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tv   Real Money With Ali Velshi  Al Jazeera  November 15, 2014 6:00am-7:01am EST

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the engineering process... >> from engineering to the factory floor... al jazeera investigates broken dreams: the boing 787 only on al jazera america sanctions are crushing russia's economy but vladimir putin has no problem spending billions to buildup its military i feel we'll tell you which nato nation should take notice before it's too late. also isil's bold new plan to mint its own money. we'll find out from a currency expert whether that is even possible. plus shine a's booming middle class has a taste for luxury and where do they find it in right here in america. we'll say look. i am jen rodgers in for ali velshi and this is "real money." ♪ ♪
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ukraine threaten to his return to opening warfare. in response the west threatens new sanctions against russia. the russians balk and flex their military muscle around the globe globe. is east-west stands off is getting worse. in ukraine, separatist rebels and ukrainian forces are fighting a new in the east of the country, already the ukrainian government claims more than 50 violations in one day of the ceasefire both sides find in september. the rebels are said to be readying for a new offensive with the help of russia. nato accuses russia of reinforcing them with weapons, thanks, and troops, russia as always denies those accusations. the situation is escalating as world leaders get ready to feet for the group of 20 summit in australia. president obama is calling on
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russia to respect the ceasefire in ukraine. british prime minister david cameron is calling for more sanctions if russia doesn't back off. the german chancellor calls reports of weapons being delivered to rebels, quote, worrying developments. but so far she's fallen short of demanding new sanctions. russian president vladimir putin who is attending the g20 meetig along with the others is likely to face a show down from western leaders at the summit he's blasting the sanctions already impose odd russia for harming the globalling economy. and you know what, putin has a point. later on we'll talk about stalled economies in germany and elsewhere, but no country's economy, exempt perhaps ukraine, is paying more for the east-west standoff that russia itself. the russian ruble has fallen 23% against the dollar in the last three months. fueling an 8% surge in prices from the same time last year. russia's central bank now forecasts zero growth in 2015.
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all that has russia's budget which depends on oil and gas revenues to funds half of it taking a hit because of falling oil prices that are down more than 30% since june. despite the hardships, russia is still spending billions to beef up military readiness around the worm. already nato says it's engaged in 10 100 intercepts of russia aircraft in europe this year alone. triple of number of 2013. and the russian air force says it's going to sends long range over flights as far afield as the arctic, australia, and the caribbean. that's bound to just worsen tensions with the west at a time when many nato members are spending less on their militaries. patricia sob ga reports. >> reporter: it's a top priority for russian president vlad lear putin modernizes the nation's armed forces an upgrade that's consumed between 3.3 and 3.4% of russia's economic output i ever year since putin came to power.
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>> they are sort of halfway through their transformation of a cold war military style conducting large scale military operations on. a smaller, lighter faster force that can try to push around their neighbors. >> reporter: western sanctions over the cries let ukraine, falling oil prices and blistering inflation are hammering russia's economy. you but so far the kremlin has not tempered its ambitious goal of bringing two-thirds of the nation's military hardware up to date by the end of the decade. while inflation will take a bite out of rush's defense budget in real terms, the kremlin is still on track to allocate more than 4% of the nation' output towards defense spending next year. a gdb commitment nato's european members are nowhere near matching. >> nato is a an alliance of 20 5eu9 corrupt kitt are yous the tasks to secure the defense of its populations. >> reporter: nato members have long agreed to spend 2% of their gdp on defense. an obligation met by the united
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states and only three european members last year. estonia, greece and the united kingdom. six the nato summit this fall, members close to russia have upped their spending commitments. with lithuania and latvia pledge to go meet the 2% target by the end of the decade and poland by 2016. but further air way, some of the other lineses biggest european members have yet to step up their defense spending. including germany. which recently suffered several embarrassing episodes involving poorly-maintained military aircraft trying to deliver support to iraq and ebola aid to afteafrica. >> in germany spends more on its defense it will signal to russia that they are serious about the problems rus russia created. >> reporter: while reports of rising russian provocations in the air and on the seas have yet to convince some of 80 owe's biggest european members to jack up defense spending, the
