and break the economy.cannot support the kinds of deficits that we have incurred, and there is no question about that. and any frankly, any reasonable economist would say that. >> gentlemen, thank you both very much >>> coming up, what the $2.4 trillion deal means to you. dave ramsey is here to explain. ♪ there's another way to minimize litter box odor: purina tidy cats. tidy cats premium line of litters now works harder to help neutralize odors in multiple-cat homes. and our improved formula also helps eliminate dust. so it's easier than ever to keep your house smelling just the way you want it. purina tidy cats. keep your home smelling like home.

find out what's really happening to the global economy for a no holds barred look at the global financial headlines to name two crimes a report. at three thirty pm moscow time these other top stories on our t.v. nato says it plans to continue its presence in libya as the alliance keeps bombing the towns of sears and main program southeast strongholds in the now mostly rebel controlled country meanwhile people on the ground claim belabors threat to their safety comes from weapons falling into inexperienced hands. russian authorities say two of the suicide bombers who carried out deadly attacks in the capital of the chechen republic has been identified multiple blasts rocked the grounds me on tuesday evening leaving at least nine people dead and over twenty injured. and israel trains are reported the arms west bank settlers ahead of you on both of recognizing palestinian statehood in september but experts warn it's the anticipation of violence that could actually spark a conflict in the settlements. up next our debate so close talk and this time host peter the bell and his gas argue over th

in the global economy i mean are we asking too much of the fed right now. the federal reserve should focus on one thing and one thing only which is to maintain a stable dollar european central bank actually has the right idea they have a single mandate now they're not maybe not doing a great job of it but their single mandate is to preserve the value of the euro we have what's called the dual mandate in the united states where the fed is supposed to somehow preserve the value of the dollar but also be an economic manipulator and somehow try to generate more employment and more growth and that's where we get these easy money policies and things like that which of course as we've already discussed don't really work or if they do work they give us inflation which of course is actually a net negative in the long run so the problem is the legal dual mandate isn't that's a problem but the real problem is that the politicians and the central bankers can't resist the temptation to try to artificially goose the economy there's always this pressure to artificially lo

well maybe it's not it's not at all about recovering or stimulating the u.s. economy but it may be much more about preventing the national bankruptcy of the united states because a reality is the u.s. is sitting on a pair of two hundred and eleven trillion us dollar and fiscal there was really is a number you need to look at not the mickey mouse figure as they look for official national debt numbers because they conveniently include a lot of things of exclude a lot of things from though official book so if you look at all their unfunded liabilities including social security medicare and many other items they have already committed to why they don't actually have the funding that's the fiscal gap that's two hundred eleven trillion of missing funds is not too different from the situation they greece is in and if they go on praying if they don't engage in many many further quantitative easing measures that there are very inflationary nature down the road then that's what they now face a national bankruptcy and on that note i would also say maybe as he said before the fed

is the most optimistic city in the country with the future of the economy. we have this separation in the u.s. that contributed to an unintention pont part of many american elites. there's something else that goes on in periods like this typically, and that's bust psychology taking over, and what we see again and again in periods like this is people become much more jealous of their status relative to others. they engage in zero-sum thinking. politics grow meaner. support for the poor generally diminishes, and so among a lot of middle class people who are not employed, but see the housing values decline and the career prospects decline, you know, to them a lot of the benefits they see, a lot of the government programs that they see are benefiting people unlike them, and they deponent support that -- don't support that. national debt in particular takes on and oversized importance again and again in periods like this. in the early 1980s when the debt is smaller than it is today, a large majority of americans were intensely concerned that the debt was going to

