on the economy, does the prime minister think that it is a mark of success or failure that the economyhas flatlined over the last six months? >> it is clearly a success that the economy is growing. the figures out this morning show the economy growing in the first quarter of the year. they show manufacturing and exports up, and we have 400,000 more people in work in the private sector than we had a year ago. however, the right hon. gentleman predicted a double dip. he said that we were going to get two quarters of negative growth, so when he gets to his feet, perhaps it is time to apologise for talking the economy down. >> what world is the right hon. gentleman living in? what extraordinary complacency. his hon. friend the member for northampton south asked what was happening to small business lending. what terrible complacency from this prime minister. six months ago, what did he tell us? he told us that we were out of the danger zone. since then there has been no growth at all in the british economy. yesterday the chancellor was reported to have told the cabinet that the economy was

our belief is the success of women in world economies is going to be the success of the world economy. that is how important this is. lorraine provided some of the statistical background to indicate what happens to gdp when women play a role. as the leaders of a ceo organization like the bay area council, i think we can do more to make women ceo's and to support them, support them as often hours. it is not going to be enough to talk about the policies. it needs to be put in place, to make women succeed in the economy. that is going to highlight the successes in this country and in the apec economies. i will not go through the list of things under consideration. you will be very excited to think about who is going to be coming to san francisco and what is going to be the topic of conversation. so get excited about what is to come. of course, to make this happen, do it in the right way, we are not going to be able to do it without your support. many of the leaders from the bay area are here today. you will be hearing from one of them in a few moments. i want to thank the sat and chevron

eventually i see the u.s. economy, the recovery gaining momentum and i think california and the western states will share in that but it's really, i think, if you look at one factor that separates different parts of the country it's how big the housing bubble and crash were, how important they were for the different parts and those places like here where the housing crash was, bubble and crash was so big and pronounced, this is why, you know, we're still deep in the hole. >> you indicated that i believe that price stability was part of the mission statement and that secondly you felt that higher commodity prices had been driven by global demand. i believe you also indicated that you knit -- think the u.s. is recovering and will pick up the pace a little bit in the next quarter. does that fundamentally mean that you think global demand from other sectors of the world, maybe the emerging markets and countries, will slow down? >> so that would depend on the individual country, clearly. china, which has been growing at an

eventually i see the u.s. economy improving, the recovery gaining momentum and i think california and the western states will share in that but it's really, i think, if you look at one factor that separates different parts of the country it's how big the housing bubble and crash were, how important they were for the different parts and those places like here where the housing crash was, bubble and crash was so big and pronounced, this is why, you know, we're still deep in the hole. >> you indicated that i believe that price stability was part of the mission statement and that secondly you felt that higher commodity prices had been driven by global demand. i believe you also indicated that you knit -- think the u.s. is recovering and will pick up the pace a little bit in the next quarter. does that fundamentally mean that you think global demand from other sectors of the world, maybe the emerging markets and countries, will slow down? >> so that would depend on the individual country, clearly. china, which has been gro

this is a significant hit to the economy. but as you point out prices are down over the last few days. that's a very good sign. if it continues and is sustained then that will be excellent news as we make our way towards the end of the year. in my mind there's no more serious threat to the economy than higher oil prices. >> all right. mark zandy from moody's analytics, good to have you with us as always. >> thank you. >>> coming up next, mixed messages from the gop. is the medicare overhaul on our off table? why a republican ripped over the budget is giving some democrats whiplash. >>> plus, why five rare in a debate. and the speaker wasn't there. we'll look at the president's schedule. if i ask sheila out? of course not. we broke up 6 months ago. but i don't think she'd go for a guy like -- [ ping! ] she says she'd love to. [ ping! ] she can't wait to see me. [ ping! ] she's wanted me to ask her out for over a year now! [ ping! ] she just sent me a video. [ girl's voice ] hi stephen, can't wait for our date! oh, can i see tha

