there has been good that the united states has done, but, of course, the deterioration of the economy and the political system post hosni mubarak suggests although we have invested in egypt we have not invested in durable things, durable areas that can help the country develop and ultimately become a more open and democratic society. we have not been able to resolve the dilemma between short-term security and longer term. until we do, we'll default to those issues of security. >> as i hear you rattle off all the leverage that europe has and $1.6 billion is a drop in the bucket. why are they allied to us, they have all the cards? cards. >> they have all the cards. >> they want american weaponry, and there's something about being aligned with the world's superpower. they benefit from the relationship as well. the fact remains they have a number of assets important to the united states. now, the question is how do we go about securing those assets for our own benefit without nurturing another authoritarian regime in the region. and, igain, there may be leaks as a result of the support for authoritarian. look at

the ninety nine to stagnate it. its banking system remained in a zombified state and the economy and the long period of deflation and secular stagnation now this is what the get his own is and telling. the e.c.b. has stabilized that the money markets the bond market and he'd make continue to do this for a while to come but the eurozone is and i think that stagnation now the worst thing however about this is that the eurozone is no japan japan was a homogeneous society is a homogeneous society it was not a comment that the way that the eurozone is the banking sector was obvious either but it was at least unified the eurozone is none of those things it is for granted and worse still there is no fiscal policy at the aggregate level of the eurozone whereas there was one in so in other words the eurozone is entering a far far worse and more pay to the us version of what japan went through in the ninety nine isn't the only. possible outcome of this is fragmentation and disintegration of the eurozone until and unless you have been lead this in their wisdom decides to exit the state of denial in which they find themselves a

the ninety nine to stagnate it. its banking system remain in a zombified state and the economy and the long period of deflation and secular stagnation now this is what the eurozone is entering. the e.c.b. has stabilized so that the money markets the bond market and he'd make continue to do this for a while to come but the eurozone is and i think that be good of stagnation now the worst thing however about this is that the eurozone is no japan japan was a homogeneous society is a homogeneous society it was not a comment that the way that the eurozone is the banking sector was somebody either but it was at least unified and the eurozone is none of those things it was for granted and worse still there is no fiscal policy of the ag the level of the eurozone whereas there was one so in other words the eurozone is entering a far far worse and more pay to the us version of what japan went through in the ninety nine isn't the only. possible outcome of this is fragmentation and disintegration of the eurozone until and unless you have been lead this in their wisdom decides to exit the state of denial in which they find themselves a

it may be security for the united states, but egypt is not a success for many egyptians. the deterioration of the economy and the political system. post-mubarak suks that though we have invested in egypt, we have not invested in durable things to help the country become ultimately a more democratic and open society. again, we have not been able to resolve that dilemma between short-term interests and longer term, and until we do, we'll default on security. >> as i'm hearing you rattle off all of the leverage that egypt has, and we were talking about how the $1.6 billion is a drop in the bucket to them, why are they allied with us? they have all of the cards. >> they don't have all of the cards. they certainly the american weaponry and to be aligned -- there's something about being aligned with the world's super power. and they benefit strategically from this relationship as well. but the fact is they have a number of assets that are important to the united states. question is, how do we go about securing those assets for our own benefit without nurturing another authoritarian regime in the region. and again, there are cathologie

the transportation system is critical to the economy of the united states. it is the backbone of the united states. all of you deal with the terrible congestion of the big cities. you have come to the congestion capital of the world. the texas transportation institute in their last report said washington, d.c., is the most congested city in america. to travele you between 10:00 and 2:00 so you miss some of that. it is important to be competitive in the world, to make sure our products, manufactured in america, will create jobs at home. it appears the manufacturers are starting to come back to america. they understand we have a great workforce. now we have inexpensive energy. gas weoud to say the found is going to help draw the manufacturers and companies back to america. we have to make sure we can get the market share to make sure we are creating jobs in america. when we talk about the role of government, i believe it is essential. we want to have the private sector purchase date with us. when you look back to the founding of the country, it was the tipping

