hi, everybody. welcome to "the wall street journal report." in the economic soft patch with danger of a double dip. president obama's chief economic visor tells me what he sees next and why he is leaving the administration. jim rogers talks commodities, cash, and washington. >> they're going to print more money. it's the wrong thing to do, but that's all they know to do. and how to avoid the wedding bell blues when it comes to talking green. important tips on matrimony and marriage. "the wall street journal report" begins right now. >> this is america's number one financial news program, "the wall street journal report." now maria bartiromo. >> here is a look at what is making news as we head into a

new week on wall street. federal reserve chairman ben bernanke gave his candid assessment of the economy. in a much anticipated speech to bankers in atlanta, he said economic growth is not where it should be, and that the tragic quake in japan and high gasoline prices are at least partly to blame. >> overall, the economic recovery appears to be continuing at a moderate pace, albeit at a rate that is uneven across sectors and frustratingly slow from the perspective of millions of unemployed and underemployed workers. >> those comments helped push the market down on tuesday. and by wednesday, the market had fallen for six straight days, the worst losing streak since last august. the markets bounced back on thursday, but they fell again on friday. saudi's oil minister called this week's opec meeting, quote, one of the worst meetings we ever had. the cartel was unable to reach an agreement on production and output quotas. but the minister said opec will meet the market's supply needs.

opec countries supply about a third of the world's crude oil. crude oil bounced on the news. and apple is introducing what it hopes is the next big thing in music. at the apple developer conference this week, ceo steve jobs announced the icloud, a web-based music streaming service which lets users play their music and access data from my apple device. austan goolsbee is the economic adviser to obama and is one of most important voices in the president's circle. the president is listening to him when he is deciding on economic policy. he is announcing that he will be heading back to chicago to teach at the end of the summer. he joins us now with more on the state of the economy. austan, it's wonderful to see you. thank you very much for joining us. >> great to see you, maria. >> it seems we have entered a soft patch. the markets are trading, job creation slowed down considerably. the gdp weaker than hoped. you said we'll see a second-half bounceback. why is that, and have we in fact entered a soft patch? >> well, look. we did enter a soft patch.

we had some pretty stiff headwinds at the start of the year, as you know. we had one poor jobs report. we did have three very strong jobs reports. but overall, you got terribly tragic events in japan that clearly had a negative impact on manufacturing. you had the gas prices, you've spooked consumers a bit. you've got some of the european financial issues. so i'm not making light of the headwinds we faced. i think the slowdown is understandable in that context. try to stay out of the forecasting business. i have noted that the private forecasters and the fed are all saying that they expect to rebound in the second half of the year. when you start looking at what the events were that caused the slowdown, i think you can understand why they would be saying that. >> well, you know, clearly we have seen improvement from the dog days of 2008. you talked about two million jobs being created in that time frame. but the fact is we lost eight million jobs. so looking at the president's policies, do you think in retrospect, the president could

have been a little more supportive to business in terms of tax policy, in terms of supporting businesses so that businesses would create more jobs? >> well, let's make two distinctions. a, the president has been trying the use the tax code and every other policy now to get the private sector stood up. that's what he views as the number one priority. you've got major business investment incentives. you've got the payroll tax for under 150 workers. he cut taxes for business 17 different ways. i think he is doing that. as to whether in march of 2009, when we're losing 750,000 jobs a month and the private sector is in free-fall, we could have relied on anything other than government-directed recovery to prevent the depression, i'm a little dubious on that. >> let me ask you about housing. this is the one area that really continues to be critical to the growth of the economy, and it's

just not budging. are you worried about a double dip in housing? >> well, you know, the housing sector remains troubled because we got a massive overbuilding of housing in 2000. we had an expansion fueled of excess of consumer spending and residential construction, neither of which was sustainable and was rooted in a bubble. so i don't think we can go back to what we had in the 2000, nor should we be trying to. in the case of housing, we've got five million plus vacant homes in the country. so these problems we're just going to have to work our way out of them. >> we're all talking about the debt of the country. not a lot of progress on raising america's $14 trillion debt ceiling. how do you feel about that? when are we going to see an agreement? >> well, you know, i think and i think the market believes we're going to have an agreement well

