well, they had a currency called the sigh here that was about 3 or 4 to 1 to the united states dollar. within a short period of time, it went to 40,000 to 1. and everybody lost their money. their money was worthless. it was absolutely worth lez. and so that means that your savings in dollars are worth lez. and -- are worthless. and the dollar, i can't see the dollar being anything except weak. so how do you protect surhe when you figure that's the scenario, how do you get out of dollars, but i like commodities, and things like that. somebody else? >> another question. go ahead. both of you. >> one thing i very much appreciate about you, you can make the relatively complex very easy to understand, so thanks for doing that. that's what i would like you to address. two things, first of all, dealing with china. what is the significance of the chinese having so much of our debt? in other words, what happens if they say, we're no longer going to buy your debt anymore, how would that affect it other than increasing the rate? in addition, secondly, again, primarily dealing with china, what is

united states. >> a strong dollar is in the interest of the united states.ply believe that, and our intention is that we put the policy in place to sustain the economy of the united states. >> as the chinese talk about alternatives, as the russians talk about it, it seems to be pointing in that direction. >> i don't worry about it because look at the responses in the world they go through at this time. when people are most concerned about risk, generally they want to be in the most liquid, safest market in the world, which is still the market for treasury bills. i think you see that consistently over a period of time, and wemt to make sure we can sustain that basic response. >> you told us about things that have caused this problem or the backdrop for it. part of the solution has to be that we spend less, we consume less. but also the chinese need to save less. that is, the policies of the chinese government that actually make it difficult for chinese government to consume more has also changed. have you made any head way to get the chinese to stimulate prod

with hundreds of billions of dollars of united states pack taxpayer dollars invested since 2001, and more to come, it is critical that we continue to strengthen our oversight of contracting in these areas. before i begin my remarks i just want to address a procedural issue for the benefit of subcommittee members and public. we did have an arrangement with the commission earlier on that we would have the report released to us and not by the president and to the evening of this hearing. that didn't occur and i apologize to the members on that. we wanted to give the members an opportunity to be prepared to ask questions of the committee and to work on that. so we're going to find out what happened there and do that. i still suspect that members have had an opportunity to prepare themselves, notwithstanding. the united states relies on contractors has reached unprecedented levels over the last eight years. reaching upwards of a quarter of a million contractors on the ground in iraq and afghanistan from the department of defense alone. that doesn't even include those that have been workin

united states. >> it is my pleasure to say it. a strong dollar is in the interest of the united states. of course, i deeply believe that and my commitment is that the world and the american people make sure that we are putting in place the poll says that can sustain confidence in this economy and this financial system. >> you don't worry that the dollar is going to weaken as a result of the currency of the world as the chinese talk about -- wondering if there are some alternatives, as the russians talk about it? the arrows seem to be pointing in that direction. >> i actually don't worry about that. because look at the responses in the world they go through at this time. when people are most concerned about risk, generally they want to be invested in the most liquid, safest market in the world, which is still the market for our treasury bills. i think you see that consistently over a period of time, and we want to make sure we can sustain that basic response. >> you talked about the global imbalance of the problem, or at least part of the backdrop

and the burden is on the united states to always make sure the united states' dollar provides the best locale for that investment. i think both sides have wisely kept that out of day to day politics or day to day political issues. it wouldn't help either country's economy to politicize china's investment strategy. >> this week the dialogue becomes more political. we are seeing the secretary of state, hillary clinton, side by side with tim geithner. how does that change the dynamics in terms of talking about all these issues? >> yeah. i think here's the central point. i participated in the first three of these that took place under the bush administration, when hank paulson was treasury secretary. here's the central point. these are two great powers that need to define their relationship. we cannot have sino-american relations solely on trade issues. other incidences come up. we can't have that to be the sole basis for discussion. it makes sense for american leadership and chinese leadership to remu matteview ma general and push that agenda ahead. global economic growth is in that categ

the counter to that is a weak dollar is negative from the opposite, if we're seeing money come into the united statest can be a little more difficult. a strong dollar, on the other hand, that creates the opposite scenario where you're going to have outside goods coming in more. the balance between the two is a little difficult to translate into a situation like this but the best scenario now, we're in a weak dollar scenario, good for multinationals, we'll see a lot more exports, our trade deficit will narrow and that can actually be beneficial to u.s. companies if those are in your portfolio it can give you a little edge. >> have you thought about teaching? >> i have a little bit before. >> get back in there. professor of economics. the best dollar explains i've ever heard. >>> here's megan. >> thank you. we're moving as you know -- well, moving, as you know, always frustrating. if you weigh 600 pounds? how is it done? >>> if you're going to a long way on your trip with your kids you may want to look into buying satellite tv for your car. we'll explain. >>> but first, here's a look at the latest busi

united states -- host: secretary of state. caller: she was supported by george soros. he spent millions and millions of dollars to support her reelection. i hope the american people realize he is a socialist progress of communist. he wants the united states turned around and upside down and run by a socialist government. host: this is the front page of "the hartford courant." this official testified yesterday in front of a senate ethics committee. new york city on the democrats line. caller: thank you for c-span. it came to me, the name of a flat health care, like the flat tax. host: how does that work?

