Live show. Already imposed on russia for harming the global economy. To talk about in germany and elsewhere, but no the russian ruble has fallen 23 against the dollar in the last three months. Fueling it 8 in prizes from the same time last year. Russia central bank now passed zero growth in 2015. Budget to fund half of it taking a hit because the Falling Oil Prices that are down more than 30 since june. Russia is still spending billions. Its enganged in 100 intercepts of russia aircraft in europe this year alone. Thats bound to just worsen tensions with the west, in a time when many members are spending less on their militaries. Patricia reports. It is a top priority for russia president vladimir putin. Modernizing the Nations Armed forces. A upgrade that is consumed between 3. 3 and 4. 1 of russias economic output every year since putin came to power. They are half way through their transformation, which was focused on being able to conduct large scale combat operations on the european combat. That can push around their neighbors. Western sangs Falling Oil Prices and blistering inflation are hammering russias economy. Put so far, the kremlin has not tempered its ambitious goal of bringing twothirds of the military hardware up to date by the end of the decade. While inflation will take a bite out in real terms the kremlin is still on tract to allocate more than 4 of the output towards defense spending. A g. D. P. Commitment natos european commitments are nowhere near matching. Tasked to ensure and security and defense of its member nations populations. An obligation met by the United States and only three european members last year. Since the nato summit thissal, members close to russia have upped their spending commitment, with lithuania pledging to meet the 2 target by the end of the decade, and poland by 2016. But further away, some of the alliances biggest members have yet to step up their defense spending. Including germany, which recently suffered several embarrassing episodes involving poorly maintained military aircraft trying to deliver support to iraq and ebola aid to africa if germany spends more, lit signal that it is serious about the problems it has created and willing to tolerate a higher level overall. Have yet to convince to jack up some expense spending, it still boasts military capabilities thanks in large part to the United States. Nato is developing a Rapid Reaction that can mobilize up to 4,000 troops within 48 hours. It is also stepping ulmer tear exercises. All next week, real money will bring you a special report called the new cold war. Ali velshi traveled to europe to see first hand how tensions between russia and nato over ukraine are rippling through countries from romania, to poland, to norway. Onnd mo, alley reports on how the new chill is playing out in the arctic, where russia is pursuing the oil and gas it depends on to support its economy. Here is some of what you will see. The stakes are more about than just military and influence, they are also about money. Here the battle is being fought over energy. The arctic is home to 13 of the worlds undiscovered oil, and a third of its natural gas. Eight nations lay claim, including russia, canada, and the United States. They alongside china are all pursuing huge reserves of oil, gas, and coal. Russias err surgeons has been fueled by hydrocarbons. And if they are to stay powerful, they need more hydrocarbons to come out of the arctic. Two mini submarines plant add flag under the north pole. Canada and the u. S. Scoffs comparing the play to a 15th century land grab, be uh the move underscores the growing importance of the region. To get a first hand look, i headed north, way north. To the northern most town in the world. On an island in the high arctic called small bar. Many nations including russia are eyeing this once sleepy coal mining settlement as a strategic base in this newark tick frontier. We are much closer to the north pole, and this is for polar bears. Now here they generate electricity by burning coal, and they were looking for a place to put the c. 02 emissions. They were trying to find a reservoir to put it underground, and they came across natural gas. Dune in all next week for the new cold war, a special five part report on real money. At 7 00 p. M. Eastern, and four pacific only on al jazeera america. There may be no bigger casualty in the economic war being waged against russia than germany. We are look at how sangs have slowed the economic engine of europe coming up, plus, isil and the power of money, we will tell you how the Islamic State could start minting its own coins. You are watching real money, tell me what is on your mind, by tweeter ali velshi, also facebook. Com ali velshi, keep it here. Caused a huge drop inhave german exports to russia. Just narrowly avoided add recession last quarter, and germany is not the only european country struggling. The entire euro zone is barely getting by. Europes largest economy is growing again. But just barely. With july to september growth in germany measured at 0. 1 pest. Was a Biggest Surprise with 0. 