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The Story Is with Elex Michaelson

Years After "We Are The World," Stars Record "The Next Verse"; Southern California Braces For Major Storm; Missing Girl Found Dead, Mom Arrested; Netflix Series Follows Auction House Dealing Rare Items; FBI Discussed '10 Co-Conspirators' after Epstein's Arrest; No Democratic Frontrunner to Replace Newsom; Data Centers Powering AI Spark Controversy. Aired 12-1a ET

Aired December 24, 2025 - 00:00   ET

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


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ELEX MICHAELSON, CNN ANCHOR: IHeartRadio stations on Christmas Day. Get more information about the movement@100billionmeals.org. A big thanks to Laura Coates for letting me sit in her chair as she enjoys some holiday time off. A big thanks to her team for helping to produce this bonus hour of the story is, great job to all of them. Now it's time for my regular day job and the regular two hours of The Story Is which continues right now.

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UNIDENTIFIED MALE: The story is atmospheric river, an unwanted Christmas present for Southern California. Fear of floods, mudslides, power outages, and more. The story is gruesome discovery investigators find a girl's body in Utah six months after she went missing. Why her mother is the murder suspect?

The story is how much for Pokemon? Logan Paul is with us along with his multimillion dollar Pokemon card. Plus an update on his brother who broke his jaw in a fight this weekend streamed on Netflix.

(END VIDEO CLIP)

UNIDENTIFIED MALE: Live from Los Angeles, who's Story Is with Elex Michaelson.

MICHAELSON: And welcome to this hour of The Story Is. I'm Elex Michelson live in Los Angeles. And here in Southern California, a major storm system is set to dump months worth of rain on the region in the coming days. And there is a quote, high risk of flooding level 4 out of 4. Millions of people across L.A. and the surrounding areas fall under this rare threat. Evacuation orders and warnings have already been issued to at risk communities where flooding and high winds could also trigger mudslides and debris flow. Experts predict at least 9 inches or nearly 230 millimeters could fall in less than a day in some areas and Los Angeles could potentially get hit with nearly half a year's worth of rain just as weak. This follows a deadly storm that brought intense floods to Northern

California over the weekend. I want to bring in Captain Adam Van Derk -- Adam VanGerpen who is with the Los Angeles City Fire Department. Thanks so much for being with us live here on The Story Is.

What are you looking for tonight and the days ahead?

CAPT. ADAM VANGERPEN, LOS ANGELES CITY FIRE DEPARTMENT: Yes. So right now we are all hands on deck. We are really monitoring the weather. We're anticipating around midnight to be some of the heaviest rain coming in. So we are monitoring that through our emergency operations center.

Our fire department has resources that are pre deployed. We are patrolling the burn scar areas. LAPD partners have been out there. They've been doing some door-knocking in the most susceptible homes. They've door-knocked on 126 homes. And we've been issuing evacuation warnings for the people in the burn scar areas.

MICHAELSON: People leaving?

VANGERPEN: So we have been -- people have been heeding that. If they can't get a hold of them, and then they follow up and make sure that they do get that notice.

MICHAELSON: As we know, there was some criticism that in some of those areas, there were not enough trucks pre-deployed before the fires of January 7. That not everybody was brought back to duty. What's the staffing like now? Is everybody in?

VANGERPEN: Yes. So we have pre-deployed. We have augmented staffing. We have additional fire resources standing by. We have a strike team which is consists of five off roading vehicles that are being paid for by the state. They're through the Office of Emergency Services. So we have additional Swiftwater team standing by our search and rescue. So we have ample resources right now to respond immediately if needed.

MICHAELSON: So you said some of the really bad rain comes around midnight tonight. But this is a multi-day event which makes it particularly concerning. What are you most sort of fearful in? What period of time are you most concerned with?

VANGERPEN: Well, what we're concerned about is when we get the massive influx of rain. So if we get an inch, an hour or maybe 2 inches per hour in very concentrated areas. And it's not just our burn scar areas, it also can be any of our mountainous areas. So the burn scars are most susceptible. But we're concerned about the Palisades fire, the Sunset fire, and the Hearst fire, all those burn scar areas.

MICHAELSON: Because those are areas where the ground really can't keep that water there. And so then you just start having mud flowing, and once that starts happening you've got real problems.

VANGERPEN: Yes, because we're still less than a year. So it has not had time to have that regrowth yet. So it is a lot more susceptible to have mud and debris flows in those burn scar areas. MICHAELSON: So what's your message to people tonight? Because what's

complicated, like last night, one of the messages came out was like don't leave your house and it's Christmas week. Like people want to go to grandma's house. They want to be able to spend time with their family. Is that realistic?

VANGERPEN: Yes, well what we want people to do is we want people to slow down, leave yourself lots of time. If you do need to travel, we know it's the holiday season, people need to travel. If you need to travel, then leave yourself plenty of time to get where you're going. Don't drive through standing water.

