Transcripts For ALJAZAM Real Money With Ali Velshi 20140812

This is real money, you are most important part of the show. Tell me whats on your mind by tweet me or hit me up at facebook. Com look lash ali, ali. Over the weekends he won 52 of the vote in turkeys first popular president ial election. The first one. Its just the kind of mandate a leader needs to proceed would outsidessed ambitions for husband country. Turkey is already a major player in the worlds current hotspots. A key member of nato, with military installations facing russia and ukraine on the black sea, turkey has given support some Syrian Rebels who are fighting to uneat syrian president bashar alassad. And in iraq, he reversed years of turkish opposition to kurdish autonomy to the northern regions and boosted oil trade using turkeys pipe lines, further, he solidified turkeys a lines with israel. Calling on other country to his blake the black indicate on gaza. As the new president , he will seek to expand his countrys role in the world. Traditionally, turkish president s have only played a a symbolic role with real power in the Prime Minister, which was his role. Now with a popular vote sealing his legitimacy, he wants to change all of that. He has already changed so much in turkey. During three terms as Prime Minister he sidelined turkeys generals who once upon a time plotted coups that overthrew four turkish governments and defied second lahr institutions and turned it lamb i can justice and Development Party in to the dominant force in turkish politics today. Now the expanding world role has been helped by its growing economic muscle. Turkey has trans world itself in to an up and coming market that excites investors. Turkey is the t in the new group called the socalled mint countries. That includes mexico, i indonesa and nigeria and t, turkey. That rivals the bricks, brazil, russia, india, china and south after what kasami for investors returns, despite turkeys gains its economic miracle is starting to stall. Marry snow has more. Reporter behind he had lex victory and turkeys president ial election is an economy that has seen strong growth since he became the countrys mine minister in 2003. And that growth stood out after the Global Financial crisis. Turkeys g. D. P. Grew in 2010 and again in 2011. By 9 before dropping to 2 and 4 growth in the years that followed. One analyst says turkey had an advantage over other countries when World Markets were rattled thats because turkey had to restructure its banks and Financial Institutions years earlier when it suffered its only meltdown in 2001. Turkish Banking Sector was strong. And the turkish fiscal situation was also relatively balanced. So turkey did not have a huge public debtor a fiscal deficit problem. Reporter turkey also became attractive to foreign investigators looking to profit from higher interest rates. When the u. S. And European Union cut their rates to cope with the financial crisis. And among the businesses that have grown. There is no doubt that the biggest driver of the tub turkh economy is the construction sector. Both at home and overseas, turkey has become a construction magnate for the world. Reporter and construction has helped provide jobs in a country that largely imports its Energy Resources. And it depends on the private sector for growth. Incomes have also been boosted. A decade ago the Gross National income was roughly 5,000. Its doubled to 10,950. But now Consumer Debt is one concern. Higher inflation is another. Economists are also wary of turkeys dependence on foreign money, mary snow, al jazerra. While turk is a trying to assert its influence around it, its geographical location presents more constraints than opportunities. Thats according to receive a Vice President of Global Analysis at geopolitical firm based in austin, texas. One would look at turkey, and historically the on the man empire and bids an teen empire and saying they are really at the crossroads of the world. Its europe and asia. That should say nothing but opportunity. What do you mean its locations s gives it constraints . Turkey is extremely depends cant on russia for its Energy Resources and that constrains turkey greatly when it comes to turkeys influence in places where turkey is in russians influence overlaps, so turkey has to play a careful line with russia when it comes to any policy in europe, in this ongoing standoff between europe and the United States and russia with the United States backing the western campaign against russia. Turkey cant do anything to jeopardize that energy relationship. Same thing when we look at iraq as turkey tries to secure Energy Resources there. When you are in turkey you can be in europe or in asia. Turkey, for sometime turned its direction clearly toward europe. They are a member of nato. And there was discussion about them becoming part of the e. U. Where does all that stands . Well, of course turkey is still a part of nato, but, you know, turkey is sort of an uncomfortable member of nate open. U. S. Wants to recruit turkey in to its Alliance Structure as part of this european front against russia. But turkey, of course, has its reservations it needs to depends still on russia for the energy needs. When it comes to turkeys e. U. Membership its simply not happening. I think turkey has come to terms with it despite public statements. Floss way germany will permit an expansion to turkey which it comes to membership. So turkey is really just trying to campaign to make sure that it becomes part of any economic agreement between the u. S. And the European Union. But as far as deeper political integration with europe, that simply isnt happening. Lets talk a little about the role that turk is a playing in the current conflict