, the global economy are very difficult. and what better time to restructure? i think its one of those difficult tough choices of a major multi-national c.e.o. >> a major acquisition, the c.e.o. says hp is buying uk data analytic firm autonomy for 10 million. >> very active te-- actively traded. one of the big drags on the dow and clearly softener after-hours. lots of market activity, no doubt. let's take a look with tonight's market focus. after a few sessions of relatively calm action, sellers were back out in force. economically sensitive stock sectors saw the brunt of the selling. materials, energy and industrial sectors lost more than 5.5% each. the biggest dow industrial loser is in the materials business, alcoa. shares shed more than 6%. the stock is only 20 cents above its low of last week. this is the past 90 sessions. here are the past 90 sessions for bank of america. b-of-a continues to see big swings, down 6% today on very heavy volume. at just over $7 tonight, the stock is a half-dollar above its low last week. w

strung on the economy. his going to play with conservatives, with independents, for whom the major issue right now is the economy? >> sure. well, it is going to play well with conservatives who are already ready to welcome rick perry into the race. though he's got competition here for the hearts of the conservatives. he'll be popular among them. the independents are something different because he is quite conservative both socially and fiscally. i think you will see the white house tv you'll see the real action campaign go after perry on the thing you mentioned at the end, the highest percent annual of minimum wage workers, the highest percentage of people without health care. he's arguing he wants to opt out of perhaps social security or medicare because he could create a better program, a less expensive program inside the state. they'll also argue this is an oil state. and that that in part certainly does help with the employment issue. so the great thing about having a record is you can run on it. the bad

the average american joe actually is the economy. doesn't come from the top down out of washington. it does come from the bottom-up. so if enough people start doing smart things with their money it will heal the economy. smart things are outlined as having savings for emergency. living on less than they make and getting out of debt which would all be good rules for washington, as well. >> we're getting a lot of reaction on twitter tonight. abnormally high volumes. if you want to get ahold of me, piers morgan, give me your opinion. they are saying that they've had enough of these politicians squabbling, literally, fiddling while rome burns. >> well, there is a lot of that but they've also had enough with this, people with their heads stuck so far up the politics all they can speak in is sound bytes. people stuck on ideology and where they say it's hilarious that the far left says all the economists agree. the far right say all the economists agree. all economists don't agree on anything. they are there to make weather forecasters look

the sour economy is turning them into mindsers. misers. >> reporter: at this chicago target store, heidi pfetcher is checking off the items on her daughter's school supply list. her lesson plan for this year? stick to a budget. >> we're really watching our money and watching our pennies and here buying school supplies and getting ready for the school year. >> reporter: throughout this store we found a lot of penny- pinching consumers. and who can blame them? gasoline prices are still taking a huge bite out of household budgets. and speaking of houses, home prices continue to slide, making consumers feel even poorer. and then there's that nagging problem of high unemployment. even if you have a job, you may be wored about keeping it. just ask chicago public school teacher jim maccione. he worries that state and municipal belt tightening could do away with his. >> it's a little disconcerting as far as making plans to remodel the house, or fix the car. any long term commitment we're kind of afraid to do. >> reporter: barbara gleeson is

>> housing, which was clearly a drain on the economy in the first couple of years of this recovery is now about neutral. >> susie: housing prices rebound in the spring. while the news is good, the market's home improvement may be only temporary. >> tom: and consumer confidence plunges amid wall street turmoil, drama over u.s. debt and fears that an economic recovery was stalling. it's "nightly business report" for tuesday, august 30. 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. stocks flip-flopped today as investors tried to make sense out of a new batch of reports that gave mixed a picture about the u.s. economy. tom, everyone's worried about recession so each new data point is important. >> tom: yeah, and can really drive the market. susie, here's what we learned today: a closely watched consumer confidence index fell to its lowest level in two years. the conferenc

it took eight years for them to do what they did to the economy. 's taking time for the president to get going. >> you can't let that go unaddressed. under president bush, we had 52 months of uninterrupted job creation, the longest stretch in the history of our country. the fact is the housing crisis that was at the center of the economic meltdown in the fall of 2008 was due largely to the policies affecting fannie mae and freddie mac that president obama as senator the biggest beneficiary of their contributions supported. so we can argue that round and the blame game, which president obama plays constantly, but the american people know things have not gotten better under this president's leadership. there's a failure of leadership. the fact is there's a growing sense out there, the biggest threat to his re-election is the growing sense that this president may be in over his head. you're starting to see that take root with voters and especially independent voters setting aside the policies, a concern about the failure of leadership is very threateni