and all that has an impact on the global economy. thank you so much scott for coming on the program tonight. >> thank you very much. >> susie: we've been speaking with scott macdonald, head of economic research at aladdin capital. >> tom: president obama today laid out his vision for the middle east. the most controversial call-- for israel to return to its 1967 borders in exchange for peace. the president also wants to give the region an economic boost, saying the best way to bring democracy is to bring prosperity. darren gersh reports. >> reporter: the arab spring was not just a political revolution; the president says the protests across the region were also driven by people concerned about putting food on their tables. that economic concern will have to be addressed, the president says, if the transition to democracy in the middle east is to succeed. >> we think it's important to focus on trade, not just aid; on investment, not just assistance. the goal must be a model in which protectionism gives way to openness, the reins of com

immigrants are a net contributor to the economy. it is easy to be distracted by the fiscal analysis which is about tax revenues and expenditures. entire categories of people at a certain phase in their life and a certain period in their economy are net users of tax resources. as it happens since we're running a big federal deficit right now, we're all net users of resources. if you add us you will up together, we're not producing enough revenue to cover the expenses of the government. people that are older, children, those are categories of people who are net drains on the economy. that's a fiscal analysis, not an economic analysis. so point number one for your friends who are not persuaded that immigration is a good thing, get them off the fiscal analysis and ask them to focus on the economic analysis. that's a bigger picture analysis. yes, a child of 7 costs money because they attend school and no, they don't work. the last time i checked, that was a good thing. later when they go on to do wonderful and innovative things, whether i

the united states needs to link our economy more closely to the asia-pacific economy in order to experience the kind of growth we want to have in the future. in that regard, there is a very important aspect that i want you to take home and understand today. it is also the most open forum for private sector participation that exists on the planet. there are multiple opportunities throughout the discussions for private-sector people to participate directly in the dialogue that takes place within apec and also to provide ideas and have influence on the outcomes, which we hope to achieve through the course of the year. we have outlined three themes for apec in 2011. being host of apec also means that we are the chair. that mean we set the agenda and the side what proposals are -- decide what proposals are put on the table and then tried to bring around the other economies to our point of view. they also offer their perspectives and we negotiate out, which will hopefully drive for the substantive policy agenda. the three we have outlined for the year are strengthening regional economic integrati

the same is true for the economy. epublicans, business, labor, if everybody is focused on how we are investing in this future, how we're making sure our kids are getting the best education. how we're making sure that we're building good infrastructure, how are we getting our debt under control in a way that shares the burden, if we do those things, we are going to be as strong as ever, and i'm confident we're going to be able to do that. >> mr. president, thanks for being with us today. thanks to all of you who came in, as well. thanks to the folks who submitted their questions online. >> you can see more of the town hall meeting on the economy with president obama sunday morning on "face the nation." and to view the entire town hall meeting all you have to do is go to youtube.com/cbs or cbsnews.com and be sure to logon to cbsnews.com for a special edition of "washington unplugged" with reaction from our participants here today. and it's how well they felt like they got their questions answered. and our most sincere th

today we're talking about energy investment in the russian economy and to discuss this i'm joined by ben errors here in the studio with me he's editor in chief of business new europe we also have erich krauss he's an independent fund manager but i'm here also kosky he is the head of strategic planning and development at unicredit securities and lie to me or to commute off he is chief economist at the critter financial corp ok eric i'm going to go to you first your very well known fund manager here you've been here actually longer than i have and you write this weekly right out of its monthly no truth and beauty and russian finance which is not only very smart it's very funny so my first question goes to you how do you correlate high oil prices and investment in russia and they correlate well or not well i mean there is a persistent myth that the russian economy and market is only about oil and i decided to quit a quick argument with it i mean since oil is a one way bet into the medium term i don't really think it matters very much the point is that what really is been slowing down inv