in iraq, and in syria, even in gaza. What how do you characterize the role that turkey has been playing in the middle east . Complex. And full of constraints. So if you start with iraq, right, turkey under the a. K. P. Has basically adopted bar san is k. D. P. In Northern Iraq and saying we are taking a gamble on the kurds in Northern Iraq and say well make them dependent on turkey as their main export route and there will be compliment cam conditions attached to that. But turkey was operated under the assumption that iraq is already broken and so they can convince investors that is the way to go. They can bypass bag tad and export oil unilaterally. That hasnt quite worked out to turkeys plan. They can simply not stand up to not just baghdad and the United States as well as iran in trying to completely bypass the iraqi government. Because iraq simply isnt broken. That was a false assumption that the turks made. And then you are talking about syria, you know, turkey and syria were allies. Bashar alassad had a good relationship. He was under a lot of pressure to break with syria. He did. And it almost seems like he went from one side all the way to the other side. Financing and arming the rebels. Thats another example where turkey got ahead of itself and made false assumptions. They wanted to basically raise in its shadow to show this is the example of a political model for a moderate islam. It didnt work out that way as we have seen on the battlefield, its the more extreme jihad i haves that are dominating the battlefield there. And assad, his regime has held together. As we expected so turkey doesnt have a strategy for syria any longer. It will have to make its peace with that regime in damascus. Whether it comes to gaza, there is a lot of discussion about the fact that turkey is one of the key groups that are often said to be financing hamas. Do you believe that to be the case . Turkey certainly has a relationship with hamas and its quite open with that relationship. And we have seen turkey try to mediate in the gaza crisis along with qatar. How far that goes is still in questions. Iran has a robust relationship with hamas and know that the military relationship there is key as islands been a major supplier that hamas has used to threaten israel which has caused, of course a number of these cyclical conflicts in gaza. So turkey certainly tries to to but i think their influence is limited. Thank you for being here. Receive a is a Vice President of Global Analysis joining us from austin, texas. Sanctions are not stopping an american oil giant from drilling in russia. Plus why the law of supply and demand doesnt apply when we talk about oil prices in america. Get your damn education. Surprising oh, absolutely . Exclusive oneonone interviews with the most interesting people of our time. Youre listening because you want to see whats going to happen. I want to know what works what do you know works . Conversations you wont find anywhere else. Talk to a a lot of these mining sites are restricted a silent killer. Its got a lot of arsenic in it you know your waters bad, and you know youre sick unheard victims. 90 of the people will have some type of illness from the water. Where could it happen next . I mean they took away my life. Fault lines. Al Jazeera Americas hard hitting. Theyre locking the door. Ground breaking. We have to get out of here. Truth seeking. Award winning, investigative, documentary series. Water for coal only on Al Jazeera America moscow and washington are trading sanctions over the crisis in ukraine, but exxon mobile is above the fray. The texasbased oil and gas company and its russian partner started drilling to oil in the arctic over the weekend. Russias large he have oil company. Under u. S. Sanctions its barred from getting longterm us financing, but because the deal we can an was inked back in 2011. This deal is moving full speed ahead. The question is what happens if these sanctions stick around . Russia needs exxons expertise to develop new oil fields. 40 of russias federal budget comes from the oil sector, but more and more of russias oil deposits are being discovered offshore in the arctic. The region is rich with billions of dollars in untapped resources but russia Needs Companies like exxon to build the kind of coldsweather offshore rigs that extract the resources. As david shoe ter reports, a melting arctic is now unleashing a wave of competition by those looking to cash in. Reporter its a race for riches in the arctic circle. Once a frozen expanse populated by arctic thrill seekers today the arctic is melting at an impressive rate. The polar ice cap has retreated about 40 since 2007, with this that you comes access to billions, maybe trillions of dollars in untouched resources. The u. S. Geological survey estimates the arctic holds nearly a third of the worlds undiscovered natural gas and 13 of its crude oil. Most of it offshore. In april, russia jumped the head of the race shipping its first tanker of arctic oil from the gas drilling platform just off the russian coast. Shell, chevron and exxon mobile hope to follow, spending billions on offshore arc hick leases of course even china is jumping in to the race with its stayedowned oil coming winning a bid to explore the waters near iceland of but the arctic promises much more than petroleum. Some of the Worlds Largest mineral mines, nickel, sync zin. Earth elements, water, timber, fish, a whole holt of resources, including renewable energy, such as title and wind as well. Reporter the that you is evening new shipping routes, each summer thousands of tourist cruise ships once impasse i believe route. The waters off russia. Its increasingly used for cargo ships. Russia sent its first super tanker