how beneficial for the u.s. economyon capitol hill that the lawmakers and administration deal with the fiscal cliff issues perhaps temporarily, kick the can down the road to next year and end or limit the uncertainty in the short term and beneficial given the state of the economy at the present moment? >> well, that's a difficult problem. i'm not entirely sure. on the one hand, a little clarity would probably be helpful for the reasons i described because people are uncertain of what will happen. on the other hand, investors i know would like to see congress take actions that put us on a long-term, sustainable fiscal path and kicking the can down the road without any other indication of what might be done and what kinds of policies might be enacted could be a negative for sentiment because it might induce people to worry more about the seriousness of congress addressing the fiscal issues. >> financial times. mr. chairman, one critique of fed's accommodative actions of the past few years is that's helped those with the l

and hurt the economy? >> well, i think it's still bit early, but as which move forward in the year, we do anticipate that the uncertainty associated with the so-called fiscal cliff will have some economic effects. we heard anecdotes today in the mein firms that might be government contractors re not sure about whether the contractwould stl be in place come january and making ployment decisions based than. more generally financial markets don't like uncertainty and particularly uncertainty of this magnitude and ilth i so that unrtainty is there at i ink mtport imtly is that ressnget the poly ght. i've talked about three elements for fiscal policy. the first is to do no harm as far as the recovery is concerned. to try to avoid a fiscal cliff that would significantly damage the recovery. but second to maintain the chie t a sustainable fiscal path over the longer rm anthird, touseiscal policy effectively to have a better tax code, to make good use of government spending programs and make them efficient and fee

is it a game change for the economy. just 69,000 jobs created sending the unemployment rate to 8.2%. and stocks sliding. is this another spring slump or worse, the sign of a slow down. >> the economy is growing again but not as fast as we want it to grow. >> mitt romney who this week clinched the nominee sees an opening. >> the president always has someone to blame. the truth is the job of the president is to get america back to work. >> sure it is about the economy but president obama wants to make it about governor romney's record in massachusetts. this week current governor deval patrick and governor of ohio, john kasich. patrick and kasich square off. and then analysis from our round table on the state of the campaign. with us kevin madden and from the senator for america progress neera tanden. finally, would this outburst from an illinois legislator more than just a youtube moment. >> you should be ashamed of yourself. i'm sick of it. >> beyond the screaming, the problem with our politics and with washington in this

when is the economy taking off? took off under the kennedy tax cuts and reagan tax cuts and it took off under the tax cuts we're talking about now, the bush tax cuts. is the level point, yeah, clinton raised taxes, sure he did, but the economy took off under clinton when he cut under the capital gains laws. and the evidence is in and makes so much sense to me, it would be ludicrous to let the tax cuts expire. >> brenda: jonas, the white house press secretary did make clear this week that the president will not extend the tax cuts to the wealthiest americans. is that going to hurt the economy? is that going to hurt job creation? >> there's no part of the economy you can tax and not cause some sort of drag on job creation or the economy. whether it's on the upper brackets or the lower brackets. you can tax workers and all of a sudden want higher wages and that's going to hurt job creators as well. and one thing worse than raising taxes in an economy. it's when the government collapses and that's really what's happened

for downturns in the economy is kind of like blaming chemotherapy for causing cancer you know this is there any austerity cuts are measures that are going to address the severe economic problems we have that frankly come from the president's lack of leadership on economic matters people are used to you're saying are you sorry sir are you are you saying that in those states that are doing us are you denying these statistics forms like it wisconsin that it has always cause it was what number two was a worst in the nation in terms of job creation. actually the austerity measures over the long run is not beneficial for the state i mean with these austerity measures you're cutting back public sector jobs which means you're cutting back employing firefighters and police officers and teachers and by doing that that's a detriment to the society as a whole i mean cutting benefits that teachers are getting back if you're going to mean they're cutting back the opportunity to increase our at the education of our future workforce i mean that's those are the long term effects that these states are

