analysts are more negative than i can usually for a car they foresee just three point five percent g.d.p. growth compared to four point five percent of official forecast. that's because the main driver of domestic consumption is slowing down and actually the analysts say that most sources of russia's our growth are already exhausted. well that doesn't really sound good at all is there anything i'll bet anything promising to look forward to the fear. that there is something everybody is waiting for a large scale privatization program and more aggressive reforms but not all of this really happened last year and experts say that these get to refold global crises decreasing and the us are they will be even less incentive for the russian government to speed up the reforms if sold d.c.i. could be the last one of the last one off relative stability before we could see big negative changes in two three years time and in fact russian central bank is it has already asked though to russian banks to prepare for the war as the regulator recommended them to develop a self rescue program in case over crisis th

analysts are more negative than their official forecast they foresee just three point five percent g.d.p. growth compared to the official four point five percent that's because the main driver of the mess to consumption isn't slowing down actually analysts say there's more thorson's of russian economic growth are exhausted what's needed not using a large scale privatization program and aggressive reforms far none of this really happened last year and experts warn that this year the risk of global crisis is decreasing and fast there will be even less incentives for the russian government to speed up the reforms if slow these could be a last year of relative stability before we see real negative changes in two three years time. let's listen to the chief strategist at sabera bank investment research greece we for economies and pretty good shape it's quite resilient against slowdown in the west of the world and we believe that the government has enough financial resources on hand for this coming year to be able to deliver growth probably around three percent compared to maybe three point eight perce

at this point in time they had 7.9% g.d.p. growth. they had the right policies to make sure that we turned the economy around then. i think those same principles will work today. >> greta: two issues on the table here. number one, what is wrong with the economy. are the policies correct and leading us in the right direction. the other is immediate response by washington. some in washington to the very grim news. americans woke up this morning to feel extreme pain, the economy shrunk and suddenly first thing they hear out of washington is leader pelosi and jay carney blaming republicans and marco rubio was quick to release a statement, casting the blame right back on president obama. there is no, let's jump into this. let's solve this problem. they immediately start to blame. >> you are absolutely right. one of the things we have to look at, how do we get capital flowing back in the united states economy so we do have growth. we have expansion of small businesses. we look at keorpt business tax rate which is the highest in the world we

according to a unit credit a ten percent rise in the euro's value would reduce your a zone as g.d.p. growth by zero point eight percent. when this competitive devaluation actually could affect the russian ruble or so some experts say here with me i have katie pilbeam who had an opportunity to speak with an expert on this today so what did he say while it was david gray from pricewaterhouse coopers russia and i really wanted to address a topic with him because he's taken the world by storm and he says that's the interesting enough but for the ruble i'm for russia it may demonstrate some resilience. i am looking for the rule to be relatively stable in the i think i don't see big drops in energy prices and i think a flat to moderate energy prices gives us a stable ruble so i think the ruble will tend to attract sideways this year and b if you think about the level of volatility we've experienced in the past even two thousand and twelve was a relatively stable year by historic standards and i think will happen and price waterhouse coopers they've also just released that business of a full roste

england is name is mark carney they're bringing him over from canada he's talking about nominal g.d.p. growth isn't that just basically more of this shuffling around definitions to hide the fact that the economies are in freefall your thoughts. absolutely i think we've got to change that i mean the french are experimenting with gross national happiness so if you live in france and need a few could include things like the amount of garlic in your food and the beauty of women and the sort of length of skirts they g.d.p. would be just monstrous so people will change all the definitions around you're absolutely correct the most funny one of that was argentina in argentina when inflation went through the roof they decided basically to exclude anything which was going up to for us on the basis that nobody could afford it anyway so i think we'll see a lot of that you're absolutely correct and i think that's going to be a theme of more lies more hypocrisy moment appeal ation on the part of politicians because we all know without delivering prosperity they'll have trouble getting reelected it's just s

which is staring down a year of impending austerity is stagnant despite moderate unemployment and g.d.p. growth forty nine million americans still live in poverty forty six million americans are on food stamps because they quite literally don't have enough money to feed their families the economic situation in europe continues to deteriorate and even emerging markets in asia are slowing down so if it were true that the world's economies rely on the super rich to do well as today's all of our conspired right wing economics and. in the end frontman for them argue then why are the world's austerity economies doing so poorly. well there's an answer it's because the billionaires are not the job creators you can told there's somewhere between symbiotes and parasites not meant as a personal insult against billionaires many of them are very good and decent people but it's meant as a statement of common sense if vast fortunes are being a hoarded in the hands of a very few people people who couldn't possibly spend that much money in their lifetime or their kids a lifetime or even their kids' kids kid's l

