bellagio market in washington d.c. and here's what's coming up tonight on the big picture the dow jakes another nosedive increasing financial panic around the world is the u.s. headed for a double dip recession and we get out of this mess tonight to financial experts wonder advice what we can expect in the coming days then the largest recall election in this nation is taking place starting seven o'clock tomorrow morning in less than twenty four hours we'll know if wisconsin democrats can take control of the state senate and restore sanity to that torn apart state and free trade is

a scam i'll explain it and i still eighty. three days after the s. and p. credit rating agency reacted to last week's republican debt limit deal and delivered our nation its first ever credit downgrade the markets had their chance to speak during trading this afternoon president obama said this about confidence in our nation's credit worthiness after the s. and p. downgrade. markets on the other hand continue to believe our credit status is for a boy in fact warren buffett who knows a thing or two about good investments said if there were a quadruple a rate i'd give the united states that i and most of the world's investors agree. you would think maybe his speech writers wrote that

much earlier in the day because then the dow continued its plunge which it had opened the day with basically and ended up six hundred thirty four points down for the day it was the largest one day lost since the financial crisis of two thousand and eight and it was the sixth largest point drop in the history of the dow jones and the first time since last november if the market closed below eleven thousand points a while the guy who engineer the republican hostage taking that s. and p. credits for driving down our credit rating eric cantor is telling his republican colleagues that they need to stick together and keep holding the american economy. by refusing to cut even the billionaire private jet tax loophole so just how bad will things get in this new double a rated plus or plus rated america and who's to blame here's our hero offer his take on the economy and the panic is dr richard

wolffe economist and professor of economics emeritus the university of mass of massachusetts amherst he's also the author of numerous books including capitalism hits the fan the global economic meltdown and what to do about it dr wolfe welcome . thank you very much tom thank you for joining us standard and poor's s. and p. and their eight page report justifying this downgrade wrote and i quote we have changed our assumption on this there speaking of the probability that the bush tax cuts will be extended because the majority of republicans in congress continue to resist any measure that would raise revenues a position we believe congress reinforced by passing the act like i was that indictment of the republicans completely ignored by the mainstream media and most of the economists who are on t.v. comedy about. well it's become a habit in our country to fold the tent in the face of what the big corporations

and the wealthiest amongst us one they've enjoyed by far the largest tax cuts in american history over the last thirty years and especially since two thousand they don't want anyone to mess with their wonderfully reduced taxes so they've made it impossible for most politicians who depend on them for money to say anything about raising taxes so the republicans push it and the democrats caved in looking everywhere else but a return to the kinds of rates of taxation we used to have on corporations and the rich because that has become a taboo that nobody dares to violate well and in fact in one thousand nine hundred one there were the the average corporation in america that was profitable was paying forty four percent taxes today their pain eleven percent individuals who made more than a million dollars adjusted for today's inflation a million dollars in today's money were pain about four times the tax rate that

they are today. is that what it would take to fix at least part of his problem. well it would be mind bending not to raise that question the power of rich folks and corporations in america is shown by the small number of people that even know that our history is one in which we used to tax corporations and the rich much more that we stopped doing that and that that is one of the major reasons our government's budget is in trouble it's an amazing testimony to their power that nobody wants to talk about it and to move in the obvious direction to at least partly help the government by growing but at least part of the way back to what we used to do in the way of taxing wealthy folks and corporations are you surprised by today's market reaction to presume assuming that this has anything to do with the s. and p. downgrade and and the continued slide which matt drudge made

a huge deal of earlier of the right wing blogosphere while the president was speaking. did this surprise you do you think that there is a correlation of the. yes i think there's definitely a correlation and no it did not surprise me what standard and poor did last friday evening was a little bit like a child who points his finger at the emperor and tells everybody what everyone kind of knew which is the emperor has no clothes standard and poor's said the american dead is too high and the deal cut by obama and the republicans is going to make the already high debt too much high your everyone who pays attention knew it standard and poor for whatever complicated reasons and i don't want to defend them given all that they did in the great crisis of two thousand and eight but nonetheless they were saying what is the case and everyone who lends to the united states government and wasn't an idiot and few of them are realizes that the problem we're facing or