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They say if you need to go around, then go around.

MICHAELSON: Turn around, don't drown, right?

VANGERPEN: Yes. Turn around, don't drown. If you see downed wires, always consider them energized because there could be downed wires. So if people just need to be on heightened alert. And if you can avoid driving on the coast, avoid the coast, avoid driving in mountain areas if possible, maybe go a little bit longer way around if you can avoid some of those hillside areas.

MICHAELSON: And every single year in these situations, we see people that try to go through the water, especially on the freeways, that doesn't really work. And we also see people, frankly, in homeless encampments near the L.A. River who sometimes need rescuing. And so hopefully we don't have that situation happening as well.

VANGERPEN: We want people to stay out of that stay, you know, don't even be near the river at all. That's where we do a lot of our rescues.

MICHAELSON: Thank you very much. Best of luck in the days ahead. We appreciate your guys hard work each and every day, but especially this week.

VANGERPEN: Thank you.

MICHAELSON: Now to this confusion, outrage, and more questions. The reaction after the Justice Department released a new trove of heavily redacted Epstein files posted nearly 30,000 documents related to the convicted sex offender that still is in all of the files that they have been mandated by law to release several days ago.

This batch includes many more mentions of Donald Trump than the previous release, including a note that seems to have surprised a federal prosecutor. He wrote in a 2020 email that Flight records show that Trump traveled on Jeffrey Epstein's private jet at least eight times, which is more than had been reported or that prosecutors were aware of. Trump has not been accused of or charged with any wrongdoing related to Epstein.

Justice Department claims, quote, "Some of these documents contain untrue and sensationalistic claims against Trump." But the documents were released without explanation or context, and experts say that makes it very difficult to tell. What's authentic? What's not? What's really even here?

Files also contain FBI references to 10 conspirators of Epstein's. CNN's MJ Lee has more on that angle.

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MJ LEE, CNN SENIOR NATIONAL ENTERPRISE CORRESPONDENT (voiceover): The Justice Department disclosing tens of thousands of additional pages of documents related to convicted pedophile Jeffrey Epstein. Among the redactions in those documents, names of Epstein's potential conspirators named by federal authorities around Epstein's 2019 arrest. That omission widely criticized.

Also redacted names of some government officials, including federal prosecutors involved in some of the early criminal investigations into Epstein, leaving in the dark identities of officials who helped to negotiate the highly controversial non-prosecution deal that Epstein received in 2008.

The DOJ has not explained why potential conspirators' and prosecutors' names would require redactions. Meanwhile, one document from a lawsuit filed in the U.S. Virgin Islands against Epstein's estate in 2021, making the rounds for appearing to have botched redactions.

Some text that is blacked out when copied and pasted into a document, revealing that Epstein's lawyer had signed checks for quote, "over $400,000 made payable to young female models and actresses." But CNN's review of the Virgin Islands docket indicates that the botched redaction occurred years ago.

The DOJ simply republished the flawed file. Another major source of concern, information about Epstein victims and survivors whose names are unredacted and visible throughout the files. One woman who identifies as Jane Doe, telling CNN she was mortified to see her real name appear throughout the Epstein files. She's contacted the DOJ multiple times to ask them to fix the error. As of Tuesday, her name still appears in the files. But CNN did find one document where her name is now redacted.

UNIDENTIFIED MALE: The statute also requires us to protect victims.

LEE (voiceover): But many Epstein survivors and victims and lawyers representing them expressing fury over the incomplete release and slamming what they say are abnormal and extreme redactions with no explanation.

JENNIFER FREEMAN, ATTORNEY REPRESENTING EPSTEIN SURVIVORS: It's victim identities, national security, or ongoing investigations. Those are the categories on which they are permitted to withhold. But they're withholding. Sounds like they're withholding more than that.

LEE (voiceover): Five files released overnight Tuesday morning containing multiple new references to Donald Trump, who has not been accused by law enforcement of any wrongdoing related to Epstein. Inconsistencies related to the redaction of Trump's name further fueling questions about the extent of the president's past relationship with Epstein.

In one document, the DOJ redacting Trump's name. But in another posting of that same document, Trump's name is visible.

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LEE: And Elex, just to make one more point about the Donald Trump references that we see in these Epstein files. According to the Justice Department, there are some untrue and sensationalist claims about Donald Trump that were apparently submitted to the FBI right before the 2020 election. And the DOJ is saying that they are choosing to release these kinds of files anyway for the sake of transparency. Back to you.

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MICHAELSON: MJ Lee reporting to us from Washington. Thank you, MJ.

Speaking of Washington, the Supreme Court has rejected President Trump's request to deploy the National Guard to Chicago in order to protect ICE agents. The court said in its unsigned order on Tuesday, quote, "At this preliminary stage, the government has failed to identify a source of authority that would allow the military to execute the laws in Illinois." That decision marks a significant and rare loss for the administration and could jeopardize deployments of the National Guard to other cities as well. White House spokesperson said the ruling will not stop Trump's effort to, quote, "safeguard the American public."