not a lot of good news in terms of the big picture for the u.s. economy of course the only thing that we can be certain of that this deal means is that it averts the self imposed potential crisis of a u.s. default which would have been the first time this country faced could have defaulted in its history what we do know in this legislation is it does sort of cut spending by about two point four trillion dollars over the next decade what that means in the short term for the u.s. economy is potentially a lot of feeling of growth now we have to keep in mind that the united states has grown the g.d.p. has grown by just a mere one point three percent in the second quarter we saw that unemployment rates are still astronomically high at nine point two percent and so a lot of economists are saying this is not really the time to be cutting the spending to be capping spending it does of course satisfy a lot of the political desire by some of the more tea party oriented republicans but it does potentially threaten domestic spending meanwhile we also have to keep in

would that do anything to fix the economy? would that create jobs? >> well, i think qe2, it would have a positive announcement effect and some positives thereafter. the problem, zeus -- susie things get a lot worse before we get a qe3. if it was a bipartisan effort to encourage investment and capital formation which would lead to jobs. or the european central bank deciding to increase the sheet to solve some of problems there. either of those would get me more excited than a qe3. >> susie: let me go back to the debt deal and the credit rating. one of the credit rating agencies says it will set a path. it's fine on came the u.s.'s triple a credit rating. what do you think s&p and moody, what do you think they will do and what's it mean to the market. >> i think they will be watching like all of us with uncertainty like okay what are they going to do with this remaining trillion and-a-half plus. where are those cuts going to come from. so hopefully they'll give the u.s. the benefit of the doubt until we get that theory but that's not a foregone conclusi

can you khana me the european yukon and me the chinese economy and perhaps even the indian economy cannot be in very good shape growth rates are slowing down and if the u.s. dollar continues to devalue. perhaps the prospects of. q.e. free quantitative easing free then there may also be in frasier and because of the rise in the prices of the resources out there by contributing to a kind of step for asian situation and this is the main concern on the part of the asian pacific countries we're talking about the impact on asia pacific countries what about for the u.s. what's the worst case scenario for the u.s. at the moment. well i think for the moment the obama administration certainly has been weakened and the major concern of course is that the whole international financial community is that disappointed with the fact that the lowering of the long term debt has not been resolved rating agencies earlier. at these a reduction of long term debt over a period of ten years by the amount of these four trillion dollars and now we see only a reduction of two point four trillion dollars or so and t

more say the economy is getting worse. joining me from michigan, senior obama campaign strategists, david axelrod. thank you for being here. i want to ask you first -- >> sure, candy. >> the president is going to have the new jobs plan and a stimulus that is coming up in september, he's going to announce it. tell us what you know about that, and in particular when we talk about modest adjustments to entitlements, what is that? >> well, first of all, let me say, these are not all new ideas. some will be new and some we already talked about. there are things he has been asking congress to do for sometime, and some of them, for example, extending the unemployment -- the payroll tax cut that was passed in january for another year. that's something that is absolutely critical to do. there are basic things we need to do relative to infrastructure, rebuilding roads and bridges, and that needs to get done. so some of the things will be familiar because he has been talking about them. one of the things that was disturbing to me, can

. >> it does nothing for the economy right now. nothing whatsoever. >> 98% of what i wanted. >> we're cutting spending too soon and too fast. >> a belief among what i'll call faux-conimists out there. some of whom are on the right. some of whom are on the left. >> 98% of what i wanted. >> that is not the case. that is not the case. that is not the case. >> incentives is exactly right. >> but republicans still blame the president. >> there's no scenario right now for this economy being thriving when the president runs for re-election in 2012. >> every presidential election comes down to basically a simple question. are you better off today than you were four years ago? >> president obama is trying to put the debt fight behind him, and focus now on jobs. >> put this in the category of the last thing president obama wanted for his birthday. >>> breaking news tonight. the dow plunged more than 500 points today. its worst day since the financial crisis in 2008. all of the market's gains for 2011 were wiped out this afternoon. there could