rather they're facing is that the more you lend to the united states government the deeper its debts here's the problem at a certain point the american people are going to say we don't continue to want to pay taxes that our government collects and shovels off to corporations rich people and foreign governments who are the main creditors of the united states we want the taxes we pay in america to be used to provide the services we need and we need especially at a time of economic crisis for a creditor that means you're confronting a future in which there's going to be a backlash of the mass of people as you already see in europe coming here really and we see and and a big concern richer richard wolffe thank you so much for being with us. thank you for inviting me i have more on what's at stake following the market chaos that day and what changes need to be made in our economy moving forward but first we want to

hear from you. our poll question today did the tea party get what they wanted on friday and our nation's credit was downgraded your choices are. a the republican plan to crash the economy is in full tilt boogie or be around a way out of this recession no droids here are going to town are going to tell us what you think the poll will be open until tomorrow morning. last week speaker that was john boehner bragged that he got ninety eight percent of what he wanted in the debt limit deal that didn't explicitly raise any taxes on millionaires billionaires or corporations since then the markets have gone into cardiac arrest on our credit rating has been downgraded mainly because there were no revenue raisers and beaners deal as the s. and p. report said we changed our assumption because the majority of republicans in congress and seemed to resist any measure that would raise revenues a position we believe card was reinforced by passing the act maybe speaker boehner should be reconsidering his words knowing what we know now president obama said

this about what needs to be done in the second phase of deficit reduction. i realize that after what we just went through there is some skepticism that republicans and democrats on the so-called super committee this joint committee that's been set up will be able to reach a compromise but my hope is that friday's news will give us a renewed sense of urgency but we need to do now is combine those spending cuts with two additional steps tax reform that will pass for those who can afford it to pay their fair share and modest adjustments to health care programs like medicare so will i do it for closing tax loopholes or the rich in cutting into medicare markets satisfy credit rating agencies and turn our economy around for more on this i'm joined by leo hindery managing partner of intermediate partners l.p. and chair of the economic growth programs smart globalization initiative leo welcome

. it's a pleasure to be here thank you thank you for joining us a gang of twelve is not democracy isn't it insane or is that maybe went on a word for congress and the president outsource their jobs and then agree to go along with every whatever twelve people come up with. well you got five hundred thirty five members of congress i would suggest that most of them would tell you it's undemocratic we know tom going in that the republicans have said that no matter what happens between now and the conference itself they're not going to address the issue of additional revenues and the tragedy of this last week with was not the downgrade from standard and poor's that was just a message from a messenger the tragedy was we passed a bill on monday and tuesday that tried to resuscitate this economy only through the cut side when we were having debates all through the process as to whether or not there was an appropriate rule for revenues and to put that in some perspective

for your listeners if you and i can knight had the best job creation program in the world but it took some resources and congress has told us and the president himself that we don't have the resources to put against the program we will not raise new revenues and that dysfunction is what standard and poor's and the markets are looking at askance but you've you've written several times extensively and spoken about something that seems like it could actually be a jobs program that doesn't involve revenue and that is to since the government represents about twenty percent of our g.d.p. government purchasing have the exact same rule that the chinese government put into place that actually many governments around the world have if not in explicit practice certainly explicit law certainly in practice japan and south korea taiwan and other countries of brazil does that germany does it and that is that your first source for any product that you buy has to be domestic in other words if the

