>> the main issue here as far as we are concerned, the united states economy is concerned is that theen is kept at an artificially low level. >> what does that do to us? >> what that means is their exports are more competitive and our exports are less competitive in china. what that means to us is that we have fewer jobs. we have nufactured at home. that's not the only reason, by the way, we why are having trouble. >> there's a business over to china to produce. that's a big return on their money. >> that's not the only reason. the other reason is that the chinese -- look, just to pick one example. we were the first company to manufacture computers. there are million and a half of them who work in asia. we lost the ability -- just a minute. that has nothing to do with the yen. >> i want to know the conversation that took place about the president, which was written up in friday's "new york times" very well and i notice he got it. and put it on the front page. >> obama is saying -- >> he is saying look, you have to let your currency float and rise up in value because you are sucking ou

the u.s. economy is a black hole of debt and disaster he said there's nothing we can't print money we can't buy more dollars then the dollar is that the economy of the united states is crashing yes remarkable over the past couple interstates you herbert you've seen this unwinding of different currencies as part of the unwinding of the carry trade whether it's the japanese yen the reason the so strong is in part due to the unwinding of the japanese yen carry trade the same thing for the swiss franc when you have zero interest rates here's the key when you have zero interest rates like you do all over the world it doesn't spur g.d.p. growth it's spurs speculation and you're talking about speculation committed by the most. irresponsible bankers in the history of the world who often make mistakes and then go to government put a gun to their head as paulson did in the end of two thousand and eight and say give us three quarters of a trillion dollars or we're going to blow your head off and that was his message well zero percent interest rates also discourages capital formation which one needs for capitalism to function because if you can't save where are you going to

but 79% of the public this summer agreed with the statement, the united states economy is in a recession. >> even though economists may say that the recession officially ended last year, obviously for the millions of people who are still out of work it's still very real for them. >> reporter: at a cnbc town hall meeting the president was confronted by frustrated supporters. >> i'm exhausted. i'm exhausted of defending you, defending your administration, defending the mantle of change that i voted for. and deeply disappointed with where we are right now. >> my goal here is not to try to convince you that everything's where it needs to be, it's not. but we're moving in the right direction. >> reporter: several economic indicators are moving in the right direction. but not the key one. unemployment. >> for the average american, none of this matters are. not until we create enough jobs to bring down unemployment. >> reporter: whether the recession has ended or not, when it comes to the voting booths often perception trumps all else. >>> the head of the utah national guard is apologizing for

the economy has stabilized since that month. the value of goods and services produced has increased, but unemployment has continued to go up. in a recent poll, 79% of the public agreed that the "united state economy is in a recession now." and many americans -- many supporters -- express concern about what they've heard from the president about solutions. >> i think he has lost some of the ability to connect during the campaign. >> i think he was shocked at the intensity of the republican opposition, and i think that it disoriented him for a while. >> reporter: the president was asked today if he thought those who didn't think he "got it" felt that way because of his racial heritage. >> when the unemployment rate is still high and people are having a tough time, it doesn't matter if i was green. it doesn't matter if i was purple. >> reporter: and, diane, the president was also asked if he could work with members of the tea party, if they get elected to congress. he said he thought their healthy skepticism was a good thing but the challenge for the tea party movement is to identify specifically what they want to do. diane. >> all right, jake. on that front, it was another big weekend for t

the united states but that's where you see the only sector actually that has some good prospects in the united states apart from that run really they're optimistic and again you know we see the other economies as much better but one other question just a follow up to two peter i just wonder if you go to boston university peter if i may ask you that. no i didn't i've taught there but i didn't go to boston university but i went to mit and mit is responsible for an awful lot of new jobs a lot of innovation you know the world wide web came from tim berners lee is a professor at mit so i mean i think that person what we are missing is so they have the owner of the undergraduate class at mit today is not u.s. born what percentage of the undergraduate i'm sorry gentlemen i don't know you know i think he's just been here i mean the last week a group there was a big con fab of economists in italy and i think it's an annual event here and there was a lot of pessimism in many of them walked away from this comment saying one in one in three is one in three chance will be a double dip but some of the really bigger names were saying that they were more certain of that and that we keep hearing the same to

