breaking news this morning -- north korean leader kim jong-il is dead. already anouchbsing a successor to the so-called dear leader. the world is trying to figure out what now for the most isolated nation on the globe and its nuclear weapons on this "american morning." -- captions by vitac -- www.vitac.com good morning it you. it is monday, december 19th. i'm ali velshi along with alina cho this morning. we're glad you're here alina. a handful of people who's been into north korea and very familiar with the region. >> i am and i have to say quite a shock. he had been sick since 2008

officially. had suffer add stroke there, but i think it came to a shock to a lot of people including south korea and we do begin with this breaking news thinking morning. some hope, some fear and lots of uncertainty. people are reacting worldwide to the death of north korean dictator kim jong-il. his 17-year reign of power is over. >> this came late last night on north korea television. delivered by a weak tv anchor having trouble keeping it together. take a look. [ speaking in foreign language ] >> now, this, what you're looking at, is the last known image of kim jong-il released by state media, north korea said he

dysart of a heart attack. he was on a train when he suffered. only 69 years old. >> the country announced what it calls a great successor to the so-called dear leader. his son, third son, kim jong un, who is said to be either 27 or 28 years old, and his life may be even a bigger mystery than his father's. in washington, instability in the region. a major worry this morning. dan lothian live at the white house. what's the reaction been from the white house? >> reporter: good morning, le alina. a cautious response, in many ways. the language used could potentially define the relationship between the united states and north korea going forward. president obama, we are told by the white house, did at midnight place a phone call to the south korea's president, president lee. they discussed the situation on the korean peninsula and decided to stay closely in touch and coordinate the national security

teams. this followed a short statement that was released not long after word started spreading of the death of kim jong-il where the white house said that they are "closely monitoring the reports that he is dead." that the president had been in touch not only with south korea but allies sump as japan and that they remain committed to security in the korean peninsula. again, much more than that. we expect perhaps later today. initially the white house being very cautious in its response, alina. >> reporter: dan, i know president lee bak has been in touch and spoke to the leaders of japan as well. having said that, i'm getting a sense world leaders were really caught off guard by this news? >> reporter: we really are. we had nope the leader was ill for quite some time. that there had been this succession plan in the works for the last three years or so, but i don't think that anyone fully

expected this to happen so quickly. the big question now is what will happen going forward? does the situation in north korea now present an opportunity for the relationship between the united states and north korea, or perhaps will it be more of the same? i think right now it's still a little too early to tell. >> dan lothian, live at white house for us. dan, thank you very much. meanwhile, south korea ordered its military on alert while urging people to stay calm. south korea's president released a statement to cnn saying in part, "peace and stability on the korean peninsula is more important than anything else. it should not be threaten theed by what happened." close to 30,000 troops are still stationed in south korea and reportedly stepping up surveillance across the border this morning. chris lawrence is live at the pentagon for us. what's the situation as the u.s. military sees it? >> reporter: ali, i spoke with a defense official who said the u.s. military official, in very

close contact with their south korea counterparts but said that's always the case over there in which the two countries work so very closely together. they're going to have to keep a very close eye on this situation, but the two nations had already been on somewhat high alert. i mean, defense secretary leon panetta was just in the region about two months had, and at that time he said that the united states and south korea were going to beef up their efforts to try to head off some of these north korean provocations and attacks. he said that including increasing operations in the northwest islands over there, where there had been several attacks by north korea, and also to step up their defenses against cyber attack. they have a feeling that north korea, a belief, that north korea has stood up a cyber center and may have even carried out some attacks on south korean banks. >> we have, chris, seen that, you know, obviously the north korean ministries and their

military are on alert. they often are in that part of the nation, as you mention. rp to the u.s. military, has it changed their state of readiness? while this is somewhat unexpected, there has been talk of succession. he wasn't an entirely young man. has the u.s. military changed its status in south korea as a result of the passing of kim jong-il? >> reporter: i haven't heard any official statement about changing the level of readiness, although if you talk to u.s. military officials in that part of the world and who are positioned there, it's a fairly high state of readiness in normal circumstances, and the -- the man who runs u.s. forces korea is part of this confirmation hearing, already sounding the alarm saying it was his expectation that kim jong-il would continue his cycle of provocations, that he was the number one threat to that part of asia, and, you know, just last year when former defense secretary robert gates looked at some of these provocations by

north korea, he said publicly that he thought it was the youngest son attempting to earn his stripes with the north korean military. >> we'll follow it very closely. any developments from the u.s. military, please, let us know. alina, a tough one to understand. sometimes in the west you only see north korea as a provocateur, there is analysis suggesting some of what they're doing including the welcoming of western journalists in some cases is meant to have a two-part strategy. provocative on one side but hope we end up with a negotiated deal in the end. >> funny you should mention that. i was there twice. first in 2008, when the new york philharmonic performed there. back in 2010. what struck me about the second trip, honestly, it did seem more western on the surface. cell phones. saw currency for the first time. street lights for the first time. yet, it is the same repressive regime that i saw before, and,

you know, when you're walking around north korea, i think it's important to note that you do not have any freedom as a western journalist. you are watched by your government minder. they literally tell you where to point the camera. it's this dichotomy. >> and they share a zone, trade is open, between north korea and south korea. a lot of trade. hundreds of thousands of workers, remain open. and they share a board with one of the most advance countries in the world, most internet wired, industrial, media saturated countries. so north koreas, some of them, get some exposure to it. >> they do, and yet they cannot label it. it's important to note about the cell phone use, for example, is they could call inside the country, but not outside. >> not outside. >> so it's important to watch. you mentioned south korea, how south korea reacts to this in the coming days and hours. already a high-level cabinet meeting and we'll watch that closely as well. meanwhile, north korea's closest ally china offers its

condolences for the death of kim jong-il. he vis utded china and russia as recently as this past august. live in beijing, we have reaction from there. good morning to you. >> reporter: yeah, good morning, ele elealai alina. this goes back decades, forged in the heat of battle during the korean war. it's been described in the past as one of lips and teeth. that's how close it has been seen. we know china was instrumental in getting north korea to the table with the six-party talks to negotiate north korea's nuclear program. now the rest of the world looking to china for how much influence it can bring to bear during this transition period and head off any potential instability. now, china today, expressing grief and condolences to north korea, describing kim jong-il as a great leader, also saying it's committed to stability. what's really going to be crucial is the relationship

between the united states and china. now, what we see, will we see them withdraw to cold war corners? see the united states go with the south korean side. china line up with north korea? or will they be annal ble to fi way through this and maintain stability while the unknown takes place in north korea. just how will kim jong un handle this transition, how will he be able to impose himself, will he be able too impose himself and what fractures will you see in the hinterlands as you move away from pyongyang once they learn more of this news. china front and the center. alina? >> and kim jong un, 27 or 28 years old. the big question, will he be a figurehead or have any real power? cnn's stan grant live in for us from beijing. thank you very much. underscoring the issue when we say kim jong-il is 27 or 28

years old. not confirmed. we now go to his son, the new leader. we don't know enough about him. bring in dr. jim walsh, international security analyst at the institute of technology. good to see you. thank you for joining us. one of the experts on north korea, we're going to talk to a little later on, said this is the biggest shock you could have thrown into asia. do you share that view? >> i think it is a big development and an unwelcome development, but why? because north korea is now starting a period that's going to be tenuous. it's going to be uncertainly and frankly dangerous. yes, it could work out well. maybe north korea will adopt a new policy and move in a new direction, but right now we've got a young leader, as you emphasized, ali, and he is trying to establish himself, and anytime a leader dies in a country, the first thought inside the government is, are our enemies going to take advantage of us? how do we show strength, project strength to the outside world.

when you talked to dan earlier, he said south koreans have gone on alert. the u.s. stepped up survailens. in pyongyang, that looks like -- concerning. >> they were saying stability on the korean peninsula is about the most important thing here. we were just talking to stan about the six-party talks. what's your read on where kim jong-il was in this process, because some people were reading that perhaps he was taking on a slightly more conciliatory tone about these negotiations and that that might be unravelled by lis son? >> yeah. i think that's another thing i'm concerned about. one, getting through this dangerous phase of transition and the other is the direction of policy. i do believe kim jong-il in part because of domestic problems and in part because he wanted to have a legacy, to give north

koreans, was open to a better relationship with the united states. unfortunately, we had mistimed policies, because the policy of the u.s., strategic patience. sit back, see what happened. unfortunately the clock ran out and kim jong-il has died. we may have miss add real opportunity here, because right now i think a young leader who's just on the job, has little experience. he's going to be more conservative. not a big risk-taker. going to try to consolidate his position, win the support of the military. so giant changes in korean policy, i don't think are to be expected in the near term. >>-term about this. one thing we're not thinking about just yet. we'll cover this a lot today, obviously. would will likely be a succession issue or is his son, groomed, will be the new ruler of north korea? >> bottom line, we don't know. right after world war ii, a major competition between two

different groups for power. kim il-sung, kim jong-il's father, won that position. when kim il-sung, he made it happen and had to bring in the military and buy off the mill tier make sure that transition went well. what is the role of the military today? i don't know. are there other powers, relatives who may want power? i don't know. the majority of analysts bet this is going to be fairly smooth but it's not going to happen overnight and there could be unexpected events that push things in a different direction. >> jim, always adding clarity to our coverage. thanks for being with us. thanks, jim walsh. kim jong-il's death comes at a critic's moment in u.s.-north korean relations. joining you state department producer, elise lavage. you've been working the story all night, many of us have been. what has the reaction been from

the state department? >> very muted, alina. basically the u.s. put out a muted statement saying it's seen the reports, going to be waiting and watching. obviously we heard president obama spoke to president lee bak in south korea, u.s. and south korea coordinating closely on this. of course, it was expected, but i don't think, you know this as well from your sources, they didn't expect this to happen so soon. they believed the health of kim jong-il was tenuous but not eminent. now they're scrambling a little bit. >> obviously, viewers are listening to this, they know. everybody knows north korea's been -- you know, we've seen it as a belligerent in recent year. may not know as much as the six-party talks. what's the status of those, what are they meant to do and what's likely to happen? >> this is the u.s./south korea/japan/russia and north korea. basically to get north korea to

end its nuclear ambitions, on hold for many years. north korea really refusing to verify some of the commitments it made to end its nuclear program. in recent months we've seen the u.s. -- north korea doesn't care to talk to all of these parties. what they really want is an agreement with the united states. in recent months we've seen some engage minute the united states on restarting these talks. >> there was just a report out of the associated press just yesterday, as a matter of fact, saying that the u.s. was about to agree to send food aid for the first time in three years to north korea. >> that's right. >> in exchange, that north korea would suspend its controversial uranium enrichment program. >> that announcement was supposed to come as early as today. we could be sitting here talking about that. it's really unsure now how this throws everything into the equation. i think what the u.s. is going to be doing is watching, waiting and preparing, coordinating, with the south koreans, with the japanese and also with china. the u.s. has been trying to get