through the nsr in 2011. By 2020 the country predicts more than 30 milliontons of goods could travel the route each year. Reporter despite president putins claims, russia is just one of five nations with clear land rights in the arctic. Norway, denmark, canada and the United States can also claim up to 200 miles off their shores as exclusive economic zones. But beyond that limit, the rights to riches beneath the arctic sea are up for grabs. So far, all territory think claims have been settled peacefully. Arbitrated by a United Nations treaty called the law of the see. A treaty the United States have refuse today join. At the 1982 u. N. Convention sets the ground rules not just for the arctic but all oceans in the world about where injuries dickal lines are, its the overarching framework, bed work of law in oceans management. Embarrassingly the United States has not yet joined the treaty. Reporter president obama once again urged congress to ratify the law of the sea a move supported by the clinton and bush app administrations before him. Until conga proves ratification, many analysts believe the United States will be left on the sidelines as the race for arctic resources speeds ahead. David shuster, al jazerra. Joining me now is the executive director of the Arctic Institute in washington, d. C. He says if russia wants to secure its Economic Future it has to look to the arctic and liklikely lean in company like exxon in the process. Good to see you, thanks for being with us. Thank you so much for having me. Walter, whats the issue you here . If the sanctions continue this deal with exxon mobile is grandfathered because it was inked in 2011. Does russia have the ability to extend it and do more with exon the mobile in the fashion of sanctions . Well, i think in the shortterm they should be fine. They have quite a substantial number of cash on hand. They signed a few deals, ideal earlier this year with the Chinese National Petroleum Corporation and they have credit line as well. So i think in the shortterm they should be fine. But you are right, if these sanctions should last more than a few months or two to three years, i think they could look arctic developments could take a hit and slow down stan shaly. The only hankse hankses are n financing, am i right . There is nothing he is that prevents russian explorers and developers from continues something. Yeah, there are two aspects. Financing is one aspect and we have the technology as well, as you mentioned we are going in to the arctic, going offshore, thats quite an advanced technological needs right there. Thats where Companies Like exxon and Chinese National Petroleum Corporation come n you need to partner on those large offshore developments. And thats i think where the tricky part will come in in the longterm that russia by itself does not have the Technological Capabilities to develop resoreses by itself. Why does russia not have these technological abilities . They are one of the most advanced company that his has access to the arctic . You are right. But a lot of the russian developments was on shore. The first offshore was started in december, this is the second one. And really the first one offshore. The one in december was just a few kilometers offshore, this is about 80 miles offshore. You are looking at very harsh conditions you have two to three months of no ice and then a shoulder season a month before and a month after in june and november where you have some ice and then the rest of the year you have a significant icepack. So this is very newar new architecture, very new technology that to build rigs that can withstands harsh conditions negative 30, 40 agrees, ice six, eight feet thick, thats very new technology. The issue you, though, with respect to the arctic is not just oil and gas, the arctic has become particularly with some melting, has become a target for everybody including the chinese who have no particular arctic claim. The idea that its full of of rf resources and melt ago way is exposing some of it. You are right. Its a new frontier and a lot of resources have been discovered and being explored in africa and north america. The arctic is the last white spot on the map. Ice is meeting, countries have access to new resources one not not underestimate that it will be very expensive and take a long time to develop the resources, often we call we call it an arctic race, but really is more of a marathon, these are the first steps of venturing in to the arctic it will take many years if not decades to develop these resources responsibly. And it all comes down to financing and to the prices. Right now the oil price is very high and that allows some of those developments to go forwa forward. But if the oil price develops below a certain threshold Companies Might look elsewhere. Good to talk to you. Thank you so much for your insight. He is the executive director of the institute in washington, d. C. Did you so much. Would you go to work if there was a chance that you could get ebola there . Me neither. Ill tell you how a Health Crisis could turn in to an economic crisis coming up. Plus how some ordinary americans are taking matters in to their own hands to protect themselves from the potentially explosive danger of transporting oil by rail. Theres no way i cant. I would like to run for president of the United States. Confronting fears i have a confession to make. I dont wanna have to take out loans. I took the pregnancy test. Making their future, real that dream was crushed, youre done. You werent good enough. Fifteen cameras, one incredible journey let me experience life, let me fly, let me be a bird. I know what i want, i know what i have to do to get it. Revealing, intimate, unexpected you will not