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alliance still boasts vastly superior military capabilities, thank in large part to the united states. patricia sob g ga. >> stepping up military exercises and troop rotation on his their eastern frank, all next week "real money" will bring all special report called the new cold wore, ali velshi traveled to europe to see first hand hour tensions between russia and nato over ukraine or rippling through countries from romania to poland to norway on monday ali reports on how it's playing out not arctic where russia is pursuing the oil and gas it depends to support its economy. here is some of what you'll see. >> the stakes of this new cold influence. they are also about money. here on the top of the world,
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the battle is being fought over energy. the arctic is home to 13% of the world's undiscovered oil and a third of its natural gas. eight nations lay claim to this fast-melting landscape, including russia, canada, and the united states. they , alongside china, are all pursuing huge reserves of oil, gas and, coal. >> russia's resurgence has been fueled by hydrocarbons that came from the subarctic, if they are to stay powerful they need more to come out of the arctic. >> in 2007, russia formally staked its claim to billions of dollars worth of arctic oil and gas deposits. two mini submarines plant aid titanium russian flag on the ocean floor under the north pole. can a and the scoffs comparing russia's play to a 15th century land grab. the move under scores the growing importance of the region to. get a first happened look are i
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headed north, way north, to the northern most town in the world, on an island in the high arctic. many nations, including russia, are eyeing this once sleepy coal mining settlement as a strategic base in this newark tick frontier. i am here in norway, we are much closer to the north pole than oslo and this is for polar bears. now here they generate electricity by burning coal and they were looking for a place to put the co two emissions the carbon die okay eyed that comes from coal. they were tee trying to find a restless czar to put turned round and called upon natural case. tune in all next week for a special five-part on "real money" with valley velshi 7:00 eastern and 4:00 pacific only on al jazerra america. there may be no bigger casualty in the economic war being waged against russia, than germany. we'll look at how sanctions have slowed the economic engine of europe coming up. plus isil and the power of
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money, we'll tell you how the islamic state could actually start minting its own coin. you are watching "real money." tell me what's on your minds by tweeting at al jazerra, also facebook.com/alivelshi, keep it here. >> an all new airplane in a once in a generation achievement of human ingenuity. >> three years late... fleet grounding... fires on the airplane... >> they're short changing the engineering process... >> from engineering to the factory floor... al jazeera investigates broken dreams: the boing 787 only on al jazera america
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>> protestors are gathering... >> there's an air of tension right now... >> the crowd chanting for democracy... >> this is another significant development... >> we have an exclusive story tonight, and we go live... russian sanctions are a touchy subject in germany. russian industry buys a lot of german equipment and the sanctions have caused a huge drop in german exports to russia. that has hurt germany's economy, the largest in europe which just narrowly avoided a recession last quarter ask. germany is not the only european economy struggling. the entire euro zone is barely getting by. nick spicer reports from berlin. >> reporter: europe's largest economeconomy is growing again,t
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just barely. with july to september growth in germany measured at 0.1%, still that's enough to avoid a recession. the second biggest economy in europe, france, was a bigger surprise with 0.3% growth the first increase this year. it's all relatively good news that could help change investors' mind sets. >> realizing even when france which is said to go lagging with reformreforms and such, even the recovery is bound to set in with moderate rates, but then it reassures investments might be just because the euro zone is actually recovering. >> reporter: but nerve any and the euro zone face a troubled international cite amount. emerging markets haven't performed as well as hoped for and that hurts european exports then there are the sanctions against russia over ukraine and, that hurts the ability of european companies to make decisions about investments. finally, some of the big countries in the euro zone,