economy has stabilized since that month. value of goods and services proud has increased. but unemployment has continued to go up. in a recent poll 79 percent of the public agreed that the united statesn a recession now. and many americans, many supporters express concern about what they have heard from the president about solutions. >> i think he has lost some of the ability to connect that had he during the campaign. >> i think he was shocked at the intensity of the republican opposition. i think that it the disoriented him for awhile. >>reporter: the president was asked today if he thought those who didn't think he got it felt that way because of his racial heritage. >> when the unemployment rate is still high and people having a tough time it doesn't matter if i was green. doesn't matter if i was purple. >>reporter: the president was also asked if he could work with tea party candidate. he said he thought the healthy skepticism was good thing but still waiting for the tea party machlt to describe specifically what they wanted to do. this is abc news the white house. >>> newspaper in mexico is taking a desperate step asking drug cartel to stop killing its reporters. 2 photographer

. >> is the united states economy about to implode? you won't like senator judd gregg's answer. hes go on the record. plus the alleged crime of the century is there any evidence? we are talking about seat belt gate. [ tires screech ] [ enne rving ] [ drums playing ] [ male announcer ] 306 horsepower. race-inspired paddle shifters and f sport-tuned suspension. all available on t new 2011 lexus is. it isn't real performance, unless it's wielded with precision. seeour lexus dear. ♪ i like your messy hair ♪ i like the clothes you wear ♪ i like the way you sing ♪ and when you dance with me ♪ you always make me smile [ male announcer ] we believe you're at your best when you can relax and be yoursf. and at thousands of newly refreshed holiday inn hotels, you always can. holiday inn. stay you. and now stay rewarded with a sweet dilemma. up to five free nights at any of our properties or double points. . >> greta: earlier senator mccain went back on the record. nice see you -- nice to see you. more fun to win isn't it? >> i've done both. i prefer winning. >> big news in delaware. strupbe

. >> is the united states economy about to implode? you won't like senator judd gregg's answer. hes go on the record. plus the alleged crime of the century is there any evidence? we are talking about seat belt gate. words alone aren't enough. our job is to listen and find ways to help workers who lost their jobs to the spill. i'm iris cross. we'll keep restoring the jobs, tourist beaches, and businesses impacted by the spill. we've paid over $400 million in claims and set up a $20 billion independently-run claims fund. i was born in new orleans. my family still lives here. i'm gonna be here until we make this right. we could've gone a more traditional route... ... but it wouldn't have been nearly as memorable. ♪ . >> greta: earlier senator mccain went back on the record. nice see you -- nice to see you. more fun to win isn't it? >> i've done both. i prefer winning. >> big news in delaware. strupbed? seems like a lot of republicans are stun -- are you stunned? seems like a lot of republicans are stunned by the news. >> i don't know stunned. certainly surprised. mike castle had won

the united states troubled economy has proven resistant to his efforts. to many americans, it does not feel like the recession has ended. he was seen as one of the main architects of president obama's economic policy. now he will be returning to his academic career at harvard university. in a statement, president obama said he would grateful that he was willing to leave the economic team. the departure of larry summers does look like a blow for the president. he is the third member of the economic team to go in a matter of months. the budget director, peter orszag, stepped down in july. christina romer went earlier this month. the highest profile remaining member of the team is treasury secretary geithner. some are asking if he will be the fall guy. >> joining me now is our economics editor. why do you think larry summers is gone? >> many people thought he would go by the end of this year. if he did not, he would have to reapply for his place as a professor at harvard. there's the much desired tenure at harvard. it seems clear that he did ask the president

i want that in the united states here in phoenix to help us with the economy. that brings me to the third point and that is the notion of dynamic talent is a tricky concept in the united states. we don't know in modern economies what helps an economy continue to grow and to remain strong and to prosper as it inknow vates, particularly as the economy and the culture and the society becomes relatively well off. it is a known phenomena that it is hard for individuals who are relatively well off to take outsized risk and put everything on the line. back to my original story, if you think about the swimmers in the contest, in order for the united states to prosper, we need lots of swimmers who are willing to get in the water and willing to get in the water and swim and save nothing for the