china for about a year now to talk about succession issues. china didn't want to go there. now there's no choice, but certainly there was a lot of promise and not only on the nuclear issue but on this food issue, that things were moving in the right direction. i think they want to see if kim jong un will be able to consolidate his power. >> interesting point we'll talk about again through the course of the morning, is that north korea is a powerful country. a nuclear arm country, but it is an impoverished country. food aid. a lot of people don't have enough to eat. >>ed north koreans have been experts at brinkmanship in terms of trying to extract the highest possible price for the smallest possible concession. >> thank you so much. i was given the rare opportunity to report from inside north korea just last year when the nation put on a show of military might for its heir apparent. a stunning glimpse inside one of the most secretive societies in the world. take a look. >> reporter: the most reclusive dictator in the world opens his

arms and his doors to the world. an unofficial and elaborate coming out party for kim jong un, the hermit nation's hidden prince. the son of kim jong-il who one day will become its leader. this is the world's first glimpse's him in action after being named a four-star general last month. just after touching down, we're whisked to pyongyang's mayday stadium for the first event. the mass games. there are 100,000 people performing in a massive display of coordinated song, dance and gymnastics. they practiced eight hours a day every day for a year, and there's no never a guarantee that chairman kim jong-il will be in attendance. tonight, he is. what's different this time is that kim jong im appears alongside his son. when the show is over, north koreans in the audience applaud

not for the performers but for their leader. next up, a massive military parade billed as the country's largest ever. a goose-stepping show of firepower by one of the largest armys in the world. kim jong-il, said to be in frail health and rarely seen in public shows up again for the second time in two days walking unaided but with one hand on the railing. [ speaking in foreign language ] this woman says, long live the general, and long live his son. here, kim jong-il flashes a rare smile, as his son jokes with elders. the crowd goes wild. jumping, clapping, even crying. then as night falls, yet another spectacle. tonight's event called the war

is war ise is pure pageantry. look behind me's pt colors choreography, dancers in traditional dress. the media invited as guests. this is the invitation. make no mistake, the real guest of honor, up there in the balcony. kim jong-il and his son the heir apparent kim jong un. >> i think it was fantastic. >> reporter: this man, an actor from denmark, one of a handful of private citizens invited by the north korean government, is among those watching. what about all of the reports are oppression and the people starving and -- >> i can't see it. maybe it is there, but i can't see it. i can just see a lot of people. >> reporter: this secretive nation will soon close its doors again, leaving many questions

about its future. how will the young son rule? how long can north korea continue as an isolationist state? the world's eyes are watching as north korea begins its transfer of power. >> all right. alina, first of all, let's just ask this. whether it was expected or not expected, you saw kim jong-il. he didn't seem -- he seemed a little frail that hand on the rail but didn't seem like a man on death's doorstep. >> right. he famously suffered a stroke it is believed, at least that's what is said publicly in 2008 around august or september. i was expecting a man looking much more frail than he did, quite frankly. yes, his hand was on the railing but he was walking unaided. i saw him on three separate occasions during that trip. it was quite a shock to me when i heard the news last night, and by all accounts, it was a shock to the u.s. government, and to

south korea, and everyone around the world. i don't think this is any -- even though they had the succession plan in place, i think this did come, in the end, as a surprises to a lot of people. the big question will be, you know, will kim jong un, the son, 27 or 28 years old, very young man. without any military experience, kim jong-il's sister has a lot of power as does her husband, and in some circles it is believed that they will be controlling the son. >> one last thing i wanted to ask you. you spoke to the south korean's president office, the state department, both muted responses. nobody going out there and having, sort of trumpeting the death of kim jong-il. >> as you mentioned before, probably a smart response, given the state of affairs and given what we know about north korea's nuclear ambitions. >> right. >> we'll have to see what happens. in was an emergency cabinet meeting in south korea.

we'll watch that closely. >> we'll talk more about kim jong-il's death and the shock of the unnoerch in the next hour with victor cha who worked in the national security council. and 7:15, bill richardson who helped win the release of americans held in north korea. we will continue to follow the latest on the bedeath of ki jong-il but are watching several other big stories of the day, including the last american troops leave iraq ending the nearly nine-year war. what will the future hold, and are we really gone for good. and iran says it captured a u.s. spy and got him to come clean on camera. we'll show you the alleged confession tape coming up. and will he stay or will he ge? florida a&m weighing in on whether to oust its president in the wake of an alleged hazing death scandal. 24 minutes after the hour. we're back after this.

27 minutes after the hour. welcome back. we're "minding your business" now. news of kim jong-il's death is pushing asian markets down this morning. european stocks recovered since the start of trading. u.s. stock futures trading higher ahead of the opening bell.

expecting low trading vom you'll ahead of the holiday weekend which could mean exaggerated market swings all week. investors watching europe closely. ratings agency fitch may downgrade france and six other eurozone nations. why? fitch says a comprehensive solution to the region's debt crisis may be out of reach at this point. back here in the united states, congress passed a $1 trillion budget over the weekend making it harder for low-income students to get and keep pell grants. under the bill, students who take longer than six years to graduate will have grants cut off. fewer grants made available. the good news, students will be able to receive a maximum of $5,500. that spending bill over the weekend slowed the incandescent light bulbs. under the bill the department of energy will be barred from enforcing the rule america's most popular light bulbs are 25% more efficient starting next year. the man who inspired the movie rudy agreed to pay the sec more

than $382,000 to settle stock fraud charges without admitting or denying the allegations. according to the agency, his associates misled investors about their sports company back in 2008 that inflated the price of the company's stock price and generated about $11 million in profits. and sherlock holmes topping the box office this weekend. film stars robert downey jr. took in a disappointing $40 million. "alvin and the chipmunks" debuted more than $23 million. "american morning" will be back right after the break.

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welcome back to you. 31 minutes after the hour. breaking news this morning. south korea's military on alert and the white house waging the situation closely after north korea announces the death of kim jong-il. north korea says kim jong-il died saturday from a heart attack he suffered while on a train. he was 69 years old, and held total power over north korea for the last 17 years. north korea waited two days to release the news. it is ualready announced a grea successor, what it call as great successor to the so-called dear leader. this 20-something son kim jong un. 27 or 28 years old made a four-star general last year and going through the grooming process of becoming the next leader. and after the death of king jong-il, south korea's president holds an emergency cabinet meeting and placing the military on heightened alert. japan called an emergency

security meeting. the white house saying it's staying in constant kuch with the allies in the region. the final u.s. troops left iraq ending the nearly nine-year war. the last 500 soldiers crossed over to kuwait sunday at the height of the battle some 240,000 military members were stationed in iraq. in all, 1.5 million americans assisted in the war. nine years later, 4,500 troops killed, another 30,000 injured and the war cost $700 billion. the u.s. will maintain a small civilian presence in the country. also making news this morning, secretary of state hillary clinton is urging egypt's government and protesters in to show restraint. neither security forces nor protesters are backing down. over the past four days violence on cairo's streets left at least ten people dead, 500 injured. video, we warn, is graphic, showing security forces beating a woman. look at that. on it's streets of cairo on saturday.

iranian officials say they have captured a u.s. spy and secured a confession on camara. a tv station in iran aired the alleged confession on sunday. the man in the video said he joined the u.s. marines back in 2001 and got special training before sent to iran. u.s. authorities have not yet commented on the authenticity of that report. florida a&m university considering today whether to suspend the school's president in the middle of a suspected hazing death scandal. the death of a famu drum major robert champion officially roomed a homicide. florida's governor says the president should step add sisid. alumni say they should back off. the governor could put the university's accreditation in jeopardy by suggesting or causing the head of the university to step down. >> reporter: ali, it comes down

to the southern association of colleges and schools, a group that oversees accreditation for many schools in the area. tommy mitchell, who is the head of the national alumni association, held a press conference over the weekend to make the point saying that should the board choose to suspend dr. emmons under the pressure of governor rick scott, the school could then lose accreditation saying that they sent the governor a warning saying such could happen. what we've been seeing is a tug-of-war play out between the government, between s.a.s. and the final decision, the board, to decide whether the doctor will remain or be suspended at the university's president. >> clear this up for us. why would emmons resigning or stepping down under pressure from the governor cause the university to lose its accreditation? >> reporter: well, basically making the point that this board

should appropriate without political pressure. it should make its decisions on its own. so the governor has been very vocal making the suggestion that the doctor should step down or be suspended but the board of trustees should suspend him. today we'll see that play out in this building to see what happens with the doctor. clearly, under pressure over the death of robert champion. >> the autopsy of robert champion, the autopsy report said it was a result of hazing. what more do we know? >> reporter: indeed, that result came out friday, and at this point, the orange county sheriff's office still investigating. no arrests at this point. keep in mind, several weeks back, four students were suspended in connection to robert champion's death. those students were back in school, placed back in school after the fdle asked the university to rescind any disciplinary actions. also, the band president, rather, the band director was suspended but now he's back on the job, too, ali. >> george, thanks very much.

joining us in tallahassee. we want to get to the weather. severe storm taking aim at the southwest with blizzard warnings in effect. our rob marciano in the extreme weather center with more. good morning. >> good morning. winds in excess of 30 miles an hour's maybe a foot or more of snow in spots. the same storm track we've dealt with the past couple of weeks. that part hasn't changed. on the satellite, streaming in from the gulf of mexico. a strong piece of information coming out of the four corners, and what happens, cold air coming down the eastern spine of the rockies. winter storm warning and blifrt warnings including the texas panhandle. southeastern parts of colorado, getting into parts of kansas as well and the timing of this, just getting going now. as we go through the day today, things begin to increase and blizzard condition as problem this afternoon and tonight and travel along those interstates will be difficult if not impossible at times. also, the severe threat for thunderstorms from dallas through houston today.

east of the mississippi after a chilly, chilly weekend. temperatures rebound nicely. lake-effect snows across parts of the eastern great lakes. temps not cold enough for that today. 47 degrees in new york city. 61 degrees in atlanta. next hour, talk about the chances of that snow getting to the northeast. looking for a white christmas? don't hold your breath. >> really? okay. >> thought that was going the other way for a moment. it's such a mild -- cold but relatively clear week for us in the northeast. i assume that means by the end of the week, snow. >> speak for yourself. >> wanted to try. snow there or same scene? no snow in toronto? >> probably not. >> check and see if you can get me a white christmas. >> all right, pal. rob marciano. still to come, could the tug-of-war over your paycheck be headed back to square one? what the house speaker has to say about extending the payroll tax hol day. and now endorsing gop presidential candidate mitt romney. our panel of political experts

will weigh in on this new campaign development. how important is it? we'll talk about that next. ( phone ringing )