fourth but even if you look at the entire year of two thousand and twelve it's very very weak g.d.p. growth and i actually think talking about manipulation i think the only reason that we had a positive number for g.d.p. in two thousand and twelve is because the government is under reporting inflation i think of the inflation rate accurately reported by government statistics i think the u.s. economy would have in fact contracted in two thousand and twelve i think it didn't contract is just that we're not being honest about it as you had mentioned much of the discrepancy in growth can be attributed to military spending it seems that there was kind of that splurging in the third quarter and then a plunge of defense spending later do you think that was intentional that that wasn't a tactic that they use. well it might have been but you know also our trade deficit got a lot bigger and that subtracted from g.d.p. that is a problem that's only going to get worse and you know think about this we've had a tax increase on everybody here in two thousand and thirteen so americans are going to be payin

perform where we needed to perform to get this kind of going in the right direction to increase g.d.p. growth to increase the belief in the american currency again and so you know we shall see and then finally we have just about a minute left but i have to ask you this obviously i'm timothy geithner took a few punches here and there in his day from our lives of the industry is then called the fail or out in chief and what not but i have to ask you he was it love him or hate him moving the industry in the right direction and terms of regulation so are we going to lose that momentum with with jack's nomination here i you know again this that's a jets of the debts a job that that was very difficult think jack lew inherits even more difficult job as a result of you know the economy and the belief in the united states currency in our credit rating in a whole bunch of things here's the key here is that all of these things you're seeing are actually linked and there's a domino effect to a lot of them so that job in particular is going to be you know heightened scrutiny and. you know are not necessar

only three decades in the two hundred thirty year history of this country and we had sustained g.d.p. growth above three point two percent we're and i don't think it's any coincidence that all the three decades of the top income tax rate was ninety one percent it was the fifty's the sixty's in the seventy's maybe a relation to that but i can saw that and let's not want to go back to it was good enough for dwight eisenhower richard nixon it's good enough for me but the problem if you take all that money there would be no money the following year to take so you're giving everybody around the world. what it's about are not sure at all you all want or you know talk about what i don't know if you're let's talk about economics here what we know about economics is something called money multiplier some things i think sometimes republicans forget about it you would have dollar into the economy that creates four dollars on the out there because my one dollar goes to pay for something the person who gets that money they pay somebody and that . pay somebody and that person pays with the money that equa

you have sluggish g.d.p. growthnd facing an issue lying the debt ceiling, people are very cautious, they should be. i think this may be a bill d.c. wants to make the person that is on the fencing out and go through the process of buying a home. all i'm suggesting make sure you are prepared and you have the funds in place to do that. >> jamie: understood. thanks so much kyle. >> gregg: chuck hagel is under fire from so many sides as he gets ready for a tough confirmation battle. how much of the criticism is fair? how much is missed? we'll take a closer look with a aaron david miller. >> jamie: we are waiting to hear is lance armstrong prepared to admit to doping. what they are saying about the interviewer with oprah winfrey. >> i try not to let it bother me and keep rolling right on. i know what i know and i know what i did. that is not going to change. what are you doing? nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i sa

thrown spain and greece into nearly 27% unemployment rates and all three countries into negative g.d.p. growth. we will need to address the debt more and more as economic conditions improve. and senator hatch was correct to point to health care expense as our biggest national fiscal concern. it would, however, i believe be a misdiagnosis to focus on medicare and medicaid as the source of the health care spending problem. indeed, medicare may be the single-most efficient health care provider in our entire health care system. medicare is a place where the health care cost problem hits the federal budget because the federal budget pays for medicare. but medicare is not the underlying source of the problem. i hope that this was what senator hatch meant when he said that -- quote -- "the problems with the program are systemic" -- end quote. and when he said that the solution is -- quote -- "structural reforms." end quote. i know that one of the leading health care providers in the country, one of the best, at seeing the health care cost problem problem as systemic and best at addressing it with str