3 growth the first increase this year. But realizing that even in france, which is said to be like lagging with reforms and such, that even there the recovery is bound to set in put then the real issues may be justified because if it is recovering but germany and the euro zone face a trouble international client. And then there are the european sanctions against russia over ukraine, and that hurts the ability of European Companies to make decisions about investments. Finally, big countries in the euro zone, france and italy have been reluctant to implement the reforms they agreed to. Theres increasing talk that the central bank led by government upons to help things, many german m. P. Es are opposed. What is important know is we dont leave it to be alone to improve the economic situation. It was already heavily involved, i see this now as a political task, the eu government and the commission now need to address this through investment, and posterity. The german chancellor, however, is unlikely to lend support to any more softening policies across europe. The German Government view is france and italy for example must reform to return to solid long term growth in the future. Al jazeera, berlin. Germany has been playing along with the counter parts in the conflict, but the euro zone needs germany to take the lead and making more aggressive moves. Thats according to eric, at the Mccain Institute for international leadership, who joins us from washington, d. C. So, eric, germany seems so important here why is it so critical. Well, i think it is fair to say, that germany has really evolved as the leading player in the european union. Martially because of its economics, so the fact that germany needs to play a leading role without their support, lit be difficult for the European Countries to go ahead on a similar approach. I think it is fair to say that we have seen the patience, maybe running out, at the same time, of course, merkel has to balance the domestic situation in germany, and many of those including business interests are avoiding sanctions. It is a very tricky line. I think everyoneny will, it is clear that they are not willing to change their policies. Two latest reports a growing military escalation, is very worrisome, we have to see tougher sanctions coming from the west, with the gradual approach offed aing more sanctions. So i think there is a need to take tougher sanctions. And germany needs to play a leading role there, i think for europe to go along but also help them out, one way to do that would be to offer to mr. Mote exports of energy to europe to help offset shortages from relying on gaps. Germany cant do it alone. We heard them talking about the reduction in spending, military spending that we have been seeing in many countries. What do you think nato needs to to . I think theres a couple of things. First of all, they need to really make it clear that what russia is doing is unacceptable. That the allies are safe, which guarantees their security is really safer than the attempt to move in a single engine to nato territory, they are not going to get away with that, thats on the one hand. Wails in september, in the summit, some really good progress. We need to implement those, but in addition to that, nato needs to put pressure on russia. Putin has tried to show that note toe is basically ineffective, so how does nato show that it is effective, and one thing i know you thought about, is military exercises, is that something that is realistic for nato. That is on a permanent bases on troops. In latvia, in poland, but in addition to that, we also have to see European Countries. A really transatlantic effort, really coming together and reassuring those allies that are feeling vulnerable. All of these will be coming together, many of them, very soon, do you think that in terms of the time line of when we will see actual action, over there, that it is going to be soon i am hopeful thatly continue to do so, if they do see more of that, especially given the deteriorating security situation not just in ukraine, but throughout europe at large, increasing incidents of russian airplanes flying into nato territory, and other countries, i think there is a need to have a tougher and a stronger response to some of these actions, not only to assure allies but to deter russia. Thank you so much. Back in this country, republicans have moved quickly to challenge democrats, today the house of representatives approved a bill, approving the keystone x. L. Oil pipeline. Now for six years president obama has held up approval, in part because of opposition from environmentalists. Todays legislation directs the president to approve the 8 billion project, now the bill moves to the senate, where it is up for a vote next week, if it passes and at this point, it is not clear if it will, president obama threatens to veto it. Well, up next, if you want to start your own country, you will need a currency, so now isil says it wants to mint its own money, what it can be worth when we come back. November 27th. Were following stories of people who have died in the desert. The borderland thanksgiving day marathon. No ones prepared for this journey. Experience al jazeera americas critically acclaimed, original series from the begining. Experiencing it has changed me completely. Follow the journey as six americans face the immigration debate up close and personal. Its heartbreaking. Im the enemy. Im really pissed off. All these people shouldnt be dead. Its insane. The borderland thanksgiving day marathon starts november 27th, 9 00 eastern. On al jazeera america. One of the stunning aspects of isil, is the amount of money it has. It has raised huge. As of cash from plaque market oil sales, kid p thattings and extortion. An exclusive look inside isil and found that at its core, that has inspired so much fear is surprisedly corporate. Down a bumpy road just a few feet from the Syrian Border we set out in search of isils source of income, our guide, a 22yearold female smuggler, her tools jerry cans earmarks for gas. In a Discreet Hotel