now it's time to fix the economy." the connection here? >> bin ladden's death of an achievement for the united states. there's a sense of unity. there's a sense of pride. there's a sense of common purpose. and the key issue now is for the politicians in washington, d.c. to translate all that into progress on key issues on the economy. and, too, one is let's deal with the structural component of unemployment. and second, let's see what the medium-term fiscal challenge. both these issues are being hung up by extreme polarization in washington with. and let's hope that this new sense of unity and purpose that the bin laden news created can be translated into something really durable on the economy. >> susie: well, do you expect meaningful cuts on the deficit? do you think both sides in washington can get together on this? what are the chances? >> we are seeing them slowly starting to converge, but they're still too far away. we need principles, susie. you always thought with principles when you had critical negotiations. where are our destina

the economy started to grow again. -- it is now near the two year since the economy started to grow again. despite adding 1.5 million jobs over the past 13 months, there are still over 7 million fewer jobs in the united states than we had before the downturn. these recovery has sputtered at times. our progress has been disappointingly slow. that is not to bank surprising -- not too surprising given the type of recession we have gone through. there has been research looking at financial crises in other countries around the globe. this research suggests that economic growth following banking and financial crises is often weak and inconsistent. some recent economic data has been lackluster. congress estimated the real domestic product as the broadest measure domestic activity rose 1.8% on an annual basis during the first three months of the year. that is quite a bit slower than the 2.8% growth we saw in 2010. winter weather and a few of the transitory factors held down growth in the first quarter. several more persistent f

and the world economy? >> one of the things that our projections includes, we are only producing the forecast today with our -- within three weeks, we will include the detailed projections as we normally do. one thing we included the views of the participants on the amount of uncertainty in the forecast going forward. i think i can say without too much fear of giving away the secret that fomc participants see quite a bit of uncertainty in the world going forward, and a lot of that uncertainty is coming from global factors. i have talked about middle east, north africa developments, which affect oil prices. conditions in emerging markets which affect commodity prices and other things. european situation continues. we are watching that very carefully. obviously you asked about japan. let me first say that i have had a lot of contact with my japanese counterparts, the central bank governor and other people in the japanese government. we collaborate with them on the foreign exchange intervention, as you know. we

the economy is certainly the backdrop. governor mcdonnell, the tornado damage has just been horrific throughout the south. we have a map here that shows just how devastating it's been throughout alabama, georgia, tennessee, mississippi, and virginia as well had significant damage. 342 deaths, 288 tornadoes. this kind of outbreak has not been seen in this country. as much as $5 billion in insured losses. the president and the first lady were touring the damage in alabama on friday, getting down there with folks. both in terms of what you've gone through in virginia and assessing the president's response, how would you rate it? >> it's been heartbreaking. we've had three weeks in a row with catastrophic damage and loss of life in virginia. over 25 tornadoes reported. i've been there as recently as friday to view the damage. we're not used to that in virginia. but i tell you what i see. if the plans from the first responder works like it's supposed to, while the american people might disagree on some things, when we're attack

if we sank the u.s. economy where it would go to twelve fifteen percent that's going to have an impact on the world economy is we're still a big enough economy but it's going to very perverse story that because we have. a terribly healthy recovery believe somewhat of a recovery that's helping to boost the world economy which does increase demand for these commodities and therefore raise their price but to blame that on quantitative easing anything they please their economy would have that same effect so in the sense people want the us economy permanently depressed we're going to see those rising prices are already down to see where everything goes from here on out but i want to thank you for your perspective that was dean baker co-director for the center for economic and policy research now meanwhile while the u.s. government gets to just raise the debt ceiling to continue borrowing more money whether the u.s. can pay off that that or not average americans are not so lucky but wait till you see the legs the debt