believe what just happened. This is life im just gonna prove my family wrong. On the edge eighteen coming september only on Al Jazeera America the ebola crisis has people debating the question when a Health Crisis becomes an economic crisis. The question is particularly strong after last weeks Washington Summit with African Leaders that resulted in new public and private investments totaling 37 billion between the United States and africa. Now, alongside that threeday vent was the growing story of he bowl actual the out break has claimed nearly a thousand lives and quickly becoming an economic issue for guinea, sierra leone and by beria. Joining me to discussion the implications for african is john campbell. And former u. S. Ambassador to nigeria. Good to see you, thank you for being with us. Thank you for having me. This is a tricky one. There you know, depending on where you get your news, this is either highly containable and okay or this is a pandemic that could possibly get loose and take over the world. What is the sense of how its playing in africa . Well, africans are deeply concerned. Now, the three countries where the disease has rooted itself, are all small. They are desperately poor. They are all recovering from civil wars. Right. The Economic Impact in those three countries, has been significant. But i dont think you can say its been significant for the region as a whole. Percentage wise its been significant, but in absolute terms they are not big economies. Thats right, exactly. The one that we have to watch out for is nigeria, it is a big economy. There is ebola there, nine or 10 cases. The nigerians have been moving very aggressively to contain it. And one hopes that they continue to be successful. However, boarders in west africa are very porous. Right. They are very, very difficult to control. Which means the flow of people in and out is not something that governments can simply put a stop to. When it gets to, as you said its in nigeria yeah, but there are big population center, the capitol of nigeria is twenties Million People or more. It is indeed, yes, thats right. And they live, many of them, packed together in essentially slums. So we have take then view, particularly with those americans who have been infected that have come here that we can treat them some . Fashion or contain the illness here in the United States. Oh, yes. There has been talk by the cdc and other health experts, the dissemination of information is such that you could probably contain it. We learned from sars. And other methods. Can they replicate that in africa if it becomes bigger than it is . It is considerably more difficult do it in african that to do it here. There are strong cultural inhibitions against the protocols that are most effective with ebola. Which is to say quarantine and then tracing all individuals who came in to contact with the person who has become ill. One of the innin insidious thins about ebola is its spread by contact with bodily fluids. That includes sweat. Right. So if you are wiping the brow of your mother who is dieing of he bowl arc you can come down with it. You are also going to be most reluctant to have your mother quarantined away from where you can help care for her. Right. Is there some hope that if it gets to bigger centers, that the ability to impose those protocols is better than it is in the countries that its in right now . You did mention they are recovering from civil war, they are extremely poor countries. Nigeria has its problems. Yes. But from a scientific and medical perspective its more advanced. I also think in nigeria Public Programs which they have launched with a vengeance have a greater chance of working there. For one thing there are 350 different lang wins in nigeria there is only one legal language and its english. There is one way to get it out there. The council on for relations was following this and we were the exchange between the lead nurse washington. They all had to be screen today he bowl a coming in and out. Certainly an over hang to the conference but did get . Deals announced. Oh, yes. 37 billion, while its an entire continent, thats a big deal. Its a you watershed for america and africa. Its a big deal. Does this have any relationship to that . In other words, does ebola threaten any of that . What ebola does is casts a cloud over the optimistic news. Now, part of that cloud comes from the disease. But part of that cloud comes from reporting of popular reaction to the disease. Right. For example, from sierra leone there was a young man quoted as saying, my sister did not die of ebola. Quarantine is unnecessary. She died from witchcraft. Right. So that creates a sense of not being on top of the situation. Thats right. All right. Ambassador good to talk to you thank you for being with us. Thank you. John campbell senior for policy studies at the council of Foreign Relations and former ambassador to nigeria. America is on track to lead oil production. But the price of energy i keeps rising. Why . Ill tell you coming you feel creative types are creating middle class jobs. On tech know, the system is paying attention. Life saving technology. I definitely slowed down as a result. Transforming the way you drive. Maybe crashes wont happen any more. Smart cars of the future. Whoa. I would have driven straight through that. Tech know, every saturday go where science meets humanity. This is some of the best driving ive every done, even though i cant see. Tech know. Were here in the vortex. Only on Al Jazeera America. Al Jazeera America presents a Breakthrough Television event. Borderland long held beliefs. Im really pissed off at the mexican government. Give way to compassion. If you feel tired, would you turn around and come