g.d.p. report it's negative growth time. how about this one. despite lousy g.d.p. report u.s. economy is primed to expand. it didn't look like it to me. good news in a bad g.d.p. report. good or bad? >> it's ridiculous. we have had --, no, i don't think so. we've had the worse single recovery in the history of the u.s. in fact the recovery is much worse below the next worse than the next worse is below the best. it's tragic. >>> third quarter analyzed 3 pchblt 1% growth to a negative growth, what happens? >> you have the whole out put of the economy shrinking. not just expanding slowly but it's shrinking. you can explain some of that by sequestration and defense spending was down a lot but you still have a lot in the economy. we know how to fix it. spending restraint and free trade. >> eric: the laffer curve. thanks for joining us. not ready to cut, listen. >> the president told him personally the country does not have a spending problem. did that happen? >> you know, there is a lot of reports about conversations internally. i don't have a readout of any of the president's per

g.d.p. number and that's why this economy is severely in encumbered and has no prospects of growth whatsoever because it's one of the most indebted countries of all the g. twenty countries i think it may even in fact be the second most indebted of all the g. twenty countries now. i t.v. poll the population here and only six percent six percent of the u.k. population realised that the national debt has been increasing ninety four percent didn't know this because of all of this propaganda when in fact david cameron's policy is to increase britain's debt by sixty percent more than any european country to increase it more over five years than labor did over thirteen years just yesterday we learned the national debt had hit one point one one billion pounds and it's heading to one thousand four hundred billion one point four trillion pounds which by the way is about what the cost of the bailouts of the u.k. banks is that that number the connection is not a coincidence and not only is the debt growing but there is no growth it would be one thing if there was debt was rising in the growth was rising

if you can it shows up on the charts you could you could measure you could measure the growth in g.d.p. murky short term slop look with the cascades and interest rates first from five percent down to three and then from three percent down to under one percent and both of those she you judy hello peter drops in interest rates were accompanied by seven point five trillion dollar in a trillion dollar bloat in the less than one year slot derivatives positions of j.p. morgan good point i mean jamie dimon and j.p. morgan are the biggest terrorists and you know a couple of things on the nomenclature side first of all it's funny because on wall street or in the finance business you use the word execute to talk about a trade the train was executed and but you know there's a double meaning to that obviously because they're executing individuals or and this war of terrorism i want to be clear i mean in the literal sense it's not a figurative expression you know that they are literally terrorists they are any law that applies to anyone who blows people up and commits mass murder should be applied

g.d.p. number and that's why this economy is severely in encumbered and has no prospects of growth whatsoever because it's one of the most indebted countries of all the g. twenty countries i think it may even in fact be the second most indebted of all the g. twenty countries now. i t.v. polled the population here and only six percent six percent of the u.k. population realized that the national debt has been increasing ninety four percent didn't know this because of all of this propaganda when in fact david cameron's policy is to increase britain's debt by sixty percent more than any european country to increase it more over five years than labor did over thirteen years just yesterday we learned the national debt had hit one point one one billion pounds and it's heading to one thousand four hundred billion one point four trillion pounds which by the way is about what the cost of the bailouts of the u.k. banks is that that number the connection is not a coincidence and not only is the debt growing but there is no growth it would be one thing if there was debt was rising in the growth was risin

and you see that where the austerity plan was followed, the results have been far worse -- lower g.d.p. growthhigher unemployment. we're actually struggling through better in america by understanding that when the economy is collapsing, if the federal government withdraws even more money from it, it just collapses faster and you postpone the period of growth and recovery. this business of we only have a spending problem, well, you can look at the revenues as adequate, but it depends what you're measuring it against. if you're measuring revenues against the times when we had a balanced budget, it's always around 20%. it averages around 20% of g.d.p. we're at 16% right now. there's a huge gap. if we drop and try to balance a budget, which is what i think we would like to achieve, at 16%, we're going back to the social conditions of the early 1950's, a time when many seniors still lived in poverty. and i know that the party on the other side likes looking back, but i really don't think they want to look back to that, and i really don't think most americans want to live in a country in which that'

