and kohl always has eyes on eventually a united germany, and that was a vision reagan shared. so they -- they had that pretty much in common, and kohl, on the night-i mention this in the book. on the night that germany was formally unified, kohl called bush, and said, i've just come back from berlin, and there were -- 100,000 people celebrating on the very spot where president reagan called on gorbachev to open the brandenburg brigade. on that very night he thought back to the reagan speech. yes? >> the -- [ inaudible ] the crack in the wall during the berlin airlift and its failure to keep things -- frozen? >> yeah. the question is about the role of harry truman and the berlin airlift, and absolutely, i -- the first chapter of the book is a sort of brief history of berlin and the dispute over berlin that unfolds after world war ii. and, yes. if you remember that the city had been divided into -- into four sectors. the western powers ended up fusing their sectors, and introducing a new currency. the easterns refused to -- or the soviets refused to allow that currency to be used

throughout the decade of the euro, the germany's unit labor costs not taking into account east germany was 7%, it rose only by 7%. in italy it was 30%, in spain it was 35%, and in greece it was 42% unit labor costs. that's almost where the problem begins and ends, and so? >> jacob, how much diversity can we get under the fiscal compact and is this a transfer union we're talking about? >> i think eventually it will have to -- will you get there but i think there is a very important distinction that i would make, which is, and whatever the european fiscal union would look like will be very different from that of the united states because the euro area in almost any conceivable shape or form that i can conceive of, and i'm very optimistic, remember, that will not have a sizeable federal budget like in the united states and the reason is actually quite simple, it has to do with people's self-identities, because the fact that europeans continue to self-identify as french, germans, belgians -- maybe not belgians actually -- [ laughter ] but the point is that you will only accept to be taxed

and among the people who told that story was helmut kohl who became the first chancellor of the united germanyfter the wall went down in 1989. but americans were sending over shiploads of candy. it was being collected at fire houses all over the country because of what gale halverson had done. and he thought he was going to get in trouble for doing it. actually. >> the british, we should probably say something quickly about the british, they were also very much involved in the airlift. they couldn't drop candy because britain was still under, was still living under austerity terms and rationing of food. so they didn't have the candy. >> there were times during the airlift where we kept upping the amount as we could get more stuff into the calories. at one point it got to 2200 calories per person that we were bringing in. that was more than the british were giving themselves. the airlift, by the way, was a british idea. when all of the americans said you can't do this, it was a british air marshal named next wade who sat up -- rex wade who sat up all night with a slide rule, and 4500 tons was w

democracy but the eurozone itself of course is under threat and all we seeing politicians uniting together in germany playing a major part in that we know that germans germany's politicians they're known for being extremely frugal and conservative with taxpayers' money they wouldn't waste cash on projects they thought wouldn't work and something needs to work for us because germany will be affected of all the others. well i don't know why. german politicians are doing what they're doing i think the only thing they try to do is to not to not to be responsible for consequences and doing the other way around saying they do not dare to. put consequences on everybody and so they try to spending germany taxpayers' money to have a fear it and as we all know this cannot work because even germany is not is just not able to pay for all off the debts of europe you could understand what the german taxpayers are for happy and i understand that much of your support of course does come from the public the taxpayers there recently you talked about a million letters being addressed your politicians against the bailou

it is also the economic growth rate for the united states, france, germany. so it's considered an indicator of economic growth. so between 1960 and '95, there were 30 low income country that is achieved 2.2% economic growth rates. between 1995 and now, the number has doubled to 73. 73 countries having 2.2% growth rate. so again, we've seen some significant growth in development. so the biggest question, though, is is our foreign assistance a portion. most wisely, are we using it to the greatest e nekt? and are we investing in those country that is we should be investing? i think we've learned from history that aid to corrupt states where there are not leadership that cares about their people or invest in their people, that aid to those countries has not been in general. we've also seen investment to people who do adjust that have strong and accountable leaders has been more successful. so in my opinion, one of the greatest indicators is the places where we invest and the leadership in which we invest. there has been global changing contests in terms of some o