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back to the u.s. for a few minutes. could be back to the negotiating table this morning for lawmakers trying to hammer out a deal to keep you from taking home less money next year. house republicans are not happy with the senate's plan to extend the payroll tax holiday for two more months. house speaker john boehner told nbc in the short-term fix is just not acceptable. >> two moss of kicking the can down the road, the american people are tired of that. i frankly am tired of it. on the house side, we've seen this kind of action before coming out of the senate. it's time to just stop doorwork, resolve the differences and extend this for one year. but every move of the uncertainty. >> the house and senate can't come to agreement by january 1st, the average working american will pay thousands more in taxes next year. gop campaign developments. mitt romney and jon huntsman

scoring big endorsements this weekend with the iowa caucuses just around the corner, but we are also waiting today for reaction from the candidates to what's happening in north korea with the death of kim jong-il. here to talk more about that, dana loesch, cnn contributor and radio host of "the dana show "in sta louis. good morning to you. republican analyst lenny mccallister in chicago. good morning. nice to see you both. obviously the big story today is the death of kim jong-il and its just, of course, another reminder that the news cycle can shake up any political race at any time. up to now talking about the economy and who's strongest there. what about on foreign policy? lenny, let me ask you first. who do you think benefits the most from this news? >> well, it depends on what the republicans really want to do from a candidate standpoint on the gop side. if people are looking for the historian that gives a perspective what the reach han been like over the last 60 or 70

years how things are coming together, newt gingrich will be the guy giving more pe spective and put things together and be a mold breaker, like reagan was, set the agenda versus going with the status kboep somebody more of a caretaker what you're seeing from the established now, a caretaker, it's going to benefit romney. depends on what these primary voters actually want in their next president. very interesting to see what people decide upon as we move into iowa and beyond. >> dana, let's not forget jon huntsman is the former ambassador to china. he's starting to get traction in new hampshire. i just spoke to president clinton last week, and he said, when you're talking about newt gingrich, the two people you cannot count out are mitt romney and surprisingly when he said this, you know, he said jon huntsman. he said he doesn't think jon huntsman has seen his time in the spotlight yet. do you think huntsman would become someone to contend with in new hampshire and possibly beyond? >> i think so.

i think there's still a little bit of wiggle room for these candidates, and definitely from one of the things we've seen with the grass roots base, they're not quite ready to acquiesce to someone like romney or gingrich just yet and the fact huntsman has significant foreign policy experience, his ambassadorship to china helps and that raises his profile in the eyes of many conservatives but remains to be seen. especially what's going on with north korea. testy times definitely. the only person who perhaps m e makes voters a little concerned maybe is ron paul, just because some of ris recent debates. >> lenny, what about the endo e endorsements this week. the biggest, the register supporting romney. the judgment to stand out from the crowd. romney has not spent much time in iowa. does this endorsement really matter? >> well, we'll see. we'll find out, because i do

think that romney hasn't spent a lot of time in iowa but now is creeping back into the poll, getting back into that second place and nestled there. if he can do well and do respectable in iowa knowing he hasn't put a lot of resource there's back to the straw poll, this will really do well for him going into new hampshire and getting the nickki haley endorsement in south carolina. voters are really upset with the establishment. we're finding the establishment guy romney versus the anti-establishment. who comes out in more force during the early primaries dictates what type of candidate we'll see from the gop by the time we get to to tampa. >> dana, a lot of talk about the tea party obviously and the big news will be when the tea party comes out supporting one candidate. you know, is it just too early yet? some analysts are saying we're just in the third inning. remember, we haven't seen the

iowa caucusaucuses, but is ther party you can see getting behind at this early stage? >> such a great question. you know, so many groups. all of the different groups with the movement are individually sovereign. there are tea partiers that have gotten behind mitt romney and behind newt gingrich which is crazy when you consider where newt gingrich and the tea party was just 2 1/2 years ago. i don't think that the whole of them, though, i don't think they've coalesced behind a single candidate. some are straching their heads asking how two of the individuals that perhaps embody everything that they've been fighting for, fighting against, rather, the past couple of years, how they're leading. but newt gingrich and romney are one in three in iowa, because grass roots are getting behind them. a quick note about that des moines, iowa register endorsement. that's the newspaper that endorsed barack obama over john mccain. a pretty liberal newspaper in iowa. i don't know it will matter in the grand scheme of things. >> dana and lenny, thank you for

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this just in to cnn. north korea has just test fired a short-range missile on its eastern coast nap is according

to the south korean news agency. >> right. we want to bring in senior cnn producer tim schwartz from hong kong. few people know north korea as well as you do. you've been there nearly 20 times. you and i were together there twice just last year. your thoughts when you hear this news? >> well i think we must be careful of reading too much into this, frankly. the north koreans have short-range missiles and do test them from time to time. we have little information on this. in spite of the fact it's over the east sea. there's no indication that south korean officials -- already said, they've been following this for some time and have no indication this is in any way connected with the death of leader kim jong-il. the short-range mitchessiles ar different from the long-range missiles. the 1 and 2 missiles and the incident a year ago when they

actually opened fire on a south korean island. at the moment, no indication there is anything like that. >> tim, it's ali. obviously because of the tense situation between north korea and its neighbors in south korea, we often see the testing of nuclear missiles as provocation as opposed to simply testing. you said this is relatively common. what's the difference between testing short range and long-range missiles. >> two things, ali. of course, north korea has not test add nuclear missile. no sign they have the capability of militarizing their nuclear armament to fit on the top of a missile. they necessarily, the larger missiles, ballistic missiles, of great significance if north korea can weaponize the nube color weapon and put it on a vehicle to reach as far as the united states, then that's a hugely scary thing for the world. the short-range missile would be

used on any short -- could be used against south korea, for example. but there's no indication that this indicates north korea is trying to send a message to south korea. they had these missiles. they do need testing from time to time. it doesn't show a significant proof in their technology or in their level of threat as far as we know at the moment. >> tim, as i mentioned when we introduced you, you and i had been to north korea twice together. you've weren't there more than a dozen times. probably close to 20 times. if my memory serves me well, i believe you did meet kim jong-il on one occasion. did you not? >> no. >> you did not? >> i never did meet king jong-il. i've seen him from afar many times. i met his father, the original father. >> kim il-sung. that's right. just your thoughts on the passing of kim jong-il?

>> kim jong-il was from a very early age -- in the 1970s, at least, has known he was being groomed as successor to his father. he was prepared for nearly three decad decades, his coming on to the scene as leader of the country was prepared for nearly three decades. the groundwork done very well. a genius at this, at that, expert marksman, horseman, tactical genius. so the country was given a lot of exposure to him. this is not the case with kim jong un. that's the third generation of his family to lead the country. kim il-sung, the original founder of the country, kim jong-il, have a lot more history. the country knows practically nothing about kim jong un, haven't heard his name until a year ago. no great stories of his birth or achievements. the north koreans don't even know he actually studied abroad

in switzerland, he's a basketball fan, that he's open to the outside world. they know nothing about him. it's going to be much more of a challenge to present kim sung un as the legitimate leader of the country as his father. >> good to talk to you. if anything else develops, get back be in there and talk to us about it. tim it one of our most informed reporters and producers on asia and on korea. thanks, tim. >> that's right. he calls himself a cyber illusionist combining the technology at the moment with ideas of old world magic. this week dr. sanjay gupta introduces us to futuristic showman marco tempestt on cnn's "the next list." >> making art is not my aspiration. my aspiration is, to do what i love. like to show my passion to my audiences, and i can show that to my audience -- that's -- that's totally enough. that's exactly what i want.

to achieve. >> you can catch the "next list" each sunday 2:00 p.m. right here on cnn. continuing coverage of breaking news. the death of kim jong-il. bill richardson, inside north korea eight times and the news north korea has tested short-range missiles this morning. you're watching cnn. this is breaking news. it's 55 minutes after the hour. one more gift... [ gasps ] [ male announcer ] if you're giving an amazing gift, shouldn't it be given in an amazing way? ♪ ♪

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breaking news this morning, northern korean leader kim

jong-il is dead. the country announcesing what it call as great successor to the so-called dear leader. and the world trying to figure out what now for the most isolated nation on the globe and its nuclear weapons on this "american morning." -- captions by vitac -- www.vitac.com good morning. it is tuesday -- i'm sorry, monday. so much news i've already skipped to tuesday. i'm ali velshi on this "american morning." i'm here with alina cho. >> watching breaking news. hopes, fears, lots of uncertainty. people reacting to death of north korean leader kim jong-il. his 17-year reign of totalitarian power is over. >> announced late last night on north korean state television by a weeping tv averager who could barely keep it together. take a look.

>> this is the last known image of kim jing isle released by state media. north korea says kim jong-il died saturday of a heart attack he suffered while bon a trahe w train. he was 69 years old. some are surprised. he did not seem to be in terrible poor health. >> there's little more known about kim jong-il than his son, kim jong un who is what north korea calls the great successor to the so-called dear leader. he is said to be either 27 or 28 years old. a lot of questions already about whether he is fit to lead, and this morning a possible show of strength. south korean media is reporting that the north has fired a short-range missile into the east sea. instability in the region,

of course, a major worry. our stan grant is watching it all live in beijing with reaction there. stan, good morning to you. >> reporter: good morning, alina. china, of course, very close relationship with north korea. this is a relationship that's being described as close as lips and teeth. goes back to the korean war when chinese fighters fought alongside north korean forces. many say that china exerts the most influence over north korea than any other country on earth. that said it has not always been smooth sailing in his relationship. the nuclear tests in 2006, and 2009, put strains on the ties between china and north korea, some analysts saying they spit in the eye of china. china, always blocked sanctions. actually agreed after the nuclear tests nthat said, they'e

been able to gring north korea to the table for the six-party talks. provides the bulk of fuel, food and trade to north korea and is absolutely crucial in this moment of uncertainty that china works to create more stability in that region, and that's is what a statement said today. expressed grief. sent its condolences described kim jong-il as a great leader of socialism saying it's important to work towards stability. >> said to be north korea's best friend, china. stan grant with that side of the story. stan, thank you. here, the white house says the u.s. is staying in "constant up touch" with allies in the region. dan lothian is live at the white house. dan what can best be described as a quiet reaction from the white house so far? >> reporter: that's right. we've been seeing a measured response not only from the white house, also other nations that are part of the six-party talks. according to the white house, the president overnight at midnight, in fact, did speak

with south korean president lee about this situation there in the korean peninsula. they said that they would continue to stay in touch and would coordinate with their national security teams. this follow add short response we got from the white house last night. not long after news started to break of the death of kim jong-il. the white house, as you pointed outside, saying they're closely monitoring the situation there, but that was key, the stability on the korean peninsula and the freedom and security of our allies. we don't know yet if we'll hear further from president obama on this later today, but certainly the north korean situation is getting the attention of this administration. >> all right. what is the white house like likely -- how do they view the death of being? an opportunity to go further with these six-party talks? with negotiations with north korea? are they more concerned, do you think, dan, about the unknown of

his son? >> reporter: that is such a good question. a lot of experts have been talking about that this morning. i think it's really a balance between the two. there is certainly concern about whether or not this will just mean more of the same of what we've seen in north korea. could it set back some of the early baby steps that have been taken between this administration and north korea in terms of establishing a relationship, as you know. there had been talks about establishing food aid, but also pressure on north korea to ratchet back its nuclear ambition. so right now i think it's pretty much an unknown as to whether or not we will see this administration, see this as an opportunity for change in north korea or really a continuation of what has been happening there for so many years. >> which are better or worsening of relations. we'll keep in touch closely. dan lothian at the white house. south korea orders its military on alert while urging

people to stay calm. close to 30,000 u.s. troops are still stationed in south korea and stepping up surveillance across the border this morning. chris lawrence is live at pentagon with that side of the story. chris, good morning to you. >> reporter: good morning, alina. yeah, another, also, a measured response flowing from, as dan mentioned, the official response from the white house. u.s. military officials in close contact with their south korean military counterparts, but as of right now, i don't know of any change to any sort of heightened state of alert. you remember back when north korea was accused of sinking that south korean ship, tensions were building in that region. the u.s. military was very reserved. they held off on calling that an act of war. had a very measured response in order to avoid em flaming tensions there, but obviously, they will be keeping a very close eye on this. last year, former defense secretary robert gates said that he believed that some of the

provocations by north korea were due to the fact that the youngest son was trying to earn his stripes, so positive speak, with the north korean military. so that now that his father has passed on it will be interesting to keep a look to see if those provocations do continue. >> the latest news, chris, you well know, coming out of the regi region, is that north korea has test fired a short-range missile into the east sea. our tim schwartz producer in hong kong is saying let's not rush to judgment and say this is directly related to the death of kim jong-il. having said that, is there any early reaction from the pentagon to this news? >> reporter: not yet. they're still assessing the situation. as mentioned, the short-range tests do happen from time to time. there's not anything overtly unusual about that. the thing that the u.s. really keeps an eye on is more of the long-range missile tests. the one that they conducted in 2006 that crashed with a minute,

the one they conducted in 2009, which was ostensibly a missile capable of reaching the united states. it crashed between the second and third stages when they didn't separate, but, yeah. i talked with an official when i was doing a story in north korea about six, eight months back, and he said, look, the worry with north korea is not that they're developing these long-range missiles that have a first-strike capability. he said this isn't a case like with the old soviet union. the problem with north korea is he felt they will sell to anyone in proliferation, that's the real worry with their military buildup. >> cnn the chris lawrence live at the pentagon for us. chris, thank you very much. we want to go straight to cnn's senior producer tim schwartz who joins us now live from hong kong. and you're getting more sort of intelligence on this news that north korea has test fired a short-range missile into the east sea. tim, what are you learning?

