real estate and restructure the whole economy, starting with cooling china's envy-of-the-world g.d.p. growth to 7%, plus have the country less reliant on exports and fixed-asset investments, more on family spending. in the regions, this poses a problem. take pengshui, which is building a new billion-dollar city center on this farmland. 60% of the funding comes from bank loans. all of china's provinces have already published their own five-year plans, and most have double-digit g.d.p. growth targets, driven by increasing levels of investment in fixed assets. so, from restructuring the economy to tightening money supply, the central government could soon face resistance. >> chinese policy-making is more like trying to herd cats. whether it's trying to get the state-owned enterprises to obey the dictates from beijing or trying to get the provinces or municipalities to go along with the game plan that beijing is trying to set, it's actually hard to get them in line. >> reporter: china's leadership is serious about cooling key sectors and rebalancing the world's second largest economy. but while

past seven percent increasingly approaching balance with energy revenues pushing consumption and g.d.p. growth of the downsides include aggravation of russia's chronic inflation concerns with brutal strengthening stoking consumer imports some warn just disease but others know the russian symptoms are unique the classical example of the dutch disease its edge of dependence on oil and gas or other natural resources pushes up to really change it and distortion manufacturing industry well russia hasn't got a manufacturing base to destroy the first place where you have a dependency away with soft goods suffering is that you might have a hurdle for developing a manufacturing industry the russian government has long been consumed about over dependence on commodity revenues and has pushed versification with limited success and skepticism about the prospect of i personally don't see how one can change in in in the near term and even in the long term because you know even though the russian oil production begins to decline or the global oil production begins to decline what will happen at that time woul

germany first for germany as a country that spends let's say three point six percent what their g.d.p. growthis three point six percent they spend just one point five percent of their g.d.p. on defense that spending is forty two billion dollars now meanwhile germany is a country that has fared the financial crisis very well and it also has cut its unemployment down to six percent it's one of the largest exporter so that's kind of looking at the strengths now let's look at denmark this is of course where the nato secretary general is from he's a danish politician they spend again just one point three percent of g.d.p. on defense just two billion dollars two point five billion well denmark is known to have a very very high quality of life for its citizens they live very well it's known to be a wealthy country moving on to luxembourg very small country but also known for its high per capita g.d.p. income it spends just point nine percent again on defense three hundred fifty one million dollars big group three point two percent as an economy in two thousand and ten as i said pretty high quality o

it's it's the opposite of how we have to incur more and more debt in order to have one dollar of g.d.p. growth the same for the way down for these guys to take profit from destroying the economy they need to make the collapse bigger and bigger and bigger mostly they're creating a financial cuisinarts they take fifteen trillion dollars economy and they dump it in the quasar and then they chop. it up in the most left. and they sell far you know what the rest of the scavengers in other countries face never thanks so much thing on the kaiser park thank you that's going to do it but don't go away because much more coming in life they are right there. they're actually in a sense here oh i see a place of course and that's never answered. on the song in the skull spoke to me i think of it every day. the flashlight from the memory. i. must say a long time. i was ashamed. i was ashamed that i didn't. i was ashamed that i had been a hero why. i go away. in the mine. where i wanted to be out of knowledge of fortune. then i'll believe what i was going on once or i think. that i was a good soldier. but you

it's it's the opposite of how we have to encourage more and more debt in order to have one dollar g.d.p. growth the same for the way down for these guys to take profit from destroying the economy they need to make the collapse bigger and bigger and bigger no question that created a financial cuisinart and it's a fifteen trillion dollar economy and they dump it in the quezon are and then they chop right. and then what's left. there they sell for you know what the christmas bonus for a scavenger of another country thanks eric thanks so much for being on the kaiser report thank you max that's going to do it but don't go away because it's much more coming your way so stay right there. twenty years ago the largest country in the. disappearance or the. ability. to get a job. where does it take to. i welcome back to that kaiser a part time now to turn to economist john mcdonogh see the former c.e.o. of hushmail he's a former chief forex trader at visa he's also a blogger at monetary future he's been writing about bit coin lately so we're going to talk to him about bitcoin john but tell us a lot of the

