if you are a strong economy you can and force government the when you are a weak economy, when your economy is in shambles like ours is, you can't afford it. we are too broke to afford it. all the time the weekend afford more government for bigger government, is right now. if you talk about shrinking government, we can't do that, we can't shrink government because if we lay government workers off there is more unemployment. temporarily, maybe, but how are government workers gaining unemployment? they are usurping resources from the private sector. those government jobs exist at the expense of private sector jobs, at the expense of jobs that might actually produce things because government workers aren't producing anything. that has to come from the productivity of others. if people were actually producing, the lower our standard of living. we are not going to continue to confine and the rest of southeast asia and the world, not just production goods, look at the oil we import. we will not import all of this oil and they for it with paper. that will come to an end and prices are going to go

where is the ent to this phony economy.et's balance our trade deficit. >> i hear what you're saying. >> how about that? let's give our savers and retirees better than 1% for their savings. that's what i'm earning in the banks. >> all gold foreshadows is what specklators think it's going to do tomorrow. >> gold is foreshadowing the fact that the country is depreciating the value of our currency and its purchasing power. it's not only losing its value against gold, it's losing its value against six other -- >> since melissa is insulting all these free market indicators -- >> melissa. you have to sit next to him. >> trish, i got bruises this morning. john harwood, let me ask you. in terms, coming back to president obama, is he going to tout the economic recovery, john? >> think he absolutely is. larry, all i can say is you've forgotten more about the relationship between the economy, the stock market, and economic indicators than i'll ever know. i'm bound to your expertise. >> john, let's talk politically. he's got some real i

how the battle over the healthcare reform is saving the economy. now they are leaving american to get the american dream? >> good morning, my neighbor. >> top earners bolting for better pay in other countries. where are they going and who is trying to stop the brain drain? it is an outrage alert. hollywood hypocrisy hits a new level. >> why is obama trying to abort healthcare? >> aren't these the same movie stars making millions working on bobs office disasters? all that and talk about a big pay day. american men willing to work for sex? >> you want to be my pimp? >> it is good work if you can get it and we have it here and only here. your money, your life, your show to stay ahead of the game. "cashin' in" starts right now. >> mr. chairman, i'm not delaying. i'm making an extremely important point. >> it is very important point but you are delaying. terry: tempers flaring as fighting over the healthcare bill hits a boiling point pushing the global warming bill to the back burner and someone here says that is helping save our economy. our crew this

you know, people ask me, is it a v economy, a u economy, i essentially like to call it the swish economy. like the nike swish, it's just going to go up very modestly over the next few years. and it's going to be better, but it's not going to be what we expect after a very severe recession. >> the swish is a new one, actually. >> the swish. >> rovini said it could be double-dip because of worries about the exit strategy from the federal reserve, and what happens with inflation, or commercial real estate is another issue on the horizon. where are you on those issues? >> i agree that we can't have an inflation threat. the inflation threat, though, i don't believe is going to be anytime soon. as i said earlier, i think the federal reserve is going to keep interest rates lower for a longer period of time. there's so much excess capacity globally, that i don't believe t the -- that we're going to have really any inflationary threats. we have -- and so we -- the double-dip, in my opinion, is not through inflation. i don't see that at all. i think inflation could be a problem out two or three ye

the main street economy and wall street economy. what my colleagues picked up here, they interviewed people unemployed for the last 12 months who don't have unemployment insurance. these are people having great difficulty. >> you think we'll see even more people needing to get -- >> that's right. several estimates out there, i believe by the national employment law project where they estimate like this month, half a million americans are going to come up to the end or the exhaustion of their unemployment insurance benefits. these aren't even just the regular program. this is the emergency programs. by year's end you're looking at about a million and a half. >> what we're looking at here, bill, we're looking at over 30 million people in this economy who don't have work. >> ready, willing and able to work full time but they aren't. >> it's probably a good sign that they're feeling kind of depressed. those are not normal economic numbers. you should feel feel depressed and pes mistake. >> several points here. one is that, yes, i think