>> well, very limited information. all we know basically is that the north koreans did indeed test fire a short-range missile into the east sea. now, the south korean government says they've been watching this for some time and they do not have any evidence to believe that this is connected in any way with the death of kim jong-il, or is an overt act against south korea. north korea has weapons in its armament and must test them from time to time. >> it's not believed at this early stage, at least, that it's connected to the death of kim jong-il? >> the south koreans say they see no reason to believe that at the moment, with the information they have. i'd go along with what they say. the missile doesn't appear to be fired directly at south korea and is not showing any new capability that they have. the missile is short range. not capable of the longer range missiles as chris was talking about earlier. it's not nuclear capable. and it's not an overt act

against south korea, as year ago when there was an artillery barrage aimed actually at south korea. nothing like that at all. at the moment, remain cautious. >> cnn tim schwartz who has been to north korea nearly 20 times. knows the region very well. tim, thank you very much. bring in victor cha, a senior adviser at north korea. thanks for being with us. i'm reading something you published this morning in the "financial times" where you say, i could not think of less ideal conditions in a north korea context under which the so-called great successor could be given the reigns of power. the great successor what the north koreans are calling kim jong-il's son, who may be 27 or 28 years old. victor, why are you so concerned about this? >> well, ali i think largely because, if you ask anybody inside or outside the government and the region what would be the most concerning conditions under which the north korean regime

would be existing, it would be, if someone told you the sudden death of the current lead perp that. that's basically the situation we're now in. they've basically been trying to hand over power to the young son, you said, is not yet barely 30 years old. you need a new ideology that accompanies a new leadership sme have not created an ideology for him at least publicly, and this guy has really no experience, compared to when his father took power in 1994. he had been groomed for about a decade and a half. really, less than ideal conditions under which they are trying to affect this power transfer. >> what do we know about him? we speculate he's not 30 years. somewhere between 27 or 30. interesting there's a major world leader now, and we don't even know that kind of detail. we knew of kim jong-il, groomed for a long time. was a military man.

a marksman. he was a horseman. and came in with an ideology. what do we know about this young man now taking his father's reins? >> we know basically little to nothing about him. we know he's the youngest of kim jong-il's three sons. it's been widely reported that he spent some time being educated outside of north korea, which makes some people hopeful he might be inclined towards reform in the north korean system. we know that he was promoted to the rank of a four-star general last september as part of the big party conference in north korea. even though he's never served a day in the military, which made some of the military upset. so we know all of these bits and pieces, but we can't put together a real profile of him, how he would want to run the country, who is a porting him and what his next steps are. >> is it likely that because he's been, you know, this is his role. he has been -- going to be the

successor. is it likely he will be accepted as the successor or any chance they'll be a power struggle. another ideology wants to take control? >> a good question and a very hard one to answer. on the one hand, this new north korean leader, this so-called great successor, i mean, there is -- this is dineastic succession in north korea. only three leaders since the founding of the country and he is now the third leader from the kim family and blood is very important. they're not north korean royalty. on the other hand, he is so untested, and there has been little opportunity for him to develop this sort of networks he needs to develop in a system like this in order to maintain security of his position and the security of power. so i think all of us will be watching this very closely to see what his next steps are and indeed whether there are group with the north that are so unhappy with the current state of the country, that they seek

to try to challenge his leadership. >> all right. a lot more questions and answers we have this morning, victor. we'll all watch very closely. when you get new analysis or intelligence, please share it with us. very good article in the "financial times" by victor cha about about what we can expect. a senior adviser and korea chair at center for strategic and international studies and former not foreign affairs. joining us to talk about north korea after kim jong-il's death is governor bill richardson, former u.n. ambassador who has travelled to north korea eight times and helped broker diplomatic deals and win the release of american prisoners there. governor richardson, good morning. thank you for joining us. i guess my first question to you is your reaction when you heard the news? >> well, extreme concern, because north korea, the peninsula, is a tinderbox. this we knew was coming, because of the health of kim jong-il. the issue is going to be, will

there be stability in the north korean leadership? will they continue the recent efforts of engaging south korea and the united states over food aid, over nuclear talks? they'd softened a bit, but the question is going to be, first, will the son, the third son we know very little about him, will he really take power with the north korean military commanders supporting him fully and secondly, will they continue what recently was a little thawing in the relationship with south korea, with china, with the united states on the six-party talks, on nuclear talks, on food aid, on remains of american servicemen? those are the issues. >> let's talk a little about the successor, kim jong un. very little is known about him. he is said to be 27, possibly 2 years old, clearly not yet 30. is said to have studied in switzerland, is a fan of american basketball. but not much known, except that he does not have any military

experience. even though he's been elevated to four-star general status. a lot of concerns, obviously, about whether he will be a real leader or a puppet. what are your thoughts going forward about that? >> well, my thoughts are that the workers party made a statement very shortly ago that basically said that he was the designated leader. that's a sign that there's coalescing around him. nonetheless, he's the third son. kim jong-il side-stepped the first two sons because he didn't think they were adequate for leadership. we -- he has no military experience. no diplomatic experience. late 20s. the good news is that he studied in a european school, but other than that, we know very little about him. the issue is going to be, had the north korean military commanders support the succession that kim jong-il put forward of his son?

that's going to be critical. and i think the next 48 hours will determine that. >> well, here's my question. are you more concerned now about stability in the region now than you were 24 hours ago? >> well, yes. yes, of course, because there was a little thawing in the relationship with the united states, with south korea, north and south were talking. we were going to consider food aid. i think it's important that if the signs are positive, that there's a stable succession, and we don't know that, that we engage north korea. that we proceed with a humanitarian aid. people are starving there. keep it non-political, but at the same time, keep a very watchful eye standing beside our ally, south korea. but it's critical that there be very few or no military provocations in the next few hours, in the next few days. >> well, let's talk a little more about that south korea. obviously, north korea's

neighbor to the south. the president, held an emergency cabinet meeting just today. he cancelled all scheduled meetings. saying the country needs to take precautions to maintain peace and stability. yet their military is on high alert. it seems like a fairly measured response. do you think it's the right one? >> it is the right one. but south korea has to be concerned, because north korea provoked them in the last couple of years. they attacked an island. they attacked civilians, a ship. so he's right to put them on military alert, but i think now's the time to just lie low, watch things as they develop. perhaps engage in a humanitarian level on food assistance, but my sense is that this transition is probably going to happen to the young son. whether there's a power struggle on who controls what, that is still, still remains to be seen,

but at least the titular son will be kim song un. we know very little about him. that's why there's so much uncertainty whether this is a tinderbox but i believe we engage them in a positive way and try to bring them out of that isolation that they put themselves in in the last 20 years. >> i consider both of us very lucky, because we're one of only -- we're only a few people who have been inside, westerners, who have been inside north korea, and i was there when they unveiled kim jong un, the next leader, the son. you were there more recently. you know, the one thing that struck me, it oddly seemed even though it was a repressive regime, oddly seemed more westernized. i saw cell phone, street lights, western food, yet the same repressive regime. you have been there eight times yourself. just give us an inside look at

this country. the most secretive regime in the world. >> well, as you said, extreme poverty. people are starving there. they have no industry, yet at the same time it steams that -- it seems that the population of north koreaa portative ever the government, as much as you know. as the military is a posupportif that transition pup step into a few vehicles, you step into sort of a time warp, but they're good people, hard-working people. they deserve better. hopefully this new leadership that comes in will open up to the west. will open up and initiate some freedoms and find ways to bring markets into north korea so that people have a better life.

>> we'll wait to see what happens. governor bill richardson, always a pleasure to talk to you. thank you so much. >> thank you. we'll continue to follow the latest on the death of kim jong-il but are monitoring several other big stories of the day. iran says it captured a u.s. spy and got lihim to come cleann camera. the tape of the alleged confession coming up. and gop presidential hopeful mitt romney wins the endorsement of i wap largest newspaper. the eder of it "the des moines register" about that decision just ahead. >> and a gift of financial freedom. tips how to avoid falling into deep holiday debt. it's 20 minutes after the it's 20 minutes after the hour. [ knock on door ] cool. you found it. wow. nice place. yeah. [ chuckles ] the family thinks i'm out shipping these. smooth move. you used priority mail flat rate boxes. if it fits, it ships for a low, flat rate. paid for postage online and arranged a free pickup. and i'm gonna track them online, too. nice. between those boxes and this place,

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24 after the hour. welcome back. "minding your business" now. news's kim jong-il's death pushing asian markets down. european stocks recovered since the start of trading there. u.s. stock market futures trading higher ahead of the opening bell and expecting low trading volume ahead of the holiday weekend which could mean exaggerated market swings all week. the head of the european central bank says it will not increase bond purchases to help europe with its debt crisis despite mounting pressure by eu leaders to do so. instead it will focus on providing banks in the region with unlimited three-year loans starting with a big offering on this wednesday. the ecb says it will be up to the banks to decide what they should do with the money. new this morning. the marker of saab cars filing bankruptcy. putting the 70-year-old carmaker on the brink of shutting down

for good. gm sold saab in 2010 and repeatly rejected plans to rescue the swedish automaker. saudi prince is adding twitter to his long list of investments. his invest company just bought a $300 million stake in the social media site. the prince said it was part of a strategy to invest in promising high businesses with a global impact. former commander of forces in afghanistan mckrichrystal is joining siemens. chairing a board overseeing a new unit and securing more contracts with the u.s. government. don't forget, for the latest news about "your $$$$$'s" check out the new "american morning."com. back right after the break. how do i get to charlie grant's house?