it's the opposite of how we have to encourage more and more debt in order to have one dollar of g.d.p. growth the same for the way down for these guys to take profit from destroying the economy they need to make the collapse bigger and bigger and bigger mostly they've created a financial cuisinarts they take fifteen trillion dollars economy and they dump it in the quezon are and then they chop right. and then what's left. there they sell for you know what their christmas bonus scavengers in other countries say sarah thanks so much for being on the kaiser report thank you max that's going to do it but don't go away because it's much more coming your way so stay right there. sure is that so much. i mean i think the real. issues of relevance and even legitimacy as the jostling continues as to succeed the stories so many chances. for the food we've got the. biggest issues get a human voice ceased to face with the news makers. i welcome back to the kaiser report time now to turn to economist john maternity the former c.e.o. hushmail he's a former chief for extra visa he's also a blogger and moneta

it's it's the opposite of how we have to incur more and more debt in order to have one dollar of g.d.p. growth the same for the way down for these guys to take profit from destroying the economy they need to make the collapse bigger and bigger and bigger no question that created a financial cuisinarts they take fifteen trillion dollars economy and they dump it in the quezon are and then they chop right. in the left. there they sell for you know what the christmas scavenger you know the country thanks eric thanks so much for being on the kaiser report and thank you that's going to do it but as much my coming away stay right there. they are killing innocents here oh i think they face a crisis and that's never and said. mom a song from the skull spoke with me i think you are but every day. the fly is fired from the memories. i know so much so long time the series. i was ashamed. i was ashamed that i didn't. i was ashamed that i had been a hero why. go i go away. but i want the vietnam war to the. head i'll believe what i was going on once or i think. that i was a good soldier. but not most soldie

it's it's the opposite of how we have to encourage more and more debt in order to have one dollar g.d.p. growth the same for the way down for these guys to take profit from destroying the economy they need to make the collapse bigger and bigger and bigger no question it created a financial cuisinarts they take fifteen trillion dollars economy and they dump it in the quezon are and then they hit chop. and then what's left. you know they sell far you know what their personal scavenger you know the country thanks eric thanks so much for being on the kaiser park and thank you max that's going to do it but don't go away because much more coming your way stay right there. that are killing us here well as a. supply side that's never around say. a song called still with me are i think garbage every day. from the memories. i have so much so long time. i was ashamed. i was ashamed that i didn't. i was ashamed that i hadn't a clue why i got my arm i got my legs. in the my. car i would be out of knowledge i was a boy. now believe what i was going on once or i think. that i was a book so. most older on the

it's the opposite of how we have to encourage more and more debt in order to have one dollar of g.d.p. growth the same for the way down for these guys to take profit from destroying the economy they need to make the collapse bigger and bigger and bigger mostly that created a financial cuisinart and they take fifteen trillion dollars economy and they don't put in the quezon are then they chop right. and then what's left. there they sell for you know what the christmas bonus the scavengers in other countries say sarah thanks so much for being on the kaiser park thank you max that's going to do it but don't go away because it's much more coming your way so stay right there. in the news here oh she's available in the ground shirts immediately to the ritz carlton. hotel the chilly millennium hotel in chile you can see all t. in censored. row so still no car. there till macau seventy shamar colors also told you so this is so new macau. with resorts much less really close its own look at riviera hotel macau centro tell me. i welcome back to that kaiser report time now to turn to economist john mcdon

him first to comment on some of the recent economic statistics we've seen new stats showing that g.d.p. growth is weak that it was one point eight percent below expectations and also that unexpectedly unemployment claims rose last week i said you know there are so many statistics coming out day by day week to week but bigger picture where he sits in l.a. where he comments on really what's going on in the lives of the people around him and their economic situation how he would assess things. it is strange and i do you watch the news and i see what the economists say they do say it's up it's chaos and it is difficult trying to ascertain what is going on and i have a large contact of people that i interview for my channel and i have to tell you people have cut back to the bone if you had a house you lost it if you had two cars you're down to one lot of people are declaring bankruptcy i've talked to bankruptcy attorneys they're starting to see people like police officers firemen people that had solid jobs so what's going on is anybody that's been working part time and now they're living back at ho

