Shrinking deficits, bustling industry, and Booming Energy production we have risen from recession freer to write our own future than any other nation on earth. President obama delivered his sixth state of the Union Address urging an Ambitious Program of middle class economies to the new republican majorities in congress. The democratic president went big, bold and liberal. Just watch how 38year veteran of the senate, republican orrin hatch, reacted to the president s tax plans. And lets close the loopholes that lead to inequality by allowing the top one percent to avoid paying taxes on their accumulated wealth. We can use that money to help more families pay for childcare and send their kids to college. From the mid term elections were casas territorious for democrats. Republicans hold mainly majorities in both houses the senate and houthi. House. In light of the g. O. P. Majority are the president s tax proposals serious policies or unserious posturing . Carney . I think you have to see it as setting the stage for 2016 that he wants to make this be sort of class war fare. The republicans as the party of the rich and democrats as the party of the little guys. I thought it was interesting that the Child Tax Credit proposal only went to families where both people were working outside home. Wanted to expand the child did i care credit that did that. That is a statement that he doesnt value stay at home mothers. That is no just political posturing. The president using this to say this is what we stand for. Eleanor . Eastboundinstead of coming in like a deflated super bowl game ball, i couldnt resit that. He came in strong and confident. Speaker boehner said he is open to Child Tax Credit and the president culled for a tax cut on the middle class and h is generally republican turf and what the president called for, child care, daycare community college, raising the minimum wage are all policies popular among ordinary regular americans out there and i think it really puts the republicans on the defensive. May be some parts h they will pass. As til said, mostly about setting the stage for 2016. And the economy now Strong Enough you have republicans playing on democratic turf talking about closing the wealth gap and economic inequality. We are in for fascinating debates. Would this speech not so much starting a dialogue with republicans but with the democrats . I think that is right. I think the cameras were panning a lot to Elizabeth Warren during the speech and that was a recognition this is p much more on the elizabeth are ren style of policies than it is with hillary clinton. The president s doing two things. Outlining his id elodge cal view point. Taking child care, College Retirement across the range of issues but at the same time anchoring i hunk the Democratic Party as he i think the Democratic Party as he comes to the end of his presidency on the left. It was a big bold, liberal speech as you said. Itdid you see anything in explaining why the democrats are losing working class citizens and follow ares . No, frankly. What i did see in that, however was the message that i have seen him give period, full stop. It is a brilliant speech as a speech. The substance is a whole another matter. It doesnt address the erosion of the quality of work. Not just the quantity of work you have today. If you take people who are involuntary parttime workers half employed the real unemployment is 11. 2 according to the government. The economy is very weak and he has to find ways to improve the economy. A lot good programs in a situation in which you get past the issue of many ployment. To my mind, employment and good employment is the key to everything. The president also demanded money for infrastructure which he says is crucial to americas economic well being. 21st century businesses need 21st century infrastructure modern ports, stronger bridges faster trains and the fastest internet. Democrats and republicans used to agree on this. So lets set our sights higher than a single oil pipeline. Isnt the keystone xl pipeline eligible . Isnt it Infrastructure Spending . Mr. Carney, tim. Well, it is. But the problem is that the democrats really this is a rare base issue for them where they feel like they cant violate their base. President obama has upset the liberal base on a lot of issues and there is liberal Billionaire Tom Steyer who provoids money to the Democratic Party and keystone is a fight for this them. The price of oil has now collapsed to an extent where it is no longer a good pick investment, we economic in vetment. We do not need the oil. In Yellowstone River an oil leak there and people are drunking bottled water. Boosts the case of of environmentalists. The president s going to veto it and it is not clear that the senate can override it and i dont think they can. Did you hear eleanor say it has been elevated beyond its importance . Do you believe that . To some degree it is true. It is not just about keystone. They are not in favor of that jut because of keystone but Energy Infrastructure generally. Could be one step in a Development Train that creates more jobs and provides more energy security. I mean the Shale Oil Gas boom is the big one. But again if we are talking about infrastructure and upward Mobility Energy jobs pay well paid salaries to people who are currently unemployed so why is it somehow off limits . You seem to be good on this issue, right, the Keystone Pipeline . What is