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good morning. welcome back to "american morning." it's 28 after the hour. breaking news this morning. north korea reportedly test firing a short-range missile as the nation announcings leader kim jong-il has died. south korea's military is on alert and the white house is watching the situation closely. north korea says kim jong-il died saturday of a heart attack that he suffered while he was on a train. he was 69 years old, and he held total power over north korea for 17 years. a big weekend for gop presidential candidate mitt romney.

he snagged the endorsements of former kansas senator bob dole and the des moines vregister. iowa's largest newspaper. and bracing for heavy snow, strong winds and icy roads. blizzard warnings in effect for parts of oklahoma, texas and kansas. officials warn it could cause dangerous driving conditions. no letup over how to pass an extension of the payroll tax holiday. house representatives are not happy with the senate's plan to extend it two more months. john boehner saying the short-term fix is just not acceptable. >> two months is just kicking the can down the road. the american people are tired of that. frankly, i'm tired of it. on the house side, we've seen this reaction coming out of the senate. it's time to just stop. do our work, resolve the

differences and extend this for one year and remove the uncertainty. >> live to washington. where our kate bolduan is standing by live. kate, here we go again. good morning. what is the latest? >> reporter: hey there, alina. yeah, it's anyone's guess at this point, i'll tell you. seemed just as many in washington and honestly probably many around the country thought congress had finally been able to reach a compromise to extend the payroll tax cut. here is a new twist in this bitter year-end battle. as you heard from house speaker john boehner right there, house republicans are not happy with the compromise democrats and republicans in the senate were able to hash out extending the payroll tax cut two two months and enjoyed broad bipartisan support in a vote on saturday. 89-10. that doesn't often happen in the senate these days. regardless, house speaker john boehner, you heard, says the house republicans are against this, because it's kicking the can down the road, as they like to say here in washington.

putting off the tough decisions while they kind of go on their holiday break. he says that if they're going to extend the payroll tax cut at all, many house republicans don't think. they don't think it's good policy. it should happen for at least one year, not surprising, alina, democrats are jumping all over this saying republicans have two options. pass what the senate sent over or as senator chuck schumer says, they alone will be responsible for letting taxes rise on the middle class. the white house jumping on it saying it's time house republicans sought playing politics and get the job done for the american people. the bitter battle continues. >> you'll watch it all. kate bolduan live in washington. as always, thank you. sobriety, wisdom and judgment. the words according to the "des moines register" qualities that make gop candidate mitt romney stand out from the other presidential hopefuls. that's why iowa's largest newspaper says it gave its

endorsement to mitt romney. joining us, editor of the "des moines register." what is it with you iowa people standing outside in the morning whenever we interview you? showing how tough you are? >> i'm where i'm told to be, ali. 34 degrees outside this morning. >> you guys are tough no question about it. why did you go with romney this time around? >> the great thing about being here in des moines and being in iowa at the register is for the past 12 to 16 months we've been able to take a very close look at these candidates. scrutinize positions, listen to platforms and most importantly, their vision for the united states. we really felt that governor romney focused on the most important issues not only for the state of iowa, or our residents, also for the united states. focused more on job creation, economic development and trying to jump-start and economy that clearly as you reported is having a lot of problems around the entire country. >> lat time you went with mccain. this time a reference why you didn't endorse romney last time.

let me show viewers what you said. we did not endorse him then, but this is a different field, and he has matured as a candidate rebuilding the economy is the nation's top priority and romney makes the best case amongst republicans that he could do that. tell me about that. >> there are three issues that emerged, i think, as we watched governor romney's campaign bp one, we thought he knew the issues a lot better than what he did four years or so ago. much more articulate. better grasp on national and international issues. the fact he focused ebs tensively on job creation and the development of the economy was able to allow us to take a close look at what he was able to do as the capital and the 2002 olympics in salt lake city's wrong to say his ceo experience without his focused commit to bipartisan collaboration and cooperation in washington. we've seen throughout the entire campaign, ali, the candidates

have seemingly tried to jockey and one-up each other if you will. who could wield the biggest wrecking ball at washington. romney that shown to us and what we have heard repeatedly now, not just one or two different meetings and visits, consistently throughout this campaign, he goes to washington, tries to ignore the rs and ds. focuses exclusively on how to you bridge this great divide i think right now is affecting washington? and it's going on throughout the entire country, including here in iowa. the consequences of the lack of bipartisan collaboration is being felt. you just reported it yourself in terms of this payroll debate going on. >> sure have. you have a nuance in the editorial i want to address with you, because some people criticize mitt romney as being a flip-flopper saying he's the ultimate politician at time when people want anything but a traditional politician, but you're actually pointing out what you're saying now, that his tendency to pick his way and move his way through political mine fields might actually be

exactly what the country needs. i want to read a line from the editorial where you talk about his evolution with respect to abortion. you say voters will have to decide for themselves whether such settlely nuanced statements express romney's true beliefs or if these trying to have it both ways. up think this able to be nuanced is what the country needs more than an ability to stand firm on one position? >> i think what we have seen, ali, not just here in iowa but throughout the entire past four to five years or so, governor romney's entry into the public service as a presidential candidate. he has morphed himself, transforms from an independent to a moderate republican, and a liberal boston with the massachusetts legislature to now a proud conservative. i think throughout that entire transformation he has taken a very close perspective of the issues he has traditionally had beliefs on and in some cases adjusted it. he's acknowledged he made

mistakes in the communication of it. we found refreshing, a candidate who acknowledged that perhaps different positions at different times and responses to things unfolding in this country, that shows maturity on our behalf. >> good to talk to you, as always. i hope you don't have a lot of these lined up, so you can get a little warmer. the editor of "the des moines register." the newspaper endorsed mitt romney. >> good talking native, anyway. >> impressed with people who do winter pieces outside. blizzards in effect for parts of the southwestern united states and possible snow in toronto on christmas. rob marciano track it it all for us in the extreme weather center. good morning. >> good morning. start you af unusual snow east of san diego. part of a system rolling into the plains this morning. this is about 30, 40 mimes east of san diego p higher elevations. snow came down as low as 3,000 to 4,000 feet. the high plains, elevations,

2,000, 3,000 feet, not the main cause of this. cold air drive down to the south. there's your energy. here's your moisture's blizzard warnings posted for a good chunk of the texas panhandle, including pards. northeastern new mexico, colorado and western kansas. 127 top 15 inches of snow potentially with this. over next 36 hours beginning pretty much now. and rain on the back side as it moves off to the north and east. from dallas to houston, possibility of seeing strong thunderstorms this afternoon. ship could be severe. moisture continues to roll up towards the north and east. temperatures rebounding across the northeast. chilly start, yes. yesterday you finally stayed below the freezing mark. 47 in new york city. 61 in atlanta. rebounding temperature. really the trend all season long. really the storm track continues to be one which keeps most of the cold air north and west of the east coast cities. so as this storm progresses up towards the great lakes, that

storm track keeps everybody east and south on the warm side of this. most likely, sporadic rains with the next couple systems that come across the northeast. upstate new york, western great lakes and parts of southern canada, including toronto may get light snow christmas eve and christmas day. >> see? >> there you go. chasing the snow this year. >> attaboy. pictures. >> you made my morning. might get snow christmas eve. won't hold you to it. just like you don't hold me to the stock market. >> perfect. that's why we get along. >> exactly right. >> good to see you, rob. new this morning, the final u.s. troops leave iraq ending the nearly nine-year war. the last soldiers crossed over to kuwait on sunday. the height of the battle, some 240,000 military members were stationed in iraq. the iraq war cost nearly 4,500 lives. secretary of state hillary

clinton urging egypt's government and protestors to show restraint. neither security force are nor protester are backing down, at least not yet. over the past four days alone violence on cairo's streets left at least ten people dead and 500 injured. iranian officials say they captured a u.s. spy and secured a confession on camera. it was aired sunday. the man in the video says he joined the u.s. marines in 2001 and got special training before being sent to iran. u.s. authorities have not commented on the authenticity of the report. penn state is rejecting cnn's request for a copy of a 1998 police report against former football coach jerry sandusky. a university lawyer saying the school doesn't fall under pennsylvania's right to know law. the mother of one of sandusky's accusers alleged the then coach, that he shower pd and hugged her son. no charges were filed in that case. now sandusky is accused of more than 50 counts of sexually abusing young boys.

tropical storm washi devastates the philippines ill kg more than 650 people. hundreds more missing according to the philippine red cross. washi swept the southern part of the country flooding cities and destroys property over 100,000 people have been displaced. as we continue to follow this breaking news of the death of kim jong-il, a rare look inside north korea. i traveled to pyongyang last october as the country started grooming a new dictator, the third son, kim jong un. an opportunity few western journalists have had. we're going to share it with you next. also, tired of bringing in the new year with last year's christmas bills? if you are, thousand make thhow debt-free holiday. you're watching "american morning." let's go to vegas. alright, let's do it.

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good morning. we're following the breaking news this morning, the death of the north korean dictator kim jong-il. >> i was given the rare opportunity to report from inside north korea last year when the nation put on a show of military might for his heir apparent. a stunning glimpse inside one

the most secretive nations in the world. take a look. >> reporter: your eyes are not deceiving you. his is north korea. this amusement park is packed. a ride called power search. look inside the food court. you'll find western fare. this family comes here often to unwind. >> he says words cannot explain after working so hard. the general has given us this park to relax. we really love it. if north korea is stalin's last playground, this is its version of disneyland. not far at this outdoor food market, they're serving up more traditional fare, like soybean pancakes and people are paying, like their enemy neighbors in south korea, north korean currency is also called the won,

one equals one u.s. dollar, that will get you two sweet potatoes, one ticket to to the amusement park or a hot dog in the food court. i've noticed change. more average north koreans speak english. do you like coming leer? >> yes, very much. >> reporter: for the first time there are traffic lights installed this spring. most notably in a country closed off to the rest of the world. north koreans are now talking on cell phones. this girl says everyone in her family has one, but international calls are forbidden. word is, punishable by death. in that way, and others, time stands still. we can only see what our government minders want us to see, and undeniably, it's north

korea's best face. many north koreans live in poverty. there are very few cars. in this city, there's no such thing as a traffic jam. this is pyongyang's subway station, one of two main hubs, and one of the main forms of transportation for average north koreans. many don't own bikes let alone cars, so this is how they get from point a to point b, and today the trains appear to be running on time. and many travel on foot. on the streets, there are no ads, just propaganda, and listen -- they not only see the message, they hear it. north korean propaganda songs blaring across pyongyang. so look what we happened upon here. in the middle of week-long celebrations here in north korea commemorating the 65 anniversary of the workers party of north korea. this is how people are

celebrating. literally dancing in the street. it's possible they're also celebrating the choice of their next leader, kim jong un. son of the ailing dictator kim jong-il. for all the small changes we've seen, the larger question remains, will a change at the to that effect the average citizen? for now, north korea remains seen. >> you know, that was october of 2010. >> just over a year ago. >> that's right. the big question still remains. will it ever open up to the rest of the world? >> that looks so normal and fun. it's not everywhere. >> absolutely not. i mean, listen, you cannot go anywhere without a government minder. they watch your every move. i think it's important. westerners have a really hard time grasping that, that north korea is unlike any other place on earth. it is literally sealed off. there's no internet access. few residents have a television set. you know, if you just look at

what happened to us when we aarrived. you land in pyongyang. your passport, blackberry, cell phone is confiscated. you don't get back until you leave. battery drained often when you get back and no record you were ever in the country. >> a lot of people have relationships with people in south korea. a lot of people came from north korea. south korea is one of the most open technologically advanced technical countries in the world? >> you look tat from above, you see all the lights on in south korea. and north korea looks pitch black. i actually have relatives. my father's two uncles dig appeared during the korean war. we don't know what happened to them. presumably if they're still alive they are in north korea, but it is -- talking to wolf blitzer over the weekend, and it really -- we were trying to explain what it is like to be

inside that country. it almost defies definition. >> the hermit nation. the hermit kingdom. >> that's right. still to come, important tips thousand have a gretip s how to have a great holiday without paying for it in 2012. we'll tell you about it when we come back. capital one's new cash rewards card gives you a 50 percent annual bonus. so you earn 50 percent more cash. if you're not satisfied with 50% more cash, send it back! i'll be right here, waiting for it. who wouldn't want more cash? [ insects chirping ] i'll take it. i'll make it rain up in here. [ male announcer ] the new capital one cash rewards card. the card for people who want 50% more cash. what's in your wallet? sorry i'll clean this up. shouldn't have made it rain.