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notably france and italy have been reluctant to implement the reforms they agreed to during the euro zone crisis. inninincreasing talk that the cl bank may by up bonds to hem thing, but many german million dollars mps are opposed. >> translator: what's important now that we don't leave it to the ecb alone to improvement the economic situation. the ecb was already heavily involved in rescuing the euro, i see it now as a political task. the even u. government and the european commission now need to address this through investment and ending austerity. >> reporter: the german chancellor angela merkel, however, is unlikely to lends support to anymore softening of austerity policies across europe. the german government's few is france and italy, for example, must reform to return to solid, long-term growth in the future. nick spicer, al jazerra, burglary lynn. germany has been playing along with its e.u. counterparts in the russia-ukraine conflict but they need germany to take the lead in making more
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aggressive moves against russia, according to the fellow mccain institute for international leadership who joins us from washington d c. so eric, germany seem so important here in the russia-ukraine conflict, why is it so critical? >> well, i think it's fair to say, jennifer, germany has really evolved as the lead are player in the european union in the past couple of years, partly because of the economic strengths the fact that germany needs to play a leading role when it comes to, you know, getting out of european country to his agree on tougher sanctions against russia is clear. without merkel's support, it's going to be difficult for the other european countries to go ahead on a similar approach. fair to say we have seen merkel's patience with putin running out. at the same time, merkel has to balance the domestic situation in germany and many of those, including business interests, in germany are opposed to tougher sanctions, it's a tricky line
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for her to walk. >> it is a very tricky line, indeed. what is your sense of what's going to happen with merkel. if new sanctions are necessary, do you think that germany will get behind them? >> i think germany will eventually. it's clear that russia is not willing to change its policies and to change its actions in ukraine, the latest reports we have seen in the past couple of days of a growing military escalation in ukraine is very worrisome, so we have to see tougher sanctions coming from the west. sort of gradual approach of incrementally adding more sanctions hasn't really worked. i think there is a need to take tougher sanctions against russia. and nerve germany needs to play a leading role so does the u.s. for europe to go along being the united states need only needs to push europeans but help them out. one way is to offer to promote exports of gin to europe to help offset potential shortages from relying on russian gas.
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>> germany obviously can't do it alone, that brings us to talk about nato. and we heard earlier patricia sobga talking about the reduction in spending, military spending that we have been seeing in many countries. so what do you think nato needs to do to make a difference in the russia-ukraine crisis? >> well, i think there are a couple of things that made owe needs to do first of all that nato needs to rule, you know, make it clear that it's russia is doing in ukraine is unacceptable and on the one hand you need to reassure current nato allyses that they are safe, article five guarantees their security is rule sacred here and if russia would attempt to everybody move in a single inch in to nato territory, that they are not going get away with that. so that's on the one hand, and we have seen some of the results from the summit that nato had in wales in september, some really good progress, we need to implement those. but in addition to that, nato also needs to put pressure on russia. >> putin has tried though that
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nato is basically ineffective. so how does nato show that it is effective in and one are the things i know that you have thought about is you know, military exercises. troops on the ground in the baltics. is that realistic for nato? >> i think nato needs to move towards doing more, particularly in the bat tick region. i think it's not enough to just have rotational exercises of forces, you also need to consider having a shea permanent face basis of troops in the countries, in lathe wayne yeah, is estonia, lat via, poland. but in addition to that you need to see european countries. just can't be the u.s. doing it. it has to be a really trans atlantic effort of all the nato countries coming together and really reassuring the ally that his are feeling vulnerable right now. >> all of these leaders will be coming together, or many of them very soon, do you think in terms of a time line of when we will see some actual action over there that it's going to be soon or is this just going to keep dragging on?