room, we see how isil recrowd. Our recruiter is an i. T. Expert, his tool keyboard and mouse. On the river in istanbul, over cups of tea, we learn how isil is organized, exmerits a syrian once employed as a syrian sales man, three people all of whom den maaed anonymity, show how the management, organization, and wealth are all depend on foot soldiers whose main motivation was income. They work for a selfdeclared state that might claim to fly the flag of islam, but at its hard is corporate. Inside syrian and iraq, ice salt lake controls dozens of oil fields. The gas is then smuggled into turkey. Soldiers how it is pumped under underground pipes or they move it across the river in jerry cans. It is then transported in vans or in secret gas tanks inside of buss. Your income depends on how much gas you bring, if you bring a ton, you make 400, 900. If you bring ten tons you make 10,000dollar as night. The hotel room, over half a pack of cigarettes, a 27yearold who wants to be known as salm revealed isils social media. He and three others would spend days online, they painted isil as a paez popular and prosperous army. They disparaged syrian fighter whose oppose them as incompetent. I am thinking i am in a dream world. The foreign fighter whose already joined gave us their friends contact, media is the most important thing to attract foreign fighters. And create popularity. And try and create popularity that spans generations. Isil calls them its cubs their hans not large enough to problemmerly hold assault rifles, their minds not old enough to resist propaganda. A man who wants to be known as omar saw those children up close, he used to work for isil in the headquarters. What they work on most is recruiting children, and children are brainwashed at a young age, they become strong wills and believe they will find redemption when they are martyr. Com. In connecting every aspect the groups ruthlessness. They value spilling blood. Through fear, through promises of profits isil fills the state with people that might otherwise fight it, and today isil controls an area the size of belgium, the population is equivalent to new york city, and officials warn the war to remove isil will take years. Al jazeera, turkey. Get this, we learned this week that the leader wants the organization to create its own currency. Mented gold, silver and copper coins that will be called islamic denards. Lets talk oa man who has helped accomplish currencies across the globe. He has assisted in currencies in argentine yeah, astoria, and ecuador. Where he is a professor of applied economics. So, professor, you were involved with these countries when they were launching new currentsies whats the different here, since isil is not exactly recognized as a state. Thats an obvious point. States in this day and age produce money, and isil is not a recognized state. But thats their whole purpose, or rather sophisticated politically. And they want to give all the trappings of become a state. And therefore, they want to produce money and in the send of gold and silver for example, a gold is already in effect kind of de facto in international community. So they have the right object shall we say. In mind, in looking at gold. So lets talk about gold, because they also say they want to get out from under the financial market, they dont want to be part of the International Financial system, but what is traded more than goal is . Well, very little except the u. S. Dollar, and even the price of gold is somewhat related to the u. S. Dollar when the u. S. Dollar is strong, as it is right now, gold tends to be rather weak. Which gold is weak now. So theres no way that gold can somehow be disentangled or a money with units of money and gold would be disentangled from the International Financial system. Its just an impocket. You have been involved with other currencies with this one, what would be an isil favor in launching this . What will be hard for them to overcome . Well, their whole point, again, is to have the symbolism of a state or a legitimate operation, so thats what is in it for them there are great difficulties of course, we dont know how they are going to acquire the gold, and silver, and to some extent if they are copper coins too. So thats point number one. They will have to find the mint someplace to mint these so thats the second problem, and then the third problem will be just to get people to actually accept and use these which in the areas they control, probably wont be a very big problem. So overall it seems that it is largely symbolic, but if they can secure the metals if they can get them in, is this something you can see working in the area that they control . No question about it. Because goal is already a medium of exchange that is widely used, widely traded. All over the world. All kinds of buyers and sellers. All kinds of religions. Every Geographic Area in the world, so what you are doing is take an goal andmenting it and putting your brand name on it. But as far as the purchasing power of the weight of the unit, in gold, will be concerned, that purchasing power will be the same whether it has brand a or b. Interesting. All right, the co director at the institute for applied economics at john hopkins university, thank you so much. And next big test of obamacare starts in hours we will see the challenges ahead with open enrollment set to begin plus, what could be the end of chocolate, we will explain. Hoar we go again. The second open Enrollment Period for obamacare launches again. The website was abyssesser at first, but after it was fixed about 7 Million