take the lead looking for central banks to take the lead they're waiting to see what the people bank of china is going to do with their reserves what what global central banks that are trading partners with the u.s. would do because i'm not the reason i ask that is because it would seem to me that there are not written right in our place they've experienced help pump this bubble up so high this point that they depend on a consumer they can't afford their own goods so they have a political problem which is a plate is that's exactly right it's a political problem because. investors in banks around the world are dependent on a currency and a bond that unanimously people agree is unsustainable because of the deficits that the u.s. government has been running and the the entitlement problems that we foresee but are unable to address address politically and also just the mounting interest that we need to pay on the the existing debt these are problems that have been politically impossible to even discuss and yet you have all these reserves around the world waiting to see what's going to happen and

. >> reporter: its first director is a former senior of the people's bank of china. he also held senior posts at the asian development bank and the international monetary fund. amro's roots can be traced back to the asian financial crisis of 1997. taking lesson from that event, asean plus designed amro to perform a surveillance function. it urges other member countries to take remedial action if and when it detects signs of crisis. he predicts europe's debt problems will cause growth in asia to slow in 2012. but he says the asean plus region will remain an engine of the world economy, led by china and indonesia. >> markets might be affected and naturally this region also will be affected. and i'm hoping the asean plus three countries as a group could continue maintain their growth moment momentum. we should be able to achieve about like six points, sorry, 4.6, 4.7%. >> what about recurrence of the crisis, again, in this region, like asean currency crisis. don't you agree that or not? >> financial sector are really much, much stronger than they were in asian financial

. >> reporter: its first director is a former senior officer of the people's bank of china. he also held senior posts at the asian development bank and international monetary fund. mro's roots can be traced back to the asian financial crisis of 1997. taking a lesson from that event, asean plus started mro to perform a surveillance function. it analyzes the financial climate and urges member countries to take remedial action if and when it detects signs of crisis. wei predicts europe's debt problems will cause growth in asia to slow in 2012. but he says the asean plus three region will remain an engine of the world economy, led by china and indonesia. >> we'll take time. market might be affected. and naturally this region also will be affected. and i'm hoping the asean plus three countries as a group can continue to maintain their growth momentum. our estimate is we should be able to achieve above like 6 point -- sorry, 4.6 or 4.7%. >> worrying about recurrence of the crisis again in this region like asean currency crisis. don't you agree that or not? >> financial sector are r

. >> our next building is the bank of china which was built by an architect from the states who apparently didn't realize that the diamond designed exterior is a negative shape in feng shui, and the diamonds were pointed directly at the governor's house. >> and the governor lost his job, so they built a swimming pool between this and the governor's house so that the water would take away the negative energy. it didn't work. the replacement governor had a heart attack. >> today the bank has a moat around it. >> you notice the fish are mostly different shades of gold, and they represent, of course, gold flowing around your life. so, definitely a prosperity theme at this bank. >> as an example of how seriously hong kong takes feng shui, in recent years, the city has spent more than $8 million compensating people living next to construction sites because all that activity disturbed their feng shui. nury says some people go a little overboard when it comes to feng shui. >> if you move your desk over here a bit, you know, suddenly grandma will feel better. you know, if you move your desk a bit t

the problem that bush has done it over the last eight years is take out a credit card from the bank of china, driving up our national debt from $5 trillion for the first 42 thes, number 43, added $4 trillion by his lonesome, now we have over $9 trillion of debt that we are going to have to pay back. $30,000 for every man, woman and child. that is irresponsible. it's unpatriotic. >> i'm sure president obama never thought it would come back to haunt him. he probably didn't see the five coming back to haunt him. now. >> bob: i think of all his campaign speeches, that one should never have been given. that was not a fair word to give to george bush. >> dana: thank you, bob. that was very nice to have you. >> bob: i don't like it on either side. george bush had $4 trillion which $3.5 trillion was automatic. same thing with obama that there are certain entitlements drive the budget up so fast that none of us have control dull democrats and republicans have the courage to step up. >> that is why it's amusing that president obama that president bush did this all by his lonesome. >> it's true they ha

. >> the way bush has done it over the last eight years is to takeout a credit card from the bank of chinae name of our children. [ male announcer ] juice drink too watery? ♪ feel the power my young friend. mmm! [ male announcer ] for excellent fruit and veggie nutrition... v8 v-fusion, also refreshing plus tea. could've had a v8. 8% every 10 years.age 40, awe can start losing muscle -- wow. wow. but you can help fight muscle loss with exercise and ensure muscle health. i've got revigor. what's revigor? it's the amino acid metabolite, hmb to help rebuild muscle and strength naturally lost over time. [ female announcer ] ensure muscle health has revigor and protein to help protect, preserve, and promote muscle health. keeps you from getting soft. [ major nutrition ] ensure. nutrition in charge! megyn: the white house weighing in on new predictions that we'll run another trillion dollar deficit this year for the fourth year in a row. i'm megyn kelly. the report predicts the economy's output will remain below its potential until 2018. unemployment is predicts will be stuck above 8% for at lea

