thunderstorms are coursing your way, so far Doppler radar is indicating the possibility of tornadoes but as of now, no tornadic activity has been spotted on the ground.

The other place to watch for the rest of this evening, according to the Storm Prediction Center's latest mesoscale discussion is what they call these, not only are we seeing scattered storms St. Louis, up towards Chicago, but developing thunderstorms tonight northeast Texas, eastern Oklahoma and southwestern Arkansas and northwestern Louisiana because of the fact that we may see some developing thunderstorms tonight.

Then tomorrow that threat begins to shift toward the east. From the Louisiana and Arkansas into Mississippi, north Alabama and up through Ohio, the Ohio Valley, even the eastern Great Lakes seeing the chance of showers and some thundershowers.

But we're seeing thunderstorms tonight, parts of northern Minnesota, then tomorrow begins to experience the turnover from rain into snow. Across the intermountain ways snows from near Denver up through Salt Lake City, north and then rain showers continue across the northwestern part of the country.

Fifty-two in Seattle for a high tomorrow. L.A., you'll see 70, San Francisco 66, very nice weather through California and much of the desert southwest, 84 in Phoenix tomorrow. But St. Louis, you'll see 63, 66 in Atlanta. But again, where you see this warm weather clashing with the cooler temperatures that's where you'll see the threat of severe thunderstorms tomorrow in parts of the lower Mississippi Balley up through the Phio valley. Be weather aware, and be weather aware tonight, carol, in Iowa and also parts of East Texas.

LIN: Glad to have you tonight, Brad, thanks very much.

Lots of people are blaming the big oil companies for high gas prices especially after they made billions of dollars last quarter. So the oil company executives make their case. See if you believe them.

And later, a live report on the mid ocean gun battles with modern-day sea pirates.

(COMMERCIAL BREAK)

LIN: Jordan's King Abdullah says Abu Musab al-Zrqawi's al Qaeda group is behind the bombing of three hotels in Amman. The king says he's taking the fight to al Zarqawi who happens to be Jordanian. Fifty-seven people were killed in Wednesday's bombings.

And Thailand says a on-year-old boy tested positive for the killer bird flu. He is recovering at an intensive care at a Bangkok hospital. And that makes 21 people in Thailand to contract the bird flu since last year, more than half of them died.

United Nations Secretary-General Kofi Annan is in Baghdad telling rival factions to work together, to build a stable, peaceful society. Annan met with Iraq's prime minister and other top officials today in Baghdad. It's the UN chief's first visit to Iraq since the fall of Saddam Hussein.

Now, police in Tel Aviv are on high alert as Israel remembers its former prime minister Yitzhak Rabin. An evening rally is marking the tenth anniversary of his assassination. Dignitaries from around the world are attending including former President Bill Clinton and his family.

Well, Americans may be in for more relief at the gas pump. Crude oil prices doped to $57 a barrel Friday. Now, that's down from the record high of $70 a barrel this summer. As Lisa Sylvester reports, when you were paying $3 a gallon for gas, the oil companies made lots and lots of money.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Numbers tell the story. Oil company's summer profits, $33 billion, average oil companies CEOs salary, $8 million. The average price of gasoline a family had to pay at the pump, a record $3.07 a gallon. The industry has not exactly been hurting yet Congress gave oil and gas companies $6 billion in tax breaks in subsidies.

UNIDENTIFIED MALE: That's outrageous at a time when oil companies are enjoying record profits the president of the United States signed an energy bill on August 8th that give it is the same price gouging oil companies huge new tax breaks. That's not energy policy. That's political payback.

SYLVESTER: Tucked in the 2005 Energy Bill, $2.5 billion in tax breaks and subsidies for oil exploration and deep water drilling, $1 billion for accelerated depreciation for natural gas pipe lean. A $40 million tax break for oil refinery owners and $1 billion in royalty relief subsidies. The oil and gas industry says the breaks are necessary because a lot of up front investment is need and ExxonMobil's president argues the profits are justified.

LEE RAYMOND, CEO, EXXONMOBIL CORP: Petroleum industry's earnings are at historic highs today, but when you look at our earnings per dollar of revenue, the true apples to apples comparison, we're in line with the average of all U.S. industries.

SYLVESTER: But lawmakers want to know how oil companies that have been crying for help could turn around and have a 75 percent profit increase.

