in india as these are made of the move to join the that surrounds the dome of the that's the group where the grand imperial family george was to school until you can a letter to the soldiers which it's a it's a duty to go and clear this is the colonel was the term as used to retreat. before the lead with the same with boys they gave. our economic and social realities the u.s. can dish out the economic advice but can they take it especially considering the recent brush with death default so what can america stand to learn from russia's dose of shock therapy. and what lies beneath the debt ceiling drama while nine hundred ninety can amik problems and unemployment is one of big one so where all the jobs. experts are saying the trail of evidence leads in only one place in only one direction and that is beijing china it does because

a security firm who uncovered the cyber attack didn't say that not at all so where does the mainstream media get off pointing fingers in that direction. good afternoon it's wednesday august third four pm here in washington d.c. i'm lauren lyster in your watching our t.v. while the united states may have barely averted a default on its debts but it did not tackle its overall debt crisis nor did it show washington's ability to come together and tackle a crisis period that you point one trillion dollars deal is spread out over ten years with many of those cuts t.b.d. it doesn't make much of a dent in the fourteen point five trillion dollar debt as it stands now and it doesn't tackle the money promised to unfunded liabilities such as entitlements which it doesn't have. we haven't done in fact with that village two hundred and

eleven trillion dollars and with the u.s. being prescribe or a solution for other countries such as russia in the past is it time for the us to get a dose of its own medicine well top all about that but first a look at what the u.s. has prescribed in the past congress has now approved a compromise to reduce the deficit and avert a default that would have devastated. the u.s. just had to swallow these bitter pill that many students it will help the patients' recovery but will instead prove to be a poisoned chalice our economy is not growing at all in fact unemployment remains very high foreclosures remain very high and no recovery is taking place and are we on a suicide mission we may be gesturing you know to kind of deal with this at the same time make it impossible for the government to play any role to save the economy in the economy is going down rapidly get some points shortly after the collapse of the

soviet union russia became an american laborde tree for new liberal economic theories but can americans take their own advice now to deal with their own economic crisis. live within your means the same with voice they gave us without knowing our economic and social reality were we to do ration care how did russia central bank and the media to soviet period the year he took up the chop in one thousand nine hundred two so the worst for people inflation in russia's history the us is sarah tkinter nans is the communist economy was in collapse and there was nothing to replace it with. so perhaps this situation was disastrous for good was over a hundred billion dollars in gold in foreign currency reserves was and fifty million which effectively means new. people still reformists of the government's

remember holland america's advice so-called shock therapy was a plant the markets might have got the therapy of the people got the shock to shelves and must pull their z's goes or as one politician sued for more tickets to a communist economy is easier it's like trying to turn your poor into fish soup which do the opposite is much harder it's like trying to revive the dead fish it took more than russia a decade to revive the quarry and return to economic growth transforming the country's fortunes after the disaster of the ninety two ninety s. what would be your knowledge of patient guy or negro it could all be. we'll soon see you know what was good enough. before america exceeded the director of the art school. well that for twenty years later the world is concerned about the united states and sovereign debt and russia which actually

defaulted on its debt in one thousand nine hundred eighty is now outperforming most of the world at something my next guest has pointed out she's an economist with eight the m. partners margaret bogan raef she joins us to tell us if and how the u.s. should be taking notes thanks so much for being with us now you make the case in a recent article i read of yours that the u.s. as it stood poised for default russia's economy is looking really good and really is the exciting growth story for the brics countries looking back of course russia with a country that had to go through a lot of pain in order to get to where it is today including shock therapy in the ninety's as we thought in that report so do you see any lessons in that for the united states. well i think rock up to me offers an interesting lesson in shocker you guys don't think it's actually possible on the united states but let's take a look at russia ninety ninety eight in nyc in august one thousand id recently that and you're out of communism so when the government decided to dig out of you the currency to default on purpose that is suffering or credit or it was

a stock doesn't that we should bear but needed in order to reset and looking at the united states now if we enact it i mean waterstones policy it would cause so much more work and make the global economy a book i don't know how you or many are sitting or could ever come out of it the properties we really interesting he do have to remember that there was quite a bit of build up demand on orders of waiting waiting waiting for a shock or so that it could then you know will that go back to normal you might keep doesn't have that weird to tie the global economy remember we don't feel that we're punting another right that we still have you know like a bit of spice to the world obviously are saving our world really look to our core economic you know other leadership we were and what it was briefing that russia did

