thirty eight percent in the united states and if you adjust for population capital or the growth in japan was thirty seven percent vs fourteen percent in the united states. economyas electricity growth is expected to closely correlate with economic growth so the something amiss here and i would like to you know beat these issues in washington and put. this evidence before prominent people in washington you point out that. there are numbers that indicate that japan might have softened like they are their stock market for example that really what's going on for the average japanese which is really where the rubber meets the road or whatever cliche. is a very very different reality that while the average americans reality is getting more and more dire and terrible the average japanese reality for the last twenty years has been pretty damn good. you know exactly of course there was a terrible crash in the early nine and ninety's but that's a long time ago under the japanese really got over that much more quickly than the american press the british press would have you believe in in the interim living standards and have increased very rapidly and very obviously thing

is not the united states but this is a global economy we saw u.s. stocks tumble today on the news out of greece and it does according to analysts give a lot of concern about u.s. thinkers so how does what we're seeing in the euro zone affect the united states economy. but the two thousand and financial crisis should really teaches a lesson that these financial markets are interconnected and it fears a crisis where greece either to forte's or if not detected well if it's a technical default in greece down the road it will probably have a contagious effect on other european peripheral countries such as portugal and ireland maybe even spain and the reason that there's so much concern about whether a restructuring of greece's debt is deemed to be a default is that it would trigger the credit default swaps and it's mostly american financial institutions that have written those credit to forswear us that ensure investors for in the event of it's a fourth of greek debt so those would be major losses for u.s. financial institutions wow and we've seen the to

or europe yet ok as you say so china's economy is one million for size of the united states what do you think of this growing russia china alliance going to some point become a threat to the economic and political interests of the u.s. and its allies. of course is a very long very long to. question the moment i think their relationship is unlikely to move in that direction if you were to add thirty or forty years to the to the question who knows all right i david i thought well the trade policy consultant talking to us from hong kong thank you. for you with r.t. and still ahead for you there is our question of justice as alleged russian a gun one of the boot faces a new round in his court battle we put the legality of the whole case under scrutiny. and russia's a drumming up business as the movers and shakers of the financial world gather for the annual economic forum in that sense he just wrote our business there will be live there and i just about ten minutes time. now the fate of libya's leader political way out of the civil war are at stake during talks in tripoli as russia's envoy

money and small businesses can't get money not supposed to be one of the bedrock you know united states economy a little. sorry the u.s. government is borrowing want to have trillion dollars a year there's nothing left for business and not only the u.s. government is what it's directly borrowing the u.s. government is guaranteeing all the mortgages all the student loans there's no money left this is are starving for capital because it's all going to washington but at the same time i mean the government bailed out a lot of those mortgage backed securities because that's what investors all over the world head how they were essentially reinforcing the major investment that countries like china and russia had me right but where did the money come from to bail out those investors who should've lost money it was taken out of our pool of capital so that money is not better for businesses and even if it was there would they really want to take the risk of borrowing it and have to pay it back when the climate is so hostile taxes are high and going higher regulations are numerous and there's more room in

economy is fragile, don't cut budgets substantially? >> the united stateslly different from greece in a number of respects. first it has a lot more time. because the u.s. supplies global public goods. it supplies the dollar as a reserve currency, it supplies the deepest markets can means other countries are willing to outsource the savings. will gives the u.s. much more time to deal with its fiscal policy issues. the second issue is that the u.s. actually is a much more vibrant economy. the problems facing the u.s. are not an engineering issue as much as a political issue. we need political will, you need democrats and republicans to come together to deal with four structural impediments. and they should be able to come that over time. so when we look at the u.s., yes, this is a public gfinance issue, but it's certainly nothing like greece. >> so when pimco looks at this situation, are you selling u.s. treasuries because you worry that the u.s. does not have the political will? as you say, in our case, there are many solutions. greece's case, there isn't a

establish a migrant workers program for people to be able to continue to enter the united states as the u.s. economy needs their labor. support and help the areas of mexico where these migrants come from so that they eventually start staying in their hometowns unless they are needed in the united states and once you've done that, ensure that the u.s., mexican border is only open to legal entry with the cooperation of both countries to make that entry legal. but you can't stop illegal entries unless you increase the number of legal entries. if not, you are going to have people climbing over the fence or under the fence or swimming across the mote with alligators like president obama said a few days ago. >> what are you doing today? >> i spend 1/3 of my year in new york city. i teach at nyu. i've been teaching for 14 years, expect for the years i was in government. i spend a lot of time in mexico, lecturing and speaking all over the country trying to push forward ideas like the ones that are in the books. i dabble in politicking, but i try to stay a little bit away from it. i write a lot. i'm not sure