and restrain the economy within that. unfortunately we are not doing that at all. looks like copenhagen will not take on that question directly we are in a dire situation. >> reporter: let's talk about the meeting of world leaders going on today. the president is going to pittsburgh to meet with g-20 leaders. they will spend two days talking about the global economy. what do you think should be number one on the agenda. >> join the global crisis and match it to the planet crisis underway and link them expolice zitly. we think the present system can't answer five questions what's the economy for, how does it work, how big should it be, and how should it be governed and what's it is for is social and planetary stability. how does it work, subject to the laws of science. how big should it be, not so big it overwhelms the earth's natural systems. this economy is overwhelming the systems and the g-20 will try to make it bigger. this is a suicide pact underway there in pittsburgh. what is fair is going to be fair to future gene

we said, ok, maybe it is not the same level of an economy as the american economy or the same as the european economy, but it is bigger than many of the country's which are members of the g-8, like canada, italy -- the russian economy is bigger. if we talk about the figures, it is bigger. and in terms of energy security, the russians can bring a lot to the global development. then we said, ok, it's something wrong with in this format. all they talk about that g-7, talking about the only financial global issues, and then at the same time we invite five more states every year, the outreach format -- china, india, brazil, and mexico, and this year even more. it means that the g-8 cannot cope with all these problems. our canadian colleagues, they repeated it -- 50-20 is the future -- that he g-20 is the future. we need to shifted from the g-8 to the g-20. we believe the debt with them both -- we believe that within both, russia can bring a lot to the global economy, given its resources, well-educated population -- because we have a very well-educated people. if you travel a lot and compa

i really do think we had a very massive shock to economy. and to some degree, it is going to be a permanent shock or at least it's going to be a very persistent. the notion that the level of output is going to get up to some path that we were on before i think is pretty -- i's probably not true. i think our trend path or potential output is lower than we thought it was just a couple of years ago. that means that we're not going to get this really, in my view, this really sharp, you know, 4%, 5% rebound that sometimes you see after recessions. we have more of a steady growth rate back to what the trend was that perhaps not the strong rebound that sometimes we see after recessions. >> in terms of the most critical part to that recovery, the business investment? is it the consumer sentiment and spending or what? >> all of the above. all of those are clearly relevant. >> my thanks to charles plosser of the fed. coming up next on the "wall street journal report" counting the ways you can save money when it comes to finances and your family. every

that's my take on our economy. because although we have positive growth, the economy is still losing jobs, and destroying jobs. and to me, the crisis will be over if two conditions are satisfied. one is, the economy creates jobs yet again. and second, we've thought it out, the financial sector, by regulating that particular industry. which is very, very special. >> where would you say is the growth right now in france? >> we've got three engines of growth. one is consumption, and the french consumers have continued to cop assume. not massively, but it's been a sustained growth. so we hope that that will continue. we've supported the automotive sector by putting in place this cash for clunkers system which has worked very well. the second engine is exports. exports is a bit weak, so we really need to boost that and encourage french companies to go out. and the third engine is investments. on the investment front, we decided part of our stimulus to invest public funds into projects, into renovating roads, bridges, ca

"the financial situation cannot keep the economy humming." "economy strains." "bankruptcy looms." "governments brace for hard times." "new lines of food banks." we knew that action had to be taken. we had to stabilize the financial system. we took the necessary step of rescuing the banks. eight out of 10 of the largest financial institutions in america as well as 16 smaller banks have repaid the government in full, and with a $4 billion profit for the taxpayer. we took action to stabilize the housing market. we're beginning to see the results of that. new housing starts rose 10% in july. we are moving. 200 days ago, president obama signed a law. the american recovery and reinvestment act. it is working. don't just take my word for it. analysts and others estimate the recovery act is creating between 5000 and 750,000 jobs. some say it is as high as 1 million. economists say the package headed two percentage points to real growth in the quarter. 3.3 percentage points to the current quarter. i highly respected economist and former campaign aide and roche, "the fiscal stimulus is fodd