and the future may look brighter than many people think in the united states and germany. breakout "breakout nations" is a reminder that understanding the process is which intelligent people can disagree and the development cannot be understood by taking a debt any karattic approach. all the more reason we should be skeptical of grand schemes coming out of the of the agencies or other sources claiming to have the answers to the world's i diverse set of nations. fortunately he doesn't suffer from mess begannic approach. he offers rules of the road which is very universal in the book. let me introduce you to him and arrow you to -- allow you to judge how sound his evaluations are. he is the head of global emerging markets and global marco at morgan stanley. he is a column nist at news week and writes for "the wall street journal" and other leading newspapers around the world. he is the regular contributor to the economic times in india and has been writing financial columns since the early 1990's. please help me welcome him. [applause] thank you very much. it's a pleasure to

germany's criminal police agency has been instructed to investigate these latest allegations. he admits that mistakes were made, but he says that his agency is not to blame. >> we should have created a unitoted to monitoring germany's right wing seen earlier. that is what i meant when i said the security agencies have failed. >> thursday's five-hour hearing centered around the federal criminal agencies mistakes. he said he did not agree with their findings. the committee members were perplexed. >> 10 murders, two bomb attacks, and 14 bank robberies going and all, i think we can conclude that something is not working. i would like to put it so bluntly that he has lost touch with reality. >> the difficult questions are said to continue next week when the head of the german office for the protection of the constitution sets for the committee. >> much more to come here on dw's "journal." we are going to look at how eurozone's new rescue fund is actually meant to work. >> and we're going to look a direction from the german team after their defeat yesterday and what the german coaches said. stick around. ♪ >> unimpeded access to education and knowledge and the same opportunities for everyone.

chinese solar companies have exploited their equipment to germany, the united states, and elsewhere for years. the chinese wind turbine and other clean tech investors have remained confined to the domestic market. in coming months, we anticipate chinese power companies and banks developing and clean energy problems abroad. not only in the united states but in europe and in emerging markets, particularly in latin america. at the same time, american and european clean companies continue to sell their products and technology to china and partner with chinese companies as they go overseas. the trade flow and clean energy between the united states and china only increase in the future and it will be a two-way street. however, unlike the break neck pace, it's been slow and cautious, a trickle and not a flood. thank you for your time and attention. i welcome your comments questions and comments. >> thank you very much. mr. wolff, go right ahead. >> thank you, mr. chairman, murkowski, members of the committee. your hearing today on china and clean energy is both timely and important. china is o

the future may look brighter than many people think in the united states and germany. breakout nation is a reminder that understanding the development process requires a lot of judgment about which intelligent people can disagree and that development cannot be understood by taking a technocratic approach. all the more reason why we should be skeptical of grand schemes coming out of aid agencies are other sources claiming to have the answers to the world's very diverse set of nations. fortunately, he does not suffer from a messianic approach. he offers rules of the road, which i think are very useful. let me introduce you to him and allow you to judge for yourself how sound his evaluations are. the head of global emerging markets and of global macro at morgan stanley investment management. he is a columnist at newsweek and writes for publications like the wall street journal and other leading newspapers around the world. he is a regular contributor to the economic times in india and has been writing financial columns since the early 1990's. please help me balkan. [appla

let me read a couple figures from the article. >> germany's unit labor cost taking into it -- not takingnto account east germany was 7%. it'll it was 30% and in spanish with 35%. 42% increase, the unit labor cost -- 42% in greece. that is almost with the problem begins and ends. cosumnes diversity can we get under the compact? >> eventually you will get there, but i think there's a very important distinction i would make. whatever the unions look like will be very different from that of the united states. the euro zone in almost any conceivable shape or form that i can conceive of will not have a sizeable federal budget like in the united states. the reason is simple. it has to do with people's self identity. because europeans continuously self-identified as french, german, belgian -- or maybe not belgians, actually. [laughter] but the point is you will only accept being taxed at a level in which yourselfidentif -- you self identify. the willingness of americans to pay federal income tax is much higher than the willingness of europeans to pay taxes. the public sectors in europe are large

