if not for the u.s. fed reserve homo operations i've been you know the stock market would be crashing out so on the surface everything looks ok and just like the same department store disaster where you have you know the regulators that are basically you know taking bribes to look the other way ok so structurally the u.s. economy is weak and you mentioned something in there i want to go back to it for a second pomo or permanent open market operations so explain a little bit how this works cuomo operations are basically designed to recapitalize u.s. banks so what happens is the u.s. but reserve they just print money out there and they buy u.s. treasury bonds maturing u.s. church bonds otherwise the church or it will collapse as well and therefore the banks to recapitalize i have a body and i assume they take a lot of money and put it back into the stock market concern to be told busters not buying so. the market there's been a lot of questions asked who is actually buy u.s. stocks to make the stock market

the u.s. do a particular, make a particular decision regarding haiti?" i don't think that is the way the question should be posed. "will the u.s. give up on haiti?" and i'm afraid that the answer may be that the u.s. over time, will tend to give up on haiti because the problems that it faces there and the reconstruction process dealg with an impoverished country with low levels of human capital and financial capital, given its tendency to move towards political division, ah, the insecurities there and the competing interests that we face around the world in a, in a period of physical retrenchment, i think will lead us, eventually, to more or less give up or to lose patience with haiti once again and see it fall back into a certain era of neglect. but i think there is, undernth, certn desire of the american people, a commitment by the patient diaspora, and hopefully the haitian people themselves, to come back from this terrible tragedy and, and continue forward. but the u.s. as a government, ah,

the future. and should u.s. and china develop largely inter-dependent projects in this field that will further consolidate the basis of our relationship. that's good. i think we need also to increase people-to-people exchange. you have yours. the chinese leader also has their constituents. if people-to-people exchange increased, mutual understanding would be further developed. that would be good. that would be very conducive to strengthening the foundation of bilateral cooperation. >> charlie: thank you, ambassador. when we come back, more perspectives on the state visit of the president of china. >> charlie: joining me now from washington david leonhardt of the "new york times," and richard mcgregor of the financial times. he's also the author of the party, the secret world of china's communist rulers. i am pleased to have all of them here with me on this program especially on this day. welcome. let me.... >> thank you. >> charlie: richard mcgregor you were bureau chief as i remember also in beijing. what are th

the u.s. idea of planning is to let the banks extend decide where to extend credit where to fund things and the financial advantage point is the short term vantage point basically of assets gripping so you have the banks stripping assets and stripping income in the united states imposing debt deflation this is what china is trying to get rid of and of course they're going to move much more towards the internal market simply because the market in the united states and europe is shrinking so one way or another given their productive capacity of course they're going to use that to raise living standards that's the only way that they can maintain a market for the for the policy and in a mixed economy with the government playing a role along side business to create an environment where business can serve the public interest you're going to have a much more efficient allocation of resources than you have here when the market is planned by banks with a view towards how much can we get the private sect

"china and the u.s. add up to a ."tive somum from "the new york times" -- host: there is also "the wall street journal" this morning with their editorial. green bay, wisconsin. independent line. good morning. caller: what i think that we should move to is a direct investment for all manufactured products. if china wants us to sell its products -- our products there, they should move their manufacturing here under our laws and stipulations. if our manufacturing companies want to sell in china, i think that they should invest in plants and equipment to manufacture the products in china. that is what we should move to instead of what we have right now. host: akron, ohio. democratic line. caller: good morning. how are you? host: duwel. caller: i am calling to say that it is time for america to wake up. we have been duped. we have been had. i want to give some history and china. the first president to go over to deal with china was nixon. the first ambassador to china was george w. bush. everyone knows that that is a commun

the u.s. president. mr. brent scowcroft said although they are our problems and differences of this or that kind, i relations must eventually improved. world peace and stability needed but although there is not delay sensitive, but he pointed the most important thing, especially our relations must eventually improve. at the time i asked him if i could use that sentence as the title of that chapter in his book. and if you read volumes three of the selection of his works, you can see the title of that sentence. later i wrote that sentence by mr. president george w. bush. i think today politicians up for third two countries in this political and strategic vision in preserving and handling our bilateral relations, including interest and beauty and communities of interest in all areas. and a broader sense, this is the way china conducts itself and handles relations with other countries in a world in the second decade of the 21st century and beyond. thank you for your attention. [applause] >> chairma

