by the mid-1980s we were doubting our ability to manage the economy. ilization policy-- are we still in control? we'll investigate that with economic analyst richard gill's help on this edition of economics usa. i'm david schoumacher. for many years after the great depression national economic policy's basic goal was minimizing unemployment. but the winter of 1982 saw 12 million unemployed. many complained they were victims of a needlessly cruel government policy. public enemy number one was inflation, and jobless workers were the war casualties. the battle cast new doubt on the government's ability to manage the economy or the wisdom of even trying. why was stopping inflation so hard? the time has come for decisive action to break the vicious circle of spiraling prices and costs. inflation is domestic enemy number one. present high inflation threatens the economic security of our nation. from richard nixon through jimmy carter president after president set out to fight inflation. when that threatened to increase unemployment president after president r

i think it would have probably been rather harmful to the economy. ve sometimes extravagantly said we would have lost the war. if we had tried to do it by pay-as-you-go, we would have had to impose very much more of a dictatorship on the community than we did have to. schoumacher: the end of the war found the country facing a huge national debt. yet somehow, the $260 billion we owed in 1945 did not seem as terrifying as the $40 billion we'd owed in 1939. the nation was prosperous. and as the economy grew, tax revenues increased and governnt expenses declined. and years later, as all those billions of dollars of world war ii bonds came due the government simply borrowed new money to pay the old obligation. the nation had gone deeply into debt to pay for the war. that debt never really went away. it just seemed to shrink in size compared to the total gnp. we asked economic analyst richard gill if this meant that we had passed on the cost of the war to future generations? the simple answer is no. the basic costs of world war ii were borne by the generati

the dangers of a profound effect on the economy, equally real. rous commentators observed that the parallels to 1929 were ominous. even the upturn in the market in late 1987 had had its parallel in the 1920s, only to be followed by a further collapse and the greatest depression of all times. but it didn't happen. and one reason was that theories of long-run steadiness gave way immediately to an appreciation of the crisis. did we need more money, more liquidity? we would have it, the fed told us, quickly and unequivocally. forget general rules -- handle the crisis first. which leaves us where? perhaps better off in economic fact than in economic theory. cruise control is great in automobiles on the open highway, but when the traffic gets hot and heavy, there is, alas, no substitute for human judgment. hopefully, good judgment. monetary policy was an effective factor in holding down inflation in the booming '90s. the federal reserve was also successful in limiting the damage from various crises to hit the u.s. economy, including the financial crisis

welcome to the kaiser report i'm max kaiser good news at last for the british economy yes apparently there is a to all that financial fraud at least according to the wall street journal as you know max indeed well you know the payment protection insurance scandal from the past few years where they the banks were selling payment protection insurance so your mortgage would be paid if you lost your job or your house burned down you got sick or whatever they would pay your mortgage for you well how a banking scandals bolstering britain's economy well the compensation for misselling those payments because apparently none they were like all insurance products they didn't pay out so they had to pay billions of pounds to the consumers who bought this thing and apparently the office for budget responsibility the government's official forecasts are said that the compensation was so big it would provide quote some short term support to household consumption growth one economist alan clark a scotiabank says the compensation payments have been more successful as stimulating the u.k. economy than q

welcome to the kaiser report i'm max ties are good news for the british economy yes apparently there is a all that financial for at least according to the wall street journal today as you know max indeed well you know the payment protection insurance scandal from the past few years where they the banks were selling payment protection insurance so your mortgage would be paid if you lost your job or your house burned down you got sick or whatever they would pay your mortgage for you well how a banking scandals bolstering britain's economy well the compensation for misselling those payments because apparently none of they were like all insurance products they didn't pay out so they had to pay billions of pounds to the consumers who bought this thing and apparently the office for budget responsibility the government official forecasts are said that the compensation was so big it would provide quote some short term support to household consumption growth one economist alan clark a scotiabank says the compensation payments have been more successful as stimulating the u.k. economy than quant