the capitalist system allow certain people to make too much and accumulate too much wealth? >> our capitalism system is not perfect, but our system has enabled the united states to build the greatest economyn the world and the greatest country in the world. when adam smith more or less invented capitalism, he did not say it was a perfect system. i think it is better than other systems, but every system has imperfections. many peopleallows to make a lot of money, but many of them are philanthropic. you cannot be buried with wealth, and many people realize that. we need to make sure that research and development, education, things that people come up from the bottom, as i did. it is possible to rise up in our system. >> there is a lot of pressure for banks, for example, to pay employees less, and many have said that i will go work for david rubenstein. bank unfortunate that the -- that the money did not go from banks to teachers? >> you could always cite examples of how the world could weretter off if teachers paid more money, but the system is what it is. probably the highest paid people should be interviewers on bloomberg. >> agreed. >> i cannot change the system overnight. i have to work

the classic corporatist economy retain private ownership with less -- little control to the voters. it replaced competition and the market with a tripartite system of business confederations, labor unions, both with little power, and the state. corporatist institutions and policies aimed at social protection and solidarity. these economies were conspicuous for their patronage and lobbying, not to mention cronyism and nepotism. miscellany, a leading corporatist promised higher productivity through innovation without actually arranging for it. corporatist and socialists have continued to this day to claim that their systems boost economic performance at least on their measures of good performance but data from the 1980s and 1990s do not support those claims. indeed the more socialist economies do not excel at employment in the 80 ats and 90s, more corporate stock economies did not excel to growth. those economies have approved so woefully lacking in innovation, indigenous or exile dennis that they have been unable to realize their own goals. my book tests its thesis, highly prospering nations require high dynamism and for that they have to be high in modern values. to simplify the investigation, the book tests whether to be h

state. over the past year, we have come together as families, as communities, as iowans, putting our differences aside to move iowa forward. because of our hard work last legislative session, iowa's economy, educational system and health are moving forward. iowans have proved time and time again, when working with one another rather than against one another, we can overcome any challenge. for example, the international olympic committee last year took action to eliminate wrestling from the olympics. more than 25,000 people joined us through an online petition to

state exchange or moving into a federal exchange. we appreciate the fact that all governors have different economies, different budgets different political situations to deal with and different preferences on how the healthcare system is administered. in my state of oklahoma, just speaking for me, i did choose not to expand the federal medicaid system because i'm concerned about the cost and concerned about congress meeting its promises on funding. i also did not choose to form my own state exchange. we went with the federal exchange. our citizens voted overwhelmingly not to support the affordable health care act in our state. we passed a constitutional amendment in oklahoma. what happens in oklahoma is different from colorado. in general, the nga respects other governors and their different budget situations but we do have an agreement on needing to lower medicare costs, improve health care costs and also improving the health of our citizens. >> it has obviously been difficult. our local exchange was smoother than the national rollout. i think we are close to 150,000 signing up through expanded medicaid or those who did not have insurance for other reasons. one thing that gets lost in the discussion frequently, fi

for the euro zone to end into a long period of what i call japan isolation you may recall that japan in one thousand nine hundred stagnated. its banking system remained in a zombified state and economy and a long period of deflation and secular stagnation. now this is what the get his own is and telling. the e.c.b. has stabilized so that the money markets the bond market and he'd make continue to do this for a while to come but the eurozone is and i think that you could of stagnation now the worst thing however about this is that the eurozone is no japan japan was a homogeneous society is a homogeneous society it was not a comment that the way that the eurozone is the banking sector was somebody either but it was at least unified and the eurozone is none of those things it was fragmented and worse still there is no fiscal policy of the i get the level of the eurozone whereas there was one in so in other words the eurozone is entering a far far worse and more pay to the us version of what japan went through in the ninety nine isn't the only. possible outcome of this is fragmentation and disintegration of the eurozone until and unless you have been lead this in their wisdom decides to