of the concept of selling japan advanced u.s. et fighters you know so-called fifth generation stealth jet fighters like the f. thirty five joint strike fighter but you know immediately after gates his visit to japan there was discussion about japan relaxing its constitutional ban against what's called collective self-defense to enter into an arrangement with the united states to provide what are called standard missile three interceptor missiles to eastern europe i mean. near russia's western borders as a matter of fact in countries like poland and romania and then we saw of course last week the meeting of the defense ministers of japan and south korea in seoul where for the first time ever japan and south korea negotiated two military agreements and this was done largely on the prompting of the united states of course so i would say if i were sitting in beijing i'd be a bit nervous about the u.s. engineering some equivalent of what's been called in over the last decade and asian nato to contain china one quick one i just wanted t

the u.s. war in afghanistan. where did this series come from? >> guest: you know, the first of those was the israel/palestine one which we deliberately chose reversing it. it's usually called israel/palestine, we chose to name the book understanding the palestinian-israeli conflict. that came out of a project that had actually started several years earlier with colleagues of mine who had asked me if i would put together what they called a primer as a pamphlet. and we weren't sure exactly what form it should take. we wanted something that would be easy and accessible for people who are interested in the issue but didn't necessarily know anything about it. and maybe because they're educated people would be a little bit embarrassed to admit they really don't know some of the basic questions. who are the palestinians? why are they there? are jews is and israelis the same thing? so i did this pamphlet. and then in discussing it with a very close friend and colleague of mine, my publisher who's pales

the u.s. government debt. whether they can get it under control. >> absent any action, the jet -- debt to gdp ratio will be rising. >> we hear from one economist who argues america could be a second division socialist state. >> two of britain's leading people bring a rare audience to us. >> this is very important at the same time. >> asked to name the biggest threat hanging over the global economy and most people would think of a crisis in the euro zone, but some see a larger cloud that could make the bailout of portugal make up -- look like loose change. >> president obama when to a factory to talk about creating jobs. new figures showed the economy is not creating enough of them. they have been good at creating federal debt. this is what the head of the central bank had to say about the long-term threat at that they covering -- government borrowing this money. >> we have done little to address this critical threat to our economy. doing nothing will not be an option in definitely. the greater

the u.s. and china have been tense since january last year when the obama administration decided to sell weapons to taiwan. china apparently wants to demonstrate to the international community that through the visit ties have improved with the u.s. hu will also visit obama's hometown of chicago. >>> a u.s. media survey shows that president obama's support rate recovered to its highest level in nine months thanks to his handling of the shooting rampage in tucson, arizona. 54% of respondents said they approve of the president's performance, an increase of five percentage points from last month in the latest survey conducted by the "washington post" and abc television. 43% said they disapprove, down four points. the latest poll took place shortly after obama spoke at the memorial service for the victims in tucson. six people were killed in the gun attack on january 8th. that targeted democratic congresswoman gabrielle giffords. at the memorial, obama voiced concern about the deepening rift in u.s.

was the u.s. . well the report prepared by the u.s. ambassador to russia has concluded that basically the opposition in the country is on sustained and immature he's also reported that some members of the opposition actually asked for the united states for help in. a new political parties. many members of the opposition believe that. running for president once again would be the biggest threat to the russian u.s. relations and the united states should also be involved in preventing that from happening. he doesn't think that the u.s. should be involved in that. to further improve relations between russia and the us the a bomb or administration has a stand simply refrain from vocal support for democratic reform civil society activists in russia are unaware of the contours of the u.s. approach to shuman rights and its record of public statements and speeches russia's democrats remain in mere terminal really constant personality disputes disagreements with the kremlin differences over the viability of political activity . in his report to w