here's what you need to know to start your day. north korea announcing the death of kim jong il. the world reacting to the death of one of the most repressive

dictators in the world. north korea says kim jong il died saturday of a heart attack he suffered while he was on a train. he was 69 years old and held total power over north korea for 17 years. house members are expected to take up the senate's payroll tax cut plan. it includes a two-month extension. house speaker john boehner says he wants a full year extension. a fourth hearing today for army private bradley manning. he's accused of leaking hundreds of thousands of government documents, many of which were posted on wikileaks. sunday investigators said manning's computer had downloaded those secret documents. the board of trustees at florida a&m will consider whether to suspend the school's president in the wake of a hazing scandal. last month a drum major was killed in a suspected hazing. his death has been ruled a homicide. and nobody is perfect this year. the kansas city chiefs totally stunned the green bay packers yesterday, handing them their first loss of the season.

19-14 was the final score. the packers are now 13-1 for the year. caught up on the day's headlines, "american morning" is back after this.

is a problem i have around the holidays, you know. so how do you avoid falling into that holiday trap. christine romans has some new tips in this morning's smart is

the new rich. >> the worst thing you can give yourself for the holidays is more debt. are you listening congress? don't buy that hype that you need to add to next year's debt this year. first, if you can't afford it, put it down. >> in a perfect world you would never charge more than you can pay in full when the bill arrived. worst case scenario, plan to pay it out no longer than three months. >> track your spending. the national foundation for credit counseling surveyed shoppers and found 56% had no idea where they spent their money by the end of the month. >> we work very hard for our money and then spend it very casually. you will never know where the leaks are until you write down every cent you spend for 30 days. seeing your spending staring back at you in black and white is a real wake-up call. >> credit card debt is particularly unfor giving, even with new protection. the best boost to your credit

score is paying off big amounts of debt and then paying them off on time. did you know a missed payment stays on your credit history seven years? finally make it your resolution to get out of debt and stay out of debt. >> go to annualcreditreport.com to see how much you owe. organize them from smallest on the bottom to largest on the top. call your creditors. this is one of the best things to do to organize our futures and get that right peace of mind. >> christine romans, cnn, new york. you have an interesting tip or question you should ask yourself. >> when you buy something, it should outlast how long it takes you to pay for it. so you don't pay for a tv over five years if you're not going to have it over five years. education counts, houses count, many cases a car loan. if you're taking a five-year loan on a car for three years, that's the way to think about things. >> and shoes?

>> shoes is an area of expertise that is not my own. i've got about two pairs and this is one of them. >> ali velshi, thank you. ahead this hour, we've got a lot of news on the death of kim jong il and the implications back here in the united states. >> that's right. fears about a power vacuum in a nuclear nation. we will have reaction live from around the world just ahead. in america, we believe in a future that is better than today. since 1894, ameriprise financial has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams. buy homes. put their kids through college. retire how they want to. ameriprise. the strength of america's largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪

together, for your future. ♪ sen♪ co-signed her credit card - "buy books, not beer!" ♪ ♪ut the second at she shut the door ♪ ♪ girl started blowing up their credit score ♪ ♪ she bought a pizza party for the whole dorm floor ♪ ♪ hundred pounds of makeup at the makeup store ♪ ♪ and a ticket down to spring break in mexico ♪ ♪ but her folks didn't know 'cause her folks didn't go ♪ ♪ to free-credit-score-dot-com hard times for daddy and mom. ♪

north korean dictator kim jong il is dead. the country already announcing what it calls a great successor to the so-called dear leader. >> at the ready, i'm ali velshi. the region on alert and the world trying to figure out what now for north korea and its nuclear weapons. all of that ahead on this

"american morning." good morning. it's monday, december 19th. so glad you're with us on this edition of "american morning." >> it is a very busy morning for us. question marks about a hostile nuclear power after the death of north korean dictator kim jong il. his 17-year reign of absolute total power now over. >> the big question is what next? the news of the death was announced last night on north korean's state television by a weeping television anchor. north korea says kim jong il died on saturday of a heart attack he suffered while on a train. he was 69 years old. we're getting a rare look inside the hermit kingdom this morning. new video of north koreans sobbing over the death of their so-called dear leader. although many suffered, millions starved to death during his rule. they were told stories of his

divine birth and super hero-like powers. instability in the region is a major worry. we're live in beijing with reaction there. stan, we're likely to get the most information out of beijing. this was north korea's greatest ally, china. >> reporter: indeed. you know this relationship has been described as like lips and teeth, forged on the battlefield during the korean war when chinese fighters fought alongside north koreans. according to a 1961 treaty, china has sworn to defend north korea against any up provoked aggression. that said, china and north korea do not have an easy relationship. while it is very close and china has a great economic stake in the country providing about 80% of the consumer goods to north korea, about 90% of its fuel, about 50% of its food, at the same time analysts have said that china -- now, if we look at

the nuclear tests north korea carried out, they were seen as causing strains in this relationship and china has been concerned about north korea blundering into a conflict that could put at risk china's continued growth. what's really going to be crucial in the coming days, the crucial relationship here is the relationship between the united states and china. u.s. in south korea's corner, china in north korea's corner. the ability of those two, the big superpowers of this region, to be able to work together could be the key to the ongoing stability of the region and avoiding any misunderstanding that could lead to conflict. >> and we've heard this morning measured responses from the state department, from the white house, from south korea, stan, so we'll be watching all of these reactions about those parties around north korea very closely. stan grant in beijing for us. of course he made a reference to the missile test. we know that north korea has tested and fired a short-range

missile. >> right. >> this morning. this is not an armed missile and not a nuclear missile. >> and this happens from time to time as we've been reporting this morning, not necessarily linked to the death of kim jong il. we are watching world reaction, of course, including from the white house. it says it is in constant touch with its allies in the region. dan lothian is live for us at the white house with more on that. dan, good morning to you. >> reporter: well, good morning. as you know, the u.s. and other allies as well have been for some time now trying to tame north korea's nuclear ambitions through sanctions, trying to isolate north korea. and so the question now for the obama administration is what happens next. there have been some steps that have been taken, some baby steps, if you will, in trying to establish a dialogue between the united states and north korea. you know there have been talks about, again, resuming food aid to north korea as well, so will it be a continuation of this

effort or will it be more of the same, perhaps even a slide packward. the obama administration for its part has been in touch with the south koreans, in particular president lee. president obama spoke to him by phone at midnight. they talked about the situation on the korean peninsula, said they would continue to stay in touch and that their national security teams would continue to coordinate. but again, as you've been talking about from the white house here and other nations who are part of the six-party talks, there has been a very measured response and in fact the white house only releasing a short statement not long afterward went out last night that kim jong il had in fact died. the white house saying that, quote, we are closely monitoring reports that kim jong il is dead. the president has been notified,

continues to be in touch with allies such as south korea and japan and that, quote, we remain committed to stability on the korean peninsula and freedom and security of our allies. >> similar language to what was released by the south korean government. the stability on the peninsula is most important. this idea until we have a better handle on the situation, don't stay too much. >> that's right. and i think it's probably a smart response on the part of the world community. to most kim jong il will be remembered as an oppressive ruler who controlled a nation for 17 years through fear and intimidation. now that the man with all that power is gone, the big question, of course, is what will happen to north korea and its nuclear weapons. >> we are joined by ambassador kim, the consul general of the republic of korea here in new york. ambassador, thank you for being with us. >> good morning. thanks for the opportunity. >> the response from your

government is very similar to what we've heard from the white house and state department, that we're interested in stability and peace in the region. what can you tell us about what the south korean government has gone through this morning. >> i think we have took all the measures that you can do from military and internal security and government officials, because we don't know what will happen. the most top priority is to prevent anything troublesome, any provocations. i don't think that north korea can afford some provocation at this point, but we must make sure that everything is okay. that is the top priority. the second thing is we must check and communicate with the neighboring countries, particularly the united states and china for sure. i do not believe that everybody

has known what's happening correctly inside of north korea. we're all curious what happened. >> the president held an emergency cabinet meeting today and cancelled his regular schedule, he's spoken with president obama and the leaders of japan and russia. but it's largely believed that the world community was caught off guard by this news. how surprised were you to hear that kim jong il had died? >> well, it's surprising to me, but we have had information and watched the situation for a past few years. apparently there were reports that he suffered from diabetes and other -- >> a stroke in 2008. >> i personally worried that he went to china, the north at eastern provinces and he had to go through different cities and he went to russia, he went to

siberia. i was wondering how this guy who has been -- >> ill? >> been ill could travel. >> the north korean agency, the news agency said that it was a lot of stress and that he was going through that. what do we know about his son, who has been named his successor? we don't know as much about his son as we do about kim jong il. >> yes. i do not believe everybody is curious and his government coming into the north korean system. his son is apparently young. he was sent to switzerland when he was young and he had some international education, so i believe he's more international, his son, and knows what's happening in the world. i believe there's been a change

in north korea's society to some extent -- >> but very little is known about him. we don't even know his age. he's said to be 27 or 28 years old, no military experience. the north korean people had not even heard his name until october of last year. kim jong il had been groomed for many, many years to be the next leader to succeed his father. from the south korean perspective, how concerned are you about this young man who is now taking over the most repressed society in the world? >> his ability and his background is not well known, not only not well known, not well formed, as you said. that makes a lot of people worried. i would like to point out that i would like to believe in the leadership of north korea to be responsible for their own problem. troubling point for us is that north korea has a record to let millions of people die from

starvation. there were many killings. but they were continuing to develop missiles and nuclear capabilities. in this announcement of his death, i carefully read and then they said this leader, kim jong il, has made this nation great by making it a nuclear weapon state and military strong and spiritually strong. so i think they will continue to literally continue the provocative way and approach in dealing with matters of foreign policy and security. even though kim jong il tried to negotiate with the united states. however, as long as they put the military force policy on the top and then they put the resources on missiles and nuclear, which they think secure their position, but why people are

starving and children can't have proper nutritions, this cause a lot of human disasters. so what worries me is kim jong il's personality but the leadership, where they put the first pride. >> ambassador, the consul general of new york, thank you for coming in and joining us. >> thank you. coming up, a fierce storm is moving in on the southwest. meteorologist rob marciano is tracking the storm for us in the extreme weather center. we will get to him next. plus could we be heading back to the drawing board when it comes to extending the payroll tax cuts? we'll talk about that when we get back as well. and a rare look inside north korea. last october the country started grooming a new dictator. it's an opportunity very few western journalists have ever had. we'll share it with you when we come back. it's 12 minutes after the hour.