SEN. RON WYDEN, (D) OREGON: Why shouldn't Congress take back the billions of dollars in brand new tax breaks, breaks that you just told me aren't need and use that money to help people that are hurting in our country?

SYLVESTER: Oil companies are still lobbying for more. Opening the Alaskan wild life refuge to drilling, relaxing rules for refinery construction and dodging any new taxes.

How is it that the industry was able to get Congress to pass such a lucrative Energy Bill in the first place? There's another number that might explain it, $54 million. That's the amount of money the oil and gas industry has given in campaign contributions since 2001.

Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE)

LIN: And in case you missed it, in an interview with CNN's Soledad O'Brien earlier this week the president of shell oil defended his industry.

(BEGIN VIDEOTAPE)

JOHN HOFMEISTER, PRESIDENT, SHELL OIL: Every day we have to buy 6 1/2 million barrels so we're out there on the open market buying what it takes to supply our stations. We have to pay a global price to get what we supply our stations.

SOLEDAD O'BRIEN, CNN ANCHOR: The profit's up 68 percent but here's what my question is. The price of crude goes up 31 percent over a specific time period. How come the price of gas went up 45 percent I mean, why wouldn't it goes up a little closer to 31 percent?

HOFMEISTER: Well, it's an entire supply and demand relationship. What happened in the most recent period is we had a 25 percent - in the U.S. a 25 percent supply disruption where, you know, some nine or 10 refineries were shut down after Katrina and then after Rita, several more were shut down and they haven't all come back up yet so we're not producing as much oil for American people as they need right now and that pushes the price up.

O'BRIEN: There's been a theory, and we heard it a couple of times in the testimony yesterday, that the high prices actually helped consumers. Because they brought about lower prices eventually.

HOFMEISTER: Well, what happens is with the high prices, people choose not to buy. When people don't buy that increases the available inventory and as the available inventory sits there stations want to move it so they lower the price in order to move the inventory. We're all in the business to move product.

O'BRIEN: Is there any plan in place to help people who have -- were paying a ton of money for gas, now the numbers have come down a little bit but not as far as it could I think in most estimations and around the corner we're going to see very high heating oil prices.

HOFMEISTER: Yeah. The plan is to get as much production back up as quickly as possible. We've had people working 24/7 to get production back into the system and the best way to bring prices down is to get more supply.

O'BRIEN: Could it bring prices down quickly or is sort of this winter going to be a loss?

HOFMEISTER: It depends how cold the winter is. A very cold winter -- Keep in mind through September and October without refineries up and operating we couldn't produce inventories of heating oil. That means the inventory of heating oil are short. So if we have a cold winter, it is going to mean at least between December and January until all the refineries are operating it's going to be in short supply.

O'BRIEN: As you know, people want to legislate, though, having you do more than sort of wait and see what's going to happen, is it going to be a cold winter, can we get the refineries back online, they'd like to see and even legislate that you give a certain percentage to help offset the cost of people who are struggling to pay, any interest of doing that in.

HOFMEISTER: Well, I think if there's something about helping people in need, that's really a function of government, not a function of industry. We of course don't set policy in this country, the Congress sets policy, we follow whatever the Congress says and we always have but we really think helping people in need is the function of the entire government and the entire American people.

O'BRIEN: That my be the rub at the end of the day, people say yeah, helping people in need might also be the function of oil companies who have made 33 billion as a whole in profit, why not chip away some of that profit and help people in need this winter regardless of whether it's a cold winter and whether your refineries are back on line.

HOFMEISTER: The best thing we can do for profit is put it back in production, that's the real issue here is not enough production. One of the reasons there's not enough production is less investment in the late '90s when oil prices were low. So now the prices are high, we should be producing or investing as much as we possibly can. And any money taken away from production investment will, of course, result in higher prices to consumers later on.

O'BRIEN: Short-term for consumers then, from the oil companies, what do we get? And maybe not even what do we get, maybe people who are really going to struggle with -- low income people, what do they get?

HOFMEISTER: In the short-term, conservation is the best answer. Conservation, if we had five percent conservation in this country, we would see an immediate return to as good supply/demand relationship.

O'BRIEN: But no giving of the profit to people?

HOFMEISTER: Well, the profit has to go into the ground. That's -- in order to produce more oil in the future.