the big question is, the health or lack thereof of the world's largest economy, the united states economyafter ben bernanke made a series of comments last night. and the federal reserve decided to hold interest rates at their current historic low level. but he also didn't hint at any more economic stimulus in the forms of quantitative easing. >>> from governments to investors, people everywhere are looking for answers it seems when it comes to what's in store for the global economy. some people believe they have the answers but the question is should you consult them when you're thinking about rebalancing your own stock portfolio. felicia taylor went to cnn for some tips on what the financial future may hold. >> let's see, what's going to happen, usa, usa. >> reporter: frank andrews uses terrot cards. >> when i look at the crystal ball, i get sim ymbols. >> reporter: and this woman, a money pot. as the experts debate and uncertainty remains, there's only one profession that claims to predict into the future. you can find them all over new york city. psychics. our first stop, karen thorn.

and women-owned businesses are the fastest growing segment of the united states economy. there's 10.6 million businesses owned in the united states by women that employ over 19 million american workers and women-owned businesses generate some $2.46 trillion in revenue each year. women are smart, they're able to own their own businesses and we here in washington need to help them meet those goals, not provide hindrances for it. and clearly from the last speaker you see that president obama's plan has failed. throwing money at something does not create jobs. there's a better plan. i'm also a small business owner now, my husband and i own a company where we sell farm equipment. and we employ about 50 people at three stores, so i know the challenges of day to day operating a small business in america and you know most jobs in america are created by small business owners. the same people that president obama is trying to tax. what he doesn't understand is that if you tax job creators more they're not going to have money to be able to hire a worker. it doesn't make sense. we've

today at 18% more expensive to manufacture a product in the united states than it is another industrial economies. other countries are racing ahead in adapting progrowth policies and leaving the united states behind. for in income and corporate tax rate. the united states is in the wrong direction as other countries have reduced rates, the united states is standing still. we currently have the second highest tax rate in the world behind japan, which recently the latest cut that would've pushed the united states into the number one position at another concern is regulatory burden. onerous regulations stifle jobs and economic growth. they are chilling dollars plus weight on job creators. some are straight. colombia, panama panama free-trade agreements for four years. "the wall street journal" recently reported colombia is looking to increase trade ties with china coming of uniquely met with the u.s. is the deal was not within any and yet they're the colombia trade minister said columbia can no longer sits with his arms crossed waiting for the united states to act. this trade agreement will enhance

leave it there citicorp released a new report this week predicting that india's trade economy will surpass the united states as the second largest economy in the world it's already a foregone conclusion that china will pass us for the top spot for the next couple of years so what you china and india have in common they both have protected economies that have an all in for the free trade gimmick so once the american economy falls to the top slot to third or even worse then what can we finally say that thirty years of trickle down and so-called free trade policies simply don't work or do republicans and many democrats very frankly just really want to become like the libertarian you know so you know all of the crucial thing they have in common and that is over a billion people about four times the population united states has not only is natural that a country that has four times the population of united states as they as they modernize it in advance what it would have greater g.d.p. growth that's just a natural consequence of a country rising of course and china and india they're adopting free market principl

is it fair to compare the united states economy, to the chinese economy. >> tim has the right instincts. he rizzss that what this president has done has slowed the economy. he didn't create the recession but he made it worse and longer and now we have more chronic long-term employment than this country has ever seen before. 20 million people out of work. stop looking for work or in parttime jobs that need full time jobs. we have housing prices continuing to decline. and we have foreclosures at record levels. this president has failed. and he's failed at a time when the american people counted on him to create jobs and get the economy going. and instead of doing that, he delegated the stimulus to nancy pelosi and harry reid and then he did what he wanted to do. card check, cap and trade, obama care, re-regulation. i spent my life in the private sector, 25 years, as i went around the world -- president obama is doing it wrong and the idea as time described, those are in the right wheel house. >> if you look at poll in the bose globe the other day, 54% of voters in this state said they're