it would it impact the world dating me and our straight partner i don't think you'll. ever recover the grasshopper an interesting example i actually think about it one is to the end of the ninety's oh and kind of and there and there are many comparisons for the united states to japan that we've dan and we've talked about on the show but i do want to bring up just the issue of priorities because something that you see even in the shock therapy that russia and europe were priorities where you know the market maybe got the therapy but the people got the shock and they dealt with unemployment and poverty and very serious amounts of pain is there anything that the united states needs to be considering as as far. pain i mean can you get out of a crisis like the united states is in because even though it's the reserve currency many people are very concerned about the u.s. debt say the u.s. can never pay its bills can you get out of that situation and get out of the economic doldrums that the u.s. is in even with job without enduring pain. i i really like it

and here's why right now there's a big debate going on in the united states regarding the economic should the government pump more money into the economy i don't hold. to being an economic theory or the problem there's a difference between politics and economics so well and he could beat me up or they can the end of the government more money to be economy. but i think he can be made of that record and i mean if you ever look. even more i haven't the anybody is going to ever be able to do it right now because currencies ministration and congress so painting a step back and looking at solutions yeah i think there is an issue. and if you think there is i don't know conservatives look to argue about class war you know people are just trying to rile people up. and i think tax tax code you know what we

ask if this don't occur well it is really it is part of the problem i really do i think. has been so charged that there was almost not a peaceable answer or particularly from the government i do believe that there will be more pain i think the best answer well i you know restating in redoing our tax ok so then who should ensure that pain do you go squeeze the richest top one percent of the country that controls a third of the wealth in the us to pay for programs like entitlements that are broke you know help the poor help the old that are guaranteed money or do you squeeze the larger portion the poor the poorest fifty percent who control just a few percent of the wealth in this country but who are living off of government welfare for their food for their health care for unemployment in record numbers especially when it comes to examples such as food stamps and stats show that fifty nine percent of people get some form of gover. i meant as i said so could you

please. phrase that question your well inequality shows to us particularly in economics it shows where the money in it and the love that we bring that could be spent you know under those hot water or sense of peace means that sure i got yourself up right now to live at least that's what we're doing in congress right now your problem is all the thought you can squeeze from those people they are generating more income they are generating more well they are. reunited so you can come out even. where we are that deep you're only hurting a lot you're not genuinely thing like you're right about meaning you know the upper or lower athens where the wealth inequality debate should be instructing people when it's not is there really bad and hats our citizenry is not paying it's fair share so you know there are one soon internationally

controlled it's of equal control all right now that's why they're not paying their fair share well you couldn't her grandmother's all you want at the end of the date if you know me but i mean i only heard of pain so much that they're happy in work ethan wore so you think the so just in short you think that the rich to be taxed more and contribute more to pay for some of those programs that are guaranteeing for the sick the poor that sort of thing absolutely i think i think looking at you know the greatest love to clay and being very. understand that the reason particularly conservatives really like to argue. this is a meritocracy i worked hard i'm sure the united states is also created with the idea that you earn your keep and you pay your keep and i think the bigger issue is that many conservatives say look i get it in my i see be able to keep it that nobody thing that just because he doesn't mean you deserve the right to that he's

half. people are going to be crippling about it and just simply because you or i think that i think we would be i just want to make a point along with what you're saying i want to bring up i think we have a picture of the ferrari that is selling out the ferrari in the lamborghini that were just released essential a they're already all sold out there about four hundred thousand dollars which a lot of those orders coming from the united states they're not even out there sold out for the first all year tons of money does this yes or no does this further make your case that there are people that can afford to pay more. yes i think it does i think it shows that we've created a straight system where people hedge fund managers traders invest in a. consignment can make a case or a sense about it might look people spend their money however they want but i can get back up and straight is the creative in which at the hour and well belgrade it was literally good timing as you say well you know i want to pull up the ladder and

i'm now beat you know three three hundred because generation there are not that you . increase the rate and you know i mean. at the same time though when you look at the broader global economy to countries that we're talking about that are great growth stories are the brics countries that are seen as growth in their economy and they have a really different model they don't take care of their poor and their elderly at all in the same way that the u.s. and europe can so can the u.s. grow ever the way that it used to or the way the brics countries are while it has this model for government welfare assistance well i think what's interesting about . it is no longer be exceptional story. of the crisis really show i mean it it happening for the last one and a year but honestly down the global economy. there are going to be different and given economy that will work i mean well i mean what are your stance on the

issue be have i need to use the word you have is that. strong candidate or you know the united. well i think every country if you operate them both i don't think the united states to go rushing to invest in you know it's really a different type of capital and the united states so do i think lessons can be learned in the future absolutely and so great. but the issue is i don't think the united states should be using right now as an example or. how do. you know. i don't think. ok i do want to ask in reality to just keep this conversation going for one more minute cause i want to get to this issue of the corporate tax holiday so you're saying that the wealthy need to be paid more of their fair share pay more money at the same time we see more bipartisan support in congress for a corporate tax holiday the argument being that if companies bring their money back from overseas where they have it in tax havens and their taxes just five percent