hundred years after the founding of our republic our economy was built on a system of tariffs small taxes on imported goods these tariffs made foreign goods more expensive in the united states as protecting american manufacturing and helped make our country a global superpower american businesses and american workers didn't have to compete with cheap products or cheap labor from abroad and so in part our economy flourished everything worked fine until the one nine hundred eighty s. when probably president ronald reagan began to bad in the system actually some ways nixon even began abandoning a system of tariffs that would work so well for centuries and ushered in the golden era of so-called free trade nixon had already put the united states on the free trade path in the seventy's things really took off in the reagan years every president since including democrats like bill clinton has followed reagan's and nixon's lead by slashing tariffs and signing assad to free trade deals like nafta and after this has been a disaster for the american people that is impoverished our nation because as adam smith pointed out the wealth of nations is in large part what they manufacture publ

relations with the arab and other muslim states and the interest in the economy growth being united on taking up its rightful place as one of the main pillars of the party centric systeminternational relations and this is what guides us in partnership with the negro. stacy oh i see and a corporation counsel to the arab states of the gulf. breeze will record upon oh but this isn't in a conference but we can all they can to assist the government of syria and the opposition to unite efforts review to eradicating terrorism i remind you that the g eight leaders called for this in the final communique of the duck and summit in middle of june two thousand and thirteen it augurs well for the work of the conference that has been progress achieved and destroying the syrian chemical weapons arsenal it is with so that when you put up with your human issue and know the cooperation between the syrian government. the u.n. resolutions this process and also the information of the agreements on the wing iranian nuclear program will be a real contribution to establishing a zone. of as an intimate place which is free from the n.t. words we are all for stepping up efforts to alleviate eve

parents, going to work, picking up the kids from school, the transportation system is essential and critical to the economy of the united states. it is the backbone of the united states and i think all of you here, especially those with big cities that deal with the terrible congestion, you have come to the congestion capital of the world, washington, d.c. saidnsportation institute in a recent study that washington is the most congested city in america. when you travel on the highways here, go between 10:00 and 2:00 so you miss some of that. it is important for us to be competitive in the world to make sure that our products that are manufactured in america go into the world economy as the game market share and create jobs at these factories back at home. it appears that manufacturers are starting to come back to america because they understand we have a great workforce, and now we have inexpensive energy. i am proud to say, in pennsylvania, the marsalis shale will help to draw manufacturers back to america, but we have to make sure we can get out to the world economy to get that market share, to make sure we are creating thos

system, square that. >> we see left money coming into health care, having major implications for the economy. health care is the biggest industry in the united states. 17.3% of the u.s. economy. if we look at that, there's reduction in costs. it's got be people who have to be taken occupant. every ceo of a hospital talks about reducing employees. remember, health care is the only industry that is growing jobs since 2000. so that could have major implications in a lot of areas. >> that was toby cosgrove of the cleveland clinic. then arnie sorensen, the ceo of marriott hotels. they brought a south african hotel chain and are expanding. one of the things that sorensen and other hotel and hospitality companies are on about is it's difficult for people to come to the united states. the process when you get to the airport. he puts pressure on the administration to make things easier and explains why. >> more and more people with resources to travel for the first time many want to come to the united states. what we see is a decline in the u.s. arrivals share of that global travel. if we had the same share as in 2000. we would have this 35,000 more visitor

state exchange or moving into a federal exchange. we appreciate the fact that all governors have different economies, different budgets, different political situations and different preferences on how the healthcare system is administered. in my state of oklahoma, speaking for me, i did choose not to expand the federal medicaid system because i'm concerned about the cost and concerned about congress meeting its promises on funding. i also did not choose to form my own state exchange. we went with the federal exchange. our citizens voted overwhelmingly not to support the affordable health care act in our state. we passed a constitutional amendment and oklahoma. what happens in oklahoma is different from colorado. in general, the nga respects other governors and their different budget situations but we do have an agreement on needing to lower medicare costs, improve health care costs and also improving the health of our citizens. beenthat's obviously difficult. our local exchange was smoother than the national rollout. i think we are close to 150,000 through expanded medicaid or those who did not have insurance for other reasons. one thing that gets lost in the discussion frequently, five years ago before