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>> we are already seeing significant action. and especiallily coming out of the wales summit in september. nato is doing more in the region and i hope they will continue to do more of that in the coming weeks and months. especially given the deteriorating security situation not just ukraine but throughout europe in large, increasing incidents of russian airplanes flying there for nato territory and other countries in the region, i think there really is a need to have a tougher and a stronger response to some of these actions not only to reassure allies you about also to deter russia that this is really not acceptable today in the 21st censure. >> i all right, eric, very fellow mccain institute for international leadership, thank you so much. >> thank you. well, back in this country republicans have moved quick include to challenge democrats in the lame duck congress today the house of representatives approved a bill approving the keystone xl oil pipeline from canada. for six years president obama
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has held up approval in part because of opposition from environmental assists today's legislation directs the breast froze approve the $8 billion project, now the bill moves to the senate where it's up for a vote next week. if it passes and at this point it's not clear if it will, president obama threatens to veto it. up neck, if you want to start your own country, you'll need a currency. so now isil says at any point to mint its own money, i'll look at the chances of it working and what it could be worth when we do think back. >> at the height of the cold war >> we're spies... intercepting messages from embassies, military bases... >> one of the america's closest allies... >> we were not targeting israelis... >> suddenly attacked >> bullet holes... ...just red with blood... >> 34 killed... we had no way to defend ourselves >> high level coverups... never before heard audio... a shocking investigation >> a conscience decision was made to sweep it under the rug... >> the day israel
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attacked america only on al jazeera america
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>> scared as hell... >> as us combat missions end in afghanistan >> they're going to make plans for an attack. >> the only thing i know is, that they say they're not going to withdraw. >> get a first hand look at what life is really like under the taliban. >> we're going to be taken >> it's so seldom you get the access to the other side >> fault lines, al jazeera america's hard hitting... >> today they will be arrested... >> ground breaking... they're firing canisters of gas at us... emmy award winning investigative series... special episode on the front lines with the taliban on al jazeera america one of the stunning aspects of isil, is the amount of money it has. it has raised huge. as of cash from plaque market oil sales, kid p thattings and extortion. an exclusive look inside isil and found that at it's core, that has inspired so much fear is
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surprisedly corporate. down a bumpy road just a few feet from the syrian border we set out in search of isil's source of income, our guide, a 22-year-old female smuggler, her tools jerry cans earmarks for gas. in a discreet hotel room, we see how isil recrowd. our recruiter is an i.t. expert, his tool keyboard and mouse. >> on the river in istanbul, over cups of tea, we learn how isil is organized, ex-merits a syrian once employed as a syrian sales man, three people all of whom den maaed anonymity, show how the management, organization, and wealth are all depend on foot soldiers whose main motivation was income. they work for a self-declared state that might claim to fly the flag
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of islam, but at it's hard is corporate. inside syrian and iraq, ice salt lake controls dozens of oil fields. the gas is then smuggled into turkey. soldiers how it is pumped under underground pipes or they move it across the river in jerry cans. it is then transported in vans or in secret gas tanks inside of buss. >> your income depends on how much gas you bring, if you bring a ton, you make 400, $900. if you bring ten tons you make 10,000-dollar as night. >> the hotel room, over half a pack of cigarettes, a 27-year-old who wants to be known as salm revealed isil's social media. he and three others would
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spend days online, they painted isil as a paez popular and prosperous army. they disparaged syrian fighter whose oppose them as incompetent. i am thinking i am in a dream world. >> the foreign fighter whose already joined gave us their friends contact, media is the most important thing to attract foreign fighters. and create popularity. >> and try and create popularity that spans generations. isil calls them it's cubs their hans not large enough to problemmerly hold assault rifles, their minds not old enough to resist propaganda. >> a man who wants to be known as omar saw those children up close, he used to work for isil in the headquarters. >> what they work on most is recruiting children, and children are brainwashed at a young age, they become strong wills and believe they will find redemption when
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they are martyr.com. >> in connecting every aspect the groups ruthlessness. they value spilling blood. >> through fear, through promises of profits isil fills the state with people that might otherwise fight it, and today isil controls an area the size of belgium, the population is equivalent to new york city, and officials warn the war to remove isil will take years. al jazeera, turkey. get this, we learned this week that the leader wants the organization to create it's own currency. mented gold, silver and copper coins that will be called islamic denards. let's talk oa man who has helped accomplish currencies across the globe.
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he has assisted in currencies in argentine yeah, astoria, and ecuador. where he is a professor of applied economics. so, professor, you were involved with these countries when they were launching new currentsies what's the different here, since isil is not exactly recognized as a state. >> that's an obvious point. states in this day and age produce money, and isil is not a recognized state. but that's their whole purpose, or rather sophisticated politically. and they want to give all the trappings of become a state. and therefore, they want to produce money and in the send of gold and silver for example, a -- gold is already in effect kind of de facto in international community. so they have the right object shall we say. in mind, in looking at gold.