and while the u.s. put education on the chopping block this year china invested four percent of its g.d.p. in primary and secondary schools in poor rural area chinese universities are mushroom in all across the country and increasingly attracting prestigious foreign professors and even american students like philadelphia native zachary franklin seemed. just a better decision to be in a country learning about economics where so much is happening economically getting a master's in shanghai doesn't mean crippling student loans chinese students themselves you know not paying absorbent amounts of money for an education in this country. china is also speeding ahead on high speed rail lines in massive infrastructure chinese officials say they will complete the first eco city by two thousand and twenty which will be home to three hundred fifty thousand as u.s. lawmakers squabble for years over who will foot the bill for every high speed rail link bridge or metro expansion rather just adds sure am so we've got th

the u.s. death toll comes under scrutiny in the kinds of reports later today or not he is back since stacy revealed the destructive streak running through the which of them's wall street. political profile of jamie diamond lloyd blankfein goldman morgan this guy daily is that of the arsonist the arsonist likes to burn things down their pyromaniacs here on wall street. maniacs they like to destroy things with debt and they like the price of debt to be as cheap as a pack of matches. if the price of dead is a cheap as a pack of matches as it is now they can continue to burn things down to destroy the economy like they're doing at this very moment and what is the obama administration doing they are giving the pyromaniacs and the arsonist more starting fluid more lighter fluid more matches whatever they need to destroy the economy so you have to ask the question is obama in the pocket of the financial terrorist yes he says. it's been described as israel's big is a huge facility where it's claimed ph

the u.s. in the world's economy and how important the u.s. dollar is as the world's number one currency. >> sarkozy also said the 21st century requires new ideas for the prosperity of people around the world. he suggested reviewing the existing international currency system and looking at ways to stabilize food prices. france wants to debate the current global order that relies on the dollar as the key reserve currency. the u.s. is expected to call on european countries to continue tackling the region's fiscal debt problems. america's so-called big three carmakers are showcasing their latest models in the detroit auto show in a bid to underscore their comeback. the north american international auto show opened to the media on monday. over 50 manufacturers from around the world are taking part. chrysler unveiled a new large sedan highlighting the firm's recovery. general motors introduced a small sedan making the segment of the u.s. market even more competitive. having relisted its stock last fa

the u.s. havei o gone into afghanistan in the>> first place after 9/11?e af >> guest: not militarily. not the way we did. the crimes of 9/11 were horrific crimes. they were crimes against c humanity. but i don't think you solve a crime by war.ime and i think that was as true for a massive crime as for a smallll crime. if we look at those people whose have actually been caught, the leadership peopl e of al-qaeda that have ended up in u.s. custody, that sort of thing,f we're not seeing that they are caught in bombing raids. we're seeing that it's good intelligence that finds them. it means that we need international cooperation. we need the international t criminal court. you know, one of the things ings did -- it was actually one ofdi the fun things in writing these books, i wrote one book right after 9/11 that was, again, designed to help sort of sort out -- >> host: which one was that? >> guest: that was "before and after: u.s. foreign policy on the september 11th crisis." and the goal there w

as the chinese leader visits the u.s. e global powers can define their relations in terms of being partners or rivals with china on the rise american officials are getting nervous about losing the grip of a global affairs but some say there's much the u.s. can learn from china rather than washington simply focusing on losing its role as global top dog killing ford reports i went into burger king with my son and i. think it's a z h e. z z z h u z h u and recognize the that is chinese per cent american and the word china elicits fear recognizing china's rise means recognizing america's decline and now we are getting. our toys and our things that are a little happy meals which should be banned there so dangerous. not just our toys in the bag made in china but the image and everything else but culture coming from china. for others china elicits feelings of inferiority according to the pew research center forty seven percent of americans think china is the world's leading economic power only thirty one percent think america. th