what's really happening to the global economy for a no holds barred look at the global financial headlines to name two is a report on. exactly how this is all tea top stories now the u.s. the syrian regime and the rebels to lay down arms to prevent the country from sliding into a full scale civil war this comes as you and observers are visiting the site of the latest massacre near the city of hama. a big day for european football is a year. for play has been dealt a blow with boy called soviet human rights abuses and claims of racism most recently from the top national team. and eurozone on the line as experts predict spain could soon as the. powerhouses try to keep the single currency float. down is banking on the pause button. and that's it for me and the news team for the moment we'll be back with more for you in the meantime couple account is next from washington. good afternoon and welcome to capital account i'm lauren lyster here in washington d.c. these are your headlines for thursday june seventh two thousand and twelve best breaky testified on capitol hill today of course everyone

how do we grow the economy? send our money to washington and try to grow it top down or take money out of slow government and put it in the american people's pockets and invest and grow the economy naturally and organicly. there is a new republican agenda. >> what is the bold economic idea that you would like president obama to run on? you are in a big city. you see the impact of the economy every day. what is the big idea he ought to be running on? >> making sure he gets the congress to pass the infrastructure investments we have been talking about for more than two years that republicans and democrats have traditionally agreed upon and get the country moving again. we know that infrastructure generates jobs. and facts have to matter in this election. alex referenced mitt romney's 4.7 unemployment. the president had to deal with the worst economy in 80 years. he had much tougher challenges than mitt romney ever had. and the fact of the matter is 40 months in to barack obama's presidency jobs were created in mas

the economy that we're dealing with today is the obama economy. ng with -- >> what was mitch mcconnell? the republican senate leader. what hus wis numbhis number one legislative priority when obama got elected? to get obama defeated. >> which policy in the first three years? you know which policy in the first three years of this administration has not been accomplished? >> all i know -- >> tax increases. >> they've votes down the line against everything he's try toed do. the motive, destroy the guy politically. >> they didn't stop anything except tack increases. >> except all of the jobs programs on the table now. >> steve's right. they've got a lot on the table and these guys say no to everything, everything. >> they would do nothing for the economy today. >> that's your philosophy. >> the economy today -- in three years -- chris, which policy -- >> they do not wait for business to do the job has been rejected by the american people if they accept la day fair that's their mistake. >> which policy did the republicans block? >> every jobs bill on th

and i believe that hurt the u.s. economy. it may not be a mainstream position, but it doesn't necessarily mean its a wrong position. >> reporter: the doves focus on slack in the economy-- high unemployment and the looming risks from europe. at the fed meeting that began today, the doves will argue the facts do not favor the hawks. >> i think the numbers are moving against them. the job market is growing, but at a much slower rate. the rest of the economy looks to be on the soft side. obviously, the risks to the economy have risen, given what is going on in europe and the approaching fiscal cliff that we have here, and inflation is low and looks like it is going to move lower. >> reporter: bernanke is considered a dove, and he is likely to have a few extra votes at this meeting from two new board members. jerome powell and jeremy stein were recently confirmed by the senate and are now at the big table. >> they are serious, sensible, main-stream economists, and so are likely to form the heart of a bernanke coalition. >> reporter

he wanted to talk about the economy. e will take questions from reporters in the white house briefing room. that gets rolling in a few minutes. he is said to be making this statement in order to urge immediate action on a plan to jump start job growth, which the recent employment numbers show us we are very much in need of, and then he will address his terrance concerns as well over the european economic crisis that many believe is threatening to drag down our economy. some say that the white house is pushing the blame off of their own policies onto europe at this hour. brand-new hour of "america's newsroom." good to have you on this pretty busy friday morning. i'll martha maccallum. gregg: i'm gregg jarrett. the president will address his remarks directly to congress and then address a few questions from reporters. martha: here now for a preview of what we may hear from the president this morning, anchor of sunday, chris wall sass. good t wallace the president has decided he wants to speak, is that surprising. >> reporte

we can impact the economy. we can give states the aid e they can to protect the teachers jobs, put construction workers back to work by rebuilding our bridges. >> how about the keystone pipeline? you don't need congress for that. >> we have extended the keystone pipeline at different points in the country. it's currently under review. that's fraction of the jobs that we're talking about here. >> if private sector continued to expand instead of falling by 600,000 as it has, right there, we would have something $1.4 million working in this country. the track record of government spending, reagan is keyasian. if i have a political critique, this administration has been very reluctant to make that case. very hesitant about saying we're trying to do the right thing but those guys won't let us. >> the danger of that argument you were making part of it right now the more you blame congress nothing gets done. the weaker you look. >> they have no alternatives. what do i know about political strategy? but, i think this is