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>> so let's talk about gold, because they also say they want to get out from under the financial market, they don't want to be part of the international financial system, but what is traded more than goal is? >> well, very little except the u.s. dollar, and even the price of gold is somewhat related to the u.s. dollar when the u.s. dollar is strong, as it is right now, gold tends to be rather weak. which gold is weak now. so there's no way that gold can somehow be disentangled or a money with units of money and gold would be disentangled from the international financial system. it's just an impocket. >> you have been involved with other currencies with this one, what would be an isil favor in launching this? what will be hard for them to overcome? >> well, their whole point, again, is to have the
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symbolism of a state or a legitimate operation, so that's what is in it for them there are great difficulties of course, we don't know how they are going to acquire the gold, and silver, and to some extent if they are copper coins too. so that's point number one. they will have to find the mint someplace to mint these so that's the second problem, and then the third problem will be just to get people to actually accept and use these which in the areas they control, probably won't be a very big problem. >> so overall it seems that it is largely symbolic, but if they can secure the metals if they can get them in, is this something you can see working in the area that they control? >> no question about it. because goal is already a medium of exchange that
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is widely used, widely traded. all over the world. all kinds of buyers and sellers. all kinds of religions. every geographic area in the world, so what you are doing is take an goal andmenting it and putting your brand name on it. but as far as the purchasing power of the weight of the unit, in gold, will be concerned, that purchasing power will be the same whether it has brand a or b. >> interesting. >> all right, the co director at the institute for applied economics at john hopkins university, thank you so much. >> and next big test of obama-care starts in hours we will see the challenges ahead with open enrollment set to begin plus, what could be the end of chocolate, we will explain.
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hoar we go again. the second open enrollment period for obama-care launches again. the website was abyssesser at first, but after it was fixed about 7 million people signed up. this time around the administration expects fewer than 10 million people now so far this year, there has been a lot less hype, that's just fine with the obama administration he is a professor of health management, and a frequent guest on real money, and he joins me now, welcome back. >> your would think they might be disappointed not to have the celebrities out there talking about open
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enrollment, i think if things start out well, open enrollment starts tomorrow, if thing goss well, you will see a blitz of coverage i think the idea is let's see how things go well if it goals well let's push hard. >>dy they learn a lot last year. >> i think they have learn add lot number one, the website we will see, be uh the website by all accounts is much better. both federal and state exchanges so i think they are feeling confident the website will work. they have some experience. we have 7 million people now who are ininsurance through these who have received notices saying you have to renew. they are expecting most if not all to renew. and the goal is let's try to sign those up too. >> that is the trick, how to get to those people, how will they do that? how does success look like from those people. >> well, it is interesting the budget
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office estimated about 13 million would be enrolled in the 2015, and then obama administration says maybe 9 1/2, maybe ten, i think if they get to 13 they will declare success. open enrollment runs from november 15th to february 15th, but if you want to have coverage you have to sign up by december 15th. there's going to be a big push. you will see the celebrities. >> they are going to come, you will see it. >> so basically you are saying the system is working then we will start to get that big push. >> that's right. >> and there is a penalty for not having insurance, and that goes up as well. >> do you think that will make a difference. >> first year the penalty was $90 on 1% of your income, this year it is up to 300 went $5 or 2% of your income, so it is a bigger stick there's going to be a combination of the stick in the carrot.
