Today, ukrainian president , roishenko, said that rebels are pouring in, and six more ukrainian troops died today. And nine more wounded. Meanwhile, russian president , vladimir putin, accused the United States of foam enting a new cold warp. Russias president is still strong. The german business groups have been some of the biggest opponents to western sanctions on russia, and even so, the European Union promises more sanctions in the pipeline if russia doesnt back off. And ukraine, thats why putin is warning the industry and agriculture to come up with plan b. Today, putin urged companies to sale to russias domestic market and away from trade with the west. And indeed, they have set off a new doled war, and the weapons are not planes or rocket launchers, though we have seen plenty of that on the ukraine, its everything that the people need to live, these polish apple farmers are on the front lines of a war waging between russia and the west, sparked by the real war in ukraine. Polish apples became a casualty after moscow slammed the door on most imports from the European Union. A tit for tat. An hour south of warsaw. Orchards as far as the eye can see. The apple. Poles love these, but in 2013, poland ex sported 677,000 tons of apples to russia. Thats 56 of all of its apple exports, and that all ended on august 1st. Theres nobody to buy those apples now, and thats going to cost polish apple growers 659 million this year. For apple grower, the situation is dire. In a typical year, 40 of the apples he grows are shipped to russia. Without russian clients, his livelihood is in jeopardy. Its a panic. And that panic over apples is a symbol of much bigger fear spreading across the european continent, whose Economic Health was already turning rotten. The conflict over ukraine and the sanctions that followed has dealt europe another blow. No where is the fear greater than in germany. Europes finest is 23589ering badly. As far as the crisis in ukraine, german exports fell. And many analysts forecast an out right recession in europe as it grapple with the fall out from ukraine. Sanctions are taking a big toll on russias already stagnating economy. Oil prices put it on the brink of recession. The ruble fell to record lows, and the bank of russia projected that investors could yank 28 billion out of the economy in 2014, more than double they took out the year before. And since sanctions hit, food prices in russia have soared, in some casings by as much as 30 . And that has prompted some russians to stock up on groceries in places like poland, where the prices are cheaper. But despite the sanctions, president putins a hold on power doesnt seem to be sanctioned. The most immediate seems to be among the elites, and the oligarchs and the tycoons around him, where their access to western capital has been limited, theyre more dependent on the drem lynn. Russia holds oil and gas, half of the countrys federal budget. And that has been spared, at least in the shortterm, from russian sanctions. The big reasons, russia supplies about one quarter of europes gas, and half of that travels through ukraine. During the 1980s, moscow built a web of pipelines, linking its siberian gas fields to gasthirsty households in eastern europe, using ukraine as a transit state. And that means that its vulnerable if it turns up the sticking on the like it did over the summer. They temporarily allowed russian gas to flow as winder loomed. But that doesnt solve the issue of whats going in eastern ukraine. Theres fighting there. And there could be sabotage of a pipeline, and there are no guarantees against that. Back on the front lines in poland, restaurant owner, lushio vachi, said another grass disruption would raise energy costs and tighten his budget. His pizzeria rise on natural gas for both heating and cooking. Poland rise on russia for 2 3 of its natural gas imports. Its a big problem. A very big problem. In the economy in a bold attempt to fix that problem, poland is taking the most aggressive action of any european country to free itself of Russias Energy dominance. Poland expects a natural gas terminal to be built by 2015, and that will help poland wean off of the 10 billion cubic metres of natural gas it imports from russia, and half of that will come into the terminal by ship. On a remote polish island in the baltic sea, the poles are building this enormous plant to import natural gas. It began three years ago in part by russias decision to turn off natural gas supplies to ukraine in 2006 and 2009, which affected supplies to several eu countries. I sat down to discuss it with the former polish president , and icon, lec wallenca. Poland has the problem where natural gas knolls a little bit less, and do you think this is going to happen less this other countries . Just a few more months, years, and well be completely independent of russia. Russia will lose out because we and others will not do it. The future belongs to energy, and one of the foundatians is going to be access to your own source of energy, and the cheapest energy. Those