. >> reporter: yes, the economy added jobs in may, but at a stunningly low rate. and most of the new jobs that were added came in just two industries. health care was a bright spot, adding 33,000 people to its payrolls. and so was transportation, after losing jobs in april, the industry added more than 35,000 jobs in may. but construction took a big hit, losing 28,000 jobs. the public sector also subtracted from its payrolls and manufacturing job growth slowed down. it's the third month in a row the employment numbers have been disappointing. economists blamed a warm winter with unseasonably strong hiring for weakness this spring. >> the underlying trend that may's report suggests is that we're adding around 100,000 jobs a month. that's not that great. that's the kind of rate we need just to hold steady. >> reporter: one thing that didn't hold steady-- the unemployment rate. for the first time since last summer, it ticked up to 8.2%, as more people started looking for work, a sign of optimism in the workforce. >> i think the unemployment rate will come down, more p

the energy economy. the innovation and energy economy are doing just fine. >> let me kind of give the flip side. david made, i know this is a shock. he made one good point and that was about the gas prices. by the way i'm waiting for obama to bring in the speculators and ask them. >> where are they? >> stick to your point. >> we should -- >> stick to the point. >> the point is everyone thought gas prices are going to go to $5. now, they might go to $. the same rationale that everyone things nothing good can come of greece and spain and yet all it takes is one good thing to turn arounded and people to say oh, my gosh it is not as bad as we thought it going to be and all of a sudden things get rolling and momentum going and all of a sudden we see the dow moving back up again. >> jonas, you think we are going to flat line but there are two issues that make people feel richer and that a it the stock market and the home market. neither one of those seems to be picking up so where does that leave us? >> the sto

do you agree that qe2 had little effect on the economy? you think the president's policies have had any effect on the effectiveness of monetary policy? do you think is appropriate for a presidential tended to account on monetary policy -- comment on monetary policy? >> both asset purchase programs have significant effects on asset prices and financial conditions. although there were certain problems with transmission, for example, the housing market has not been as responsive, we think they were both effective in providing support for the economy and, in particular, so- called qe2. it ended what looks to be an incipient deflation problem when we first introduced it. i think those have been effective. as i said, we think the extension programs still can provide additional support. with respect to the rest of your questions, i want to reiterate to the federal reserve is non- partisan. we're very serious about taking our decisions on purely economic grounds that political considerations. we will continue to do that. >> jim with "the l.a. times

budget is a powerful force in the united states economy. its sheer size means entire industry, whether heavily regulated or not operate in constant awareness of what you all do here. when you combine this budgetary power with the separate powers of taxation and regulation, the federal government wields significant influence over the economy both directly and indirectly. it's not an overstatement to say that right now. the united states economy operates significantly at the direction and behest of of the united states government, not the other way around. in many cases the government's growing size and influence was made possible by good intentions and hopeful policy ideas. behind every spending program, tax incentive and regulation, there's an idea. it might in fact be a good idea, but those good ideas and the not so good ones add up and the cost of everything you do here, every line item, every rule, every carve out, phase out, ear mark drains activity investment and creative effort out of the private sector of the economy. that's why my be

which is better for the economy? >> we have not studied those two particular. >> those are the poster chirp, 10 let's talk about it because they are the poster children. >> the -- in an economy where the con straint on output employment is a weak demand for services, an economy we've been living through for the past four and a half years, additional demand from the private sector or government raises jut -- output and employment. >> what causes increased demand? what is it? i mean, can -- under that thinking that public sector spending can raise demand, i mean, you would have had a $4 trillion stimulus, but, of course, the impact on the economy would have been tragic because of impact on federal deficits and debts so isn't it better to rely on private sector spending for economic activity? wouldn't you want to do things that encourage private sector investment and jobs in our economy and paychecks than public sector spending? >> well, congressman, we've been clear that the extra debt accumulated through the recovery a