yesterday to talk about the economy, the budget and the national debt. this is an hour. >> look at this crowd. apparently the ryan name some people around here. [laughter] really nice to see you and that was very kind, i appreciate it. i want to tie you for inviting me here. i'm a big packer fan. i assume most of you are bears fans. [laughter] it took a lot for you to invite me here. that does not mean we cannot work together. [laughter] as chairman of the house budget committee, i stand ready to do whatever it takes to help you resign jay cutler. [laughter] what i'm here to talk about today is our economy, about the need to get four quarters of consistent strong performance. that was not another jay cutler joke, i swear. despite talk of a recovery, the economy is underperforming. the aggressive expansion of the fed's money supply is clearly contributing to major increases in the cost of food and energy. an even bigger threat comes from the rapidly growing cost of health care, a problem made much worse by the health care law enacted last year. most troub

we're starting to see some signs of hope in the economy. over the last couple of years, we have seen large declines that led to large budget deficits. it looks like things are stabilizing. we are projecting over the next several years we will have a slow, stable recovery in our economy. that is the good news. the bad news is that it is just the beginning. relative to where we have been the last couple of years, it is good. we have a long way to go before the economy is really humming again. on the expenditure side driving our deficit, we have some real long term issues we need to address. the biggest is the growth in our employee pension and benefit costs. that is driving the deficit and will continue to grow for the foreseeable future unless we take some action to correct that. to put that into perspective, we have a $6.5 billion budget. people may ask why a $300 million deficit is a big deal. within our $6.5 billion budget, we have a lot of distinctions about where money comes from and what it can be used for. the biggest distinction is wh

as for direct investment which is what's arguably the most important for the russian economy. the funny thing is this misperception i mean most of the guys who have invested directly in russia are making a mint of money they're doing very very well everybody gets dollar signs in place of eyes when they think of china but who's making money on the direct investment in china not many people in russia most in the doing very well but a lot of people are scared to come in because of what they read in the economist from the financial times ok ben if i go to you in the studio so i'm not sure of really answer the question which i mean there is a public relations issue here but really when is it in a certain point one hundred twenty dollars a barrel hundred thirty dollars about how our investment foreign investment being affected in russia i mean are they coming in growing in or do you say this is too high can it's not sustainable i mean what's the calculation that a lot of for investors are are making a direct link between their the market fall and the price of oil i mean every story a

they taught me that our economy is a product of the american people and our economy does best and government respects the people enough to give them the freedom to do what they do best. i believe that our mission as legislators is to liberate our economy from things that impede growth, to provide clear policies so innovators and entrepreneurs have the green light to move forward and create jobs without having to worry about a lot of second-guessing coming from washington, d.c. my message to you tonight is that we will not succeed in balancing the federal budget and overcoming the challenges of our debt until we commit our government to policies that led our economy chief long-term economic growth. our economy won't grow as we continue to give it a short-term gimmicks from washington, d.c. many problems we face go under the misconception that the u.s. economy can be micromanaged or influenced by government intervention and dorwin -- and borrowing. rather than providing long-term policies that will help our economy, the government offers short-term fixes that will do little right away or end u

>> susie: no matter where you look, things look shaky for the economy-- jobs, housing, consumers, gas prices... >> i think when you add it all up, we're probably looking at a soft patch lasting through the end of the summer. >> tom: "soft patch" or "hiccup," economists question what's going on in the economy. you're watching "nightly business report" for wednesday, may 18. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt >> susie: good evening, everyone. federal reserve policymakers are divided about when to start raising interest rates. according to the minutes from the fed's latest policy meeting, one camp is worried about inflation, the other's concerned the economy is slowing down, tom. >> tom: susie, another measure of the nervousness is the bond market, where investors often seek shelter during tough economic times. bond mutual funds have seen more than $10 billion in new money in the past two wee