is 5% overly optimistic, and is it fair to compare the united states economy to the chinese economy, which is still in many ways developing? >> tim has the right instincts, which is he recognizes what this president has done has slowed the economy. he didn't create the recession, but he made it worse and longer. now we have more chronic long-term employment than this couldn't has seen before. 20 million people out of work, stopped looking for work or are in part-time jobs that need full-time jobs. we have housing prices continuing to decline and foreclosures at record levels. this president has failed, and he's failed at a time when the american people counted on him to create jobs and get the economy growing. instead of doing that, he delegated the stimulus to nancy pelosi and harry reid and he did what he wanted to do. card check, cap and trade, obamacare, deregulation. i spent my life in the private sector. this is an important ptopic. i can tell you how to get jobs going in this country and president obama has done it wrong. >> mr. speaker if you look at a poll in "the boston glo

the danger to the united states economy very real right now based on what's happening in greece. and the 2012 campaign heating up in oou aye with visits by president obama and sarah palin. are either of them being honest about the politics behind their trip? i'm wolf blitzer. you're in "the situation room." all right, let's get right to the breaking news. an attack right in the heart of kabul. a dangerous reminder as the u.s. troops start drawing down. they hold a news conference on the military transition. a western rjournalist on the scene in afghanistan. tell us what you can from your vantage point. tell our viewers the latest information, please. >> right now i'm seeing a number of nato suvs enter the grounds of te tells. looks like there's about half a dozen. a number of afghan national army armored personnel carriers arrived on the scene and the afghan soldiers stormed the compound. now i'm at the base of the hotel. there's a small hill that goes down to the road. that's where i am. so i can't actually see what type of battle is happening. i can hear small arms fire. but ri

. >>> if you think the world's economy would be shaken by a greek default, don't even think about the consequences of a default by the united states. still the world's largest economy, the united states is engaged in a highly partisan debate over raising the federal debt ceiling from its current level of $14.3 trillion. congress must act by early august. the international monetary fund is telling washington to raise the debt ceiling as soon as possible and in a new report it says, quote, it should be self-evident that a debt default by the u.s. government debt market would have very serious, far-reaching and dramatic repercussions and that's why we're confident that one can be avoided. >>> if that's not clear enough, perhaps the squabbling lawmakers will probably take notice of another warning coming from standard & poors overnight. if the u.s. fails to make a scheduled debt payment on august 4th it could lower the country's aaa rating immediately, not just lower it but lower it down to a "d" rating. >>> the president, barack obama, urged congress not to play political games with the country's own credit rating. take a listen. >>

that the the russian economy contract with fifty percent at one point during his administration and i like to point out to my audience here the great depression in the united states the u.s. economy contract of twenty five percent so if we can put that magnitude out there well i think it was not an ideological president and if you listen to his speeches if you read the speech it's not he never said the word capitalism. or the word socialism that was not right he style i mean i remember him saying in one of his interviews back in the eighty s. that people are tired of a door which people just wanted to live better and they wanted more economic freedom and he gave them economic freedom in one thousand eight hundred nine hundred eighty two the problem was that of course people were poor and the only ones who were reach and influential were criminals or some formal party was us so obviously they benefit from this privatization more than the average russian but unfortunately i think it was a global tendency if you will look at the world was tremendously unjust during all of the ninety s. and it continues to be unjust now it's built on some really wrong premises which

chapter of this book is that we now have the mexican economy, the fifth chapter, actually, one of the most open in the world. phar-mor open than the united states, many latin american economy, and similar to more european economies. some exports and imports over gdp is one of the highest that there are to more than 2%, a country where tourism is enormously important. the number one generator of hard currency and the number one employer where remittances from mexican emigrants abroad is a very important source of currency. also, by the way, in a country where there are more u.s. non-military nationals living than any other country in the world. around a million americans live in mexico which is more than anyplace else in the whole world this open economy, which has been a good thing by and large, not as good as many people thought it would be, and, perhaps, not as beneficial as many expected, but it has been a good thing in general terms. it is also very much concentrated with the united states. 90 percent of our exports go to the u.s. 90 percent of our oil goes to the u.s. to be 90 percent of the tourists that visit mexico comes from the u.s. a

mayor lee out line, apec represents more than half of the global economy, almost half of the population in the world. the united states needs to link our economy more closely to the asia-pacific economy in order to experience the kind of growth we want to have in the future. in that regard, there is a very important aspect that i want you to take home and understand today. it is also the most open forum for private sector participation that exists on the planet. there are multiple opportunities throughout the discussions for private-sector people to participate directly in the dialogue that takes place within apec and also to provide ideas and have influence on the outcomes, which we hope to achieve through the course of the year. we have outlined three themes for apec in 2011. being host of apec also means that we are the chair. that mean we set the agenda and the side what proposals are -- decide what proposals are put on the table and then tried to bring around the other economies to our point of view. they also offer their perspectives and we negotiate out, which will hopefully drive for the substantive policy age