instead of thirty five percent which is the corporate tax rate here in the reinvest their money in jobs because it points to a couple of holes in their argument one being that corporations are sitting on tons of cash already which they're not investing and the second being that the corporate tax holiday didn't work back in two thousand and four when there was one and here's an example of that the argument is if they bring home from overseas originally tax free to do that that will enable them to spend in the economy u.s. companies are already sitting on a record pile of cash almost two trillion dollars according to the federal reserve . that actually isn't what i was referring to i was referring to an example where h.p. brought the money back and then in the same year i believe laid off fourteen thousand people so clearly getting that money didn't result and then investing in jobs there so my question is why can't you or i keep money abroad and bring it back without being taxed at normal rates so corporations might be able to. great question i

think making them. look at this your government policy makers need to understand how the pression only work on the margins the majority of the time and here is why it was policy rowsley and orderly inactivity absolutely. you're only going to see a shift on the margins. were you know like it's a job so you look at. the corporations bring back the united. that's increased demands last. one point three percent growth. so you can act. going to happen you know people are going to. cars in our economy and creating jobs here it's not it's just another example of you

know little cars. right except that the people focus on is the solution but i want to thank you so much for your analysis on all of this that was margaret bogan great she is economist at a.t.m. partners. thank you now the debt ceiling drama is over as we noted but the country's problems are absolutely not the debate over jobs may have been overshadowed by the debt but the crisis appears here to stay more than nine percent of americans are out of work an estimated two million of them according to the bureau of labor statistics are ninety nine er's these are people who have been out of work for more than ninety nine weeks meaning that they can no longer get unemployment benefits now also the number of low income jobs in the u.s. has risen over the past twenty years so more of the jobs that are available forty percent of them are low income jobs like service sector jobs and even still given that for example on the national hiring day that mcdonald's held when a million people showed up they those people that apply they have. less of the

chance of getting a job at mcdonald's than harvard applicants have of getting in so those are several big issues also to fix but they're very real and they've affected my next guest who hasn't been able to find a job since january of two thousand and nine my next guest is brian fit and he might know a thing or two on the subject he joins us live from long beach california thanks so much for being with us and giving us your personal story. i've been looking. stable work for yes isn't looking to january two thousand and nine and i've just been able to find like little gigs here and there little things but unstable nothing steady so my question to you is just you know in that time two years eight months is a long time how many jobs you save applied to and what kind of jobs and how often i've been applying for everything. lately i haven't really been applying as much but in the beginning i was applying everywhere mcdonald's wall or burger king just

anything like i was going out for anything i just want to make some money and i mean i know how to build and repair computers i'm really intelligent i can pick up on things politically learn things. i'm not good enough for mcdonald's apparently why do you think that is what it how have you not been able to get a job as a burger flipper or you know i saw something you said you know sweeping floors what do you think is the problem. i think there is too many applicants because they know that at one time i was applying for some positions or somebody posted on a craigslist and. i sent him an e-mail and it was just one position that they had opened made maybe two i think it was one and they said that they got over like two hundred applicants for that position so so many people unemployed that are applying now you see lawmakers and pundits and the president of the united states talking about the unemployment problem talking about jobs all the time especially now they're starting to talk about it again now that the whole debt

ceiling debate is over but you're actually living it did they get it. i don't think they really do because you know that they're up there in washington and they don't really. you know that they're not like just like everyday people you know suffering and trying to look for work and they don't know what it's like. to apply for mcdonald's and not even get called back you know so what do you think they're missing what it what do you think they should be doing differently. i think they need to be focusing more on jobs and not letting him go to china because like even if the job is going to the jobs that i'm looking for being shipped overseas. all the jobs that are being shipped overseas. the old people here are losing the work and that in essence more competition for me because as more people applying rolled in these low paying jobs. as i mentioned you know forty percent of the jobs now

they're available are low paying jobs in this country as of manufacturing jobs have gone overseas and been replaced by the service sector and what i'm curious one of the things that have been reported is that now a lot of job listings are saying that people who have been unemployed for a long time should just need not apply that they want someone that's been recently laid off or is currently employed have you felt discriminated against because you've been unemployed long term do you think that that has made it more difficult for you to get a job. you know it's tough to say exactly what the reasons are but i think that is the contributing factor. and then my other question you know we recently just heard al gore former vice president say that u.s. citizens should be inspired by the arab spring and take action here to get things addressed and to make political change i want to play a little bit of what he said we need to have an american string a kind of an american tahrir square nonviolent change where people from the

grassroots get involved again do you think that's the answer to get involved politically so that your voice is more heard and maybe some change could be enacted you have any kind of faith in that kind of a response. you know. i'm not sure because there's so many lobbyists out there you know being paid by corporations and it is there didn't just make more money for themselves and screw the little people you know. so do you feel really there's nothing you can do well i mean we can try but i mean let's all of us get together all at once you know. just one person here and there you know it's not really going to do much well maybe if we all got together maybe we could. some changed. all right well we certainly appreciate you sharing your story and we wish you the best of luck in finding a job that was brian france who has as a ninety nine er in south. now switching gears to from the small people to degree