cheap prices are needed for both residents and business. Particularly for businesses that require a lot of energy. But thats the problem. Energy independence doesnt come cheap. Gas deals negotiated with qatar are expected to cost at least onethird more than what the poles currently buy from russia. In part because of the distance that the gas has to be shipped and yet the project is moving forward anyway. Its a sign of how europe treats another sign of gas disruption from moscow, and its part of an economic war that has planted disconnect from berlin to apple orchards in poland. Two of russias neighbors that are heavily independent on gas, have agreed to connect gas lines together through an underground pipeline. With more on the oil and energy sectors, and in that story you just saw, we heard lech walesa say that we will be completely independent of russia soon, and russia will lose out in the end. Is that true . They have a deal with qatar that theyre probably going to pay above market prices, and they will be secure, but at a significant level thats going to be pax odd to consumers. This is a twoway street. Russia likes to pose itself as a reliable supplier and doesnt like to cut people off because it obviously cuts the flow of revenue. They have reached a deal with ukraine and theres a price, and it should get the gas flowing this burned. And that has been taken care. The forward market for natural gas is not showing, and its down over where it was a few months ago. So its true that poland does have what they really wanted to do was establish their own shale gas deposits in the shale gas industry, and that has not happened. That has been the biggest disappointment for poland, and they looked like they were going to be number two over the u. S. In terms of having a shale gas revolution. Where does the shale gas stand in europe . There are places where they can frack, but its two steps europe. The main thing in you were, the mineral rights were owned by the land owners, and that has given them a Significant Interest and benefit to allow them to be on their land. And the land owners view this as a disruption. In poland, they did open up a lot of areas for exploration and licensing, and quite frankly, the licensing terms were not that great. And the youre occupancy they had to deal with were significant. And while theyre interested in building their arrives and going forward, theyre not going to do it at any price, and if the terms are not good, they will do it somewhere else. They will pay to the shareholders, and the buy backs, and theyre competing with other countries and exploration. Why is it that poland and ukraine were getting natural gas from russia at a discounted rate . Why werent they paying market prices . They were paying market prices and the l and g were expensive. But if youre going to liquefy natural gas and put it on a ship and move it somewhere, its more expensive than pipeline. So its not something that theyre not market prices, its just that l and g is not the cheapest option. Lets talk about where this goes. Europe, as you know, struggling with economic growth, and so is russia at this point. And the issue here is if anybody gets gas cut off to their industries, or pays a higher price, because its l and g coming through pipes, what is the Impact Likely to be on these economies . Lets look to this winter. The stores right now are in good shape, and the revenue is relatively low. And if you get a warm winter, i dont know what constitutes warm, but if they get a warmer winter, they can cut their own demand by 20 , which is a significant number, they think they could get through the winter without any russian gas. One of the things that they have going for them, its two sides of the coin, they have a very inefficient Pricing System in ukraine and it tends to encourage wasteful consumption. And if they can change their Pricing System, they can get a lower demand that reflects the truet. So they feel that they have a lot of ways to go, and a lot of progress to make in reducing their demand, and a lot depends on the weather obviously. But they feel pretty confident going into the winter. When i was in poland, in addition to eating apples, i was talking to people on their sense of dependency with russia for the natural gas. Obviously talking about the ports, but had russia not been involved in this business with ukraine, people would think less about it. So at one point does russia push it too far and people diversify . I think theyre going to diversify, but when you read the debate in europe, there are two schools of thought. One, if you let the market work, it will be okay, and the other, theyre asking for a significant role for the eu. One of the schools of thought is some significant consolidation in buying. So they go to russia as essentially one buyer, and thats the antithesis of a free market approach. But they would say with everything going on in ukraine, there was a deal that was negotiated between ukraine and russia, and we were able to fill our storage to a degree that