this is the united states of america trade dollar that was minted back in 1877. and it has -- according to what i've been able to find on this, it is fairly valuable, actually very valuable, about 1500 and up. >> reporter: investigators say jerome and tina heran hit so many homes, that they apparently can't remember where they pilfered the world war ii era currency. and no one has reported it stolen. the only thing certain is that it did them little good in financing their prescription pill and subsequent heroin habits, which police say was the motive for the burglaries. >> like painkillers or something. that's what i figure. nothing really much really. went past everything value like the tv, like the flat screen tvs, and everything else in here. >> reporter: investigators have already tied the coupe toll more than a dozen burglaries, and that the owners of this unique money surface, they could add one more victim to the list. in carroll county, jeff hager, abc 2 news. >> now if you recognize the currency, you're asked to call the westminster state police bare ra

united states continue to stay prosperous and developed. we are committed to a better and more economic and technical cooperation with the united states. our bilateral trade is now 300 billion u.s. dollarsill probably reach 3 trillion u.s. dollars in the future. we will not have the arms race with the united states. what is on top of our agenda to let our tim point-- are 1.3 chinese people have a better life, better clothes and better living conditions, we will not-- we are not willing to spend lots and lots of money on military expense, so i think the united states and the whole world should know clearly of china's strategic intention. it is predictable, transparent and well intended. the united states can deal with china and make friends with china reassured and we should not lose any sleep over china. you can completely rest assured. maybe someone is still not reassured. i am always truthful and sincere. itm sincerely committed to the basic policy of the chinese government that it is seeking a lasting, sound and steady relationship with the united states. my predecessors, the older generation, also took part in this great cause then i heard a lot from him about the importance of chin

we have run out of money in the united states and they are operating on chinese dollars now. host: this is video from a few minutes ago. to detroit, this is hank, an independent. caller: i studied the president's proposal and all the other proposals. i looked at the tactics that these ultra right wing business on wall street and business people have. it is the same old thing. i think we need to get behind this president. he is sincere. he has the qualified people around him. he is doing the right thing. he is asking for our help. host: we remind all callers to give you 30 days between calls. wal-mart endorsed the idea of using large companies to offer insurance to their employees. this is omaha, next, at all on our democrat line. caller: the president is doing a magnificent. -- a magnificent job. why do not they address the subject of the hospital's charging such exorbitant prices for our madison got mad -- are madison got a hospital. -- our medicine got a hospital. host: what were you an awful for? caller: -- what were you in the hospital for? caller: i was in for blood pres

constitutes a vital security interest of the united states, and, therefore, we should be investing tens of thousands of soldiers and many billions of dollars to try to remake it. i question that assumption. frankly, i think afghanistan is of marginal interest to the united states. >> let's get started. >>> i welcome rwandan president, paul kagame. thanks so much for joining us. >> thank you. >> many look at what's happening in rwanda as a miracle. 15 years ago, you had this extraordinary, horrific genocide, and now rwanda is one of the most stable countries in africa. what i'm most struck by is that you have done this with a very strange kind of process. why was it important not to punish the killers? >> first of all, there are many killers, hundreds of thousands because of the genocide that took place in our country yielded a huge percentage as far as those who were killing. and if you went to try each one of them, then you would have trouble bringing people back together. that's why we had to say, let's look at the masterminds of this genocide, the people behind it. i think it is about the biggest responsibility in this. so they had to p

more broadly, if you don't create an alternative to the dollar you will remain dependent on what the united states, being the country of the dollar is doing and that was in the time of triffin in the 60's and still so today. >> thank you. >> first question we will settle in private. [laughter] >> thank you for attending today's discussion and supporting the chicago tribune's commitment to literacy. a book signing will take place in the arts room. as you exit this room to your left is the first room on your left. >> i want to say thanks for the outstanding questions. thank you. [applause] [inaudible conversations] >>> johan speed is the author of the chicago school. the stock was part of the 25th anniversary chicago treen printers row let fest. for more information visit chicagotribune.com/entertainment s/events/printersrow/. >>> we are at the 2009 bouck exfil america at the javits center in new york city at the booth of blooms. walker, the family of books and i am here with peter miller. what do you have coming elkus all? >> the most ambitious and exciting book is the one over my shoulder which is