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oh, alina, i just came back last night from chicago. i love that town. friday night christina and i were there. 47 degrees and cloudy, high in the 40s but chicagoans, like those folks in des moines, they don't care if it's wet or it's cold, that's what it is. welcome back, everybody. kim jong il's death sparking concern over who exactly is in control of the reclusive nation and its nuclear program. >> joining us now is james rubin, the former assistant secretary of state. good to see you. >> nice to see you both. >> you know, the ambassador from south korea was just here, the consul general of new york, and he was sort of saying that, look, there is some concern that while this new leader has been named, kim jong il's son, he's not very well known. because he's not militarily proven, there may be people in

the military who have other ideas and that this may not be as stable a transition as much of the world is hoping at least it will be. >> i wouldn't bet on a perfectly stable transition. this is not an easy thing to do. remember in a communist state to go from father to son, it never happened before when the founding leader gave it to kim jong il so it's not easy to pass it on and that's because there are many different power centers, the military, the party, the security apparatus, the secret police, whatever. some of them may not feel comfortable with the fact that this young man, who's not really done very much, will suddenly be in charge of this country and its nuclear weapons. but i think where the ambassador is right is that it's less an issue of his specific personality than the policy of this group, whether it's him doing it or this military regime doing it. they have made a decision to become an outlaw state, to focus all of their energies on

military, to build a huge military, to build a ballistic missile, to build nuclear weapons, while letting their people starve. and that's why it's so important for them maybe, under a younger man who's seen more of the world or at least been able to, to see the value of north korea opening and then it could be a great thing. >> do you see that, i mean, as a potential scenario? i mean i don't -- it's hard to imagine. >> well, you've been there, a lot of people have been there. it's a really awful place where millions and millions of people have been owe pressed and starved to death. but the modern world makes it harder and harder to remain in isolation. and i think with every passing year, we're closer to the day when this system will collapse. now, what will happen? what will replace it? will it be instability, will it be chaos? this is what china worries about and this is why china has refused to put pressure on north

korea that they could, in spite of their nuclear weapons program. so i think a lot of people will now be raising the scenarios of what happens if there's a collapse, what happens if one wing of the regime takes control of the nuclear weapons, what do we do if there's an incident at sea with the south koreans. >> china is now -- i would say china becomes more of our ally than not because we don't even know exactly how old this new leader is. china probably has more information and more contact with north korea than anyone else. and at this point there is some pressure on china to make sure this doesn't unravel. >> well, you know, china wants to be a leading player in the world. >> right. >> they want to be treated with respect, and they want to have equal access to markets around the world. but with that comes responsibility. and too often the chinese have left to the united states and others the hard work of putting pressure on countries, of making people not like them. the chinese would prefer everybody like them. let them buy and sell their

stuff and they can get rich. now is the time for china to show that it has become more than just a seller of goods but is actually participating in making the world a safer place. we'll see. i'm not optimistic. the chinese, yes, they know a lot about the north koreans, but they have been reluctant to put pressure on them for fear, as i said, of chaos. >> maybe the only government to have actually met kim jong il face to face. just yesterday there was a report that the u.s. was ready to send food aid to north korea. in return, north korea would take steps to deactivate its uranium enrichment plan. obviously that's all in question right now. how do you see this playing out in terms of the resumption of the six-party nuclear talks, which is what i think the world community wants to see. >> you're exactly right and i think that is the important question right now.

clearly there has been an effort to sequence a series of steps beginning with food aid and then the exchange of meetings, then perhaps the beginning of real proper talks, the freezing of certain north korean nuclear programs. it's very, very difficult to orchestrate these things in the best of circumstances with north korea. i kind of wonder whether a new regime with a sudden change from father to son and the instability that goes with that will be prepared to take these steps that they may have agreed to last week, last month. so if i were in the administration i would be wondering whether this deal that they had struck would really be carried out because it would lead ultimately to the big question that the ambassador talked about, the priority given to the nuclear program versus the lives of its people. >> lots of questions, we'll continue to look at it. we are going to be watching this

all very closely. everybody's responses to it. >> jamie, thank you. still to come on "american morning" some college-based programs are helping students make a difference by creating jobs in needy communities. find out how. it's 21 minutes after the hour. . a network of possibilities... ♪ in here, pets never get lost. ♪ in here, every continent fits in one room. it was fun. we played football outside. why are you sitting in the dark? [ male announcer ] in here, you're never away from home. it's the at&t network. and what's possible in here is almost impossible to say. at&t.

good morning. it is 24 minutes after the hour. minding your business this morning, right now u.s. stock futures are trading higher ahead of the opening bell. we are expecting low trading volume this week ahead of the holiday weekend, which could mean exaggerated market swings all week. new this morning the maker of saab cars is filing for bankruptcy. that puts the 74-year-old car maker on the brink of shutting

down for good. gm sold saab back in 2010. it just recently rejected plans to rescue the swedish automaker. new concerns about your privacy, as more and more doctors use electronic medical records, the number of security breaches is up. according to one research group breaches have spiked 32% from last year. that's costing the industry an estimated $6.5 billion. one company here in new york is betting you'd rather watch a commercial than pay those pesky atm fees. the company is called free atms nyc and you just have to watch an ad while waiting for your money in order to avoid that roughly $2 charge. one caveat is that you still could be charged by your bank for using an out of network atm. sherlock holmes topping the box office but it took in a disappointing $40 million. "alvin and the chipmunks" debuted at more than $23

million. up next, is the plan to extend the payroll tax holiday falling apart in washington? "american morning" back right after the break. crescent wrappee just unroll, wrap the brie and bake. it's so easy. now this might even impress aunt martha. pillsbury crescent wrapped brie. holiday ideas made easy.

welcome back to "american morning" for monday, december 19th. it is 29 minutes after the hour and here are your top stories. north korea reportedly test firing a short-range missile as the nation announces that leader, kim jong il, has died. south korea's military on high alert and the white house watching the situation very closely. north korea says kim jong il died on saturday of a heart attack that he suffered while on a train. he was 69 years old and held total power over north korea for 17 years. the board of trustees at florida a&m is considering whether to suspend the school's president in the wake of a hazing scandal. last month the drum major, robert champion, was killed in a

suspected hazing. his death has been ruled a homicide. florida's governor says the president of the university should step aside, but alumni want the governor to take back those comments, afraid that the interference may put the school's accreditation in jeopardy. the southwestern plains bracing for heavy snow, strong winds and icy roads. blizzard warnings in effect for parts of new mexico. colorado, texas, oklahoma and kansas. some areas could see up to two feet of snow. officials are warning that the storm could cause dangerous driving conditions as well. back to the big story, breaking news story this morning, the death of the south korean leader. barbara starr has just returned from a briefing on north korea with u.s. chairman -- with the chairman of the joint chief of staffs, general dempsey. he joins us on the phone now from ramstein air base in germany. barbara, obviously this is of great concern to the u.s. military. what have you heard? >> reporter: ali, good morning to you. we are traveling with general

dempsey, the chairman of the joint chiefs of staff and he has just briefed a very small group of reporters, including cnn. he was woken up overnight here in germany. there was an interagency phone call with the most senior members of the united states military and the national security community at the white house where they all got together on the phone to discuss the priorities, what happens now. top priority, to make sure they have the intelligence assets. that means satellites, eavesdropping equipment, electronic surveillance equipment, to keep on eye on the north korean military. they are watching very closely. so far general dempsey tells us they see no movement of north korean forces, but these are the key military indicators that they are watching for right now. and indeed we were told separately that short-range missile firing that has been reported overnight was something actually that they had expected. it was reported through the armistice commission.

they say they're not really too concerned about that, but they are watching they closely. general dempsey also saying he continues to be concerned about the succession plan in north korea. everyone believes the son will take control, at least for now, but he is young and inexperienced. general dempsey says, as does everyone else. so they are going to watch all of this very closely. right now u.s. forces in south korea he said not on any particular alert status other than their usual, but this is front and center. people were up all night long trying to get things in place. >> that's good information for us because we wanted to know how are they reacting to this. general dempsey seems to be sharing the concern we've heard from other analysts this morning that the succession, the effectiveness and smoothness of the transition is what is concerning everybody. is the son really going to take over as his father did from his father, or will there be others with other ideologies who may

want to complicate things. barbara, thank you very much. keep in touch if you have any other developments. >> and part of it because there's so much mystery surrounding this young son, who is said to be 27 or 28 years old, not groomed for a very long time, unlike his father who was, kim jong il, who ruled for 17 years. >> you know, part of it -- kim jong il when he came in had been shown for years. he was a horse rider and a marksman, a military guy. this son hasn't. i wonder whether the scheduled military test this morning, this missile that was fired is just part of showing that he's in charge or this country still has military priorities. >> it could be. again, it's also something that they typically do from time to time, so we'll have to watch that very closely. meanwhile, i want to talk a little bit about what's going on in washington and the gridlock there. no letup in the squabbling over how to pass an extension of the payroll tax holiday. house republicans are not happy with the senate's plan to extend the cuts for two more months. house speaker john boehner

telling nbc this short-term fix, just not acceptable. >> two months is just kicking the can down the road. the american people are tired of that. frankly i'm tired of it. on the house side we've seen this kind of action before coming out of the senate. it's time to just stop, do our work, resolve the differences and extend this for one year and remove the uncertainty. >> we want to go live now to washington where our kate baldwin is standing by live. what's the latest? >> reporter: just when washington and pretty much everybody thought congress had finally reached a deal, here we go again, now another twist in this bitter, bitter year-end battle. house republicans are not happy with the compromise the senate passed. the vote saturday was 89-10. the senate in that vote approved a two-month extension and that was because leaders couldn't agree on a more comprehensive deal that they were trying for to extend the payroll tax cut

for a full year. now speaker boehner says house republicans are opposed to that two-month extension because quite frankly they say they're tired of the short-term fixes. if they're going to agree to any extension, it does need to be for a year. that's an apparent shift from boehner from just this weekend. during a conference call with house republican members, boehner, according to a republican source, called the senate vote a good deal and a victory. democrats now from the white house on down are pouncing on this saying that the house was two choices, pass the senate bill or, as senator chuck schumer said in a statement, they alone will be responsible for letting taxes rise on the middle class. so in the short term this is what's happening today. the house is set to vote on the senate compromise this evening but senate democratic leaders have given no indication that they're willing to bring the senate back if the house makes any changes to their deal. one aide telling me there is zero chance that the senate will reconvene from their holiday break. >> all this back and forth,