the prices are coming down. So thats in argument of a free market. But you know, if you build an l and g facility, theres plenty of l and g in the world, and a lot of it is under contract. And a lot of it moves freely. So you have that great peaking ability that comes out of your l and g terminal thaw wouldnt have otherwise. John, thank you, the director of news at class. The new cold war is generating all the way into space. Several reports show that the u. S. Military is tracking an object launched by russias military back in may. It was part of a rocket launch that included several satellites, and initially, the experts thought that it was space junk, and now theyre not sure. It could be a satellite killer. Joining me from San Francisco to explain what that means, our science and technology correspondent, jake ward, and talk to me about this, whats going on . You know, its an amazing story. As you said, ali, this was considered space junk. Considered object 281428e, and it started to move. It began to guide itself very precisely across the heavens, and in fact, it has now reconnected with one of the boosters that brought it up there. As you can imagine, its pretty unusual for space junk, so it turns out to be something thats definitely experimental. And norad is treating it as a military object, tracking it that way. So its definitely something, and the question is what it is. And you know, having just come from this part of the world, theres a vast military Industrial Complex in russia, utterly inscrutable. And its probably part of that. And in fact, one of the things that we were talking about in yesterdays story, in the new cold war, they are using oldfashioned techniques, sending planes out there to see how nato countries will react. And how is the west supposed to react to this . What do you do with junk in space . Space is a neutral and international territory. And if you begin to mess with other peoples satellites, you get into a geo political terror situation, and scary stuff. But as long as you dont bump into somebody elses stuff, you dont need to reveal it. Russia thats not talked about what it is, so speculation ranges from it could be civilian, and it could be sort of an experiment in space, debris cleanup, a burgeoning area of space around the world, it could have something to do with a repair program, and people have talked about that up in space, but that doesnt seem lime. In the last probably five or six years, we have seen a resurgence of a program that had been shelved, the kremlin program, and it was supposed to be done with, and in 2010, the space agency announced that they were doing research into killer satellite programs, and this could be something very well be something for either grabbing another satellite and taking control of it that way, though thats silly in the age of software, or perhaps there. Im always pushing the boundaries of your remarkable brown, but it always comes back with something profitable. Let me ask you, is there precedence for shooting somebodys satellite out of the sky and drivewaying it. Theres no precedent for that, but theres a booming shadow world of antisatellite weaponry. The chinese blew up one of their satellites as an experiment. And the debris cloud that came away from that dumb experiment was the basis for the movie, gravity. It was a debris cloud that everybody had to worry about. And the chinese did it again a few days later. This is har boning back to the early days. Saying that a new cold war is the thing, and thats right. Its returning to the earliest days of space, where people were pouring money into the days of being dominate in space. The chinese have said they want to informationize war by being dominant in space, and here, we are seeing the quiet and possible militaryrized move by russia. Jake ward, thank you. Coming up next, the keystone pipeline, and the senate fails to improve it, but its not done yet. And sanctions have not pained president putin, but they did bring iran to the negotiating table over its Nuclear Program. Youre watching real money. And tweet me at ali velshi. On techknow, we should not be having earthquakes in texas the true cost of energy hits home. My yard is gone. Are we destroying our way of life . Contaminated water from the fracking activities come here they stick it to the core of the earth but this Cutting Edge Technology could be the answer the future of fracking is about the water protecting the planet, saving lives. How do you convince a Big Oil Company to use this . Techknow, only on Al Jazeera America from the white house, only 59 vote, and Mike Viqueira is on capitol hill. And being the veteran he is, we can play it up. About you likely this was going to fail. And in the end, its not a nail in the coffin in the keystone pipeline. No, its very much a political exercise, and it needs 3 5 to pass anything in the senate these days, and it would have gone to the president , and all likelihood, he would have vetoed it. And its 67 votes in the senate to override the veto and they certainly didnt have that. And not even close. Mary landrieu, she needed 15 democrats, and she got 14, and it came down to the wire, and she was pleading for approval through legislative means, for the keystone pipeline. 