the economy has stabilized since that month. the value of goods and services produced has increased. but unemployment has continued to go up. in a recent poll, 79% of the public agreed that the united statesconomy is in a recession now. and many americans, many supporters, expressed concern about what they've heard from the president about solutions. the president was asked if he thought those who didn't think he got it felt that way because of his racial heritage. >> when the unemployment rate is still high and people are having a tough time, it doesn't matter if i was green. it doesn't matter if i was purple. >> reporter: the president was also asked if he could work with tea party candidates. he said he thought their healthy skepticism was a good thing but he was waiting for the tea party movement to describe specifically what they wanted to do. jake tapper, abc news, the white house. >>> and of course, one flash point of president obama's administration has been health care reform. in just two days major parts of that new law will go into effect. here's what's happening. your insurance company can no longer cancel coverage for the sick or put a cap on lifetime benefits. children can s

the international monetary fund is warning the global economy is likely to slow dahlan in the coming months and let's have concerns over some national economies as well as the united statesproperty market the i.m.f. recommends that emerging economies should focus on stimulating internal demand conversely it suggests that advanced economies increase their exports sent to cut.

serious debt problem we have in the united states, because it is absolutely, i believe unsustainable, and it is going to threaten the very future of the united states economy. and when you threaten the future of the united states economy you threaten the future of the constitutional republic. so mr. chairman, i know i didn't have any questions but this is important to talk about, and so critical for us as senators appear and members of the house, senators and the white house to be working on this as we go forward. >> thank the senator. senator sanders. >> thank you very much, mr. chairman and mr. lew for joining us my good friend, mr. ensign, i'm glad my republican friends are concerned but let us remind some of us in the voting for the war iraq and iraq that $3 trillion wasn't paid for. not me, not many others. some of us voted for huge tax breaks for the rich. many hundreds of billions of dollars which added to part of the problem of how under bush we almost doubled the national debt. some of us voted for it, some of us didn't. some of us voted for the medicare part of the prescription drug program written by the insurance companies that was not paid for

thanks very much for that fred. >>> with the united states' economy down in the dumps, why is the united states' government now loaning money to other countries? >>> and pope benedict lands in london it is an historic visit for the catholic church and the people of england and it is causing some major controversy. >>> you're "the situation room" a new study reveals a disturbing data about the rising use of illegal drugs in america. jeanne meserve is investigating. >>> candidates running for political office, some recruited from the streets, now some democrats allege they are part of a major gop sham. i'm wolf blitzer. you're "the situation room." >>> the closer we get to election day the more president obama is talking about unemployment. today, he is zeroing in on jobs and products made in america. but critics say there's a flaw in his strategy that could actually put americans to out of work. brian todd has been looking into that for us. what have you been finding out? >> we note pressure the president is under to create more jobs, he is looking for ways to do that one of the key ideas

the international monetary fund is warning the global economy is likely to slow down in the coming months analysts have concerns over some national economies as well as the united states property market i.m.f. recommends that emerging economies should focus on stimulating internal to money conversely it suggests that advanced economies increase their exports and cut budget deficits. a jump in food prices in russia is triggering inflation while this summer's drought is sparking fears about food shortages the government's promising to watch food prices closely to count them if necessary but large retailers say they have a better way to tie downs as found out. in august alone prices and dairy products grew by about two percent sugar rose three percent and bread five produces stand accused of holding back supplies in the hope of bigger profits but retailers claim they can help push prices back down to large retail chains can be a serious break for inflation because they are a real price indicator our chain had a one percent inflation this august compared with the last year and there was a time when the prices on certain goods went up the way we are fighting against price

the second issue is that sanctions really are unimportant to us because we have been under sanctions for over 30 years. furthermore, our economy is not based on the economy of the united states. it is self-contained economy. indigenous-based economy because we are able to provide for our own needs. interestingly, in the years of sanctions that have been imposed on us, we have also had more incentive to engage in activities that jump start and trigger our economy and we've been quite successful. we know here in the united states, many are very concerned -- many have made a lot of noise over the sanctions and have even identified people in iran, sympathize with views here that sanctions harm iran. really, that's no concern to us. on the ground sanctions have, in fact, encouraged us to be firmer in the pursuit of our economic goals. the united states government has had no relations with us. has had known for over 30 years. so what is it they are sanctioning? we have lived without the united states for over 30 years. and we have advanced when iran was under the yoke of the united states, it was a backward country. since we started living without the united states, we have become