federal government and was told if you're going to buy something you've got to buy u.s. u.s. made wouldn't that cause a lot of people to start manufacturing here to meet that demand. it would be an extraordinary boost for this economy it the tragedy is there's a lot of good programs that's called by domestique we're actually a member as you know the prominent member of what's called the g. twenty a group of twenty nineteen of those nations have very specific they're not they're not subtle at all they're very specific why domestic programs for their federal governments we don't we uniquely don't we know that the infrastructure in this country is a shambles we know that we can put an infrastructure bank together we could couple it with pride domestique it would put millions literally millions of women in back to work we have five million out of school you half of them with a diploma half of them with a bachelor of arts or a bachelor of science these are very very efficient reemployment strategies but

what the the problem is that we decided in the most cavalier fashion in the middle of this deficit debate that we would address none of them if you look back over those two weeks that ran up to the vote there wasn't a single discussion from the republican side about the impact of these programs these deficit reductions on unemployment and only cutting and tragedy double tragedy is we're actually going to add to unemployment on the order of one point eight million workers when government cuts tom it's very efficient it's not very sensitive it's not very friendly but it's very efficient so about one point eight million women and men working in the government are going to lose their jobs by reason of these cuts on top of the twenty nine point two million that are in real terms unemployed today so this was a disaster and it and the only indicator that you should trust right now are people like standard and poor's no matter whether the analysis was could have been done better or not the markets are simply telling the american people that we have left

our economy to stagnate stagnate for another several months perhaps another couple years dr henry thanks so much for being with us. my pleasure it's a pleasure to be on the show with you and your your insights are our most valued thank you here are some more words from the president this afternoon. we knew from the outset that a prolonged paper over the debt ceiling debate where the threat of default was used as a bargaining chip could do enormous damage to our economy and the world's yet that's exactly where republicans in the house let it happen and now we're seeing the consequences of it's a bit in fact shell bachman's followers may even think it's a sign of the devil if the s. and p. five hundred index fell six six six six point six six or something but if so the devil's in the republican party which is also flipped upside down the american stars on their logo seriously though this is really all part of

a much larger strategy here's how it works in in movies when you see a hostage taking taking place you know in movies or on t.v. shows usually know that because they're good guys and they come in and they figure out a way to negotiated in rescue the hostage but in real life sometimes the hostage guy it's maybe we're looking at something like that here the republican strategy frankly and they've been many of them have actually been pretty upfront about this is to crash the economy the economy and then blame president obama running against a bad economy in two thousand and twelve in fact right now we have five hundred thousand government workers in the states that have been laid off and all those that many at the federal level that have been laid off since president obama came into office if those people had not been laid off and the ones in the states are almost exclusively laid off in the twenty four states are controlled by republicans if they had not been laid off right now the unemployment repeat eight point four eight point four percent things would be much better so any of this is what but but

when the tea party sees that you know things are going along their hostage taking is going on they get really excited here's a clip. yes i ready to. play mean then trade down on the. cheap tell me. yeah it's a tea party downgrade we're probably. i mean they're there they're doing it with the tea party you know the republicans are doing this with a series of basically hostage of that's the goal though isn't just to get their way though the big picture here is that they want to make president obama a one term president that's the bottom line it's because said that the day obama was inaugurated he repeated it three weeks ago on meet the press so if we're the hostages and and we are by the way they're willing to kill us and it turns out it's a literal not as well not just metaphorically as james gilligan is going to tell us a little later on in the show when republicans are president there are more

homicides and more suicides because of these economic policies all just to get political power and do the bidding of the billionaires who fund their campaigns america right now is on the edge of becoming a plutocracy thanks to the supreme court and their citizens united ruling which has given billionaires and folks like karl rove who can tap into them and channel their money fast political power completely unaccountable and totally nontransparent totally opaque we have to do something about this and step one is waking up the american people. still become a major recall election is going down tomorrow in the union busted state of wisconsin can democrats win back control of the state senate restore democracy my next guest will help me answer that question right after this break. what drives the world the fear mongering used by politicians who makes decisions to

break through a bit through who can you trust no one who is in view with of global machinery see where we. having state controlled capitalism is called satchels when nobody dares to ask we do our tea question more. judgment day for was causing governor scott walker's agenda is fast approaching in

