of the global economy. and what is happening in asia is that what we think of as global issues, challenging global issues where there are all kinds of free rider problems that relate to natural resources, the environment, climate change and so on, are starting to be internalized. in the big countries like china. because they are such an important part of the incremental pressure, you know, through prices, through consumption, and through growth. that they are starting to realize, and i think this is new, its new there it is new in the global economy, that addressing these issues isn't so much a global issue for them. it's a question of long-term growth strategy is completing the process, marching to advance country high-technology success. what that means i don't think we've had time to think about, but it changes the incentive structure of the game, or the game sets run sustainability and so on. if there's one or two players or region that is internalized this and the start i because it's in their long-ter

global economy. it's not something we -- failure is not an option. and the leaders, to their credit, understand that. and let me just say, there is no credible way to give congress more time. there's no constitutional option, there is no delay option, there's no creative financial option. they have to act by the 2nd. >> it's a significant consequence that you're outlining here, that america's credit rating could be downgraded without a deal by august 2nd. >> and it's much worse than that. that itself would be very damaging because that would affect the value of all americans' savings, the capacity of businesses to borrow to put people back to work. remember, 80 million checks a month we write, including people who depend on those checks to go out and buy food to meet their basic needs. >> would you have to make that decision? >> there's no alternative for congress to act by the 2nd, and they recognize it. and i'm very confident they will do that. i think what we're debating, david, is not really that

investment fund that are existing in the country because people have been investing into russian economy for a long time i'm sure sure one of the key features is a quote investment feature so we will be able to invest any money in a need business unless there was at least the same amount of going vestment coming from lead in international investors so that's a very unique feature and it's very important because it always allows us to have second pairs of eyes looking over investments we are doing that allows us to bring foreign investment into the russian economy before you were appointed president of this new fund you were president of the i can private equity is that true what was so special about this company what was so special about the job you did there that made you fit for the need and position that made president pick you personally for this new position sure well we've been doing investments and i've been doing investments in russia for the last ten years and it's very important investment businesses to have a good track record so not only to make good investments but to have g

at all consuming does not help their economy producing helps their economy companies that the irish government is encouraging to relocate to ireland and in dublin now are companies like. that create virtual currency which is a backdoor way into gambling they just figured out a way to go around gambling laws this is what the irish government wants they want horse racing they want think again bling and they want to totally collapse so i guess i know the government can do this they can pass a law the. allows people to cash in their zinger dollars for guinness this way you keep in the neighborhood and broke good going so over in the u.s. a response to deficit has been an attack on workers as well union workers replaced with prison labor under scott walker's collective bargaining law to state employees in wisconsin make an average of fifty thousand dollars a year and this includes all of the white collar workers all the executives working for the state and includes their pension benefits and health insurance so fifty thousand dollars a year now wisconsin prison inmate cost thirty thousan

economy will do well. you're worried about some parts of the global economy.o i tap into those places really growing? >> you want to buy an emerging markets fund. if you look at asia and parts of latin america, it is a powerful story. the transfer of wealth, the growth of the middle class. they are where we were in the 1950s. you would buy something like the lazard emerging markets fund. either one of those are good but they are a cadillac of emerging markets investing and they do their research and they're in the good geographies and the growth is powerful and long term. >> when you say they're like we were, they're buying things, consumption is still high in a lot of these places. >> we have a lot of debt at the consumer level and the federal level. they are growing their wealth. they have high savings. they're now buying tooth paste and technology and computers and they're building roads. and they have the money to do it and they're trading more with each other rather than just exporting to the u.s. and europe. >> the great thing is you're giving people spe