The mother of a missing nine-year-old girl from California has been arrested on a charge of first degree murder. Authorities say the remains of Ashlee Buzzard's daughter, Melody, were discovered in a rural area of southern Utah. Melody was last seen on October 9th near the Colorado, Utah state line during a road trip with her mother. She was then reported missing by a concerned school administrator on October 14th. Authorities say they have recovered a significant amount of evidence connecting Ashlee Buzzard to that killing.

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BILL BROWN, SANTA BARBARA COUNTY SHERIFF-CORONER: Melody deserved a far better life than she had. We will honor her memory by ensuring that every step of this process is handled with care, compassion, and a steadfast commitment to justice.

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MICHAELSON: Joining me now here in LA is Steve Moore, CNN law enforcement contributor and retired FBI supervisory special agent. Welcome back to the show.

STEVE MOORE, CNN LAW ENFORCEMENT CONTRIBUTOR: Thanks for having me.

MICHAELSON: What stands out to you from this investigation?

MOORE: I think what stands out is that the FBI and Santa Barbara County waited until the body was found to take this, to arrest Ashlee, the mother. Because, you know, once you arrest somebody, the clock starts. A trial has to, you know, you have a right to a fair and speedy trial.

So they probably knew that she was not going to be a threat to anyone else. And so they waited until they had the body.

MICHAELSON: How did they do this? How did they figure this one out?

MOORE: Well, first of all, they knew where the body was going to be within a certain amount of acreage or miles. But what they do is things like, you know, if this is one of those rental car agencies that has the GPS that has a memory in it, they will know the exact route that she took and where she stopped, this being Ashlee. And so what agents will do is follow that route, go to all the fast-food places, all the restaurant, all the places where her credit cards would have been used, and then determine when she stopped buying food for two and when she started buying food for one. These are very significant pieces of evidence.

MICHAELSON: Do we have any sense of her motive, why you would. Why you would do this? They say it appears that she had a gunshot wound to her head.

MOORE: Yes, and hard for me to talk about this. I mean, you're required as an FBI agent to talk about these things logically, and I don't want it to come off sounding callously -- callous. But I'm not surprised because she was going to kill her daughter, and she probably used the gun to make it quick and unexpected.

As for her motive, you know, we always used to say, if you can understand why they did it, you'd be a mess, too. I think likely this is going to come down to custody fears, and if I can't have her, no one can.

MICHAELSON: And in terms of, you know, what happens next. They say they have a lot of evidence here. Next is the trial, right?

MOORE: Right. Next is the trial. And they didn't want to go to trial without a body. I mean, you know, the juries today are so CSI educated that they are going to expect a body.

So now that they' got the body, they took due diligence to make sure that all the evidence aligned. And I'm sure they've got three-quarters of their case already ready to go.

MICHAELSON: Meaning before they got the body, they -- yes.

MOORE: Before they got the body, they said, let's get ready to go as soon as the body's found. And they knew it would be not too long. As soon as the body's found, let's take her down.

MICHAELSON: Just think about that poor little girl, and to be killed by your own mother, potentially.

MOORE: If it didn't bother you, wouldn't be normal.

MICHAELSON: Yes. Steve, thank you very much. Obviously, it's an upsetting case, but good to see you, and happy holidays to you and your family.

MOORE: Yes. Thank you.

MICHAELSON: Now to the U.N. Security Council, where Russia and China are criticizing the U.S. pressure campaign against Venezuela, Moscow, and Beijing, accusing Washington of violating international laws and trying to impose its will on the region.

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Russia says the U.S. blockade of sanctioned oil tankers from Venezuela is a, quote, "act of aggression." Venezuela's ambassador described the U.S. pressure as the greatest extortion in his country's history.

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SAMUEL MONCADA, VENEZUELAN PERMANENT REPRESENTATIVE TO THE U.N.: The illegal use of state force to carry out theft on the high seas is worse than piracy. Worse than piracy.

MIKE WALTZ, U.S. AMBASSADOR TO THE U.N.: Why have sanctions either bilaterally unilaterally, or backed by the international community if they're not enforced, will the United States under President Trump is enforcing them international waters, otherwise, they are just empty words.

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MICHAELSON: The U.S. Military has seized two oil tankers in the region over the past two weeks and has been pursuing a third since Sunday. Security Council meeting follows months of U.S. strikes against alleged drug trafficking boats which have killed at least 105 people.

Pope Leo is preparing for his first Christmas since becoming pontiff. He's due to deliver his traditional message to the world on Christmas Day, where he's expected to address various global conflicts. The Pope has already called for a Christmas ceasefire in Ukraine. He says he's saddened to hear Russia has refused a 24-hour truce for that holiday.