the tabiology graphy of the peopleline . The geography is from can that. What part of condition da . Nebraska and oklahoma state. Where does it go from there . Nebraska. Down to the gulf coast right . Through nebraska. How does it get to the gulf coast . Through a pipeline. Through nebraska. A clean shot. One shot down. Go through several states . Goes through seven rat several states. Which states. North dakota, south dakota, nebraska kansas, texas. Where does it end . Empties in texas . Yes. And how many States Affected and is it a worry for the environmentalists . The native American Communities are concerned about it. The worry is that it will spill underground and nebraska there are land owners who dont want to governor up the land because they are worried about it and where from a free market perspective keystone can rub you the wrong way. They are using eminent domain. Does the Keystone Pipeline voter whelmingly positive. Yes. No. Meaning they exceed anything on the negative side. No. Just a moment. I think that prediction on the future is exactly the sort of hubrus that gets us into the Big Government trouble in the furs place. I dont know. Again playing to his base . In other words an environmental issue and he knows where the base is . A symbolic fight. You can comment on this. Energy has to be one of the most critical things this country is facing. The shale production has transformed that world. But that is not going to go on forever and this is something that is dwyane wade groundedgoing to help the United States in terms of Energy Production and independence. Take this as a serious issue . Not an overwhelming issue. It is a serious issue. A huge Infrastructure Investment for the country. Are the intervening states worried about the Environmental Impact . Yes. A lot of people are. In nebraska, there were a number of lawsuits but they have been settled. Right now i think it is economics of keystone. It is unnecessary and does not create that many jobs. Please. And under 100 permanent jobs. Oh. And infrastructure we need. We are way behind in infrastructure with bridges and highways and Everything Else a and that is where the money should go and where the thinking should go. Are you going to sit there and accordion set what she just said . I disagree with that. I respect the view point. It is important to create energy jobs. It is easy to say we care about social mobility. I think we should be caring about Economic Opportunities both at the Macro National level and at the individual level. Okay. We happen to be almost energy inin dependent. Keep it in the ground. We might need it later contribution save it for a rainy day. Foreign policy. The president was selfassured when it came to Foreign Policy but again republicans were not impressed. Watch how speaker of the house john boehner, who thus far had been relatively expressionless found this obama analysis unbearable. In iraq and syria, American Leadership including our military power is stopping isils advance. Instead of getting dragged into another ground war in the middle east, we are leading a Broad Coalition including arab nations to degrade and ultimately destroy this terrorist group. Is president obama right . Is his Foreign Policy working . Tim . The president s trying to really find his Foreign Policy. He hasnt figured out what it is yet. He does a driveby war in libya and then decides that is a mistake. Wants to stay out of ground wars but do the strikes. He is hesitant and putting us halfway to war. It is not working. He pointed to yemen as a great sign of success and in the past now that is not looking like a success. I dont think the president knows what his Foreign Policy is. Eleanor . A couple of months ago everybody thought isis was going to run the table. H they have now been halted for the most part in iraq and rebutted in syria. Rebuffed in syria. I think the president s correctly keeping us out of another ground war. It is hard to look at syria and say it is a success but i think the strategy is to deep from getting worse and what is happening in yemen the government there has been overthrown but the h houthis coming in to power hate alqaeda and they are likely to continue the same antiterrorism policy fighting alqaeda that you know, it doesnt necessarily bode well for the administration because of all of the chaos. I dont think they are necessarily in a worse position. A closing question on issue. Why have people tuned obama president obama out . His audience has fallen from the high point of 52. 4 million in twin to only 33. 3 million last year. To 31. 7 million this year. And it is not technology. Such acroamatic drop is not explained by viewers using other hard to measure platforms like ipads to stream speech because they have been around for at least ten years. We has he we have an election ever ofry eight years. He is six years in, you know, people have gotten used to him. So i thought this was an excellent speech that he delivered. And they did dissim nate disseminate through social media. 