1700 miles, alberta, canada down to the gulf coast, to the refineries there, you know the story, and shes pleading for that, with the approval process in the administration that has been stuck for six years, but pleading for her political life. Its popular louisiana where many of the refineries are of course. And shes facing a runoff in the case of bill cassidy. The runoff december 6th, shes way behind. But no fear. The construction of the extra pipeline, remember, theres a vast network of pipelines that already exist. And some of them come from alberta and the tar sands. When the republican vote comes up, and you look at the republicans coming in, they come in in january, and they will put this to a vote. And they have 63,000, and thats at least enough to get it to the president s desk in january or february. But not enough to overcome a veto if the president , who says that hes not going to do that, does that. Not enough. But with overwhelming public support, you never know whose mind is going to be changed. Im sort of sceptical at this moment. But the approval process, incidentally, is winding down. The administration is waiting for nebraska to make a decision on whether or not their procedures have been followed to pass over the very sensitive aqua firs in that part of the state. Mike, thank you so much for talking to us. As always, i want to make sure that were on the same page when it comes to the ski stone pipeline. Its not because the pipelines have the occasional leak. America has 2. 6 million miles of oil and gas pipe lines, and i believe that in 2014, we have the technology to prevent leaks. The problem is that oil from the oil sands in canada is dirty. Comes out of the ground looking like this. This is oil i actually brought from the oil sands, it has to be processed into synthetic crude oil, using lots of hot water, which takes natural gas. That can release up to three times the emissions of the oil. And the keystone pine line, it comes days after president obama gave his harshest critique yet of the pipeline. He said that he had to push back against the idea that it would create a massive number of jobs in the tuesday or pay for oil and gasoline. But diana says thats this not the story. Shes author of more books that i can count, but the latest is the merger of the century, why u. S. And canada should be one country. They arguably use each others Natural Resources and this has become so common, but death sides dont tell the truth bank account keystone pipeline. Diane, people say that its because of leaks, but its not because of leaks. Its a sturdier way of oil than drilling to the ground. And the republicans say that it will create 40,000 jobs, and not a chance. It might create 3 or 4,000. And pipelines dont need people to run them. Whats the real truth . How we doing . Were good. In the construction phase, it could be that the state Department Said there would be 42,000 jobs created for a couple of years, and after that, the pipeline runs by itself, so its a temporary job creator, but whats important to note is that its being billed as though its a canadian prompt. Yes, the oil is coming from the canadian oil sands, but the Companies Operating in canada are mostly american owned and they have american shareholders. The oil is going down to the refineries in the u. S. To go to their clients, and it perpetuates job creation in the United States, and it does so in a meaningful way. Its tiresome for it to drag on, and the canadians dont understand why. Would it help if the canadians werent as to get this through . Youre american born and a canadian citizen. Anyone who watches tv in canada knows that you dont go to nebraska and tell land owners that youre going to take their land from them. Canada created a fight that they didnt need to have. I think its true. Its a very audacious pipeline because the American Companies who are sponsoring it, and own the oil, because theyre getting the oil out of the oil sands. But we couldnt cross border 66 times, and a recent one, the alberta clipper, takes a huge amount to chicago. So it has suddenly become a political football. In the perfect instance of cat sleeping with dogs, youre actually making the environment that this is iron mentally safer than not building the pipeline, and why . Thats actually demonsably true. We have now, because of the stranded nature of some of the oil, its not just the keystone pipeline, but pipelines throughout the United States. You haved inned in crude oil, 4 Million Barrels a day, and the stuff has nowhere to go, so its going on trains. There are oil trains one or two miles belong, going through cities. And a year ago, we had a train completely blown up by a train derailment. Carrying crude to a refinery. There have been three accidents like that since, no deaths or problems, but now theres a million and a half gallons moving through by rail. And if these pipelines arent built, its going to be 10 million someday. And thats very dangerous to the environment and to people. We have done many shoals about the oil going through. Its good to see you, diane francis, editor at large. Its time for negotiations over Irans Nuclear program. And a deal wont be able to reach in a conflict that has drug on for years. How the u. S. Got to the negotiating table. At the height of the cold war were spies. Intercepting messages from embassies, military bases. One of the americas closest allies. We were not targeting israelis. Suddenly attacked bullet holes. Just red with blood. 