O'BRIEN: John Hofmeister, from Shell Oil Company. Nice to see you. Thank you for talking with us. Appreciate it.

HOFMEISTER: Thank you, Soledad.

(END VIDEOTAPE)

LIN: So the oil companies are making money. But you may be short on holiday cash. CNN's senior correspondent Alan Chernoff has been talking to shoppers and retailers in New York and here's what he found out.

(BEGIN VIDEOTAPE)

ALAN CHERNOFF, CNN CORRESPONDENT: Even as she hunts for holiday bargains Cindy Kilgore knows she may disappoint her kids on Christmas. Money she might spend on toys will have to go to heat the home.

CINDY KILGORE, SHOPPER: It takes away from your buying for your children for Christmas. It will be a short Christmas.

CHERNOFF: Jacqueline Dowd also will be tight nipping her purse strings.

JACQUELINE DOWD, SHOPPER: Because I have to have heat for my home. So if it's going to cost me a lot of money to pay for heat, I'm going to have to pay for the heat and not buy the gifts.

CHERNOFF: It will cost hundreds of extra dollars to turn the thermostat up this winter. The cost of natural gas, the most common fuel, is now up 50 percent from last year. Add price hikes at the gas pump as well as the economic effects from Hurricanes Katrina and Rita, and millions of American families could be facing a financial squeeze come Christmas time.

With consumer confidence in a steady decline retailers already are offering deep discounts on popular toys.

SEAN MCGOWAN, TOY ANALYST: Customers will get a great deal at a Toys "R" Us store this holiday season just like they did lat holiday season.

CHERNOFF: Shout Elmo, selling at a third off the list price.

Furby discounted 15 percent, and prices could go lower.

UNIDENTIFIED MALE: If you're looking for good items at a good price, I'd advise you late. This is the kind of year you won't find things selling out really early.

CHERNOFF: Barbie is singing the blues, sales are declining. In fact, many traditional toys are facing hard times partly because those who can't afford what their children want are buying kid versions of adult electronics, teen-tronics such as video cameras selling at less than $100 and, yes, cell phones for children.

(on camera): For most parents, the kids come first. We don't want to deny our children. So if it does turn out to be a tough holiday season for toys. , experts say it will almost certainly be worse for other retailers. Allan Chernoff, CNN, New York.

(END VIDEOTAPE)

LIN: All right, we've got some mean and dangerous weather out there to report. Brad Huffines is at the CNN weather center. Brad?

HUFFINES: Remember, Carol, when we talked about the increase threat of severe weather and tornadoes, right now we're seeing an explosion of tornado warnings northwest of Ames, Iowa.

Let me read you some of the warnings for northern Dallas County, southern Boone County. The tornado should be near the town of Madrid by about 4:40, Luther by 4:45, and Boone Municipal Airport at around 4:50. Confirmed tornado on the ground near Woodward.

Also, a confirmed tornado 11 miles southeast of Gallery which is 21 miles south of Fort Dodge, here's Fort Dodge in Iowa. Again, this storm should be near the town of Stratford by 4:40, near Stanhope at 4:50, and Webster City Municipal by 4:55.

And lastly a new area of concern just to the southeast of Sioux Falls, these are tornado warnings for O'Brien County and eastern Sioux counties these storms continue to move to the northeast at around 45 miles an hour. We expect the tornado to be around Sheldon around 4:50, storm spotters there indicating a tornado.

Watching these things develop in Iowa. We will have updates as often as necessary, tonight, Carol.

LIN: So it's going to be a busy night, Brad. Thank you.

Dangerous weather. And danger on the high seas, we're going to go live to talk about the latest pirate attacks, yes, there were more.

(COMMERCIAL BREAK)

LIN: There is a new development in the recent rash of pirate attacks on ships off the coast of Somalia. Fishermen there report seeing what's believed to be a mother ship that launches small boats used in the attacks. Joining me now from Miami with his take on the danger of pirates on the high seas and what can be done about it, an expert in cruise liner security, Kim Petersen, he's the president of the maritime security company Seasecure, good to have you, Kim.

KIM PETERSEN, PRESIDENT, SEASECURE: Thanks, good to be here, Carol.

LIN: All right. Everything we heard about the attack op the cruise liner last weekend it had to do with money, these guys wanted to board so they could rob the passengers. But you think it's much more complicated than that. What is this about?