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we will encouraging you to sign up, last year there were 76 screens you had to go through on the federal website, this year, 16. much simpler, much easier, all right, sign up, you will get some benefits there's more health plans than there were last year. >> more competition, premiums reasonable. >> one thing in year, we have just had midterm elections a lot of noise coming out of congress, and we also have some supreme court action on the calendar. how do you think all of that impacts people and also the goals that the administration is setting? >> relatively few people i think are following what is happening in the supreme court, but it could have an enormous effect on the act there are 37 states in which they get it through the federal exchange. the street could hold, i
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don't expect they will, but they could hold they will be not be eligible for federal subsidies. so that is a major major thing to follow down the road, right now we just have to see what happens with open enrollment, thank you. >> thank you so much. >> well, an amazing come back for microsoft. it's stock has been on a tear this year, repelling the tech firm past exon mobile to become the second most valuable company. his efforts have fueled a stock surge that drove microsoft total market value above $410 billion. that leapfrog exon vallecula has been dinged by the drop in oil prices. in case you are wondering apple is currently the world's most valuable company by a pretty wide margin. well, up next, destination los angeles,
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i will tell you why chinese tourists are flocking to to buy things they could buy at home. that's next. >> . >> devastating climates... >> if we don't get rain we'll be in dire straits... >> scientists fighting back... >> we've created groundhog day here... >> hi-tech led farming... >> we always get perfect plants everyday... >> feeding the world... >> this opens up whole new possibilities... >> tech know's team of experts show you how the miracles of science... >> this is my selfie, what can you tell me about my future? >> can effect and surprise us... >> don't try this at home... >> tech know, where technology meets humanity only on al jazeera america
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>> and you only have a solitary chance to turn your world around >> the way to get entrance is through taking one single exam... >> testing under fire an america tonight investigative report only on al jazeera america more than a million chinese are planning to visit the united states in the coming months. at least half of them will head to los angeles. shopping at exclusive stores and top tier outlet malls. it turns out china is california's number one market.
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and that tourists come ready to spend. jennifer london joins us from los angeles with the story. jennifer. >> well, jennifer, los angeles county has the largest chinese population in the country. and the largest number of chinese students so perhaps it stanes to reason, that chinese tourists are coming to southern california in record numbers. the world famous hollywood sin, the santa monica peer, must see places for most tourists visiting los angeles. but chinese tourists aren't like most, the single largest group visits southern california shore, have little interest in going there, instead, they are coming here. >> coupons. >> to the outlet malls. >> i met jerry while his wife was hunting for bran name bargains. >> i spend most of my time shopping with my wife. >> outlet malls like
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these shops are so popular, they are welcome back and a red carpet awaiting their arrival. there's a v.i.p. room, and a currency exchange. signs and maps are in mandrin. the, maaing director says the stores are china ready. >> china ready what does that mean. >> well, they have been trained on the chinese custom. how to say basic customs. most have hired chinese substitutes. and they expect union pay, and our whole shopping center is just china friendly. and china ready. >> in fact, much of l.a. is also china ready, the hilton los angeles serve add chinese style breakfast, massey's also accepts china's union pay car, and universal studios offed their back lot tour in mandrin. catering to tourists has never been more critical, a report from the los angeles economic development corporation finds tourism from china nearly yeah controlled
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from 158,000 in 2009, to 570,000 visitors in 2013. the surge is fueled in part by china's emerging middle class. 400 million strong and growing and the newly affluent chinese want to travel and spend money shopping. >> why not come here? they like going out to see the world, to buy things. >> the irony is that much of what the chinese tourists are buying here in los angeles is made in you getted it, china. but it is significantly cheap tore purchase it here by as much as 50%. >> they are looking for authentic purchases in designer labels that represents that western experience because that's what they are connecting to more than anything, this culture that we have in california. >> chinese tourists in southern california buying into and bringing home, a piece of the american lifestyle with luxury goods made in
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their own backyard. some have describes chinese tourists as walking stimulus packages. in 20 think teen, chinese tourists proud almost $2 billion into california's economy, and la gets a majority of that pie, general, according to visit california the share of that market, is 70%. >> wow. that is a pretty big number there do you expect that to continue? how difficult is it for chinese citizens to come over and visit the u.s.? >> well, they expect the number of visitors to double in the coming years. part of that might be because of the easing restrictions on travel, and just this week, during president obama's trade mission to china, he announced plans to extend chinese tourist visas to ten years. so clearly, that makes coming to america, coming to california southern california, that much more attractive and certainly that much easier.