34 killed. We had no way to defend ourselves high level coverups. Never before heard audio. A shocking investigation a conscience decision was made to sweep it under the rug. The day Israel Attacked america only on Al Jazeera America these people have decided that today they will be arrested i know that im being surveilled people are not getting the care that they need this is a crime against humanity hands up dont shoot hands up dont shoot what do we want . Justice when do we want it . Now they are running towards base. Explosions going off were not quite sure. Fault lines Al Jazeera Americas emmy winning, investigative, documentary, series. Talks over Irans NuclearProgram Began today in very ean. Iran and sixa nations, including the United States, are facing a monday deadline to resolve differences and strike a final deal. Most Analysts Expect the deal to be extended. At issue, a Nuclear Program that the United States and others suspect is a cover for a weapons program. Iran says that its for peaceful reasons only. But this is for certain, crippled sanctions on its economy practical forced iran to come to the negotiating table, but it has taken decades for them to pay off. They have been a defining feature of the u. S. Iranian relations in tehran. Economic sanks, a tool that for decades failed to bring irans leaders to happy. For a long time, the islamist government that took over tehran in 1979 sort of lived with the sanctions imposed by the United States. The 1980 u. S. Ban on iranian oil imports. A move that didnt stop countries such as japan from buying up their crude. An effort that hampered president clintons efforts in the 1990s. But in 2006, one hardline iranian president , ahmadinejad, with the program, started to take shape. In december of that year, the Security Council approved the first line of sanctions against iran. But by 2011, with iran still failing to comply with the international demand, washington upped the ante and barred foreign Financial Institutions from conducting Oil Sanctions with irans central bank. Measures that would cull my ate in europe from blocking access to the international system. By far, its their most valuable export. And today ultimately force tehran to the nuclear negotiating table. They not only havent been able to go around these sanctions that they have done with earlier sanctions, they have admitted to themselves that theres no way around t. In 2013, under the leadership of the newly elected reformist president , iran agreed to curb its Nuclear Program for its sanctions. They know longer know if the sanctions will work, but if when. Now, the deadline for that deal is less than one week away. And i asked the you were asia Group President , one of the most influential on the planet, what he sees for a chance of a dealing reached for iran curtailing its Nuclear Program by november 24th. Slightly under 50 . Anything that could make that go up . Are there things that could be hang right now that could make it work. Look, theyre negotiating, no question, but the iranians have thrown up a bunch of issues at the end. They said that they need all of the sanctions removed. And thats not going to happen. And you have members of congress that are going to make it mer difficult if it looks like the United States has thrown the sink in. Because the top priority for iran is not that, but uner fortunately, the americans and iranians dont see eye to eye on the issue. In balance, i expect well see another extension, but a shorter one, one thats hard fought, and one that makes it tougher to get a deal. In fact, these u. S. Led sanctions on iran did work. Shut them off. Theyre partly of the world economy, and it shut them off for the parts that they needed for their oil facilities, and the part that they needed for their very big car market. That. No question. And over the course of many many years, it did bring the iranian economy to their knees, and absolutely changed their behavior. Its one of the reasons for the president today. And the iranian economy is not as bad as it was in the heyday sanctions, and inflation is under control. And they have managed to get some assets back in their control. And they can actually spend some money on their citizens. So frankly, i think if you combine that with approximate enemy of isis, ripping up the nationalism. And the notion that you will see sanctions breaking behavior from countries like