and the economy was moving forward. their fear and the fear that i share is that if we make spending cuts at this point, it will not help economic recovery. in fact, many would agree -- i think paul krugman regularly or reports that point of view in "the new york times," and i think he's right. so here we are in the horns after dilemma. in order to avoid the a disaster that would occur august 2 if the united states defaulted on its debt for the first time in its history, we are being told we have to cut back on government spending and by cutting back on spending, we may also have a negative impact on our economy. i'm afraid this dilemma is not going 0 srve our purposes very well. i'm not sure this is clear thinking. i think in many respects it is ideological thinking. the republican point of view has always been reduce the size of government at any cost to the economy. they believe in their heart of hearts, in the pre-keynesian view of the world that the market will work this all out if we just get out of the way. that

economy. it will mean that people, regular people who are buying homes and cars will pay higher interest rates. it means that we will put a cloud over the united states that might not go away any time soon. >> final question. you say this is a question of will, political will? it's also a question of political leadership. this president said back in 2009, economy, job one, his responsibility. here's what he said. >> now, my administration has a job to do as well. that job is to get this economy back on its feet. that's my job, and it's a job i gladly accept. i love these folks who helped get us in this mess and then suddenly say, well, this is obama's economy. that's fine. give it to me. >> is it the president's failed leadership that's brought us to this moment? does he bear responsibility? >> i think the president's shown enormous leadership from the first day in office. he inherited an economy where the bottom was falling out. he stabilized it through dramatic actions, without which million

economy overall. friday, the new gross domestic product number came out, the gdp, the best measurement of how the economy is doing. the economy grew at a weak 1.3% in the second quarter. most analysts predicted highe higher. when healthy and creating jobs the economy grows at 3%. analysts say more troubling were revision to previous quarters. first quarter adjusted from 1.9% to .4% growth. growth in past quarters, you can see on the chart, it's difficult, tepid, flat, anemic. your colleagues in the administration says it shows the recession was far worse than first thought. two-and-a-half years in the president's first term, does it also show that his policies, including the stimulus, have not worked? >> no. quite the opposite. what that revision showed is that what the president inherited was actually the worst six months of growth since franklin d. roosevelt inherited the economy in the great depression. so what you saw was what the president inherited was a much deeper, recession than anyone projec

it is turn back and make the economy stronger. the economy is healing and recovering and we'll get through this and it will take more time. it is so important as the eyes of the world are on us that congress makes the tough stitions now. >> chris: is 8.3 percent unemployment 15 months from now. is that jiving with your analysis? >> chris, it depends on how fast we grow and the confidence that the leaders of congress. >> chris: your projection is 8.2 -- >> i don't do forecasting, but the best forecasters said economy will grow going forward. i think that is likely, but it is going to take us a long time to heal the damage caused by the crisis. it will take us time. >> chris: secretary geithner, thank you for coming in today. we'll watch what is coming up with this week. >> good to be here. >> chris: will the republicans say yes to anything. we'll find out from the speaker of the house john boehner. specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's dif

economy. i think president obama's doing a great job in his own making himself look bad the shown absolutely no leadership in this debate he's what to be in the debate over whether to raise the debt ceiling what to do about the debt ceiling whether or not to raise the debt ceiling at all there's a debate on what to do and what to condition it on republicans have put on the table something called cut cap and balance they want to cut spending they want a statutory caps on spending and they want a balanced budget amendment here's what the president wants he just wants to raise taxes on the american people and balance of budget on the backs of the american people that's not the way to do it and i don't think there's so much pain about whether or not to raise the debt limit i think and then they pretty much everybody in this congress has already voted for an increase at one point or another in their career i mean the bath majority i don't think i think the problem is that there is that there is a s

economy and the global economy. treasury securities are critical to the entire financial system. they are used in many different ways. for example, as collateral for margin. default on those securities would throw the financial system into chaos. in any case, what would be the case is that we would destroy the trust and confidence that global investors have in u.s. treasury securities has been e safests being thu assets and the world. we are already seeing the threats of downgrades from ratings agencies. this is a tremendous asset to the united states -- the quality and reputation of our treasury securities and real benefits from it with low interest rates. i would urge congress to take every step possible to avoid defaulting on the debt. or creating even any significant probability of defaulting on the debt. >> senator shelby. >>> mr. chairman, tell us why our economy is not moving. our jobs are not growing. unemployment is going in the wrong direction. 9.2% is the official unemployment rates now. -- right now. according to labor department, if you bring in people looking -- who

