and china. the u.s. economy, the gross domestic product, still dwarfs that in china. but take a look at what will happen at the current rate over the next ten years. >> i think one of the saddest things going on in america today is that our politics has become so paralyzed, so gridlocked, that we no longer believe we can get big things done, so we no longer aspire to do big things. >> reporter: tom friedman, the author of "hot, flat and crowded. ". >> the 21st century is going to go to the government that provides these four things. the best education. for its people. the best infrastructure for its businesses. the best rule of law. and the best environment. >> reporter: so 50 years from now, will america still be number one economy? >> this is the choice of the american people. may i say that? because everybody has to rise to work hard to change their life. >> reporter: so what are chinese workers ready to do to make sure that the next generation gets that highest level of education? david muir is here now to tell us what he's learned some parents will do. david. >>

we are making so many products in china, paying china so much money for the products, that you go to the chinese cities and they are rebuilding cities and new cities that are bigger than any of our cities. it's absolutely insane to have made that statement. >> what are you going to do? we have a trade problem with china but we have news today that g.e. is getting a $2 billion investment out of china and news also today that saginaw, michigan, china is the number one employer in saginaw, michigan. >>guest: that is a small place that is wonderful but they are using that just to show how nice they are when, in fact, they are not looking for our good. and they should be looking for their good. and to have people that are very, very smart, and what i would do, you have such a huge trade deficit with china, the currency is artificially low and we have fallen into the chinese trap. we are now destroying the dollar to try and compete with them and we should not be doing that but we should keep the dollar strong and stable and we should tax chinese products. the people that talk about free tr

china's president welcomed mr. cameron, praising his efforts to improve britain's relations with cameron. mr. cameron is 20 years younger, but china's leader describes the cabinet ministers as very young, but full of drive and energy. britain's prime minister responded that he puts the highest value on britain's ties with china. and this is why. business and cash. mr. cameron wants to focus on trade with china, deals that can earn hard money for british companies. then, to an audience of students, david cameron delivered the keynote speech of his visit to china. he said he sees it as not just a new economic power, but a new political power too. with that, he said, comes responsibility. mr. cameron spoke of the importance of what he believes is a free media, the rule of law, and the political scrutiny of politicians. it's all couched in ways very carefully designed not to sound like he was lecturing his chinese host. >> arguing for a strong relationship between our countries, i want a relationship in which we can be

>>> china blasts off. china is rocketing into the 21st century and not just the chinese program has ambitious goals. including building a manned space station and completing an unmanned lunar mission by the end of the decade. but is there an ulterior purpose? does china also have military aspirations in space? we'll ask this expert on chinese military and aero space affairs, dean cheng. captions produced by visual audio captioning www.visualaudiocaptioning.com >> dean cheng, welcome. >> thank you very much. >> how robust are chinese space capabilities? >> china has a space power in the sense that it has both a launcher capacity. it produces its own satellites and it has its own mission control facilities. that puts it into basically one of only three or four countries that can do that. >> would you say it's on a par today with russia? >> in some ways it may actually be ahead of russia. >> really? >> yes, it spends about three times as much in terms of sheer money than the russian space budget item. >> how

china is doing this because it has to. >> china does not have a choice. as a country, there are serious resources scarcity and environmental degradation. china needs to find a better way to survive. >> reporter: china is devouring oil and coal. electricity use doubling in the last decade. 6 million new cars added to the roads in just the last year. and because of this, it's now believed china is spending ten times what the u.s. does on green technology. and it's fueling something else. profits. we travel south of beijing to yingli solar, where they've turned this green moment into their moment back in the u.s. we could find solar panels on homes in california? >> yes. >> reporter: made right here? >> yes. >> reporter: you say with a smile. >> yes. >> reporter: we placed calls back home, and just today, another delivery. chinese solar panels delivered to an elementary school outside northern california. but there are now serious questions on capitol hill about whether china is playing fair in this green game. there are leaders in america who believe you ha