russia, and maybe china, going forward, the iranians, a lot of iranians are saying, maybe we can live with a deal that we can blame the americans from effectively breaking at the end. Do we worry about russia or china breaking the sanctions because they have greater interest in not having the sanctions imposed on iran . We have to be worried about russia simply because theyre doing their damndest. This is a country thats effectively sending bombers into the gulf of mexico for reconnaissance, and its a country thats prepared to break sanctions just to no annoy the United States, to show obama that they can. If the iran deal falls apart, i dont think that the chinese want to actively antagonize, and on the other hand, they think they can make a deal. And the u. S. Doesnt want to fight. And they might start to erode. Especially if the russians are taking most of the flack out in front. Let me ask you this, we dont need iran that much. But however, we need iraq to be a real country, and iran is probably the most influential player in iraq being a real country, so in the battle against isil and getting iraq stable, do we need iran more for that than we do for anything else . Its an open question. The United States clearly feels as if it has nobody to work with on the ground except for the kurds right now. In syria, nobody period, and of course the iranian government has directly been supporting bashar alassad, and thats why obama was reluctant to have any boots on the ground or bombing in this threeyear plus campaign. In iraq, they can play more of a constructive role. But the act of the United States to engage with the iranians to make that happen, so con strained. Even sending a letter, saying that maybe we should talk about isis, set up a fire storm not only in the United States, but abroad, so in balance, i do not believe that the enemy of my brother plays out in the war in iraq and syria, and certainly doesnt with the iranians right now. Coming up next, it remembered 1980s, when japan was the economic envy of the United States. Those days are long over, and japan is in session, and what happened and how could it bring down the u. S. Me . Answers in just a minute. Music doesnt change change the world, but it does influence that way people think rock icon Peter Gabriel believes we can all make a difference get technology to people. To empower them. To become more effective giving a global stage to important issues climate change. Weve gotta take action every saturday, join us for exclusive. Revealing. And surprising talks with the most interesting people of our time. Talk to al jazeera only on Al Jazeera AmericaAl Jazzera America presents. Documentaries from around the world that inform. They were bombarded with shells. Inspire. We can deal with our conflicts. And touch our soles. It was my dream to get a high school diploma. Award winning film makers create create unique perspectives. Everybodys different here. Just gotta tell ya, it was just a very magical moment. Al jazzera america presents. On Al Jazeera America japan is now in a recession, and i told you yesterday that despite the governments aggressive attempts to jump start growth, japans economy shrank for the last two quarters, and now japans president , announced the partly mentally elections that will start next month. And a National Sales tax. He came promising, but shinsu abbe had to change his plan, known as abbenomics. It had been expected to grow, and instead, its good. Dp shrunk 1. 6 in the Third Quarter on an annual basis, ending in september. The second was a 7. 3 drop. But that was tied to a National Sales tax. The sails tax went into effect on november 1st. And we saw massive spending because people wanted to boy before the tax hike, and then Consumer Spending fell off a cliff. It was supposed to be a hike next year, but now its delayed. The debt is double the size of the economy. An economy that has been struggle for two decades. The debt is 229 , and by comparison, the u. S. Is 101 . Cutting the didnt is taking a back seat to reviving the economy. More stums is on the table, and japan has already pumped billions of dollars into the economy since abe came to power. Some that i that it can help, but longterm Structural Reforms are needed. One would be easier for immigration in japan, its a very close society. And anything that you can do to increase it, that would be productive. Getting women into the workforce. For the shortterm, abes plans are called for in december, and its a way for him and his party to take advantage of the party before theyre in disarray, and some say that he needs to do it before the economy weakens further. Mary snow. Theyre not surprised that japan has fallen into its fourth recession since interstate. The Economic Research institute noted great weakness in japans economy, and thats whats going on in japan, ekri, the firm, is a company that successfully pricked the downturns in the housing bubble. People know that when they see you on the show, there might be something to worry about, and along you come