33 million last year and 31 he was newly elected. Why dont you look and see what Ronald Reagan got the first year. I did. There was no comparable drop. No, shawl. Absolutely. He used yemen as an scam of what his isis strategy was going to be back in september shortly before the houthis took over sponsored by iran. Now we have yemen in control essentially by if not an iranian proxy an a. Proximate group to iran. The isolation of American Power and empowerment of alqaeda in the south and so we are in a world of trouble and the president thinks this is he said that yemen was good on the ground in iraq. The spread of political sectarianism. Isis advancing. Abusing people. It is spilling into lebanon and jordan. The idea that the Foreign Policy is anything other then a joke we took the troops out too early in iraq and did not stand behind what we said we we do in syria. The credibility in that part of the world is virtually eliminate. I havent heard anybody offer any credible solution. Everybody talks tough but nobody seems to have new better ideas. Empower the sunni tribes. Have you offered a credible solution. Im in about Pat Buchanans chair. Lets not get involved in a war that we are not ready to fight. Issue two. You now have 72 hours to pressure your government in making a wise decision by paying the 200 million to save the lives of your citizens. 200 million the ransom demanded from japan by isis, the Islamic State of iraq and syria, also known as isil, the Islamic State of iraq and the levant. The terror group warned that failure to pay would result in the execution of two japanese hostages. The 200 million figure is carefully chosen. It is exactly the same amount committed by japanese Prime Minister shinzo abe to underwrite the campaign against isis. Last year, isis videotaped its beheading of at least 50 hostages, including three americans. The family of one such american, james foley, was ordered by the u. S. Government not to pay a 100 million euro ransom, about 116 million, which his mother diane foley and her family wanted to do. Mrs. Foley spoke to Cnns Anderson Cooper about the ransom. We were told we could not raise a ransom, that it was illegal, we might be prosecuted. We were told that our government would not Exchange Prisoners would not do a military action so we were just told to trust that he would be freed somehow miraculously. And he wasnt, was he . This behavior is not unique to isis. Terrorist groups of all ideologies have always relied on ransom money to fund their terror. But today, jihadist groups like isis and al queda use videotaped executions as an added means of extortion. And theyve profited from this gambit. Multiple reports suggest many nations, including france and germany, have paid tens of millions of dollars in ransoms to recover their citizens. Why is isis so concerned about ransom . Tim . They are acting like a country. I mean people dont like calling them a state but they are sort of like a state. They operate roads and towns and this sort of thing and dont have much of an economy. So they need to they have a cash flow problem there and see the symbolic value with the 200 million. Where does it get most of its money from new mexico. They have a lot of money from capturing banks and taking control. Selling oil. Selling oil is one of them. That is the biggest number. But they also get money from private donors. The group are capable but the ransoms also serve a propaganda advantage in the sense of being able to advertise to people come and join the cause we are taking on the west, we are in control they are on their knees. Et cetera, et cetera. Oil prices are plunging that is their problem. I will say they are plunging. Biggest drop in oil prices we seen in our lifetime in such a short period of time and having a huge effect on the whole area and frankly a huge effect on the economy because we are saving lot of money for a lot of people because oil prices are o so much lower and may stay that way for white awhile. The footage is chilling of the beheadings and people awaiting their fate and mr. Foleys mother is correct when she says that under u. S. Law they would have been vulnerable to prosecution if they had troyed to ransom their son. I doubt that any jury would have carried out any punishment but that is the policy of the u. S. Government. If you give ransom you only encourage more. And so far well the japanese apparently paid ransom in the past. I think this time they havent. But the problem is, it is not just saving someone, it is a deferred death payment. You are paying for someone else to die pause they will use that money. If request it is your love one you are willing to tweak the law a bit. I dont mean to criticize diane foley. If you stop the payment of money you reduce the incentive to kidnap the people. A huge issue for a country. Here is what i have here. Should internet firms be legally prohibited from helping to publicize isis kills by letting the services be used in netcasting pleading and beheadings . We have freedom of speech in the country. Eastbound ought to everybody out to out of decency not show the propaganda. I dont even know if i would show the b roll clips you are slowing there. On testimonied v and over the internet that is helping them and as disease incy you ought to avoid it. Because of the First Amendment i dont think you can prevent it. I thought seriously about putting that up and i decided to go with it because it has been on so many times before. Maybe there is a built in resittance. You to show people what they are like. Boko haram. Isis. It is the battle of of ideas. Are are there financial problems . They are the most well heeled terrorist group we have ever known. Issue three. The universe comes to florida. The universe pageant will alive in florida adjacent to miami. The pageant was acquired in 1996, 19 years ago by real estate mow mogul trump. The ladies will be judged on one, beauty, two, intellect and three, plans for making a positive difference in the world. The city of doral believes the pageant will reap longterm economic benefits from hosting Miss Universe. It is costing 2. 