back . Our teams find out first hand how treacherous the migrants journey can be. We make them take a trip of death it is heartbreaking when you see the families on top of the rail car borderland continues only on Al Jazeera America Americas Energy revolution has created thousands of jobs, billions in revenue and some terrifying accidents. Many of those accidents involve shipments of oil by rail from north dakota. A subject we have covered at length on this show. Now over the last 18 months, at least a dozen trains carrying crude oil have derailed. Six of them led to spills and major fires. One killed 47 people in quebec. That sparked the u. S. Government to propose tougher rules on shipping oil on trains, but some communities taking matters in to their own hands when it comes to monitoring whats traveling through their cities. They are forming train watching groups to find out all they can about the oil trains, alan visited one train spotting community 30 miles north of seattle in everett, washington. He has this report. Reporter dean smith on a late night watch for oil trained, monitoring tracks just a few feet from public buildings. How many people here . 100,000. Reporter when he found nobody could tell exactly how many of these trains rolled through town, he organized volunteers for a weeklong train watch. Everybody seems to be turning their back on this problem. So we feel that we as citizens have do. Reporter they counted 16 oil trains that week, carrying an estimated 52 million gallons of crude from the oil feels of north carolina. Just two years ago north dakota, just two years ago they might have seen a few oil cars mix Million Dollars with other cargo but none of these hundred car unit trains with the 1267 placard denotin denoting backen. The first one rolled in in 2012. This is a new industry for almost the whole country reu6789 reporter eric sees oil trains as rolling bombs. Like the one that derailed and exploded in quebec a year ago. The accident blame odd human error gutted a town and killed 47 people. You are looking at 3 million gallons of phone shaly explosive fuel. Thats nothing something a small town can deal with and not something the railroads are stepping up to deal with. Reporter railroad spokesman gus says they are stepping up. He called stiff a top priority and sites bnsf spends on the Ground Training and infrastructure and studier tank cars being phased in. As we speak an oil train rolls past us through south seattle. Right now there is a demands and we move the products that american demands. Reporter the department of f transportation has been ordered to provide information about how offense the big trains run and how much they carry. Many states Like Washington have made it public over industry objections. We dont feel its necessary for everybody to know what we are hauling its customer information and for security. We provide it to the people that need to know. Reporter dean smith and his volunteers are marredly alone in their efforts. Vancouver washington activists are encouraging twitter arent on every oil train spotted. The for of the ethics Environmental Group has created a map showing rail line blast zones across the country. Urban train crossings are easy targets for growing protests in the west like this one in seattle. Smith says he knows his group cant stop the railroads but wants to track the numbers and help the public as a matter of safety. And he has a simple message for government, railroads and oil companies. You have a real job here to do. And if i have to tell you what that is, then i will tel tell y, but i want to pay attention. Reporter track side on the train wash, alan shove her, al jazerra, everett, washington. One obvious and safer al alternative is moving it in pipelines but if you have been following the debate over the keystone xl pipeline you know that they are not without controversy either. Contract i cans o icritics of ps to go a new stud by how much keystone xl will affect global warming. I will tell but that in a moment but first the background. Keystone xl would run from alberta, canada to steel see, nebraska connecting with exsift pipelines there to take oil from canadas oilsands to the u. S. Gulf coast its oppose bidened y environmentalist and some lands overs. The state department has to determine if it would quote, serve the national interest, end quote and includes checking in for the environmental impact. Now, back to the study. Scientists at the Stockholm Environment Institute a keystone xl would increase world Greenhouse Gas emissions by as much as 121 million tons of carbon die objection aid a year, four times as much as the state Department Said earlier this year. Know whats really interesting is because a pipe lynn doesnt give off any emissions whatsoever. Whats really interesting is how the scientists came to that conclusion, they say the pipeline will potentially boost production from the canadian oilsands, which is probably true, and all the extra oil will reduce prices by about 3 a barrel. Cheaper oil prices the study argues will increase Oil Consumption and boost pollution. You got that . Steven leak doesn doesnt bt theory, he says finding and producing more oil will not translate in to cheaper prices and mean more consumption, you are in addition to being an economist and an investor, an oil expert. Steven, i dont buy this theory either. Let me show you a chart about consumption and production in the United States. We have been increasing production for years in the United States. And consumption has been decreasing. Its hard to see because its not a big curve, but this is how much we consume. Its been going down, since to thousand four, its been going down. And the amount we produced has been