big one and the very biggest threat that governments have recently really moved towards which is that of cyber war now by t. for mcafee has claim to uncovers have had have uncovered one of the largest ever cyber attacks they're calling it shady rat and the main target was the you ask but more than seventy organizations were targeted over five years from governments to the olympic committee and the united nations now mcafee won't say who it thinks is responsible and it won't get the computer to secure its computer security experts they say also to no one can prove who's behind it but that hasn't stopped the mainstream media from pointing the finger in one country's direction. the washington post says experts from lawyer with the analysis say this new ping probably originated in china and then there's this packer's infiltrated dozens of u.s.

government and corporate networks including sensitive computers for the u.s. government and the you where the experts are saying the trail of evidence leads in the one place in only one direction and that is breaching china now mcafee does not name china but computer experts looking at the type of hacking done and the material being targeted say this is very likely the work of china china it's the bogeyman and it's returned in the shady rat scandal joining us from new york to help us that's why everyone wants to blame china is filmmaker and blogger at newsday sector dot org and sector danny good to see you. he learned thank you so much you know again people jump to conclusions without evidence that's something that seems to be very privy suv in our government right now and in the media we're you know the bottom line is so quickly reached without the evidence the release of supported now mcafee says the state actor may be involved but they don't name that

actor so why do you think it is the anti that people are jumping to the conclusion of china because even computer security experts are saying you know every time one of these reports come out people always pointing finger at china even though they can't prove it even though every country in the world is probably using the internet to spy so why is the mainstream media so quick to point the finger at china. well because they're smart over there i guess they have a pretty big infrastructure of technology they've been invested a lot of money in computer technology and computer and information technology and the like and they have been caught with their fingers in a cookie jar you know in terms of some of the google cases where chinese institutions were involved but it's easy to point a finger at them to look at what we're doing in our own country a recent survey said sixty percent of the american people think it's fine to have a cyber attack by the united states on any perceived enemy of the united states the

pentagon has set up a whole cyber command and they're preparing for cyber war you know knology is being used it was in iran you know by israel probably with the support of the united states to this able some of their nuclear plants or research facilities so we're seeing an increase of this worldwide as war and computers begin to be linked in the popular mind don't forget all these drone attacks are done by computer you know somebody sitting in front of a terminal in las vegas is playing a war game and pointing you know basically pointing out targets in afghanistan a lot of times those targets turn out to be wrong and civilians get killed so i don't think we're ready to actually indict chinee yet right right the democrats. and the mainstream media reporting that everyone speculate that you know china

behind it and you have a pentagon that has a laid out a cyber warfare strategy that is that it can respond militarily to cyber attacks that it needs to work more closely with private corporations and really. to protect its own i particularly which is a very large and history a growth industry as far as money can start a lot of money being that when. i'll get pointed at china and then does that kind of justify the pentagon's defensiveness and that is the need it's a place for that burka that it's very it's like an it's like in the cold war you know american military contractors needed the russians to be the bad guys and they could justify increased appropriations for their quote defensive measures now we've moved from cold war to cyber war but the same dynamic seems to be applying here we are you know if you see something happening but fight them over there the bad guys

there for justifies what you do over here and unfortunately media does not scrutinize american institutions in this way and this mcafee report of least i've read a report of it on fox is very sort of vague i mean it's saying seventy two networks were attacked forty nine in the united states they list the bunch of countries that may have been attacked doesn't seem as if they have a lot of detail here and yet they're getting a lot of news attention through this which of course is good for their brand and promotes it promotes them as a leader in cyber security they have a vice president of threat assessment how about that for a title really quickly though china does the same thinking ited states or at least people in china you saw the western rating agencies not downgrade the united states when they reached a debt deal though s. and p. so we don't know but the chinese ratings agency did gone did they downgraded us a sovereign debt thing they had heightened out of our washington belong to our

ability to repay its debt so what do you think china did that because it legitimately had a reason to or are they taking stabs at the u.s. as well. well i think you know i think you have game playing here but i think it is true if you look at the history of let's say moody's be giving triple a ratings to bogus subprime mortgage bonds and really propecia way to the whole financial crisis they're hardly a credible player in all this yet their forecasts are picked up by their media forecasts of other ratings agencies and analysts tend to be discounted and this is unfortunately a why so many people are so confused about what's happening in our economy because it's hard to get critical information just one word to anybody you think has a better air campaign the u.s. they get china or china. well i do you know for years the chinese had a. refined propaganda system i think the u.s. is beating them.