is 5% overly optimistic and is it fair to compare the united states economy, a fully developed economy, to the chinese economy, which is still in many ways developing? >> tim has the right instincts. which is he recognizes that what this president has done has slowed the economy. he didn't create the recession. but he made it worse. and longer. and now we have more chronic long-term unemployment than this country has ever seen before. 20 million people out of work. stopped looking for work or part-time jobs that need full-time jobs. we got housing prices continuing to decline. and we have foreclosures at record levels. this president has failed. and he's failed at a time when the american people counted on him to create jobs and get the economy going. and instead of doing that, he delegated the stimulus to nancy pelosi and harry reid. and then he did what he wanted to do, card check, cap-and-trade, obamacare, reregulation, i spent my life in the private sector. 25 years. as i went around the world, this is arne topic. -- is an important topic. how to get jobs going in this country and

today it's 18% more expensive to manufacture a product in the united states than it is in other industrial economies. other countries are racing ahead and adopting progrowth policies and leaving the united states behind. for instance, the corporate tax rate. the united states is moving in the wrong direction as other countries have reduced their rates the united states is standing still. we currently have the second highest corporate tax rate in the world, behind japan. regulations stifle jobs and economic growth. there's a trillion dollar job plus wait. then there's trade. the "wall street journal" reported columbia is looking to increase trade ties with china. noting the agreement is the deal we want more than any other. the trade minister said they can no longer sit waiting. manufacturers are waiting for action. there are are 120 other free trade agreements being negotiated around the world. the u.s. is only party to one of those. we're seating our market share to our competitors. there are so many other policies that are causing us to standstill. there's also policies that are actually turning t

on the united states economy. you can get hit with that one. >> does the president feel opportunistic to sell that stock at or close to the top? >> say that again. >> does the president think it would be an opportunistic to sell clothes or at the top? >> i don't think that is it at all. we just don't know where the top is. i don't think it's a question of ethics or anything. it's a question of a printable we have adopted. we don't think we should be a permanent or long-term player in the private economy, and we're trying to make sure that doesn't happen. >> thanks very much. >> thank you. >> in answer to question i think we have a lot of faith that japan will rebound and rebuild, which we said before, but we don't have a time frame or an economic analysis to quantify that. we are very confident in japan's resilience and remain so. i will start with a brief readout of the president's meetings. are here today with house republicans on this, conference rather. meeting lasted about 75 minutes, it was held in the east

well you said there's there wars going on the united states is the world's largest economy it's got global responsibilities not so sure why defense brings a problem and store glee the level of defense spending and its percentage economy so actually near historic post world war two los i'm not sure it's inappropriate certainly not because of our fiscal problems so we can take defense spending the cost but we may have contributed take defense spending to zero tomorrow and thirty years the country still goes broke because so security medicare and medicaid those are the big fiscal issues that they have to grab what we could we can't balance the budget over the long term by cutting defense that's just a fact and doctor of course before i guess he had i just just responded this is often the argument i keep on hearing you know you bring up the issue of military spending and you hear back social security domestic spending these are the issues that we really have to tackle but it doesn't have to be an either or case i mean a few years ago yourself wrote a piece of a title and i think guns versus bu

economy. so we acted on that advice in the united states in august and some timber of last year. we could infer from tips prices and inflation indexed bond prices that investors saw something on the order of a one- third chance of outright deflation going forward. there was significant risk there. the securities purchases that we did were intended in part to end that risk of deflation. i think it is widely agreed that we succeeded in ending that deflation risk. also our policies were constructive on the employment side. this is a bit more countersue but we did take actions as needed cannot even though we were -- with dressed deflation so that was the thrust of my remarks 10 years ago. and we have been consistent with that approach. >> do you and her colleagues have a statistical trigger of any sort, a particular level of unemployment or inflation at which you began the process? when it makes sense to announce it and if not, why not? >> it is impossible to create a trigger because we have 17 independent members of the fomc. each has his or her own view on the look on the efficacy

united states. the united states government just completely stops how that your goes down to the actual real economy to main street is going to take a little bit of time we don't really know what it looks like so if you're in the tea party you know that you've got your principles that you. i believe in it so that's what you're going to stand firm on because you think that's the best way of that it's going to work out and i don't think that we should be spending any more money than we should be but i also think that the the most practical way to get out of this is to raise the debt ceiling for a short term period of time up until the end of this budget year because we have to figure out fiscal year two thousand and twelve budget after this that's going to parties out of as soon as we figure out this debts and then we have this other thing called our budget next year we didn't pass a budget last year it would be an precedent if we didn't do it two years in a row so we start to figure that out put in place is something practical like ending for any man freddie mac. in exchange for raising the debt ceil