and china has been very cautious. they decided to move with open and free enterprise system, to trade commerce, moving around, competing in business. it is almost free enterprise. but they decided to keep tight control by the communist party of the political system. i think in the future it is inevitable that china is going to have to liberalize their democratic system. as you probably noticed, 23 of the top chinese leaders, some of them out of office now, wrote a letter to who jintao recently, condemning the chinese government for tightening up on free speech. and so that has been -- that is kind of a burgeoning sort of effort in china to be more a point -- to be more open. they passed last year a law that ensures that some elements of access to information, freedom of information. the senate has been asked by the chinese government to help implement that law. tavis: there are two or three things you talk about in the book that represent mistakes you made, things you think you could have done better. in no particular

and china what is the u.s. doing at the moment queen q two it's not the queen elizabeth cohen is it that the easing that is exporting their dad all over the world cause inflation inside the us it's that it's going to be another bubble it's not going to so the us problems and you have a undervaluing you one in china so these two whole. all the financial system all over the world by the balls. they have to decide something in fact the rest of the world they're just mere spectators of the whole say ok john let's go follow up on what pepe has to say so the g twenty is going to meet in seoul and are going to watch the americans and the chinese throw mud at each other and that would be the very least of the problems. yes the currency issue which he's talking about is certainly a major one but the fact that they've expanded from the g eight to the g twenty the g twenty represents about two thirds of the world's population about ninety percent of the g.d.p. and about twenty eighty percent of the trade so it is expanded

to china friendly artie's lauren lister shows us how china has become the new bogeyman in u.s. politics but is that really in the u.s. interest to make this an all out battle it's on arch even children still made in china three common words quickly becoming bad words as part of smear campaigns made in the usa to be voted to give china's special trade status the chinese are being set up to be the next bogeyman and the only thing that's interfering with that is that the muslims are in effect of bogeyman for right now but that hasn't stopped china and its alleged us supporters from being the bad guys does your great holes help foreign companies create chinese jobs to make it with as seen in countless political campaign ads ahead of the two thousand and ten midterm elections with china in the u.s. china's ascent in the world is becoming the popular perceived threat from washington maybe you ought to run for senate trying to hollywood good to get it over to where they're remaking the eighty's flick red dawn. but this time around instead of soviet troops invading the west you guessed

and china. the u.s. economy, the gross domestic product, still dwarfs that in china. but take a look at what will happen at the current rate over the next ten years. >> i think one of the saddest things going on in america today is that our politics has become so paralyzed, so gridlocked, that we no longer believe we can get big things done, so we no longer aspire to do big things. >> reporter: tom friedman, the pulitzer-prize winning author of "hot, flat and crowded." >> the 21st century is going to go to the country, the government, that provides these four things -- the best education for its people. the best infrastructure for its businesses. the best rule of law. and the best environment. >> reporter: so 50 years from now, will america still be number one economy? >> this is the choice of the american people. may i say that? because everybody has to rise to work hard to change their life. >> reporter: so what are chinese workers ready to do to make sure that the next generation gets that highest level of education? david muir is here now to tell us what he's lear

china is doing this because it has to. >> china does not have a choice. as a country, dealing with serious resources scarcity and environmental degradation. china needs to find a better way to survive. >> reporter: china is devouring oil and coal. electricity use doubling in the last decade. 6 million new cars added to the roads in just the last year. and because of this, it's now believed china is spending ten times what the u.s. does on green technology. and it's fueling something else. profits. we travel south of beijing to yingli solar, where they've turned this green moment into their moment back in the u.s. we could find solar panels on homes in california? >> yes. >> reporter: made right here? >> yes. >> reporter: you say with a smile. >> yes. >> reporter: we placed calls back home, and just today, another delivery. chinese solar panels delivered to an elementary school outside northern california. but there are now serious questions on capitol hill about whether china is playing fair in this green game. there are political leaders in america who b

and china on currency, between china and japan on the senkaku islands, and increasingly between china and the rest of asia will spill over and affect the whole world. we wanted to take the pulse of the nations that mr. obama visited. so we brought together a key observer from each of the president's destinations. suhasini haida is the deputy foreign editor and a prime-time anchor for cnn ibn in delhi. victor cha is the korea chair for the center for international and strategic studies and a professor at georgetown university. jason tedjasukmana is based in jakarta, indonesia, for "time" magazine. and yoshihisa komori is the washington-based editor at large at one of japan's largest daily newspapers. suhasini, let me start with you, because obama began with india. there were great expectations. obama in a sense had an almost unmanageable task. he was following the president who had given india everything it had wanted. it had ended what was called the nuclear apartheid of india by bringing india effectively into the nuclear club. was obama able to deliver? >> i think, fareed, what pres

