a top afghan official who leaked information to insurgents has been arrested in kabul. those are today's top stories. thanks for watching state of the union. i'm gloria borger in washington. for the latest, tune in to cnn tonight at 9:00 eastern for a special report "countdown to debt crisis." we'll be breaking down the latest in the negotiations and what impact they will have on you. that's tonight at 9:00 eastern only on cnn. and up next for our viewers here in the united states, "fareed zakaria gps." -- captions by vitac -- www.vitac.com this is "gps." welcome to our viewers in the united states and around the world. i'm fareed zakaria. we have a very important show for you this week bringing you two people who you're surely going to want to meet. first up, a unique perspective on the economy, global competition, the future of jobs

and the role of government. dan akerson, the ceo of general motors, the largest consider manufacturer in the world back from bankruptcy with a bang. then the new head of the imf, france's former finance minister christine lagarde on the fate of america, greece, the euro and more. also the knight's tell particular. why in the world is an 800-year-old religious organization being cited by murderers on at least two continents? finally, what is this green blob attacking china? first here is my take. i know you heard so much about the debt ceiling that you're probably exhausted. i think it's important to point out a few facts because this matter has been so clouded by rhetoric. did you know there is only one other country in the world that even has a debt ceiling? that's denmark. it's a strange anomaly because its debt ceiling is deliberately

kept very high so it will never need to be raised. why does no one else have a debt ceiling? because when a legislature votes to authorize spending at a certain level, but authorizes tax revenues at a lower level, it is assumed the government will have to borrow the difference. the vote to have higher expenditures than tax revenues is in effect a vote to borrow money to cover the difference. in the juntd states congress, including republicans, voted for a budget in which expenditures exceeded tax revenues. so the logical consequence of that budget again passed by the house republicans and by democrats is that the government has to make up the difference by borrowing. to come at it now after the budget has been passed is like getting your visa bill and then calling up the company to say, actually, we don't want to buy all that stuff we bought. that's not how it works.

first you pay the bill, then you can change your spending about. so why do we have a debt ceiling anyway? ironically it was put in place during world war i so congress didn't have to authorize every new issue of debt. it was assumed it would be a formality to raise it. since 1960 the debt ceiling has been raised 78 times. my basic point is that this is a crisis we have manufactured out of whole cloth. we have created the circumstances in which the world now doubts our credibility, rating agencies are thinking of downgrading our debt, and the dollar's role as the world's rv currency could be jeopardized. please understand that none of these things are happening because the united states is running deficits. there was no indication by any measure that the united states was having difficulty borrowing money one month ago. in fact, the world has been lending money to the united states more cheaply than ever before.

we face down grades and uncertainly and investor panic not because of our deficits, but because we are behaving like debt beats, refusing to pay our bills, pouting while the bill collector waits at the door. we do have a large deficit and a large debt and we do need to get it under control. the fact that the tea party has raised awareness of this issue is admirable. i actually happen to agree with their view that the current set of entitlements, medicare especially, have to be reformed dramatically to get our fiscal house in order. but that is not an excuse to endanger the good standing of the united states. first you pay the bills and then you figure out how to change your spending habits. the tragedy is that the damage may already have been done. from now on, every time the debt ceiling needs to be raised, the world will wonder will the united states stand by its promises, or will it break them? something that was taken for granted, the credibility of the

united states is now surrounded by uncertainty. global markets have always had confidence in america. that confidence has been shaken, perhaps forever. and for this erosion, we have only ourselves to blame. let's get started. two years and two months ago one of the most store read american companies filed for bankruptcy protection. in its 100-year history, general motors had once made one out of every two cars sold in the united states. it had once been the most profitable company in the world. but in 2009 general motors lost $4.2 billion in a single quarter, and only one out of five cars in america were made by the company. today, general motors is making

billion dollar profits again, and it is this year going to be the world's top automaker again. we the taxpayers own about a third of it. what does the future look like for general motors and america? dan akerson is chairman and ceo of general motors. welcome. >> thank you. when i ask businessmen why they're not hiring more and you're sirting on lots of cash, one of the things they always say is uncertainty. uncertainty probably affects you more than anyone else, this consumer demand, if you could get back up to 15 million cars, it would make a big difference. does this incredible month or two of rangeling in washington and the sense we can't get our house in order and we're so divided, do you think this hurts in a measurable way? >> well, you're right. nature abhors a vacuum and markets abhor uncertainty. uncertainty undermines consumer