before the deadlock, trying to push this thing right up to august 2nd, or whatever the exact deadline turns out to be is a bad idea. you saw the rating agencies say that. they said look, let's not mess around with this. i'm actually encouraged because you're seeing the leadership on both sides, republicans and democrats saying let's not push this to the edge. let's try to sort this out within a month. you saw the debt negotiations. they're moving to -- they're going to be meeting three times a week now. and i think the market believes that they're going to be able to get something done. that's why you haven't seen interest rates freaking out or anything like that. >> and then of course there is bernanke. the chairman said pretty much he has done all he can do to repair the economy at this point. no more monetary stimulus coming. qe2 about to go away. little appetite for fiscal stimulus in washington for qe3. what is the implication of qe2 going away? >> well, look. there are two things inviting in

your question there, maria. as to what happens when qe2 goes away, nobody really knows. but i think that if that were going to be tremendously detrimental, you would have already seen that reflected in the markets. i mean, this is the least kept secret in the world. they have basically announced the date and the exact amounts that they plan to phase down. if that was going to be a major negative drag, i think you would have already seen some of that. but to take a step back, i think that on the monetary side, on the fiscal side, we're moving into an environment in which we never wanted the government to be the primary driver of recovery. the only reason the government was in that position is that the private sector was in free-fall. there wasn't any alternatives. so right now what we're trying to see on the fiscal side, and i'll leave ben bernanke sorts out monetary policy, we don't tell him would what to do.

how do we help the private sector stand up and lead the recovery? that's the only way you get the sustainable job creation. >> meanwhile you're leaving the white house, going back to teach at the university of chicago? do you feel like you have left the job unfinished? have you accomplished what you set out to do? >> you know what? i don't know the answer to that. i've been back and forth on this for several months with the university, the president. and i'm not going for a few months just to get back for the school year. i think clearly the economy's still got a long way to go. i think it was a major accomplishment, not to fall into a depression and to get out of what was the scariest moment really in most all of our lifetimes, 75 years plus, and two, i think that the president identifying that we need to grow, that's that's our most important priority, that we maintain, that we're the richest country in the world with the most productive workers, that we've got to make the investments in education and r &

d and innovation as well as live within our means for the long-term. those are kind of the issues that i was working on. and i feel good that we set out that plan. but i do think there is still a listening way to go. >> austan, great to talk with you. and of course we're always wishing you the best. hope you'll come back soon. >> great to see you again, maria. any time. >> we'll see you soon. austan goolsbee joining us at the white house. up next on "the wall street journal report," noted investor jim rogers on hot commodities, the national debt, and the doom he sees for the u.s. dollar. later, the birds and the bees to spenders and savers. the topics newlyweds might be afraid to talk about. as we take a break, take a look at how the stock market ended the week. took some wild risks when i was young. but i was still taking a risk with my cholesterol. anyone with high cholesterol may be at increased risk of heart attack. diet and exercise weren't enough for me. i stopped kidding myself.

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and even improved my cash flow. now, my spa has more business than ever. ...and so does our cleaning crew. [ male announcer ] at citibank, we believe small business is a big deal. what's your story? citibank can help you write it. [ male announcer ] at citibank, we believe small business is a big deal. never in my lifetime did i think i could walk 60 miles in 3 days. 60 miles compared to what a cancer patient goes through is a walk in the park. from the moment i registered, people started immediately supporting me. i walk with my sister. our relationship has gone to a whole new level because of training together. you meet the most wonderful, inspiring people. when you accomplish those 60 miles, it's truly life-changing. (man) register today for the... because everyone deserves a lifetime. noted investor jim rogers is known for his bold calls and predictions, from hot commodities to washington

policies. today he is saying we are in for a wild ride on the fortunes of the dollar. i spoke to the chairman and ceo of rogers holdings about what he sees as a crisis in the making. and please forgive my laryngitis during this interview. >> maria, the debts in this country are skyrocketing, you know. in the last three years, the government has spent staggering amounts of money, and the federal reserve is take on staggering amounts of debt. when the problems arrive next time, and we've had recessions every four to six years from the beginning of time, the next time we have a recession, what are they going to do? they can't quadruple typical debt again. they can't printout more money. it's going to be worse the next time around. i don't particularly like saying that. i'm like you. i'm an american taxpayer. >> fascinating that we're having this unprecedented conversation about raising the debt ceiling. let me ask you. what kind of a market disruption would you expect a market disruption if in fact we were to see this play out all the way into august or september? >> well, if they close down the

