the world economy with the current crisis and. i mean the downgrade reflects the fundamental problem with the american economy that they're living beyond their means increasing the debt running huge budget deficits and their political problems which don't make it better indeed many say that the political process the political situation in washington is very very unstable in fact it was political squabbling and bickering led to the eleventh hour i must ask you the american economy apparently is going down the drain here with debt piling higher and higher and higher china getting frustrated that it's having to hold more america's debt here's a country that spends more on its defense the than the entire world combined surely if scaled back on its defense and military spending it could help to save its own economy and calm relations around the world i mean we're talking politics now and obviously didn't inherit the political situation and the economy with two wars and another one in libya going on and definitely not good news and obviously if the spending cuts do happen the downgrade i mean it could be reviewed but they need they do need t

we are so uncertain about where the global economy is going, and we've got this back and forth between the world's two biggest economies, the europeans and the american, that people just decided to take their money out and basically do the equivalent, the global equivalent of taking your money and stuffing it in a mattress. everybody just wanted to pull out and say i don't want to go into tomorrow where this unemployment number is coming out in the morning, not able to get out of my positions. they did it ahead of time. it just compounded on itself, fear took over. and people started selling their stocks in this mass momentum move. >> erin, this is really globalization. and so is the economy at its most raw. what you're seeing is kind of a multilayered rippling down of the economy around the world. you've got europe self-imploding, you've got chinese economy slowing. they've downgraded the american economy in their eyes. you have japan suffering after the earthquake, america tanking as well. when you put all these things together, you have one unholy mess, don't you? >> yes, you sure do. with all the distraction of the debt ceiling conversation. the

share prices plunged on concerns over a slowdown in the american economy. the japanese currency rebounded to the upper 78 yen level at one point on the new york foreign exchange, that's after the yen had weakened to just above -- for the first time in about three weeks. the yen's decline followed japan's intervention on thursday, the first such move since shortly after the march 11th earthquake. the bank of japan's decision to take extra credit easing action weighed down on the yen. in tokyo, trading at 79.10 to 12 yen against the dollar. market players say the focus is how long japan will continue with the intervention when the dollar remains under selling pressure due to worries over the economy. now the intervention by the monetary authorities has so far been unilateral meaning other countries have not taken part. about such a move the european central bank expressed a negative view. a comment was made to reporters on thursday after he was asked if he supports the solo action by japan to buy the dollar and sell the yen. trichet said market intervention sh

that their ceiling of bans on my look at it took place in washington and almost destroyed the american economybecause of all of that because remain in washington which is typical but the chinese indians expect they want a solution to afghanistan that involves older players so it is meet the americans themselves the russians the africans a pakistani sitting down and discussing it america still doesn't buy it and i was pepe escobar weighing in with his thoughts. now it will come as a surprise to nobody that when london raid the bin laden raid is actually going hollywood now the same exact scene that's behind the hurt locker a film is planning on releasing the blockbuster version of a raid right next to cobra jan because of presumably going to put pro-trade the democratic president in some sort of a non tannic like republican somewhere is bound to get upset over this issue and so enter congressman peter king the chairman of the house homeland security committee is demanding a congressional investigation of what he calls propaganda collusion between the pentagon and the white house and he pings th

well it's been an august like no other i summon a summer like no other fact that the american economy may be in crisis our suburbs are falling into poverty schools are struggling cities are on the edge of bankruptcy and jobs are few and far between but congress congress is out on its annual summer break now i do want to give our elected leaders some credit they have of course been working very very hard on numerous critical issues for example working hard to avert the first ever downgrade of our prized aaa credit rating we're making sure that the fourteen point one million americans who are currently out of work that some sort of hope for the future now if you get all of your information from cable news like i do that you'll know the crisis has in fact been averted we can finally move on to the stories that actually genuinely matter take a look. we're being told that the three people in custody are in fact the three siblings of the daugherty gang the f.b.i. is now part of the investigation looking for robyn gardner she's a thirty five year old woman who was on vacation with a man she

after their sealing of pants on my look at it took place in washington and almost destroyed the american economy because of their bickering in washington which is typical that the chinese indians expect they want a solution to afghanistan that involves all the players and it is meet the americans themselves the russians the afghans that pakistanis sitting down and discuss america's. there's a buy it in so mile it's even worse because in somalia. context like we see american and repeat about to famine in somalia nobody puts this into context the famine was caused along many reasons by defect to the united states via its european interfere with so why that has been interfered since two thousand and six and this government that is in mogadishu is the puppets it's your p.l.o. live in american aligned government so al shabaab yet it's not this. eager structure that is going to back to united states out of mogadishu or from southern somalia this is completely ridiculous and there are a lot of five hundred fighters at it off course he when they see that foreign intervention be a very leery of internati