>> tom: and as we continue our look at fixing the economy, we head to small town america. >> i'm diane eastabrook in belvidere, illinois. still ahead, i'll tell you what one midwestern town thinks the government should do for it. >> tom: it's "nightly business report" for wednesday, august 17. 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. thank you. >> susie: good evening, everyone. another day of jitters here on wall street. investors still haven't recovered from last week's violent volatility, and, tom, looks like they just don't feel good about stocks. >> tom: lots of nervousness, susie, and that's why investors have been yanking billions of dollars out of stock and bond mutual funds. the investment company institute tracks the numbers. $40.3 billion pulled out of those investments last week alone. stock funds alone saw $30 billion in outflows. it was the biggest single week for withdrawals since the 2008 financial crisis. >>

not a lot of good news in terms of the big picture for the u.s. economy of course the only thing that we can be certain of that this deal means is that it averts the self imposed potential crisis of a u.s. default what we do know in this legislation is it does sort of cut spending by about two point four trillion dollars over the next decade what that means in the short term for the u.s. economy is potentially a lot of willing of growth now we have to keep in mind that the unemployment rates are still astronomically high at nine point two percent and so a lot of economists are saying this is not really the time to be cutting the spending this whole battle over the debt limit is kind of a proxy war an ideological proxy war between the republicans in congress and the democrats in congress what we saw with the past election is the rise of the so-called tea party wing of the republican party and ideologically what a lot of those folks want is they want a lot of major cuts in government spending almost no government spending with the exception occasionally on

right now, they are in the 2011 economy. if we take them out and they do expire at the end of the year, that will be a big economic air pocket and will cost us a lot of jobs. we need the government to continue to pick up some of the slack from a private sector that's as down on the mat practically as it was during the recession itself. you cited the consumer spending numbers the other day. those are an economy in stall, first thing, do no harm. i'd like us to try to do something on the infrastructure front, i think that's a good way to get folks back to work and if you do it right you can make that happen relatively quickly. that's definitely a bigger political lift, though. >> the consumer spending numbers that you just mentioned, again, you're the economist here, i'm not, and what i saw there is consumer spending is down, that doesn't seem like a good thing but i didn't know how to interpret the ashen fashed slack-jawed freak out in congress. can you explain why that was so upsetting to people? >> i can explain that, i thin

let's face it the economy isn't getting any better in fact one in three economists now say they believe we're heading into a double dip of a session and for the more than sixteen percent of americans who are unemployed if you use the real figures in the us six that's not good news but is that these predictions that are keeping businesses from hiring the idea of more bad news if you listen to them by them i mean the corporations in the businesses they'll tell you that the threat the higher taxes and more government regulation are creating financial uncertainty a little odd considering taxes are lower and regulations are fewer than in recent decades in the u.s. and according to our guest tonight but argument is propaganda that needs to be laughed out of the room so joining me from our studio in new york is eve smith creator of the blog naked capitalism and author of econ how unenlightened self-interest undermine democracy and corrupted capitalism he's i want to thank you so much for joining us tonight and now with the where i got that line from where you said this is propaganda needs to b

they are going to swallow the economy in a matter of decayeds. either we deal with the problem now or later when it becomes a crisis. >> europe is a good of what we are saying. >> we don't have both branches of the government trying to go there. >> as a european myself i would appreciate the stoppage of going that way. >> eric cantor said if the economy deteriorates, the costs on government are going to create deficits bigger than we realize. the way you do that is making a tax system and cutting rates that alows for growth. >> what is the tea party's position on growth? >> i think there is a opportunity for tax reform and the tea party will be supportive if the president wants to reduction. >> and the democrats solution is grow the government. that is not working right now. the tea party's position to grow the economy. >> this president to seize the opportunity for tax reform and lower the rates would be a defeat for him ideog logically. >> we like the tea party and a positive influence on americans and the republicans. >> no, they are an importa