amount of money stimulating the economy more so than the seven hundred fifty billion pounds so far of quantitative easing seven hundred fifty billion pounds of quantitative easing eleven billion pounds of compensation from the banks to the people now. that shows you the what has been said from the very beginning if you just put the hands the money into the hands of the people the normal people who actually are desperate and have or have a shortage of cash rather than giving seven hundred fifty billion pounds to the bankers who have trillions sitting on their balance sheets that they don't feel like lending out to those schmucks out the street that they're going to just miss sell something else to be clear when they say that they're moving money off their balance sheet to pay the victims of their fraud that money is immediately replaced by the bank of england that they're not paying for their other words they've expanded their credit line to the bank of england whose balance sheet went from eight hundred billion pounds to over now close to four trillion pounds worth of debt and of cour

but that's never going to happen because the bank of england in the u.k. economy is the most leveraged in the world their bank of england balance sheets gone up eight hundred percent during the time of the federal reserve balance sheet increased by forty percent in terms of toxic debt that toxic debt on the bank of england's balance sheet is not going to be able to be worked its way back into the economy they're going to increase quantitative easing in the u.k. so more companies been caught out and out right lie which i think not that anyone will report on or notice but he's lying through his teeth now you talked about irritable bowel syndrome in the opening bit and i want to say that this is also a sign that you see the same sort of flatulence coming out of central bank and because here's an interesting tweet to us from trolling for good he said his mind quantitative easing underpins wall street such that any signs of a weak economy push the market higher the markets get bloated as soon as there's any bad signs any the refined bread the process foods are put into

again on the economy, the committee sees the downside risk to the outlook for the economy and labor market as having diminished on net since last fallp. gone from this is the language from the september 19th statement that raised concerns about financial market conditioning tightening. the standard for when key short-term interest rates might go forward remains the same. they stay at 0 to a quarter percent. at least as long as the unemployment rate is 6.5% and inflation two years ahead is projected to be no more than a half a percentage point around that 2% target. and when the fomc decides to look forward, and remain policy accommodation it will take a balanced approach consistent with the longer run goals of maximum employment and inflation rate of 2%. voting again easter george the only dissenting vote. i'm hampton pearsoning back to you. >> take a look at what the markets are up to here. i've been watching the dow actually paired its losses and almost became positive. the dow is now down by 36 points. so it's a little lower than where it was going into the decision. let's get the react

>> you can do that but that will drag the economy down. m talking about changing the way we escalate inflation going forward, and reducing the amount of future liabilities by making people in their 40s not retire until they are 70. the reality is you live longer, and that's port of the problem. if you live longer the amount of time you are going to be retiring and how much should be on social security -- social security was never went to be the be all and end all of rerequirement, it was meant to be a subsidy. >> but it is the entire reenvironment for one-third of all seniors. it's 90% of their income. >> you do it for people who are young enough in the pipeline so they know they have to adjust their spending and current savings so they can retire at the right point given what social security will provide them. we can no longer provide what we're providing for people on an ongoing basis. because the population of people paying for the baby boom generation is so small that the amount of tax you'll have to levy is on them is extraordinarily u

, the economy plunged. nobody wabnts to go there again. the summer western conducting these round tables around the country, we got an earful from entrepreneurs about washington. >> i want to talk about that earful. you hit the road, talked to entrepreneurs, job creators. what struck you most? >> i think both of us feel like the thing that struck us the most was the dynamism and passion these people have for what they do and succeeded no matter what obstacle is in their way. it's important we address them and try to do what we can as policymakers or private sector to address those and give them better circumstances so they can succeed. >> what are entrepreneurs, small business owners saying they need from washington that they aren't getting? >> as you know, we conducted round tables in 12 cities around the united states. we wanted to hit the geographic expanse of the country, the industrial diverse thety f the country. certain cities and regions tend to identify with different industries. we expected we woul