to continue to rise, and nobody believes, erin, that anything this the deal will stimulus the american economy and that, in itself, is incredibly serious, isn't it? >> yes, and nothing in the deal will stimulate the economy insofar as you get the certainty which is a good thing, but as far as we don't know the full extent of the cuts, and you want get clarity until november, but economic growth in general, this is the whole debate of spending money and whether we should make significant cuts and some would argue and including som of the biggest bond investors in the country, and you would think they would be pushing spending cuts, but no, they say we should spend money right now and we should cut when we have economic band width to make those cuts. >> quickly, erin, predictions for the markets? >> well, it is tough. overnight we are seeing the markets in australia open and not gains there, and weakness there we are seeing because of the weak u.s. manufacturing data, and so we will see what will happen tomorrow, an obviously, everyone is expecting the senate to be a rubber stamp continue this c

itself it's the noose that was used to hang these other countries it's now being used to hang the american economy and the american people are the last sin no the joke is on them speaking of this relationship with china many of our goods in america are made over there and therefore the actual american workers don't make much money because they have no jobs and i want to point out an interesting headline in the last few days here in america apple now holds more cash than us government so apple is now war cash rich then united states government figures from the u.s. treasury department show it figures released by the u.s. treasury department show the country of the united states currently has a total operating cash balance of seventy three point seven billion dollars this compares with apples seventy six point four billion of cash reserves which has built up during a phenomenal half decade of strong sales of course most of their goods are well they're designed and innovated in in the united states but they're all manufactured in china just brings up a number of interesting point stacey first of all

released at 8:30 eastern time, just three hours from now, expected to bring more bad news for the american economy. the question is -- what can president obama and congress do now to stop the economic bleeding? they better get going. >>> and dozens more reported killed by government forces today in the syrian city of hama. the question is -- what did secretary of state hillary clinton have to say about the situation there? and when does saying things cease to be enough from the international community? it's way too early for this. >>> good morning, i'm willie geist, and this is "way too early," the show that's glad at times like this it keeps its money in coffee cans in the back yard. glad you're watching on msnbc or listening live on sirius xm radio. shoot me an e-mail or tweet me and let me know what you're doing up right now. or do what el district woods does and text your response to 622639. we'll read the best responses later in the show. >>> the next 30 minutes will be your cram session for this friday, august 5. a busy, busy day. we've got reports now just crossing the wires that a nato att

horrific christmas gift to the american people it is a stunning demonstration that the whole shift of american politics now is not to enter into a crisis and beef up the economy with what the government can do but basically to have the government turn its back on the bass of the american people a few short years after republicans and democrats alike poured trillions of public money into the banks the insurance companies corporate giants like general motors no one then worried about whether the government could live within its means it was an emergency it was something that the national well being required as if the needs of the american people already hammered are not a national need as if we can no worry about living within our means when it didn't bother us when other people were the beneficiaries of the government's large s. for me as a professional economist this is a stunningly ineffective dangerous act to take for an economy that's already struggling but as a person with what i thought were american values the this location between how we treat the corporations and the rich on the one hand by excluding them from having to pay anything and take away basi

take to return the american economy around. well it's the same with the u.s. as it is. you're ultimately cutting. cutting cutting spending and raising taxes those things can provide an interim solution in terms of revenue but they don't really provide an ultimate solution the ultimate solution is to get the economy growing again and then means thinking about productivity it means thinking about wise investments both public and private and it also means of thinking about what kind of tax system really makes sense and i think that there is this debate about raise taxes or lower taxes but i think you'll see this evolve into a much more substantive discussion in the united states about how to reform taxes make them more conducive to growth and hopefully if that happens then we will see growth and will grow out of this problem. patrick professor university is call it cannot mix of economics and management in beijing thank you very much indeed. moving on now the u.n. security council has held a closed door meeting on syria with pressure growing after the latest shootings by s

they haven't recognized the risks with the world economy with the current crisis and i mean this is the downgrade reflects the fundamental problem with the american economy that they're living beyond their means increasing the debt running huge budget deficits and their political problems which don't make it better i think moving towards a basket of reserve currencies and i think china is definitely. one of the big players in the. economist richard wolffe you told us that many are waking up to the reality that the u.s. economy is crippled. we've had twenty years of being told that a private enterprise economy is the royal road to success and prosperity forever then we had a crash of that system now we've had a recovery by a government that took care of the banks and insurance companies first and the sure the purse it would trickle down it's not trickling down that's what is unemployment numbers mean that's what the increasing foreclosure of people being thrown out of their homes means and so on the stock market is finally the investment community itself realizing that this system is broken and there is nothing on the horizon to take it out and th