-china relations. this part of washington journal is 40 minutes. >> our next guess this morning is drew thompson, the china's study director at the nixon center. we're talking about china's military buildup. some say it's a growing threat. is it? >> guest: threat in the combination of capabilities and intent. we track their capabilities, but it's difficult to know what china's intent is. it's an opaque system. we don't have a lot of cooperation with them at the moment, so there's a lot of mistrust in the relationship and the mistrust runs both ways. it's hard to say whether or not it's a threat. i mean, other countries have robust militaries, and they're not a threat because we have a sense of their intent. with china, we just don't have that. >> host: some look on how much china spends on their military. the united states spends $663 billion, and china spends $98.8 billion, and then united kingdom, and france, and russia. >> guest: there's a lot of question on that number and whether it's higher or lo

this week, china has awokened to challenge the china supremacy. what will happen to the rest of us if china continues to dominate? we'll discuss the new economic powerhouse. the return of terror in northern ireland. we investigate the growing strength of the real i.r.a. >> i personally know of a man who could be described as one of the most prolific assassins thrown up by the 35 years of war, and he has now moved to the real i.r.a. >> and will george bush's attempt to write hustry in the oval office win over his critics? we'll discuss his legacy. >> he's declared war because of weapons of mass destruction. he says here, i had a sickening feeling that there weren't any. that is not good enough. >> hello, the world leaders arrived in seoul. an extraordinary period of diplomatic friction between china and the west. for the chinese, it may seem like the world is ganging up on them. if it is, it's driven by two things the world doesn't have, recession and democracy. is it possible that the rest of the world might be wrong about china and that the end i

and the more china celebrates the ten percent plus rise and its economic growth the more we see china vilified it's very important to see more progress by the major emerging economies with policymakers accusing the country of manipulating its currency to boost exports at the expense of the u.s. recovery and demanding they do something to change that every just look at the issue from that perspective you may think china is to blame here but if you i think china have a very dynamic interconnected relationship and when you look at what the u.s. is doing because a lot less clear who is the bad guy but it takes two to tango there are two sides to that core and the only way to get out of this imbalance is to coordinate a process that is mutually beneficial both. an imbalance that has china the largest creditor nation on the globe. funding the us the largest debtor. nation in the history of the world asking for the dollar to go down twenty percent against the chinese currency chats to you on essentially ass china who holds two point six trillion us dollars in its reserves to just lose a half

and the more china celebrates the ten percent plus rise in its economic growth the more we see china vilified it's very important to see more progress by the major emerging economies with policymakers accusing the country of manipulating its currency to boost exports at the expense of the u.s. recovery and demanding they do something to change that every just look at the issue from that perspective you may think china is to blame here but the u.s. and china have a very dynamic interconnected relationship and when you look at what the u.s. is doing because a lot less clear who is the bad guy it takes two to tango there are two sides to that and the only way to get out of this imbalance is to coordinate a process that is mutually beneficial both. an invalid. that has china the largest creditor nation on the globe. funding the west the largest debtor nation in the history of the world asking for the dollar to go down twenty percent against the chinese currency chests the you on essentially as china who holds two point six trillion us dollars in its reserves to just lose a half trillion

/china clash over currency. the issue dominated a meeting between president hu jintao and president obama in seoul, korea today. "newshour" economics correspondent paul solman explains what's behind the dispute. it's part of his reporting on "king sense of financial news." >> reporter: at the g20 meeting in south korea this week, conflicts over currency. the most recent one: that the federal reserve's printing of more dollars-- so-called quantitative easing-- could upset the world economy. but this story is about a longer-standing issue: the u.s. and others pressing china to stop controlling its currency, stop holding down its value, which continues to give chinese products and companies a supposedly unfair global edge. >> net, net, you have seen a small move lower in the dollar, but not appreciably so. >> reporter: david steck, who runs the foreign exchange desk of nomura securities in new york, showed us how the dollar has been faring against the chinese renminbi. >> so here you're looking at a long-term chart