system. so the private sector is struggling. the government's struggling. you go over to china, where they are very worried with 92 million diabetics in china already, more than the united states, how do they get their economyhow do they get their health care system ready to take care of all these sick people.% >> liz: i would be remiss if i didn't ask healthcare.gov. may i ask, volume of health care exchanges -- you're laughing. is it that bad? volume at least where you thought it might be? is it lower, higher? >> well i think it is lower than everybody thought in part because it struggled to get started but it is really not about the website. it is about whether or not the program is designed properly tone courage people to join. liz: is it? >> it's not. what we don't have a system that is built for consumers. people don't want to go to healthcare.gov to shop. people don't want to go online to look up health insurance. do you go online to look up car insurance? do you relish that idea. >> i might compare. >> i think whole idea what do we do to provide enough variety and choice for consumers to be able to want to go and find something that fits them. the fewer options you have, the less exciting the market

the transportation system is essential. it's critical to the business and to the economy of the united states. it really is the backbone, i believe, of the united states. and i think all of you in here -- especially those of you here that have big cities and deal with the terrible con discretion discretion, -- congestion, and you come to the congestion capital of the world, washington d.c. texas transportation institute if their last report said washington, d.c. is the most congested city in america. so i would encourage you to when you go travel on the highways here, go between 10 and 2 so you miss some of that. but really it is important to us to be competitive in the world, to make sure that our products manufactured in america going into the world economy as we gain market share will create jobs back in these factories at home here. and it appears that the manufacturerrers are starting to come back to america, because number one, they understand we've got a great work force in america, but now we have inexpensive energy. and i'm proud to say from pennsylvania, the marcellus shale, the gas

the united states constitution. for more than two centuries the patent system has incentivized innovation, promoted economic growth and job creation and helps greet the greatest economy the world has ever known. so it was good to hear president obama note that he ideas and inventions behind smart phones, vaccines and a diverse host of american innovations represent our best hope for competing against the rest of the world. the president also briefly mentioned -- although he avoid specific i know what it said in the past that this administration recognizes how important protections of intellectual property is to our economic growth. the importance of patents has only increased in the 21st century with a knowledge-based economy is help to distinguish the united states among all other nations. as many of people who follow technology issues know, the u.s. patent system is the gold standard protecting ideas and intellectual property. according to the recent time convention poll, the united states is viewed worldwide as the country that does the best job of protecting ideas by a four to one advantage over other nations. patents fuel those countries innovation economy, crea

happy to have state support you know state socialism for the banks but they're not prepared to have a health care system that's actually going to help grow the economy has done fantastically for economy there's just been some data in a paper that's come out from the university in stanford university that shows actually health care spending has a fiscal multiplier of around four point three with good confidence intervals around it so four point three is a fiscal multiplier i mean that's i mean we should be increasing health care spending because what. does it increases demands on the system because of the social determinants of health policy poor housing make people into so you get more people actually coming into. the health care service and that's what you see with the eighty crisis we go to the moment but then you've got all stare at sea of onto the n.h.s. . we sense we haven't got the supply in some of the hospitals to to deal with it's a real perfect storm for the n.h.s. and that they're cutting back the side and cutting the treasury's cool back five billion pounds in the last three years now saying oh it's flatlining spending but we're going to

the united dates. without an interstate highway system, we would not have the economy we have. we have infrastructure all across the united states and when you invest in infrastructure, you invest in something real and long-term. engaged in a massive >> all of today's program online. we're going to take you live next back to the republican national committee meeting in washington and their panel looking at the rising stars of the gop. >> the first group of rising stars when we were last together. i am so honored to have the opportunity to be here together with our new group of rising stars and i'm honored to introduce them to our committee and the media and the world. when we are looking at what we're doing, we are not just talking to women, we are empowering women, we are training women. we are going around the country finding dynamic women that want to run for office like these women. and we're not just talking about it or talking to them. we're going out there and we are reaching them. we are training them. we are empowering them and working with them to make sure they understand fundraising, media events, communications. wha