confidence. consumer spending in our country accounts for about 65% to 70 pushes of the gdp. when consumers lose confidence, they hesitate, not as xwul lish, not spending money. it does have an impact on the economy. but there are all sorts of uncertainties youchlt name one. the oil spikes earlier in this year. we got off to a pretty good start in 2011. then oil spiked above $100 a barrel. that particularly concerned our industry. then there was the tragic earthquake and tsunami in japan. that threw a lot of uncertainty into our industry. so there are all sorts of uncertainty. that's what we get paid to do, is to manage through that. it keeps me awake at night. >> the world you're describing is one where a lot of these uncertainties are beyond anyone's ability to fix. you can ameliorate them a little bit. do you think we're living in a

kind of age of uncertainty? >> i do. some of it is stefl-inflicted. if it were a perfect world, i'd like to see the united states not default, technical or otherwise, because i think that throws another level of uncertainty and instability into the system. i've thought long and hard and so has most of our management team and a lot smarter people than we are, about what are the implications? what are the downstream impacts of a default? well, i'm responsible for general motors, and i would hate to have the job of one of the policymakers in washington these days. but i can focus and impact on what we're doing at general motors. we have about $35 billion to $40 billion of cash in our balance sheet. that's a lot. but i don't know what's going to happen. >> what would you do if there were a default?

now, six months from now, a year from now? >> well, as you know, u.s. treasuries are the, quote, unquote, gold standard. if we default, the cost of treasury will go up and all other, whether they be mortgage rates or car loan rates would go up. that would create an issue or concern for us. at some level we just may have to kind of baton down the hatches and get through a tough storm. that wouldn't be good for general motors and i don't think it would be good for our customers or for our country. >> the question everyone wants to know is -- and the tea party, as you know, is animated in part by this concern. should the united states government have bailed general motors out? >> yes. simply put, yes. let me explain why.

when you look at the helping hand, if you will, the bailout wasn't just for general motors specifically, but basically an industry. general motors was so dominant, especially in the united states, had chrysler and gm gone down, the supply chain would have cratered and it would have unimaginable impacts throughout the economy. it's estimated there were a million jobs saved in the extended automotive industry, bios fear, if you will. if are we doing on that promise today? we're profitable, very profitable. we have saved not only that million jobs in the intervening period since the restructuring awful general motors and chrysler, we've hired 115,000 auto workers across the nation. so it saved an industry that is profitable today, healthy today. it's creating jobs and it saved

jobs. we've paid back roughly $30 billion plus of the $50 billion that was put in the company. as you say, the taxpayers still own a third. >> a lot of people say the government shouldn't be doing this kind of thing. i was at a speech one day and some guy comes up to me -- i said something about how i supported the rescue effort. he said it's government motors. this is not what the government should be doing. how do you respond to that? i say this because i know you, dan, and you were in the naif vays, oversee a tech company, you're kind of a republican-leaning guy i would say. >> that's probably fair. well, there are certainly different points of view around the table. but to the credit of the government, they invested and stood back and said run it like a corporation. they've never been in the board room. they've never involved themselves in any operational

decisions. so the progress and the success of the company has been in the context of a competitive company that's owned now -- we had the largest ipo in the history of the world which we're very proud of, is the government is an owner. they're a minority owner. we're making great progress. and i think a company like general motors is important in way that is are unimaginable to the industry infrastructure of this country which is something that's not to be dismissed easily. >> do you think this is something that is an inevitable emergency role the government has to play. >> there have been cyclical instances over the last 20 or 30 years. we had the brady bonds, basically bail out sovereign debt around the world when commodity prices got ahead and then collapsed, and secretary brady came to the fore.

had the resolution trust crisis during the s&n crisis. both passed, basically saved industries, if you will. i think this is the same analogous situation. at some point in time the government -- in fact, they're out of chrysler now, and over time i believe they'll come out of general motors as well. >> what do you think of the obama administration in terms of the way it structured the bailout, the conversations, discusses around it. you were on the board then, not ceo. >> i came on the board following the bankruptcy at the request of the invitation of the administration. i think the restructuring was done by, quite frankly, a bunch of private equity folks who are, i would say, expert in turn-arounds and restructurings. it was done pretty well and the prooch has been in the subsequent two years. like i said, a very successful

ipo, payback of the majority of the money fronted by both the canadian and the player khan governments, and the fact that we're creating profits today, good cash flow. we're hiring people. we're designing cars that are some of the best in the world. we're building them and selling them not only in the united states -- and that's important to mention for general motors. we're a very successful competitor in the united states, we also have the leading market share in the bric countries, brazil, russia, klein nah and germany. that money comes back to the united states. we're moving on all fronts, a lot of strength in the company, a lot of energy. very proud of the progress we've made. >> we'll come right back with dan akerson, the ceo of general motors. i'm going to ask why he, the ceo of general motors is actually in favor of a gas tax when we come back.