but the commerce department said economic growth, contracted in the last three months of 2012. the g.d.p. shrank by 0.1% the first time that's happened since the financial crisis began. the fed said in its policy statement today that it continues to see "downside risks" to the economy. unemployment is still "elevated". but household and business spending advanced. >> susie: darren gersh begins our coverage with that weak reading on the economy. >> reporter: last quarter, defense spending fell off the fiscal cliff. as lawmakers bickered, manufacturers who make things for the pentagon cut back production sharply-- defense spending fell 22% in the latest g.d.p. report, tipping the economy into the red. >> certainly manufacturers are pulling back and i think this is a bit of a wake up call that these cuts are real and that they have real effects on the economy. >> reporter: economists and markets did not panic over the drop into the red, because the economy is still showing signs of solid growth. businesses are still buying equipment and software. housing continues to bounce back. and consum

g.d.p. on defense so there's a lot of room for growth and i think that's exactly what we're going to be seeing as japan is looking to buy some more global hawk drones and china is launching a new line up to its own fleet of drones so i think both sides are really preparing to to ramp up military expenditures quite a bit right now as both countries are preparing to pump up the defense side of things to china's drones program especially is it its infancy kether way to compete with a u.s. trained and supply japanese drones fleet. well that's a good question and there's a lot of speculation about what the chinese drone fleet is actually capable of a lot of the specs and other things that have been released about their drones show that they are more or less clones of us u.s. craft so for example layers the c.-h. for the we know long and the long and these are those are basically just clones of the reaper the predator in the global hawk respectively so it looks like china is really just attempting to clone us technologies and if they're successful in that i suppose then it is feasible that they'll b

g.d.p. report didn't change that plan. >> what the fed is trying to do is generate stronger labor market growth and labor market performance and we don't really have any data on that yet. so we don't have the employment report yet, so we think it is just status quo for the fed at this time. >> reporter: well, almost status quo. the fed continues to watch congress closely for clues about whether deep, automatic federal spending cuts will take effect in a month or congress will decide to close down parts of the government as republicans and democrats battle over the budget. >> i think the fed is very conscious of the fact that fiscal policy which had been providing stimulus earlier in the recovery had really now turned to a strongly contractionary phase and so, when the fed thinks about what it needs to do, it views that as part of the backdrop for its need to continue to be accommodative. >> reporter: most analysts expect the economy will bounce back and remain positive for the rest of the year. of course, that assumes policy makers in washington don't take the economy over another cliff. darren gersh, "n.b.r.," washington.

growth. our main finding is that across both advanced countries and emerging markets, high debt/g.d.p. levels (90% an above) are associated with notably lower growth outcomes." to sum it up, mr. president, when you have a debt -- the gross debt of more than 90% of our g.d.p., you are headed down a path that dramatically reduces your future economic growth. that means we are reducing future economic opportunity for the people of our country. mr. president, that is why this matters. because it will retard and restrict economic growth and opportunity for our people. and here's what the congressional budget office tells us is the long-term path that we are on. we're already over 100% of our g.d.p. in gross debt. but the c.b.o. tells us, we are headed for a circumstance that the debt will be 200% of our g.d.p. by the way, mr. president, this is not gross debt; this is the publicly held debt. gross debt is even higher, about 30 points higher than the publicly held debt. so, mr. president, we are on a course that is utterly unsustainable. if we look at what's been done -- because those who say

but the commerce department said economic growth, contracted in the last three months of 2012. the g.d.p. shrank by 0.1% the first time that's happened since the financial crisis began. the fed said in its policy statement today that it

g.d.p. per capita increased by the factor of ten and very few countries in the world actually get chills that kind of growth russian economy is poised to grows from a two trillion dollars economy to three trillion dollars economy so really such a busy message. ok but. for my point if it was so. rosy for the russian economy why was negative so not very fit dress today because that was what it was all about right well absolutely but actually negative scenarios are really important because like they say hope for the best but prepare for the worse and there are always of course the skeptics or those you know that you would call cautiously optimistic including russia's former finance minister alex we interviewed him today and here's what he told us he's among its citizens. with these scenarios are the results of an opinion poll of three hundred fifty leading business when they're experts working with russia. t.v. did not clearly see the real measures taken by the government to improve the investment climate but the quick that's why all three scenarios no matter where they are based on a high or low oil price tur

but the commerce department said economic growth, contracted in the last three months of 2012. the g.d.prank by 0.1% the first time that's happened since the financial crisis began. the fed said in its policy