government, i suspect the dollar would go up, because then people will realize we're not going to spend any money. they're not going to close down the government, though. i would hope that somebody down there would understand we are facing a crisis. the debts are staggering. we can never pay off these debts. we've got to do something. the market is not going to put up with this much longer. >> you said that the u.s. dollar is going to be a total disaster. where is u.s. policy going wrong? and you said the chinese yuan is going to be a safe currency. talk to us that. >> we have been printing staggering amounts of money. we're the largest debtor nation in the history of the world, maria, in the history of the world. and the debts are going through the roof. would you keep lending money to somebody who is spending money and not doing anything about it? no, you wouldn't. the pound sterling used to be the world currency. it's lost its status. it went down 90% when it lost its status. i don't like saying it, we will too. >> everybody is worried about china. how slow are things getting there?

>> the chinese are trying to cool their economy off. rightly so. they have raised interest rates four times. they've raised reserve requirements seven times. they have an inflation problem. they have a housing bubble. they're trying to do something about it. lightrightly so. i hope they pull it off. it's going to affect their economy and anybody who does business with china. >> so ripple effects. talk to us about commodities of the ripple effects of a slowdown in china. >> obviously, if you sell to china, whoever you are, it's going to have an effect when they slow down. remember, when they talk about commodities, it's supply and demand. supply is under duress. in this country, for instance, the average age of a farmer is 58 years old. we have huge agricultural problems facing us. not just us, the whole world. in ten years, if they're still alive, they'll be 68. they're not going to be producing a lot of food in ten years, or even five years. so the world's got serious supply problems as well as potential demand problems. >> let's talk more about commodities because you said silver prices in the near term

are coming down even further. >> well, they have come down, yes. you're right about that. i don't know if they'll go down more from here. it would be good if they did because then i could buy more cheap. i want to buy more silver. i'm not selling my silver. if silver comes down because demand slows, you see what is happening in the stock markets around the world. if you see that happen and that causes commodities or so to correct some more, pick up the phone and buy some more silver. >> what about gold? >> same thing. pick up the phone and buy some more gold. i hope they come down. you know, gold could go down $200 or $300 and still be in a bull market. that's not a prediction. i'm just saying. it would be a normal correction for silver and for gold and future all commodities and it would be good for the world. >> what has been untouched in the world? what do you like long-term? >> long-term? again, commodities. if the world economy gets better, commodities are going to do well. if it doesn't get better, maria, they're going to print more money. it's the wrong thing to do, but that's all they know to do in washington and tokyo and a few place. they'll print more money. and if they print money, you

should own silver and rice and real assets. >> what is your take on bernanke? what do you think happens at the end of qe2? >> since the first day mr. bernanke went to washington, i told you he was going to be a disaster. he has never been right about anything in the seven or eight years he has been down there. i hope he doesn't come back with qe3. but that's all he knows. the only thing he knows to do is to print money. he doesn't understand finance. he doesn't understand currencies. he doesn't understand economics. he understands printing money. and he is going to print more money, whether we like it or not. it's the wrong thing to do, but that's what he'll do. >> so market disruption come the end of june because qe2 goes away? >> qe2 is definitely going to go away. now it may come back with a different name. they may call it cupcakes. who knows what they'll call it when it comes back. but they're going to bring it back because he'll be terrified and washington will be terrified there is an election coming in november of 2012. washington is going to print more money. >> jim, it's great to have you on the program. >> i'm delighted to be here.

thank you. i hope your voice gets better. >> thank you very much. jim rogers. up next on the "wall street journal report," mergers and life, love and your credit history. personal finance advice for when two become one joint account. and you can find us on

having the talk with your spouse about money, debt, and values may be harder than you think. how can you make sure your finances are committed as your relationship?

