High Gas Prices Hitting Home; Talk Back Question; Soaring Pump Prices
SUZANNE MALVEAUX, CNN ANCHOR: Top of the hour, I want to get you up to speed. We'll start with breaking news. We've learned that an American is now being held in North Korea. Our Jill Dougherty is at the State Department learning new details. Jill, what can you tell us?</s>JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Well, Suzanne, at this point, there's not really a lot being known other than the State Department confirming that this American, identity at this point unknown or at least they're not giving it to us, went into North Korea in November, that is what they're confirming, and he is being held. We also know that since the U.S. does not have diplomatic relations with North Korea, the Swedes are what's called the protecting power, and they are going in. They've actually been able to meet with this man. They've asked for regular visits with him. And also, the State Department is saying that the U.S. is asking the North Koreans to release him on humanitarian grounds. And that really is about what we know at this point. Suzanne, you know, there have been Americans who have walked over the border, and in other ways gotten into North Korea. We'll have to see if we can get more information on exactly how he got in and why he's being held.</s>SUZANNE MALVEAUX, CNN ANCHOR: OK. Jill Dougherty, thank you for the breaking news. Obviously, we'll get back to you as soon as you have more details. Thank you, Jill. Well, a bump in the night draws investigators from the National Transportation Safety Board to New York's JFK airport today. An Air France Airbus 380 clipped a commuter plane last night, forcing the smaller plane to spin in a whiplash turn. Now, both aircraft had minor damage, but fortunately, no one was hurt, just delayed.</s>CLAIRE BANDY, AIR FRANCE PASSENGER: We were just waiting. We were kind of all having a chat and saying it was a bit annoying. And then, suddenly, there's this big bang from one side of the plane. I think it was the tail of the big Air France jet hit the back of ours, or something.</s>UNIDENTIFIED FEMALE: Well, no. The engine of the Air France jet hit the tail above and pushed it around, and pushed our front end around the other way.</s>MALVEAUX: Gas prices inch closer to the $4 a gallon mark today. AAA says a gallon will cost you an average of $3.77 nationwide. Gas is already above $4 in four states, including California.</s>UNIDENTIFIED MALE: $4.19 a gallon? That's ridiculous. It's absolutely absurd.</s>UNIDENTIFIED FEMALE: I have to drive, and they don't pay mileage, so it's really, really sticking me.</s>UNIDENTIFIED MALE: You know, they are getting all the bailouts and the breaks, and we're getting squeezed.</s>UNIDENTIFIED MALE: It's L.A., so it's even worse than most places.</s>MALVEAUX: New York police say that human remains found on a Long Island beach may be the ninth victim of a serial killer. Eight sets of remains have been recovered on another beach just five miles away. A 10th set of remains found Monday appear to be human, but that has not been confirmed by the medical examiner. Arizona Governor Jan Brewer says the state is considering its legal options on its tough new immigration law. The Ninth Circuit Court of Appeals refused to lift a stay that has blocked the law's major provisions. The court says immigration is a federal concern. One judge wrote it's an absurdity to think 50 states can have their own foreign policy. Well, coming up in the White House East Room this hour, the president and the vice president are helping their wives launch a new program for military families. It's called Joining Forces, and it's going to be headed by former Afghan war commander General Stanley McChrystal. The program educates communities, corporations, nonprofit organizations on ways to support troops and their families. And Japan raised the nuclear alert level at the Fukushima plant to 7 today. That is the maximum. That puts the disaster on the same footing as Chernobyl. Still, officials are quick to point out that the Fukushima plant has released just a 10th of the radiation given off at Chernobyl.</s>JAMES WALSH, INTERNATIONAL SECURITY ANALYST, MIT: This is more looking back than looking forward, and it's saying there's more radiation released than they had originally calculated. And I think that does -- I think there is a little bit of blame here that they were slow to get out into the field.</s>MALVEAUX: Tension at NATO over Libya now. The foreign ministers of Britain and France publicly complain today that NATO is not doing enough to protect civilians in Libya. Witnesses say that five civilians died in the latest fighting in Misrata, including two toddlers. Rebels have rejected an African Union cease-fire plan because Moammar Gadhafi would remain in power. More now on the story that's hitting all of us, and hitting hard -- rising gas prices. The average price now is $3.79 a gallon. The highest price is in Hawaii, $4.44. The lowest is in Wyoming, at $3.51 a gallon. That is according to AAA. I want to bring in CNN's Alison Kosik to talk about how these rising gas prices are affecting the economy overall, and also your personal bottom line. Alison, thanks for joining us. Tell us, what -- how does this actually impact the country's economy? What does this say about how we're doing economically?