united states senate. >> the -- >> the economy would drop. they say the economy is dependent on u.s.a. don't know that -- >> but what happens with -- [everyone talking at once] >> the relationship with pakistan, the area is so critical to our safety. >> it's a disaster. >> i do. >> the afghanistan -- is not a theater in which our national security interest is at stake. we should pull out and pull out right away. slowly. pull out. issue three, underwear bomb two. >> i'm deeply sorry i lied. but at the end of the day, i lied because i was embarrassed. i lied because i was ashamed of what i had done and didn't want to get caught. to be clear, the picture was of me and i sent it. >> new york, democratic congressman anthony weiner this week admitted to sending an underwear anatomy photo of himself to a woman via -- >> question, a recent poll shows that 56% of voters and congressman weiner's district -- where is it? >> queens and brooklyn. >> do not think he should resign! so will weiner survive? i ask you, rich. >> i think he about. there are three things that could make him go, his conscie

if the united states government for the first time cannot pay its bills, if it defaults, then the consequences for the u.s. economypredictable. >> the yellow light or red light? >> i think people should think of -- look. i'm the president of the united states and i want people to know i am not engaging in scare tactics and i tried to be responsible and somewhat restrained so that folks don't get spooked. august 2nd is a very important date. and there is no reason why we can't get this done now. if by the end of this week we have not seen substantial progress, i think members of congress need to understand we are going to start having to cancel things. and stay here until we get it done. in one week they are in and out one week and then they are saying obama's got to step in. you need to be here. i have been here. i have been doing afghanistan and bin laden and the greek crisis and -- you stay here. let's get it done. all right. i think you know my feelings about that. >> jessica yellin is joining us with our chief political analyst. i think it's fair to say that throughout that one-hour plus news conference, the p

strongly developing coutries in terms of growth are serving as the engine for the global economy where in the past united states has. i think we stay above the line but it will be a period of real economic growth that's slow in comparison to what we're used to. >> susie: you talked about greece and we just reported about that crucial vote of confidence for the greek prime minister. you were tweeting about that as well and look at what with you were telling. you said the risk rally is dependent on continuing good news from greece. now that they got the vote of confidence can investors now cross greece off its worried list? >> goodness, no. i think ultimately the resolution for greece involves a compromise between labor and capital which to a certain extent means a haircut or a small default in terms of greek bonds. this is just the first step really in terms of the global battle between labor and capital. it's most visible in athens but ultimately i think it will occur around the world. it speaks to wages, retirement and entitlement and we'll continue to see it for years to come. >> susie: as the you know, bill,

not a united states problem but at the end of the day i mean let's face it right if greece already fall on its debt this would trickle down to the united states somehow this would affect our economy it's certainly would impact our economy in some respects we have got american companies that are over there we know the european economy is certainly and so there's less people buying our products that step in the case but that doesn't necessarily mean the united states needs to be the lender of last resort for everybody in the world well i think you know you bring up the i.m.f. and so of course today there is the news and i am happy christine legarde has been chosen france is a former finance minister to take over here but of course there is a lot of a lot of discussion after her and strauss kahn lack as to whether it's time for some new leadership maybe doesn't have to be europe anymore and we actually have an interesting sound bite here this is our reporters from moscow did an interview with jim rogers who thinks that maybe china needs to have a greater role in italy. they will come to save europe they become the largest creditor for europe they're going to have a very major seat a

oil will be released from strategic reserves half of this will be coming from the united states with other major economies providing the rest over a period it's only the first time in history the i.a.e.a. has sanctioned the release of reserves moves intended to offset the loss of production from libya currently engulfed in civil war meanwhile some opec members wonderful possible countermeasures to prop up the oil price nick parsons head of research at the national australia bank explains why he thinks i was taking this unusual step. buying these two reasons the first of these relates to the global economy and bear in mind the central banks around the world central banks and governments alike fairly alarmed at the prospect of rising inflation and oil prices are a major contributor a factor here they certainly don't want to drive their economies back into recession as a bike over tightening interest rates in order to deal with inflation so working directly at the root cause of these price increases i think is a very very shrewd move so the first reason is because they're concerned with inflation i think the