joining me now is patricia seaman, senior director of the national endowment for financial education. pat, thank you so much for joining us. >> thanks for having me. >> so you've been serving recently married and engaged adults. are people having serious discussions about finances? >> the good news is most people are. our survey found 86% of americans say they're talking about finances before the wedding. but we wonder if they're having the right talk and if they're keeping up the dialogue after the wedding day. >> well, that's a change. because that wasn't the case five or ten years ago, right? >> right, sure. >> what is the hardest topic that people have such a tough time discussing? >> well, i think it's just money in general. and there are a lot of conflicts between what you hear about different money personalities, if people are savers or spenders. but it's really what they want as far as financial goals. so it's difficult to say well, this is important to me, and if you don't feel support from your spouse, then it can lead to finding a different way to get to those financial goals without

working together. >> and when you don't work together, it creates fighting. isn't this one of the biggest sources of breakups? >> it is, it is. and it's also one of the biggest sources of fights in a relationship. >> let me ask you about the important points or questions that need to be asked before walking down the aisle. >> right, right. so some of the things start with really simple day to day things, because people wonder, how will we divide up the household finances. how will we handle discretionary spending? maybe i have some hobbies, you have some hobbies. so those are some things that should be worked out in advance. but one of the most important things is pulling each other's credit history and credit score. you know, that's so important for joint financial decisions that will be made in the future, things like applying for a mortgage, or a credit card account together, or a car loan. so you need to know where your partner is coming from. >> let's say your husband or your wife is heavily in debt. you may not know that. now are you responsible as well

if your spouse has heavy debt? >> that's part of the discussion. so you can decide how -- first of all you look and see how much is the debt? and then you can make decisions, well, will this be something that together we work on, or is it the responsibility of the person who brought the debt into the marriage. >> in one of your recent surveys you found that 30% of adults have committed a financial deception. >> right. >> right. >> tell us about that? what kinds of things do spouses keep from one another? >> they do things like hide money, actual cash from each other. they hide purchases. they hide entire bank accounts. or they just don't tell the truth about how much money they make or how much credit card debt or student loan debt. so that whole range of activities we call financial infidelity. and it can really hurt couples. >> sure. and of course we all value different things differently. so tell me about the differences in individual personalities when it comes to money, how to navigate through a relationship. >> right. >> when you've got these

differences. >> exactly. well first of all you can't assume you know where your partner is coming from. you can say oh, well you buy golf clubs and i buy scrapbooking materials. but what does that really mean? you can use tools there is a 20-question quiz called life values that takes just a few minutes and gives you an idea of what the values are behind how you spend money. and you may not be the same. in fact, most couples tend to be very different in their money styles. but you can use it as a starting point to negotiate financial decisions and when to compromise and how to compromise. so it just gives you more depth to the conversation, and a better ability to get to the kinds of goals that you want to together. >> is there a best way to have these discussions? in other words, where should you do it? how should you bring it up? >> yeah. most people feel very defensive when they start talking about money. so it's best to separate it from actually paying the bills. find some neutral time and place to do it.

use something like the life values quiz to have a neutral objective opening for the conversation like look, here i didn't know i was this. what are you? and then you can bring all your paperwork to the meeting, you know, statements, credit card bills, and start a conversation with that. >> great advice. pat, good to have you on the program. >> thank you so much. >> thank you so much. patricia seaman joining us. up next on "the wall street journal report," we'll take a look at the news this upcoming week that will have an impact on your money. and then celebrating and selling american history. the commercial appeal of a trip to the past. i will send this to shelley. yeah.

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for more on our show and our guests, check out the website, wsjr.cnbc.com. and i hope you follow me on twitter @maria bartiromo. now a look at the stories in the week ahead that may move the markets and impact your earnings tonight. earnings report released from blackberry. tuesday total sales for the month of may as well as the producer price inflex which tracks inflation at the wholesale level. wednesday the consumer price index is out. the cpi measures price inflation for consumer products. and thursday the government reports how many residential units began construction last month. friday the university of michigan releases its latest reading on consumer sentiment. finally, today is your vacation dollar made in the usa? this week's smithsonian's museum of history begins selling only

u.s.-made products in its price of freedom gift shop. vermont senator bernie sanders first raised the issue of foreign-made souvenirs after christmas shopping for his grandkids. the store is taxpayer-financed. the smithsonian says of the 12,000 items sold throughout the museum stores, about one-third are american-made. that will do it for us today. thank you so much for being with me. next week viacom guest philippe dauman. i'll see you next week. my second diagnosis-- i was told to go home, retire, and enjoy the time i had left. to say it was a shock is just a complete understatement. i mean, i don't think there are words. she had put up a really good fight, but it was her time. you... don't have a choice of getting breast cancer.

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