reagin renominated paul volcker.but then in the form of walter mondale the way to answer this question is with the iran hostage crisis. and maybe jimmy carter was asking some hard questions making hard demands on the population with that bligh reef optimism with those supporters it was a nation preferred. >> steadying decades of the incredible growth and movement in america with that progressive movement what are the biggest things they're not doing that they should from the past? >> republicans are very frustrated that democrats winning elections. >> the idea that government should be used to strengthen the economic prospects of the middle-class of economic populism associated with franklin roosevelt who had no problem calling up business executives that is anything short of evil and fireside chats. the democrats slowly began to abandon that. not so much from the '90s but even beginning in the '70s i tell the story of the democrats coming after watergate called though watergate babies men who have not even held offi

to invert theears curve unless you are paul volcker. 2.5 years. 15 months. >> tony dwyer says recession in four years. >> for the class -- >> tony, i did have one of those high-priced tutors, and they don't tell you to go with your first answer. they tell you to get rid of the two obvious answers first. one other point leave he was making was that as a percentage of gdp exports, historically the highest they have ever been, worried about headmans from abroad, but here you are looking at a chart of household incomes that shows we have not been at these levels since the 1990's. where is the wage inflation coming from that we are always going back to? are you concerned that middle-income americans don't have as much money in the pocket and that is holding back market gains? >> major point, and i'm surprised the fed doesn't talk about it more good eye am a macro condoms do not use these fancy charts. i am a macro economist and i use all these fancy charts. this has been revised out. disposable personal income has been underestimated 8.2 2% per year si

when paul volcker, he was asked, will rates go down? the answer was yes. do anything about it. you should hold for the -- things for the long-term that are appropriate for your needs for the long-term. 6%, youike the sound of should buy and figure to hold them until maturity. volatility, you can look through. you shouldn't be able to expect to profit from it. services numbers just coming out, and stephen engle has the breaking news on china's latest reading. >> it came in just in line with the preliminary number of couple of weeks ago. hsbc pmi, 50.4. as i said, that was the flash number which represents about 85% of the final number. today, we got the final number, and it is the final number. 50.4. this is the fifth month in a row that it has been above 50, which means that manufacturing in the private sector is expanding. atever, it is fairly weak 50.4. if you look on top of that, as well, the official pmi that came out on saturday, it is becoming increasingly evident that china is having a very slow time of it with the economy, and they will likely not

ever since that time people like paul volcker and others have been working with us and all the other institutions to really follow the money as carefully as we can. every single project is audited. we have people on the ground who are following the money. and, you know, our understanding is that a lot of this is just related to the inefficiency in the system. on the other hand, if there is corruption, if there are people siphoning off these funds, we have about as robust a system as one can imagine in settings like this to follow it afterwards. so, i think it's really -- you know, as i said, leading into the next question, margaret chan called me at 6:15, by the way, to tell me one of the things they're trying to do is put electronic payment systems in place. we actually know there are great examples of electronic pay systems in africa, one place is kenya. it's one of the things we're going to work on over the next literally days to weeks to get that on the ground. if we can do something more add you theed, people get paid on a card with a cell phone, we'll put it into place. i actua

and ever since that time, people like paul volcker and others have been working with us and all the other institutions to really follow the money as carefully as we can. so several single project is audited. this one will also be audited. we have people on the ground who are following the money. and you know, our understanding is that a lot of this is just related to the inefficiency in the system. on the other hand, if there is corruption, if there are people siphoning off these funds, we have about as robust a system as one can imagine in settings like this, to follow it afterwards. so i think it's really, you know, as i said, leading into the next question, margaret chance this morning called me at 6:15, by the way, to tell me that one of the things that they're trying to do is to put electronic payment systems in place. and we actually know that there are great examples of electronic payment systems that are already working in africa and one of them is in kenya. so it's one of the things that we're going to work on over the next, literally, days to weeks, to try to get that system on