also don't want to see the united states in a recession because their economy is so linked to our g.d.p. growth but the fact is that it's important for the u.s. to have a strong dollar the world's reserve currency has to be strong and we cannot continue to increase our debts in our deficit so what. happens if there's some sort of gold standard well that would certainly limit the amount of dollars we could print central bankers will hate this by the way but it would put handcuffs on them and what they could print it would force our congress to live within our means which is good and bad it makes for a strong dollar but it also has some short term economic pain you know by the way christine we have a history of this it's not that long ago that we were on the gold standard it's only been forty years since we close the gold window under the notes that millions nixon administration so for most of our. existence as a as a country we've been on a gold standard it's only not been the case for forty years it's only been forty years but it was started to sort of like the take taken away i think around wo

also don't want to see the united states in a recession because their economy is so linked to our g.d.p. growth but the fact is that it's important for the u.s. to have a strong dollar the world reserve currency has to be strong and we cannot continue to increase our debts in our deficit so. what happens if there's some sort of gold standard well that would certainly limit the amount of dollars we could print central bankers will hate this by the way but it would put handcuffs on them and what they could print it would force our congress to live within our means which is good and bad it makes for a strong dollar but it also has some short term economic pain that was c.e.o. of gold line. well earlier i spoke to a man who has been talking about this for years carol selenski publisher of the trends journal and director of the trends research institute he told me why others are now only starting to jump on the gold bandwagon. this is happening you go back to the world bank they were talking about this seven months ago the dollar is collapsing jim rogers is right about bernanke you know with a real

if we have g.d.p. growth of north of 2%. can get some progress on the deficit, that energy prices stabilize this is obama's election to lose. if the republicans don't nominate someone fatally flawed it's a place-holder. >> chris: 30 seconds, your thought about romney as potential g.o.p. nominee? >> he has got real potential to win the nomination. real potential to be able to challenge president obama. i think that it's true, it will be a referendum on president obama. the difference in our views on how he's condemn straits where we are, where we differ in terms of what will happen in 2012. >> chris: thank you, panel. see you next week. don't forget to check out pam plus where the group picks right up with the discussion on our website foxnewssunday.com. we'll post the video before noon eastern time. up next, we hear from you. >> chris: time now for comments you posted to our blog wallace watch. most of you weighed in on the interview with president candid date ron paul. sandy sends this -- >> chris: but bob questioned paul's

we've got 9% unemployment. 1.8% g.d.p. growth. it isn't working. >> well, i mean i don't know that i agree with that. you know, first of all -- let me finish here. first of all, the trillion dollars for stimulus package, included $786 billion was absolutely necessary to make sure that this economy didn't go into a freefall. we also know that we had to make sure we began to stimulate the growth we need in this country to invest in the future. you know what? i agree with the congressman here. i think there are things we could do in terms of cutting back wasteful spending, but everything has to be on the table from the defense department. >> i said defense department. >> but your party hasn't. your party hasn't. so i want to go back -- i want to make sure that we are really looking at the budget. we also have to look at revenues. that is a fact we have to look at revenues. >> chris: let me ask about that, congressman. wait, wait. the fact is if you are going to get a bipartisan compromise you know there is going to have to be some, s

states, when it gets that high, then you can't -- you begin to show a decline in growth. 1% of g.d.p. growth is reduced when your debt reaches 90% of g.d.p., and we reached that this year, and we'll go over -- go to 100% by september 30. so this is the budget that was submitted to us. they got a big staff over there. they maintain it. many of them have been there a lot of years. the president submitted to us a budget, it was rejected yesterday 97-0. it confirms the fact that we don't have a legitimate budget buffs. the president's budget has been rejected utterly. the democrats have refused to produce one. well, why don't you say -- why don't you just have a hearing and offer your budget? i can't call a hearing. the chairman calls the hearing. the majority leaders confer and tell the chairman when it call a hearing. they've decided not to call a hearing so we don't have an opportunity to go to the budget committee and pass a budget. we had such tremendous interest in a lot of the new people that got elected to the senate last fall. they wanted to be on the budget committee. they traveled the