being driven by spending by small mini size and surprises retail the normal economy. but some of this is from the outside world is seen to be absolutely important and if the oil prices tanked and the equity market tanks government revenues tank because they use an old ok to such you know they have access on every negative lattimer also. also cost you then really in a way just given what benj is that it really still is an oil story because the oil prices go down so low in russia is in a very difficult situation isn't it respective i mean all of the other elements of how you break down the economy well of course if there will be a substantial correction then of course there will be some negative developments and there are and i mean but on the other hand i would say that. since as a result of the crisis actually we are living in a completely different while a process set out which is actually kind of underrated from the many perspectives but i think it's extremely important to be are living in the conditions of a lot of flexible exchange rate and that will really offset

we were able to bring the economy back from the brink. let's remember now, when george bush left, we didn't know if the country was going to economically rebound. let alone black america. and black colleges. there's a lot of things that have happened. would we like to see more? absolutely. but compare bush to obama in terms of blacks, is to me a nonstarter. >> bush put forth an effort to put more money up to small businesses. let me put it this way. he put more money into small businesses. >> that's not true. >> give me -- bush. >> how can you say that the man that caused the crash in the banks and insurance companies, brought in more businesses. are you kidding? >> hold on one second. 2006, nancy pelosi and harry reid took over the house and the senate. so some of the policies that went through that you're talking about, the crash of the banks and the crash of the economy, that was the democrats. >> we just had a report that came out from a federal commission -- >> they didn't extend the bush tax cuts. >> let's talk about the compromise.

the economy, he says, is demonstrating its resilience... >>yosano: the impact on production will be smaller than was at first thought. interrupted supply chains have recovered at a remarkable rate. far more swiftly than had been expected. >>reporter: government surveys show that over 90 percent of manufacturing affected by the disaster is set to be back online by summer. >>yosano said that japan's worst postwar crisis could lead to opportunity... but that's a theme analysts are skeptical of... >>feldman: we still have two large parties that are at first very, very competitive. really rather at each other's throats in the policy debates. and in addition, both parties themselves are split on many of the policy issues. so if one party is not united, and the other party is not united, how do you get a deal between the two of them? so i think the locals looked at that notion of a trigger forrevival and thought, it's a nice fantasy, but they don't expect it to be coming any time soon. >>reporter: damage to supply chains, which triggered shortages

all of these countries adopted austerity to get the economy to grow. bad enough to spark violent protests in some of these nations. some conservatives in the u.s. including members of the tea party are causing for european-style austerity measures here in the united states. those calls will get louder as the debt ceiling fight comes to a head. i trust they'll set ideology aside and look at the lessons of europe. it's crucial to cut the debt in the medium and long term, but doing so before growth has a chance to take root could jeopardize a real recovery. cutting too severely could lead to high unemployment. what's needed is compromise, something? short supply. the clock is ticking on the debt and our aaa credit rating is on the line. let's hope we can put the politics aside and get us back on sound fiscal footing without derailing this fragile economic recovery. while we could all use the luck of the irish, we don't need the kind of

governments a lot of money into the bo russian economy in the run up to the elections you supported that theory no crees this crisis is our own illegitimate president's fault because surely put it the cash injections were his fault too you lied to russia europe it is in his own people on television and on the rear so it started quite some time ago a very long time ago. absolute power corrupts absolutely. such people don't care about democracy and elections any longer. and he's this way because obsessed with power that is the main reason but he's our ability to look presidential knees but i say illegitimate because he was never elected ritual and he lost to the latest election switch and you'll see a bit he completely subdued everyone you worked with you turning them into pompous is what the people of belarus have to suffer. i wanted to say bill russians but i'd rather go with the people of belarus to avoid is sounding like a nationalist says that well but nevertheless the outcome of the last year's presidential election in belarus is still may i'm old the major reason for the current dev