5 million. But, some insist that beauty paneling ends are a sexist anachro isle. Here is what Sally Alexander who protested the 1970 worldcom petition told the bbc last year. Our argument with why do you to be beautiful and you know looked at like this before you get notice as a woman . St. Louislythe protest is notice by bob hope who hosted the 1970 competition at londons royal albert hall. Today, beauty pageants remain controversial. In 2013 the miss worldcom world competition in indonesia was met by protets. Question, do beauty pageants have a place in the 21st sennurery . Eleanor . They team anarhronistic and they have modernized. Not only are they beautiful to look at, they have brains and causes they care about. Im not ready to write off the beauty pageants. I think they are here to stay. What do you think . I think the exhibitionism of women in that particular form is absolutely not something i would support unless it takes place in my living room in which case you are all invited. I mean it has been a part of american entertainment for so long. I dont think it has the meaning we have all kinds of contests. Rodeos and pie eating contests and i have a list here. The iditarod. Muscle building competitions. Athletic contests of all kinds. So you have no problem with it . Knox i think if people want to off it, fine. It is not something i will be watching. Too high minded . I dont mean that. I wouldnt find it interesting. You would not. No, took me awhile to get into american football pause i didnt grow up watching that. It is up to the individual. If people want to participate. Miss universe and international relations. Look at this photo taken as the Miss Universe contestants arrived in doral. The lady on the let is miss israel. And the lady in the middle is miss lebanon. It sparked uproar in lebanon where israel is quite unpopular. Miss lebanon issued an unconventional apology. Since the first day of my arrival i was cautious to avoid being in any photo or communication with miss israel who tried several times to have a photo with me. I was having a photo with miss japan and slovenia and myself and miss israel jumped and took a selfie and put it on her social media. Is it likely that miss lebronlebanon fears retaliation from hezbollah . I think she is already being condemned and really trashed in her home country when they saw the selfie come out there. That just tells you how in a sense how intense the hostility is towards israel. If she was seen as legitimatizing israelizing israel she better watch out. It is condemned in the arab world. You think the olympics is far more nationalistic in overtone than this kind of contest . No, this is look, the olympic tradition is something that has opinion around for a very long time and is a very unique and widely accepted kind of shall we say presentation of countries abilities and talents. This is something that has just come up in the lat century more or less and a different kind of event. And if the two women were probably left to their own devices it would be wonderful to have them pictured together but you have to respect the culture that miss lebanon comes from and the backlash she will get. I dont think you to respect the culture. I have to respect her and the situation she is in. That is what im saying. But it shows two young women. It is easy for us to condemn miss lebanon but the political pressure in that situation. Predictions tim . The new england pries will be so distracked by deflate gate that they will lose the super bowl badly to the seattle seahawks. There will be back room maneuvering in saudi arabia because the death of King Abdullah his half brother is considered not up to job and so there could be repercussions for u. S. Policy including the price of opec oil. Turbulence in saudi arabia. Interesting. Even though in some ways they tried to control their impulses towards aggression the iranians will exert pressure in the coming days in yemen to try and push the United States out. They sense an opportunity and the iranian three logical project requires ob sense of the u. S. The republican in the and house will completely overhaul Social Security disability with which has gone up six times tow spite the fact that we had a much lower rate of issues. What will be the upshot . A dramatically mat eck reduction in it dramatic reduction in it. Dramatic reduction. My prediction despite chinas assertions, its economy is in free fall. I predict true Economic Growth of 4 , not the 7 that china claims. 7. 4 . Bye bye. Next on kqed newsroom, the new president of the San Francisco board of supervisors targets violence in an unconventional way. We need people who are getting paid to work with our young people to roll up their sleeves and go to their homes and be in the community and work with young individuals, but we also have to hold our own kids accountable. The Measles Outbreak reignites the debate over parents opting out of vaccinating their kids. Plus the states top judge on why we should care about the health of our court system. And those laws matter. And we believe we have a guaranteed right to them. And where do you test that . In a court of law