real boon to the economy. potential manipulation of three trillion pound currency markets swiss regulators are investing in gating a number of financial firms over the potential manipulation of currency markets where three trillion pounds changes hands every day so this is multiple banks around the world five trillion dollars in manipulation and price rigging and price fixing but if look at the context the global daily forex market is two and a half to three times greater than the entire g.d.p. of britain so the entire g.d.p. of britain turns over in the forex market two and a half to three times every single day or so and i said last week that the global economy is going giant hedge fund this is a good example of it if they're manipulating forex which includes all the transactions for the british pound and all the other forex transactions and all economies and all their currencies around the world and they have hundreds of trillions of dollars of the leverage to do so and their cost of funds there is zero and

you can't fool the economy indefinitely. if the market rate should be 5% or 6%, then it should be 5% or 6%. >> you were elected into office 40 years ago. things were different back then. if congress was doing its job right now we wouldn't need the fed to be this involved, would we? >> no, we wouldn't, but it's not a good excuse for the fed to be that involved. right now our deficit structurally is so big. this year is deceptive because we have the one-time revenue, and the phoney-baloney money from fedy mac and fannie mae. we're in the fifth year of a recovery. by the time you get into the fifth year of a recovery the cycle is over, and you're supposed to be in balance or maybe even surplussed to make up for all the didn't you had. >> i should tell our viewers don't be squared that it's 750 pages but the sub title of your book is corruption of america. thank you-for-being with us. >> thank you. >> what should you be doing in the last couple of months of this year. it's a particularly tough call when the economy is going slowl

i don't think we will see the robust economy we hope for unless we take the wet blanket off the economy added that is this amazing level of debt and deficit that we have not had before. it is unprecedented able say as percentage of gdp we had one of the time, during world war ii, but, yes, we did not have the long-term liabilities we now have. it is unprecedented. talk to people back home thinking about investing, creating something, an innovator, job creator. this is a factor. so, i hope we will do something on the growth aside not just dealing with mandatory spending -- which i think is very much related to what jim clyburn showed us in the chart -- but also tax reform. because all of us, i think, agree -- i heard my colleague from oregon talking -- the current system is antiquated. ron wyden said it is 100 years old and it looks like it. it is obvious to me it is urgent. it is urgent and the corporate side, by the way, because we are losing people, capital, investment, and headquarters overseas. right now people are making the decisions because of our tax code which is not competitiv

and could very seriously damage not only the u.s. economy, but also the entire global economy. you know, people around the world are confused. they're bemutzed, but they're certainly not amused by what is happening in this country because it will affect the global economy if it were to materialize. but i personally have huge trust in policy makers and i hope very strongly they will find a way to resolve this issue. now this is mission critical this be resolved as soon as possible. mission critical. japan, also needs a credible plan to bring down its debt. does any of you know how much is the japanese debt relative to gdp? roughly? what did you say? huh? >>. [ participant off-mic ] >> 250%. pretty good, pretty close. that's roughly $90,000 per capita. each japanese baby was born, not too many of them, unfortunately, that's another issue, is born with a debt burden of $90,000. the initial consumption tax increase i was referring to earlier that has been announced by prime minister abe is welcome. it's one step. it has to go further and enough fiscal measures anchored in the medium

it will stay there so long as the economy remains in the doldrums. soon as the economy starts picking up, then you get that -- those excess reserves relent into the marketplace and the usual money multipliers begin to take hold. >> that's your inflation. that's your inflation risk anyway. >> you don't get your inflation until you get money supply up and turnover of that money supply. >> you have told some interviewers about your book, though, that you're rather optimistic on the stock market. >> well, it's optimistic because i've always found that the best way to look at the stock market is not what's going up, what are the probabilities of it going down. and if your probabilities are not very large, then you've got a base to work on. the market's come up a good deal now. it's a little bit tricky. but equity premiums are close to their highest level in 50 years. and equity premiums, as you know, are essentially the measure which says what is the rate of return required on equities? and that number is very high. that means that the down side risk of t