they don't actually wlblame president obama for the economy. 55% of americans blame george bush. just 30% blame president obama, so he is running counter to conventional wisdom in that people still blame president bush for the current state of the economy. so i don't think it's -- while it looks like a great number, republicans ought to be jumping in and saying, oh, wow, the president is really vulnerable. when you look inside the numbers, he is less vulnerable than that would imply. >> let's take a look at some of the notable republicans who have said no just for the month of may for running for the gop election. jeb bush, donald trump, mike huckab huckabee. indiana govern. both present clear contrast to president obama's view of how to fix this economy in the united states going forward. candy, do conservatives fear that they simply don't have a message that is going to resonate with voters on a national stage when it comes to the budget or particularly paul ryan's plan to overhaul medicare which does not seem to be gaining traction. >> i think conservatives are more worried the

the rebalancing of the economy. but the fact the economy is now growing in the investment manufacturing exports are growing, it don't take it for me the government and the bank of england and the oecd has says there are signs of rebalancing the british economy and that is a healthy sign. what we have to do is try and secure and expand the growth as part of the bank lending we've been discussing, but also the growth review. as i said there is a direct fiscal measure you can take because we've inherited a situation where the government was supported. interest rates pretty much as well as they are so we've got to look at what can we do to help supply a sign that the economy? is a sad, 117 commitments. regular proposals would cost 350 million a year. a presumption in favor of sustainable term of 50,000 new apprenticeship and the next state growth review is infrastructure, and mid-cap companies, look at the power of open data to create new businesses and all specifically look at the rural economy. >> a very final point is

the government a lot of money into the russian economy in the run up to the elections was that the support of the. koreas this crisis these are all illegitimate president's fault because surely the cash injection support his fall to you lied to russia europe is in his own people on television and on the rear he was also started quite some time ago a very long time ago. absolute cowher absolutely. such people don't care about democracy and elections any longer. and he's this way because at least obsessed with power and that is the main recently but he's already illegitimate president i say illegitimate because he was never elected he lost to the latest elections. he completely subdued everyone he worked with turning them into complexes and what the people of belarus had to suffer. i wanted to say bill russians but i'd rather go with the people of bill or to boy just sounding like a nationalist says it all to us that well with nevertheless the outcome of the last year's presidential election is still made imo the major reason for the current devastating economic situation in the country here

that's significant given this is the world's third largest economy. aps not surprising given the huge disruptions it's faced in march. the rest of the reason, australia, the best one, up by 1.3%, nina. >>> what's going on in japan will have ramifications for european countries trading those shares on the markets today. it was a mixed picture where you are. seemed as though there's a mixed picture and a positive sentiment in the markets today. in particular, let's take a look at what's going on in london. the ftse was up by 0.6%. still holding strong where it is. this is partly because a lot of people are looking at one stock that's listed there. it is the shares of the commodities giant glencore after it made a $10 billion initial public offering. we saw that stock actually down by about 2% in early trading, trading at 583 pence. going in the opposite direction, i should say, andrew, to how the company's management thought it would go on its first day of trading. >> yes, interesting. i guess it does say quite a lot about what investors are making of th

people will still talk about the economy. laden does that give the president a talking point to run on or does it just take away a talking point for republicans to attack him on national security? >> i think more so it takes away a talking point from the republicans. as you know, many critics who whined about how he was supposedly weak kneed and didn't have the spine to make the kind of decisions needed to win the war against terrorism. he clearly has put that to rest, put that to rest and has shut them up. i don't think the boost, i don't think will continue to election day in terms of this specific event. what i do think will happen is the economy will continue to be the issue, but if we go through continued job creation the way that we saw on friday 224,000 jobs were created in april, the 14th consecutive month of private sector job creation. if that trend continues and companies continue to hire and the republican gop candidates look as weak as they do today, then i do think he has a good chance of being re-elected. >> le

doing poorly, but, simply put, the u.s. economy is growing at a trend-like rate. >> reporter: so where does all this leave stock investors, who have watched the market gain 25% the past nine months? is it time to take profits? strategist david bianco says no. >> if individual investors should be doing anything relative to the end of qe2, they should actually be making their move from fixed-income a little bit more toward equities. we think large-cap u.s. stocks with global exposure are where investors should be. >> reporter: so there's been a qe1 and a qe2, what about the possiblity of a qe3? most experts say slim to none, unless there is a major unexpected shock to the economy. erika miller, "nightly business report," new york. >> suzanne: here are the stories in tonight's n.b.r. newswheel: stocks bucked a downtrend. the dow gained 38.5 points, the nasdaq rose 15, the s&p 500 was up four. big board trading volume hit 963 million shares. nasdaq held steady above 1.9 billion. and japan's earthquake and tsunami took a toll on u.s. du