and the economy was hit badly by the crisis. so three things happening: recovering,decentralisation and democratisation. but now ten years after the reforms started, indonesia started to look at the international world and trying to put itself somewhere in the map, indonesia is peaceful, religious, democracy and friendly to the world. >>sager: we have seen peaceful elections and president yudhoyono re elected. what are the key challenges in the second term? >>baswedan: short term, is infrastructure, because that would guarantee the expansion of the economy. number twois decentralisation of the market, ensuring there are quite a few engines of growth across the country. three is education, ensuring that the young indonesians, many of them, are educated three is education, ensuring that the young indonesians, many of them, are educated properly, quality education, so that they can participate in the market. when we often, indonesians often see ourselves as a very rich nation because of the minerals, oil, gas, that is present here

when the economy is barely bottoming out. in my view the markets have been rising too much too soon relative to economic underlining fundamental, and for this reason, there is a slosh of liquidity now chasing assets. equities, commodities, oil, credit, and that's rising essentially these assets prices more than is justified by the economic recovery. i think there is still a risk by q4 or q1 of next year of a contraction in asset prices of stock markets, a correction. >> a number of people have looked at china as sort of the savior for global growth. we are talking about growth in china back to 8% or so, if you lis on the somchai na watchers there. how important is china? you've made the point that, yeah, china is growing, but it's not going to be big enough to really take the world out of the slump. >> absolutely. it's growing for itself, but it cannot be the main locomotive or engine. total gdp is $3 trillion while the total gdp of the u.s. and japan is $40 trillion. $1 billion chinese -- while american consume $10 trillion.

and we won't be replicating the old economy whereinancial economy did well but the real economy did sopoorly. you will see us doing that. you silsee utaking a sharp edge positions where we say this is where we stand. sometimes i think our friends needo go back and take collective bargaining 101 because you can't put out a proposal and have thether side sano if you like this, try this and they say no. well, try this. you don't bargain with yourself. frequently we've seen some of that. you will see us try to stop that from happening. you will see us helping the president a cgress do what th need to do in their heart and in their head but they need the political marching. we will be there nudging them from this point on i think. >> let's see, i will take a question over there. the gentleman in t back. >> mark, press union news. u mentioned your other top targets as organizing minorities and specifically african-americans. can you ve us some nuts nd bolts and are there other minorities you want opinions to organize? >> you know, mark, bincluded other minoritiess well a i also said women be

demand driven economy, while the united states wants to become more of an investment and savings economy here at home. those aren't going to be easy to accomplish and there will be a long arc on those changes. that's what we thought was going to be the news of the summit. a lot of work put in ahead of time. as well as the continued progress on the issues of climate change and free trade. which is somewhat embarrassing for the united states given the china decision a couple of weeks ago. >> john, nothing is binding here. what in the end does it really mean is this nothing, right? >> as for binding, zippo. it is a piece of paper. and, you know, policy gets made in small bits of exhortation. the companies will act in their self-interest anyway, which is the case on some of those financial executive compensation issues i mentioned, or bank capital requirements. coordination is important, because the economy is soists connected. but we haven't moved out of the age of sovereign nations, and their acting in their own interests. >> the official communique is out. we're going to start typing in t

but the question would still be the western economies are still a major part of the world economy. can we move out of a sort of bouncing along the bottom recovery and move to something stronger? >> final question. what would you like to see come out of the g-20? what would you like to see that you walk away and say this is a success? >> i mean, i think what happened at the london summit was very important because it gave us clear direction. i think what people want to see this time is a continued clear direction. a sense of coordination, coming together, the major economies of the world. at least agreeing on a basic framework for global economic policy. >> and my thanks to tony blair for joining us today. coming up next, we'll tell you what might move the markets tomorrow when that opening bell sounds. we'll get you set for tomorrow's trading session. and tomorrow please join us for my one-on-one interview with the president of brazil. lula will join us tomorrow. we will ask him if he thinks his country can sustain its red hot economic growth. another "first on cnbc" and an exclusi

there are two economies out there. there's the real economy and there's the financial economy. the financial economy was originally designed to help the real economy do things. somewhere along the line over the last 25 to 30 years those lines have gotten blurred and the financial economy thinks its an end to itself. to the people at the very top it is. and they've done exceptionally well, but our country, each of the states, all the counties, all the municipalities, all the workers, all the retired people and all the children have paid a heavy price for that. it's up to us to turn that around, all of us, collectively and try to start to produce things again, try to create good paying jobs. look, the question we need to ask time and time and time again, when somebody says let's stimulate the economy, ask them, to what end? because if all we're going to do is create the same economy that we had before, the same result will flow from it. less manufacturing, lower wages for workers, people at the top doing better. ask them what would be the new driver? what will be the new driver f