is going go up at c.p.i., say, 2.5%, while health care costs are usually a percent or two above g.d.p. growth. so say we have 4% growth, then health care costs are going to go up 5%, maybe 6%. so your premium support or your voacher is going to increase every year by 2.5% while health care costs are going up at 5.5%. it doesn't take a rocket scientist to figure out over the course of several years that voucher becomes worthless and it will only probably cover 30%, maybe, of the costs of the health care that these seniors are going to get. so let's not sit here and pretend like the senior citizens in the medicare program are going to somehow be living large and getting some kind of great health care. this dismantles the medicare program. period. dot. at least have the courage to come out and say we want to dismantle the medicare program, and if you want to look at how far to the right that the republican party has gotten on this issue, i've never seen former speaker gingrich do a faster or complete potomac two-step in my entire life when he even insinuated that this may not be good for senior

smith: he's talking about going to the clinton-era tax levels, at which point you had a 4% annual growth in g.d.p.? i mean, just a... just to kick the can back a little bit. >> we don't have an economy as good as we had during the clinton era when republicans were in charge of the congress. we're trying to get our economy moving again. you can't do that by taxing the very small business people that we expect to invest and create jobs. >> smith: we need to talk about medicare because the trustees report came out this week. it said that medicare will be insolvent five years earlier than they had anticipated in the past, because of the failed economy and because of increased costs of the medical services. how is this going to get done? either your way or the democrats' way or... people in this country feel so strongly about medicare-- you don't touch that. that's our right. we're entitled to this. >> no, they are entitled to it. we should keep our commitments. but we have to find a way to make this affordable, not only for seniors but for our kids and grand kids who are going to have to pay the bill

g.d.p., with much more debt forecast in the coming decade. higher debt burdens will absorb private saving and crowd out productive investment that can raise growth and wages. changing course is not impossible. the period between our victory in world war ii and 1960 saw our national debt fall in half relative to g.d.p. we accomplished this reduction through economic growth and by limiting new government debt, and we can again. we must emphasize pro-growth tax policy, lower discretionary spending, and reduced future growth in social security and medicare spending for more affluent americans. we need to be sealing the debt burden, not arguing about the debt ceiling. i'm glenn hubbard. >> tom: just a reminder, you find us online at n.b.r. on pbs.org. there you can comment on our blog or watch any programs that you may have missed. or you can follow us on twitter, @bizrpt, or my personal feed, @hudsonnbr. if tweeting isn't your thing, friend us on facebook at bizrpt. >> susie: and finally, last month's royal wedding led to a within with the tsunami left nearly 30,000 people dead or missing. the casualties were overwhelmingly among the elderly, not ju

going to go up at c.p.i., say, 2.5%, while health care costs are usually a percent or two above g.d.p. growth. so say we have 4% growth, then health care costs are going to go up 5%, maybe 6%. so your premium support or your voacher is going to increase every year by 2.5% while health care costs are going up at 5.5%. it doesn't take a rocket scientist to figure out over the course of several years that voucher becomes worthless and it will only probably cover 30%, maybe, of the costs of the health care that these seniors are going to get. so let's not sit here and pretend like the senior citizens in the medicare program are going to somehow be living large and getting some kind of great health care. this dismantles the medicare program. period. dot. at least have the courage to come out and say we want to dismantle the medicare program, and if you want to look at how far to the right that the republican party has gotten on this issue, i've never seen former speaker gingrich do a faster or complete potomac two-step in my entire life when he even insinuated that this may not be good for seniors

1% growth in d in g.d.p. is a le thing in an economy the size of ours. it increases tax revenue, significantly increases jobs, according to experts, 1% of g.d.p. growth means a million more jobs. a decline of 1% in growth in our economy represents a loss of a million jobs. this is not a little bitty matter. so on monday, i objected. i realize what's going on in the senate, that near there's no plo deal with this, that there's a gimmicked-up scheme to bring up a series of budget votes that the majority leader knows will not pass. indeed, he intends to bring up a vote on a budget that he and all his colleagues intend to vote against, the most responsible budget out there, the house budget passed by the republican house. that's what they want to bring up and vote on and vote against it. but the budget act doesn't say bring up the house budget. it said each house, the senate and the house should bring up their own budget. and they should pass it on the floor, it should go to committ committee. this is neither -- none of the budgets we'll be vogue on have gon