the united states but the saudi people don't like us. if you ask me over the long term which economy in which political system the u.s.aged with, it does not take a rocket science or and iranian jew to figure that one out. >> nouriel roubini and ian bremmer as we celebrate in davos. i know we have a busy agenda today. a lot to talk about across all the different transactions, lenovo, and what is going on in davos as well. >> would actually want to bring up our twitter question of the day. what does carl icahn, activist four/two -- for/to companies. here are some answers -- certainly pro carl icahn there. this one a little more cynical. finally -- are guest host for the hour, nyu school of business. -- scott galloway, our guest post for the hour. do some businesses respond better to carl icahn or does he use the same strategy limited what? >> apple handled it very well. actively engaged in. the best way to silence an activist investor is to put him on your board. a great dialogue,, the board. you are supposed to be a fiduciary for shareholders. the best fiduciaries are owners. you don't want to wake up and see your log

it is not a trick question but the thing that takes place in the states is the government should step back, allow the economy the opportunity, the free enterprise system to recover itself as opposed to one stimulus after another, and it is the big debate that continues in this country and so at what point i dare any indicators in your mind, generic indicators to show the government is too aggressive in intervening the economy? >> my view is in the short run, if the economy is sluggish and the government does engage in expansionary policies, in other words if you can see there is a downturn and the government doesn't exchange expansion policies and intervention. on the other extreme, if you start seeing inefficiencies' building up in sectors still the government does not slow, intervention or influence in resource allocation what is excessive intervention. and the latter is usually found in cases where a country is emerging from a low income or developing to more middle-income groups where the economic structure itself is becoming too complicated for the government to be able to plan its way forward. >> that was a good economic answer and a good politi

as in the united states, central banks and other advanced economies have taken significant steps to strengthen financial systems. financial sector reform is proceeding in the effects of tilingte tight fiscal policies. although difficult reforms such as banking and fiscal reform in europe and japan are still in early stages we've also seen indications of better growth which should have positive implications for the united states. emerging market economies have also grown somewhat more quickly after a slowing in the first half of 2001. although growth prospects continue to be good here too the extent and effectiveness of structural reforms like those in china and mexico will be critical factors. last month we had a ceremony at the board to commemorate the centennial of the signing of the act by president woodrow wilson. over its 100 years of existence the fed has faced numerous challenges. certainly the past few years will rank as some of the more difficult times. the experiences led to important changes at our institution including new monetary policy tools, enhanced communication, substantial increase in the in

the united states, where we have the best command and control system in the world, what's happening in russia? what's happening in pakistan, a country with 100 nuclear weapons, unstable government, a collapsing economy, strong fundamentalist influences in its military. oh, al qaeda operating inside its national territory, and an ongoing conflict with nuclear armed neighbor india. the risk of accident or miscalculation or collapse of security that could allow terrorists to get these weapons is a real and present danger. but it gets even worse. in 1995, the government of norway was firing off a whether rocket, a routine whether rocket that could take at material testing. but when russian military forces detected this rocket, it looked at him like he was the u.s. launched submarine-based nuclear armed missile, and they interpreted it as the first wave of an attack. and the fact under some attacks in there, that's exactly how it would start, a single missile coming across detonating a nuke weapon to blind russia's radar, followed by a salvo of u.s. weapons. they alerted president boris yeltsin, leader of russia at that time, and for the first time in history, opened up the nuclear football, that's the c

[laughter] the debate taken place over at the states is that the government should step back. a lot of economy the opportunity through the free enterprise system to recover sits opposed to one stimulus from the other ands it's a big ghat continues in this country. and so at what point are there any indicators in your mind question -- questioner in rick in interhave a convening in the economy? well, what i can tell my view in the short run if the economy sluggish and the government does not engage in expansion their policy the, i will as political intervention. in order, if you can see clearly there's -- [inaudible] maybe that's too little intervention. the other extreme if you see inefficiency building up in sectors, still the government does not slow its -- intervention or inflounce in resource allocation in the case i see as excessive intervention. the latter is usually found cases where a country is emerging from low-income or developing to more middle income group where the economic structure i.t. is becoming a little bit too complicated for the government to be able to plan itself way forward. >> that was a good economic answer and good p