constitutes a vital security interest of the united states, and, therefore, we should be investing tens of thousands of soldiers and many billions of dollars to try to remake it. i question that assumption. frankly, i think afghanistan is of marginal interest to the united states. >> let's get started. >>> and now i welcome rwandan president, paul kagame. mr. president, thanks so much for joining us. >> thank you. >> many look at what's happening in rwanda as a miracle. 15 years ago, you had this extraordinary, horrific genocide, and now rwanda is one of the most stable countries in africa. but what i'm most struck by is that you have done this with a very strange kind of process. why was it important not to punish the killers? >> we -- first of all, there are many killers. as you said, there are hundreds of thousands because of the genocide that took place in our country yielded a huge percentage, both in terms of those that were killed as well as those who were killed. and if you went to try each one of them, then you would have trouble bringing people back together. that's why we had to say, let's categorize their responsibilities, let'

it adds over a trillion dollars potentially to the debt of the united states. a trillion dollars. and, thirdly, he said nobody should lose their health care if they wanted to keep health insurance. this bill doesn't make that -- doesn't reach that issue either. in fact, people will lose their insurance and not only that, but lose their job according to the study, small business will be massively impacted by this and a lot of jobs will be lost in america. there are ways we can accomplish what the president wants to do. i have proposals. senator coburn and senator byrd has specific proposals where we can cover all americans, where we can bend the costs of health care and make sure that americans who like their health insurance get to keep their health insurance. it's regrettable we were not allowed to be at the table when this bill was drafted so we could have gotten those ideas into the bill and equally regrettable when we offered amendments which in many instances addressing the issues which the president has raised as his primary concerns as they failed because they came from our

. >>> medicare fraud costs the united states billions of dollars each year. a nationwide investigation resulted in 32 arrests in 4 states, including texas. that's where our cnn affiliate khou picks up the story from houston. >> reporter: it wasn't the type of delivery that medical supply store executives and doctors were expecting. in fact, boxes were being hauled out. not in. at memorial medical supply. as federal, state, and local investigators raided this store. at the same time, the same scenario was playing out at 11 other locations across the greater houston area. investigators were gathering evidence of medicare fraud at several local businesses. that cost us taxpayers nearly $16 million. it was all part of a four-state crackdown that extended from houston to louisiana, from boston to new york. indictments that came down last week also led to the arrests of 26 of the 32 doctors and health care professionals who were charged with medicare offenses, including billing for medical supplies patients didn't need, and in some cases didn' e

just trying to grasp the situation between the united states and china and how it works. the value when of the dollar -- why is china continue to buy treasurys in the united states? guest: elwell, that is a very good question. the chinese have asked the same thing and that is probably something we will talk about more as the program goes on beard -- goes on. as you take a large amount of foreign reserves, they have the largest in the world, and you ask where are my going to put this money where it is very liquid -- that means, i can buy or sell $10 billion in 20 minutes and not change the market, and where overtime over a long period of time, the value has been quite stable, you end up with the u.s. dollar. now, there are alternatives. there is the hero and european bond, but that is much smaller. there is the japanese yen. again, you can't deal in these very large amounts but then you run out, down to the swiss franc and the canadian dollar and australian dollar, and that is about it. the result is, they might be a little bit unhappy about the u.s. dollar having such a prominent, but there is no alt

in that franchise this is the sixth film as we mentioned these are billion dollar defense taking collectively in the united states as well as worldwide. this has been an absolute guarantee moneymaking machine with five previous ones process and how to address 75 domestically 900 million worldwide is gonna be passing and spawned. and the next couple of weeks passing going by $5 billion so it's been tremendous for them. this is do they take a look at the top film franchise this is in the united states is up there stunt was is up there this is the sixth here report from a one put on top of all those. at the same time getting good reviews and that's going to be too big blockbuster success also a mother will review the movie which is much smaller coming out this is and i rack warm monday he would know what talking about this thing called a hurt locker. it's really the two extremes in the marketplace one absolute guarantee the other one very risky. iraq's star with the movies this summer this is one of the worst summer is for independent movies in many years. away we go with 7 million koppell has now forced to in its g

united states continue to stay prosperous and develop. we're committed to better and more economic and technical cooperation with united states. our bilateral trade is now 300 billion u.s. dollarsnd it will probably reach 3 trillion u.s. dollars in the future. we will not have arms race with the united states on top of your agenda a 1.3 chinese people have better lives and better clothes and have better living conditions. we will not -- we are not willing to spend lots and lots of money on military expense, but i think the united states and the whole world should know clearly of china's strategic intention. it is predictable, while intended, the united states can deal with china and make friends with china, reassured and we should not lose any sleep over china. you can completely rest assured. maybe some are still not reassured. i'm always truthful and sincere. i am sincerely committed to the basic policy of the chinese government that is seeking the lasting sound and steady relationship within the united states. my predecessors, the older generation, also took part in this great cause and i heard a lot from him about the importance of a sound explanation. how do we continue an