where a country's debt is up to 90% of the total economy, you have about a 1% decline in the g.d.p., or the growth in the economy. well, our growth was only 1.8% last quarter. that means it should have been at least 2.8% but for our debt and deficit, because now our gross debt is 100% of our economy. so we went over that 90% threshold and we're impacting our economy today. you think about it, with all the government borrowing out there, it's crowding out private borrowing. and so there are fewer jobs being traded in america because the government is playing a bigger and bigger role, crowding out the ability for small businesses to get a loan. i also join a lot of other folks in this chamber on both sides of the aisle in my deep concern about the possibility of a debt crisis if we don't deal with these historic deficits or debts, and that could send our economy into a tailspin with kaoeu-high -- sky-high interest rates, with inflation which is already rearing its ugly head again in this country. we need to address this issue both because it's the right thing to do for future generations. it's reall

growth today we should be seeing. we pointed to two specific things. g.d.p down to 3.1 percent. we're not seeing the kind of growth coming out of a recession we've seen in history. i would point all the viewers to an opportunity-op-ed. that looks at all the historical information and the avege growth for american coming out of a recent. this economy is absolutely under performed in that sense. we're 8.4 percent. many states are in here in 10%. i don't understand if you raise taxes on the rich which includes a large number of individuals that file business as individuals. i don't see how raising taxes on employers a particular small business employers where 70 percent of jobs are created will help our economy grow. host: we're talng about the 20 president sweepstakes. next up the new york on the line for independents. jared? caller: hello. i'm in new york. i'm an independent. member of the independent party in new york. i just want to sa i don't feel like i have any candidate in this - coming up. i mean obama is really a terrible disappointment, and on the other hand. republicans

our entire economy of our g.d.p., and after 2015, it grows, there isn't a single year when the spending does not grow as a share of our economy. so you have got this constant growth and spending, overall spending as a percentage of our g.d.p. that is way beyond the norm if you look at any sort of historical average. so when the president submitted his initial budget to the congress, we were all hopeful i think that it would demonstrate an acknowledgment that he gets it, that he understands the dimensions of this problem and how serious our fiscal and financial straits are, but the budget that he submitted to congress a few months ago actually increased spending over the ten-year time period, massively increased the debt and raised taxes on our small businesses at a time when, as i said earlier, we are hoping to get the economy growing and expanding again, and that helps address many of the problems that i just mentioned. but you can't have economic growth when you're raising taxes on the job creators in our economy, which is our small businesses. and i would argue that the two things that are going to be necessary for us to get our economy back on track and to ad

about that, he agreed with a rogoff, rien hart study when your debt reaches 90% of g.d.p., it pulls down economic growth 1%. secretary geithner said, yes, that's an excellent study. i would add one more thing, when you get that much debt, you run the risk of having a debt crisis that could throw us back into some sort of recession or financial problem that we've had. that's president obama's secretary of treasury. so we know we've got a serious problem and we need to do something about it. so the president submitted a budget. it's basically been rejected. i can't imagine that the senate would bring it forward as the senate democratic budget. the house of representatives in accordance with the law and the time frames of the budget act have produced a budget. publicly stated it before they voted on it and have defended it since and now we haven't had one in the senate. the senate by law should have produced its budget and started its markup six weeks ago. the law says we're supposed to have passed a budget by april 15th, tack day. we tax day. we haven't even begun to mark it up. it was supposed to have be

growth today we should be seeing. we pointed to two specific things. g.d.p down to 3.1 percent. e not seeing the kind of growth coming out of a recession we've seen in history. i would point all the viewers to an opportunity-op-ed. that looks at all the historical information and the average growth for american coming out of a recent. this economy is absolutely under performed in that sense. we're 8.4 percent. many states are in here in 10%. i don't understand if you raise taxes on the rich which includes a large number of individuals that file business as individuals. i don't see how raising taxes on employers a particular small business employers where 70 percent of jobs are created will help our economy grow. host: we're talking about the 2012 president sweepstakes. next up the new york on the line for independents. jared? caller: hello. i'm in new york. i'm an independent. member of the independent party in new york. i just want to say, i don't feel like i have any candidate in this - coming up. i mean obama is really a terrible disappointment, and on the other hand. republic