i call it the plow horse economy. it's just slowly growing. >> i'm not thrilled to hear a comparison with europe. i will give you the last word. i believe a steady 2%, 1.9, 1.8, whatever. mike, think that's recession their. some people call them growth recessions. >> that's recession their territory as far as i'm concern spd. we'll leave it there. brian westbury and mike, i like the plow horse economy. i have to think about that one. >>> let's do some stock market work. we bring in jeff clinetop, lpr financial. look, as though the u.s. wor ohries weren't enough, i myself am so worried about europe i don't see a way out. you could have a greece disaster on sunday. you could have a credit tightening in the banking system. more reports of runs on greek banks. show me a way out of it. i'm worried. >> there isn't an easy way out. boy, they aren't going to decide with a greek election next weekend. they may not decide it for a year. heck, we may not be resolved with the issue over the end of the decade. here's the key for mo

actually, without joking, one of the major structural stories of the u.s. economy the last three, four years has been the amazing discovery that prices work. if you raise the price of oil over $100 a barrel, amazingly we'll find more of the stuff. natural gas, of course, it's been said before, but it is true that it's a game changer. amazing progress has been made on the energy front. one of the reasons i worry less about oil price spikes less than we used to is because we don't import as much as we used to. a few years aerks the ceo of bp said, i think, he will never sell as much gasoline in america as he did in the year 2006. i mean, there is a secular decline in our consumption of fossil fuels going on. that's an unmitigated positive. >> i also think it's possible to overdo the pessimism and the negativism and the america in decline argument. the numbers are not negative right now. the economy is growing. jobs are being created. 4 million over the last 27 months. you know, it is not true to say the private sector is doing fine. it's not doing fine. but it's not

let me ask you about the economy. i am wondering how the president continues to make the argument the voters that the economy is headed in the right direction when john numbers -- job numbers -- [unintelligible] >> i appreciate the question, and while freddie's job numbers are below expectations and far from good enough, they do represent the 27th straight month of private-sector job creation since the policies began taking a fact. he has argued that we need to do more, and we can do more right now, not wait until november or next january, to further encourage the economy and have a treat more jobs. the president made clear last fall that the recovery was not robust enough when he introduced his american jobs act, and outside economists, not white house economists, outside economists judge that plan, if implemented, to be one that will trade over a million jobs. republicans in congress and the up supporting some of the elements of the act, others refused to support because they made the choice it was more important to

the u.s. economy is not collapsing here. what we've seen is a cumulative overreaction to each data point. we're at one of the most ex be treem markets in terms of equities that we've seen in the last few years. this is not a great environment but i'm not going to say it's close to the worst in 50 years. not because of any one day movement but because of a cumulative move. i think people need to look at relative pricing here. stocks are cheap and a long-term investor needs to think about that. >> how about the fed? the fed is going to have a role here. you watch the treasuries suck up all of the remain agency issues. you'll have people running to assets they never dreamed about a couple months ago, like corporates and high yield and then you start to see action over there. >> real quick, final word? >> i wouldn't get carried away with that. the unusually warm weather meant there were less seasonal layoffs and that you didn't get the bounce there. retail sales are solid. gasoline prices are falling. housing is doing better. in

his biggest failure could be our best success for the economy. let the job creation begin when obamacare is knocked out by the supremes. i'm larry kudlow. "the kudlow report" is moments away. >> we don't trade on rumors. we invest in facts. and the facts from some of the ceos i talked to are saying, jim, i'm giving up. i can't find why my stock should go down because of spain, italy or greece. there's always a bull market somewhere. i promise to find it for you. i'm jim cramer. see you tomorrow! hey, larry, what do you have for us tonight? >> jimmy, facts are hard to come by. people should do nothing until this european craziness begins to clear up next week. do nothing. good evening, everybody. i'm larry kudlow. this is "the kudlow report." our top story tonight, battleground ohio. president obama and mitt romney hold duelling speeches on the economy, jobless claims are rising to a worrisome number. he doesn't listen to the good advice of bill clinton on advising tax cuts or clinton advisers who want a new message. it's the same old same old. the