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we are back with dan akerson, the ceo of general motors. you caused some alarm or alarm bells to go off when you said something to the effect that the most efficient thing for the government to do if it wants to encourage us to kind of move to a new generation of cars, wean ourselves off imported oil would be to have a gas tax. tell us why you think that's a good idea. >> well, i think what we need more aptly is a pragmatic national energy policy that is market-based, and then we'll start to allocate resources more efficiently. we want to be part of the solution that helps us become less dependent on foreign oil, foreign imports. and so we've looked at a variety of technologies we're starting to deploy today. we have the volt which was not a

step forward, it was a leap forward in the electrification of the car. soon we'll be introducing bio fuel engines that can burn both compressed natural gas and liquid gasoline. we're looking at hydrogen fuel cells which have no carbon emissions, zero. they're very expensive now. but we've just in the last two years reduced the price of that technology by $100,000. the car is still too expensive and probably won't be practical till the 2020-plus period. i don't know. then there's the issue of infrastructure. there are a number of different ways to attack a goal, to address an ambition, aspiration. that aspiration should be a pragmatic national energy policy. and there are many variables, many options and alternatives. this was one of many, and it's not the only one.

>> what i notice right now though is given the japanese -- the tsunami and what it's done to the people's views of nuclear power, germany shutting down, switzerland shutting down, the reality is the world is more dependent on oil and natural gas perhaps than it has been for a while. >> uh-huh. >> can we really wean ourselves off petroleum? >> well, long term i do think we can. i think we ought to -- in this country, and i think it is region and country-specific. you have to look at what natural resources you have. i believe we -- we've been called the saudi arabia of natural gas. i've heard t. boone pickens speak about that specifically. so i do think we should utilize our own natural resources more so than foreign resources if you will for a lot of reasons that have benefit in the broader

economic context, balance of trade, dependence on maybe unreliable suppliers. >> when you look at the american economy, what we see is we're back to the gdp levels we were at before the crisis, but with ten million fewer people working. that's at some level a sign of great productivity, but for those ten million people it's a tragedy. how do you get jobs back? how do you get america to be employing people and in large numbers again? >> well, i think you have to look at innovation. great nations, and i believe we're the greatest nation on the face of the earth, we need to continue to invest in r&d and we are. you have to look at automation. we recently opened -- trying to build the first compact car in the united states. no one is trying to do that today. and in this new era of

productive industrial relations between management and union, i think all parties have learned great lessons over the last couple years. one of the things i've been add vo kating and i think is starting to get some traction is that we don't want to see our structural costs go up, that the union should be on a profit sharing regime wherein if management gets a bonus, union members get a bonus. if we do well, we all ought to share in it. auto! and innovation is critical. 20 years ago the cost of manufacturing a car, the cost of labor was roughly 20, 25%. today it's 10%. yes, there's fewer jobs, but they're more interesting, more challenging and we can afford to pay costs, but we can't see escalating costs as far as the eye can see. we need to see costs reasonably predictable, our fixed costs,

and the variable component is contingent upon our success in the marketplace. >> dan akerson, pleasure to have you on. >> thank you. >> and we will be right back. i love that my daughter's part fish.

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now for our "what in the world" segment. what exactly is the knight's tell particular? the group has come to everyone's attention because of anders breivek's killing spree in norway about a week ago. he claimed in his rambling manifesto to represent a modern day knight's tell particular, but who are they? the name might ring a bell, especially if you've seen ""the davinci code"." >> and their military arm, the knight's templar. >> or "national treasure." >> they brought the treasure back to europe and took the name, the knight's templar. >> these are, of course, all fictional. what are the facts? the knight's tell particular was a christian military ordered

founded. they quoer distinctive white mantles with a red cross. they made their reputation by winning a series of battles. their first headquarters were in a mosque in jerusalem because they believed to be built on the top of the ruins of solomon's temple. the knight's main job was said to be protecting christian pilgrims from muslims amongst others. to this day the site of the mosque and temple mount remain one of the most heavily disputed places on orth. the order of the knight's temlar was dissolved but the legacy lives on. rumors swirl that they still exist, but in seek' and guard the holy grail. what sounds like fiction back to fact, we saw breivek saw himself as a knight's templar.