state exchange are moving into a federal exchange. we appreciate the fact that all governors have different economies, different budgets, different situations to deal with and preferences on how a health care systemis mr. in my state of oklahoma, speaking for me as a governor of oklahoma, i did choose not to expand our federal medicaid system because i am concerned about the cost. i'm concerned about congress keeping its promises on appropriations and i also did not choose my own state exchange. we met with the federal exchange. the same oklahoma and our citizens voted overwhelmingly not to support the affordable health care act in our state pass a constitutional amendment in oklahoma. what happens at oklahoma is different than colorado. all at the governor speak about his state. in general, the ng respects other governors in a different budget situations are different opinions about public policy. we do have agreement on a nuclear medicaid cost, to improve lower in the and improving the health of our citizens. >> and it is obviously been difficult. our local exchange fared much better than i rollout was smoother. not without bumps, the smoother than the national rollout. we are now up over close

was so powerful because it was this fiscal military state that had a bank and a great system of finance. so he knew he wanted to diversify the economy. and he didn't want just farming. he wanted it to be a modern tundra with every kind of industrial activity there could be. let madison do it. let hamilton do it. when madison objected of course he thought long and hard about well, was this really the right way to go but in the end he said yes. let's absolutely do it. so that surprised me. it's not simply that he was a handsome guy who looked good in a uniform. but what i say about him in the book is that he was the visionary chief. i came to find him. >> and in the case of choosing hamilton over madison's objections, he is going against what you would think were his proclivities. his virginian advisers, the people who were most like him were saying he's a strong guy but he goes with "the new yorker," the immigrant. >> he was an entrepreneur himself. he saw mt. vernon as his business. he had -- everything was useful for him. the tone is beautiful but it's full of fish. so he builds a fishing fleet and he's exporting barrels of salted

states who has the best command-and-control system than what about russia? pakistan? the country was 100 nuclear weapons in the unstable government collapsing economy was strong fundamentalist influences as al qaeda operates inside its national territory with an ongoing conflict to with india. accident or mr. undulation or collapsed to allow terrorists to get these weapons is a real and present danger but could be worse. in 1955 the government in norway fired off a routine weather rocket. with the u.s. launched nuclear arms missile and that is exactly how it starts coming across detonating a nuclear weapons supply. they alerted boris yeltsin at that time and for the first time in history opened up the nuclear football, that suitcase that follows the president of united states all around with command a huge control but to launch through the country they told boris yeltsin that russia was under attack a and he should abolish the nuclear missile. fortunately he was not drug. he did not believe what he was told and wasted for more information is awaited a and we did it became clear. we dodged a nuclear bullet parker very large nuclear bullet. this misu

as in the united states, central banks and other advanced economies have taken significant steps to strengthen financial systems and to provide policy accommodation. financial sector reform is proceeding, and can the contractionary effects are waning. although difficult reforms such as banking and fiscal reform in europe and structural reform in japan are still in early stages, we've also seen indications of better growth in the advanced economies which should have positive implications for the united states. emerging market economies have also grown somewhat more quickly after a slowing in the first half of 2013. although growth prospects for the emerging markets continue to be good, here, too, the extent and effectiveness of structural reforms like those currently underway if china and mexico -- in china and mexico will be critical factors. last month we had a ceremony at the board to create the signing of the federal reserve act by president woodrow wilson. over its 100 years of existence, the fed has faced numerous financial and economic challenges. certainly, the past few years will rank among some of the

struggling economy soaring unemployment high taxes and housing needs at the center of the protests fifty organizations mostly right wing groups planned the route. from state of the art navigation systems to russia's next industrial revolution technology update is after a short break right here on our chief international. i've always had mixed feelings about speed traps it seems like it's a waste of the police officers time but on the other hand they sure do make people paranoid and drive more slowly one man from texas is completely sure his opinion about speed traps and he set out to save his felt texans from being fined for speeding and much more importantly from potential traffic accidents caused by the hidden police and now he's the one who is in deep trouble according to fox news ron martin faces a misdemeanor charge for violating frisco texas sign ordinance that says that you may only stand around holding a sign on private property martin claims that he was doing the exact same thing as a speed limit sign reminding people to slow down and i think ultimately he is right you should be able to tell other people where the police are setting up speed traps because that will cause them

