was imminent. >> we are accusing the accuser i guess. the s&p how pressing it was or not regarding the other crisis. is this to be expected or should we dismiss s&p? >> s&p is doing a big favor. this is getting oust hand and this is what i look for. somebody to be a catalyst for action. what we saw in the last week was a sham. to increase the deficit two trillion . biggest voice spoke up in the last week that was the market. if they kept this trajectory you would see the market much much lower. i don't want to see all hell break loose. it is the best thing that could happen. short-term the markets will take a hit. we have to do something about

the long-term fiscal health. >> quickly, gary if we do not? >> market is going to be cut in half. we are going to get up to 20 trillion deficit and never pay that back. >> lizzie you agree. >> i don't think cut in half. treasury bond market is a rate of three percent . quickly canada went through it in '94 and fixed it and got triple a back by 19nen. >> it took three years. >> much mauler. and why it moved and controverses approximate since it moved and former economic advisor who said unemployment is closer to 20 percent and that was before the down. emily's just starting out... and on a budget.

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>> all right. the audis are down in the downgrade. only market open today. asia next .

in tokyo, they are on the phone with us now. what is the mood there, chester. what are traders doing there? >> i mean, there's obviously a great deal of unease and everyone is kind of waiting with bated brathe for the opening on tokyo. the news was a shock. late friday u.s. and early saturday japan time and so it is filtering through . i think there is obviously a great deal of concern. because japan has a lot invested in the u.s. treasuries and any downgrade may affect japan's decision to purchase more u.s. debt and more so the china. >> japan survived a downgrade in debt and lived to see another day. markets and all sort of limp along. but are they passive about this or will they think twice

about whether they would be a big buyer of u.s. debt. is that shopped around in >> i mean, officially japanese and government authorities are remaining committed to massive holdings was dollars . securities and will continue to buy. it is ironic, the japanese government intervened in the currency market to try to sell yen and get it cheaper. it is way over valued and so the idea they would be selling dollars would contradict their own policy. clearly, we have a case here where countries around the world that need to invest the surpluses, probably china more than others are going to take a thought. over the weekend, we have had commentary out of the beijing, they are looking to diversify the way they invest their money, away from the dollar and whatever. euro and gold and other

currencies away from the dollar. >> thank you, chester. it is crucial because of in terms was what happened in the last six months. japan is a bigger buyer of our debt. they go back and forth. japan and china are close to being the biggest buyers. we have an economy in this country that is not looking too great. a former advisor and candidate barack obama and what he makes of the stewardship of the job mess as president obama. >> interested in listening to the reporter from japan. i don't read much into what happened on the downgrade. the message on the downgrade we haven't fixed this economy in the eyes of a lot of pundits . they are s&p last night and market on thursday. there is only two and half

economies that matter. germany overnight is the banker for all of europe. overnight . they have had an agenda and a tough pull for those guys. we sit here, in this deep malaise and then china which is booming . i think what the markets in s&p and others are telling us, that the acts, these votes was monday and tuesday and the deficit were charade and frauds and by not having any revenue increases, we committed ourselves to a stagnant policy going forward. >> you would like tax. >> i argued for 50-50. i am more aggressive. >> you are just a hopeless liberal. >> i got to admit. >> you are very, very savvy businessman. >> how would you rate the president on the issues that

are near and dear to you . the job situation is worsening. >> to finish the point. we turned the spick on the off by no new revenues. >> job initiatives were stupid. >> they were less than stupid. some of the infrastructure. >> what bang for the bang did we. >> we don't have one. my problem with the president on tuesday from the rose garden he reminded us again that he's now pivoting toward jobs. don't say that over and over again and do nothing. jobs report was a great distress to me. on the surface looked okay, but you got to remember what happened yesterday, we had a poor estimate and we came in with results that were slightly less poor. seasonally adjusting, a lot of teachers were cut in the month

of july. >> it was a bad reportment >> it was horrible report . yet i fine no where with all to fix. >> coming up, not a stellar governor of new jersey. jon corsign. what do you think of that? >> it is a consequence of the speculation of the secretary geithner. i think he needs to move on i don't think he's going to. i think he is too close of a friend of the president and finds counsel with the president . what ever jon and others have to be a treasury secretary they need to plan otherwise. >> i will take it. >> and we have a lot more today. the guy behind the most talked about downgrade in decades is fox and only fox. after i love that my daughter's part fish.

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>> all right forget the whole debt grade situation. dennis said we have a serious problem in this country and if he had his druthers he would be spending on more to get those jobs. we'll have a congressman to join us. what would you do right now? >> we should be investing in america. if the feds can give money to the banks, the united states can create money and invest it in creating jobs. >> haven't we tried that, congressman. only a fraction of that went to creating infrastructure jobs. we need to invest in america and it would be good for business. we have three trillion in infrastructure needs. we need a new wpa.