largely going up. Right. I mean, you cant really convince me this is true, since i am paying over 4 to get from here to connecticut. Doesnt make a whole lot of sense. But the reason its happening, ali is that it takes a lot of energy now to make energy. All the easy energy basically has been taken. Right. The stuff that you can just drill a hole not ground and oil spouts out. Drill a hole and oil comes out. We talked about arctic oil and exxon mobile and russia. That takes so much. At the extreme if you want to picture yourself on a a Little Island and every day a certain amount of iron orr comes in, a certain amount of people, water comes in, et cetera, and you need all of these resources to produce energy, game over. There is nothing that you can do with the energy. The Fastest Growing part of this economy right now is actually energy prediction. That sounds great if you are living in north dakota. Right. But if you magnify that through the entire economy, there is no room for anything else. Oil prices are going to rise because its going to take more and more resources to produce it. This is important. We are not producing all that extra energy to consume testimony because our consumption is going down. We are producing it to sale it . Right. Well, we are producing it, this extra energy, because we need the extra energy that we are actually producing, we are using Additional Energy to produce it. In other words, if we were using the same amount of effort as we were back there in 2003, this thing would be all the way down here. Right. We need we are not using this extra energy for the sake of the consumer, we are using it for the sake of the oil industry. So, for instance, the oilsands, up in albert actual its oil trapped inside the soil. Right. In order to get out you need hot water and steam which you use natural gas. Right. To create. Exactly. You need all these resources, water, people, natural gas, steam, everything that you have said to get it out. Pipes. Yeah. That you could be using it for other purposes like this pipeline that we may build that you were just talking about. Right. What else could do you with that money . A lot of very good things in this country just one quick point. We front load everything. We want these rail cars are oil right now. They are on the west coast we want them on the east coast. Has to be now. The chinese on the other hand, have a different philosophy, which people i think miss they back load things. Right now, they are building out a smart grid. They are willing to spends a trillion dollars without getting any return because they know in 10 years that smart grid will accommodate solar, winds, geothermal, oil, gas, coal what have you all in to one nix. And we dont do that. And another thing, if you look at renewable energies, wind, you have to spend millions of dollars to create a fivemegawatt wind turbine. Those millions have to be spent before you get any of the energy. But once the Energy Starts it doesnt stop. And its free from then on. Its free. But we are unwilling to put the money up to begin with. And solar. Solar the same thing. It comes down to an infrastructure problem. It does, ali, it does. Some of the infrastructure that we have now on the east coast, i cant believe it, its circa 19th censure. I we have the same electrical grid here that gave us a blackout a decade ago. Yes, edith morton used some this electricity from this grid. Its insane. You and i share the view, one must read your book to understand how critical this is. Chairman of the group and author of many books on energy. Thanks, ali. Depending really on where you live, how far you have to drive, thats the up shot of a new study by bank rank that ranks the cost of car ownership in all 50 states based not just on gas price buzz insurance and repair costs, the National Average to run a car is 2,223. This, by the way, has nothing to do with actually paying for the car. This is all the stuff that you have do with it. And the gas you have to put in it. Wyoming is where its most expensive. 2,705 a year mainly because wyoming drivers have to travel longer distances than people in other states boosting the amount of fuel that they consume. Lew ha has louisiana the seconds highest costs and florida the third highest. On the other spectrum. Iowa the cheap e. 1,942, partly to having the lowest Car Insurance rates in the country. Ohio ranks second, and illinois is the third cheapest in the country. Coming up how some out of work americans have been forced to get creative literally. Going insight the Artisan Industries helping create middle class jobs. From around the world. First hand reporting from across the country and real news keeping you up to date. The big stories of the day, from around the world. These people need help, this is were the worst of the attack took place. And throughout the morning, get a global perspective on the news. The life of doha. This is the International News hour. An informed look on the nights events, a smarter start to your day. Mornings on Al Jazeera America this, is what we do. Al Jazeera America. I talked at length last week about the new normal economy. And how the rules of the economic game have changed especially since the great recession. The reasons include technological advances thats been going for years. A shortage of middle class jobs as a result of that and companies that continue to cut jobs and costs in response. Its a circle. Some young people are turning their backs on Corporate America and they are helping fuel what some labor experts are saying will be a reemergence of an artisans or of artisans is a months earn day force, they are craft, creating and using the latest technology, we look a look at where one of the