the administration is committed to protecting the value of the dollar and maintaining investor confidence here in the united statesd several major airlines are expected to post losses when they report their earnings this week. hotel revenue not expected to show much improvement in the second quarter either. as a result airfare wars and room rate promotions normally aimed at vacationers are promoted for corporate travel. what does it mean to you? now might be the time to get out of town. that's the latest in business news. >>> 5:14. from business to health news -- we know that cutting calories can help people look and feel better. this week results of a 20-year study found that extreme calorie cutting can also help you live longer. take a look. >> reporter: the pictures say it all. on the left a hag guard balding monday. on the right a youthful one, both the same age. the difference, the more fit monkey fed a third less for his entire life. the 20-year study found monkeys not on the diet were three times more likely to die of age-related causes. >> if you look at the rates of cancer, diabetes, heart disease, the di

dollar. why are they talking about strs, alternative currencies, the answer is they are trying to signal the united states, don't go there. don't inflate the dollar. inflation of the dollar is a wealth transfer from china to the united states. they are not going to stand for that. last time we did that in the '60s and 70s's, we took it from japan. we took it from japan to u.s. they stood for it, took it because we're the nuclear umbrella. china is not going to stand for it. that's what they are signaling. >> doesn't sound like we're doing anything to assuage their concerns if you listen to laura tyson say we need another stimulus. >> how can weaken the dollar, using zero interest rates, i'm sure there will be other ideas. >> jim, when you say china is not going to stand for weakening the dollar, what do you mean? stop buying treasuries, stop selling them? what are they doing to do. >> not stop buying or selling. when it matures, treasury sebds sends you the money. you don't have to take anything. have you a reinvestment decision, you go by a one-year, six month. you have just as many treasuries, you haven

and an empty 320 to the united states after having repaired in all salvador, and maintained an issue of dollars and cents. let me go back to a moment ago on icing. i pulled the transcript, the co-pilot has said i have never seen icing conditions, i have never deiced. i don't want to have to experience that, i have never thought i am going to crash. the actual transcript is of a co-pilot that has had minimum training icing conditions. the training issue has been on the table. what kind of training does someone have in the cockpit to fly in the conditions, if they're flying to buffalo, new york, one would expect you would encounter icing conditions of some sort. come from the state of north dakota. i have been on small airplanes with a lot of buildup on the wings. i have flown in a lot of ice with pilots and others. how much training exists, this specific condition they're likely to encounter. i want to ask about this issue of time in an airplane. in the buffalo crash, that carrier had training that train their pilots, if that is the case, the first question on my mind, if you have a device calle

hope the department of defense will deal with some of these issues with the united states government is using taxpayer dollars to train its future timothy mcvey's. he got his training in the united states army. >> do you think that the obama administration should establish an office of tolerance in the white house and federal agencies like president bush's opposite database initiative? >> and nothing president obama should have an office of acceptance and tolerance because of hate groups. i think that the whole focus of our government on all levels should be acceptance and tolerance. i do not know that a particular cabinet position is necessary because all aspects of the government deal with this subject, whether the department of housing, the justice department. we simply need a focus. we need a national mixed it up today. we have one in the south where be asked students and schools to sit at a different table at lunch. sometimes blacks since it together, white students, jocks, whatever. this is the first time a lot people have a chance to cross the barrier. would be good if president obama would go down int

united states. >> it's by far the biggest crop in california. >> and the united states. >> in terms of dollars. >>ause it cost more. >> that wasn't your documentary. >> i watched it. that's how i know so much. >> i'm like carson, doc, hey, guys -- >> it's not the magic bullet.ñ we're not going to tax pot and balance the budget and everything is cool. >> how about prostitution. >> there we go. >> a special on that. porn, a special on that. >> getting off to -- >> i'm going to stay quiet. >> it's like your not even back. >> more from thomas through the program. >> you have to talk, your name is there. >> if you have any comments or questions, you want to weigh in on issues joe is raising. i'm not in favor of it. he's the one asking about this. if you want to weigh in, e-mail us at squawk@cnbc.com. we've been watching futures. they have been under a little pressure. right now really only talking dow futures down under 25 points below fair value. yesterday the markets ended mixed, dow ended down but came back from a triple digit loss earlier in the day. we'll see where things head throughout this mor