g.d.p. -- that you lose one percentage point of economic growth. in other words, economic growth would be one percentage point less than it otherwise would be simply because of that high debt to g.d.p. level that the country is sustaining. they said that's at 90%. if you look at where we are today, debt to g.d.p., we're at about 93%, 94%. according to the white house's own economist, every time that you lose a percentage point of economic growth, it costs you about a million jobs. so having the kinds of debt levels that we are carrying today creates a cloud over our economy, reduces economic growth and reduces jobs, where it's costing us job creation in our economy, which is the thing that most of us, i think, believe we should be focused on. if we're going to focus on jobs, it is also -- i think we have to say there is a correlation between spending, debt and jobs. i think the sooner we acknowledge that, the quicker we move to address that, the better off we're all going to be and the sooner we're going to see the economy start to recover, expand

the nation's growth rate hit a speed bump in the first three months of the year as consumer spending slumped. the commerce department says first-quarter g.d.p. came in at 1.8%, that's down from 3.1% at the end of last year. new claims for jobless benefits reversed course this week, rising when a drop was expected. the labor department says new claims rose by 10,000 to a seasonally adjusted 424,000. a federal judge in wisconsin today struck down a controversial state law that stripped most collective bargaining rights from public workers, but that may not be the final decision as wisconsin's supreme court takes up the issue next month. still ahead, friending your utility company, or how the concept of social networking can help businesses save big money on energy. it's tonight's "planet forward." >> tom: the vice president and a bipartisan group of congressional negotiators met for a little over an hour today. they're working to hammer out an agreement to cut federal spending and raise the nation's debt ceiling. time runs out in early august. lawmakers in the talks say they are making progress, but a key issue will be just how long any exten

g.d.p. reaches 90%, it is costing you about one percentage point of economic growth every year. in this country, losing one percentage point of economic growth costs us about a million jobs in our economy. so if we say we're serious about job creation, one of the things that we clearly ought to be focused on is getting spending and debt under control. because if we sustain and carry this kind of debt level for the foreseeable future, we are going to cost the economy one percentage point of economic growth and therefore a significant amount of jobs that otherwise might have been created by that economy. that's one reason we need to rein it in. the other one i'll point out is the statement that has been made repeatedly by the chairman of the joint chiefs of staff, admiral mike mullen, who has said the greatest threat to america's national security is our national debt. madam president, i would ask unanimous consent to speak for another minute. the presiding officer: without objection. mr. thune: and so i would say that the -- the national security implications of this are very rea

we were able to also provide the kind of economic growth that generated job creation. not just increased g.d.p. or increased profits on wall street but jobs on main street. much of these efforts were, frankly, undone beginning in 2000 with tax cuts that did not, as advertised, produce the kind of private employment growth that were necessary for our economy, that shifted the burden to middle-income taxpayers while giving the wealthiest americans extraordinary relief, and unfunded entitlement programs like medicare part-d and two major conflicts, none of which were paid for. so now we once again face a situation where we have significant deficit and we need to address it. president obama has begun that process, he has begun it i think with the same commitment to maintaining medicare, medicaid and social security, not without reforms and strengthening but making sure that middle-income americans and all americans can have access to these vital programs. now, we have taken significant steps for the long run to reform our health care system with the affordable care act. we hope that -- at least i

. -- the debt amounts to 90% of g.d.p., economic growth declines by 1%. and 1% decline in g.d.p., experts tell us, is the equivalent of a million jobs. so we will be in a position where because of the debt we have accumulated the economy will grow 1% less and we could have a million less jobs. we don't know what our economic growth might be. it looks like it could be less than 2%. we're talking about a huge difference in what our economic growth could be this year. maybe it will be 3%. but fitz 53%, it would have been 4%. if it was 4%, it would have been 5%. if it's 3%, it would be 2% because of this debt. so these are the circumstances that we're dealing with. every witness has told us we need to do something about it, and the nation is in a most serious fix. so there has been a decision made by the leadership of the senate -- the democratic leadership of the senate -- not to produce a budget. it was interesting when the president's budget was brought up, every single member of the senate, republicans and democrats, voted "no." you could say, why did they