People signed up. This time around the administration expects fewer than 10 Million People now so far this year, there has been a lot less hype, thats just fine with the Obama Administration he is a professor of health management, and a frequent guest on real money, and he joins me now, welcome back. Your would think they might be disappointed not to have the celebrities out there talking about open enrollment, i think if things start out well, open enrollment starts tomorrow, if thing goss well, you will see a blitz of coverage i think the idea is lets see how things go well if it goals well lets push hard. Dy they learn a lot last year. I think they have learn add lot number one, the website we will see, be uh the website by all accounts is much better. Both federal and state exchanges so i think they are feeling confident the website will work. They have some experience. We have 7 Million People now who are ininsurance through these who have received notices saying you have to renew. They are expecting most if not all to renew. And the goal is lets try to sign those up too. That is the trick, how to get to those people, how will they do that . How does success look like from those people. Well, it is interesting the Budget Office estimated about 13 million would be enrolled in the 2015, and then Obama Administration says maybe 9 1 2, maybe ten, i think if they get to 13 they will declare success. Open enrollment runs from november 15th to february 15th, but if you want to have coverage you have to sign up by december 15th. Theres going to be a big push. You will see the celebrities. They are going to come, you will see it. So basically you are saying the system is working then we will start to get that big push. Thats right. And there is a penalty for not having insurance, and that goes up as well. Do you think that will make a difference. First year the penalty was 90 on 1 of your income, this year it is up to 300 went 5 or 2 of your income, so it is a bigger stick theres going to be a combination of the stick in the carrot. We will encouraging you to sign up, last year there were 76 screens you had to go through on the federal website, this year, 16. Much simpler, much easier, all right, sign up, you will get some benefits theres more health plans than there were last year. More competition, premiums reasonable. One thing in year, we have just had midterm elections a lot of noise coming out of congress, and we also have some Supreme Court action on the calendar. How do you think all of that impacts people and also the goals that the administration is setting . Relatively few people i think are following what is happening in the Supreme Court, but it could have an enormous effect on the act there are 37 states in which they get it through the federal exchange. The street could hold, i dont expect they will, but they could hold they will be not be eligible for federal subsidies. So that is a major major thing to follow down the road, right now we just have to see what happens with open enrollment, thank you. Thank you so much. Well, an amazing come back for microsoft. Its stock has been on a tear this year, repelling the tech firm past exon mobile to become the second most valuable company. His efforts have fueled a stock surge that drove microsoft total market value above 410 billion. That leapfrog exon vallecula has been dinged by the drop in oil prices. In case you are wondering apple is currently the worlds most valuable company by a pretty wide margin. Well, up next, destination los angeles, i will tell you why Chinese Tourists are flocking to to buy things they could buy at home. Thats next. More than a million chinese are planning to visit the United States in the coming months. At least half of them will head to los angeles. Shopping at exclusive stores and top tier outlet malls. It turns out china is californias number one market. And that tourists come ready to spend. Jennifer london joins us from los angeles with the story. Jennifer. Well, jennifer, Los Angeles County has the largest chinese population in the country. And the largest number of Chinese Students so perhaps it stanes to reason, that Chinese Tourists are coming to Southern California in record numbers. The world famous hollywood sin, the santa monica peer, must see places for most tourists visiting los angeles. But Chinese Tourists arent like most, the Single Largest Group visits Southern California shore, have little interest in going there, instead, they are coming here. Coupons. To the outlet malls. I met jerry while his wife was hunting for bran name bargains. I spend most of my time shopping with my wife. Outlet malls like these shops are so popular, they are welcome back and a red carpet awaiting their arrival. Theres a v. I. P. Room, and a currency exchange. Signs and maps are in mandrin. The, maaing director says the stores are china ready. China ready what does that mean. Well, they have been trained on the chinese custom. How to say basic customs. Most have hired chinese substitutes. And they expect union pay, and our whole Shopping Center is just china friendly. And china ready. In fact, much of l. A. Is also china ready, the Hilton Los Angeles serve add chinese style breakfast, masseys also accepts chinas union pay car, and Universal Studios offed their back lot tour in mandrin. Catering to tourists has never been more critical, a report from the Los Angeles Economic Development Corporation finds tourism from china nearly yeah controlled from 158,000 in 2009, to 570,000 visitors in 2013. The surge is fueled in part by chinas emerging middle class. 