get this, a new drug gang has recently arisen in mexico. they call themselves the knight's templar and claim to live which a religious code, a copy of which the associated press recently obtained. it says the drug dealing knights will defend against materialism, injustice and tyranny and hits members will be honorable, noble, courteous and honest. they are selling cocaine or whatever in the name of god. anders breivek's fascination with the knight is less bizarre, part of a larger movement. people like breivek are trying to resurrect the idea of a modern day crew said, a real clash of civilizations against what they see as an islamic invasion of europe. in fact, muslims make up only 3% of europe's pop lakes and that's likely to rise to between 5% and 8% by 2025 and level out at that

point. but that doesn't change the reality of the anger, hey red and violence. ironically in breivek's nostalgic view of the medieval world, knight's templar represents nothing more than al qaeda, another terrorist organization that is fundamentally opposed to the modern world. we still don't know if breivek's boasts that there are more lone knights waiting to act like him is true, but if his depiction of the knight on a holy mission sounds familiar, it is because it, too, is mirrored in islamist terror. that's exactly what a suicide bomber is, a lone sfiter often acting in the so-called interest of a larger movement and willing to kill innocence to draw attention to the cause. while we've all focused on the dangers of radical islam and islamist terror, the attack in norway should remind us there is actually a pretty large problem with other sources of terrorism

in the west. the european union's 2010 terrorism situation and trend report had some fascinating findings. it showed of the 294 terror attacks committed in europe in 2009, only one was conducteded by islamists. that's a third of one percent. the most recent statistics show there were 249 terror attacks in europe in 2010. only three of those attacks were carried out by islamist terrors, again about one percent. most of the attacks in 2009 and 2010 were by separatist groups or anarchists. perhaps that's what we can learn from the events in norway. islamic radicalism is a real problem and islamic terrorism a real threat. but if we ignore other kinds of threats, we're lifkly to be blind-sided by another gab gi

giffords shooting or virginia tech massacre. the enemy can just as easily come from deep within. and we'll be right back. you're quite right, fareed, in saying that there are a positive bias towards the united states of america, towards treasury bills. that was the case historically. i mean it was unheard of only six months ago to imagine that the united states could be on a negative watch by the rating agencies. ♪ you makes me happy ♪ when skies are grey ♪ you'll never know, dear ♪ how much i love you ♪ please don't take my sunshine away ♪ [ male announcer ] as long as there are babies, they'll be chevy's to bring them home. ♪

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i'm gore yeah borger. here are today's top stories. earlier this hour senate republican leader mitch mcconnell told us negotiators are very close to a deal to raise the debt limit and avoid default. mcconnell said the deal would call for $3 trillion in spending cuts. he said the debt limit would be raised in two stages with some sort of mechanism to increase the ceiling again next year. senator chuck schumer grants they're making progress but says there's no deal until everything is agreed on. and the president's chief economist says the white house does not expect additional revenues in the next year and a half. the attorney for the two american hikers detained in iran says a verdict should be issued within a week. josh fattal and shane bauer were arrested two years ago while hiking near the country's border with iraq, accused of entering

the country illegally and spying. those are your top stories. now back to "fareed zakaria gps." christine lagarde, thank you so much for joining us. >> my pleasure, fareed. >> the imf just released a report in which it said that a crisis of confidence in the solvency of the u.s. government could cause a crunching global recession. how worried are you right now? >> i am worried because this debt ceiling issue has not been cracked. the issue is being addressed from multiple angles, but the debt ceiling is still on the table, and the united states is the largest economy in the world, one that matters, one that has spillover effects, not just around the borders but on a complete basis globally.

