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tv   Real Money With Ali Velshi  Al Jazeera  January 22, 2015 7:00pm-8:01pm EST

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colhane patty sagba imagine shure michael shure in los angeles i'm tony harris. "real money" is next with david shuster sitting in for ali velshi. breaking news saudi arabia's king has died. he was one of the most influential and significant figures in the middle east and in the global economy. we'll take a look at what his passing means to the region and america. and tony blair talks to ali velshi about security in the face of extremism, and having a thick skin in the face of extreme criticism. and richard branson talks about moving forward in the wake of a tragic setback in the business
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of space. i'm david shuster in for ali velshi, and this is "real money." ♪ and we're following the breaking news coming from saudi arabia tonight. according to the country's state television saudi arabia's king abdullah has died at the age of 90. the king one of the most significant players in the middle east and the global economy had been in the hospital for several years suffering from a lung infection. his brother is being tasked to be the next king. but king abdullah's passing is still momentous. mohammed has more. >> reporter: he was one of the world's few remaining absolute monarchs but his years as crown prince might have marked his
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legacy even more strongly. at the time he was crown prince but a tremendous amount of power and influence. he was known as devout and conservative with strong ties to the country's bedouin ties. but even then he pushed for change. >> he has inspired a greater openness in two particular areas, in -- for women and in freedom of expression. there is an outburst of social criticism and also of government policy in saudi arabia that has happened with the -- let's say tolerance to some degree of the saudi government. >> reporter: when the took the thrown in 2005, abdullah had to overcome pressure from conservative clerics to continue his reform program, aimed at bringing together islamic traditions with the needs of a modern state. he worked to trim the high-spending habits of his
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family and tackled youth unemployment. he all thes paved the way for municipal election granted women the right to vote and run for office allowing them for the first time to do business without involving a male guardian. the set up a council of royal elders. but domestic concerns gave way to global wuns when the united states was attacked. 15 of the 19 hijackers were saudi citizens. al-qaeda began a campaign of bombings against westerns in his country. king abdullah's next major challenge after september 11th and al-qaeda was iran. the king's foreign policy focused on efforts what the monarchy saw as the increasing influence of the government of
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iran. the cold war style battle between the two countries was played out in lebanon and syria, when the former lebanese prime minister was assassinated in 2005 many people blamed the iran-blacked syrian government. the iran factor also influenced hits stance towards arab spring. he seemed to be lukewarm to some of the revolutions. but by sending troops he may have revealed saudi fears of an irane backed revolution next door. saudi security forces cracked down on the protesters raising controversy on the king's record on human rights. in recent years, activists who
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demanded change through petitions ended up in jail and political parties and public demonstrations were banned but generally the king confronted his fears of an uprising at home in a different way. he spent $130 billion on housing, jobs and other social benefits in a bid to win the hearts and minds of the majority. his calculation worked despite online calling to protest against the lack of democracy, the anti-government protests never took hold. and the king remained largely popular figure. his critics, though believe he could have done more given the vast oil wealth to help his population. >> people were convinced that a new law for the judiciary would make trials open and fair. in that did not happen. people were convinced that there would be religious dialogue between sunni, saudis and shee
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ja -- shia saudis but we have seen relations deteriorate. >> reporter: but now the stability the ruling class has joined is under threat. from old age, and a potential succession problem. the country has recently buried two crown princes and now a king. crown prince who is poised to takeover is nearly 80. his deputy is a younger direct son of the founding father. with his appointment, the post of deputy crowned prince has been created for the first time perhaps to reduce the probability of a succession crisis in the near future but even he is nearly 70. the crown passes among brothers before it goes to sons. in a few years the last edge ibl
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direct son will either have died or become incapacitated by age, which would sieve several dozen royal grandsons vying for the thrown. the religious council was tasked with preventing such a problem. it's real test could be just around the corner. >> and in saudi arabia state television is reporting that council prince ahman has officially succeeded king abdullah. he is one of abdullah's brothers and is considered a reformer and friend of the united states. this should not be a surprise nor should it be a source of drama in western capitols. but there are still significant decisions that will face saudi arabia and the new king in months ahead. up next the government of yemen has collapsed increasing the turmoil in the middle east and heightening security fears.