the right, they will tell you we need to stimulate the economy. the only person we hear saying destimulate the economy is the president of the united states. economically insane. >> cheryl: the fear is you raise taxes no matter who you do it on, top 2% or middle class or anybody, we have a down economy and it's the worst time to raise tax on anyone. >> i agree with that but even the top 2% have no less rights than the struggling homeowner. i don't care if it's a small businessman. the playboy sipping his don perion and partying all day long, he earns that money. not made on the back of the poor, not made through the stimulus or redistribution or the president's other favorite tools here. the president seems to assume that the rich, the top 2% are guilty and his job as commander in chief to pass -- >> i don't think it costs. i don't think it will cost the government anything to keep the rates the way they are. you will be stimulating the economy. and that helps bring in tax rates. >> cheryl: that is the thing. we argue that -- >> it could bring money in. increase revenue. not cost anything. actually, a good thing to keep rates down. money co

united states who can't manage it's own financial affairs. >> the weakness is firsthand the growth of brazil, for example, as agrege economy. i will say biggest threat for the united states is not that we come in to north america, it's becoming the new america in the global economy. which we have to be competitive, we have to be innovative. we have to be aggressive and we have to be fearless in terms of going after the international -- >> but -- wait, what's the prescription for that. because, for example, when people can outsource 40 or $600 a week job get it done in india for $a week not going to cut american wages even with immigration. [all talking at once] >> one at a time and it's me right now. how can we possibly compete when all our manufacturing for economic reasons has to be exported? >> it's simple. let's go bay back to detroit since you brought it to the detroit. what happened to detroit. auto industry lost their creativity. and they got themselves in to a political and economic model that was not innovative was putting that down new energy. what happened, brazil and china did not caught up with it. >> further ge

is a more valuable ally for russia the united states or the european union the united states remains the world's preeminent power. by far the world's largest economy if russia is serious about turning to the e.u. and the us. for help in modernization for a partner in modernization the choice is not really very hard choice the u.s. with silicon valley has been much more innovative the us economy is much larger so that wall rhetorically it's easier for russian leaders in my view to say we need a partnership with the we want to have even be only in partnership not realistic i mean the the road to where russia needs to go leads through washington that's not very popular to say in moscow but to me it's reality to be sure of what iran's nuclear program is now by fall the whole to stop it on the international news a chant on iran's fast nuclear power plant in bush era went live and oldest do you think u.s. suspicions about iran's possible development of the atomic weapons are justified in my view us suspicions are justified there is a consensus among the u.s. european union and the international atomic energy agency that iran has been taking steps and pr

the united states. on the central rights of american politics we are fiscal conservatives because we believe particularly for an economy like the united kingdom you have to show you can pay your way in the world. we also believe that you need to see a private sector recovery. and that in the end, that is going to be a sustainable source of growth. not deficit funded public expenditure in perpetuity. and if you look at what happened in the united kingdom over the last ten years, it became rather unbalanced. there are parts of this country where sadly we did not see enough private sector job creation. for example. for every ten private sector jobs created in the south of england where we are doing this, only one was created in the north of england. now that is not a sustainable position going forward. and of course one of the problems. united kingdom was that we were building up this budget deficit not in the middle of a banking crisis and recession but actually before that in the good years. and i used to borrow a phrase from john f. kennedy, and tell people at the time to fix the roof is when the sun is shining. and we

everyone are going to expire, we need to remember that these were the tax cuts that were going to unleash the economy in the united states. we were going to have all this growth because of the bush tax cuts. cut taxes for the wealthy. explosion among developers. explosion among the economy, we're going to have, you know, low unemployment and everything el. where did it end? the absolute collapse of the united states economy. what we're saying is not only tax cuts for the wealthiest in the country, but tax cuts to offshore work. incentives for business, offshore work out of the country. tax cuts for the wealthiest, offshore work do, a prescription drug plan you don't pay for, borrow money from the chinese to run two wars. this is the bush doctrine. privatize social security and medicare, bush doctrine. we're saying don't privatize social security and medicare. let's invest back into these programs. let's give tax cuts to the middle class, let's give tax cuts to businesses who will locate and create jobs in the united states, let's get a manufacturing policy in the united states, that we can have auto industry, steel indus