it's an issue that really is lurking in the background of each and every economy of the world. >> how do you think the world is watching the united states right now? >> i think the world is watching the united states with trepidation, with anxiety, with concern, but also with hope because the united states of america is an extraordinary nation. it's an extraordinary democracy and one that, you know, doesn't necessarily travel with a straight line policy all the time. but there is hope that this issue will be addressed responsibly and with accountability not only to the people of the united states but also to the people of the world. instability is never a good idea, never a good idea. and this level of uncertainty, the trepidation arising from august 2nd is bringing about a lot of instability. >> do you think that the dangers

that people speak of could happen anyway, that is, watching this process, markets might lose that kind of unshakeable confidence they had that u.s. treasury bills were the bedrock of the international financial system and that they were the cheapest debt -- the place where people went as a flight to safety? has all that already been jeopardized? is there a dang thaer is being undermined? >> you're quite right, fareed in saying there was a positive bias towards the united states of america, towards treasury bills. that was the case historically. the current crisis is probably chipping into that very positive bias. that very strong confidence that generally led to flight equality in investment in treasury bonds is slightly eroded at the

moment. it was unheard of only six months ago to imagine that the united states could be under negative watch by the rating agencies. >> does that mean that the dollars roll as the reserve currency of the world which provides the united states with enormous privileges, basically again, lowering its interest rates. is that also you think potentially in danger? >> it has been one of the assets of the united states of america, what former president of a european country called the exorbitant privilege of the u.s. dollar. that's what is at stake. i'm not suggesting that it is going to change overnight because those currency evolutions take a lot of time. if you observe the evolution of the sterling, for instance, at the time when the industrial revolution was over and europe had gone through massive wars, that took time, but gradually it's roaded.

>> and in 1945 one day suddenly it was over for the sterling and the dollar replaced it. >> yeah. >> if that were to happen, would it be the euro or the yuan that would replace it? >> no idea. as i said, those are long-term movements unless there are very, very harsh circumstances of the kind you referred to, the second world war. it happens over time. we need to make sure it does happen over time so there is the level of stability and not the excessive volatility that is not good for markets. >> you spoke in a speech at the council on foreign relations this week about the united states and its economic problems. you point out that the united states is going through a jobless recovery. in fact, you pointed out this is another jobless recovery because the last one most people don't realize, the one in the early 2000s was also a jobless

recovery. do you have a sense as to why america seems to have gotten onto this new model of the economy comes back, but the jobs don't? >> well, first of all, i did not say that it was going through a jobless recovery. i was saying that the recovery needs to add jobs to the economic equation of the united states of america. >> it's a more diplomatic way of saying it, but it's the same. >> no, no, no. i think you're right about the high tech and information technology and communication significant break through in the late '90s, early 2000, did not bring about so many jobs because there was a massive increase of productivity that was fueled as a result of these investments and the ability to move data around and to increase the velocity of the economic

factors. now we don't see that sort of technology called break through at the beginning of the century. so where is the growth going to come from? you've got multiple sectors where it could come from. but it requires confidence. it requires investment and it requires a focus on those areas that will be strategic going forward. >> you focus again and again on investment. but the u.s. is not investing right now. is that a danger to its future growth? >> failure to invest is clearly a danger to future growth. but confidence is the key. and for a private investor, for a entrepreneur or for local authorities to decide to invest, they have to have confidence in the future. clearly the issue of the sovereign debt of the united states has to be addressed in a sinceable way for the long term and fiscal consolidation needs to take place. it's a complicated balancing act because it's a combination of, number one, taking the appropriate fiscal consolidation

measures and, on the other hand, making sure that the components necessary for growth are preserved. >> you've worked with secretary geithner, do you have confidence that he will be able to handle this debt crisis? >> i have every confidence that he's going to put all his energy and he's not short of that, and all his determination, he's not short of that either, to try to resolve the issue. i think he's fully aware of the implications and the necessity to do so. i really -- i wish him the best of luck and courage. >> and we will be back with christine lagarde. we're going to talk about europe and what the next possible crisis in the eurozone will be when we come back.

we are back with christine lagarde, the new head of the international monetary fund to talk about economic crisis. it actually has implications for the united states. the strategy that was adopted for the last few years has been that country that is have these huge debt and deficit problems,

need to consolidate their balance sheets, need to in effect raise taxes and cut spending so they close their budget deficits. but the result of this in almost every country has been that the economy has suffered, has taken a hit because you are taking money out of the economy or the government isn't spending, it means there's less economic activity. if the government fires government workers, well, those people don't go out and buy things. is it possible that the imf -- the received economic wisdom on this issue simply has it wrong, that at a moment where you have deflationary circumstances or liquidity crisis, whatever jargon you want to use in somewhat unusual, depressed economic circumstance, you should not be forcing these countries to cut, cut, cut? >> there is the short term and there is the long term. unfortunately you have to start somewhere. in the medium and long term

there is no question that fiscal consolidation, reduction of deficit, restoring the debt pattern to something that is sensible and not outrageously high, actually is positive for the economy. in the immediate short term -- and i'm not hiding behind numbers -- there is a downside effect. but it's a measure that has to be taken. it's a question of doing it gradually, making sure that the less privileged, the most exposed people are not taking a big hit, are not suffering most. but if you don't begin somewhere, you never consolidate. so that's a balancing act. >> what you're describing sounds a lot like the obama plan in terms of a gradual process that doesn't hit people who are most exposed too hard? >> it has to be gradual. it has to be determined.