last ditch attempt to salvage a dent strategy the new great depression really be underway the american economy as well as much of the global economy is heading into the greatest depression the united states can't deliver on its wars that losers wars where the iraq afghanistan the war on drugs the war with libya they're losers the government did everything that they touch why would any thinking this old look at the republicans and the democrats the inept and the incompetence to come up with a program that's going to salvage the nation investments having confidence looking to the same people that caused the problem to resolve it that's called insanity. european markets are also braced for monday morning off they took a hammering last week even central bank officials are holding emergency talks on how to prevent italy from becoming the next victim of the debt crisis all that saw for the german government reportedly admitted that the new rescue fund won't be able to save it to lead the euro zone's third biggest economy if it doesn't leave health this week europe and america's debt difficulties tri

also for the american economy. we wish him the very best. joe, thank you very much. >> thank you for having me, piers, i appreciate it. >> let me bring in the assistant manager. >> i think this took everyone by surprise. tim cook has been the behind-the-scenes guy at apple for years now, and in the past few years he's really been elevated. he's taken on a much more serious role. but he is a very, very -- you know, he has had steve jobs' ear, he's really been running the show behind the scenes for quite some time now. he is -- it's funny, tim cook is sort of an operations guy. he was a lifer at companies like come pack and ibm before he came to apple. he really came to apple to manage inventory, make the trains run on time, and then he just really proved himself, and obviously took on much, much more responsibility. but there's nobody that knows this company better than steve jobs than tim cook. >> having said that, it's massive shoes to fill, now that he's got the ceo job. and part of steve jobs' brilliance was his personal marketeer for the

to continue to rise, and nobody believes, erin, that anything this the deal will stimulus the american economyhat, in itself, is incredibly serious, isn't it? >> yes, and nothing in the deal will stimulate the economy insofar as you get the certainty which is a good thing, but as far as we don't know the full extent of the cuts, and you want get clarity until november, but economic growth in general, this is the whole debate of spending money and whether we should make significant cuts and some would argue and including som of the biggest bond investors in the country, and you would think they would be pushing spending cuts, but no, they say we should spend money right now and we should cut when we have economic band width to make those cuts. >> quickly, erin, predictions for the markets? >> well, it is tough. overnight we are seeing the markets in australia open and not gains there, and weakness there we are seeing because of the weak u.s. manufacturing data, and so we will see what will happen tomorrow, an obviously, everyone is expecting the senate to be a rubber stamp as you and wolf were

ceiling followed by the last minute deal is widely seen as another factor undermining trust in the american economy what is going to put not explained. help us avoid the default debt ceiling nation default and this crisis time's running out the entire world is watching it's been a public spectacle filled with the bickering grandstanding and lack of compromise i devise of debate over raising the u.s. debt ceiling created an unprecedented climate of uncertainty over america's so-called sound economy he damage been done no matter what happens now everybody really thinks the united states isn't so secure it isn't so safe even if the craziness subsides it seems to have gotten real close and who knows whether the next month next year this war and blow up again since the underlying causes economic problems are getting worse in this country your point five trillion dollars of america's borrowing is owed by foreign countries experts say washington's mismanagement may cause investors to abandon the devalued dollar and their partnership with america it's like being married to someone deciding you have to so m

there is a little bit of a profit that goes into the american banking firms, but it is a minor issue for our economy. we should not have a set of regulations dictated by the worst banking regulator in the world. we do not want iceland and ireland to dictate the terms of american banking regulations. bangs will say there is some country that is blocked by the banks. it is going to have low regulation and can do things that we cannot do. we need to focus on what is could for the american economy. >> i could not agree with you more. we do not need to fight the whole war. we have much higher capital standards. we do not want to have a race to the bottom. what we want to do it is used our clout to ensure that regulations supervision abroad, with respect to capital are applied fairly. the issue in terms of competitiveness and meeting our high standards is important. when a panic in serious comet in respect of of the amount of capital, if people get panicked enough, they withdraw funds. it is in part to the genius of banking. one is the maturity transformation ability of the banks. people deposit attacks,

economy. we're a very strong country. and i have enormous confidence in the basic regenitive capacity of the american economy and the american people. >> reporter: and, carl, even as republicans criticized the white house over the downgrade, secretary geithner turned it right back on congress, saying they own our credit rating because they have the power of the purse. >> john, thank you. >>> for more on the global impact of all of this, we're joined by cnbc's michelle caruso cabrera in rome. what happens to markets where you are could well set the tone for the dow here tomorrow. >> reporter: yeah. absolutely, carl. and countries around the world seem rattled by the u.s. downgrade as well. markets in the middle east sunday, today, were opened and they tumbled badly. new zealand just opened. it's down as well. as for here in europe, ironically enough, they have even bigger debt problems. there are three countries here, portugal, ireland, and greece that cannot pay their bills without the help offa bailout. and the situation has grown so bad that just an hour ago, new measures were announced to help this country, italy, stem of