Meanwhile, Russia launched a massive aerial attack on Ukraine overnight. President Zelensky says at least three people were killed, including a four-year-old child. Officials say the attack hit about half the country and left some areas completely without power.

This latest bombardment comes after a fresh round of peace talks wrapped up over the weekend in Miami. Zelensky has signaled some progress, but Moscow says there was no major breakthrough.

Coming up, proof that we cover it all here on The Story Is from Ukraine and Zelensky to Logan Paul and Pokemon. Sports memorabilia, people willing to pay millions for this, the most valuable Pokemon card ever. Logan Paul joins us to talk about that, his brother's big fight over the weekend, and more when we come back.

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MICHAELSON: Logan Paul featured in multiple episodes of King of Collectibles. The Goldin Touch this season. It follows Ken Goldin's, ability to sell a wide variety of collectibles. Season three just dropped on Netflix.

Each episode tells the stories behind some of the most unique items in the world of collecting. In addition to investing, Logan Paul has tens of millions of followers online. He's a YouTube star, professional wrestler, an entrepreneur, and a proud parent. With me now is Ken Goldin and Logan Paul.

Welcome to The Story Is for the first time, congrats on the new show.

KEN GOLDIN, FOUNDER AND CEO, GOLDIN: Thank you very much. I appreciate it. Glad to be here.

MICHAELSON: All right, so we saw in there what was around Logan's neck, which is now Ken, in your possession. Show us what we're talking about here.

GOLDIN: So this is the most coveted trading card in the world. And it does come with the actual special necklace that Logan built for it. To explain the importance of this as I show it, Pokemon is the world's largest franchise, bigger than Star Wars, bigger than Disney. And Pokemon cards have gone up crazy even compared to sports cards over the past 20 years, beating the S and P by 3,000 percent as an example.

This is the holy grail of all Pokemon cards. And when I say that the Illustrator is the number one card, it's the most sought-after card in any grade. But what everybody really wants is a PSA 10. And this card is a one-of-one singular copy of the PSA 10.

So it is the most popular card in all of Pokemon, the most well known because it's the Holy grail and it's the only one graded a 10. Logan bought it about three years ago for $5.3 million, and the market has probably gone up three to four times since he made that purchase.

So I'm very pumped to have this and have it not just part of the show, but literally. We did a live transaction right on the show, and it's going to be coming up for auction in January, closing in February for the 30th anniversary of Pokemon.

MICHAELSON: That's so wild. And Logan, talk to us about when you sort of stop seeing Pokemon as a hobby and started seeing it as an investment opportunity, and your love of Pokemon.

LOGAN PAUL, ENTERTAINER, ENTREPRENEUR, AND PROFESSIONAL ATHLETE: So, dude, Pokemon is like one of the top three loves of my life. I have one tattoo on my body. It's a Squirtle. He's a water type starter Pokemon. And I got the tattoo before I started collecting the trading cards.

When I realized that collecting the trading cards scratched that nostalgia itch for me because I was something I'm passionate about. I could make content out of it, which, as a social media influencer, content creator is my job, and it's what I love to do. And it was a viable business model because this is an asset class that historically has generated a significant amount of returns. It completed what I like to call the trifecta, and it was the perfect industry for me to sink my teeth into.

And I went all in four years ago by buying this card and set a Guinness World record for the most expensive Pokemon card sale for $5.3 million, because it really is the only one in the world.

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MICHAELSON: And Logan, talk about the differential for Pokemon investment compared to even just the S and P 500.

PAUL: Yes, I mean, well, the numbers are staggering. As Ken said, in the past 20 years, Pokemon has outperformed the S and P 500 by upwards of 3000 percent. These cards are appreciating like crazy. The market is hot. And while the stock market return on putting your money in a bank with interest, it can be a strategic conservative investment.

There are ways to invest in asset classes that may mean a little more to you and have a higher potential of generating returns.

MICHAELSON: So, Ken, when do you know now is the right time to sell? Because obviously, that can be a tricky strategic decision. And that's something people come to you for.

GOLDIN: Yes, I mean, look, as they say, nobody rings a bell at the bottom and nobody rings a bell at the top. And I don't think we're at a top. I think that there's so much money coming into all of these collectibles that we're going to have a very nice long run. But to me, you always want to be a seller when the market is good, when there's an appetite for it, when you see people spending significant sums of dollars on trading cards.

If he came to me six months later and said, I'm ready to sell it now, he might have missed the optimal time.

MICHAELSON: Yes, well, there's almost nobody in the world better at promoting and marketing than Logan Paul. Congratulations on that. Either you or your brother, maybe one of the two. We just saw you guys this weekend.

