>> from washington, the mclaughlin group. the american original. for over three decades, the sharpest minds, best sources, hardest talk. >> the mclaughlin group is brought to you by seaman's. everyday, seaman's answers are helping to build the future of america. seaman's. answers. >> we never thought we would be farming wind out here. not just building jobs here. it is helping our community. >> seaman's has received a major order of wind turbines. >> this is what we do.

>> the fact that iowa is leading wind energy. it is amazing. i'm so proud. >> issue one, putin in our backyard. >> it is not a new cold war. what it is, is a very specific issue related to russia's unwillingness to recognize that ukraine with chart its own path. >> president obama may want to consult another president. vladimir putin, about whether or not we are in a new cold war. he has capitalized on the hemisphere long term. and get this. last month, july, just past, mr. putin visited cuba and met with the castro brothers. raul and fide will who have run

cuba almost six decades. ties between russia and cuba hit a low point after the 1991 collapse of the soviet union at tend of the last cold war, but russia has hit the reset button hard on relations with havana. putin wanted to create growing cooperation between russia and cuba. in february, russian's defense minister began talks with cuba and venezuela and nicaragua about accomplishing just 90- miles from florida, russian military bases. cuba ran up a debt to russia dating back to the soviet era of $35 million. on his july trip, president putin waived $32 billion in debt. also, new commercial agreements

on energy and trade were inkedly vlad and rauol. mr. putin wants to invest in the creation of a grand transportation hub with modernization of the maritime port of mariel. patrolling projects on the islands north coast including drilling for new oil and potentially vast volume offshore deposit. next stop, argentina. president putin visited their president fernandez and signed agreements with her with energy involving the massive corp. ration rassatam. question, is president obama's belief this is not a cold war, is that wishful thinking on his

part, pat buchanan? >> no it's not. there is not a new cold war, john. putin is playing in our backyard because we are playing in his backyard. he doesn't want a cold war. he has a real problem in ukraine, but let me tell you something. he and angela merkel are working behind the scenes for a deal where russia cuts off aid to the separatists in ukraine in exchange for recognition of his leadership. russia comes back in from the cold. europeans don't want russia out in the cold. i don't want russia out in the cold. putin doesn't want to stay out in the cold. i believe he sees his future as still with the west and what they are doing down there is playing games. >> eleanor? >> i think these are targets of opportunity for putin. he is in our backyard because he can as pat says and he sees the u.s. as in his backseat yard and he wants to let us know how it feels and he is

also going to sign some sweetheart deals. sweetheart for the recipients like he did with china. he gave china a good break on oil and gas and he is likely to do the same with these south american countries as well because he likes the political credibility that comes with it. i don't think there is anything to fear about this. >> uh-huh. >> i think he likes to remind us that back in the soviet era, during the 80s , they were in el salvador, nicaragua, guatemala. he is basically letting us know he can play there as well as we can play in his part. >> it only takes one side to start a cold war. truman didn't start the cold war, stalin did. >> if they try to put missiles back into cuba, then we are talking about a cold war.

otherwise, some porting and pipeline deals, that is commercialism in the 21st century. >> do you share this happy talk? >> i don't. putin enjoys the cold. he never left the kgb. if you look at what is happening in eastern ewe, not simply with ukraine, poland. what is happening in central and latin america, there is a clear statement on behalf of the russian government to try to assert its interests as they see it around the world and i would argue in deference to pat, that the things we are sering here are very concerning in terms of a cold war because they affect the u.s. in strategic ways. >> he is going to make nuclear rectors. >> he does not want to take

over the world. he is not going to put interimmediate range missiles in cuba. if he does, i'm wrong. >> what do you think mort? >> less go back with cuba. russia has had a relationship with cuba going back decades. >> which you know very well because you knew fidel very well. >> i do. i have been to the country eight or nine times. i have spent a lot of time with fidel castro. he is a remarkable man. castro is. not our favorite guy. but he is unbelievably charismatic man. i don't think i have ever seen anybody with greater feel to the audience. his brother is a different kind of a person. his brother is an operating man. castro is a visionary in cuban terms and his visions go way beyond cuba. i don't think this is a surprise. >> he is 90 years old. what are we talking about?

>> you are propping these guys up and moving them around in carts or something? >> he is still there and he intends to do something for the longer term interests of cuba. and his brother is a lot younger. >> but you see them as a threat to the united states? >> i don't see them as a threat. no. of course not. i didn't say that. i didn't come close to saying that. >> maybe putin is there taking coo race charisma lessons from fidel. >> what does this say about the current position with the administration at the moment? the sanctions they are working slowly, clearly they are not. putin is saying come on. >> if putin wanted eastern ukraine, he could have marched in and taken it. he doesn't want it. i think he would like to win a victory there, but he doesn't want to annex this part of it. >> he is annexing it under the surface. >> if he walked in and took it,

this problem would be over. >> he is laying the ground work. mortimer, can you speak to that? >> you speak to politicians in eastern europe. they see this as a covert invasion. >> broke away from moldova. he doesn't have a common border with them. >> he can reach it covertly. with the pretense we haven't invaded. >> with everything going on, this goes down to moldova. >> wait a minute. are you ridiculing moldova? try their honey. try their honey. next question. western diplomacy with putin has been premised on bringing him back from the fringes if you will. is that working? >> i think it is going to work because i don't believe he wants to annex.