they said the economy was moderately recovering. it was the first time in six years that they used the term recovery. it's an upward revision from their previous assessment that said the economy was moderately picking up. the leaders said personal spending increased particularly on items such as air conditioners and refrigerators. production of electronic components such as iron and steel rose as auto exports remain steady. the leaders also said job offers rose in the auto sector as well as the service and construction industries. the officials say they expect the economy to further recover but that they need to continue monitoring crude oil prices and downside risks in other economies. >>> japan tobacco is the world's third largest cigarette producer, but its officials are planning to scale down domestic production due to falling sales. jt officials say they plan to country 1600 jobs or 20% of their work force by march of 2015. they'll also close four out of nine factories in japan. the officials are having a hard time selling tobac

a day of historical irony as the policy makers convene to discuss the economy and what to do without t. the dow with a last-hour sprint was 111 points and nasdaq gained 12 and s&p add add 10. >>> investors bought up stocks. retail sales fell in september down 1/10th of a percent, the first drop in six months. the decline because of a big drop in auto sales. home prices cooled off. the s&p index that tracks shows home prizes rose 1.23% in august. theç slowest gain since march. the data points down but stocks continue to go up. in normal times, this probably wouldn't happen, but these are not normal times. on wall street stocks keep going up a. slow grind upward, a steady dream beat of new highs. it is not the s&p 500 it might be the russell 2,000 or dow transport and hundreds of companies watching the stock prices hit new 5 2-week highs. what is going on? not because of earnings. >> market sometimes follows profit and sometimes doesn't. >> and not because of consumer spending. auto sales fell more than 2% last month and the pace of home sales is also slowing. in fact, consumers are fe

the u.s. have an economy does the u.s. have an economy to record towards the rich. well let me let me answer something that before i get to that so i think you know worrying about getting to levels of debt to g.d.p. that japan has right now you know if we were actually headed there that would really be something to be worried about but that's just not what the data tells us the recent the recent projections by are now an artisan congressional budget office tells us there are our debt to g.d.p. levels are going to stay right right around where they are for the next ten years and yes they're going to gradually rise after that we do need to look at ways to reform our entitlement so that they don't get out of control but that's again not an immediate crisis right solution and it's not right to say that i want whenever we raise the debt ceiling we're somehow devaluing our currency. the debt ceiling as an american like you or you want the countries around the world do there gentlemen gentlemen i have john friedman here we're going to go to a short break and after that sho

the reality is that this is bad for the economy. if you're a government worker obviously you've been feeling it already. paychecks went out this week that were half the size of normal paychecks for government workers. my son's school, the big question at dropoff the last couple of weeks has been are you essential? are you essential? but -- gwen: only in washington. >> only in washington. around the country there are effects, too. national parks are closed. people who depend on recreation for their livelihoods are struggling. and you have people who just -- people who sell things to government contractors, who are government contractors, regional newspaper front pages around the country are full of people who are fed up and who are struggling from the effects of this. and it's only going to get worse and that's getting back to congress. >> it's interesting when you talk about the topics. they're being discussed this weekend. what's missing, the obama sponsored health care program. that was part of what triggered this in the first plac

the program will destroy the u.k. economy despite the warning greater fools are lining up to put just five percent down on a property worth up to six hundred thousand about so that they the taxpayer chump will put down the remaining fifteen percent. pop open the bubbly or is a perhaps a bottle of maggie maggie stacey what's going max it's called our maggie it's agree are being sold at the conservative party conference they're tearing the return of the housing bubble pm triggers new house sales spree two hundred thousand get chance to buy as cameron starts twelve billion pound mortgage guarantee scheme next week prime minister yesterday announced help to buy scheme will start from next week three months ahead of schedule quote i will not stand by while hardworking people struggle to get a mortgage critics say dangerous scheme will inflate the market well there's a couple things here one is as you point out in the opening people tend to gravitate toward things that are bad for them so when they advertise drugs that have negativ