Obviously, the big fight he went up against, you know, Joshua, Anthony Joshua, who was significantly bigger, broke his jaw in a couple places. Gave a real valiant effort. We saw you right there ringside. We saw you in the hospital with him afterwards. What was that experience like for you? Take us sort of inside that day. PAUL: Yes, man. Being Jake Paul's brother, is truly my greatest

blessing in life. I think he's just an amazing entertainer and showman. And I was sitting ringside watching this fight as close as anyone could be. And I truly couldn't believe what I was watching because you have this kid who was born and raised in Ohio, was an absolute delinquent, like a failure on paper. 1.6 GPA.

My mom's laughing in the back. He's bugging on him. But this kid, nothing about who he was showed who he could become. And all of a sudden, he's boxing a two-time heavyweight champion of the world, an Olympic gold medalist who's six inches taller and 50 pounds heavier than him. And like, oh, my gosh, it's round two. That was three. Now it's four. Holy crap, he's in the sixth round.

But damn, he's getting tired. It wasn't fair. It's simply not a fair fight. I don't know how -- I don't know how you can put it otherwise. He bit off more than he can chew and he broke his jaw.

MICHAELSON: And how's he feeling?

PAUL: He's feeling good. His jaw hurts a little bit. He said it was like there was a baseball in there. But he's feeling good, man. His spirit is absolutely incredible. It's unbreakable. You can break his jaw, but you can't break his spirit. As I said on my Instagram post.

MICHAELSON: Yes, and you've got quite the spirit. Also, when we see you in the wrestling ring, I'm wondering, Ken, when you see his wrestling moves, are you intimidated to not do a bad deal or anything with him because you know he could take you down?

GOLDIN: Look, I know Logan's going to do a good deal. I mean, obviously, the first time I saw him wrestle, it was like, oh, my God, I can't believe how athletic and how much training that he had to put into that to be able to perform and do the athletic moves and the wrestling moves that he does in the ring.

He has a vision, and he's an expert at what he does. And he was a pioneer in social media. So people look at him and go, oh, he's a goofball. He's this. He's that.

No, he's frigging smart and he's got a good business mind on him, and I love working with him. Honestly, he's out of everybody I have in the shows. I mean, I've got some longtime friends, but he is such an engaging personality and you ask him about collectibles, he can talk for hours without me saying a word.

MICHAELSON: And lastly, Logan, sounds like your mom's in the background. Maybe a dog in the background as well. You also are so proud of being a father and a husband. And this year, if they want to give a little cameo, that's fine.

Hi there. Hi, mom. How are you doing?

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PAM STEPNICK, LOGAN PAUL'S MOTHER: Hi. How are you guys? ELEX MICHAELSON, CNN ANCHOR: Talk about your pride in your son.

PAM STEPNICK, LOGAN PAUL'S MOTHER: Oh, my gosh. I could go on for hours, too. Like, he can talk about Pokemon. I can talk about the pride in my son, Logan. He is incredible. He always has been. He was incredible when he was younger. And he's just built his career.

LOGAN PAUL, ENTERTAINER/ENTREPRENEUR/PROFESSIONAL ATHLETE: This -- this is -- It's too much gassing up. Between her and Ken, guys, I can't handle it. I can't handle it, because I've got to stay humble. I've got to -- you know me, as much as -- I think I've -- I've got to stay humble.

MICHAELSON: How has -- Logan, how has -- how has -- Logan, how has fatherhood changed you?

PAUL: I think I'm -- I think I'm a little safer and a little softer with my decisions in life.

MICHAELSON: Well, merry Christmas to you and your family. Clearly, the celebration has already begun. Congratulations, Ken, on the new show.

Reminder, everybody. That show, "King of Collectibles: The Goldin Touch" is now streaming on Netflix. And best of luck with that auction. We'll see what happens.

PAUL: Thank you, dude.

MICHAELSON: Thank you both. Thank you both, gentlemen.

KEN GOLDIN, AUCTIONEER: Thank you.

PAUL: Nice to see you. Thank you very much.

MICHAELSON: Really appreciate the time.

We'll be back with more of THE STORY IS right after this.

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MICHAELSON: Welcome back to THE STORY IS. I'm Elex Michaelson. Let's take a look at today's top stories.

Pennsylvania's governor says two people are dead after a fire and explosion ripped through a nursing home near Philadelphia. Police say five people may be missing. The others are injured. Cause of the explosion remains under investigation.

Governor Josh Shapiro says authorities believe it may have been a gas leak.

The Supreme Court of the United States has dealt a rare but major loss to the Trump administration.

On Tuesday, the court rejected President Trump's request to deploy National Guard troops to Chicago in order to protect ICE agents. The ruling limits President Trump's options if he wants to continue to deploy soldiers into cities.

The latest release of the Epstein files has sparked more questions than answers. At least, that's according to Senate Democratic leader Chuck Schumer.

One of the concerns is about possible Epstein coconspirators. Internal FBI messages asked for a status update on ten people believed to be working with the convicted sex offender. Those names have been redacted, and no more details have been released.

Joining me here in L.A. to talk about all things politics is Melanie Mason, senior political reporter for "Politico."