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>> all right, jennifer london for us tonight, thank you so much. >> well, the chinese consumer makes up a third of all luxury sales while that's a figure that luxury brands expect to grow, the consumeser changing in ways you may not expect, chinese consumers are becoming more like american shoppers. author of the bring dynasty, why the reign of the chinese shoppers has only just begun. where he focused on consumer behavior and retail, we get him here tonight you saw jaw jennifer's piece, why are chinese shoppers doing so much of their shopping in the united states, and not in china. >> there's several reasons. the first one mentioned is affordability. if you are purchasing luxury goods abroad there
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are import duty, there's a consumption tax, whether it's tobacco, high end watchesth. so all stacks up it is cheaper. >> what else is at play? there's something else, right? >> it is a question of validation if you are buying a tiffany product in new york, it is a validation process, because it is part of fitting in, it is a part of displaying social status, if you have been buying abroad, it is more of a validation point. >> the other element is you know really links to this will to again, discover other parts oif world, and i think regulation has massively evolved. the penetration rate for passports with chinese nationals is only 4%. and if you think about american citizen who is are not necessarily known for being big travelers it is already 70%.
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so regulation easing has made it easier for chineseble thats to come here. >> so what do you mean when you say that chinese consumers are becoming more american? what does that mean? what kind of shoppers are we, i guess? >> i guess the image of the american consumer has been very much driven by value for money we like a good deal. >> and getting a deal, and also you had a bit of a guilt factor following 9/11, and the niemann crisis and collapse. so consumers being a bit weary and how they display social status. they wanted brands and almost at any price, but now that the chinese consumer is all over blogs and forums. they know what they should be paying. so they are a lot more value for money. >> i love it, we are
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exporting our need for a deal. >> how else is this consumer changes? one thing that i thought was interesting in your book, the luxury consumer was really male before, but that has changed why is that change. >> i this i the history of the development of the luxury market has been linked to men, corporate gifting and catching that's how it opened. i think what is happening today, you are shifting from corporate gifting to personal consumption, to personal gifting impulse purchasingth. receive that shift from a male focus to more of a female driven market has also been accelerated by the graft or anticorruption campaign that started about two years ago. so in china you have this focus towards more female driven consumption. >> interesting one other thing you talked about is they are just like empty show rooms but that's okay if they buy here.
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>> yeah, i think there's a disconnect between where you invest and where you reap the benefits. so it is true there's a concept of show rooming with you will have a pretty good first impression of a brand but eventually you will go and buy in milan, in californiath but the idea is the representation needs to be good at home, because when you travel abroad, then if you are exposed to those again you recognize them. okay if it is empty as long as you buy somewhere else, the book is the bring dynasty. >> thank you for having me. >> virgin america took off on it's first day of trading. the company pick as good time to go public, after years of turbulence airline hit a 13 high this week thanks in langer part to lower oil prices. virgin america took the the skies in 2007 just
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before the financial crisis it earns it's first property in 2013. well, the world is running out of chocolate. yes, you hear what i said the end of chocolate is near, when will it happen, about january 1st 2020. and the world's largest choke late maker, the two predict by 2020 the gap between the global demand for chocolate and how much can actually be produced will have grown to 1 million tons. and thanks to human diseases like ebola, plant diseases like frosty pod, and crop displacement, that gap will grow an extra 1 million tons each decade. now this all comes as consumption of cocoa is on the rise, prices are pretty good indicator, dropping 87%, but there is a glimmer of hope scientists are working to modify and development trees in south america, the only brock getting them to be as tasty as
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what we have all come to know and love. the middle class has been getting squeezed when it comes to housing the most and least ard toble cities in america to own a home. >> al jazeera america presents a global finacial powerhouse >> the roman catholic church, they have an enormous amount of power >> accusations of corruption... >> there is a portion of the budget that takes care of all the clerical abuse issues. >> now we follow the money and take you inside the vatican's financial empire. >> when it comes to money, this is one of the sloppiest organizations on earth... >> al jazeera america presents... holy money only on al jazeera america
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of the update of a family we have been tracking throughout the year. tonight we hear from the williams family. stephanie landed a higher paying jock mentoring schoolteachers. into a chicago duplex rental, they like the lower transportation costs and subsidized programs for the kids, but they are also discovering some unexpected down sides. >> now, the not so nice part of the city. you might think that is follow the rules oof the road, but they have cameras, speed light cameras. >> i didn't get a ticket, i just had a warning in the mail. just even parking on the street. >> we weren't aware of it, and i am not as bad
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as i used to be, but i week span. >> $600. >> was would spend time talking on the way to work. >> the taxes are higher. when we went grocery shopping i had to ask the cash show, what is the extra $7 for, and he said the county tax, which is so much higher, i am not used to that, because we were on the border of indiana where there was basically no tax on food. and we didn't have that ex-that cost one thing we are talking about doing, is going over into indiana, do our grocery shopping come on back. the food bill will always be there. there's four children, the two of us, and it's -- still a stressful situation, when you think about it.