the basic logic of lowering rates stimulates the economy is really the same. now, you might ask a question from the fed is going out and buying $2 trillion of securities. how do we pay for that? and the answer is that we paid for those securities by crediting the bank account of the people who sold them to us and those accounts at the bank's showed up as reserves at the banks would hold with the feds. sudafed is the bang the bank for the banks. tanks can hold deposit accounts and those are called reserve accounts. and so, to as the purchases of securities have occurred, the way we paid for them is basically by increasing the amount of reserves that they had in their accounts with the fad. so you can see this here. this is the liability side of the fed's balance sheet. of course that is the liabilities including capital has to be equal. so the liability side had also arrived near $3 trillion as you can see. now, take a look first. if you take a look, take a look at the light blue line. the light blue line is currency. federal reserve notes of currency. sometime

the federal reserve announces a new "twist" to boost the slowing u.s. economy. >> tom: i'm tom hudson. central bankers will continue buying bonds hoping to lower interest rates even more. former fed governor randy krozner joins us. >> susie: and the "tide" turns for procter and gamble, the household products maker blames europe for slower growing profits. >> tom: that and more tonight on "n.b.r.!" >> tom: the federal reserve said today it's extending its latest stimulus program to prop up the u.s. economy. but investors wanted to see more aggressive action. after a two day meeting, here's what the central bank decided: it renewed "operation twist", this is a bond-buying program with the goal of bringing down long-term interest rates, and mortgage rates. the program is extended to the end of 2012, it was set to end on june 30. that wasn't good enough for wall street: the major averages fell immediately after the news, and then see-sawed the rest of the day. by the close the dow lost about 13 points, the nasdaq rose a fraction, and the s&p slipped two points. spe

find out what's really happening to the global economy. with mikes cause or for a no holds barred look at the global financial headlines tune in to kaiser report on r.t. . download the official t. application to go on the phone on pod touch from the i choose ops to. life on the go. video on demand parties and line broadcasts and says feeds now in the palm of your. question on the dot com. welcome back we're talking about the fed's failed attempts to stimulate the economy despite calls for it that we heard on the hill today with ben bernanke there so before we go back to our guest i want to bring up a chart that shows what he was talking about before the break this shows and to which includes bass money so base money reflects the fed's attempts to broaden the money supply to get that money to the real economy but what you can see is that as the fed has contributed to that increase in base money what you see is a contraction in m two so let's bring michael back in and ask him when and how the public is going to feel this if they already are s

the u.s. economy, the federal reserve may announce another round of bond purchases hoping to stimulate borrowing. >> i think june. if not june, july. i think the earlier, the better, from the fed, reduce some of the uncertainty in the market. we're seeing the turmoil now in the financial markets and over the summer. >> reporter: gallagher, and others would also like more economic stimulus from washington, but that seems unlikely anytime soon. >> unfortunately, washington is just not in a proactive mode right now. the elections are on us in november. so it's kind of frozen what's taking place in washington. >> reporter: trouble in europe will continue to weigh on the us economy for the second straight summer. on june 17th, greece will hold parliamentary elections, and you can bet that whatever the outcome, there will be fallout in global markets. erika miller, "n.b.r.," new york. >> tom: speaking of greece, standard and poor's today said there's a one-in-three chance of greece leaving the euro-zone aft

we can impact the economy. just as paul was saying, this policy of austerity because of the refusal of republicans to about can change. we can give states the aid they can to protect the teachers jobs, we can put construction workers back to work by rebuilding our roads and bridges. >> how about the keystone pipeline? you don't need congress for that. >> that's fraction of the jobs that we're talking about here. we have extended the keystone pipeline at different points in the country. it's currently under review. but that's fraction of the jobs that we're talking about here. we're talking about a 1 million jobs. >> on the reagan thing, if private sector continued to expand during reagan's first term, instead of falling by 600,000 as it has, right there, we would have something 1.4 million people working in this country. the track record of government spending, reagan is keysian. and obama has been the anti -- he's been doing what republicans say is the right answer. if i have a political critique, this administ