talks with the united states, britain, france, germany, russia, and china are expected to be difficult. >>> the australian government says it will lift economic sanctions against myanmar to support the country's democracy movement. australian foreign minister bob carr made the announcement in myanmar after meeting with president thein sein and opposition leader aung san suu kyi. carr welcomed the democracy process under way in the country and stressed the need to speed it up. he said the government will lift sanctions against myanmar within a few weeks. this will remove bans on financial transactions and travel restrictions on military personnel. carr also said australia will double its annual aid to almost $100 million u.s. dollars by 2015. funds sent to myanmar will be used mainly in the areas of education, medicine, law, and social support systems. >>> afghan karzai is condemning an air strike carried out by nato on wednesday. he says innocent civilians became victims. karzai is devoting his full attention to the situation, cutting short an official visit to beijing. patchari raksaw

artificial consumption and they did it by reducing taxes for the richest people in the united states afterwards in germany and everywhere in europe they did it to give to middle class to its credit cards. three four five credit cards the system existed to enlarge the artificial consumption and they did finally to also give to people. predatory loaning loans to sell them houses they knew were very good that these people never could. pay them back and the problem of the banking in the banking crisis of two thousand and eight was that. small banks disappeared in the bigger banks state and we have to program that school to fail syndrome and it is this too big to fail reasoning that's holding everybody hostage the economies of europe hostage and even holding politicians in their heads now at what point will this reasoning be not enough anymore you can't anymore say it's simply too big to fail so in order to change things i think there will be a need to question from from from the from from the basic we need popular movements are we we are going to in my opinion to or europe or to a very large number of social

germany. the. united states. what we see. now twenty one minutes nearly in. some international news. eighteen dozens in northwest pakistan the vehicle was near the city of peshawar when the bomb hidden inside it exploded the blast was the act of militancy in the region despite a significant drop in violence over the past year no group has yet said it's behind the attack. fled from a jail in northern afghanistan officials say they have recaptured sixteen of them with the launch. of detonating the explosives which destroyed. the. three. japan's prime minister said the two nuclear reactors in active since the fukushima disaster must be restarted he added that the move will help to protect the country's economy the pm insisted all safety measures in the event of another earthquake or tsunami. all fifty of japan's. nuclear crisis hit the. last year. the u.n. nuclear watchdog held talks with iran over its controversial nuclear program the agency wants to get greater access to the country's military sites that are suspected of carrying out atomic tests iran insists its program is for peacef

exit from crisis in the portrait given the into account the positions of small crowds and units where you were germany and my question to mr putin how the in the going to difficult situation if you were a zone will ever pay to be in the supplies of energy if it goes to europe or will arise sure it will be forced to correct this budget due to the fall in their oil prices thank you very much they were pretty good. a let me begin so that my colleagues will have time to be immigrating as you do nobody knows that you can make situation in europe and facts correctly with the economy of the russian federation anywhere close in the interconnected as i already a man should. use the tory for the last year when it was worth three hundred four billion dollars in two thousand and ten it was sure it was put off with impunity because it. was a flurry sixty billion dollars so they'll do girls that is quite significant of course she eve to make this situation in europe will lead to recession to the few that will shrink the economy and the volume of incomes go to consumption of produce from russia is spent you spend. p

reich until 1941, pearl harbor and the last americans in germany before they are exchanged before the american diplomats and journalists in the united states. you don't have much of a sense of how much of an attraction germany was to americans. and it was an attraction for all sorts of reasons. of course it was a defeated, humiliated country. two million german soldiers had died in world war i. the economy was in complete free fall. we all know the stories of hyperinflation, the wheelbarrow stories, for instance. one of the stories that really, though, got me in reading up on this was the story of the classical woman with a whe wheelbarrow of money which is now almost worthless. she comes in front of his store, thinks i'm going to duck in here and see if there's anything to buy with this wheelbarrow full of money. she darts in, darts out, finds that the wheelbarrow is gone but the money is on the pavement. and it is -- yeah, it seems like, you know, a parody. but this was for real. and there was also this political extremism of right and left. all sorts of extremists. there were literally fights in the streets of berlin that are one