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ali velshi talks to tony blare about fighting extremism in the region and answer critics who blame him for much of the chaos. you are watching "real money." ♪
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welcome back. breaking news in the middle east tonight, that saudi arabia king abdullah has died at the age of 90. he was king since 2005. his brother salman is now reported to be king. this is as expected. he is reportedly 79 years old, and has been crown prince and defense minister since 2012. also a long-time friend of the united states. we'll have more on the death and the transition to king salman later in the show. now, though we want to take a closer look at new turmoil engulfing the middle east. yemen's government designed under pressure today under so-called houthi rebels.
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today's announcement came one day after government and rebel forces announced a deal for sharing power. this is yemen east biggest political crisis since arab spring demonstrations three years ago, that helped push the dictator out of power. salas is said to have encouraged the rebel's latest assault. the shia muslims are fighting in the north. some speculate they receive backing from iran. there is also an act of successionist movement in southern yemen demanding to break away from the north. al-qaeda in the arabian peninsula, the most dangerous branch of the al-qaeda franchise is based in yemen. it has claimed responsibility for this month's charlie hebdo
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attack in france and the attempted effort to blow up a u.s. airliner over detroit. yemen is a microcosm of what ails the middle east today. the u.s. air force regularly strikes at al-qaeda targets in yemen just as it strikes at isil targets in syria and iraq. countries like these have suffered instability since 2011. but iraq's power vacuum was unleashed years earlier. ali velshi stat down with one of the invasion tony blair who together with george w. bush bares as much for the state of play we see today in the middle east. they met today at the world economic forum. >> i recently spoke a retired
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colonel who -- he helped train the folks who trained the iraqi security forces to manage a counter insurgency and we have seen that collapse in the last year and i asked him -- he felt that the mistake was pulling those troops out too early. and i said how long at the current rate are we going to be in iraq if we try to fix this? and he said it might be past his lifetime. he thinks we're in iraq for the next 50 years or so. and dick cheney has said something similar recently. that the bush blare plan pulling out too quickly has resulted in what we're seeing now in iraq. >> i think it's really difficult to -- to say how long the commitment is going to last trying to defeat these people. and i don't think you can put a time limit on it because what is necessary is to see this in the context now of what is happening, obviously not just in
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iraq but in syria, and libya and yemen, and other parts of the world. so my view is wherever these people are, you are going to have to confront them militarily. and there has got to be someone's boots on the grounds. it doesn't necessarily need to be ours but i think what you'll see developing over the next few years is an idea about how do you construct the right alliance with the right force capability to fight them wherever they are. because you can defeat isil and you wouldn't defeat the problem. >> you talk about the capability, and there is still disagreement on what that is but increasingly critics of the pullout are saying we're definitely not at the right level right now, and if there was something like a downsizing we overdid it. >> i think, again, we'll carry on having that debate.
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i think the question now is if the force capability is inadequate, how do we make it adequate? and to what degree are you going to commit our own forces potentially in ground operations that needn't be as iraq or afghanistan was, that we have huge experience and capability there are probably no forces more capable of dealing with this than the u.s. and the u.k. so i don't think we should rule out the possibility that we involve ourselves in some way, but when you analyze this just from military point of view those people who are far more expert than me say unless you confront them militarily on the ground, then air power alone won't do it. >> the countries you mentioned. you said we're going to have to confront these forces and you are talk about insurrent islamist forces in these various places that you named.