our economy hangs on the balance. and for the first time in the history of our country unless there is a compromise or they accept my bill, we're headed for economic disaster. it's time for republicans to step forward. there's been some movement today. as i indicated on the floor, i was having a meeting in my office this afternoon with some republicans and that fell through. as they were walking into a conference, three republican senators said they were interested in my bill, interested in compromise. they need to step forward. republicans are blocking their ability to compromise, refusing to negotiate with us. all they do is talk, enough to get done. the house will hold an up or down vote i'm told on my proposal. we should be allowed to do the same. that's all we're asking. it's time for us to be adult. it's time to come together and compromise. it's what the american people want and what we need to do. senator durbin? >> i'm sure you recall the speech that was given to the american people on monday night by speaker

the sixty's right and spending isn't going to naturally suddenly make growth in the economy the economy doesn't care where the money's coming from government spending a certain part you see more. of the kind of overall economic moneys that are out there in order to kind of help kick start the connally and then if we've learned one thing that tax cuts don't create jobs i think that pretty much does prevent because the stimulus was still the largest tax cut in american history that this president president obama the president everyone says you know hates the wealthy and is giving nothing but trying to raise your taxes has the largest tax cut that you straight that's what i mean it is true i think we are just becoming way too dependent upon our government i think there needs to be a foundational shift in the way americans a new government and that's going to take a little bit of time i think a space happiness and a great argument office you know not this idea that our government somehow some hateful thing that no no it's not a very thing there is a government well who i would. here's priva

can the economy wait? >> the economy can wait for that. the priority for thenext 18 months is ming sure ts economy grows. the onomy can wai f that. it would be better if it didn't ha to wait. wou be better if we were able to find a compromise in which both sides compromised. t there's no reason why all of the compromising should happen on one side. you know, i'm an economist not a political scientist but if you look at the polls, it's not that the polls all say that raising taxes on corporate jets is an inconceivable thing, or closing corporate tax -- >> rose: in the end that's not a lot of money, is it? >> corporate jets is not a lot of money. but it is a powerful symbol of a highly problemat attitude. if you're not even prepared to raise taxes on corporate jets, then you can't possibly be prepared to address the revenue issue in a way that will make it possible for us to get anywhere near the deficit target. >> rose: when you talk about raising the tax on corporate jets you're talking about deductions. there are a whole lot of deductions

economy. the united states has been the importer of last resort for the last decade, and if the u.s. economy slows further, that's going to have consequences for economies around the world that pend on u.s marts, and that's why i come bac crucially not just to the budget -- the long-term budget content of any agreement that is reached, and not just to the question of wha it means for creditworthiness, but also to the queion of what it means for the economy in the near term which goes to the questions likehe payroll tax cut, like unemployment insurance, like infrastructure investment. >> but has there been enough urgency shown by this government, the executive branch and the legislative branch, to doing something about unemployment, urgency? >> no. we have not had the jobs deficit at the center of our political debate. >> rose: why not? >> -- for thelast year. >> rose: why not? >> aga i'm an economist not a political figure. 90 something -- >> rose: the executive branch, there should be a polit

the deal will double overall fuel economy to 54.5 miles per gallon by 2025. that could mean filling up your gas tank every two weeks, instead of every week. diane eastabrook looks at some new technologies that could mean an even cleaner and more fuel- efficient ride down the road. >> reporter: if you check out the fuel economy of new cars and trucks, you might wonder if auto makers will be able to increase corporate average fuel economy to nearly 55 miles per gallon by the middle of the next decade. scientists at argonne national laboratory near chicago think they will. at the lab's center for transportation research, engineer mike duobo uses a device that measures power to test fuel efficiency on some of the latest powertrains. >> it provides a lot of the data for people who are working on the next generation battery and the next generation engine. >> this is a volkswagen jetta imported from europe. it's only sold in europe. >> reporter: duobo thinks the technology on this v.w. will come to the u.s. in a few years. it marries a smaller, more fuel- efficient