largest clusters of these new Artisans Congress got at the former brooklyn headquarters of pfizer. Reporter the pfizer building is this Amazing Community of different food businesses and designers and artist. Reporter in 2008, pfizer closed down its massive brooklyn headquarters. The 660,000 square foot b behemoth. Now houses 100 Small Businesses that represent a growing movement throughout the country called the artisan economy. What we have seen with this movement is that there is a harder, more difficult job market today for younger people and i think its forcing them to be a little more creative with what they do with their career. Reporter the decline of traditional middle class jobs and high unemployment rates for Young Americans is fueling a budding Small Business industry, marked by a creative entrepreneurial spirit and social consciousness. We met with four businesses here that represent specific elements of the new artisan economy. 30yearold kristen is the owner and founder of the factly. She left the real estate business in 2009. I first started out making i made a small line of furniture. My favorite part about actually making this stuff is being able to set the pace. Reporter the base at good eggs is a bit them tick, josh is the manager of the farm to fresh local deliverly service that handles 400 orders a week. The customer places honored online. The orders are relayed to local farmers, they bring them to us and, we route out the orders, so each line represents a delivery route. What they are not delivery yet is profit. Right now we are just a start up and looking at metrics like how quickly we are growing. We have been able to grow since last november at a rate around 5 a week. Reporter so far good egg has created over 20 200 jobs and has four food hubs across the country. Economists say the new sor artin economy will help the u. S. Company by creating jobs that have been lost. Located two floors above good eggs is found an ma. I wanted to kind of figure out a way to make an accessory that could help raise wareness and start conversations about the important topic of rescuing animals. Reporter owner bethanies handmade dog colors sale for about 60 in over 500 stories and 30 countries, a portion of each sale goes to Animal Rescue groups. I lover goingroups. I love going to work every day and inning cred able to see my dream become a reality. Reporter on the same floor as found mayan maam. Tims dreams have become a reality as well. I left American Express right before the Financial Institutions crashed in 2008. Reporter tim never forgot about the two years he served in the peace core a decade ago. Very little chocolate was produced there. We realized the he inequality of the country producing the crop and the welly country producing the chock los angeles. That defined why there is such an inequality between africa skpreft of the world. Reporter in 2008 tim and a partner created a company partnering with Cocoa Farmers in a factly in madagascar where their product is manufactured employing over 200 locals. We have grown revenue 40 to 50 every year since we have started. So by that measure we do well. But the initial reason for us wanting to start the business was social impact. Well, according to the Small Business report, the new artisan economy will see rapid growth in the creation of Small Businesses and attack highlyskilled talent by offering flexibility and in many cases highly competitive salaries inspired by local artisans in portland, oregon he decided to study them and says this is not about the sales of irrelevant cute things. His observations resulted in a book, by watt, its called brew to bikes. Joining us from portland, i gotta tell you, if i had to guess i would have guessed that the guy that would be an expert on the topic was somewhere from the Pacific Northwest and, yes, i was beginning to wonder whether this was about irrelevant cute things. Tell me about my assumption, that i amex an rating a bit am d tell me why i am wrong. There are longstanding artisan businesses creating 100 million revenues each year. With he have a couple in the portland, architectural tile they employ about 90 people. And they have over revenues over 109 million a year. We have bulls eyeglass, it employed about 125 people, they have 24 million a year revenue. These are not Small Businesses. If you look at our craft brewing industry, just that part of the industry alone in portland is worth about 500 million a year. These are not Small Businesses. Exactly. A, they are not small, b you mentioned a anybody of things and he with saw in our story about this chocolate maker and i think thats interesting. That didnt strike me as artisanal it, struck me as socially conscious. How do you define the artisan economy . I think you identified many of the aspects. Its local, hands made, there are a craft orientation. A lot of autonomy by the people working in it. That tends to be one of the things that we really focus on, the ability to create their own product, business to his follow their interests and passions. Its all about different relationships with the people who buy their products. Its more appreciation than consumption, if you look back at the industrial economy, you are creating things that need to be consumed. And they are kind of medium range, but when you look at the artisan economy, these products that they are producing are things that you appreciate, they have a narrative with them. There is a connection to the person that makes them between the maker and what i call the patron rather than the consumer. And there is also the work life is changing, this idea that we separate the social and the production part of the economy. Thats changing a great deal. So, in other words, there