the u.s. economy picked up steam in the fourth quarter of last year, although not as much as analysts had expected. the gross domestic product, the broadest view of the strength and size of the american economy, rose 3.2% on an annualized basis. consumer spending was the strongest it has been in more than four years. for all of 2010, the economy grew at 2.9%, the biggest gain since 2005. the markets hit some big numbers this week. on wednesday, the dow touching the 12,000 mark for the first time since june of 2008. then on thursday, the s&p 500 hit 1300 for the first time since august of 2008. but on friday the markets came down. the federal reserve's open market committee met this week and left interest rates unchanged. it also said that the economic recovery was strengthening, and that it would continue its $600 billion bond buying program. it's been a busy earning season among dow components. mcdonald's fell short of expectations, hurt by higher commodities prices. verizon was in line as was

operations but also making clear that the u.s. will have a strong commitment to afghanistan over the long term that it will not be leaving the region like it did in the early ninety's after the soviets departed ok dan what do you think about that i mean you know we keep going back to all the woes of pakistan and lease it currently and it goes all the way back to the american occupation of afghanistan kashmir was thrown in here too but if the effective end of the occupation of afghanistan would be a net positive for everybody in the region would you agree or disagree with that statement i think it's a matter of the wind. that will eventually you know dictate what happens next and. the thing is i kind of agree with what lisa was saying earlier about the pox on security interests and of the united states need to be in tune and my point is that pakistan has done more than what it has been asked for or what has been required in the past ten years but pakistan's legitimate security concerns have not been addressed and that includes the i

what the u.s. is sitting on. never been a chinese government on the eyes and has a very very low so and so i think a lot of the preconception about china and also. wrong and of western media or poor taste quite a biased show on those economies. are not justified you know michael it's interesting i mean again just looking at the western mainstream media you know in about the visit of the chinese president i mean in looking back at the the mid-term elections i mean blame china and blame these people blame everybody americans just love to blame everybody else but they don't want to look at inside and look at themselves and to see what they have done wrong every country makes mistakes and hopefully countries have the ability to learn from their mistakes is the united states doing that because as this trip is about to happen i just see again all that really does and people who simply have no idea what they're talking about. here's the problem that's being missed every economy since the stone age has been a planned econ

and the u.s. and i know that you guys wrote out a statement for the british government do you have anything to say for the u.s. government now that you know they're working together on this one. the moment i can't speak for the whole of anonymous but we do not have a current us government press release it might change so we just say keep your eyes peeled on the internet but how do you take these actions from the us government searching our excuse me executing forty search warrants all in one day across the us we're taking it quite well we're trying to support we're trying to find out who it is we're trying to support people. it is a pain. again we're not worried that they're going to touch all of us. hold them so my connection is give me to shoot. are you still with me you could keep talking so we can see if we can still hear you. i think that we may have lost our anonymous representative please tell me if you're still with us and her connection is better. i think that we that we may have lost him

now the u.s. investment firm general atlantic has acquired up to twenty percent of russia's leading antivirus provide a cuss pesci the deal is estimated at around two hundred twenty five million dollars the new co no could advice because of its i.p.o. plan within the next five years says its head. it may also help a company to expand to the u.s. market where it's not widely known. and gas problem and the chinese national petroleum corporation are closer to agreeing on gas deliveries to china arse's gas giant said it was ready to begin constructing the tipline in the middle of two thousand and eleven they line will link western siberia with china and is estimated to cost fourteen billion dollars by two sides signed a memorandum and june two thousand and nine to cooperate in the natural gas sector . and russia's biggest mining company nor could make a new offer to rule in a shed buyout it's happened so says familiar with the situation say the terms of the purchase could be less favorable this time ma

the u.s. can cooperate on the korean peninsula issues. china stepping up activity in the east china sea including waters near japan will also be a focus of the talks. >>> south korean president, lee myung-bak, says he will step up security following north korea's shelling of a south korean island in november. he also said the south is ready to increase economic cooperation if the north is willing to work toward denuclearization. lee made the comments in a televised new year's speech on monday. >> translator: any military aggression would be met with stern and strong responses. we have to deter the north from acting provocatively. >> he urged the north to end its military adventurism. >> translator: the door is still open for dialogue. if the north shows sincerity, we are willing to give it more economic help together with the international community. >> president lee has taken a hard line toward the north since the artillery attack on yeonpyeong island. he's apparently changing his stance becau