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they are all born largely out of a power vacuum. isil can't take over great britain or the united states was that not enough a part of the calculation as we were deciding how to deal with insurgency on the ground in allowing these vacuums to exist we have created parts of the world that are governed by insurgents. >> this goes to the heart of the argument. okay. let's assume the taliban are bad. let's assume that saddam hussein was bad, but once you remove them what happens? that is actually the lesson. there is an additional lesson which is out of the arab revolutions. which is that these dictatorships are going to come under pressure in any event. you have the dick today forships in egypt, yemen, syria, all
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either removed or under intense pressure and what this in my view shows you is you are dealing with a deeper problem in which you are going to have to try to build capacity in these countries to govern have the force capability to defeat the extremists, and the wider problem of what do you do about it? so whereas i think i will say this to people the miscalculation made after 9/11 and i was in power then was that if you got rid of the dictatorship, then you gave people a democratic process, and we'll give you unlimited support, then things should have worked in a reasonably easy way, as indeed they do in kosovo and then serbia. the difference is i think that you can see now when you look back, is over decades this problem has grown. it came to a boiling point when
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al-qaeda allowed the taliban to use afghanistan as a training ground and the problem is you can have a debate about who is responsible, but you go outside of iraq libya, yemen, syria, you have got the same issue. >> and you call it the capacity to govern. we can think about it and when we look at kosovo and rwanda you talk about civil society. there were at least some civil society institutions. we are talking about removing dictatorships where there was no civil society institutions. no one was a logical candidate for government. we brought people in from outside. does capacity to govern, and the establishment of good civil society matter more than we thought it did perhaps 15 years
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ago? >> for sure they do. but with respect to rwanda and kosovo you also had a vacuum. rwanda -- it's a country i know very well. after the genocide the country has nothing. now what is the difference? the difference is -- and what is the difference with kosovo because what you could have had in serbia, is that also was a country that had been under brutal oppression over many many years. institutional capacity not great there either. so what is the difference? in my view the difference is where you have this radical islamist institution, not only do you have to build the institutions -- in yemen you had a constitutional process, most people agreed with it it was rather a good process. what has destabilized that? it's not a product of simply the
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vacuum this is why it's very important to get the lessons of this right, it's also the product of people deliberately destabilizing it because they don't want those institutions built. because they are contrary to how they think their society should develop. >> you are a thick-skinned guy. you have been getting some criticism in the last year -- >> the last few years. >> you were a populous. you won such a big majority the first time you -- you won, and you have been sort of hanging around with people who are not thought of as men of the people from al-sisi in egypt to the kazaks to jamie diamond from
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jpmorgan that has not got to sit comfortably with you. that these are not people who are loved by the people. >> look one of the things i get over time, i decide my own views about things you know. and i'm really quite resistant now by being buffered around by what is the latest twitter feed. sisi, i think is real hope for egypt -- >> but not fairly democratically elected? >> well, i would say he is fairly democratically elected -- there are issues around for example al jazeera where probably i would disagree. okay. >> right. but we would be very happy if our three guys are let out of jail. >> and i hope they are, by the way. i would say though about -- my own view is the muslim brotherhood were a disaster for egypt, and i think it is important that egypt gets some stability going forward.
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in kazakhstan i have constantly said to people there are very important reasons for the west to be allies with kazakhstan. people are free to worship, and the leadership has increased the income of their country by about 15 times since leaving the soviet union. and i'm a great admirerer of jamie diamonds. in the end i make up my own mind about these things now. because if you end up following whatever prevailing wind there is you find yourself in many dish places and a lot of them places you don't believe in. you should also be sensitive to the criticisms but you at least develop the ability to say, well look this is what i really think. and if i really think it i have
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the right and sometimes the duty to say it. >> reporter: there is a lot more of ali's interview with tony blair. blair says the united states cannot go at it alone. >> in my view it's the regional powers, and you start getting the region standing up to the prospect of a peace deal based largely around the arab peace initiative then i think there's still a majority amongst the israelis and palestinians to get a deal. >> that discussion is coming up tomorrow. next president obama talked a lot about the middle class on tuesday night. coming up we will talk about something the president did not address. why the children of afghan american families are far more likely to fall out of the middle class than whites. that's next. ♪
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>> tonight on al jazeera america, at 8, primetime news >> what concerns you the most? bringing you the latest headlines from around the world >> you can really feel the tension here... then at 9, it's america tonight in depth reporting from coast to coast >> would it be dangerous for you go about three blocks that way? >> i wouldn't go by myself... >> at at 10, consider this >> it's the latest push for reform... >> antonio mora brings you unique perspectives on the news of the day
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>> tonight starting at 8 only on al jazeera america several times during president obama's state of the union address on tuesday, he used the phrase middle class economics. >> middle class economics means helping middle class americans feel more secure in a world of constant change. helping folks afford college, healthcare a home retirement. >> but there are several disturbing differences in who stays in the middle class. african american children born into middle class families are more likely than their white counterparts to fall out of the middle class. seven out of ten african american children born to families with incomes in the middle of the spectrum will fall out when they are adults.