economy that does anything else that it will or. money is a part of generally speaking the national economic system so that it gets its authority from the. from from the state from the promise that it is legal tender that you can use it to retire any debt that you may have whether a private debt to another individual or company or or a debt to the state what you can use it to pay your taxes now if they have monies position is the only legal tender within an economy important to maintaining its value as a medium of exchange. yes of course it's it is the foundation of that value essentially yes can you expand upon that a little. well if you. were not able to use your national currency to pay debts that were contracted in a particular country then. there would be very good reason to go and hold somebody else's currency you might expect that. there would be a general flight for international currency into. into another countries and that would be that would cause problems does cause problems for countries where there is some doubt about either the stability of the currency or the willingness of the of the rest of the world to hold it that actually means well it

the united dates. without an interstate highway system, we would not have the economy we have. we have infrastructure all across the united states when you invest in infrastructure, you invest in something real and long-term. engaged in a massive overhaul of our water sewer system. i refuse toearlier raise taxes to run the city. voters and the voters approved a drainage fee builtest in our environment in houston. how do you pay for it? there are no easy answers. >> you just heard from the mayor of houston. ,lso joining us, of baltimore louis on our independent line. good morning. >> it is a pleasure to talk to the mayor. i practiced in baltimore for a number of years i had the pleasure and honor with director henson. idea toted to her as an employ some of the younger men in baltimore city, that they inld take 100 or so baltimore and dedicate the housing to vocational schools and have them set up a renovation program where they could renovate plumbing and electricity and roofing and they andd manage the income finally, they would own this housing. and the problem is baltimore, you have no replacement income for the young man. you

economy that does anything else that it will or. money is a part of generally speaking the national economic system so that it gets its authority from the. front from from the state from the promise that it is a legal tender that you could use it to retire any debts that you may have whether a private debt to another individual or company or or a debt to the state what you can use it to pay your taxes now is fear of monies position is the only legal tender within an economy important to maintaining its value as a medium of exchange. yes of course it's it is the foundation of that that it was central you know can you expand upon that a little. well if you oh oh. were not able to use your national currency to pay debts that were contracted in a particular country and. there would be very good reason to go and hold somebody else's currency you might expect that. there would be a general flight for international currency into. into another countries and that would be that would cause problems does cause problems for countries where there is some doubt about either the stability of the currency or the willingness of the of the rest of the world to hold it that actuall

economy that does anything else that it will or. money is a part of generally speaking the national economic system so that it gets its authority from the. front from from very state from the promise that it is a legal tender that you can use it to retire any debts that you may have whether a private debt to another individual or company or or a debt to the state what you can use it to pay your taxes now is fear of money's position is the only legal tender within an economy important to maintaining its value as a medium of exchange. yes of course it's it is the foundation of that value essentially you know can you expand upon that a little. well if you. were not able to use your national currency to pay debts that were contracted a particular country. there would be very good reason to go and hold somebody else's currency you might expect that. there would be a general flight for international currency into. into another countries and that would be that would cause problems does cause problems for countries where there is some doubt about either the stability of the currency or the willingness of the of the rest of the world to hold it that actually means well it'

the state of our state. [applause] we continue to lead practical and principal initiative and drive arizona forward. we must keep errors of a competitive in our tax structure , education system, and their limited government. a thriving economy. certainly improving areas of his business plan that has been a hallmark of these last five years. everything we have accomplished, i am equally proud of the work we have done on behalf of errors of his family. school choice policies that give parents the power to decide their children's education to life affirming legislation protecting the unborn. [applause] together we have pursued and protected the values most important to arizonas family end arizona's future. the initiatives, we have enacted these past few years has been transformational. we are not done, and we will remain unrelenting. let's continue to face our challenges head-on. merrill is not the time to rest on our competence. our immediate challenge is to transform, to ensure the safety and well-being of arizonas abused and neglected children. i know this. all of us care. arizona must do better. we created the office of child welfare investigations as it implements a first-ever the extent of c.w. i we discovered the truth