the most important industries in the u.s. economy is the housing industry and housing is being adversely affected because. banks and craziest your friends they cannot effectively issue mortgages when they don't have access to the government data which helps them to very far and the applicant's income and other things so say and since they're government agents is shut down. operate at bare minimum banks have problems accessing this data so that could see verily slow down the mortgage insurance process and that could. have very nascent. housing recovery in the states what about u.s. treasury the pressure to be felt that the impact of the u.s. treasuries is the most important financial instrument karlin the financial markets so any and. any trouble with this instrument there's no spell big trouble for there will financial system above given the importance of us treasury for the health of the wall financial system and the chances that the compromise is not going to fall and that there's slim i want about the u.s. dollar that away express

will recover you quite correct this disjunction between the real economy and the financial economy but here in the u.k. as the house prices are moving up about one hundred pounds a day and then people extract that from their homes using the loan value of the home to go out and spend to go out and use that as a consumer spending and so the government has said you know this is a great ponzi scheme let's only require a five percent down so that people can continue this ponzi scheme of borrowing against our home why doesn't the government go to a one hundred percent mortgage total guarantee to allow one hundred percent of the economy to go out there and leverage their home to consume why are they stopping at just a five percent ponzi scheme threshold why not a hundred or a member going back to northern rock and bradford and bingley they offer one hundred ten percent mortgages why not go that route das instead of this pretense that they are in fact trying to encourage anything other than massive ponzi scheme building here in the u k. look i think you're absolutely correct why stop at ninety

though the economy is weak. are these record-highs justified? >> i think they are. we've seen, obviously, four record highs in a row and historically when stocks reach new record highs like they just did, we continued to see stocks move higher that need to be supported by economic growth and job growth we an average growth of 2% a year for the last four years and that's sufficient to support stock prices over that 4.5 year period. the economy looks like it's stuck in sort of first year, more of 2% growth certainly hindered by uncertainty but strong enough to support continued high stock prices. >> kate, malane and other people we talk to seem to think that all of the hesitation and the policies by lurching from crisis to crisis is fundamentally a tax on the economy and growth because it restrains consumers. do you see it that way, and how much is it really hurting the economy and hurting, for example, job growth? >> i think it's hurting the economy in two ways. it's not just -- i wouldn't quite call it an attack

so just as the u.s. economy was beginning to show the first size of our recovery it manages to bang into a wall well a ceiling in a way so that the help of the biggest most powerful economy in the world managed to get itself into such a mess well actually it's all to do with the squabbling between politicians over health meanwhile the health of the us economy is at risk the question seems to be about who can hold the longest obama's health care supporters all the tea party republicans meanwhile the clock is ticking. real now by your columns on the seventeenth of october when the debt ceiling will be breached the health of the economy will really be on the line because the u.s. government run out of town. and while u.s. politicians are all busy arguing about money economic damage to the already fragile corner. is intensifying according to independent research and economic advisors if the shutdown was to last two weeks that it would result in a loss of about two hundred thirty three billion dollars so let's get to

and it has had an enormous impact on the well-being of the american economy. y one of those people looks at the united states in the worse economic crisis since the great depression with a government incapable of coping with that problem, and now unable to function even in the normal ways, they are all going to reconsider what they thought the united states was, and if we were helped on the way up, we are going to be in serious trouble if that money and wealth begins to be pulled out, because they, like the american people are shaking their head in disbelief in how this government and political situation works. >> that is a big question, how healthy is the underlying economy? do you think this could have an impact and also looking forward to the debt ceiling debate, could this have an effect on the economy in >> this is a very fragile economy not just because of the shutdown, but because we have had three years of a political push for spending cuts and austerity and cutting taxes for the wealthiest americans, and that's what has lead to the politics that have l