just twenty four hours polls will close in the badger state where six republican state senators are fighting for their political lives and recall elections is the largest recall election this nation has ever seen and democrats need to win three out of the six races or at least three to take control of the state senate and put the brakes on scott walker's anti-union agenda for good republicans and their fat kerry campaign donors aren't going down without a fight spending on the recall elections has topped thirty three million dollars breaking a previous record of election spending set in two thousand and eight when twenty million dollars was spent and that was when every single assembly person at the entire all the state senators were up for election this time there are only nine elections and most of the money is coming from outside groups like the koch brothers funded americans for prosperity karl rove's group as well as unknown donors thank you citizens united the supreme court ideally codes conducted polling

in four recall elections against republicans and found it in two of the raises one democrat one republican were her favorites in the other races it's a toss up so what's going to happen tomorrow. for more on graham i'm joined by graham's olinsky communications director for the democratic party of wisconsin graham welcome. hey tom great to see so what's the energy like on the ground in wisconsin today and today it's a it's unbelievable i've been appearing at one of the campaign offices for alberta darling she's one of our well pretty known were fighting against poverty during excuse me it's been a long campaign. campaign for a city crashes one of our great recall senators and it's unbelievable the top there re mark for ships we've had record numbers of contacts ships people are flying out the door new indoors getting in literature dropping literature banging doors ready to win this thing it sounds like you've got a lot of basically kind of people power energy go on their gram. i'm thirty million

dollars is being i mean this isn't even like helicoptering money and it's like flying c. one thirty's over and dropping all the allies and you know you don't you're actually right with all the shady money that's come in here on behalf of scott walker look they're protecting their investment they bought and paid for this legislature he bought and paid for scott walker they're protecting their investment the problem is that the people of wisconsin woke up and so i wouldn't extreme overreach it was not just him collective bargaining for workers but to do a massive assault on the middle class and things that keep the middle class strong like education like health care for our seniors and for our children our and our elderly and people saw through it people saw through the ruse if people are getting out there and don't don't forget time i think you know that we're fighting on their turf we brought to the fight to them these are six republican districts all which would have for scott walker and in fact there were even here having this discussion is a testament to that effect that not just democrats but republicans independents to

have said enough of this agenda well then that's my next question is there's all this vibrant people power energy on the democratic side on the ground all across the state i've been hearing from from callers today my radio show from from you know others other people i've interviewed i'm curious on the republican side are they just rely. you know millions of dollars from karl rove and the koch brothers and carpet bombing the state with television ads or have they been able to mount a tea party based or or republican grassroots based door to door get out the vote effort like the democrats are or is the is if you haven't you know europe you know you're a big fan of tea party i want to tell us some of your your friends from the tea party were here this weekend they drew dozens it's the koch brothers express to keep through the interstate and they said some pretty crazy hateful things comparing. the holocaust and i think some other things to see what's going on in

politics they stuff it's totally out of bounds as you would expect with the koch brothers funded groups but there they have to rely on fear and that's the only motivator they have left because even republicans independents virtually the whole state has rejected the scout worker agenda no matter what happens tomorrow night scott walker has lost any authority to govern people have seen through him this movement has served to end the status quo the status quo is no more here in wisconsin as a result of this recall movement no matter what happens tomorrow one hundred eighty thousand people came out in the snows of winter in republican districts to sign recall petitions against the senators and tomorrow it's going to bear the fruit of that we're going to go on beyond tomorrow and beyond next week we have to defend to our bare democratic senators and we're going to go on and we're going to be cost out walker himself and this is part of a people part movement we think hopefully hopefully we wrote the playbook on how to fight the put the koch brothers we wrote that playbook way here in wisconsin with