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do everything we need to with that, but i feel better at the end of the day. >> i am happy. >> they still haven't decided what to do with their suburban home which is under water. >> chicago where the family is now living ranks about in middle for home ownership. the managing editor joins us from chicago to reveal where the most and the least ard toble areas are in the country for homeowners. so, mike, why is it so hard right now if you are just right in the middle, of the middle class to buy a house? well, the problem has been over the past several decades, that home prices have been going up faster than income. and when you have home prices going up faster than incomens, you can worry about things like insurance, and property values, but that's really
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the driving factor and what we saw this year, in the 25 largest cities is that home prices didn't go up as fast, they only went up about 6% on average. but incomes only rose about 2%. it is making houses less affordable. >> let's get to the renting. what is the least ard toble areas right now? without question san francisco the the least affordable city in the country. it has an above average median income, but the median cost of a house there is $760,000 that is just -- well, that is just -- even someone who is in new york, can -- >> can save 760,000-dollars is the median price and go oh my
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gosh. i have had people tell me from san francisco that they have to spend as much as 70% of their income on housing costs. and when you have to do that, boy, talk about house poor. 22 most affordable are minneapolis saint paul, and atlanta. and there a median income family, can rather easily, afford a median income -- a median cost house. without spending say more than 29, 30% of their income on housing. and that then leaves this emwith more money to spend on other things including, for example, investing in themselves by putting money into their 401 k. a lot of this as you said is wage stagnation, wages are not going up, what do
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you expect for 2015 in terms of what we may be seeing for housing? do you think this gets worse or is there a chance it gets better? i think the housing prices after having a big spike last couple of years because we are coming out of the recession, and bouncing off the bottom for housing prices we are seeing a flattening out but i don't think they will flatten out enough for income increasing of two or 3% to catch up to them so i think we will see sort of what we saw through a lot of the 80's and the 90's, which is homes become less affordable, little by little. ten years from now, we will look back and a lot more cities will be getting des and fs. >> we will have to have you back in ten years, really enjoyed that and now we know where to move everybody.
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thank you so much again. bye. >> you're welcome. >> well, new numbers out this week, show the richest americans are taking a bigger slice of the collective income pie than in the past years. but they are also contributing a bigger share of tax revenues to the federal government than they did before. the congressional budget office and federal taxes is chalk full of numbers. so let me give you a few. the it also found that america's super wealthy earned almost 15% of all income that year. that's a jump of almost 6% points since 1979. almost 10% points more than they did in 1979. so for all the talk about the rich, these new
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figures show they are paying more to him than they once did. that's our show for tonight, in for ali valshi, thank you for joining us and have a great weekend. >> all next week. >> a new cold war is a reality. >> from europe to the arctic circle. >> the ukrainian crisis has pushed the relationship over the cliff. >> ali velshi takes you to the front lines. >> one minute! >> new war games. the impact of sanctions on russia. >> the most immediate effect has been to consolidate support for president putin. >> how climate change is reshaping geopolitics. >> new shipping lanes created by the melting of ice in the arctic
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could save a lot of money. >> it would be tremendously benificial for russia. >> don't miss our in-depth series "the new cold war". all next week, 7:00 eastern. only on al jazeera america. entertainments that are made for there is not good reason why you will. representation on screen.

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