400 million strong and growing and the newly affluent chinese want to travel and spend money shopping. Why not come here . They like going out to see the world, to buy things. The irony is that much of what the Chinese Tourists are buying here in los angeles is made in you getted it, china. But it is significantly cheap tore purchase it here by as much as 50 . They are looking for authentic purchases in designer labels that represents that western experience because thats what they are connecting to more than anything, this culture that we have in california. Chinese tourists in Southern California buying into and bringing home, a piece of the american lifestyle with luxury goods made in their own backyard. Some have describes Chinese Tourists as walking stimulus packages. In 20 think teen, Chinese Tourists proud almost 2 billion into californias economy, and la gets a majority of that pie, general, according to visit california the share of that market, is 70 . Wow. That is a pretty big number there do you expect that to continue . How difficult is it for chinese citizens to come over and visit the u. S. . Well, they expect the number of visitors to double in the coming years. Part of that might be because of the easing restrictions on travel, and just this week, during president obamas trade mission to china, he announced plans to extend chinese tourist visas to ten years. So clearly, that makes coming to america, coming to california Southern California, that much more attractive and certainly that much easier. All right, jennifer london for us tonight, thank you so much. Well, the Chinese Consumer makes up a third of all luxury sales while thats a figure that Luxury Brands expect to grow, the consumeser changing in ways you may not expect, Chinese Consumers are becoming more like american shoppers. Author of the bring dynasty, why the reign of the Chinese Shoppers has only just begun. Where he focused on Consumer Behavior and retail, we get him here tonight you saw jaw jennifers piece, why are Chinese Shoppers doing so much of their shopping in the United States, and not in china. Theres several reasons. The first one mentioned is affordability. If you are purchasing luxury goods abroad there are import duty, theres a consumption tax, whether its tobacco, high end watchesth. So all stacks up it is cheaper. What else is at play . Theres something else, right . It is a question of validation if you are buying a tiffany product in new york, it is a validation process, because it is part of fitting in, it is a part of displaying social status, if you have been buying abroad, it is more of a validation point. The other element is you know really links to this will to again, discover other parts oif world, and i think regulation has massively evolved. The penetration rate for passports with chinese nationals is only 4 . And if you think about american citizen who is are not necessarily known for being big travelers it is already 70 . So regulation easing has made it easier for chineseble thats to come here. So what do you mean when you say that Chinese Consumers are becoming more american . What does that mean . What kind of shoppers are we, i guess . I guess the image of the American Consumer has been very much driven by value for money we like a good deal. And getting a deal, and also you had a bit of a guilt factor following 9 11, and the niemann crisis and collapse. So consumers being a bit weary and how they display social status. They wanted brands and almost at any price, but now that the Chinese Consumer is all over blogs and forums. They know what they should be paying. So they are a lot more value for money. I love it, we are exporting our need for a deal. How else is this consumer changes . One thing that i thought was interesting in your book, the Luxury Consumer was really male before, but that has changed why is that change. I this i the history of the development of the luxury market has been linked to men, Corporate Gifting and catching thats how it opened. I think what is happening today, you are shifting from Corporate Gifting to personal consumption, to personal gifting impulse purchasingth. Receive that shift from a male focus to more of a female driven market has also been accelerated by the graft or Anticorruption Campaign that started about two years ago. So in china you have this focus towards more female driven consumption. Interesting one other thing you talked about is they are just like empty show rooms but thats okay if they buy here. Yeah, i think theres a disconnect between where you invest and where you reap the benefits. So it is true theres a concept of show rooming with you will have a pretty good First Impression of a brand but eventually you will go and buy in milan, in californiath but the idea is the representation needs to be good at home, because when you travel abroad, then if you are exposed to those again you recognize them. Okay if it is empty as long as you buy somewhere else, the book is the bring dynasty. Thank you for having me. Virgin america took off on its first day of trading. The company pick as good time to go public, after years of turbulence airline hit a 13 high this week thanks in langer part to lower oil prices. Virgin america took the the skies in 2007 just before the financial crisis it earns its First Property in 2013. Well, the world is running out of chocolate. Yes, you hear what i said the end of chocolate is near, when will it happen, about january 1st 2020. And the Worlds Largest choke late maker, the two predict by 2020 the gap between the Global Demand for