and threatening the global economy? it's preposterous. >> republicans have proposed this six-month extension because -- six-week extension, don't get excited, to give time for these budget negotiations they think will happen while the government remains shutdown. >> think about the proposition here, john. you're suggesting -- >> i'm asking you to respond. >> but again, since we've seen nothing from the republicans yet beyond a very brief press conference, we don't know what they're actually going to propose or what they may try to get passed in the house. but the suggestion, in your question, the republicans would think that we can resolve all of our significant differences over the budget and that while we work that out we should do sustained harm to the american economy and sustained harm to the american people and their rational for that would be what? >> put pressure on you guys. >> so to -- i love the crystallization here. that's right. they want to use harm -- i'm not -- obviously not suggesting this is your view,

shutdown, calling it a manufactured crisis, warning them that it puts the economyt risk. >>> thousands of government workers are going back today. many reporting earlier this morning. the government has a provision for them to get paid back. >>> the major of newark, new jersey is getting a new job. cory booker won a seat in the u.s. senate yesterday. he will fill the seat of the late frank laudenberg who died in june. >>> an international conference could take place by the end of the month regarding syria. inspectors say inspections have taken place under a backdrop of violence. car bombs and mortars exploding near the hotel where inspectors are staying in damascus. the violence, has not, though, impeded their work. the team has inspecteded 11 sites so far. omar is near he syrian border. >> reporter: it has praised this cooperation given by the government and says syria will no longer have the ability to manufacture weapons or mix chemical agents. on another development a un source told al jazeera that a working date to hold the geneva conference will be on novembe

the sudden. financial repression that occurs when you. forced onto an economy hundreds of trillions of dollars worth of unpayable debt causing things like cyprus to blow up or for greece to blow up or for the wages in the u.k. and america to collapse that's all caused by the deflationary fact of money printing so now the new york times says well maybe we need a little inflation less prince more money this truly is al in alice in wonderland moment i won't i don't know you know they are of no help whatsoever to having people understand that money printing causes deflation and therefore and the deflation is getting worse and more money printing is going to cause more deflation what you also mentioned defrauding in the opening and that's the our banking system is a black hole of fraud and the fraud is sucking in more and more fraud in sucking in all the newly created money is going into this black hole in fact the more you print the more you incentivize more fraud which is deflating the economy the real economy faster and faster let's be clear about something altho

travel association says the economy missed out on $152 million each day. and travel related spending during the shutdown. that's a stunning $2.4 billion lost during the shutdown on travel alone. and this drag on the economy it's like to continue. -- likely to continue. hundreds of thousands of federal workers are returning to their jobs, they'll get back pay but many contractors will lose out. this deal is a short term deal. consumer confidence will be low and that could have an outcome on the upcoming holiday season. >> i asked real money's ali velshi just how much the shutdown is affecting the economic growth. >> urtsd about $30 billion out of the economy. bigger concern, $30 billion can be made up for. we can make that up, the economy can grow faster next year perhaps. the uncertainty is what comes in, the spend decision are made by individuals and businesses. they are lacking confidence and what's more serious it's not just the lack of confidence about not knowing what's happening. it's this new fear that the group of people in congress who spearheaded

to do that, we have to get people back to work, grow the economy. over 90 million americans are on the sidelines. over a third of the unemployed in the country have not had a job in over six months. household income is done significantly. we may disagree on why the economy is not growing as it should, but i hope we agree the status quo 1 not acceptable. let's work together to provide real relief for families. if we get control of the debt, we grow the economy, restore confidence in washington. the bar is low now, let's clear it. we restore confidence in the community if we do that. today, interest rates are unusually low. if we lock in reforms now, we keep interest rates low to help our economy. this opportunity's not going to last forever. once interest rates rise, they eat up a bigger slice of the federal budget. we know the fed will taper next year sometime. that means interest rates rise. in fact, if we keep kicking the can down the road, at the same times could bankrupt us. structural reforms are crucial to economic growth, and we should agent n