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joining us is the mid-atlantic operating manager for financial hope. ryan great to have you on the program. isn't each generation supposed to do better than the previous? it seems like nobody can come up with an explanation. what is happening here? >> bottom line is you have almost the perfect storm of economic occurrences that essentially have dragged the economic growth of the african american come community. one was the recession, and outside of the hispanic community, african-americans were impacted by the housing recession especially with the high rates of foreclosure, and sub prime lending. that impacted there. and when you consider they don't invest in stocks as much as other individuals, so when you lose -- you foreclose on your home, that's your only investment, and that's going to be a severe hen drans.
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you have single-family households. right now over 70% of african american households are single- single-parent households. and that has a big difference. individuals being able to learn from both the mother and the father and then you have the surrounding rates of poff poff -- poverty. so -- and then you throw in the incarceration statistic. about 1 million of the 2.4 million individuals in our -- in our system are african american and we only make up 13% of the population. so there are huge disparities, and it is a perfect storm of things occurring at the exact same time that is having a
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significant drag on the economic growth of the african american communities. >> what happens if this erosion continues? >> we're going to have to start looking at alternative solutions. at depreciation hope we try to look at more the economic perspective. i think there has been a little bit too much emphasis on what the government can do not to say it's not important to look at what the government can do but it's time to look at what we can do for ourselves as well. essentially savings rates -- these are things we can control. educational -- making sure you are educating your children at home are things we can control. there was a very interesting study that showed a significant disparity in terms of whites and blacks in terms of learning differences, but toward the end of the year those differences started to come together but when they went home for the summer the disparity started to
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occur. so something is going home in our households that cause that gap to start to widen, that we have to start addressing. it's about time for us to stop waiting on our ship to come in and start learning how to swim out to the ship and do some things for ourselves. >> and learning how to swim also of course involves being able to look at the past and determine when this begins. a lot of americans will look at this and say i thought the african american middle class was doing better. when did this slide begin? >> essentially it began heavily when the recession hit. you saw in 2000 when the stock market crashed, you saw a lot of folks were saying when the economy catches a cold the african american community catches the flu. in 2000 when the stock market crashed yes saw a lot of wealth being loss by african-americans.
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but then you saw an influx into gold and realest snat 2002 or 3 and it's one thing to lose $10,000 in the stock market but it's a another thing in order to purchase a piece of property for a hundred thousand dollars and now it's only worth $50,000, and the decreasing fico score, and if you want to move ahead you have to have a lot of cash or good credit. and african american communities being plagued by check-cashing places pawnshops. again, they are not targeting african american communities. they are targeting low fico score communities. but we really have a lot of work to do. >> we do indeed.
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ryan mac, thanks for coming on. >> thank you so much. coming up on "real money," we'll get back to the death of saudi king abdullah and what it means and does not mean for the future of opec's most important member. that and more when "real money" returns. ♪
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welcome back. we want to return to our breaking news out of the middle east that's a picture of saudi arabia king abdullah. we have gotten news from state tv that he has now died at the age of 90. he served as king since 2005. his brother, salman who is 79 is now king and widely expected to continue the country's close ties to the united states. joining us now to shed more light on what this means and does not mean is our own patricia sabga. first of all, saudi arabia the world's largest exporter of oil,
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does anything change with this transition? >> the one thing that the saudis are really going to put out to the world is that this is business as usual. this is going to be a very orderly transition of power. and don't forget right now, saudi arabia is sandwiched between two very unstable places. they have to worry about isil in iraq, and aqap in yemen, and yemen is in chaos right now. >> and we were talking about that earlier in the show. and a lot of people in the obama administration are always concerned about iran. there is negotiations between the united states and iran and tensions between iran and israel. saudi arabia was one places that were trying to help keep iran in check. is there any change now in that? >> the biggest question is what is going to happen to the price of oil. now don't forget that saudi arabia is opec's swing producer.