depression-level slump, you have still not even returned to your 2007 levels of gdp, whereas the united states and germanyurpassed those. so that, in fact, your recovery is not that dramatic after all. what would you say to that? >> my first objection was simply the cherry picking of data. anyone who has studied statistical methodology knows that where you put your graph and your axes can make anything look big or small. secondly, i think there's a fundamental mistake here made with cause and effect. we had a slump as a result of the september 15th, 2008 collapse of lehman in which, being outside of the eurozone and having no european central bank funds to access, we just had a -- lost our liquidity, so the government lost all its revenue or a large part of its revenue. so there was not much else to do but cut costs. >> would you argue, though, that you represent a kind of viable strategy? >> well, we're one example. but again, i would argue, also, we didn't have much choice. but it is true that on the one hand cutting dramatically our expenses, we cut the budget ultimately by 9% of gdp which affected eve

germany? and the united states? most of the reaction was that we were a little bit too belligerent, that we had maybe taken some steps to undermine gorbachev and his efforts at glasnost andpayer strikea, that we were on tender soil, but it fit in very much with the ronald reagan of the evil empire on the one hand, and on the other hand let's hold out some hope. if you look at the whole speech, it is one of hope and liberalization and trust and encouragement and standing together in this fight against totalitarianism. this is not supposed to, and wasn't what we thought a provocative speech but rather one that held out an olive branch. if you truly want liberalization, if you're truly serious, it's not just gestures. it's meaningful change. then the one thing that you can do is come here to this wall. tear down this wall. >> it's interesting that the line appeared in the middle of the speech, and it was a long speech actually. it was a very lengthy speech. >> well, if -- you can't roll the tape again obviously, but if

germany. >> oh. >> i wondered if you addressed the question of w hitler declared war on the united states after pearl harbor. after all, germany did not attack us? if they remained neutral, we might not have landed in normandy, might be a totally different planet than we have now. >> this gets to the question of rationality of hitler and irrationality of hitler. escially invading the soviet a. union. here, think about it. he fails. his first plan is to invade with operation sea lion and take england. anat fails. the way to demonstrate his strength is to take on the soviet union, and he throws his army in that direction and is so confident he does so even without offering them winter uniforms figuring the victory was going to be so quick. we all know what happened. when that is beginning to already run into trouble.

that's rich people moving their money to the uk or the united states or germany.f we see people lining up to take money out of banks then everything is off the table. all of the decisions get moved forward. it will be up to the people of greece for what to do with their money. >> if the bank runs intensify are we talking spanish bank runs? are we talking italian bank runs? how far can this thing go? i assume that's why the central banks are pouring in liquidity. i further assume the federal reserve is swapping more and more dollars into the european central bank because the demand for dollars will be huge. my question is, is there going to be a contagion in terms of a run on banks in southern europe? >> that's the fear, larry. if people see greece leave the euro do they question the sanctity of the euro itself? right now we see people moving their money into german banks but what if the euro isn't safe and they move into u.s. dollars or the uk. that's why there is so much concern. let's be frank. greece is a small country. 11 million people. the situation is heart

the united states, canada, australia, britain, france, germany and other nations have earlier announced they were expelling syrian diplomats. >>> 300 u.n. observers have been monitoring the cease-fire. shery ahn spoke with nhk. >> they monitored the cease-fire. they don't carry weapons and they are not authorized to use force. so that limits their ability to bring an end to the violence. the situation seems to get worse every day. the city seems tob heading toward a full-fledged civil war, unfortunately. >> the international community has been quite divided over what to do with the situation there. what's it doing now? >> the u.n. security council severely condemned the killing of more than 100 syrians in houla. the leaders of the u.s., germany, france and italy met afterwards in the emergency video conference. they agreed on the need for peaceful transition of power in syria. the former u.n. chief kofi annan said if that plan fails, western leaders may have to look at other options. >> we've been reporting on how the russians and chinese feel about intervening. what support is there fo

always a good thing and when the permanent members of the security council the united nations security council plus germany sit down at the negotiating table with iran if there's no prep work that's done in advance of those negotiations then it essentially becomes a process that's tantamount to having a kitchen full of cooks and nobody has a spoon so laying the groundwork and taking care of some of the technical political aspects in advance increases the likelihood for already difficult diplomatic process to be more successful than it would be otherwise while the united states is spearheading a western effort to embargo if not outright reduce iranian oil exports and imports there are a host of other conflicts going on in the region there is economic instability in europe but there is also to ensure that countries like saudi arabia who have swing capacity. when it comes to producing energy increase their output and maximizing the output that's been increasing in libya places like iraq and things like that getting countries off aronian oil oftentimes requires them to have a different refining process for dif