ditch attempt to salvage a debt strategy the new great depression may already be underway the american economy as well as much of the global economy is heading into the greatest depression anything everything that you're doing is not going to salvage you the great depression is underway and all they are doing is trying to make it look as though they have a plan to stave it off you're not going to you know what's a reputation a reputation is by what you delivered in ited states can't deliver the united states can't deliver on its wars it loses wars with iraq afghanistan the war on drugs the war with libya they're losers the government did everything that they touch look at all the trillions of dollars the tens of trillions can have been pumped into the system since the panic of zero eight struck by the federal reserve why d.c. with the stimulus bailouts too big to fail everything they do they turn to failure lie with any thinking it's dulled to look at the republicans and the democrats and the incompetence to come up with a program that's going to salvage the nation investments having confidenc

russians have split ical struggle to resolve the crisis prime minister very very putin says the american economy stays at risk despite the deal which means washington could no longer be a symbol of economic stability around the world. and. actually there's nothing good about it it just goes boom a few more systemic decisions this colossal debt fourteen trillion normal means of the country has been living on credit which is really bad for one of the world's leading economies this means they live beyond their means and put upon the entire world economy to some extent they sponge on the world economy and on and on a political position this means that firstly on the reserve currency should show up in the world not just the dollar and the euro should be consolidated. with the regional reserve currencies the ruble can become a regional reserve currency. and coming up ahead on the program are reported voices. i haven't seen anyone from c.n.n. or fox news or any other big news channel here and it's really sad and we also deserve a chance to be heard out tens of thousands of israelis demanding that their

american economy. and consumer confidence and spending do a dance together. when one dips, the other goes down. which means less growth in the economy. corporations are not going to be hiring. it means job numbers are not going to improve. until those numbers improve, the american people will not feel confident in this economy. >> i want to put all three of you on the spot here and ask you where should the average american put their money now? i'm going to start with you, diane. only less than ten words. where should an american put their money right now? >> well, i'm not an adviser. i still bet long on the u.s. economy and u.s. equities. i'm still along the stock market. we'll see these opportunities in the stock market to do a double dip -- when they dip, they do allow us to double down. that wasn't ten words. >> you would buy which kind of stocks? you've used way past your limit, but what kind of stocks quickly? >> i'm still variablish on exports and multinationals, manufacturers in that sector. >> okay. leigh gallagher, can we try the ten word rule with you? >> i'll try. i'm an editor. it mi

moving on now to president barack obama has defended the american economy claiming the u.s. is still a aaa country the markets that don't seem to be in full agreement they followed the rest of the global economy after friday's downgrade of american credit the dow jones has lost more than five percent l.t.v. arena has the latest from the. well the mood right now is still very in secure after president obama u.s. president barack obama addressed to the nation that the market continued going down regarding what the u.s. president did say he said he didn't need a credit agency to indicate that the u.s. needs a balanced long term approach to deficit to cut its deficit nor did he need a credit agency to indicate that the political gridlock in washington is damaging the u.s. president went on to say that washington is not lacking policy or plans what it's lacking is political will he said to many lawmakers elected officials are insistent on drawing lines in the sand and bumping heads we saw this play out for weeks and weeks before there was a deal or surrounding the debt that was re

that's why you will not see a robust expansion for the american economy any time soon. is taking the down a road that americans don't want to go on. we are americans. we're not europeans. there is a profound hostility to us looking like them. >> bill: well, that's right. >> you have got to remember that. >> bill: now nothing is going to get done for 16 months. you agree with that. >> i agree. >> bill: republicans will not agree at all. >> you might get a tax rate cut tore corporations so they bring some of the trillions. >> bill: maybe. he could say i'm going supply-side a little bit. but i don't know if he will. all right, stewart, thanks very much. we appreciate it. >> thanks, bill. >> bill: next on the run down, are liberals worried about the economy? we'll find out. and, later, an culture on the president's leadership and the culture warriors on how god is doing in a public opinion poll. coming right back. at bayer, we're re-inventing aspirin for pain relief. with new extra-strength bayer advanc aspirin. it has microparticles, enters the bloodstream faster and rushe

the debt debate debacle, incredibly harmful to the american economy. we need to drastically cut federal spending, not tip toe through the fiscal tulips. mr. obama and his economic advisors are on the wrong side of all of these issues, so if is he golfing, i'm happy. get him away from the economy. now, if you think that assessment is unfair, you are misguided because in his own words, the president will not admit his economic vision has been wrong. >> look we have actually made the right decisions, things would have been much worse had we not made those decisions that's not that satisfying if you don't have a job right now i understand and this aexpect to be judged a year from now on whether or not things have continued to get better. good grief what exactly is getting better, mr. president? come on. most americans understand the problem. recent gallup poll says 71% of us believe the president is doing a bad job managing the economy. 26% think is he doing a good job and some of them are communists that's just a joke for those of you taking notes for geor