darren gersh reports. >> reporter: on average, the u.s. economy spends one year out of every six in recession. so the odds of a recession in a normal year are about one in six. but who thinks this is normal? >> it makes me wonder if we are not at a precipice. >> the government's inability to make decisions has not been good. >> i do think we are in for a very long and slow recovery. >> i don't think we are going to go back into a recession. i think we are going to skim it, but i don't think we are going to go back into it. >> reporter: the usual indicators of economic health-- employment, industrial production and consumer spending-- still point to slow growth. which is why most economists aren't ready to call a recession. >> we are of the view that the economy will grow slowly, but grow certainly over the next six to 12 months. >> reporter: the problem is that a slow-growing economy is more vulnerable and more likely to fall into recession. so most economists are increasing their odds of a recession to somewhere between one in four and one in thr

dollars, and the u.s. economyeat og this side of the globe. >> wolf, you know the concern here, and all the guys around here, aliveshi. >> some people think that even though it looks like a deal has been reached, it has to be voted on in the senate. we expect it will pass through. and has to be voted on in the house of representatives, the speaker said he supports it. nancy pelosi is up in the air. we will see what happens in the house of representatives. we want to access what it means for america's aaa credit rating. to you first, ali. america's aaa credit rating will remain firm? >> mixed views on that we spoke to mark from moody's economy, he said this deal is big enough to avoid a downgrade. the largest bond dealer said probably not. he said, you don't necessarily have a bond rating agency, all you have to do is read a newspaper it. is not clear if the down grade will be as important as the u.s.'s ability that it won't use it as a bargaining chip for obligations made. the second thing that is important to krr

is not working either so fraud is just totally blocked any potential growth in the u.s. economy max matt tell you because on he says as one former s.e.c. staffer describes it the agency is now filled with so many wall street hot shots from often best to get a bank that has been in infected with the goldman mindset from within and the goldman mindset max what is the golden mindset greed and suicide banking and bank until you kill yourself. that's the goldman mindset their suicide bankers the goldman sachs could be the aliens from outer space they could have spawned a banking parasite there in eighty five broad street before they moved uptown and now they're they've they've made their way into all these writing. sorry agencies there though there are the night of the living dead or i should say night of the living debt all right states ever thanks so much for bringing that guys are a board thank you max they'll go on a stage and much more coming away so stay right there. as you know song was sixteen years old when he committed these murders that's not to say that song so or should

in the u.s. economy such as the world's creditor. russia says u.n. action could help bring an end to violence in syria but once against excessive pressures that could lead to a libya style intervention experts stress the e.u. and american sanctions being enforced against a basket are only making matters worse. the voices of tens of thousands of anti-government protesters in easer all calling for the prime minister to stand are going on reported by the international media. just after ten am here in the russian capital you're watching r t thanks for being with us our top story the lower chamber of the u.s. congress has passed a last minute deal to prevent a devastating full scale default about softer months long political confrontation well the only remaining hurdle for the legislation is senate approval which is expected later audit tuesday artie's lucy cough and i'll visit washington with more . not a lot of good news in terms of the big picture for the u.s. economy of course the only thing that we can be certain of that this deal means is that it av

on our facebook site marlene posted there are two easy ways to fix the economy. one, tax the waeulgtly and stop giving former government officials pay checks for life. palsiepaul sighs an up side, dil stocks on sale. there are ways to reach us on that's "nightly business report" for wednesday, august 17. i'm tom hudson. good night, everyone. and good night to you, too, susie. >> susie: good night, tom. i'm susie gharib good night, everyone. we hope to see all of you again tomorrow night. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org 