that's your idea of an economy that's growing stronger. >> no very tough economy. growth slowed for the first half of the year because of why what we said. if congress lifts this cloud of dysfunction of default, over off the american economy, then it can turn back to doing things making the economy stronger. this economy is recovering, going to get through. this take more time. why it's so important eyes of the world is on us. congress can come together and make tough decisions now. >> chris: 8.7 a% unemployment more than a year from now, 15 months from now, is does that jive with your analysis. >> chris it, depends on how fast we grow. that's what it depends on. depends on the confidence that the leaders of congress, not just democrats. >> chris: you must have projections right now. >> i don't do forecasting. but i would say that the best forecaster notice the country say that they believe growth is going to get stronger going forward. i think that's likely as long as congress makes good decisions. but it is going to take us a long time to heal the damage caused b

economy ows further, that's going to have consequences for economies aroundhe world th depend on u.s.arkets. and that's why i come back crucially not justo the budget, the long term budget content of a agreement that's reached and not just to t question of what it means for credit worthins, but also to the question of what it means for the economy in the near term, which goes to the questions like the payroll tax cut, like unemployment insurance, like infrastructure investment. >> charlie: but has there been enough urgency shown by this government, the executive branch and the legislative branch to doing something about unemployment. urgency. >> no, no. we have not had the jobs deficit at the center of our political debate. >> charlie: why not? >> for the last, for the last year. >> charlie: why not? >> again, i'm an economist, not a political figure. 90 some -- >> charlie: you are at one end of it, the executive branch. you don't need to be a political figure to speak to the executive brch. >> i think one part of its that there's i think a misguided fatalism, people think there's not

economy is going to do well. year worried about some parts of the global economy. places that are really growing? >> you want to buy an emerging markets fund. if you look at the numbers what is going on in asia and parts of latin america, it's a powerful story. the transfer of wealth, the growth of the middle class, they are where we were in the 1950s. so you would buy something like the lazard emerging markets fund. for some reason they're not accepting money, you buy their emerging markets blend fund. either one of those are good. they are a cadillac of emerging markets investing. and they do their research. they're in the good geographies, in the good companies. and the growth in the emerging markets is powerful. it's long-term. and they're trading among themselves. >> when you say like we were, their consumer consumption is still high in a lot of these places? >> we have a lot of debt at the consumer level and the federal level. they are growing their wealth. they have high savings. they're now buying toothpaste and technology and computers. and they're buildin

and global economy? if the u.s. even come close, it could open the door to a serious run by an independent. not since ross perot have we seen anything like it. so on this independence day we ask, could we see a real run by a third party candidate. >>> plus, did mitt rommy put on the plip flip-flops again? romney said, i didn't say that things are worse, except that he did just days earlier. quite a few times. we have it all on tape. we put it together in an independence day panel of experts to look ahead at the republican field, all those money reports and everything else and the president's chances of reelection. and we mentioned, the nba lockout added to this nfl lockout. is it possible? we could be looking at autumn and winter with no football, no basketball, at least on the professional level, because the millionaires and billion airs didn't agree on lou to divide billions of dollars. >>> what's wrong with this picture? nothing if you're mitt romney. what candidate's son is posing with him? here's a hint. not ro