PETERSEN: It's highly unlikely this was a piracy event. Piracy we know to be is a worldwide phenomenon. Last year alone there were 340 incidents reported of piracy at sea. And off the coast of Somalia we've had over 35 in just the period since this past march but this was probably something different. Given the location of American special forces in Djibouti about an hour to the north, the high freeboard of the ship, the speed it can sail, it's not likely these individuals were actually intent on boarding the ship and stealing the silverware, they were probably actually committing a terrorist attack. And that would not be out of character for the region.

LIN: What do you mean, what do you mean a terrorist attack, how do you differentiate that for passengers who were under attack? PETERSEN: Well, there's probably not much difference from the standpoint of somebody that was on board. But what's important here is that they were not intending to come on board the vessel and ...

LIN: What do they want?

PETERSEN: They were properly looking to commit a terrorist event and influence the political situation in the region. It's well to remember that just in the last three years, there have been two major maritime terrorist incidents within only a few hundred miles of where this incident took place.

Al Qaeda struck the USS Cole in the port of Aden and they struck the VLCC Lindberg off the coast of Aden, that was a large crude carrier.

LIN: So was that as straightforward as a terrorist attack and making a political statement on western targets or is there something more to it?

PETERSEN: There may be more to it. These are all occurring in a relatively in a short period of time and one has to wonder whether or not al Qaeda is perhaps influencing events in Somalia, since we know they've been there for several years. We've also heard about reports about oil in northern Somalia. I was in Djibouti a few weeks ago and spoke with a senior member of the Energy Ministry.

And he indicated to me there were vast oil reserves in what's called Somaliland. It may well be that the warlords that effectively rule the south of the country have come to realize that who runs the oil fields ultimately will run the country.

LIN: Uh-huh. And this could be about oil and about the shipping lanes and the American presence close by?

PETERSEN: Absolutely. And remember ...

LIN: Volatile combination.

PETERSEN: Absolutely.

LIN: All right. Kim Petersen, thank you very much. That is new, a new take on what may be happening on the high seas with these pirates, more dangerous than we think.

Well, for some players on a small Mississippi high school football team the game was everything and then the hurricane hit. But as you'll see, instead of folding, calling it quits, all Katrina did was bring out the fight in a small southern town.

(COMMERCIAL BREAK)

LIN: In case you're just tuning in we've had some tornado warnings. Brad, what do you have?

HUFFINES: In Iowa, of course, we have a tornado watch in effect presently for much of Iowa, even into southern sections of Minnesota. With the increasing threat of damaging winds and tornadoes in an area north of Des Moines just to the east of Sioux Falls, we're also now seeing the development of some of these thunderstorms and active tornado warnings now for several counties across central and northwestern portions of Iowa.

As I update you northern Dallas County, southern Boone County tornado warning, a confirmed tornado until 5:00. Also for Hamilton County in central Iowa until 5:00 as well and O'Brien county that's in the northwestern part of Iowa here. O'Brien county as well as eastern Sioux County, if you live in the northwest or central Iowa as these storms come coursing through you're under a tornado watch.

And don't forget that severe thunderstorms that develop in tornado watches can and frequently do produce tornados with little or no notice although all of these tornadoes have been spotted and sighted and are being tracked.

So again, if you live in any of those counties, northwestern and central Iowa please take shelters and we'll have updates as often as necessary as this storm develops tonight on CNN, guys.

LIN: You bet, we've got Brad Huffines through the evening and to reiterate, that's Iowa, right, Brad, not Texas. We had a banner up that said so, so thanks very much for clarifying. A very different kind of season to talk about, a season to remember. After Hurricane Katrina, there wasn't much left of bay high school in Bay St. Louis, Mississippi. But against all odds, the school managed to field a football team. Whose story is one of inspiring triumph over staggering odds. CNN's Kathleen Koch reports.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): It's the day before the game and the Bay High Tigers are getting a workout.

TREVOR ADAM, MIDDLE LINEBACKER: Just kind of ripping out sheetrock and everything.

This is us every day, morning time till evening time and then we go straight to football practice, that's it, this is our life until we go back to school.

KOCH: Schools in Bay St. Louis, Mississippi like everything else were heavily damaged or destroyed by Hurricane Katrina. But the high school football coach didn't want his team, especially the seniors, to lose their season too.

