coming up next talk to often subramaniam on the peterson institute for international economics he gives his prediction on who will be holding the reins of power not too distant future. i'm sitting down with our. leading economist fellow at the peterson institute for international economics and the center for global development. at clips living in the shadow of china's economic. leader. is a really dominating i mean many in the u.s. would say that the u.s. is still the richest country in the wall that is the most powerful economy at the moment china's g.d.p. for example is smaller than that of the united states. but if you measure it in terms of power it's as big as the united states second china is already the world.

kill charm thank you thank you now if you talk to of and sobre mannion from the peterson institute for international economics thanks china has all this needed to run the u.s. economy as a preview is coming up in about twenty minutes time. at the moment china's g.d.p. for example is smaller than that of the united states that's true but if you measure it in terms of purchasing power it's as big as the united states one second china is already the world's largest trade. three china is a net creditor to the world it finances the u.s. and the u.s. is a debtor that's today and over the next ten fifteen years all these numbers are going to go all in china's favor so the china is going to become an even bigger economy than the u.s. . we mentioned syria just now and the u.n. chief has rejected calls from syria's rebels to impart impose a no fly zone over the country to help bring president assad that the man followed a statement from the fighters saying they're no longer committed to the international troops plan proposed by special envoy kofi annan the rebels claim dozens of government soldiers were killed in clash

coming up next talk to often subramanian from the peterson institute for international economics he gives his prediction on who will be holding the reins of power in the not too distant future. i'm sitting down with arvind subramanian leading economist fellow at the peterson institute for international economics and the center for global development his book is called eclipse living in the shadow of china's economic dominance and president obama. that chinese leader. it's a really dominating i mean many in the u.s. would say that the u.s. is still the richest country in the all that is the most powerful economy at the moment china's g.d.p. for example is smaller than that of the united states that's true but if you measure it in terms of purchasing power it's as big as the united states one second china is already the world's largest trade. tree china is a big net creditor to the world it finances the u.s. and the u.s. is a debtor so it's this combination of the size of the economy the fact the big trader and the fact that it's a creditor confers on it a lot of power that's today and over

leading economist fellow at the peterson institute for international economics and the center for global development. at clips living in the shadow of china's economic dominance. the chinese leader. is a really dominating i mean many in the u.s. would say that the u.s. is still the richest country in the war that is the most powerful economy at the moment china's g.d.p. for example is. united states. if you measure. it's because the united states second. largest trade. treaty china is a big. it finances the u.s. and the. combination of the size of the economy the fact the big. trader and the fact that it's a creditor confers on it a lot of power that's today and over the next ten fifteen years all these numbers are going to go all in china's favor so the china's going to become an even bigger economy than the u.s. and even bigger treated in the u.s. and continue to be you know financing the u.s. so tax combination is what is making china very dominant let me give you one example one example so take the fact that china you know finances the u.s. right or to so much cash three point three

i'm sitting down with arvind subramanian leading economist fellow at the peterson institute for international economics and the center for global development his book is called eclipse living in the shadow of china's economic dominance and here you see president obama vowing to the chinese leader. is a really dominating i mean maybe the u.s. would say that the u.s. is still the richest country in the world it is the most powerful economy at the moment china's g.d.p. for example is smaller than that of the united states.

leading economist fellow at the peterson institute for international economics and the center for global development. at clips living in the shadow of china's economic. chinese leader. is a really dominating. me at the moment china's g.d.p. for example is. united states. if you measure. its. second china. trade. treaty china is a big. it finances the u.s. and the. size of the economy the fact trader and the fact that it's a creditor. today. in china so. china is going to become an even bigger economy than the u.s. and even bigger treated in the u.s. and continue to be you know financing the u.s. so that combination is what is making china very dominant let me give you one example one example so take the fact that china you know finances the u.s. right or to so much cash three point three trillion dollars worth of cash if europe gets into trouble oh no it happened which country in the world has the ability to be allowed to your the united states china because this three trillion dollars and when it has the power or that ability it can always exercise power what could be political ramifica

well that talk to author and supermini and from the peterson institute for international economics he thinks china has all that's needed to run the u.s. economy has a preview of what's coming up here next. at the moment china's g.d.p. for example is smaller than that of the united states. but if you measure it in terms of purchasing power it's as big as the united states one second china is already the world's largest trader. three china is a net creditor to the world it finances the u.s. and the u.s. is a debtor so it's this combination of the size of the economy the fact the big trader and the fact that it's a creditor confers on it a lot of power today and over the next ten fifteen years all these numbers are going to go in china's favor so the china is going to become an even bigger economy than the u.s. and even bigotry of the u.s. . the u.n. chief has rejected calls from syria's rebels to impose a no fly zone over the country to help bring down president at the moment followed a statement from the fighters saying they're no longer committed to the international truce down propos

ted truman, peterson institute for international economics. following up on the last question, mr. secretary, you named three -- listed three things. banking union, growth -- i can't remember what the third one is. fire walls. support mechanism. and implicitly you said that's what has to come out of the summit. >> out of their summit. >> out of their summit, right? >> i was taking their words, their plans, their elements. >> are you confident that you'll get all three, if i may put it that way? >> what they're saying -- >> let me finish the question, mr. secretary. >> when we were together, you interrupted me all the time. >> this time i'm going to give you the last word. are you confident, and what -- you know, and what -- i think this reflects the general questions out of europe here this afternoon, what is the risk that if they -- they're falling short, and what -- and what -- i think this goes to the consequences, including for the broader financial system, including our own. thank you. >> well, i think the stakes are very high for them and for the rest of us, and you know, the