i think he wants the sanctions lifted. ultimately, he doesn't see his future with china, but with the west. >> quickly. >> i think they will work the sanctions we put in place last week. they can't tighten the vice that quickly. he is going to feel the pain. >> tom? >> i think tougher saning could work. i don't think these will at the moment. they haven't been tough enough with the energy sectors. if we were willing to push the line, then it could work. but at the moment, i don't see it. >> mort. >> this man is an extraordinarily tough minded guy. he was in the kgb. ran it in his early 40s . you know what it takes to run the kgb at that age? this guy is extraordinary. he has ambitions that may not take into account the power structures you are referring to. he is going to be a real player and a difficult player for us

around the world. >> do you think he wants a war for us? >> no of course not. >> but i think he perceives he can get away with what he wants to. >> his relationship with the head of germany. quite intriguing from both points of view. >> she speaks fluent russian and he speaks fluent german. it helps. >> she is very ... >> the same relationship under the czar. the germans and russia had a long time relationship. they have great tremendous economic interests. germany produces great material. russia has great raw material. >> don't you think these figures are more interesting than other figures? >> both nationalists are the most popular figures in the country. >> that is short term

popularity. i don't think that bears well in the long term. >> i don't think it is short term. i think putin is very popular in russia. he is a very strong leader. okay? and he articulates everything he wants to do. he has great appeal to the russian people. >> did you see the picture of his daughter? she is in amsterdam. she has quite a bit of publicity. >> she is a very attractive young lady. >> that's in the national interest pat. >> you say that with some surprise. >> you think her father is ugly? >> no, but i think ... [ laughter ] he is not as pretty as she is! [ laughter ] >> we will see he gets a copy of this show. you better watch where you go walking at midnight with that cat of yours.

carries critics. >> make no mistake, when the people of israel are rushing the bomb shelters when innocent palestinian teenagers are abducted and murdered, when hundreds of innocent civilians have lost their lives, i will, and we will make no apologies for our engagement. >> with the combat between israel and hamas in the gaza strip now entering its fourth week, efforts to broker a cease fire have taken on an air of urgency. in late june, egyptian president proposed an unconditional cease fire. israel embraced it. hamas rejected it. this week, secretary of state john kerry jettisoned the egyptian plan and instead adopted a proposal floated by turkey and kata. allies of hamas. it includes lifting the blockade, but is silent on

israel's demands for the demiltierization of gaza. israeli officials went ballistic last weekend after secretary kerry abruptly changed the terms and on background, the israeli vented their frustration to the press. the newspaper staid this, very senior officials in jerusalem described the proposal kerry put on the table as a strategic terrorist attack. his decision to go hand in hand with catta and turkey and form a frame work like hamas was catastrophic. unquote. the chief editors of the times of israel was more. whether threw malice or ineptitude or both, it was not a case of america's top

diplomat coming to our region to ensure the protection of a key ally. this was a betrayal. unquote. he called him a hapless nebbish. obama officials are bristling. since 1945, israel has been the single largest beneficiary of u.s. foreign and military aid to the amount of $181 billion. >> also on friday, secretary kerry condemned the "out ragous palestinian allegations of the cease fire." is his criticism warranted or over the top? i ask you mort. >> at the very specific issue of his coming in with a peace

proposal that came from kuttab. the worst and most antiseparatists metic leader in the middle east. they form a program and kerry brings it as a proposal with the united states blessing did not go over well. >> it was a lead balloon. >> a very bad move. it has been completely disengaged from the process. the israelis have a very simple problem. they have got to prevent their own people from being bombed with missiles and being attacked through these tunnels that are under them. they are going to respond to them. this is something that is not going to change because of kerry coming in this way. he has come in with a different proposal for a short term cease fire that ended in three hours

when the palestinians attacked and killed a couple of israeli soldiers and captured one which is just another way to explode any possibility of an agreement. >> the death toll is 1445, hamas. israel, 56. what about the wing of the palestinians. is he playing a role in anything? >> right now, they will have to play a role if this is ever going to be resoeverred. the israelis can deal with him. they can't deal with say the kind of people who are in gaza. >> the peace process is as dead as it can be. it is not only israel who has a hard time with turkey and the egyptians and the jordanians and the saudis. they are in israel's camp in this war. they are silent cheer leaders for israel and they are

appalled. there is a new division in the middle east. what is happening in turkey, they are savagely antiisrael and comparing them with nazis. >> what kind of grades do you give to the secretary of state? >> well, i give him at this point a b. and i'm trying to be generous because i think he actually changed the whole atmosphere in terms of coming in with that proposal as pat was saying from two countries who are ... >> it is not just the israeli who are unhappy. >> after jerusalem, secretary of state john kerry went to paris where he met with prime ministers of turkey and katta.