the united states. what is that distinction right now? how different and how challenged his european banking? >> i am not sure there is such a difference. a system inake terms of financing the economy. we have a transition to make. will we have also is a more sluggish economy than the u.s.. i think that when i look at capital levels, a bank like societe general, liquidity has improved. >> thank you. did a great job, but we benefit from the collection of deposits. there is more or less the same issue as the u.s.. we need to get an acceptable profitability. that is 10%. >> i want to talk about two more topics. this goes to france and the train to london or the airplane to new york. how does france defend itself against the animal spirit that we see in new york and london? particularly with bonus pay. how do you keep your brain power in paris? >> we need to have competitive compensation packages. beyond that, i am trying to have people who are not interested in money. they are interested in their jobs and clients. in the culture that we have in societe generale, it is important to change the culture. we see people who are good. they have talent. we try to come from -- promote. people

the united states then the winds of the economy. we went through a 4.5 year period where correlations in the stock market were very high. all stocks traded on macro economic fears and systemic fears. even though the underlying companies were doing quite well, the stock price reacted to events in europe and the mortgage market and anything but what happened in those real economies praise stocks got cheap but we got positive performance in those for .5 years. there were definitely some coiled spring summit led to low bell uh in and companies hoarded capital. they took the excess capital and deployed it and that's what led to some phenomenal growth last year. >> if you are prepared to wait that long, you are clearly somebody who has the courage of his convictions. -- ended thered year with a lot of confidence. the fund was 100% net long and your glenview fund was not late longer. -- was slightly longer. how confident are you this time? >> as we enter the new year, our portfolios are long, about 14 times this year's earnings, trading under 12 times. we don't have a crystal ball as to whether the economy in the second half of this year will be phenomenal or week. we know the com

our welfare state is very, very inefficient and drags down the economy, especially in health care. our education system is not well suited to creating the kind of workers we're going to need in the future. regulations are targeted to consolidating the economy, rather than allowing it to grow. but we also have bigger problems. you know economic growth is basically a function of two things. it's a function of population growth and of productivity growth. and in the post-war period, after world war ii, we went through an explosion of growth in the labor market. the baby-boomers entered the workforce, women entered the workforce in enormous numbers, and at the same time, we had these productivity explosions. one after another, technological advances that allowed us to become more and more productive. our workforce is not growing that way anymore and it's not going to be, because we have the baby-boomers leaving the workforce, retiring and there's basically no way to have that kind of growth again, even through immigration, even through anything else we might imagine right now. so the only way really to get

the asian crises coffer example, 1998. both in terms of you got this economy slowing. it means you are not at state. export its head. the greater risk is to the global financial system, that if these countries run into any kind of payment difficulties, that can cause difficulty on the banking system. i am not concerned so much about that in terms of the asian countries, but i'm certainly concerned about that in terms of the european economic periphery. >> and what are the fragile five? >> resort, indonesia, south africa and turkey. these fragile five are fairly sizable economies. you got to think of brazil and in yet as two 22 of the bricks and these economies have been accounting for most of global growth over the last 10 years. >> dr. subramanian, your response. >> is, mr. chairman, the point is there is a short-term and long-term impact. the two key points. one is that the capital inflows that go to developing countries because of qe are very set on these countries depend very much if they do things right. it's a huge benefit. similarly, if they follow sound economic policies in the capital flows out, the risks are minimal. and therefore, the key point here, one

state raises goes. at no gun is not trying to control the judicial system. and it's far more dangerous for the economy and it does in real danger i think that the more people the most important thing to call the police. it's great to meet a new constituent to make a sequel more comparable more transparent. we have a comment from a viewer of come on twitter. everyone is acting like a dictator trying to cover up corruption among his closest associates and political partners is iam are all what's your reading a commenter does not look good at goal of the scene mode and one pounds and four hundred or so of police officers being shuffled around the country right off the just out of this investigation has seen prosecutors are looking into the corruption case is being limited to mexico for investigation and what they can do and they just mason's that the contents of me at the same time. i think everything again just like all your other guest is right for the mentioned everything comes down to this mythical construction also come i going to feel like it somehow is claimed to have an absolute policies all knit