and millions of dollars in bilateral aid fro europe and from the united states are also now off limits es t deposed president is rested to power. there growin unease among hondas' economic estaishment. >> transtor: the economic groups were happy about moonuel zelaya's ouster but they're vy unhappy and worried about ck ofgovernability a the control at the current regime has. they see at the crisis is being prolonged and that there sn't a quk-fix like they though >> reporter: learly, the milary-installed regime ao micalculatesed the repercussions of overthrowing an eleed president but just so much economic prsure that the ternational cmunity can ext without punishing the people ithis country who are he mostulnerable and who had nothinto say about the mitary coup. lucia newman, al jazra. >>> for re on the plitical tuation on honduras and the u.s. roll, we're joed once again by christopher sabbati. senr director of policy at the council of the americ here in new york weome back, chris. >> hanks. >> what the significance of secretary of state hlary clinton's meetg today with president zey?

and millions of dollars in bilateral aid from europe and from the united states are also now off limitsess the deposed president is restored to power. as the crisis enters its second week there is growing unease among honduras' economic establishment. >> translator: the economic groups were happy about manuel zelaya's ouster but they're very unhappy and worried about lack of governability and the control that the current regime has. they see that the crisis is being prolonged and that there wasn't a quick-fix like they thought. >> reporter: clearly, the military-installed regime also miscalculated the repercussions of overthrowing an elected president but there is just so much economic pressure that the international community can exert without punishing the people in this country who are the most vulnerable and who had nothing to say about the military coup. lucia newman, al jazeera, >>> for more on the political situation on honduras and the u.s. role, we're joined once again by christopher sabatini. senior director of policy at the council of the americas here in new york. welcome ba

united states. 1.7 million. and the cost of care today is estimated at 90 billion dollars per year and you don't die of autism. you go old and need care and in some instances 24-7. >> exactly. this is a lifelong condition. when you're born with it, for the most part, vast majority of those people that have autism will have it throughout their life. >> and insurance? >> nothing is covering autism. a very, very small minority that may have medical coverage but for the most part, no. there isn't any and when these children leave the comfort and the entittlement that are provided throughout their school age years and they enter the adult sector, their service pot incased tremendously mainly because there is such a lack of services. a lack of appropriate care, that the only -- the ones that can receive it is at a tremendous cost and it's a tremendous price. and 90% of the cost of treatment and intervention and services for this community are in the adult sector. typically, the adult sector without question, at this point, is inadequate and inappropriate for serving its current population of adults with autism. and

the united states is flat broke. we are trillions of dollars in debt. and now we're going to take on something else that republicans insist could take this country into bankruptcy. and ruin it. that is how they're selling this. how do you combat that? >> well in fact, that's what the president said at the beginning of his term. he walked into office and said our economic house is a mess. there are a lot of things we're going to have to do to solve it. the number one priority is getting this health care bill done for just the reason that you name. people are going into bankruptcy. they're going into bankruptcy because they can't afford the health care that they have. the costs are spiraling out of control. we already put on the table back in february a proposal to get us half way down the road to getting this reform bill taken care of. we're now working with congress to get us the rest of the way. and what the president has said is between the preventative care that we're going to ensure that you have, between ensuring the fact that you are not going to

us agree we must consider carefully how we use taxpayer dollars and don't want to send them overseas when we can use them here in the united states. mr. buyer mentioned we are spending federal tax dollars and putting ourselves in deeper debt. our debt stands at $12 trillion. my amendment will demonstrate a positive step towards fiscal responsibility and also staying in line with what president obama has requested. so with that, i reserve the balance of my time. the chair: the gentlewoman from new york. mrs. lowey: i claim time in opposition and i would like to remind my good friend, mr. stearns, that the peace corps is also a job-creating program. these are our young people who are going abroad to serve our country. so it is also a job creation program for our young people. the peace corps, which is funded at $450 million in this bill has long been one of america's most effective tools in directly reaching citizens of other countries, demonstrating firsthand the best of american values and generating goodwill for our nation around the world. just last year, peace corps volunteers helped train 148,000 teachers, health care workers