has that been enough to keep the economy going? we have this report. >> on the banks of the yellow river, china's government is trying to solve an age-old problem. every year, the loss -- to the north of the country faces a drought while the south that's flooded. so they're building the world's largest grain. -- the world's largest drain. the middle section will be called under kilometers long. it's a bigger engineering project in the three gorges dam. they are trying to read engineer mother nature. in five years' time, billions of cubic meters of water will head south. china is careless and single- minded about these grand projects, but the jury is still out on whether this will actually work. there is no question about be released this is bringing to the chinese economy. the project has been on the drawing board since the days of chairman mao, c -- says the chief engineer. >> [inaudible] >> work started before the financial crisis, the government house record-breaking stimulus program helped things along. >> china has been underg

because you've got to turn it into a consumer-led economy as opposed to an export-led economy. how long is the transition? >> everyone hopes that it will happen sooner rather than later. i think the government obviously thinks we ought to be the beneficiary of the government consumption. but it takes time. >> mr. li, good to have you on the program. >> thank you. >> we so proesht your time today. chairman and ceo of baidu clom. quite an entrepreneur and huge opportunity there. >>> cnbc exclusive with french majority leader. he will tell us how the g-20 will address the global financial reform efforts when the "closing bell" comes right back. >>> welcome back. leaders from the g-20 nations will gather in pittsburgh next week for the g-20 meeting. on the agenda, clamping down on excessive bank bonuses. recently we did see growth in two parts of europe, actually. joining me with a preview of the g-20 and the look at the economy in europe. french majority leader in parliament. good to have you on the program. >> hello. >> thank you for joining us. what's happening on the ground in

the united states for ten years has been a very high consumption economy. it gave up on savings, basically it didn't do much historically in terms of business investment. and to satisfy our consumption habits, which have required a lot of input, we imported a lot, we financed that sending over dollars which came back to us in the form of short-term financing in all markets. now, the ease of that financing helped facilitate a lot of financial shenanigans. >> rose: yes. >> and as they built up over time, you know, one of my favorite complaints is fancy financial engineering we got during this period where some very smart people thought they had manage the complexitys of the market to the point that the risks were not great. they had been redistributed in a way that would not present a challenge. and the market came under pressure, that did not prove to be the case. and i think that combination of the kind of confidence, the facade of confidence which are developed by these financial engineers, they were veryring th were very richly compensated and they went a

the stimulus program has helped to get the economy growing. we will feel the benefits for the next year or so and that is probably a good thing because the economic recovery it is going to be a lack luster. we have seen significant changes in policy, a very aggressive monetary policy that open up their balance sheet, expanded them to medically to keep the banking system liquid. just this morning, there were more reports on the consumer asset-backed lending program and how successful that has been in re-liquefying those markets. they have addressed other asset- backed market in the consumer and auto area and i think high marks are deserved by those at the fed for those policies. they were precedential. i think we were well served to have the fed to throw out the old playbook and bring in the new one. i think they deserved a lot of credit for what has been a very, very trying time in our financial markets and for getting us through the worst of those. i was happy to see that the president agreed with me and reappointed chairman ben bernanke. i s

where is one time we lowered tax rates and we haven't had a boost in the economy?> even a boost -- george bush cut taxes and we got no improvements in standard for the a average american and a monster bubble that you said was a recovery and it wasn't. david: steve, does that work? >> no, that shows us george bush should have studied ronald reagan. he only did half. david: millionaire celebrities complaining about millionaire c.e.o.'s making big bucks. first, live like a celebrity and a c.e.o. with our gang's stock picks that are ready to rally. david: stocks ready to pop. >> i have wellpoint. they will benefit from increasing roles from healthcare. they have a good records management program add they are cheap. >> i would wait for the debate to play out. david: you like disk drives? >> they recently upped the outlook. david: mike, she got a stock back in march that has popped 130%. >> in this case i think she is wrong. i like western digital. i think they have the technical advantage. host: you like a chemical product. >> i love huntsman. goldman sachs has been buy