kate. thank goodness we have you to watch it for us. >> i have whiplash. >> kate bolduan, live in washington. are you hoping for a white christmas? are you going to be here? >> i am going to be here. >> i don't think we're getting one here. there's snow and fierce winds moving in on the southwest right now. rob marciano is tracking the storm in the extreme weather center. what's the situation, rob? >> the same folks that have been getting hit with stormy conditions this winter are getting it again, the southwest. let's go to the videotape out of san diego. yeah, california, obviously in the higher elevations just outside of san diego 30 or 40 miles. the kids were out there friday and saturday playing in snow, albeit wet. driving slick at the higher elevations at times. this storm now ejecting out into the plains and we're looking at snow and blizzard conditions potentially from new mexico, up through colorado, texas, north texas at least where right now it's raining but that should turn over to snow once we get the colder air to drive down from canada. how much snow you say? 10 to 15 inches, potentially more in some spots for a sliver

across the extreme northeastern new mexico, northern texas, the panhandle of oklahoma and getting into kansas and even eastern parts of colorado. everywhere east and south will be in the form of rain. by the way, some severe thunderstorms. a lot of energy with this, so once it taps into the moisture from the gulf of mexico, the possibility of strong to severe thunderstorms from dallas to houston later on this afternoon and tonight does exist. it begins to lose a little of its punch as it heads towards st. louis. more scattered rain showers and the snow stays pretty far to the north. dallas will be a problem spot because of the thunderstorms in the afternoon. some wind in d.c. and new york but rebounding temperatures after a cold weekend. the coldest air of the season so far, but temperatures today expected to get to 47 degrees in new york city and 61 degrees in atlanta. even 42 degrees in chicago. the storm track, like it's been for the past couple of weeks really, has been from the southwest up through the western great lakes and pretty much staying north and west of some

of the major metropolitan areas on the east coast and that's expected to be the case at least through thursday, so the next couple of system that say come through will be, if anything, wet across the i-95 corridor but towards christmas and the further north you go, upstate and toronto, parts of southern canada, will have a better chance of seeing snow. >> i thought you were going to refer to toronto as upstate new york. >> well, somewhat. >> how do kids in san diego even know how to have a snowball fight? kids are out there like it's second nature. where do you get the clothes for that? how do you know how to form the snowball? i think the whole thing is a fraud. >> no, kids find a way. >> rob, good to see you, my friend. >> you're going to see a little bit of both. >> i'm hoping to get a little bit of that. >> in toronto and then you head to florida. >> won't get any snow in florida. all right, coming up next on "american morning" a really interesting story. one program is helping to create a new generation of entrepreneurs we need the most but it's also making an

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good morning, new york. wake up, for heaven sake, it's 20 to 9:00 in the morning. it is 32 degrees and partly cloudy. it sure feels like winter out there. it's going to get up to 46 and it is going to be a beautiful, sunny day, just like yesterday was. just clear skies, fantastic. welcome back to cnn. 42 minutes after the hour. a group powered by college students is helping college students create jobs in some of the country's least fortunate communities. it is called campus microfinance alliance. joining me is a student participant along with the co-founders. good to see you all. thank you for being with us. >> thank you. >> this world of microfinance is still a little unfamiliar to people. it's a well established world but it's the concept that you provide loans of the right size to people who need to start something up. tell me about what you do. >> yes. i'm the executive director of an

organization called the indirect fund. it runs in new jersey. for entrepreneurs who are looking to start a small business or grow a small business, we provide a little advice and capital so they can get their business off the ground. >> what kind of businesses are we talking about? how much money do they need, what do they do? >> an example is a lot of food carts will come in looking for money for a generator, so we have a client, mildred, that needed to apply for a loan to get a generator for a food cart to start operating. and that was the difference between her being unemployed and now being employed. >> and these are the type of things you don't go to a bank for. there's not enough business for a typical bank to get involved? >> and for most of our clients it's also a question of personal credit. we're able to help them fill out documentation, protect their finances and figure out what's best for them. >> andy, where does the money come from? >> well, foundations, individual donors, also people can lend us

money. my organization is called the capital good fund and we lend to low income people in rhode island. >> very surprising with microfinance, worldwide when i've studied this, the interest rates tend to be higher than you would think. these are not low interest loans and the repayment rates tend to be quite high. why is that? >> i think you're dealing with a real person, it's a real face, it's not just a statement that comes in the mail every month. so right here, small businesses are challenged with access to credit and they need it, because as we know -- in fact if one in three small businesses were able to add just one job, our country would be at full employment. >> just one in three businesses were able to add one job. but the case of this woman whose example you gave me, where she came and wanted to buy a generation, that's keeping her employed. some people will say what kind of interest rate would she pay? >> we offer 10% on a declining balance and that works out to

$162 monthly payment, 13 months and that's much lower than any other option that's currently available. >> why do you think the repayment rate is as high as it is and is it the same when you lend? >> so our repayment rate for elm seed is currently at 91%. i think it's so high because we have personal contact with our lenders, with our clients and we also put a lot of effort into making sure that we don't put an unnecessary burden of debt on anybody, so we do a lot of homework on our end as well. >> andy, what kind of people should think about going to an organization like yours to get finance? what's the range of things that they can borrow for and the amounts of money? >> we lend up to $5,000, so these are microbusinesses. traditionally people that are low income, a lot of time part-time businesses. but we've seen a lot of middle income people who have poor credit and just can't find a loan anywhere else. these are people looking to do

things like a contracting business, painting business, catering, things like that. >> so is it always a capital investment or can it be operating money that they need from you? >> sometimes it can be for a marketing initiative or some insurance or, you know, maybe you're a contractor and trying to get a big job with a government agency. they probably aren't going to pay you for 90 days an you need a little to pay your employees and get started. >> what do they have to bring to you? in some cases the smallest are businesses are not sophisticated in terms of the things they need to do like business plans. >> elm seed is really fortunate to have a dedicated crew of student volunteers, around 40, and we actually work with entrepreneurs to do everything so they can just come to us with their idea. they use the funds and we will work with them to produce all the documentation they need, which are production, a business plan and personal credit. >> andy, you mentioned starting jobs. how much money -- i mean this is the age-old question because all we want to do in this country is

create jobs and solve so many of our problems. how much money does it take to create a job? >> that's a good question. we're extremely cost effective. we have a pretty small budget, five employees, a couple of thousand bucks at this level. it's not -- these aren't like -- we're not looking to bring the next google into rhode island, we're just starting in a local economy with existing resources and it's a very cost-effective way to create jobs. >> so it's like a trickledown effect. you're providing money to people who are going out there and creating jobs. i'm fascinated by this repayment rate and very low default rate. is it just you have a sense when you're loaning money? clearly not everybody who comes to you to borrow gets a loan. >> no, that's not true. not everybody gets a loan from us. we have an extensive underwriting process and a very developed personal relationship with our clients. we work with them for a while before we lend. >> so you've got to know them and know what their plan is. what a great thing. i hope it continues to work for you. thanks for doing that.

they are all involved in microfinance, a growing field and one that our larger banking system may actually take some lessons from. still ahead, a rare look inside north korea. a look back at alina's trip to pyongyang. a massive military parade as the country started grooming a new deck tar dictator. many, many new developments. it's 48 minutes after the hour. [ woman ] my boyfriend and i were going on vacation, so i used my citi thank you card to pick up some accessories. a new belt. some nylons. and what girl wouldn't need new shoes? we talked about getting a diamond. but with all the thank you points i've been earning... ♪ ...i flew us to the rock i really had in mind. ♪

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ten minutes before the top of the hour. markets open in about 40 minutes and right now u.s. stock futures are trading slightly higher, even though the markets in asia were down after the news of kim jong il's death. north korea reportedly test firing a short-range missile as the nation announces that leader kim jong il has died. north korea says kim jong il died saturday of a heart attack that he suffered while he was on a train. he was 69 years old and held total power over north korea for 17 years. house members are expected to take up the senate's payroll tax plan today. it includes a two-month extension. house speaker john boehner says he wants a full year extension. penn state is rejecting cnn's request for a copy of a 1998 police report against former football coach jerry sandusky. a university lawyer is saying the school doesn't fall under pennsylvania's right to know law. the mother of one of sandusky's accusers alleged he showered and

hugged her son. no charges were filed in that case. a fourth hearing today for army private bradley manning. he's accused of leaking hundreds of thousands of government documents, many of which ended up on wikileaks. investigators say manning's computer had secretly downloaded those documents. that's the news you need to know to start your day. "american morning" is back after this.

52 minutes after the hour. welcome back. the u.s. and close allies in asia are watching north korea this morning after the death of kim jong il. >> that's right. a little more than a year ago i was given a rare opportunity to report from inside north korea when the nation put on a show of

military might for its heir apparent. it was a stunning glimpse inside one of the most secretive societies in the world. take a look. your eyes are not deceiving you. this is communist north korea. its newest attraction, this western-style amusement park and it's packed. there's a ride called power surge. take a look inside the food court. you'll find western fare. this family comes here often to unwind. he says words cannot explain the excitement after working so hard, general kim jong il has given us this park to relax. we really love it. if north korea is stalin's last playground, this is its version of disneyland. not far at this outdoor food market, they're serving up more traditional fare like soybean pancakes, and people are paying

like their enemy neighbors in south korea, north korean currency is also called the one but this features a hammer and sickle. one dollar will get you two sweet potatoes, one ticket to the amusement park or a hot dog at the food court. in the two years since i last visited north korea, i've noticed some changes. for one, more average north koreans speak english. >> do you like coming here? >> yes, very much. >> for the first time there are traffic lights, installed this spring. most notably in a country closed off to the rest of the world, north koreans are now talking on cell phones. this girl says everyone in her family has one, but international calls are for bidden. word is punishable by death. in that way and others, time stands still.

we can only see what our government minders want us to see, and undeniably it's north korea's best face. many north koreans live in poverty, there are very few cars. in this city, there's no such thing as a traffic jam. this is pyongyang's subway station, one of two main hubs and one of the main forms of transportation for average north koreans. many don't own bikes, let alone cars, so this is how they get from point a to point b. and today, the trains appear to be running on time. and many travel on foot. on the streets, there are no ads, just propaganda. and listen, they not only see the message, they hear it. north korean propaganda songs blaring across pyongyang. look what we happened upon. we're in the middle of week-long

celebrations commemorating the 65th anniversary of the workers party of north korea. this is how people are celebrating. they are literally dancing in the streets. it's possible they are also celebrating the choice of their next leader, kim jong eun, son of the ailing dictator, kim jong il. for all the small changes we've seen, the larger question remains will a change at the top affect the average citizen. for now, north korea remains. >> it's hard for us to conceive of how sealed it is. and while some have said maybe it's a little less sealed than it used to be, it's still pretty sealed. >> it is. for all the talk about the western fare and cell phone use, i point out you can't call outside of the country. when you arrive there as a western journalist, your passport is immediately confiscated, your cell phone, your blackberry immediately confiscated. you don't get it back until you

leave. a couple of interesting things going forward is that kim jong il's body is in a mausoleum in pyongya pyongyang. north koreans will be able to see it. his father's body is there as well. the funeral is december 28th. the official mourning period ends on the 29th. april 15th of 2012 is an important date. it's the 100th anniversary of the fousnder of north korea. >> they were preparing for it. >> they were preparing for a massive celebration and presumably to invite western journalists inside the country. obviously the tenor of that celebration, if you can even call it that, it will be different now. >> like we say, there's a lot more questions than answers than there were in north korea yesterday. we don't even know officially how old this new leader is. all right, we'll be back in just a moment. we're continuing to cover this story. it's 57 minutes after the hour. what ? customers didn't like it.

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