with this chart, which is what you call the u. S. Index, and this is a proprietary charlotte. Its an indicater of the economy, and it tells us what is likely to happen the coming months. Here we see that growth is slowing, and the u. S. Enjoyed a rebound this year, in 2014, but it is already starting to fade. And it answers this question, can the u. S. Decouple from the rest of the world . Everybody is surprised this fall that the Global Economy is slowing, and japan is in a recession, and the idea, the happy talk is that the u. S. Is going to go on its merry way in a different direction, but here, the leading indicator data is telling us not so fast, were going to slow too. For people who dont know, whats the reference between leading indicators and lagging indicators some. They giveuts a little bit of a hint about the direction of the economy. A couple of months in the future, and thats what theyre intended to do. Theyre about direction. Its telling us that were not going to keep accelerating, because thats what we hope for, but rather, we should prepare for a little bit of softness again in front of us, and thats whats ailing a lot of economies. The u. S. , europe, japan, all of these big economies are kind of stuck in these low trends. They get a bit of an upturn and they fade again. Thats describing what were all experiencing and part of why were dissatisfied with whats going on with the economy. The zero line is not zero growth, right . Its not saying that were looking at 4 shrinking. No, the leading indicators are designed to be hypersensitive, so you and me can figure out are they going up or down . Youre not, because youre good at this. Youre not saying that we are headed for recession in the United States, necessarily. No. The recession was on japan months ago, and some parts of europe are going to slip back in, and that would be the third since 08, and in the u. S. , were slowing, but we dont have a recession. Slowing doesnt always mean a recession. No, it doesnt, but its the wrong direction, right . We have done a lot. And there has been a lot of talk about how were going to reach some sort of escape velocity. But what we see, thats not happening. There are problems in developed economies around the world where we have got low growth. And the place where you can not deny this, the stock market goes up if you have a lot of liquidity. But Interest Rates and expectations of inflation keep going down, and its quite alarming. And companies dont invest in growth, because they dont expand. Its when you see it. Its in the u. S. , and when you see it hang in the United States and europe and japan, expectations of prices going forward, it affects all kinds of stuff. We dont get raisings all that much, but food and Energy Prices go up. And Discretionary Spending falls, and thats where the economy outside really works. Did gas prices change any of your views . Its a great break, especially for those with strapped incomes around the holidays, and for that reason, its great. Bigger picture, and its not particularly a healthy kind of thing. When oil drops 25 over the course of a few months, something bad happens. It means that the demand side is weak, and you see the global slowdown. In the summer, everybody says that the Global Economy is going great. At the beginning of the year, last year, all of the great and good, he said its fantastic, and look what happens. So here, when you see the demand soft like that, its a signal that were not off to the races just yet. Good to talk to you. The dough founder of the Economic Research institute. And he said were not going to a recession, and thats good, but housing prices are rising and they remain a relative bargain, so why is americas middle class stilling prices out . The answers in a few minutes. Stay with us. Start with one issue education. Gun control. The gap between rich and poor. Job creation. Climate change. Tax policy. The economy. Iran. Healthcare. Ad guests on all sides of the debate. This is a right we should all have. Its just the way it is. Theres something seriously wrong. Theres been acrimony. The conservative ideal. Its an urgent need. And a host willing to ask the tough questions how do you explain it to yourself . And youll get. The inside story ray suarez hosts inside story weekdays at 5 eastern only on Al Jazeera America for months, ive been telling you that home prices in america continue to rise, but at a slower rate than before. And ive taken pains to remind you to prices are not falling, theyre still rising, and thats from the real estate data form, trulyia. It shows that Home Ownership is getting less affordable for the middle class. The reasons include flat wage growth and rising Mortgage Rates. An author of the report joins me from San Francisco, and jeb, we hear every month that home prices are gaining a little bit, because we really want those stuck underwater, who are not spending freely in the rest of the economy, to get a relief. But the prices rising, though theyre slow, and wages not rising all that much, means that were