have started unless there would have been somebody else in the game stronger than france, germany and the united states that protected each against the other and guaranteed each security against each other. once the security problem is solved we can go on to build europe. second point, i agree with the point that europe has to be part of the solution. but you know what we have heard from the two other debaters, you have heard them restate and restate what is desirable. it should be. that's why i will defend europe. it should go on and climb. said how it shall be done and can be done given that we talk about 27 nation states. so let me stick with a metaphor for a moment. one could climb the cliff but the problem is we need somebody who leads and somebody who follows. the problem with europe is most of us are much better at saying no and nobody wants to accept anybody as a leader to rule the roost and to rule the rest. if you look at it that way then you necessarily become more modest in what europe should and cannot do. there is no bismarck to pommel and beat the rest. thank god for that, by the

the bureau was created to be the united states in business. germany is trying to take over the world. the credit militarily. when greece looks at who is buying out all their debt, germany is doing very nicely. but you may only end up with germany. i really feel that it is very possible that with respect to europe, if it gets weaker and weaker, which is probably happening, that is a positive thing for the united states. in a statement about europe, they talked about other countries that were taken advantage of. i am here because i love this country. i would much prefer, as much as i love north carolina -- i would not mind being home, playing with baron trump. but this is so important to me. these are political pundits, but i tend to agree with them. i have heard numerous times by a very smart people, some of whom i can respect, most of whom i do not respect, is who wins north carolina wins the election. in other words in other words, you are in a very important position, and you can bring it home. i hear the polls are very uncertain. most people do not

it's because the united states wants to exercise had germany in the asia pacific when it says it's pivoting towards asia which president obama announced in australia in january that should be considered a dangerous thing for asia the united states invaded the philippines in one thousand nine hundred in one thousand eight hundred it invaded the asian part of russia to stop the russian revolution during world war two it's what most of the war in asia then it went to korea vietnam the united states is for many many battles in asia so a pivot towards asia should be considered something of great alarm for the people of the continent china is seeking to defend itself it does not have a global ambitions with its military unlike the united states which has a thousand military bases located in one hundred thirty countries china is basically concerned with its own economic development of course as a major power but they see the united states plans their pivot towards asia something very threatening. and late in the program the waiting that became a funeral nato forces in afghanistan like use a feelin

if you take the union -- the unit labor costs from 1999 to today, germany is still hovering around the00 starting point. chris is at 143. not in real terms about 100 dirty, but they have 30% higher unit costs in germany and italy is also much higher. so the question is, if they devalued, of course they could catch a the unit labor costs or increase which is very difficult thing to achieve it now, can you overcome that by lending more money and increasing the end generate more growth, or does it need a restructuring of the economy is structurally and so on to increase the competitiveness. they have to do that first before they can have a rio stimulating program. they have a listening situation that the gdp is going up instead of down. if that stays very days and i would go down by 17% in the last three years. debt to gdp customers. so that is mathematically correct, but it makes you more competitive over time and i have to say exports and other numbers are showing a direct direction increase and therefore you can say if they continue

always a good thing and when the permanent members of the security council the united nations security council plus germany sit down of the negotiation table with iran if there's no prep work that's done in advance of those negotiations then it essentially becomes a process that's tantamount to having a kitchen full of cooks and nobody has a spoon so laying the groundwork and taking care of some of the technical political aspects in advance increases the likelihood for already difficult diplomatic process to be more successful than it would be otherwise bring in leader mahmoud ahmadinejad is set to step down later this year what does that mean for the ongoing talks to resolve the nuclear issue. i think president ahmadinejad has over the duration of his presidency maybe lost some of the influence of some of the power that folks thought he had and that perhaps he really did have towards the beginning and middle of his presidency you know there's been a more centralized control a more centralized power that's been put into ayatollah ali hall in the iran supreme leader particularly since june of two thousand a