. >>> speeding in saudi arabia today, geithner acknowledged the dollar's role, meaning the united statesas a special duty to help spur recovery. gosh darn, it we're trying. he's on a mission this week to reassure gulf arab states that the united states wants their investments and that u.s. dollar, that it is a safe asset. >> we have cit coming up later today. >>> any comments or questions about how we're all 10 years old -- >> they didn't listen to me either. >> really? people are writing. you want some more? >> can't stand -- you were criticizing the obama administration again. >> i criticized the bush administration, too. >> you did. >> i'm an opportunity critic. >> and clinton and reagan got it right. >> kennedy and reagan. >> he said, clinton, reagan and kennedy. >> on the dollar. >>> the address at the bottom of your screen, squawk@cnbc.com. >>> futures are hanging into a tight range as we await goldman numbers around 8:30 eastern time this morning. we'll see if we get any fireworks on that. >>> when we come back, the festivities in st. louis under way for the 2009 all-star game. th

the fact is, you have situations where people go to the united states because they can spend a hundred thousand dollarsnonlife threatening cyst and go to the mayo other canadians ca to the mayo clinic to deal with a nonlife threatening cyst. those are urban legends. the fact is in canada, we get some of the best care in the world, we have some of the best doctors in the world, it is not the government that decides what procedures a particular patient should have. it is the doctors that decide. it is not the hmo that decides based on whether or not it is going to cost them too much. it is the medical doctor that is looking after you decides what needs to be done and that's what happens. >> i appreciate your honesty on this. i really do. i appreciate your making yourself available for so many americans who really want, you know, fair and honest answers about this. and it sounds, after talking to both of you, two certainly competent, intelligent men who know this field, that there are some things about your system that may be we need and there are some things about our system that maybe you need, maybe so

this year, back to the world economic forum in the winter about the way the united states is behaving and they fear that the dollar is going to lose its purchasing power, lose its credibility as anibler national currency and they worry about that one consequence of their export-led strategy was ate cumulation of a vast quantity of dollars in their international reserves. now the chinese are very concerned that the way we are going about our recovery, printing money like fuhr vicious ultimately going to pass the buck to them and the buck will be a devalued, depreciated buck. so i think the marriage is on the rocks because the spend thrift partner is in big trouble and the saving partner, the chinese saying it is time we cut those credit cards up, you've masked out, darling. >> now health care reform, president obama says you have to do it. what do you think? >> on one side, i believe that providing universal health care might be a worthy goal, but the crucial issues, first of all is how you pay for it. this is additional spending over the next ten years. one way to think about financing it, by adding an additional

united states. and moving detainees to prisons in the united states would require a significant investment of restructuring the existing facilities and costing the taxpayers millions of dollars. currently, the united states only has one supermax facility and it's located in florence, colorado. according to the bureau of prisons, as of may 21, only one bed was not filled at supermax. society one plashings if you want to give them maximum security to these people, such as sheikh mohammed, then you better decide heying about to be in that one bed because we don't have the capacity. the rated capacity of the high secured bureau of prison falls is 13 hrk,448. so we are talking about they are already overcrowded and that is not going to happen and despite claims by senator durbin that the super max prisons are ready to receive gitmo detainees the super max prisons are at or above maximum security. f.b.i. director mueller said there is very little real -- very real possible that gitmo detainees will recruit more terrorists from among the federal inmate population and continue the al qaeda operation from inside -- inside the walls of prison. that can't happen at gitmo because they'r

get your dollar fifty coupon at tidestainrelease.com today! >> time for hits and misses. >> the united statesoops out of iraq cities this week turning over to the iraqi police and army. the war is not over, but i think we should express recognition what has happened. this is a testament to george w. bush for figuring out that the petraeus strategy might work there and i think most of all a testament to the american men and women fighting in iraq with uncommon valor no matter whose strategy they've been executing and on this 4th of july, i think to say that they are america's finest is an understatement. we do salute them. >> here, here. >> jason. >> a hit for rudy guiliani, former mayor of new york city, said this week he is considering running for governor and i hope he does it. >> a comeback! >> i very much hope he decide to jump into the race. the state legislature, we know for a long time is dysfunctional, now it's not functioning at all. albany is in need of adult supervision and i think the man who cleaned up new york city might do the same for the state. >> james. >> president obama th

. >>> every year, the united states and many other governments sends many, many billions of dollars in aid to alleviate the desperate parts in poverty. who could argue with that? one of my next guests. i recently spoke to two women in our studios in new york who make strong arguments for and against foreign aid or for two different approaches to foreign aid. take a look and listen. you are originally from zambia. you've written a book called "dead aid" in which she said foreign aid to africa has led to a culture of corruption and dependence that has led to nothing and celebrities haven't helped. also, the founder and ceo of acumen fund which uses highly innovative entrepreneurial approaches in solving worldwide problems. she again her career in banking with chase manhattan bank. and she has a new book out called? >> the "blue sweater." >> "the blue sweater." wonderful book. so reading your book. i'm thinking to myself why are your so angry with these people? you look at somebody like bono. he's spending an enormous amount of time traveling in africa, trying to learn about the condition