</s>ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Suzanne, I'll tell you what, these high gas prices are mostly a big drain on the economy. Sure, you know, the government earns something from taxes, but taxes only make up about 13 percent of gas prices. The bigger portion is oil, and we do import most of that. And we all remember, of course, that we are above $100 a barrel on oil right now since February. And the International Energy Agency says we're already beginning to hurt as far as the global recovery goes because of these higher oil prices. We heard the same thing from the IMF. It cut its growth forecast for the U.S. It sees GDP this year at a 2.8 percent pace. I'm going to show you what that means right here, over the past two years. Last quarter, we grew at a 3.1 percent pace -- 3.1 percent is mediocre by historical standards -- 2.8 percent, Suzanne, would be considered below par. So obviously these gas prices are going to be taking away the momentum of the economic recovery.</s>MALVEAUX: What about the impact on our individual finances?</s>KOSIK: Oh, sure. You know what? Every dollar we spend at the pump means that we have less money to spend on other things. You know, we're not going to go out to eat as much, go to the movies, even fix up the House. You know, it's going to be tougher to pay our bills. We may even rethink the vacations we take. Remember the rise of the staycation in 2008, when we saw gas prices top $4? And we can also see these higher gas prices affect the jobs picture. Companies are going to have less room to hire because they're spending more, too, on higher oil prices and higher energy prices. You know, corporate America also is dealing with more than just higher oil prices. They've got higher commodity prices as well. Here's the kicker. The IMF sees oil prices staying high through next year, so get ready for these gas prices to kind of stick around. We'll just have to get used to them -- Suzanne.</s>MALVEAUX: All right. We're going to try to get used to them, Alison. It's a little tough there, but we're going to try. Thanks. It's your chance to "Talk Back" on gas prices. No matter where you live, you've seen them go up. Carol Costello, here with today's "Talk Back" question. You know, I mean, you and I both were lamenting over the fact that it's out of control.</s>COSTELLO: It is. A lot of people feel it's out of control. And there's a lot of fingers being pointed in different directions, because, you know, here we go again. Politicians blaming other politicians for high gas prices. Instead of doing something about it, everybody is pointing fingers. In the meantime, you are paying more for gas again, an average of $3.70 a gallon. On Facebook, ex-governor and Republican vice presidential candidate Sarah Palin blasted President Obama's reluctance on drilling after the BP oil spill, saying, "His war on domestic oil and gas exploration and production has caused us pain at the pump, endangered our already sluggish economic recovery, and threatened our national security." Palin called Mr. Obama the "$4-per-gallon president." Except gas prices hit their all-time high of $4.11 a gallon in July of 2008, under President Bush. But there's enough blame to go around -- sky-rocketing oil prices, turmoil in North Africa and the Middle East, and those Wall Street oil speculators who keep betting up the price of crude. Democrats want more controls on those speculators. Some in the gas and trucking industry agree, but Republicans generally oppose such restrictions. And even though 70 percent of gas stations say people have been buying less gas in recent weeks, we still love our gas- guzzling SUVs and pickup trucks. Hybrids only account for three percent of the market. That's according to Trucar.com. And states like Texas might raise the speed limit to 85 miles per hour. And that is not great for good gas mileage. So, is it Libya, is it Wall Street, or is it us? "Talk Back" today: Who do you think is to blame for high gas prices? Write to me at Facebook.com/CarolCNN, and I will read your answers later this hour.</s>MALVEAUX: All right. Thank you, Carol. Appreciate it. Here's what we have "On the Rundown." Details on the 2011 spending plan lawmakers worked out to avoid a government shutdown. Smoke clears, dust settles in Ivory Coast. Now the country must decide what to do with its former president. And protecting your smartphone from would-be hackers. And --</s>UNIDENTIFIED MALE: NASA put together a set of requirements for museums around the country to respond to. We think that we have responded positively.</s>MALVEAUX: -- competing to land a retiring space shuttle. We're going to tell you who might get to keep one.