the economy is crumbling. of syria are rising up in city after city, day after day, night after night, making claims that they are determined to forge a future of freedom and democracy. and that does not include bashar assad. >> really, though? he's killing his own people. we saw more images today. it seems that his reaction is to intensify the crackdown, not think about leaving. >> there's no question, look, if you look at it from his point of view. first all, he'd rather be where gadhafi is, and not where mubarak is, not in a cage. you can assume there won't be any military intervention and there won't be from the outside. and an resolution from the u.n. is unlikely to materialize if it is strong because of russian likely veto. he has not seen huge demonstrations in the two largest sees, some in damascus, more today, but on the scale of elsewhere, he's had some defections of the military but not on the large scale, so he really believes he can withstand that. i don't think he can, actually. i think now he's

obama's albatross, the economy? the congressional budget office reported this week that unemployment will remain high between now and the end -- question, why is the public lost faith in president obama? is strictly the economy or more than the economy, like are the voters who voted for change not seeing the change? >> democrats are still sticking with him. i think the problem is a combination of the policies he pursued in the first two years of unpopular with the blic, most importantly obama care, and then the rotten state of the economy. when we're growing at 1% with one employment rate above 9%, there's not much to be happy about. and the ratings on key issues, jobs, the budget and the economy generally are all in the mid-20s, which is a disastrous place for him to be. >> you can buy a t-shirt that says, president bush wrecked the economy, and president obama can't fix it. and i think that's where we are. and the president from the democratic perspective has played it much too safe. he proposes modest efforts in

the election so there was. some. false win or. break right up economy based on printed money printing more money i mean that's where perry is saying i want to see repairs not saying to do away with the federal reserve like ron paul saying you know if you actually really contrary is only saying this now and i believe if we can agree to disagree here because obviously we're not getting anywhere is that the only reason rick perry is saying these types of things is because maybe ron paul started leading the way because now we're in this new identical cigar a void that's where the far away are you want to say that you're probably crazy let's move on to a social issue ok so we have a clip from michele bachmann and well let's take a listen. can a gay couple with adopt children in your mind be considered a family. when it comes to marriage and family my opinion is that marriage is between a man and a woman and i think that's that's been my view what would you call it was kids would not be considered a family to you you know all of these kind of questions really

of the vice president making the case about the importance of the two economies. >> the two largest economies in the world, at the moment when the world economic circumstance is uneasy. i think we hold the key to gather -- together, for not only our own prosperity but to generate growth and jobs worldwide. host: affirmatively on twitter -- next, a telephone call from long beach, california. this is teaneck, a democrat. -- tina, a democrat. caller: i feel very sad that congress and the president can go on vacation for a month and not take care of business. and my business and what i see around me are people take a job -- it they should do a job. and they are not doing the job. i don't think they are earning their salaries, let alone their vacation. and multiple times, president obama has chosen to take his family to such an expensive place like martha's vineyard in all of their vacations and i don't see them solving their problems. i see them getting worse. host: a little bit later ron, can walsh of u.s. news -- later on, ken walsh will talk about that. this is a tribune story about the super

jobs and the economy. blican primary take care of itself. >> republicans are still casting about, they're wondering, is there anyone else out there? here's one potential answer. this is sarah palin. she has a new web ad. she's going back to iowa september 3rd. let's take a look. >> she's very down to earth. >> she's awesome. >> ladies and gentlemen, governor sarah palin. >> i think the good folks here in iowa, you could ask anybody here, and i think they would tell you it's time that the country is put back on the right track, that the economy is strengthened, jobs are created, let's do what we know! empower the people of america. >> guess that's a mama grizzly. raise your hands. who thinks that's a campaign commercial? peggy, what do you think? >> it could be brand reidentification. it could be any number of things. that could be business at work. and it also has the look, superficially, of a campaign thing. look, i think with republicans in general, we're paying so much attention to what's going on in iow