and grow one's economy out of a developing economy to a developed economy. are you rethinking that strategy? >> we're not anti-growth but growth has to be rethought so we're reducing through-put of fossile fuels and lumber and soil and things like that so we're living with a respect for nature, recognizing the right of other species to exist and flourish alongside of us. >> when you say you're rethinking the growth agenda is this sustainable growth? is there such a thing? >> it is conceivable there is such a thing as sustainable growth but it would have to be a completely reengineered economy with very, very different incentives for technology, very, very different incentives for behavior. if you're living within the finite bounds of the earths eara manner that is respect offul -- respectful of other life. >> when you talk about the debate on cap and trade on capitol hill, there are discussions and concerns that pollution doesn't know international boundaries but economies sometimes do and sometimes don't as we elevenned over the past -- and we've learned ov

you know, that's not divorced from the economy. the stronger the economy, the better able we are to afford the health care system we have. >> final question, what would you like to see come out of the g-20s? what wau like to walk away and say this is a success? >> i think what happened to the london summit was very important because it gave a clear direction. i think what people want to see this time is a continued clear direction. a sense of coordination coming together, the major economies of the world at least greeg of a basic framework for global economic policy. >> my thanks to prime minister tony blair. up next on the "wall street journal" report, what's the richest man in the world doing with his money and his time? bill gates on fixing america's schools and how high-tech will have an impact. >> where the computer can see, it can talk, it can listen. it can talk, it can listen. the welcome to progressive. how may i help you? i'm looking for a deal on car insurance. i think i might have a coupon in here. there's an easier way

to a consumer-led economy? >> it's critical. i think it's critical for the chinese economy to be less reliant upon the u.s., europe, et cetera. i think they felt the pain and they're going to learn from it. they're already going through the process of making their economy more efficient. they're closing down factories. they are privatizing state-owned enterprises. they're focusing on this transition. >> but i mean, i was in china and the air quality, the water quality is so bad. are they really making a dent in some of this stuff? i know they talk about it a lot. but do they really recognize these issues as major problems? >> we follow a company trading on the nasdaq, rino, doubling more than year over year. it's a great business to be in, absolutely they are. >> i would add, the water problem, we had lunch with the prime minister of thailand today, their economy seems to be doing better. industrial utilizations picking up as the export market's going. if you ask them what they're going to stimulate in their ec

>>> plus, the economy. a year after the financial meltdown, why mounting job losses may be the biggest of all the challenges facing the white house. insights from the roundtable, anchor of cnbc's "street signs," erin burnett, "time" magazine's contributing author, joshua cooper ramo, and nbc's political director and chief white house correspondent, chuck todd. >>> but first, the debate on health care. joining us, senators john cornyn and dick durbin and former house speaker newt gengrich and former dnc chair, dr. howard dean. welcome to all of you. a lot to get to. we'll start with senator durbin. in light of the president's speech this past wednesday, what specifically will be achieved on health care this year? >> i think we can pass health care reform. i really believe the american people are ready for it. we're closer to victory now than we ever have been. and i hope we thands failure to pass the health care reform this year will make things overwhelmingly worse. those who are opposing us, those who are

we've gone from a "i want" economy to a "we need" resourceful economy.ses and for people to make decisions that reflect what they think are their best interests at any point in time. it's really changed the ways families approach consumption. >> but that's to michelle's point, that "gourmet" magazine and others like itre now using perhaps that kind of data and saying that's the way that we can sell to the happier family, if you will. correct? >> well, i think the way -- i think the way you sell to the happier family is make sure that what you're doing now really reflects these rising values and almost every couple we talk to report that they've become a lot more concerned about what their family really needs, rather than what they night want, and that has resulted in a couple of sort of other humerus indexes we watch. we have an index that watched pore noth pornography and the ba-da-bing phenom. that's down. we watch children and the significant purchasing in the household, 56% of capital spending in the households are made with the concordance of kids,