the palestinian authorities is also peaked. he issued a blunt statement hamas that those who side with turkey can go and live there. >> how did the obama administration manage to simultaneously alienate, jordan, egypt? >> we are seeing a consolidation of power. much stronger in terms of an antiposition against hamas. but i think the issue going back to john kerry is that you have to speak to khatta. he is public appeal at home. he has to come down to egypt. i think the problem going back to this question is, kerry has not been astute to the fact that all these dynamics in the middle east are underway with regional power games and he is

trying to meander his way through perception drives it. >> could the deal be moved forward in egypt more or less likely? >> much more likely. it is not just egypt. you understand. it is egypt, it is saudi arabia. cutter is the financeier of israel. >> does benjamin netanyahu save face with a benign intrusion of egypt? >> of course. he went against the radicals in that part of the world. and they are much close tore where we are. they are much closer to where egypt is. >> quickly. five seconds. >> egypt is very antihamas as is most of the countries you have mentioned. hamas is isolated. but at some point, their

concerns are going to have to be dealt with. only two countries deal with them. cutter and turkey and kerry has to open up lines to them or you can't speak to hamas. he is doing the right thing as a fair minded diplomat. >> he doesn't understand the new realities of the middle east. >> this is true. but i think he is a quick learner. >> issue three, break out the champagne. >> good news. from the commerce department. commerce reported this week that second quarter gdp, gross domestic product growth from april to june was 4%. up from the dismal 2.1% contraction in the first quarter that was attributed to the long bitter winter. the 4% gpp growth rate exceeded expectations by a pull percentage point. that good news is accompanied by more good economy news.

consumer confidence up from 86.4 in june to 90.9 in july. the highest index put out by the conference board has been in seven years. since october, 2007. consumer spending is up. 2-point #%. business investment up. way up. from the first quarter increase to a second quarter surge of 5%. item. private sector job growth steady. still acknowledged to be a good solid number. >> also, the labor department announced friday a 209,000 new job had been added to the economy? july. the unemployment rate rose slightly from 6.1% in june to

6.2 july. how do these numbers sound to you mortimer zuckerman? >> it declined by 2.1% in the first quarter, so the average growth over six months is 2%. that is literally nominal growth in this economy. we have been growing at a rate of 2% for the last five or six years which is much lower than the normal rate of growth. we are still in an economy with a lot of problems. we have a huge level of unemployment. a lot of them are part time employees. not full time. they are only 47 million full time employees in the economy which is a low number. we are still in very difficult macro economic problems. >> more jobs have been created in the first half of this year than in any time since 1999. so the whole bush

administration fell below this time. i mean, we ought to cheer a little bit. i agree much more is needed to be done. quality of jobs. wages need to be raised and the president is saying he is trying to get cooperation from congress about a number of these things. a small liver of americans are doing extremely well, a lot of people have been left behind. >> okay. tom, and pat. can you speak to a new report from the urban institute showing the 77 million americans, 35%, have debt that has been referred to collection agency? how bad is that bad? >> well john, it is located in the south and the west, and quite frankly, it is many minoritying and poor folks with this particular problem. that is bad news. but i'll tell you one thing, we have a fed-fueled economy. you have the stock market shooting up to 17,500. just lost about 1,000 points in the month of july. maybe a little less than that. and the stock market is a lead indicater of where you are going.

>> you have ten seconds. >> i think the slack in the lay market. my concern in 2018, the deficit starts going up. people are not saving enough. what happens? my generation has a big problem. >> good at perceptions here. pat? >> well scotland's recession is touch and go. catalonia may vote on a recession from spain. >> john brennon apologized for the cia spying on the senate. there are calls on his resignation. he will survive. >> tom? >> i think scotland stays as part of the united kingdom. that will be the outcome. >> interesting. mortimer? >> a cease fire will be agreed to. >> i predict that the governor of new york will not seek the presidency in 2016.

by the way, the steam boat institute in steam boat springs colorado has just named father or mother rogan on my left as the chair of american exception exceptionalism. congratulations tom. this is no small feat. bye bye! >> the mclaughlin group is brought to you by siemens. everyday, siemens answers are helping build the future of

america. siemens. answers. >> we never thought we would be farming wind out here. not just building jobs here. it is helping our community. >> siemens has a huge order of wind turbines. >> this is what we do. >> the fact iowa is leading the way in wind energy, i'm so proud. it is just amazing.

♪ this week on "moyers & company," award winning actor and writer, john lithgow as king lear. >> this is an interesting moment. i just entered into that window where you can play lear. when you're old enough to play him, and you're young enough to play him. 'cause you have to have the strength to play the part, and yet you have to have some sense of impending old age. >> announcer: funding is provided by -- anne gumowitz, encouraging the renewal of democracy. carnegie corporation of new york, supporting innovations in education, democratic engagement, and the advancement of international peace and security at carnegie.org. the ford foundation, working with visionaries on the front lines of social change worldwide.