getting less affordable than we were . Thats right, rising prices are good news if you already own a home, but if you are trying to get into Home Ownership,riesing prices are bad news. Prices are rising faster than incomes are. And income doesnt go as far to buy the next house. Lets talk about the least affordable markets, not major surprises here. You still have San Francisco at the top of the list, and you have los angeles and new york on the list, and any big surprises or changes on the least affordable markets . Well, the california markets dominate that list. Six of the top seven least affordable markets in the country are in california. And the two markets who join the top ten least affordable list for the first time, are austin and mime. And those are both markets that see big price increase innings the past year, well ahead of income gains. San francisco, and you look at new york and you say, well income gains are seen in those markets, but affordability measures what exactly . The way that you look at affordability is whether a home thats available for sale is within reach of a household with median income, typical in north america, and the way you look at this, the moll mortgage payment, and the taxes and insurance, all together, would be 341 force or less than the income. Thats the guideline that a lot of programs use to determine affordability. So the lower Mortgage Rates r. The homes are affordable. But the higher prices go, that makes homes less affordable and thats what were saying right now. Lets look at the markets, and once again, they track the things that make sense, these have an excess inventory of homes, and the people who have left. Places that are shrinking. Dayton, ohio, rochester, new york, akron, ohio, gary, indiana, and toledo, ohio, all associated with industrial towns, and as you go lower down the list, the trend continues. Most of them are around the great lakes, but there are southern markets that are affordable. Places that are affordable tend to be slow growing,er places where its relatively easy to build new homes. In markets where its easy to build new homes, even where theres supply and demand, the homeowners can keep up. The least affordable place innings the country have both strong demand, and relatively new construction. Thats what we see in california and new york. Jelled, thank you for talking to us, the chief economist at trulyio. All this week, ive taken you inside of the cold war, and i need a snack, but typically, it plays a Critical Role in the economy thats playing out in valid valids russia. Grab your snack, but be quick, because im back in two minutes, and the most surprising element to the cold war is up next. Its a chilling and draconian sentence. It simply cannot stand. Its disgraceful. The only crime they really committed is journalism. They are truth seekers. All they really wanna do is find out whats happening, so they can tell people. Governments around the world all united to condemn this. As you can see, its still a very much volatile situation. The government is prepared to carry out mass array. If you want free press in the new democracy, let the journalists live. I coming up tomorrow, the poles are feeling the pressure from moscow. I sat down with a man from the beginning, lech walesa again has his eye on russia, and thats tomorrow at 7 p. M. Eastern, and 4 p. M. Pacific. The world is an apple, or it insure looks that way from the photo that i purchased. His iconic image that he photographed back in 2007, it recently showed up on a cover of National Geographic magazine, and ironically, the copy that he had on hand is in russian, and in a way its fitting, because days after i returned from my trip to eastern europe, i returned and bought this photo, which i admired on a recent visit. During my trip to poland, little did i know that apples would play such a prominent role in my reporting. In response to the European Union responses to russias meddling in ukraine, russia slapped its own sanctions on imports to russia. In one stroke, polands apple orchards were shut off from their biggest market, russia, and now the farmers are trying to pick up the pieces. They are trying to get poles to eat apples, but theyre perishable and many will rot uneaten, and russians will pay more for their own apples. This hurts the poles, and theyre intensely suspicious of russias intentions in ukraine. After a 40year history of russias roak after the second world war. It has joined the europe union and the nato alliance, but in this new cold war, poland is learning that it cant cut itself off from russia entirely, not without inflicting intense pain on its economy, and apples are one way to bring it home to the poles. Oil ali velshi, thank you for joining us. Overnight clashes between palestinians and Israeli Forces as israel begins house demolitions. Im sammy day han in doha. Also on the show symbolic vote for palestinian statehood. New raids on a mosque in kenya as authorities try to crackdown. And yemen, a country divided over politics could it unite over a