and jacob kirkegaard, who closely watches european matters for the peterson institute for international economics. jacob kierkegaard, let me start with you. all of this stems from the collapse of the real estate bubble in spain and the banks holding the bag. >> basically. i mean what you have on a national scale in spain is essentially what we've seen in some of the regions of the united states, in nevada, south florida, south california, where essentially you have an enormous increase in housing prices and a subsequent bust. and the bust breaks the back of the banks. that needs to be a bailout. unfortunately, the spanish government has been in denial about the true state of its banks for pretty much since the crisis began. but you could say that finally they have run out of options so what happened over the weekend was really the end of denial. >> woodruff: douglas rediker, what caused them to change their minds? because as we have just heard they have been saying for days and days that this wasn't necessary. >> not just days and days. they've been saying it for a lot longer than that. at the en

host: joseph gagnon from the peterson institute for international economics. thank you for your time and your input. we will look at how cities are growing. first we turn our focus to orlando, florida. that is for the annual conference of mayors is happening. joining us for that discussion is miriam hill. she is a staff reporter for "the philadelphia inquirer" and joins us on the phone. what is on the line for ma yors? guest: jobs and the transportation bill. they would like to see more sustained funding for fixing things like potholes. and maybe create jobs. pretty muchobs, jobs, jobs. host: some of the things they are talking about -- have made an appeal to the federal government when it comes to resolving the jobs and transportation situations? guest: they appeal to washington about the transportation bill. they feel there is no sustainable long-term source of funding. you can ask people about what happens if obama is selected verses romney being elected. they have their preferences depending on who you're talking to. they understand that money will from was

host: you are a visiting fellow at the peterson institute for international economics. rt that you did for the rhodium group, explain what that is, why you did this report, and a lot of folks will want to know where the road and group gets its funding from. guest: rhodium group is a new york based advisory partnership. about half of our time is spent doing pink tank research projects. several books under way on the topic from peterson. i've been part of the peterson institute since 1993. an american open door study was done with the asia society based in new york. we are releasing a new study on chinese direct investment in europe through a european think- tank. european council on foreign relations this week in london in conjunction with that. we collaborate with a whole bunch of different think tanks based out of rhodium. we also do work with private- sector clients interested in what the public sector economic trends might mean for strategic planning in the business sector. so we have a mix of think tank and private sector and academic work, and that's what i teach at

host: joseph gagnon from the peterson institute for international economics. thank you for your time and your input. we will look at how cities are growing. growing.

jacob has been a research fellow at the peterson institute for international economics since 2002. from denmark he's written extensively on workforce issues and pension reform both in europe and elsewhere and for the last two years focused on the crisis in european economic reform. let me start with jacob come and let me ask where are we now, how close are we to the edge of the cliff is the european economy? >> let me start by quoting president obama when talking about this and say that the area if you get the diagnosis of the crisis right is doing just fine. what i mean by that is there is no doubt that the area faces a whole host of crisis. the banking crisis and a number of countries, competitiveness crisis across the southern periphery come and we told you about a fiscal crisis and a number of countries. with the overall diagnosis of the area is suffering from is an institutional crisis. it's the sanctioning crisis of the design of the euro area itself, which as it was created in the late 1990's is a flawed design. it basically does not work when you have a major financial and e

reserve, looking at the american family and what it's worth, joseph from the peterson institute for international economics their senior fellow. good morning. >> guest: good morning. >> host: most of the people saw the headlines showing american families, we saw it in the 1990s. did you break out from the headline, what's relevant for folks at home following these issues? >> guest: sure. i think the biggest reason for this decline in home -- in family net worth is the decline of house values in america by far, but also, of course, target is down where it is in 2007 so that's the two biggest reasons. >> host: as far as home values are worth, did that affect all incomes equally? >> guest: well, of course, it affected it in dollar terms, affects richer people more because they have more, bigger homes, more stocks, but proportionally, it affected the middle class worse because they rely more on their home value, and home values fell more. >> host: and so you said the one portion was housing. the other portion was stocks. now, stock as far as buying stock in a company, mutual funds. what's the gamut in what's e

reinhart of the peter peterson institute for international economics and dr. vincent reinhart of the american enterprise institute have found in their research." really per capita g.d.p. growth rates are significantly lower during the decade following severe financial crises. in the ten-year window following severe financial crises, unemployment rates are significantly higher than in the decade that preceded the crisis." now, madam president, that's the circumstance we're in. that is not the fault of president obama. he inherited this mess. and the fact is after a financial crisis, if you look back historically, it takes up to ten years to recover. let's go to the next slide. and for those who say well, the federal government response didn't work, hasn't made any difference, i don't think that's true. i don't think that will stand up to scrutiny. two of the most distinguished economists in the country, alan blinder, who is former deputy chairman of the federal reserve, and mark zandi, who is actually one of the economic advisors to the john mccain campaign, sa

jacob kirkegaard is with the peterson institute for international economics in 2002.risis in european economic reform. let me start with jacob. where are we now? how close are we to the edge of the cliff? >> let me start by quoting president obama when talking about this and say that the euro area, if you get a diagnosis of the crisis right, it's doing just fine. what i mean by that is that there's no doubt that the euro area is facing a whole host of crisis. a banking crisis, a competitiveness crisis across the southern periphery, and clearly a fiscal crisis. we're suffering from an institutional crisis, a crisis of the design of the euro area itself. it is a flawed design. it basically does not work when you have a major financial and economic crisis, like we have right now. what that means is that it is fundamentally a political crisis. about how national sovereignty and deep sovereignty, the kind of national sovereignty over banking regulation in fiscal policy that governments are not willing to hand over to european institutions to the 1990's are now in the proce