united states later today. >> eric: part that have 700 billion dollar bank bailout has gone to help the struggling auto industry, why not use it to help america's small businesses. that accord to go a new white house plan. laura ingle now joins us outside our studio with the latest details on this, what do they plan? what's the plan? >> well, right now, the plan is more of an idea. that's at least what we've been told, perhaps with the small business administration today. and talkling about this idea kicked around with the obama administration how to help out small businesses across the country as we know, times are tough, businesses are struggling and the obama administration and the figuring out ways to help mom ap pop stores across america. the idea that they will be funneled over to f.d.a. one point. and people on the street, a couple of folks are visiting in new york and i didn't get your-- >> evelyn. >> evelyn. what do you think of the idea of tarp funds used for sba loans? >> tarp, it would be nice if they used the tarp and the money got to where it was supposed to go. i think the easier way for them to

he called people in the united states and told them they won an international lottery. victims were told to pay thousands of dollars in fees and taxes to claim their prizes but there was no lottery and victims never received anything. what do you do if your bank denies your mortgage application? according to one new zealand man, you withdraw all the money you have in the bank and then ask for it in small bills. the man said he watched as the teller counted out his entire withdrawal, $9,520 bills. the bank says they rejected the man's application because as an artist he doesn't have a weekly income. >> all righty. 5:27. coming up in our next half-hour of 11 news today -- >> 12 people are hurt when a gunman opened fire at an east baltimore cookout. details are straight ahead. >> our new governor has a very nice family, too. so leave his kids alone. >> former vice presidential nominee sarah palin stepped down as governor of alaska. that's the topic of our "watercooler question of the day." >> and severe storms rolled through the area last night. on h.d. doppler this morning we're still tracking a lot of activity. we h

dollar? >> good news from the united states. like i think a lot of what's driven the u.s.quity markets is the very strong corporate earnings we've had. it's not so much that sales revenue has surprised, it's the fact that corporates have had a good ability to cut costs. ultimately the aggressiveness in which the u.s. corporate sector has slashed labor costs ultimately is a positive when you get to the stage of recovery. if we're at that point in time there is potential for confidence to rise and ultimately for business investment to pick up. for that to fuel recovery at some point over the next 12 months. >> derek, if you look at the charts, we did see on the equities charts the major indices, we moved past resistance and to new levels to the upside. the dollar index f we bring that back up, seems to have held in the 78 range. do you see that support holding? we seem to be range-bound, or do you see us pushing lower? >> as i mentioned, i do think there's better features for the u.s. dollar as we move forward. we have had targets of euro-dollar something in the region of 1.

just trying to grasp the situation betweenhe united states and china and how it works. the value when of the dollar -- why is china continue to buy treasurys in the united states? guest: elwell, that is a very good question. the chinese have asked the same thing and that is probably something we will talk about more as the program goes on beard -- goes on. as you take a large amount of foreign reserves, they have the largest in the world, and you ask where are my going to put this money where it is very liquid -- that means, i can buy or sell $10 billion in 20 minutes and not change the market, and where overtime over a long period of time, the value has been quite stable, you end up with the u.s. dollar. now, there are alternatives. there is the hero and european bond, but that is much smaller. there is the japanese yen. again, you can't deal in these very large amounts but then you run out, down to the swiss franc and the canadian dollar and australian dollar, and that is about it. the result is, they might be a little bit unhappy about the u.s. dollar having such a prominent, but there is no alt

dollar and the treasury? >> in the short run, i'm not. the world's in a recession. the united states will do fine, i think, on a relative basis. so i'm not worried about the size of the deficit right now. in fact, i think it should be actually a little bit bigger as far as the second stimulus package. and the bigger issue is long-term how it projects five to ten years, which is really away from the business cycle. we often make tough choices as a country how we want to treat entitlement spending. i think we need to move in the directioof having more means entitlement spending. that's where the debt is longer term. right now, i think the deficit is big and should be big and should be bigger. >> how are you investing today? >> fine. we've been very public about what we've been doing over the last year. we've been overand at mortgage-backed securities have been leaner. that's a good trade for us. we've been overweight. the senior financials are a bit safe for us. essentially we have been concentrating our investments into sectors that are being supported directly or indirectly by a gove

dollars. the fact of the matter is the united states is broke. we don't have any money.e find money up there. maybe we will find money up there now, if there was that possibility, i would say ok, go get it? >> we don't spend the money on mars. we spend the money back here to hire the most talented people and keep those people trying to take on tough subjects like math, science, engineering so we have the problem-solvers that we need to tackle all of our problems. bill: it's interesting but it's another government big-run program. and, yeah, you will get some jobs out of and it yeah get an industry and nasa will love it but the american taxpayer is going hey, you know, it's you are at the limit now. >> i think we put ourselves over the limit with some the spending we have done this year. the stimulus bill passed this year is over 40 times, bill, the annual nasa budget. i think we ought to collectively invest half a% of the federal budget, which is what the current nasa space funding is on on investment in our computer. by getting ourselves out beyond the space station for