and maybe all of that compounds to help the economy. chris: the president is going to keep unemployment down as much as he can and stop the spiking in unemployment and with the big deficit and very little he can do about it, but one thing i wonder if he will do, we will ask you about this, will he do what he said during the campaign? i'm going to get rid of that tax cut tonight rich? the bush tax cut, would he actual do that? >> i think he has to. he has to do something that pleases democratic base and what he's done on health care hasn't actually pleased the democratic base. get rid of the bush tax cuts is an easy thing to do. he'll aim nature the people who are already -- he'll alienate the people who are already alienated. chris: won't people go crazy, tax increases? >> if the unemployment number looks better, he may do the tax cuts. chris: really? >> but if things don't -- chris: you moon tax increases? >> tax increases. but if he doesn't, if those numbers don't get better, he's not going to be in a position coming into the next ele

we won't be replicating the old economy where the financial economy did well but the real economy didso poorly. you will see us taking sharper edged positions where we say, this is where we stand. sometimes i think our friends need to go back and take collective bargaining 101 because you can't put out a proposal and have the other side say no and say if you don't like this, try this. and they say no, and you say try this. you don't bargain with yourself and i think frequently we've seen some of that. you'll see us trying to stop that from happening. you'll see us helping the president and the congress do what they want to do in their hearts and in their heads but need the political nudging to get done. we'll be there nudging them from this point on, i think. >> i'll take a question over there, gentleman in the back. >> press associates union news. you mentioned your other top targets is organizing minorities and specifically african-americans. can you give us some nuts and bolts and are there other minorities that you want to organize? >> mark, i think i answered, i think i included

that the economy is still likely to feel very weak... and that's exactly the sentiment we found on the streets of chicago... when we asked people whether or not they think the recession is over. no doesn't seem like it's over.. economy still staggaring.. jobs not filled... lot of pent up demand not beign satisfied.. no it's not over not by a long shot i work in air craft industry and things are pretty tough right now.. what would give you indication it is over.. if we started selling airplanes no not to me.. long way.. wall street going up.. average person.. long way to go.. so no i don't think it's over but we did come across a few people who say they are feeling a little more optimistic. things are still slow but i can see they are getting better.. like what? i work with smaller companies.. picking up with them.. so getting there.. still slow i think it's improving see positive signs.. gm re hiring people.. housing sales improving many experts believe the continued job losses are likely to be a drag on consumer sentiment.. and keep spe

as we know, employment tends to lag the economy. the growth of the economy. and i think that's going to happen in this case, too. so we'll see a period where economic growth is expanding. the economy's expanding. but we will not see growth in jobs for some time after that. >> i want to ask you about, really, the flies in the oinltment, or really, the things that you think might make things worse, or sort of the red flags that you look at. and one of them certainly that has been spoken about quite a bit recently is the exit strategy out of the federal reserve. what would you recommend the best path to take for the fed in terms of unwinding and backing out of some the stimulus that's in place right now. >> this is a very difficult challenge for the federal reserve. they have cut interest rates to essentially zero. and they've had a series of targeted programs. this policy has been appropriate. they've done the right thing. now, as the economy starts to grow again, at some point in the future, we don't know exactly when that's going to be, at some point in the f

plus, will the economy still recover if we cut off remaining stimulus funds? >>> plus, love them or hate them, demand for treasuries is still holding up strong, but are they a risky investment? you're watching cnbc, we are first in business worldwide. >>> a new report on the stimulus package was just released. it says 48 out of the $49 billion slated for state and local governments in 2009 is out the door. brian shactman joins us with the details on this. >> say what you want about the stimulus package in general, but it has been a savior for a lot of state budgets saving the need for mass job cuts, averting a crisis. also, close to 4,000 highway projects have been told they're getting the money and 20 billion has gone to medicaid. but according to chris mim, it is just that. in the next 12 months. states will get the biggest slice. twice as much as they've received. 288 billion of the recovery act is direct tax relief. 224 for entitlement programs including medicaid and student loans. one question, what happens to these states and localities when the stimulus