the world needs stimulus. >> well, first of all, each country has to make its own decisions about its own economy. and that is the unites states has an advantage we don't which it has got the world reserve currency and at the moment, our military, a number of people are there, we want to buy dollars. the british chancellor of the exchequer doesn't have that advantage. and we also, of course, have in many reckoning a higher budget deficit than the united states. each country is different and needs to make its own judgements. but i would say this about stimulus. what i think is the most stimulating thing you can deliver for an economy is low-interest rates. are low-interest rates. >> and not just bank rates but rates set by the federal reserve or the bank of england but the real rate, the market rates that businesses and households can go and get. and in the course of this year in britain, the real interest rate have fallen by 1 percentage point. they stand at 3% now. britain's market interest rate. and that is a hugely stimulating thing for the british economy, and i think we have not put in place a figures call plan we would n

and the international monetary fund is warning the global economy is likely to slow down in the coming months and let's have concerns over some national economies as well as the united states property market the i.m.f. recommends that russian economists should focus on student internal demand inversely it suggests that advice to condom is increase their exports and cut but should deficit. well that's all we have time for an hour join us next hour from when i get more stories for web site r.t. dot com slash business.

serious debt problem we have in the united states, becaus it is absolutely, i believe unsustainable, and it is going to threaten the very uture of the united states economyfuture of the united states ecoomy you threaten the future of the constitutional republic. so mr. chairman, i know i didn't have any questions but this is important to talk about, and so critical for us as senors appear and members of the house, senators and the white house to be working on this as we go forward. >> thank the senator. senator sanders. >> thank you very much, mr. chairman and mr. lew for joining us my good friend, mr. ensign, i'm glad my republican friends are concerned but let us remind some of us in the voting for the war iraq and iraq that $3 trillion wasn't paid for. not me, not many others. some of us voted for huge tax breaks for the rich. many hundreds of billions of dollars which added to part of the problem of how under bush we almost doubled the national debt. some of us voted for it, some of us didn't. some of us voted for the medicare part of the prescription drug program written by the insurance companies that was not paid for. some of those voted for it an

the united states. and it looks like a global economy in which developing economies such as china and brazil do much better than developed countries such as the united states and englandnd those countries in euroland. so there is a distinction to be drawn going forward not only in terms of the slower growth for developed countries, but for the orientation towards higher growth in developing markets. >> so how do you invest based on that? >> well, i think you invest for growth. that's always been the key to investing, not only from the equity standpoint, but from the long standpoint. so you look towards those countries with relatively high real interest rates on the bond side that would be countries like brazil and canada and australia, and you look for countries not to own that have relatively low interest rates, and that would be japan and yes, perhaps the united states. >> so we shouldn't then have expectations that we're going to see real growth in the united states or are there policies or things to be done to get growth moving again? do we need more government stimulus, for example? >> well, i think w

the first and only bubble our economy has seen. government into many instances has been using a device by corporations to pass favorable laws that benefits each industry respectively. can the united states economy and tax base sustain the negligent behavior of some lawmakers who did not fully understand the economic consequences of the laws they pass and may be unaware of the law's effects on local communities resulting in economic disaster? >> the answer is, yes it can. it has in the past, and it will atgain. i have long said, and i am not in politics in that sense at all, but here is my point. i have found that the elected body usually does with the american people want. i have heard over and over again how low the legislative bodies are held in a group by the american people, but how highly they regard their local congressman or senator. if we all say, i want the deficit dealt with. i want this a dead addressed. and i want to be fair -- i want the debt addressed, except for me,. i can name some city after subsidy, which at the time, maker of sense, but it costs. there is no free lunch. we need to decide how we will proceed. we do pay-go without exception. will we get a 10-year plan t