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i have heard it described as saudi arabia, and the 11 dwarfs because saudi arabia is so huge and important and they can produce oil more cheaply than anyone else. now the saaddyes have a very very cash reserve fund that they can tap to weather the storm, and they said we're defending our market share against u.s. oil shale producer. but iran's economy was already hurting, and they are really really hurting now, because right now oil is trading about $90 a barrel south of what iran needs in order to balance its books. so they are really really getting squeezed. really getting hammered by this policy that is lead by saudi arabia. they are not cutting their output. they are driving the price of oil down and this is really
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hammering iran right now. >> and every expectation in washington and iran that the saudi policy to not cut back is going to continue. >> exactly. but i can't emphasize enough david that in many respects saudi arabia is a black box. we only know about the kingdom what the kingdom wants us to know. so right now the image they are going to project -- and they have been working on since last year. now king salman takes over and the crown prince is the next in line. they made him deputy crown prince last year specifically to send the signal to the rest of the world, to the region and really to saudi's enemies in the region that we have our act together, we know the line of succession this is the image they are going to put out showing it is business as usual
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here. >> saudi arabiaad -- saudi arabia one of the best allies to the u.s. and they had a lot of contacts behind the scenes. they were united in terms of israel's fears about iran. does that change in terms of the israeli palestinian conflict? >> not only are you going to see business as usual in terms of this is where our oil policy -- that's not going to change this is our succession but you are not going to see a lot of changes on the foreign policy front. it's not going to be all of a sudden, boom it's going to become this amazingly liberal place overnight. the most precarious moment in any nation's existence is the transition of power. but more so with an absolute monarchy. >> and in this particular case it's a monarchy that has taken a lot of steps in terms of
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liberalizing domestic policies in the last several years to try to keep people from following the arab spring and revolt. there is some suggestion that they paid off the people who followed suit. a lot of people suggested no it's more sophisticated than that. but there has been a certain loosening in saudi society over the last several years. >> don't forget after 9/11 saudi arabia has a big internal security problem. they had open gun battles on the streets, and they really cracked down. they put those elements back in the can as you will. the question is did they eliminate that drive it under ground in what is going to happen internally with saudi arabia and that is something that any middle east expert will say we don't know what is going on there. because saudi arabia is the black box. we know what they want us to know. >> and they want to know that their middle class continues to
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be happy, continues to get some of the large asset the saudi arabia government has stockpiled through the years. >> a lot of it has been we will subsidize you, so you don't get to participate politically, but we're going to subsidize you. but it's not just the royal family. we also have to take a look at the religious elements. and this is why you are likely to see a continuation at least for the immediate future this big liberalizeationliberalization. don't for get he founded saudi arabia with the help of the [ inaudible ]. it is linked with the crown and the ideology and that's a very very powerful force right there, and they are conservative. >> patricia sabga, our own middle east expert. thanks for joining us. and we will have more news on
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the transition in saudi arabia at the top of hour in our news. there was a second day of high-level talks between the united states and cuba today in havana. so far they say discussions have been positive and productive. our own david arreowes toe has more from havana. >> reporter: a big day in havana it's the wrap up of these two-day talks. on the table here was remittance migration, fugitive issues all of these things have been sort of a leaping point for future talks in terms of how these two countries are going to deal with one another. one of the interesting things that came out of the talks, was a top senior cuban diplomat who was kicked out of washington back in 2003 on espionage charges. the idea that this is the
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individual delivering the news for cuba is really saying something, and kind of giving an indication of how far these two countries have come in just over a decade nonetheless the real issue that people are beginning to start to talk about is the embargo. this really has a freezing effect on this economy here. that amid these falling oil prices from the venezuela subsidies that are starting to dry up this country needs more trade. but the talk on the street is when will this embargo be lifted. miami, and new jersey that is something they are very much against. but nonetheless there is hope on the streets of havana here that something could actually be taking place here. now, of course this republican-controlled congress we don't expect that to happen
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any time soon but that hasn't really dampened the effect of how people here in havana are expecting the next steps of this process to unfold. david. just ahead, richard branson tells ali velshi about his dreams of space and beyond and the people that he says will make a difference. >> i think it's the crazy people that are going to change the world, and are going to, you know create the jobs of the future.