that resides outside of the economy and it's there to provide theoretically speaking price stability and in full employment that's their charter but they got sucked into the bank they got sucked into the parasite that is the banking system so now a sense earth is no longer available as a location to create a central bank policymakers and keynesians brainiacs are saying well let's just create a central bank outside of earth or depend on an invasion from outer space aliens from abroad of course so might also argue that this is a thinly veiled reference for the need to create more war because people often say well world war two got america out of a depression so having failed to stimulate the economy by let's say imposing the rule of law and by a limb and aiding parasite bankers and imposing true accountability they want to go and send u.s. servicemen and servicemen from other countries to the front line and get slaughtered so that paul krugman doesn't look like an intellectual pygmy well speaking of war an act of war has of course spent a clarity over the past week chavez orders eleven

that can weigh on the economy as a whole. o the situation before the financial crisis. fannie and freddie and other guarantees are low. some households do not qualify now that would have before. some smaller businesses are having for trouble getting credit than they ever have before. we also have a very weak housing market. if the level of home construction and other pieces of residential construction in income accounts were at the level it would be in a sustainable way for this country -- so, a level that kept pace with the growing population, the gap between where it is and what it would be on the sustainable base is itself about 2% of g.d.p., but all else equal. but all else may not be equal. that is not an estimate of the effect. there are an awful lot of factors that may be at work, and how involved they are relative to each other and how quickly the factors will wane is, of course, the important question, to which we have tried to give one general answer here, but we wish we understood that better. >> where do you get yo

we go the economy moving. we game the number one job creator in this nation and the best managed state. that's what needs to happen in this nation. i'm running on my record and i'm proud to run on my record. >> chris: mr. cain, you have a compelling personal story and a strong record as a businessman. you also have a growing list of questionable statements in this campaign. i want to ask you about those, if i may. you said communites have the right to ban muslims from building mosques, before you later apologizeed. you do not have a firm plan as to what you would do in afghanistan until you talked to the generals. at one point you didn't know about the pal right of return. -- about the palestinian right of return. how do you reassure people that you know enough about the -- >> you want me to answer all of that. i know more about the palestinian right of return now than i've -- than i did then. saying communites have a right to ban mosques. that's not exactly what i said. unfortunately, the people who helped you

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

>> greta: is the debt ceiling law a band-aid on the economy? debt ceiling cuts more $2 trillion on our debt over the next ten years but with a what was when 2013 comes? >> explain this to me. in terms of the debt ceiling deal, change in the first year, in the second year and when are we going to see the last $900 billion in the first group of cuts? >> as we always do when we budget it's spread out over a ten-year period of time. $900 billion is working ten years. if that is carried out, that is not a bad deal. so often we see congress change things along the way. so you are only sure of what is going to be for the next couple of years. for itself year $21 billion throws be spent next year than being spent this year. remember, that is just 15% of the budget we call discretion ear. 44% that is entitlements, it doesn't affect that at all. that is going to go up 6-7%. so if you look at the entire expenditure it's going to go up next year regardless. >> greta: the thing that caught my attention, it's a ten-year plan. to the extent anything is certai

>> it's jobs, it's the economy. estion on election day, whether people feel like thing are getting better or whether people feel like -- same thing we're getting worse. it's going to be a very hard day that day. >> i think they look at the back story and the future is the future. you have kids, wives, children to raise. a lot of people got retirement living to get through. you need certain things. who's your best bet for president? enlightened self-interest. vote for, let say, romney. the guy from texas. rick perry? >> elections are about two things. referendum on the future and on the incumbent. >> talk about the future. >> you don't get to do that. >> why is your guy better than obama? >> when running for re-election it's a referendum on the track record whoever's running. >> pretend i'm asking the question. what does your crowd offer for the future to solve our economic problem? what does your crowd offer for the future? >> less government spending. more emphasis on private sector growth, more emphasis through the