it has to be very strong political resolution, determination, drive to actually make it happen because countries cannot run with massive deficit. >> is there a kind of broader crisis here in europe -- particularly in europe but in the western world in general. if you look at the percentage of gdp that the government took up in a place like france in 1950, it was 30%. it's now 55% roughly. the share of government to gdp has grown so much in western countries as they have become more generous with their welfare states. these are wonderful social policies, but is there a problem here that ultimately you simply cannot grow at the rates that perhaps were historically true if u i don't have this large a role for government? >> well, there are things that used not to be expected which are expected today. whether you look at social

security, pension entitlements, expectations from the health system, and so on and so forth. all of that has a cost. the real question is, is it well-spent when it's under the management of the stated, of the local authorities, in the states or in the loekalities is at issue. there is clearly a need for those public authorities to not only stick to their knitting, but use public money wisely and efficiently. >> the imf has once again come out with a report saying the chinese currency is undervalued, somewhere between 3% and 23%. is it important that china step up to the plate and do something about this? >> fareed, it's a constant evolution. you refer to that exchange rate range. for the first time china has accepted that it be published, made public, communicated to the

rest of the world. this is a change, and we're all interlocked, and what happens in china will have an effect in the united states and vice versa. what happens in some of the low-income countries will have an effect on what happens in the advanced countries. china will always need to have good and solid clients. it is not an exporting country in the middle of nowhere. we depend on each other, all of us. >> owen kans gave a famous speech about the imf. he recommended the head of the imf have a coat of many colors to reflect the many parts of the world he or she was meant to represent. i look at you. you're wearing this very conservative gray. are you going to buy a new coat? >> that's because i came to new york. i have this sparkling and animated broach to indicate the colors. >> christine lagarde, pleasure

to have you on. >> thank you. >> and we will be back. but for some of us with overactive bladder, our pipes just don't work as well as they should. sometimes, i worry my pipes might leak. but i learned there's something more i can do. now, i take care with vesicare. once-daily vesicare can help control your bladder muscle and is proven to treat overactive bladder with symptoms of frequent urges and leaks day and night. if you have certain stomach or glaucoma problems, or trouble emptying your bladder, do not take vesicare. vesicare may cause allergic reactions that may be serious. if you experience swelling of the face, lips, throat or tongue, stop taking vesicare and get emergency help. tell your doctor right away if you have severe abdominal pain, or become constipated for three or more days. vesicare may cause blurred vision, so use caution while driving or doing unsafe tasks. common side effects are dry mouth, constipation, and indigestion. so why wait ? ask your doctor today... ... about taking care with vesicare.

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the united nations doesn't just host world leaders, send out peacekeepers in blue helmets

and feet the hungry. i bet you didn't know this, but it also keeps track of how many livestock walk the earth which brings me to the question of the week. according to the united nations, approximately how many chickens are there around the globe? is it a, 190 million, b1.9 billion. c, 19 billion or d 190 billion? stay tuned and we'll tell you the correct answer. make sure you go to cnn.com/gps for ten more challenging and interesting questions. while you're there, check out our website, the global public square. you'll find smart interviews and takes from some of my favorite experts and also find all our shows. if you've missed one, you can click and watch. don't forget you can follow us on twitter and facebook. this week's book of the week is the latest by nobel prize winning economist michael spence called "the next convergence."

it is a smart sensible look at the global economy from one of the best and most unbiased economists in the world. now for the last look, it isn't the latest hollywood block brus center, green blob attacks china is something that is actually happening as evidenced by this and this and this. disgusting, right? it's an algae bloom that has spread across 7,000 miles of the red sea. this is number one beach in ching dow once regarded as the best city in china. best beach? maybe not anymore. luckily for these seemingly unconcerned swim mefrs, it's not harmful to human ns but could kill off marine life. the correct answer to