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♪ in october any commercial space industry took a major hit when virgin galactic's spaceship two crashed into the desert.
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hours later, richard branson arrived on the scene visibly shaken for a man who spent so much of his life smiling for the cameras, it was clear this time was different. he admitted he wondered if it was worth pursuing his dream of commercial space tourism. but they are pushing on with a new version of the spaceship and big hopes for 2015. ali velshi sat down with richard branson to talk about space and much more. >> every time we have spoken you give off such positive energy. you always say you are well. you always seem very well except for that one day when you got to the desert after the crash, and it was palpable. now, i understand that some of that is because there was human life lost, and while we all know in space in the early days that
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will happen there was a soedness in you. is it still there, and what it is about? >> well look obviously for the family involved it's heart breaking they will never completely get over it. and for the greater family 400 engineers and scientists who had been working hard on the project for many years, they have had to get over it and they have had to look forward and pick themselves up and -- and get to work and that's what they have done. and i would say they are working, you know, more determinedly harder than ever and -- and they are working very hard to get the next spaceship finished, the test pilots are getting ready to test the next spaceship, and we -- you know they have got a point to prove to the world, and they are all determined to do that. >> when do you now think it's going to be? >> i'm not going to make that mistake every again. [ laughter ]
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>> it's always very difficult, because every time one does an interview, people want to know when and the temptation is to say when i think, but we're going to go when we have the spaceship tried and tested when the faa give us our license, and when -- when we feel it's as safe as possible to go to space. >> when will it be real for regular people? >> i mean it's interesting. i mean if you wanted to buy a ticket to space three years ago, it would cost you $50 million, and you most likely would go up in a russian spaceship. a ticket to space today is $250,000. still an awful lot of money, but a hell of a lot less than three years ago. thousands of people one day will be able to afford to go to space, and one day we'll be able to transport people across the world at tremendous speeds with the best views imaginable.
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>> now you are involved in sending small flocks of satellites up so more people can get internet and cell phone access around the world. tell us about this. >> there are 3 billion people out there that don't have internet access wi-fi access or mobile phone usage. they are in poorer parts of the world, but also wealthy parts of the world, just out on mountains or on farms. so our plan is to put an array of satellites around the world. initially about 700, and a little bit later another 2,000 satellites. and that will enable many of those people who can't currently get a job, run a business get educated there's enormous amounts of disadvantages that you have if you don't have connectivity over the people that do have it to hopefully
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get up on their feet. >> this speaks to the income inequality issue. think idea that there are billions of people without access to the things that can allow them to become smarter, better, and get employed. >> i think with wealth comes enormous responsibility and i think the biggest responsibility is not to sit on it. get out and invest it create jobs. come up with grand schemes to make people's lives better and -- and i think a lot of people with wealth do do that. there are some that, you know perhaps think, you know, getting the next bigger yacht or the next bigger this or that is more important, and that's a pity but i think -- but i think there are -- you know fortunately i think most of the wealthy people i know you know, want to make a difference in this world, and are getting out and doing it. >> i look at elon musk who
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reminds me of you over the last few decades, saying he wants to be burr rid on mars. but it's that crazy stuff that makes people finance thing and make businesses grow. >> i 100% agree with you, and i think it's the crazy people that are going to change the world and are going to create the jobs of the future and -- and they are doing so but equally, i think that for the vast majority of people who are working for companies, it is critical that people who run those companies make sure that they have the most fantastic jobs in -- in those companies, and we have an organization called the b team and we have been examining time at work and how -- how to make time at work more enjoyable, and -- and more pleasant and -- and for instance one thing we just are expeer meanting with at virgin is telling people you can take
