we talk with nouriel roubini of roubini global economics and richard mcgregor, washington bureau chief for the "financial times". >> t unemployment rate is the 9% encolluding partially employed workers. 16.5 including people in jail is 20%, among minorities closer to 30%. very little fraction of this problem has to do with china and the exchange rate, it these do with the policies that lead to the housing boom and t housing bust about the fact that we're not invested in productivity and long-term economic growth. so bme it on t chinese doesn't make sense. of course, in a situation which you have high unemployment rate there is social and political malaise, people blame globalization, people blame trade, people blame china but the fundamental problems of the u.s. are deeper and structural. >> there's no doubt whatever term you use china does manipulate or manage its currency and there are both economic and politic reasons for doing that. obviously they want to support exports which, you know, which are mainly private companies or foreign-invested companys which are the greatest source o

. >> liu: joining me is nouriel roubini. he's the chairman of roubini global economics and from washington, d.c. is richard mcgregor, he's the washington bureau chief for the "financial times." he was also formerly beijing bureau chief and i am pleased to have them both here with me, welcome, gentlemen. nouriel, let me start with you. who is right in this debate: mitt romney or jon huntsman? >> well, i would say the reason why we have a trade imbalance with china are long and complex. ey have to do with mistakes and policies of the united states, policies that have led us to spend more than our income running ever larger trade deficits. on the other side, china is not consuming enough and has had a model of growth has been based on a weaker currency but there are microfactors that affect currency so it's not very black and white in term who was is at fault. i think both sides have had mistakes in policies that have led to these growing trade imbalance and now it's becoming a source of political and policy friction. >> liu: r

years in manuel wallerstein as well from the point of view of this stablish meant more or less of nouriel roubini has being seen in direct li if you see what's going on in the us nowadays the cries the economic crisis in the us the atlanticist economy crisis which involves europe as well and the fact that capitalism is basically being saved by china at the moment it's the failure of a model casino capitalism suitable capitalism this implies the famous one percent i guess ninety nine percent and that's why occupy wall street is such an important movement because they challenge they want they absolutely nailed it in terms of what's the key concept or question the fact that we have a very good style system where one percent basically controls the best the of the other ninety nine and this implies what. this that belies in the concept of liquid more bernese. one i'm not very big fan of darwin myself but last week in italy i was discussing this with with some of my italian colleagues and we came to the conclusion that liquid will definitely applies to maybe one percent or two percent it will p

too who just want a fair shake in the economic game and caroline speaking of socialism economist nouriel roubini as quote one thought once looked down upon do you think it's starting actually you know what that is not the quote there it is. there it is i have a united states becomes like europe and we've already extended unemployment benefits three or four times over our otherwise you have a much bigger social welfare state and safety net or you have people rioting in the streets we have to do something either way either way will have a fiscal problem or a social problem now socialism once looked down upon do you think it's starting to make a comeback and the way things are going is the u.s. heading in that direction. well i don't think so i live with your pride ourselves on having what's called a free market economy even though we've never had an economy that doesn't have some form of government intervention and if you look at the folks on wall the occupy wall street folks are really protesting to get more government intervention and for government to stop with the crony capitalism they

base and hit the iraqi base nearby and that angered, according to our sources prime minister nourielo is is right now negotiating with the u.s. ambassador how many u.s. forces if any will stay past december. he sent a communique to iranians if you keep firing on u.s. forces if you create more instability we'll have to ask those forces to stay. so items seems according to u.s. military intelligence it seems that the iranians got the message and they have asked for their militias to essentially lay low and wait out the for the u.s. troops until they leave the end of the year. jon: the fear is iran will fill the vacuum when u.s. forces leave? >> that is the fear in the u.s. military intelligence community. essentially what they say is that they're are still shia militias are there still training camps inside iran for iraqi shia militias. trainers inside iraq still work withing those militias. there is this cleric, we have a picture of him here, who was photographed back in september at a conference, an islamic awaken conference in tehran. he is seated four rows behind mahmoud ahmadineja