the u.s. and china. >> a live view from the north lawn of the white house. we're inside, president obama hosting a state dinner, the third of his presidency. the guest of honor is hu jintao, president of china. guests include chinese americans, cabinet members, and a number of entertainers. they greeted president hu at the north entrance and then went to a reception on the top floor of the white house. this caps a day of ceremony and protocol in business relations between the u.s. and china. tomorrow, hu jintao travels to capitol hill to meet with congressional leaders. we should point out, three of the top four members of congress are no-shows. harry reed, john boehner, and mcconnell are not in attendance. nancy pelosi, however, is. we're joined in the studio by the senior director of asia and thanks for being with us. steve yates, the president of the counsel here in washington dc serving in the bush cheney administration for security affairs in the first term of the administration. thank you

he's been extradited to the u.s. for alleged steals she believes his case is simply a propaganda piece of interview to all the it's all i want size dot com. financial and an online yoga law also classes the eggs consonance drugs on how to retain in their piece and shake off the stress of the big city. the e.u. part of it is the balance to impose sanctions against about a russian leadership in response to a rigged presidential election there last month they'll include not only these restrictions for officials but also economic sanctions including a free the international monetary fund they call me just ahead of the inauguration of the country's president who wrongly elections and made numerous violations in a brutal plunk down and thousands of protest rallies all that only the same code dubbed europe's last dictator has long been coming under fire from oppression it's all the opposition. who should not who is from the mosque a state university of international relations the leader shoko respond in the aggregate both th

from the committee to protect journalists says if julian assange is prosecuted in the u.s. it could have huge consequences for the freedom of the press worldwide. the first amendment of the constitution. guarantees press freedom in the united states and the espionage act has generally has never been and there's never been a successful prosecution of a journalist or anyone for disseminating information and so the notion that somebody could be prosecuted for disseminating information under the espionage act in our view would open the door for subsequent prosecutions potentially of journalists and we in the protection of journalists in this country currently enjoy should they decide to pursue criminal charges under the espionage it will be applied expert territorially in other words outside the united states so potentially journalists around the world who report on or publish information about classified activities of the u.s. government might feel that they too could be subject to prosecution that was joel simon from the u.s. based group the committee to protect journalists po

i practiced law in south africa before moving to the u.s. n march of this year i was faced with a choice. i could stay in the united states with might call-year-old daughter in a shared custody arrangement or i would have to leave her behind to go into exile with my same-sex spouse and our four-year old. our nightmare involves navigating the complex immigration system to keep our family together. had we not been of the same sex, we would have not had any problems. after receiving help from senator feinstein, i led the drive to introduced private bill 867. when my advocacy became public, scores of bi-national couples began contacting me for help. not a day goes1/ request. i testified before the california state assembly, judiciary committee, and provided written testimony to senator leahy for the uniting of american families act. the irc, in making their recommendations to the mayor and board of a supervisors, to improve and enhance the quality of life into the participation of all the grim immigrants in the city and county of san francisco mu

the u.s. is accused of protecting a home with the i agent to vent in the america for deadly terror attacks this new goes on trial over immigration reform plus. a breakthrough in the rescue mission to retrieve the shit star of russia's far east place with the icebreaker is now close to retrieving the final show. a very warm welcome to you this is our team coming to you live from moscow with me allies have heard the wiki leaks founder has briefly appeared in a long been caught as he continues his battle against extradition julian our son launches want to be in sweden to face sex crime allegations which he claims have been fabricated in order to eventually prosecute him all espionage challenges in the u.s. . it is keeping a close on developments it was essentially what they call a case management hearing today which is when they set the date for the main hearing and just check that all the evidence is in course of being prepared in a timely fashion we do know know when the full extradition extra t