BRENAN COMPRETTA, BAY H.S. FOOTBALL COACH: These are things that they remember for the rest of their lives and I just wanted them to be able to have those memories.

KOCH: So cell phones started ringing and players started answering.

UNIDENTIFIED MALE: Our coach he was going to try to get the team together. At first, I mean, it was tough 'cause, I mean, no one had houses but, I mean, now there's the FEMA trailers.

KOCH: And the Salvation Army serving meals. Still, most players have lost 10-15 pounds since the hurricane. Two junior high students have been drafted to fill out the roster. Now, 34 instead of 72. Uniforms were donated after players came back to find what was left of the field house had been ransacked.

UNIDENTIFIED MALE: We were walking around looking like where's everything at? It was just mud and our old pads was on the floor but all the jerseys, they were gone, we saw people on the streets walking around, they had our jerseys on, they had our cleats on and everything.

UNIDENTIFIED MALE: This house back -- the white posts.

KOCH: Quarterback Tyler Brush found even less left at his house.

UNIDENTIFIED MALE: This was actually a two-story house. My room was right up.

KOCH: Right here?

UNIDENTFIIED MALE: Upstairs. Yeah. I had a balcony that overlooked the water. Most teams don't have anything to lose. We lost our homes, most people lost their cars, we don't have anything. Football's the only thing a lot of people on our team do have. Two or three hours to get away from all of this and to go out and just have fun and be teenagers again.

KOCH: There's a lot to get away from. Buddy Schulz's grandmother died in the hurricane.

BUDDY SCHULZ, OFFENSIVE TACKLE: You can take anger out just lost a whole bunch and it makes you mad and you can take it out on the field instead of walking around all day being mad.

COMPRETTA: You come out and play hard every single play.

UNIDENTIFIED MALE: What time is it?

UNIDENTIFIED MALE: Game time!

KOCH: Finally, it's game time, minus their score bored, that blew away, minus the band, the instruments ruined by the storm surge, so the Army National Guard fills in.

UNIDENTIFIED FEMALE: We need this. We need normalcy back in our life.

UNIDENTIFIED FEMALE: We're sticking behind them.

UNIDENTIFIED MALE: Doesn't matter if they win or lose, it's just getting together, having fun, that's what it's all about.

KOCH: Two field goals give the tigers an early lead but then the Friday night lights starting to out. Power boxes on the light poles were under water too long during the hurricane. They keep shorting out just like the team's energy.

(on camera): It's the fourth quarter and things are looking pretty grim, the Tigers are down by 20 points but the good news is, win or lose, they do go on to the playoffs. A final push, a touchdown with less than four minutes to play. But it's not enough. The Tigers lose 33-20. A tough blow for a team that was playing as much for the town as for itself.

UNIDENTIFIED MALE: We played hard and came up short. It hurts.

KOCH: You've been hurt worse.

TYLER BRUSH, QUARTERBACK: Yeah, yeah, I have. It's definitely -- it's nothing compared to what I've been through the past two months. I mean, at least we're out here playing football.

KOCH: And thanks to their winning record, they'll play more football, but not on the hometown field.

COMPRETTA: Going up to Mendenhall, OK, we got -- hey, look, anything can happen once we get to this point. We're good enough to play with anybody in the state, okay?

I can't imagine a season topping this one as far as surprises and as far as just having a group of guys like this. They're like men now. It's been something to see that happen.

We have to go on the road, but that's OK, at least we get to keep on playing until somebody knocks us out.

KOCH: (voice-over): Kathleen Koch, CNN, Bay St. Louis, Mississippi.

(END VIDEOTAPE)

LIN: Now, in a different game, last night, the season to remember came to an end. The Bay High Tigers lost by a single touchdown last night in the first round of the playoffs. Now, true to form, the Tigers still had a chance on the game's final play. We wish them well next season.

Now, using the power of the brain to heal the body. Coming up in the next hour of CNN LIVE SATURDAY, we are going to explore the unexpected health benefits of meditation.

Now, at 7:00 Eastern on ON THE STORY, CNN's front line correspondents take you inside the stories of the week including the attacks in Jordan.

And then at 8:00 Eastern CNN takes a look at the 25 most important pop culture moments from the past quarter century.

CNN LIVE SATURDAY continues right after this.

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