>> i don't understand that, congressman. i know you are consistent. but i think you are wrong. we have tolls and fees and state surtaxes that were meant for highway construction and bridge construction and supposedly in a lock box for that purpose . we have had better than a dozen earmarks, pardon me for using that word. for construction . now we say another infrastructure program. congressman, we mede to stop people from coming up with initiatives. >> we need top 10 corporations to pay their taxesment wouldn't that be nice . stop off shore jobs and trade agreement to send millions was jobs. >> can you blame them, congressman. >> absolutely. i am for america, who are they for? >> they see little impous

seeing the shenagins . you are pushed if you want to expand to south carolina, a nonunion state. what is in their about to repatriot that money if they are penalize. >> repatriot. means, america first and respect the country that gave you your birth. we are seeing corporations taking our jobs out. where is there loyalty? we ought to make sure they pay their taxes. >> why are they responsibility for scaring us out of this country. they are chasing jobs over seas because of regulation says and taxes not across the board, but certainly enough they little reason to stay here. they want to bring that money home but spanked if they do. >> let's go into facts and talk about shared

responsibility. exxon mobile. 19 bill 81 in profits in 2009 paid no federal income taxs and received rebate. bank of america. tax refund from the i.r.s. . 4.4. exion did pay taxes. >> yeah, the workers . what about the corporation, neal. >> dennis, come on you know that businesses would be happy and in their selfish interest if they had an environment that was hospitable in this country. it isn't and you know it. >> pay taxes. and you talked about an atmosphere that was theatrical. you and i agreed. what makes any businessman or woman invest? >> we had a phony solution to a fake crisis. we have a problem with demand right now. we have to get america back to work. the idea of a deficit. 74 times in the 1962.

anywhere be running around and saying the sky is falling. it is falling because of all of this contouring. we have to get america back to work and avoid a double dip recession and we are headed to that unless we focus on jobs. >> dennis, kucinich, good to see you. >> and the white house, and standard and poors, we connect and you decide.

after seven decades you are going down and your triple a rating will be a thing of the past.

our white house guide with us now . the white house not happy with what s&p did. what can we look forward to or not in the next couple of dayings. >> we don't look forward for the president to come on camera. earlier michelle bachmann wanted the president to come back from camp david. the white house said no on camera statements. maybe he will put a writen statement and they were pushing back hard against s&p. they thought there was a mass error and s&p clearly decided to move forward because of a number of factors, not only the debt but the fact that you look inside of the report, they cited concerns washington not able to govern on big issues. not only at the white house, but congress and democrat and republican leaders up there . i think something else to look for in the days ahead, a

republican budget expert saying that there are other countries hit with a downgrade like canada, and australia and denmark, who ended up turning things around and had the downgrade changed you know months or years down the road. it will be a long road for the united states to turn it around and all eyes will turn to the super committee to see if they have a deadline or thanksgiving to come up with a plan and deadline of christmas to have an up or down vote on capitol hill. are they stepping up to the plate. both pears coming together. >> i wonder if the white house, we'll get the details tried to stop the&p they did. we are told led by the treasury department but the treasury wanted, was on the phone pushing back and saying

there were mass errors and s&p moved forward anyway. >> you are a huge help to all net woshes. ed henry . the man of the hour, don chambers who is head of the s&p rating committee. john, good to have you. you heard the attacks from the white house that your math was off and missed two trillion worth of debt savings. why did you do what you did? >> we lowered the rating on the united states government from double a plus from triple a. movated by the political grid lock in washington, which makes us think that it is difficult for elected officials to put the fiscal profile of the u.s. government on a long-term sustainable path and part of the fiscal path itself.

debt to gdp, the state and local and federal government and that of liquid assets 75 percent of the gdp . that will trend up over the next decade . unless we get additional fiscal measures than what we have on the table right now. >> so two trillion in rough cuts were not enough. four trillion would have been? >> if you get to four trillion figure which was mentioned by the president in the april 13th peach and paul ryan and the alternative budget, that if you have decent growth behind it would have done the trick. and your counter part at moodies were not inclined to make the move you did saying it was no need to downgrade. you differed why.

>> we all have our own criteria and ours is published for the world to see. takes five pillars. one fiscal and one political and one is monetary and one external and one economy . the two we think that have changed is the political settings, we don't think are as strong as some of the strongest sovereigns that we rate and the recent evidence was the debate over the u.s. debt ceiling and the u.s. coming within a day of having cash problems and the other is fiscal profile. debt is high and fiscal deficits are going to be high for sometime to come. >> dupersonally talk to someone to the white house. >> we talked to people in the administration from all 126 governments that we rate. >> what did they say? >> we usually don't comment directly on the conversations that we have with issuers. >> and they were upset at you

as you know and they said and others have piled on and said you were the not you personally but the agency that missed the melt down and awarded triple a rating to junk loan dealers and you are hardly in a position to judge a country. >> standard and poor's, if you count, the predecessor companies has been rating bonds since the 1920s. we have a long track record of over 100 years. sovereign ratings group in 1975 when the sovereign bond market in the u.s. took off. we have had no defaults in the single a or double a or triple a category. >> you knew the enormity of what you are doing. this was the united states and this is your counselry more to the point . i know you try not to separate. but did you know, personally

what you risk doing? >> we have a commit he that is an international committee and primary analyst is canadian and we take one set of the criteria and apply to all 126 countries . obviously the united states by far the largest economy in the world and it is an important decision. >> that didn't dissuade you. pardon me, but did anyone forcefully disagree to the point that you might regret or the firm reget doing so. >> the administration conducted itself with the ut most professionalism. >> did anyone in congress say the same? >> not, the only push back i have gotten in the regard is irate e-mails that i have gotten from individuals that i don't know. >> a outlook and could go down

more. >> six-24 time frame and the administration is looking for additional on top of the 2.1 and 2.4 agreement . budget. >> we could go down moor. >> it could go down more. >> a year from now, do you think we will? >> the time frame is 6 months to 24 months and the devination is one-three probability. >> what is the chance we regain triple a? >> there is five governments that regained triple a. your colleague mentioned a few of them. they regained over the nine-18 years. >> don chambers head of the sovereign committee over the s&p that made a momentous decision. thank you very much. wh