how does the u.s. government treat small businesses when it comes to immigrants and non- immigrants setting up businesses? i can only speak to my own to tradition on this but i have heard countless episodes of others in the same predicament. eight years ago, i was in scotland running my production company which provides video production and graphic designs for a wide range of clients, both corporate and non- corporate, from start up to the united nations. in 2007, we started a u.s. office to start a u.s. presence. my company only has two full employees but we use a lot of contract employees or events and projects. our total payable has amounted to over $1 million and all profits have been reinvested in the u.s., nothing sent back to the uk. here is my experience with emigrations -- immigration's. 2002, they issued a visa. 2003, successfully renewed in the u.s. be given eight months to prove our viability. thanks to my attorney for her experience and patience. 2005, the says are renewed successfully. bu

that the gun rather than to boot is set to make his first u.s. court appearance for a pretrial hearing he faces charges of conspiring to kill americans and supplying weapons to terrorists buthe maintains his innocence the media continues to call him the merchant of death and it's a sea change in imports. for one three. true to form hollywood and most of us love a great villain in the film lord of war nicolas cage please have your was officials celebrate his arrest the so-called merchant of death is now a federal inmate who is this merchant of death and why is he getting all of this attention with. the us over the course of eight years cultivated this image of an evil mastermind apparently they have no other problems nowadays there is only victor boot there is no osama bin ladin no al qaida no problems in afghanistan no problems in iraq there is only victor boot the evil man is a russian cargo dealing businessman chased by the u.s. for a decade upon the request of america he was arrested in thailand two years ago after thai courts twice found him n

and the u.s. investment firm general atlantica has acquired up to twenty percent of russia's leading anti-virus provider kaspersky the deal is estimated at around two hundred twenty five million dollars the new color could advise kaspersky on its i.p.o. plans within the next five years says its head. it may also help the company to expand to the u.s. market where it's not widely known. and that's all the business news for this hour but you can always find more stories on our website that's our. business thanks for watching. repairing a broken nation. highway construction and humanitarian aid. but as shady officials market the spoils of war it's the people who pay the price. profiteering here is no longer just down to drug trafficking. afghanistan and the dollars. to. download the official anti application on the phone oh i pod touch from the i choose ops to. life on the go.

the plat amendment was imposed following the u.s. occupation of cuba after the spanish american war in one thousand nine hundred three was extracted from the then cuban government under under threat under duress and in clear contravention of international laws like the vienna convention the u.s. government threatened to continue its occupation of cuba unless cuban authorities agreed to lease the land for america's military base indefinitely or for as long as it paid the cubans early runs after the cuban revolution swept the island nation in one nine hundred sixty it's revolutionary leader fidel castro cashed only one check and he insists it was an accident no checks have been cashed sense and protest no such he would ever be signed today knows the treaty signed today would never be internationally recognized the united states. will hunt down. and punish those responsible after nine eleven the bush administration swiftly turned its military base into a detention facility declassified documents show the u.s. government used cuban soil t

to get the u.s. omy back on track the federal reserve created another quantitative easing policy last autumn. in this "global economy" series we focus on the united states. nhk world's david savina reports from new york. >> reporter: the new york stock exchange opened the year on an upbeat note while the dow jones industrial average posted three-year highs two times in its opening week. >> well, it's supposed to be the year of the rabbit, and this is a pretty good -- pretty good start. you're seeing money coming into the marketplace that had been at rest somewhere else. >> reporter: one driving force behind the rise is retail sales. americans have been buying more. according to the international council of shopping centers, 2010's holiday sales were up, with the season posting the strongest sales since 2006. the strong sales have carried over into 2011. this ski resort has 10% more customers compared to the same time last year. some say it indicates americans have more money available for recreation.