is less separation in the artisan economy between production and life . Yeah. The connection between your work life and your social life is becoming the very blurred boundaries now. And you pointed out the socially conscious nature this, idea that there is a complain of accountability between who is produced and who is producing it. And the connection to that patron in the end. Its interesting, you use the word patron. Patrons have existed all through history and in most cases they are wealthy. In other words, the wealthy can had have an artisan economy because they could find someone to custom make cars, boats, whatever it is. This is a smaller scale. The customization that this product is for you not mass produced in a factory. Sabbatabsolutely. Grand Central Bakery is an example. Producing breast thats custom made. Not really large number of his bread of loafs being produced but produced in really high quality and they are selling to consumers, just regular people like myself and other people. And their prices, if you rule look at them are not all that different. I did an interesting look in my book in the introduction, i wet do this cafe with my granddaughter called Petite Provence and we ordered, you know, pest owe basil eggs and really nice things, little flan came out afterwards and it was really a very nice quality sort of brunch in the morning and just as a test i went afterwards to check on the prices to see if that would compare to something at a fast food restaurant. What i found is that basically the prices were not all that different, they are probe deucing for people that were ordinary people. Its just that now we have this huge selection of really distinct and unique products in portland and other places like brooklyn, where you know, we dont need to just go to a starbucks anymore, we can go to the 20 or 30 different kind of coffee brewers that are working around here in coffee shops. Hundreds of coffee shops. You are shamed me charles, for my misconception misconceptd preconceptions about the artisan economy and i appreciate you doing so for my sake and my audience. Charles is an associate professor of urban studies and planning at Florida State and the author of brew to bike. More pain for the post offers. I will tell you how much money they lot and what needs to be done to clean up this mess. In depth coverage. Weve got a military escort allowing us to feel a further than everyone else. Real global perspective this was clearly an attack against them. From around the world, to the issues right here at home. Shouldnt been brought here in the first place. Were not here to take over real stories. Real people. Real understanding. Where you scared when you hear the bombs . Al Jazeera America real. News. Consider this the news of the day plus so much more. We begin with the growing controversy. Answers to the questions no one else will ask. Why did so many of these People Choose to risk their lives . Antonio mora, Award Winning and hard hitting. People are dying because of this policy. Theres no status quo, just the bottom line. But what is the administration doing behind the scenes . Real perspective, consider this on Al Jazeera America we learned today that the United States state post office lost another 2 billion in the three months ending in june thats after losing 1. 9 billion in the first three months of the year. The post offers money lose being streak goes on despite higher prices for packages and shipments and a price like that took evenin effect in january. Cream are people are sending less mail than they used to with email and all things digital. But thats not so much whats doing the Postal Service in. Its the cost of its workforce. The Postal Service owes 100 billion in benefits payments for workers past and present. Postal service keeps defaulting on those payments and what needs to be done is for congress to legislate an overhaul that would change the Postal Services Business Model reducing its gar gap an financial burden and in the meantime they want to cut costs in other ways, one proposal is cut back on saturday deliveries but there is a pretty strong lobby against doing that. The other option is to try to cash in on the Online Shopping craze by shipping out more packages. The higher revenue numbers so its working up to a points. More needs to be done to kuyt are cut down the costs but to do it suck. I, Congress Needs to act. And dont hold your breath for that. Thats our show for today, i am al see velshi, thank you for joining us. Los that void. There is a huge opportunity for Al Jazeera America to change the way people look at news. We just dont parachute in on a story. Quickly talk to a couple of experts and leave. One producer may spend 3 or 4 months, digging into a single story. At al jazeera, there are resources to alow us as journalists to go in depth and produce the kind of films. The people that you dont see anywhere else on television. We intend to reach out to the people who arent being heard. We wanna see the people who are actually effected by the news of the day. Its Digging Deeper its asking that second, that third question, finding that person no one spoken to yet. You cant tell the stories of the people if you dont get their voices out there, and Al Jazeera America is doing just that. Earlier today vice presideno congratulate him and your honor him to form a new cabinet as quickly as pass. Ill the u. S. Prespassthe. The u. S. President endorsing a new prime himster but Nouri Almaliki is refusing to go quietly. Hello, i am laura kyle and this is al jazerra live from doha. Also at odd program. Lies in ruins, gazans scour through the rubble trying to assets the damage as a true between israel and hamas enters day two. Russia