collagen, s and w, and, of course, the mega brand del monte which is a billion and a half dollars in the united stateste canned things are still in your company. >> correct. >> when it comes to the pricing pressure, how are you face that challenge right now? >> well, we only have taken prices over the last five years, we've only taken prices that reflect cost increases. and as a result of this last year where we've seen cost moderate, we've actually not taken any pricing. and we also said whatever inflationary costs we have, we'll take about 3% of our cost to sales out of the business every year to offset inflation. >> in a tough economy, don't you lose business to store brands? >> the del monte brand is a very, very strong brand. i think it provides a very good value for our consumer. the trend that we see is a lot of migration from grocery to value channel. and happily, our products do very well in clubs, walmart, dollar stores, as well as in retail groceries around the country. >> and you're not necessarily dealing with some of those, as you mentioned, higher commodity prices right now. in terms of

united states of america. all you have tdo is pay many thousands of dollars for a package tour, hotel om included and figure out a y to say that the government can't feedts own children but can train them to turn over 100,000 pieces of paper inxact uson. cirque dsoleil has lacked that creepy staistic nionalism u crav this might be for you. it also pays to shop online. you get esurance's "fast 5 (tm) discount" you crave, this might be f you. - thanks, profesr. don't forget the good student discount. and there's even more discounts! it's no "secret" that you can save hundreds withsurance. make it yourmission" to click or esurance today. >>> on the nsa a couple weeks after 9/11, the ve start of october 2001, you were bried on the program a objected. wrote a letter to the nsa saying i'm concn about this waantless spying. the nsa responded to yith a tter and i know -- i printed it out. actually have it becau it's funny. so much was redacted, released absolutely nothing. dear congresswoman, racted, redact, redact -- >> sincereours. exactly. was there someing in that letter that, and i know 's redacted, so yan't say p

there will be a huge hit in the health care reform in the united states and taking confidence from that as the dollar well, the currency markets reflecting that a bit. the dollar is weaker against the euro and the pound, christine. >> ross, here in asia, some of the markets are giving up earlier gains. the uncertainty with cit leaving investors weary. the nikkei 225 up 0.8%. kosty the pup 0.8%. and the shanghai composite down 0.15%. the hang seng index is up 0.6%. the hang seng is up 0.6%. it was much higher earlier. the bombay sensex up 072%. the nymex light sweet crude is trading at $60.86, down 68 cents, and brent should be moving lower, 89 cents lower, $62.63 a barrel. over to you, scott. >> christine, thanks. joining us now for market strategy, david sowerby. and still with us is khuram choudry. david, let me begin with you. we're in a pretty good week here. the earnings have been better than inspected and where do we stand? >> well, you nailed it. all right is better than the low expectations that headed into the week. some skepticism still around the goldman earnings what we more financial com

the department of defense cannot figure out a way to defend the united states of america on a budget of more than half a trillion dollars a year, then our problems are much bigger than anything that can be cured by purchasing a few more ships or planes. what is important is to have a budget baseline with a steady, sustainable, and predictable rate of growth that avoids extreme peaks and valleys that are enormously harmful to sound budgeting. from the very first defense budget i submitted for president bush in january 2007, i have warned against doing what america has done multiple times over the last 90 years, by cutting defense spending after every major conflict. the war in iraq is winding down. one day so will the conflict in afghanistan. when that day arrives the nation will again face pressure to cut back on defense spending, as we always have. it is simply the nature of the beast. the higher dollar base budget is now, more unrealistic, the harder it will be to sustain necessary programs we have, and a more drastic and dangerous the drop-off will be later. so where do we go from here? authorization for more f-22's

united states -- mary bubala on the story. >> reporter: the "cash for clunkers" program has a one million dollar budget and they feel once the paper work is settled, the money may be gone. all of the attention on the "cash for clunkers" program seems to have made it too successful. >> it's overwhelm, we can't keep up with it. >> reporter: the white house says the money is running out quickly. >> probably will run out of money soon. we wanted to be in the front. >> that's our concern, that they might run out of money. >> reporter: these early birds thought comes this week, they turned in their approved clunkers getting $4500 towards a more fuel-efficient vehicle. the white house says it's evaluating programs to keep them funned an all transactions will be honored. >> it does spur business. >> congress could vote to a money to the program but they have to do it fast because they adjourn for a one-month recess. >> the so-called beer sum hit summit is called a success. they sat down at the white house last night. sgt crowley and harford professor gates both say that the meeting was productive and they're planning a second meetin