. >> and at this point the united states is such an overwhelming part of the tiny afghan economy that if the u.s. pulled out in a big hurry, the whole place collapses and becomes all that much more vulnerable to the taliban. for example, the u.s. and its alleys -- allies are spending more on the training of afghan troops just to replace the u.s. than the entire federal bfpblg afghanistan. far more. which raises the question, if the u.s. leaves, how do you keep doing that? i can't imagine congress wanting to spend that money long after the troops are gone. >> and pakistan? >> pakistan is not as dependent on the u.s. funding, but pakistan has got a lot of leverage. almost all the food, medicine, the ammo we send into afghanistan goes through pakistan. and pakistanis are paid for that. there is a sense that if the united states pulls completely out of pakistan in economic terms, that the u.s. loses a window into pakistan's arsenal of 100 nuclear weapons and one -- while it's not discussed very publicly, the weapons are a lot of what this is about. it's about the concern that al qaeda cou

have a child let me know if i want that we're on our shelves acted on that they were related on the economy and they have via this is john boehner has violated every promise he made and he's allowed nine percent of extremists to pull the whole legislative agenda that well this is my question is is if if the whole thing is supposed to be about the economy if this is what we're supposed to be concerned about right or if we want to make it just about abortion and talk about whether abortion should be legal. illegal or at what trimester when does life begin or any of those debates why would why would the pro-life movement support peace with a solution movement please doesn't in my presence be a story whatever you whatever you want to call it why would their movement want to support a piece of legislation that has no impact whatsoever on rich women it has everything to do with the economy we're talking about no no more the bill is titled no it can only be your money for abortion it flew down to his workers saying we don't need that or only one and only hold on we're going to back on the economy

the global economy in the next 20 years, charlie, will at least triple. now that presents lots of problemses in terms of whether our natural resources on the planet, you know, can withstand it. but with an global economy like that there's lo of room for them and us. and if we are on our game, you know, we'll be, you know, technological leaders. what we won't be is dominant anmore. >> ros okay. first of all, if we are on our game, what does th an? >> it really means two things. it means the things that we ve nowhichre the highly innovative, highly competitive parts of our economy in the tradable, global tradable part. but it's going to mean upping our game with respect to the opportunitiesor our middle income group which are declining. and whe incomes are stagnating. and i think that's where our kind of main challenges are in the next ten years or so. >> rose: in the immediate time, it is an unemployment rate at 8 or 9%. >> that's right. >> and the guess, nobody has a crystal ball, an economist forecasts are dreadful, usually, including mine. but i think t

the economy. the economy is important but the economy would follow with they got everything else. the better what you want the world leaders to solve the bottom line and let's just hope they can set aside their differences so they can work collectively for change. turning now to georgia where there has been a wave of violence at least two people are dead dozens hospitalized and hundreds detained this is the result of a brutal crackdown on anti-government rally on the eve of georgia's independence day that took place just a few hours it took place just a few hours from the government just ninety protesters to nearly three weeks the tension has finishing off what was a bloody end to georgia's day of rage correspondent sara first has more from tbilisi. it was held by the opposition as the day that with. the people. sitting president saakashvili ended in violence and bloodshed a huge pools of riot police moved in on the crowd just minutes after midnight just a independent from. everybody was ok. we've got to leave. as the police closed in water cannons were fired into the crowds rubber