chocolate and how much can actually be produced will have grown to 1 million tons. And thanks to human diseases like ebola, plant diseases like frosty pod, and cro and crp displacement, that gap will grow an extra 1 million tons each decade. Now this all comes as consumption of cocoa is on the rise, prices are pretty good indicator, dropping 87 , but there is a glimmer of hope scientists are working to modify and Development Trees in south america, the only brock getting them to be as tasty as what we have all come to know and love. The middle class has been getting squeezed when it comes to housing the most and least ard toble cities in america to own a home. Of the update of a family we have been tracking throughout the year. Tonight we hear from the williams family. Stephanie landed a higher paying jock mentoring schoolteachers. Into a chicago duplex rental, they like the lower transportation costs and subsidized programs for the kids, but they are also discovering some unexpected down sides. Now, the not so nice part of the city. You might think that is follow the rules oof the road, but they have cameras, speed light cameras. I didnt get a ticket, i just had a warning in the mail. Just even parking on the street. We werent aware of it, and i am not as bad as i used to be, but i got six tickets in a two week span. 600. Was would spend time talking on the way to work. The taxes are higher. When we went Grocery Shopping i had to ask the cash show, what is the extra 7 for, and he said the county tax, which is so much higher, i am not used to that, because we were on the border of indiana where there was basically no tax on food. And we didnt have that exthat cost one thing we are talking about doing, is going over into indiana, do our Grocery Shopping come on back. The food bill will always be there. Theres four children, the two of us, and its still a stressful situation, when you think about it. Do everything we need to with that, but i feel better at the end of the day. I am happy. They still havent decided what to do with their suburban home which is under water. Chicago where the family is now living ranks about in middle for home ownership. The managing editor joins us from chicago to reveal where the most and the least ard toble areas are in the country for homeowners. So, mike, why is it so hard right now if you are just right in the middle, of the middle class to buy a house . Well, the problem has been over the past several decades, that home prices have been going up faster than income. And when you have home prices going up faster than incomens, you can worry about things like insurance, and property values, but thats really the driving factor and what we saw this year, in the 25 largest cities is that home prices didnt go up as fast, they only went up about 6 on average. But incomes only rose about 2 . It is making houses less affordable. Lets get to the renting. What is the least ard toble areas right now . Without question San Francisco the the least affordable city in the country. It has an above average Median Income, but the median cost of a house there is 760,000 that is just well, that is just even someone who is in new york, can can save 760,000dollars is the median price and go oh my gosh. I have had people tell me from San Francisco that they have to spend as much as 70 of their income on housing costs. And when you have to do that, boy, talk about house poor. 22 most affordable are minneapolis saint paul, and atlanta. And there a Median Income family, can rather easily, afford a Median Income a median cost house. Without spending say more than 29, 30 of their income on housing. And that then leaves this emwith more money to spend on other things including, for example, investing in themselves by putting money into their 401 k. A lot of this as you said is wage stagnation, wages are not going up, what do you expect for 2015 in terms of what we may be seeing for housing . Do you think this gets worse or is there a chance it gets better . I think the housing prices after having a big spike last couple of years because we are coming out of the recession, and bouncing off the bottom for housing prices we are seeing a flattening out but i dont think they will flatten out enough for income increasing of two or 3 to catch up to them so i think we will see sort of what we saw through a lot of the 80s and the 90s, which is homes become less affordable, little by little. Ten years from now, we will look back and a lot more cities will be getting des and fs. We will have to have you back in ten years, really enjoyed that and now we know where to move everybody. Thank you so much again. Bye. Youre welcome. Well, new numbers out this week, show the richest americans are taking a bigger slice of the collective income pie than in the past years. But they are also contributing a bigger share of tax revenues to the federal government than they did before. The congressional Budget Office and federal taxes is chalk full of numbers. So let me give you a few. The it also found that americas super wealthy earned almost 15 of all income that year. Thats a jump of almost 6 points since 1979. Almost 10 points more than they did in 1979. So for all the talk about the rich, these new figures show they are paying more to him than they once did. Thats our show for tonight, in for ali valshi, thank you for joining us and have a great weekend. Hello, everybody. And this is aljazeera america. Im David Schuster in new york, and John Seigenthaler is off. Oil futures, the republicanled house has approved the keystone pipeline. Will it be