. >> president obama himself, bill, in 2008 said, you know, this is like taking a bank of china credituing to run it up. that's who is giving us the money. our children are going to pay for it. it's utter madness. this gets by the way through the election so they won't have to have this discussion about debt again. >> bill: is there any excuse for president obama allowing the debt to rise 43%? because they will say if we didn't do all the stimulus, the car companies would have collapsed, the banks would have collapsed, it would have been 1929 all over again. we had to do it. and that's why the debt went up so much and you say? >> and i say the war in iraq has ended. there should be a peace dividend as a result. those savings should really be be applied to the national debt. we're talking upwards over the course of the next five years a trillion dollars that should be applied directly to that debt. neither party is talking about the peace dividend and what they are going to do with it. and this administration should be talking seriously about con strange government. reducing the size of

china banks for a moment. interesting story coming out of china. apparently there's a cash crunch in china. nks are running out of the stuff because it's chinese new year. what we've been seeing are huge amounts of withdrawals from regular chinese plus bonus payment time in china. and all that's led to a shortage of the currency. the yuan. when the demand outweighs the supply, interest rates go up. interest rates are now at a record level. they hit 8.2% yesterday. that forced the central bank to pump about $27 billion into the china bank system, just to make sure there's enough cash for chinese new year. >>> now, a meeting by nuclear experts and government officials in japan is sparking public outrage. they're considering restarting two reactors at the power plan in the japan, fukui prefecture in the western part of the country. if the startup is approved there will be the first reactors brought back online since the devastating earthquake and tsunami of last march. just describe the public backlash to the possibility of these plants coming back on line, kyung lah. >> reporter: there's a lot

problem is, the way bush has don't the last eight years is to take out a credit card from the bank of chinae name of our children, driving our national debt from $5 trillion the if you are 42, number 43 added $4 trillion by his lonesome. we have $9 trillion of debt that we are going to have to pay back $30,000 for every man, woman and child. that's irresponsible. it's unpatriotic. >> we can choose another four years with the i am reckless fiscal policies that busted our budget and wreaked havoc on our economy and mort gained our children's future with mountains of debt or we can restore fiscal responsibility. >> we need to confronts the cost of our independence on foreign oil and healthcare. megyn: what a difference a few years make. america's debt limit is about to go north of $16 trillion with no end in sight. and it's president obama seeking the increases. matt mccall is president of penn financial group. now we are going up to $1.5 trillion in debt. a lot of people believe it's because of president obama's policies, but as a realistic matser in this kind of economy did have any choice b

the former executive of china's central bank now the director of amro expressed a strong sense of caution about europe's present financial situation. >> the urgency to reach our consensus cannot be overemphasized in order to strengthen the regional financial safety net. i sincerely hope that amro will have safeguard the asian plus three countries from these global uncertainties and make contribution to the stability, growth and prosperity of this region. >> reporter: he pointed to the need for making the fund more accessible as well as strengthening the system to prevent a financial crisis in asia. amro serves to act as a regional safety net that remains vigilant under developments in europe and the world. >>> china has been plagued by a series of fatal accidents involving school buses. many of the incidents are being blamed on poor safety practices especially in rural areas. this issue may ignite fierce criticism of the government. >>> on december 12th, an elementary school bus filled with students crashed into a ditch in a remote county in eastern china. 15 children were killed. it was

the way that bush has done it over the last eight years is to take out a credit card from the bank of chinanational debt from 5 trillion dollars, the first 42 presidents, number 43. added 4 trillion dollars by his lonesome so that we now have over 9 trillion dollars of debt that we are going to have to pay back. and $30,000 for every man, woman and child. and that's irresponsible. and it's unpatriotic. >> unpatriotic. peter mauricesy is an economist and business professor at university of maryland and joins us live with the next raising of the debt ceiling. welcome to the show. >> happy new year e when you hear the president saying that when he was candidate obama in 2008. does it outline the necessity-- this time around it's flip no flopped. >> over the last hour years the democratic congress and the president has raised spending over a trillion dollars and not half of that was necessary for inflation or a more elderly population. and this is absolute hypocrisy. >> so the public debt right now. take a look at this, 43.4% since president obama's inauguration and that's 4.6 trillion dollar i

in may, one of china's largest banks opened two branchs in pakistan to boost investment in the country. as the two countries strengthen ties, more businessmen are trying to poll ish their chinese language skills. the president is trying to promote a government led program to teach chinese in schools. the president's home province of sindh announced in september that it planned to make chinese in schools from 2013. at present, the schools in sindh province must teach a total of four languages including urduh and english. if chinese is added students will have to study five languages at the same time. the province also has 5,000 public schools. securing enough chinese teachers will not be easy. at a meeting at this school many teachers oppose the interjection of chinese classes. >> translator: the kids already have to learn so many languages. it will just be an additional burden for them. >> translator: the country can advance even if people don't speak a foreign language. >> reporter: the education ministry of sindh province has since dropped its plan to make chinese compulsory from 201