to borrow in the real economy. so inevitably, that is part of the healing process of getting the macro economy back on its feet. so i don't see it as a big problem, to be honest. >> brian, thank you so much for your time, head of global economics at fitch. >>> another story we're tracking for you today is about the gic funds. we had news that the world's fourth large heest sovereign fund has signaled that it is shifting its focus to asia after its portfolio slank because of losses on western investments during the global meltdown. gic manages about $ 00 billion in assets. where is the money headed? let's get a perspective from peter huflik. he is sitting next to me in the singapore studios. thanks so much for coming in, peter. it's been a rough 18 months for western sovereign funds and for everyone involved in the market. what sort of funds will these economies take post market? are they going to be more cautious? >> i can only see them being more cautious. i can look at the middle east sovereign wealth funds, whic

and it is affecting our economy. it's affecting everything that we do. >> i mean, some people say that as the dollar declines it's good for economic growth on the export side. but a lot of other critics say, you know, it just means people move their capital out of the u.s. that takes money out of the economy. it hurts us and risks inflation. is there a debate down there in the senate about dollar policy? >> not right now. there's an awful lot of debate about health care, about global warming, about controlling what's happening on wall street, but there's no debate about the dollar. >> i mean, sarah palin was out today, blaming the fed. she said they created a bubble that sank the economy. the decline in the dollar caused oil prices to go up $150 and helped sink the economy. why is it we can't get a sensible discussion in this country in the halls of congress about the u.s. dollar? >> well, first of all, larry, i don't believe we're getting a separate view from the fed and the treasury. unfortunately, i believe the fe

, main street economy and wall street economy. what my colleagues picked up here is they have interviewed, people have been unemployed for the last 12 months, 40% of them don't have unemployment insurance so these are individuals who are really, really -- >> you think we haven't seen the peak of that, by the way? you think we will see even more people needing to get -- >> yes, that's right. there are several estimates out there, i believe by the national employment law project where they estimate like this month, half a million americans are going to come up to the end of the exhausting of their unemployment insurance benefits and these aren't even just the regular program. this is the extended, the emergency programs, and by year's end, you're looking at a million and a half. >> we're really looking at more than 30 million people in this economy who don't have work or who are working -- >> willing and able to work full-time but they aren't. >> it's probably a good sign they're feeling kind of depressed. those are not normal econo

economy in the financial systems can to way paul. we have congress today on wednesday beginning to continue their work of trying to fix finance and put things in focus consumer protection and it may be dropped in part of the white house as well as concentrating on the role of the credit rating agency. per the west of this week's air least three members of the federal reserve are expected to give speeches this week and we could start to hear more hints about the fed's outlook on interest rates, market certainly expects rates to start rising in the middle of 2010 but certainly not before the economy really starts to show convincing signs of improvement. so will look for to that. with me now see the consumer convinced consumer confidence despite the stock market increase we've seen in the month of september consumer confidence has been weighing. a handful of airline companies have been able to secure new financing in recent weeks... analysts say it should help them survive a potential cash crunch through the winter... but some experts w

we have to revive its economy and rebuild it stronger than before. making sure that folks have the opportunity and incentive to save for a home or college, for retirement or a rainy day, is essential to that effort. if you work hard and meet your responsibilities, this country is going to honor our collective responsibility to do, to ensure that you can save and secure your retirement. that is why we are announcing several common-sense changes that will help families put away money for the future. first, we will make it easier for small businesses to do what large businesses do, allow workers to automatically enrolled in a 401k or an individual retirement account. we know that automatic enrollment has made a big difference in participation rates by making it simpler for workers to say. that is why we will expand it to more people. second, we will make it easier for people to save their federal tax refunds, which 100 families rigid 100 million families receive. you can have your refund deposited directly into your account. with this change, it will ma