Melanie, welcome back to THE STORY IS.

MELANIE MASON, SENIOR POLITICAL REPORTER, "POLITICO": Thanks for having me.

MICHAELSON: Let's start with the Epstein story. This idea of ten coconspirators is kind of wild for a lot of people, especially we don't know who they are. How does that potentially change the political dynamic?

MASON: Well, I mean, first of all, it is very intriguing, right? And as you said, it raises more questions than answers, as Senator Schumer said.

I think that one of the things, as we see this drip, drip, drip of these documents coming out, is that it just lends more oxygen to this news story, as opposed to doing one big document dump where people would be flooded with this information. It gives people more time to sort of pore through all of these documents and ask these questions.

MICHAELSON: Is it possible, though, that the drip, drip, drip leaves people so exhausted by the whole thing that it feels like old news whenever this damaging thing comes out about President Trump? Or maybe it will never come out about President Trump.

MASON: Look, it's possible, but there's something about this news story, right? There's something about the Epstein case that I think has just captured sort of the fascination with people.

I mean, originally it was with -- with President Trump's base, right? With people who were convinced that there was some conspiracy of a cover-up.

And now, of course, you see Democrats also hopping on, because perhaps this is damaging for Trump. But it's had remarkable staying power in a -- in a time where I think news stories kind of come and go; this one seems to have lasted. So, I think that the public's tolerance for this is quite high.

MICHAELSON: Yes. And there are so many different elements of why that is. And ultimately, of course, it's not a game. It's about victims, and hopefully, that they can get some answers, because what happened here was really, really horrible.

Meanwhile, a big decision out of the Supreme Court, they deciding against President Trump when it comes to the National Guard in Chicago. We know there could be similar cases down the road in California and other places who are suing over this.

But interesting and notable that the conservatives, at least a couple of them, siding with the liberals on this.

MASON: Well, I think it's particularly interesting, because that's just not how things have been going for President Trump at the Supreme Court. I mean, this was his first major loss at the highest court in months.

And I think that there was an assumption now with people that the conservatives on the court would always be siding with the president. I think the president may be assumed that.

So, I think my question is now is, now that there is this roadblock that has been thrown up, what does this do for -- for the president's appetite to move forward with these types of enforcement actions?

We know that he talks about doing this now in red states like Louisiana or Tennessee. And maybe that's a situation where the governor would welcome --

MICHAELSON: Right.

MASON: -- this type of interference.

But if you're talking about in blue states where it really seemed like he liked to show a message in places like Los Angeles, does he have the same appetite, particularly as his polling numbers on immigration have seemed to really dip in the last couple of months?

MICHAELSON: Or do you do it as a middle finger, even to the Supreme Court, which would be interesting, as well. He hasn't really publicly battled with them, at least so far.

And it also raises questions about other issues like tariffs, birthright citizenship, things that you could potentially see at least some of the conservatives on the court siding with the liberals to potentially stop President Trump on.

MASON: Well, and we know that tariffs, in particular, is on his mind, because he did have a Truth Social post about the current economy, the GDP numbers that just came out and sort of saying to the Supreme Court, like this is because of tariffs. He specifically mentioned the Supreme Court in that post.

I think he's very much looking at that case, because these are now issues that I think he sees as legacy issues, and we're getting closer and closer to these ultimate decisions coming down.

[00:40:02] MICHAELSON: And of course, President Trump refers to "tariffs" as his favorite word and something he has been talking about for decades, well before --

MASON: Right.

MICHAELSON: -- he was ever president, or potentially even thinking about running for president.

You and I cover California the most, and so let's talk about a great article you wrote for "Politico" this week called "The Incredible Shrinking California Democrat."

And you had a conversation with Willie Brown, who's in his 90s, former mayor of San Francisco, perhaps the most quotable person in California politics ever, maybe other than Jerry Brown, who has the same last name. And you -- what did he tell you about California Democrats?

MASON: Well, I think we were talking about the context of the current governor's race to succeed Governor Newsom and how muddled it is; that there really doesn't seem to be any standout, particularly among the Democrats.

And I asked him why this is, and he was pretty blunt about it. He said, well, the quality is not there. You know, the candidates just aren't good enough.

And when I asked him why that was, I thought his answer was so interesting. He basically said that Democrats had been so successful in winning elections in this state that they've actually harmed themselves in terms of sort of creating or cultivating these political athletes. They don't have enough competition.

And so, I thought it was so interesting to see somebody who has, you know, built the party in the -- in the state, like he has, almost lamenting how successful they've been structurally, because you're not actually seeing the type of -- of talent rise to the top.

MICHAELSON: Because you used the word "meh," as sort of the state of -- of what we're seeing in a race. And people keep getting into the race, because they think there's an opening, because there isn't necessarily somebody taking the field by storm.