of many financial institutions. it is the fifth largest bank in china that has now opened their office on the market street. that is to complement what we're doing your business-wise. that is along the lines of what some of the smaller agencies are doing. you will hear more about this. dottie's blues cafe will be around the corner. we're committed to the six st. sub-station. you are already seeing the community ambassadors walking the streets. they are greeting people. they're getting to know everybody. please know them by first name. they will be your partners to make everybody feel safe along the street. i have to thank act for taking this opportunity, activating the space, making it available. i know you are an educational institution as well as a performance institution. your masters of the arts program will be delighted to embrace your best grant students as they perform here, really get their education started. it is the performances and people you bring your that well and live in the area. -- that will enliven the area. i cannot remember what i did with "butterflies are free," but i do remember the ex

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china has already started monitor easing back in november of 2011. throughout 2012, we're expecting more measures to come out of beijing, for example, they will continue to cut the bank reserve requirement ratio. in addition, we're expecting china to adopt a much more proactive fiscal policy in the form of tax cuts. >> well, the economy is gently deceleratiing. in some areas, for example, in the smes, we're seeing quite a lot of deceleration. in other areas, for example, the deceleration is much -- is what the government has desired for. so exports are slowing. so this time around, we're going to see the central government using a much more nuance policy compared to three years ago when they really launched a very large-scale spending program. >> so what do you think the profile, then, of the chinese economic growth is going to be in 2012? it will continue to weaken before it gets stronger? >> that's right. in the first quarter, 2012, we may see growth rates dip below 8%. for the whole year, 2012, especially starting in the second half, we will expect growth to resume the steady pace of growth. so for the full year, we're still expecting 8.2% growth. >> 8% has always

of will come. trying to open up italian banks could be a problem. >> turning to china, it is all about to kick off, isn't it? >> monday starts the year of the dragon on the chinese calendar. i love this story. it is very interesting. on monday, a lot of the asian markets will be closed for the public holiday. asian investors will take a full week off on holiday. when they return, they could return to a roller-coaster ride on the markets if you believe the chinese words could occur -- experts. the -- the chinese horoscope experts. i ...a feng shui cattaragus x probiotic who will tell us about 2012. listen to this. >> the first half will be lackluster, like 2011. the real turning point comes in august. one must remember when the dragon appears, it is considered a game changer, a watershed event. if you look at the previous five years of the dragon, on a matter if the markets are up or down, -- no matter if the markets are up or down, it is preceded by a sharp turning point. it is very dramatic in general. >> either ballistic or tumble. i could have guessed that. >> it takes a while for the dragon to

of an ongoing dialogue with china. the u.s. passed a law last month banning financial institutions from doing business with iran's central bank essentially targeting the country's oil trade. >> as we seek to implement this new legislation we're encouraging all countries to do what they can to reduce their depends on iranian crude oil. >> china imports more iranian oil than any other country in the world. so far it has adopted a negative stance over the proposed embargo. u.s. president barack obama is on a three-day tour of politically important states to win oover the middle class vote. in an interview with abc news on

what is reasonably a crude criminalise zeeshan operation of anyone who tries to do deals with iranian central bank well russia will ignore it china will ignored south korea which one of the dr importers of your own energy will ignore all other countries in the middle east and slaton america or a central asia like turkmenistan they do or guess webster instance will ignore it the saying is you run is going to be paid for its energy in the third party accounts in different accounts with the banks in turkey for instance in you one by the chinese in venezuela they have already an agreement so this is are not actually going to bite so why have they been approved in what and for what purpose in fact. they track israeli lobby once again so they're trying to ratchet up the rhetoric and ratchet up the economic sanctions against iran trying to push the west in a little extra a year to go to war in iran which is the variables are so infinite that you can't really know if there's any small measure of success in the end so it's not going to work basically so this is how we start to thousand and twelve and some call these sanctions an act of wa

back to you in the previous program you talked about the rise of china what about international institutions i mean the i.m.f. the world bank i mean again and now invoke the term the west with the understanding of what you're caviar to use but you know we have we have rising economies around the world that have ridden out this global recession reasonably well and they want more of a stake at the table they want to be shareholders here is this you think another benchmark or milestone that we could see is that will see the others the outsiders moving in to take take a greater place in in western institutions or will these institutions suddenly unravel we'll have new more global i'm sorry more regional institutions that deal with regional issues. well i mean i think when you're talking about the so-called bric economies countries like turkey or brazil which i think are two of the major major examples of this not not the biggest economies in the world a level like china but certainly becoming very powerful and they've outgrown the need to deal with the i.m.f. and the world bank as clients and in fact are much more stakeholders