of course i mean the cagers of their u.s. economy has shown signs of recovery recently and pretty good sign please please the true unemployment shadows that dot com is twenty three percent and you double that for young people eighteen to twenty five there are fifteen million people on food stamps and the american middle class really incomes have been gone backwards for twenty five years and america has exported somewhere like four or five million jobs permanently and each job you export means that three are not going to be in your economy the american economy is smashing down hill any science at the moment are there are told as a result of pushing out of money which essentially going into house prices and stock market prices has nothing to do with the real economy of ordinary people and their jobs and their real incomes. economics professor rodney shakespeare live in london thank you very much. indeed for your perspective on this thanks. well for a view from moscow on the e.u.'s stalemate that's across live now to the dawson he's chi

to destroy the economy we heard that medicaid is going to destroy the economy we heard that the americans disability act is going to destroy the economy and in fact after every one of these acts the economy got a lot stronger so they're really really crying wolf here but politically the republicans are slitting their own throat because they don't understand this story every time either party has tried to push a constitutionally dubious means of achieving their ideological agenda against public opinion it's been disastrous for them this happened to the democrats in one thousand thirty seven when even the great franklin delano roosevelt couldn't push his court packing scheme through a democratic congress and it really hurt the democrats politically and of course what happened to the republicans in one nine hundred ninety five one nine hundred ninety six when did gingrich shut down the government and it contributed to the rehabilitation of president bill clinton and his reelection the republican party's esteem in the eyes of the american public has fall into an all time historic low in the g

to manage the u.s. economyat rings the world nowhere, because that creates a huge amount, and it is not linked to real economies. this is for all of the people around the world. >> it is not fake. buying bonds from the capital market in order to make the system more liquid, to try to get the economy moving again. quantitative easing has worked. this has certainly been more effective than austerity policies, and it has been less of a driver to extremist parties than austerity has. >> we will continue to watch what happens, coming up to that next deadline. hopefully, things can be sorted out. michelle on facebook saying, we americans are hopeful the next elections will eject the selfish, conservative people. it is the only way america will survive, but we will continue. we want to thank patrick for warning us and douglas and ronald, and thank you for joining us here on the france 24 debate. captioned by the national captioning institute --www.ncicap.org-- d of business. >> for the f

that is her prospective fed chair, she talks more about the real economy. understanding the fed chair's responsibility is dealing with keeping inflation down and dealing with full employment, the balance at the fed is -- historically been more interested in keeping inflation down than full employment. she's going to right that balance in a way that as she talks about the real economy, she speaks to the issue of job creation. so many of our problems are budget problems and problems in neighborhoods and problems with foreclosure and problems with all kinds of things are that there's not the type of job creation in this the country that we want and need. i think a potential chair woman bernanke -- yellen will help us and take us in the right direction. >> that's absolutely timistic a choice. she said maximum employment is the main goal of the fed. at a moment we're at a 63% participation rate. we need somebody at the fed who understands the importance of getting more people to work. >> she really understands and you don't hear people in these positions talk tha

, the global economy. obviously there is a credibility issue for the united states here, but help me understand the actual economic shock that would result from us not raising this debt ceiling and being in a position where america can't pay all its bills on time? >> do you remember 2008, the beginning of the great recession? >> yes. >> well, if there was a combination of the government shutdown for a period of time and, more seriously, more damaging if the debt ceiling was not lifted with a degree of certainty and enough time so that people could sort of have the assurance that the economy was in good standing, that would bring about so much uncertainty, so much risk of disruption that the standing of the u.s. economy would, again, be at risk. that some of the obligations that the first economy in the world has would not be respected. and i think, you know, there was a lot of discussion amongst the finance ministers from all over the world about the technical aspects of it. and you can argue forever as to