And you think of California politicians have often had star power. Gavin Newsom, somebody who could be the Democratic nominee. Kamala Harris was the last Democratic nominee. Jerry Brown, a larger-than- life figure in terms of -- in terms of how he was as governor here.

But we don't necessarily see that in -- waiting in the wings. And this is the state with Hollywood. And yet, we don't have a star.

MASON: Well, let's talk about why this matters beyond California's borders, right?

MICHAELSON: Yes.

MASON: Because it's not just a provincial concern for us on the West Coast.

In California, politicians are national figures. When you think of somebody like Gavin Newsom, Kamala Harris, Nancy Pelosi --

MICHAELSON: Nancy Pelosi, right.

MASON: -- Dianne Feinstein, the late Dianne Feinstein, or Barbara Boxer when they were in office, these were national figures and quasi sort of heads of state. I mean, California somewhat operates as a nation state.

MICHAELSON: Right.

MASON: You see these governors go abroad. You've been abroad with some of these governors.

And the idea that you then don't have somebody that maybe has the gravitas, that has that sort of star power. I think that that is really sort of consequential, not just for us here in California, but I think the Democrats, writ large, as they're trying to look for the next leader of their party.

MICHAELSON: And a reminder that some of these states where there isn't a lot of competition may actually hurt Democrats when they go on the national stage.

And we'll see for Governor Newsom, who hasn't had to run in a lot of competitive races, how that could impact him if he runs for president.

MASON: Come on. If he runs for president, sure. I think we all have to -- have to qualify that right now.

MICHAELSON: Melanie, thank you. Of course, we can check out your work in the "California Politico Playbook," among other places. We appreciate it. Happy holidays to you.

MASON: Happy holidays. Thanks.

MICHAELSON: Coming up, the divide over data centers.

(BEGIN VIDEO CLIP)

ABIGAIL LINDSEY, PROTESTING DATA CENTER: I wasn't aware that it took this much resources. I was naive; I was ignorant on it. And now I'm not.

(END VIDEO CLIP)

MICHAELSON: The A.I. boom has led to an explosion of these facilities, but local residents warn of a major data center downside. Ed Lavandera, with us next.

(COMMERCIAL BREAK)

[00:48:05] MICHAELSON: Comedian and actor Russell Brand has been charged with a new count of rape and another of sexual assault. British police announced the charges on Tuesday.

Brand was already facing five sex abuse charges for alleged rape and sexual assault, going back more than two decades. He pleaded not guilty to those counts in May and is set to go on trial in June.

Brand will appear in court next month in connection with the new charges.

Across the U.S., we're seeing a surge of data centers being built for A.I. They store all the digital information that help power A.I.

But there's division among local residents about the costs of these new facilities. CNN's Ed Lavandera explains.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Shame! Shame!

ED LAVANDERA, CNN CORRESPONDENT (voice-over): When a company called Cloudburst broke ground on the construction of a new data center in central Texas, angry neighbors disrupted the event.

UNIDENTIFIED MALE: People over profit!

LAVANDERA (voice-over): The protests were led by sisters Abigail and Jennifer Lindsey.

UNIDENTIFIED FEMALE: This is a map of our area. So, this is our neighborhood right here.

LAVANDERA (voice-over): Who live across the street in this remote patch of Hays County, South of Austin.

UNIDENTIFIED FEMALE: This is kind of our sanctuary. And, you know, this is home. This is our -- where we've always come back.

LAVANDERA (voice-over): The Lindsey family moved here more than 30 years ago, long before anyone fathomed A.I. data centers.

LAVANDERA: And the data center will be where?

UNIDENTIFIED FEMALE: Right there. Right there.

LAVANDERA (voice-over): Abigail and Jennifer took us on a tour of the family's 16-acre spread.

LAVANDERA: What we're looking at here, in a few months, all of this will look totally different.

A. LINDSEY: Yes. Yes. I wasn't aware that it took this much resources. I was naive, I was ignorant on it, and now I'm not.

This is happening to people all across the country. I mean, people are really struggling with this.

LAVANDERA: One of the executives from Cloudburst said at a public meeting.

UNIDENTIFIED FEMALE: Your bank, your hospital, your doctors, all the governments they couldn't survive without a data center. So, I understand that maybe you don't want it next door to you, but it has to go somewhere. [00:50:04]

LAVANDERA: When you hear that, what do you think?

UNIDENTIFIED FEMALE: "F" you. It's a rush to market. And just to hell with the little people, you know, to hell. You don't have the power, so screw you.

LAVANDERA (voice-over): Cloudburst tells CNN the company is, quote, "committed to being a good neighbor and steward of the local environment."

The site will include three different buildings, totaling nearly 700,000 square feet in just phase one of its buildout.

LAVANDERA: Cloudburst says that they're going to have a closed-loop water system, which will help them use far less water. They also say that their facility will essentially be self-sufficient in terms of energy.

UNIDENTIFIED FEMALE: I don't think it's possible. You just got to think everything is operating 24 hours a day, seven days a week. I mean, it's constant.