but wiki leaks founder julian assange could end up facing the death penalty in the u.s. if he's extradited to sweden but that's the fear of his lawyers according to legal papers released on tuesday the attorney said if assigned went to sweden it would be easier for washington to extradite him to the u.s. washington wants to prosecute him for espionage relating to the release of classified government documents and claims the sex assault charges against him in the scandinavian country are politically motivated and one european politician told r.t. the case is becoming over politicized. i'm sure there's lots of political maneuvering inside the powers that be a very difficult position the americans want to get their hands on a sign which the authorities now think the game's up people can see what the european arrest warrants are about we don't want so my guess is our car know what they're going to do but i'm fairly confident that they're going to come up with come some kind of cynical fix that will allow him either to go back to australia or possibly to go back momentarily to

the economic crisis in the u.s. is full of many businesses to the millions unemployed but find out how government workers in washington have managed to flourish during the recession. and welcome to. this new role playing community has its tyrants and invites guests to build their own identity. you can find out more in our story and stories on our web site. world news in brief this hour police in tunisia have been engaged in a gun battle near the interior ministry in the center of the country with reports saying two gunmen have been killed while writing is crucial political tools over the formation of a unity government after weeks of violence force the former president from office and to flee the country comes a day after the speaker of parliament was sworn in as interim leader. president ben ali fled to saudi arabia and expected. six hundred people have now been confirmed dead flooding and landslides across. a military doctors are also taking part in the rescue operations to. continue for several days already. decla

may be less than popular in the u.s. after the gulf of mexico oil spill but it's still doing big business elsewhere the british based oil giant has secured a multi-billion dollar contract with russia's rosneft the two companies have agreed to explore and extract the vast untapped natural resources of the arctic artie's lore and it reports. it's a deal that both parties a calling a groundbreaking strategic global alliance russia's biggest oil company rosneft has signed swap deal with b.p. it's the first major equity linked partnership between a national and international oil company when it's done in five percent of b.p. in exchange for a nine and a half percent share in the russian oil major ross next chairman deputy prime minister told r.t. it's the beginning of a new direction for the company. is working on a new strategy aimed at transforming the company into an international energy holding our deal with b.p. is of course part of the strategy they've gained a great deal of experience including the gulf of mexico oil sp

the past. guest: he called a u.s.-led global currency product that is a thing of the past. the u.s. dollar, the policy of the fed, printing money -- all of which china feels they want to pull over to their shores to stoke inflation. it is true, but i think that china is exaggerating to put the u.s. on the defensive. the real problem is not the u.s., but chinese military policy. that is a stick that china can use to be up the u.s. had little bit. and they will do that. host: this is from "usa today." inflation could help u.s. exports? guest: absolutely. if you have inflation in china, the goods automatically become more expensive. it does the job for you. re-evaluation by 3%, putting in inflation and doubling that. host: let's talk about the deal that you brought up between general electric and china. guest: the core of the design is that general lecture will transfer technology to china as part of a joint venture to build their own plant in china. this is a very sensitive thing to be announcing on a trip by the chinese president to the u.s. -- chinese president to the u.s.. complaine

but the u.s. gets -- because it's the reserve currency, because it's the strongest country in the world and the largest economy, it's given some latitude to be able to go and borrow more for a longer period because of the expectation it will come around. >> this is a topic of great debate, but what is the risk of t china holding so much of our foreign debt? >> that's a very good question. there are i suppose economic implications and then political implications of this. the political implications are being tied to one country, certainly, a large country with a big force in the world. that's something that you just have to assess how's that affecting diplomacy? how's that affecting all the decisions of the government outside of economics? and it's never a perfect pa parallel but if you look at the u.s. dependency on oil and you can see how the u.s. dependency on saudi arabia and on middle east countries may have affected foreign policy over the past four decades and that's certainly played a part. y

in the u.s. the dow jones of the nasdaq are both up close to half a percent bank of america is up marginally despite reporting a two point two four billion dollars fourth quarter loss google inc is up over one and a half percent after it quotes. rise and fourth quarter profit to two point five four billion dollars. and in europe stocks are trading mostly higher led by the banking sector topping the footsie is royal bank of scotland that's gaining over six and a half percent on news that it might exit the government's bad asset protection plan and astra zeneca jobs often hears them over its blood thinning drugs meanwhile trading the british airways shares has been suspended with the announcement of the airline's merger with spain's iberia. and russia bourses closed trading up on the day the r.t.s. and my stocks were both up close to one percent lukoil was up over one and two thirty percent of the most just over two percent but bucking the trend was gas prom shouting point fourteen percent. and russ