but i understand the u.s. economy. the u.s. economy is driven about it confidence of its citizens. the customer in this case is the american consumer and is always right. they think things are slowing down, it will welcome self-fulfilling because they'll stop spending. businesses stop hiring. and the economy could grind to a halt. let me tell what you i'm talking about. here's the good news. we had 20 straight months of job growth in the united states. the pace of that growth is slowing. the last five months, there have been fewer jobs created each month than were created than in the month before. but jobs are being created, not lost. so that should make people feel better, not worse. let's talk about your homes. a lot of your equity is there. the home prices in the united states are probably at or near their bottom. the so-called shadow inventory of homes is lower. foreclosures are up. but those are a new wave of foreclosures from the signing scald, robo. we're probably near the end of this thing. fewer homes, less inventory makes it a good time to buy. if you're buying a home, at

, if the -- if the economy were stronger. i think we said about a third of the current deficit would go away if the economy were somehow immediately put back close to full employment. >> that's one of the frustrations, because there is absolutely no dialogue from my friends on the other side of the aisle as job creation is part of debt reduction and deficit reduction. we could really give a boost to this improving economy if we could do some things on jobs. i mean, here are the positive sides. we've had 27 straight months of private sector job growth. manufacturing employment continues to trend upwards. consumer confidence is up. the median home price, the sales figures are up. corporate profits are up. so things are trending in the right direction, and here the congress could be really helpful in job creation and in deficit reduction if we could come together to do some things on jobs. but unfortunately, my friends on the other side of the aisle blocked the jobs plan put forth last year that said, you know, let's rebuild scho

but there are a couple of things that are happening that could help the economy. if we're thinking about it between now and november in particular, one is that oil prices, while historically high, are coming down. the faster gas prices fall, the more spending we'll see. the other thing that is the housing market, which has been the biggest drag on the recovery since the recession ended, is slowly but surely bottoming out, and in a lot of very key areas is coming back. phoenix, orlando, miami, denver. these are housing markets that are recovering. when the housing markets recovers, home markets go up. people can start borrowing on their homes, they can start businesses, invest hiring. this could be a cycle we could see. gwen: let's take apart the jobless numbers. there's 15 million people all together either unemployed, long-term unemployed, stopped looking for work. 15 million people on this hamster wheel. who are they? >> well, they're a wide swath of americans and it sort of breaks down in some very bad ways, depending on where you are in the economy. if you don'

and what if you don't trust policymaking academics with track records as bad as the feds to run the economy anyway for example listen to bernanke he did a talking about the bank stress tests to also show that even to extremely adverse hypothetical economic scenario most of those firms would remain able to provide credit to u.s. households and businesses. really based on what the assumptions for an adverse scenario that the fed came up with with the wisdom out of their own academic papers combined with what banks are theoretically supposed to do exactly so what if you just want to work save invest and live without scanning frantically through policy statements press releases and federal reserve minutes every time you go to open your wallet well our next guest has some solutions of bizarre own that maybe will be a little more concise than those fed documents he's mike maloney founder of gold silver dot com and author of guide to investing and gold and silver it's part of the rich dad poor dad series and just the person to talk about all of this so first thanks so much for being on the show th

which would have had greater impact on the economy? >> over the past few years extra spending wherever it came from would have led to more jobs and there's no reason to think the extra spending in the sector -- the question is what sorts of goods and services have been purchased and if the public sector was investing then that would be good and if the private sector was investing that would be good and a long run. >> that was fascinating. >> we had that hearing on multiplier of facts and keynesian multipliers and go back to that hearing. we had the cbo position, mr. taylor from stanford, that hearing gives and illustration on this point. >> thank you for your testimony. as the cost of health care, a significant factor in increased spending in your testimony certainly reinforces that, traditional approaches cutting people from care, in my state of oregon we come together, and the uninsured and medicaid dollars and slightly refreshing to see business, educators, all come together and health care transformation with goal of improving care