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holiday when you want as long as you want. just get your job done and we're finding it very popular. >> and it's strange, people don't tend to abuse it. >> they don't abuse it. and people working at home if -- you know if they want to go off and work at home you know it saves them an hour to come to work and an hour to go back to work and all of the chatting at the office and so on and they get their jobs done. so i think flexibility in the work force, just making -- you know making time at work you know -- you know people -- your life is spent at work 80% of your time at work. it should be an enjoyable day, and that is something that we're trying to imbue in business leaders. >> ali velshi with the one and only richard branson. crazy people unite. coming up next president obama wants to increase cyber
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security, but are we willing to pay the price? 3w4r57 3w4r57
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♪ in a short paragraph of his state of the yuanian address, president obama urged congress to pass legislation that he said would combat cyber attacks. however, some say it will increase surveillance and jail unwitting members of the public. >> reporter: it was a bright cold day in april, and the clocks were striking 13. >> reporter: the morning after president obama's address, and a read-a-thon begins. a series of represents has been organized, inspired by the revelations of whistleblower ed on the extend of the u.s.'s mass surveillance operations.
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>> in the summer of 2013 we noticed that the sales of 1984 had gone up something like seven fold. >> reporter: a workshop on how to use the internet anonymously. and evade surveillance. and that surveillance may increase even further as president obama urges congress to act against hacking. >> no foreign nation, no hacker should be sable to shut down our networks, steal our trade secrets, or invade the privacy of our american families. and we're making sure our government increate means to combat cyber threats. >> reporter: but that means even more of our private information will be traded. some say it will be far more effective to concentrate on basic security instead of ramping up mass surveillance even further. ensuring a minimum standard of
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corporate cyber security particularly for companies that store data about us. but instead of cracking down of companies like sony. the administration wants to go on the attack by instituting harsh penalties for those breaking the rules. experts say this is misguided. >> the truth is the core cyber security problem is you need companies to harden their network, follow best practices, train their employees not to respond to phishing emails as sony learned. >> reporter: but introducing legislation on minimum corporate standards would mean going up against corporate lobbyists. civil groups argue the legislation proposed make it easier for prosecutors to go after people simply for signing up for facebook under a false name or sharing their pass words, while hackers continue to operate unhindered in the
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shadows of cyberspace. earlier today ali velshi talked about cyber security with the chief strategy officer at microsoft. they discussed what tech companies, governments, and even real people can do to protect against cyber criminals. >> first it always starts with consumers. most consumers say, i don't really know how my information is being used. i would like more transparency. i think at microsoft, we think privacy is an important issue. we're trying to bake it in to more and more products. we have joined the president's initiative, and then ultimately some of these issues will go to governments. they will have to decide some of these issues and people will want safeguards. >> i want to talk about terror for a second, it definitely has a big place here with all that has happened in paris with these fears that we have got. but when you talk to people who
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really studied terrorism in the united states they say the kind of terror that scares us is not existential. we don't think of cyber terror the same way. we don't think of the fact that that could actually shut us down. >> technology is the biggest force -- i think -- one of the biggest forces obviously for positive good throughout the world, and that's the main finding in the poll. but for the first time we have seen potentially an example of cyber terrorism that is state sponsored. so this will be an important issue. the president raised it how to deal with cyber terrorism is going to be important particularly if states are going to start sponsoring it and using it as weapons. we're all going to have to figure out how to deal with that. >> that is our show for today. on the next "real money," we will talk about inflation through a baseball contract. it's an amazing example. we will bring that to you tomorrow night. i'm david shuster in for ali
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velshi, for everybody here at "real money," thanks for watching. ♪