of italy i think that the italian economy is in much better shape in the perception of the italian economy or than the trade in the italian markets would suggest from the last few days that being said the situation in the euro zone and in to a lesser extent in italy is fairly severe as we see continued downgrades of portugal last week major fights between the european union and the three large rating agencies donna styles near where i'm sitting actually in new york city new york and continued pressure on ireland and spain and exciter out so we do see a lot of real serious issues here even if they are slightly overblown and so in the stock trade in my day by day basis. you know there's a bit a whole spectrum of economists from the. kind of fringe to correct me if i'm wrong paul krugman who have been suggesting for some time that the euro the whole euro zone that this idea of taking all these very disparate economies and having them all run of the same currency the same central bank is just basically nuts and unsustainable is what's going on right now with greece and italy and portugal and s

economy is going. well we don't expect you notice any. surprises on the positive side you know some unexpected jump in the. employment or the growth but. we think it's going to be pretty nice you know economy is going to expand moderately jobs will grow and you know there will be the budget deficit will be reduced just the question to how much and as we all heard if it was not would be not enough you know to keep the economy going there would be quite a if using three and a let's talk about now in the ninety's a little bit later but is find a good point if i got it under you are you as optimistic on the u.s. economy is going to tell us well i'm more promiscuous equipment than on euro zone going to because you're going for almost. less fundamental i mean. they are going to be sold in the by the way. they will discuss in default or not default but it's a matter of how that will how much money will be printed to call that or. how much tax. can be raised in the future so in a sense they're less fundamental than that if you was ok gentlemen le

very small economies. the whole thing could cave in because italy goes. intertwined with spain's under spain go there and we are in serious trouble. that plague sweeping be used spreads through italy assays much closer in states you have got discussed whether the country's gold reserves might be making it a bigger target because reports coming away in just the time of this time but for now there's a pretty. point four hundred tons of gold and only the second biggest position in the euro zone and that's the mother lode that i think that's been a target all along the green the ireland portugal those are side shows there are little micro-cap countries not much of a deal there but italy's got actual gold that the i.m.f. and the people who support the i.m.f. the terrorists as i mentioned like eric cantor they're helping to facilitate the feeding of that twenty four hundred tons of gold because that is meaningful. all right only twenty minutes past the hour now here in moscow it was a turbulent session in the is

economy this is you know back in one nine hundred seventy nine and their sole objective they're making sure obama's not reelected in fact i mean this is not even something radical a new this idea of not making and making sure that that obama's not unlike here's mitch mcconnell talking about it yesterday morning. one of your quotes from last year where you said quote the single most important thing we want to achieve is for president obama to be a one term president so how do you respond to those democratic lines of attack well that is true that's my single most important political go along with every republican in the country but that's. and you know they tried the same thing in one nine hundred seventy nine jimmy carter was president and the republicans were hysterical but our national debt was a little over eight hundred billion dollars that's point eight trillion we have not yet hit one trillion ronald reagan took us to one trillion blew through that to two trillion blew through that honest a three trillion and then george herbert walker bush blew through that took us up to about fi

economy is going to tell us well i'm more political disagreement than on the eurozone economy because the u.s. . and its fundamental i mean. they could all be solved in a binary where you. were on this wasn't the fault or not the fault but it's a matter of how but well how much money will be printed it took all of it or. how much tax. can be raised in the future so in the sensibility fundamental than that if you was an ok gentlemen let's go let's turn this to russia chris how it's all that we've mentioned in this program so far affecting russia and how will it affect russia it will right now russia has been affected because investors globally are just risk averse you know nobody's taking any major bets they're watching the big picture in europe in the u.s. and that means that they're generally very quiet in countries like russia let's face it peripheral countries russia continues to be viewed as something as a derivative trade in the global economy so far so that uncertainty is affecting russia and it's it's we've seen volatility in the stock market market of course reflecting the new

society larger economies of course greece is a three hundred billion dollar economy it's not even as big as apple the software and computer company it's not as big as exxon one u.s. company or you have ireland similarly it's a two hundred or three hundred billion dollar economy spain is of course obviously a larger economy than that but still not a significantly larger economy so you've got this contagion spreading however at the center of the eurozone it is germany and germany benefits from this catastrophe because of the lower year out it helps their export market now how can germany began. then pay by participating in the wholesale financial rape of greece how can germany protect itself from the contagion wiggling its way into germany or did they haven't thought that far and they're simply going to be swallowed up by this financial contagion but i think max there are two levels of interpretation the first one from the national point of view from germany's point of view when i said you can see germany in france and i'm going to medical and nicolas together with central european cen