republicans democrats independents who said no to this corporate agenda who said enough to tell him to middle class to do less with less and up with these bad values that put corporations over people who put profit over our duty to care for our brothers or or sisters. it's like you're the reincarnation of fighting bob in in the ten seconds we have left is there a web site that people can go to who out out of state who might want to help do a little phone bank looters or is all sorts of ways to help it w w w i wish downs or g w w w which stems that orgy great says in wisconsin dems d.m.'s or thank you graham i was going to grade it indeed now only well at least three democratic victories tomorrow shut down scott walker's agenda will also keep the momentum going for progress is to launch one more recall election next year that want to get the big fish and so off scott walker will be keeping a close eye on this story now again just as it has with so many things

there's more to this story. karl rove you know the citizens united decision that the supreme court just passed created a really interesting thing called a rope and the coax actually needed this recall election in a way it's worked very well for them the reason why the supreme court of the united states the skoda has created this huge vacuum with citizens united what they said was that corporations are people and money is speech and corporations can dump unlimited amounts of money and speech into political campaigns and so then the question was ok who's going to step up and do it there was that vacuum and so how to fill it out people who fund clarence thomas' wife's ginnie they you know they have some ideas the heritage foundation is of the right wing think tanks that are funded by the koch brothers and others but they're not sure which ones are going to work which ones are going to work best which ones will work worse so they need to test them wisconsin is their testing ground and the questions that they have how

could how far can they go with their lies how can they thought you know what to what extent does innuendo work habits snorers you know in the bill do you do you build up your side or do you try and destroy the other side there's a lot of good questions here about you know last minute for example unanswerable charges most of most of this stuff has been tried for a long long time in american politics but never against a really ferocious pop it was movement i mean basically the entire state rose up over one hundred thousand people showing up at madison this is not like your average political campaign where people are basically getting their news on the couch watching the commercials in the three weeks before the election this is how do you the question that the koch brothers and the karl rove and others are looking at is how do you push back against a genuine populist revolt this is their laboratory so you know what what words will neutralize the anger about for example privatizing medicare every republican in the house of representatives is now on the record as having voted to

privatized to end medicare as we know it how do you push back again. that they're not really sure this is their testing ground wisconsin is a thirty million dollars focus group which when you consider that this is probably the national election coming up in a member of next year the presidential and every member of the house of representatives a third of the senate up for reelection is probably going to be at least a three billion dollar election thirty million bucks in wisconsin to do the focus group not a bad price and the stakes are literally the future of our nation so get involved ok. crazy alert sarcasm hits the internet in an effort to bring greater clarity to future online conversations three new york in terms of created a new font called starts alex responding to the numerous times that someone tries to be sarcastic on the internet or gets burned because it's impossible to pick up their own when reading it off a computer screen so it's alex is

a useful tool to let people know that you don't actually mean what you just wrote by simply putting your sarcastic comment in between two backslashes your words will slam to the left that way whoever you're chatting with online knows that you're saying the exact opposite of what you just wrote and thought doesn't actually exist yet at the internes have watched a twitter blitz aimed at the top executives at google twitter facebook microsoft under yahoo and apple to get these internet giants to add to their e-mail and message applications and they put out this you tube video to campaign for their cause they have sarcasm fahnestock the words without any thought on any platform it's called start telling left leaning on the subtly say hey it's ok i am being sarcastic no need to get upset. in the future if you're able to send start to tell the size emails to your family you can tell your great. grandparents ever since you help solve the world's greatest crisis. but i can see

a bunch of other uses for starts alex from now on every single piece of legislation that republicans claim will help create jobs and improve the economy could be written in startup next. coming up in our next half hour for the third consecutive day london continues to burn the firestorm is set off by the recent shooting death of a young black man but police combined with austerity measures is us have a similar recipe for disaster. i'll ask my next guest after this break. what drives the world the fear mongering used by politicians who makes decisions it's going to break through get through to be made who can you trust no one who is your view with the global machinery see where we had a state controlled capitalism it's called sasha's which.