i would like to stress that in estimating that stainable long run rate of unemployment, we are not saying it was a desirable state of events or circumstances, we are only say thanksgivi ing that monetary policy cannot bring unemployment below those levels based on our current information, be however other policies effecting workforce skills and fiscal policy and trade and all kind of other policies could bring down the stainable rate of of unemployment and i hope congress will consider ways to address that problem. >> we have started to see a revival of the manufacturing tech sector, 50,000 jobs added last month. is there anything that you would suggest that we do to speed up the return of the manufacturing jobs? >> well, the recovery of the manufacturing sector has been an encouraging development, manufacturing has led this recover significantly. one reason that it's doing so, is that american manufacturers have been competitive on to global stage. and as emerging markets in other countries grow quickly, they represent a source of demand for our manufactured goods as well as some of our

in estimating that stainable long rate -- run rate of unemployment, we are in no way saying this is a desirable state of events, state of circumstances. we are only saying that monetary policy really can't do much to bring unemployment in a stainable way below those levels based on the current information, other policies effecting workforce skills and the structure of the labor market, fiscal policy and trade and all other kinds of policies could bring down that sustainable rate of unemployment, and i hope congress will consider ways to address that problem. >> we started to see a revival of the manufacturing sector, 50 thousand jobs added last no. tell us, is there anything that you would suggest that we do to speed up the return of the manufacturing jobs? >> well the recovery of the manufacturing sector has been an encouraging development. manufacturing has led the recovery very significantly, one reason it's doing so is that american manufacturers have become increasingly competitive on the global stage as emerging markets in other countries grow quickly, they represent a source of

>> reporter: we asked them, is this rally dus stainable. for the first time, they said, yes. they believe that consumers are out there spending more money, specifically at retailers, like walmart, macy's, home depot. and one of our experts said, a trend over the last few months, is more consumers are buying plates and utensils. they're upgrading. they're feeling comfortable with getting rid of the old and buying some new things. >> they're things they can choose to buy. first time they all said it to you? >> reporter: first time they said the rally is sustainable. >> thank you, bianna. >>> now, a big worry for the american military tonight. all because of what they say was a cultural misunderstanding. apparently, u.s. forces in afghanistan decided to discard old copies of the koran, by burning them, which muslims would never do. throngs of muslims gathered to throw rocks in anger, as the u.s. raced to come up with the right kind of apology today. did the u.s. do it? abc's martha raddatz is tracking this still developing story. >> reporter: the reaction from afghans was swift,

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has to establish us sus stainable economic growth. what is this china effect on u.s. growth. >> what you've just shown and what peter spoke about, we're going to be talking about this for a long time. there's a simple reason. for the first time ever, ever, the world has to accommodate a systemically important country that is a low-income country. we haven't had this before. normally when you become systemically important, when you start influencing what happens elsewhere, you tend to be a high-income country. not this time. china is so large, it's getting there very early on and, therefore, there's a fundamental conflict between its domestic objectives and global responsibilities. and until that gets resolved china will have problems being accommodating in the global economy and we'll be talking ate this for a quite a long time. >> diane swonk, chief economist at mesereau financial. the u.s. lost 8.7 million jobs as a result of the recession and with the jobs recovery picking up steam we've gained 3.1 million jobs since the low point, but we've got a long way to go, 5

fortunately, the two goals of achieving long term fiscal stainability and avoiding additional fiscal head winds for the current recovery are fully compatible. indeed, they are mutually reenforcing." to address the lack of demand, the president's budget includes a number of proposals that include, one, extending payroll tax cuts and unemployment insurance benefits through 2012. i welcome the fact we seem to have breakthrough at least on the payroll tax cut front. second, providing $50 billion in up front infrastructure investment for the construction of roads, bridges, rail, and airport facilities. third, extending the 100% business depreciation reduction to new investments. as a small business participant myself, i can testify to the value of that. provide $30 billion for school modernization, provide $30 billion for states and localities to hire teachers, first responders, establish and rebuild finally, creating a new tax credits that had jobs and increased wages. my own evaluation of the budget is that it moves in the right drx. it substantially reduces the deficit, the share of gd