>> is capped at 65,000 because of the economy. it is market-based and is responsive to the economy.r is capped at 66,000. we're negotiating those bills on separate tracks. they want to put in more hoops and hurdles that employers must go through before you can recruit any worker. we understand that, but you render the program know if you want a greater numbers because you have to go through some many hoops and hurdles to get to the point -- as you probably know, the hispanic caucus supports not doing things piecemeal. we're trying to pursue relief on separate tracks, but it is going slowly. >> you did not talk at all about trade. there is talk that the president will come out with the long- awaited speech on trade and clarify the position. what is your sense of what is going on? do you have any sense on how much they are -- >> i would say two things. we have an area that specializes in that, so i defer to them on the trade questions. i am sure john murphy to give you a more thorough answer on that. aren't we doing a major presentation in a couple of weeks? at that point, the chamber

to the emerging economies.labor tells you that. we've got overpriced labor relative to the emerging economies. they will have to push their labor wages up, ours will have to come down. that isn't good for economic growth in the medium term for the west. we're going to have a much flatter line of growth, as you know. the interesting thing is, i still need to understand why and this is to the point bulls, why you're still charging 3.6% on the uk government yield? why you've got 3.4% on u.s. yields? why do you need that fatter premium over where the current inflation rate is? and then you go back to our gold story, louisa, why have you got gold at the same time at 995? and the answer is, there's a deep suspicion that the only way out of this is to a major reflation. bond yields will pick up on this second after gold, gold's also got the debasement currency accent to it. but if bond yields pick up, more qe, more monetary to basement and that means higher gold prices. it's all pretty connected right now for the west

>> i think it's pretty clear that the economy has begun to grow. it looks us to like we'll have increased at a 3 to 4% pace this quarter. that's a pretty strong pace. coming off a deep recession. but i think we have to realize that we're getting growth off a very narrow base, we're getting some help from manufacturers having cut back too far, similar to builders and we have some incentives in the auto and housing industry. and we're not yet on a fully sustainable growth pace. in addition we're coming off of such big lows in terms of the recession, in terms of how high unemployment is, how serious credit problems are going to be that we're going to continue to have bad news here on a number of fronts, eve than as we see the economy growing. >> susie: let me pick up on some of those points. the housing data, are home prices doing better because of fundamental improvements or because of those tax credits from the government for first-time home buyers? >> there's probably a little of both. and there's probably also an issue here that there were less fo

debt. >> the chinese economy, the american economy, they're critical to each other. >> critical to each other, that's right. and that's not going to change. but the relationship between them is shifting. >> reporter: and g-20 leaders want to keep that shift from becoming an earthquake that could send shockwave throughs the global economy. anthony mason, cbs news, pittsburgh. >> couric: and in politics, just hours after the state legislature gave him the power to appoint a successor to senator ted kennedy, massachusetts governor deval patrick today named paul kirk to fill the seat. kirk, a longtime kennedy aide, is a former chairman of the democratic national committee. he'll serve until voters choose a new senator in a special election in january. and coming up next here on the cbs evening news, real progress in the fight against aids, an experimental vaccine that seems to be effective. when morning comes in the middle of the night, [ rooster crow ] it affects your entire day. to get a good night's sleep, try 2-layer ambien cr. the first layer dissolves quickly... to help you fall aslee

global economy. strong enough to avoid the cycles of boom and bust that have wreaked so much havoc. strong enough to create and support the jobs of the future in the industries of the future. so today my administration is releasing our strategy to foster new jobs, new businesses, and new industries by laying the ground work and the ground rules to best tap our innovative potential. this work began with the recovery plan that we passed several months ago. which devoted well over $100 billion to innovation from high-tech classrooms to health information technology. from more efficient homes to more fuel-efficient car. from building a smart electricity grid to laying down high-speed rail. but our efforts don't end there. for this tragedy is about far more than just recovery. it's about sustained growth and widely shared prosperity. and it's rooted in a simple idea. that if government does its modest part, there's no stopping the most powerful and generative economic force that the world has ever known,

people returned to make our economy the envy of the world.t was labor that helped build the largest middle class in history. each if you're not a union members bear everybody owes something to america's labor union. because we remember this history. let's reflect on it's meaning in our own time. like so many americans, you work hard. you meet your responsibilities and you play by the rules and you pay your bills. but in recent years the american dream seems like it's been slipping away. because from washington to wall street, too often a different attitude prevails. wealth was valued over work. selfishness over sacrifice. greed over responsibility. the right to organize was under mined rather than strengthened. that's what we saw. and it may have worked out well for those folks at the top, but it didn't workout for you and it didn't workout well for our country. that culture, that culture and policies that float from it, under mine the middle class. and helped create the greatest economic crisis of our time. so today, on this labor day we rea