is the economy to be to fail?osition right now, with congress and democrats and republicans plan these political bands, we're facing a potential downgrade and that could trigger another financial crisis. that could put us back into recession. the stakes are very high and a don't know of politicians realize what is at stake. >> he said it is like a dangerous game of russian roulette. to do you blame most for what you're watching? >> honestly, there is one distrust of our country stemming from a financial crisis. the american people don't trust washington, republicans don't trust democrats fear congress doesn't trust the president. nobody trusts wall street, there is an iceberg head and the bickering is preventing us from turning the issue. frankly, i blame everyone. washington and our politicians who are free to make tough choices. the game is very serious right now. our country is at stake in the possibility of plunging us back into recession is what hangs in the balance. if we don't act it will be the american pe

economy -- if the u.s. economy stagnates until the 2012 elections, so i want to work with the president constructively to make the country more competitive and create jobs. i've always believed in the 21st century american companies must serve two roles. they must be competitive for investors, and they also must be a positive force for change. as the country emerges from the financial crisis, i think we're fighting the wrong battle. in the end, more regulation, class warfare and partisan politics aren't going to help the country grow. but business must regain it voice and its credibility to drive competitiveness and create jobs. i want to be part of that conversation, and i want to be part of the solution. but the truth is we all need to be part of the solution, every single one of us needs to be a catalyst for action. so you know what? the world is getting better. the world is getting better. but it's impossible for american business, ultimately, to win if country and its work force are losing. it's just n

we don't know in modern economies what helps an economy continue to grow and to remain strong and to prosper as it inknow vates, particularly as the economy and the culture and the society becomes relatively well off. it is a known phenomena that it is hard for individuals who are relatively well off to take outsized risk and put everything on the line. back to my original story, if you think about the swimmers in the contest, in order for the united states to prosper, we need lots of swimmers who are willing to get in the water and swim and save nothing for the trip back because they are the type of person who will do whatever it takes, work as hard as is needed and get to the other side without saving energy to get back. and this shows up in what we now have as the crystal clear data in the last several years largely funded by the kaufma

the economy is not a fixed pie. when you expand the labor curve, a simple economist will say the price of labor goes down and we're all hurt. the more people that work here, the more people that are chasing jobs and we're all doomed. wrong. the expansion of the available labor force creates opportunities that did not exist before. you have innovation and entrepreneurialism that increases the actual size of small and medium-sized businesses. they consume and that expands the demand curve. you have a dynamic economy for 90% of u.s. born workers that enhances their wages. the other 9% got whacked up side the head with globalization and immigration and everything you can list and they need help. getting rid of immigrants doesn't really help them. the final point is if you look at the last 15 years, 25% of publicly traded companies in the united states are essentially from the bay area region and one out of four was started by an immigrant. we have great data on this because it's all transparent. you can look it up. you

and global economy? if the u.s. even come close, it could open the door to a serious run by an independent. not since ross perot have we seen anything like it. so on this independence day we ask, could we see a real run by a third party candidate. >>> plus, did mitt rommy put on the flip-flops again? talking about president obama handing the economy, romney said i didn't say that things are worse, except that he did just days early. quite a few times. we have it all on tape. we put it together in an independence day panel of experts to look ahead at the republican field, all those money reports and everything else and the president's chances of reelection. and we mentioned, the nba lockout added to this nfl lockout. is it possible? we could be looking at autumn and winter with no football, no basketball, at least on the professional level, because the millionaires and billion airs can't agree on how to divide billions of dollars. >>> finally, what's wrong with this picture? nothing if you're mitt romney. what candid