UNIDENTIFIED MALE: No data center in Dunn County.

LAVANDERA (voice-over): The rapid construction of data centers are triggering fights across the country. The processing chips and data centers need constant cooling, which requires massive amounts of power and water.

A 2024 Department of Energy report estimated data centers are expected to consume between 6 and 12 percent of the country's electricity in about two years. So, the race is on to develop technology that will save the power grid and conserve water.

UNIDENTIFIED MALE: So, we have an actual server rack here.

LAVANDERA (voice-over): Which brings us to this room on the University of Texas at Arlington campus. And two Gen Z graduate engineering wizards, Sai Poondla and Braxton Smith, have developed a cooling system that could soon be deployed into data centers.

SAI POONDLA, RESEARCH SCIENTIST, UNIVERSITY OF TEXAS AT ARLINGTON: It's just going to sit on top of the chip and cool it. And this is how it sits.

LAVANDERA (voice-over): The engineers say this could dramatically cut water and electrical usage.

LAVANDERA: That's why you feel the urgency of getting this stuff deployed quickly, right?

POONDLA: Yes. By minimizing the energy that goes into the cooling, you then minimize the energy that goes into their entire data center by a lot.

UNIDENTIFIED MALE: This is from this morning. This is actually her egg.

LAVANDERA (voice-over): Perrin Hatcher bought this secluded two-acre property east of San Antonio this year. The Marine veteran and his wife say this was supposed to be their forever home.

But then they found out a company called Misai Investments bought 2,700 acres to build a data center.

LAVANDERA: So, the data center is going to be just along that long tree line over there?

HATCHER: Yes, just past these trees. About a thousand yards that way is what I was told. This is the well. This is the only way I get my water.

LAVANDERA (voice-over): Hatcher depends on a well that pulls water from an aquifer.

LAVANDERA: You're concerned that the data center is going to pull so much water out of the aquifer that you depend on?

HATCHER: Yes, exactly.

LAVANDERA (voice-over): The owner of the data center says the facility could use up to 25 million gallons of water per year, which is far less, he says, than they're allowed to extract from the aquifer.

Hatcher shows us the neighborhood Next Door app is flooded with posts from neighbors worried about the water source if the data center opens in three years.

HATCHER: Here's one right here. I mean, I literally just opened that, but I mean, it's everywhere. There's -- I mean, I've even seen petitions on here that people are posting to try to sign up to save the aquifer.

LAVANDERA (voice-over): Perrin Hatcher moved here to what he calls a diamond in the rough. But A.I. Has found him in the woods.

HATCHER: I know, come on, come on, come on, come on. I don't want to leave. Having that kind of life. And I just, I don't know. I can't see that being a future, if they -- if I have no water.

LAVANDERA: The developers of these data centers say they're providing an economic boon to these communities across the country. But there's still a great deal of division all -- over all of this.

There are some politicians who welcome the development and being part of this A.I. race.

There's also local politicians, like county commissioners, who are getting an earful from angry residents and concerned neighbors about how all of this is so quickly being built and developed. Some people have told us that it feels like the wild West in this A.I. arms race.

Ed Lavandera, CNN, Dallas.

(END VIDEOTAPE)

LAVANDERA (voice-over): It's the wild West. Ed, thank you.

Still ahead, Santa Claus is getting ready before he heads to a chimney near you. Up next, preparations kicking off in the arctic circle.

(COMMERCIAL BREAK)

[00:58:25]

MICHAELSON: The world's most visited museum has added new security measures after October's break-in.

The Louvre in Paris installed security bars on the balcony of the Apollo gallery. A crane lifted the security grille into place to seal the glass door. It is the same balcony four burglars used to break in on October 19.

They escaped with crown jewels worth an estimated 102 million bucks. Police have identified eight suspects in connection to that heist. The jewels are still missing.

Thousands of Union Berlin fans transformed the club's stadium into a sea of candlelight and song for the Christmas holiday. Nearly 29,000 people filled the stadium for the annual tradition, which began about two decades ago with less than 90 people.

It started as a small gathering has now clearly snowballed into a festive event, drawing fans from across Germany to spread some holiday cheer.

Final preparations are officially underway for Santa Claus's long journey ahead of Christmas. He was spotted in his official hometown in the Arctic Circle, setting up his sleigh, reindeers and all as he gets ready to deliver gifts to children around the world.

Santa's village is also buzzing with thousands of tourists, experience the magic of Christmas.

Thanks so much for watching this hour of THE STORY IS. The third hour of THE STORY IS starts right now.

(BEGIN VIDEO CLIP) MICHAELSON (voice-over): THE STORY IS potential weather emergency in Southern California. We talk live with the National Weather Service to map out where and when the severe storms will hit.

THE STORY IS new releases from the Epstein files raises new questions --

(END VIDEO CLIP)