china town has a large older population. more than 30 percent of china town are 65 and older twice the rate of san flrancisco population. how do we get the home bound seniors eshg vac wait. how do we find out if they are okay? another thing is language and cullural issues. a percentage of china town residents are what we call linguistically isolated meaning no one in the household age 14 or older speak english well. what this means is that all our response plans have to keep in mind that factor the signs and volunteer workers need to community in cantonese and mandarin. our trainings have to be cond t conducted in multilanguages. we convened a preparedness committee composed of organizations in china town. includes the we are fortunate to have 3 medical facilities in china town. chinese hospital. public health center 4 and we also have northeast medical service. these 3 organizations are part of our response network. we have the senior care organization such as self help for the elderly. senior health. the housing service li

and china what is the u.s. doing at the moment queen can you to it's not the queen elizabeth granted that the easing that is exporting there that all over the world cause an inflation inside the u.s. it's that it's going to be another bubble it's not going to so the u.s. problems and you have a value you want in china so these two hold the financial system all over the world by the balls and it's them they have to decide something in fact the rest of the world they're just mirror spectators off they'll say ok john let's go to follow up on what pepe has to say so the g. twenty is going to mean soln are going to watch the americans and the chinese throw mud at each other and that would be the very least of the problems. yes the currency issue which is talking about is certainly a major one but the fact that they've expanded from the g eight to the g. twenty the g. twenty represents about two thirds of the world's population about ninety percent of the g.d.p. and about twenty percent of the trade so it is expanded

and the more china celebrates the ten percent plus rise and its economic growth the more we see china vilified it's very important to see more progress by the major emerging economies policymakers are accusing the country of manipulating its currency to boost exports at the expense of the u.s. recovery and demanding they do something to change that every just look at the issue from that perspective you may think china is to blame here but the u.s. and china have a very dynamic interconnected relationship and when you look at what the u.s. is doing because a lot less clear who is the bad guy who takes two to tango there are two sides to that and the only way to get out of this imbalance is to coordinate a process that is mutually beneficial both. an invalid. that has china the largest creditor nation on the globe. funding the west the largest debtor nation in the history of the world asking for the dollar to go down twenty percent against the chinese currency just so you on essentially as china who holds two point six trillion us dollars in its reserves to just lose a half trillion dol

that they haven't disappeared because china to threaten to ban exports and other posturing china is responsible for ninety seven percent of the available world supply of these rare earth so japan is really really spooked by this and the u.s. should be too right so we know all about how shortages in the oil business can cause all kinds of economic mayhem in the u.s. of course the oil shock of the seven days and then oil spiked up to one hundred forty seven recently cause all kinds of mayhem so you're saying as commodities expert the same kind of thing happening in rare earths because so much of our new electronic world all the gizmos are made with these rare earths and china has a ninety seven percent of the of the market how did that happen well you know what it's a two fold here it is exactly like energy in many ways because here we are we're dependent on these metals for our future green technology you know the hybrid cars like the shed the windmills etc in other technologies if we're going to ever get off this oil addiction which we're definitely dependent on right now we're goin

isn't talking about that's what they're talking about in china because when i go to china and talk to the officials there so we talk about is the u.s. hypocritical in its dealings with china when it doesn't even talk about quantitative easing well it's printing trillions of dollars the u.s. has benefited from what is in effect a double standard because of the dollar standard the u.s. debt is other people's asset when you. when you spend more than you. get than other countries end up with the dollars the united states is the only country which has run a balance of payments deficit and has not raised its interest rate has and has not raised its taxes now this is something that you also dealt with in your book super imperialism that the u.s. has been able to get other countries to finance its debt to century finance its wars that fifty percent of its discretionary budget is devoted to defense how has the u.s. maintained it happened largely by inertia after world war two the united states had most of the world's gold and by one nine hundred fifty the united states had eighty percent of th

and the more china celebrates the ten percent plus rise and its economic growth the more we see china vilified it's very important to see more progress by the major emerging economies with policymakers accusing the country of manipulating its currency to boost exports at the expense of the u.s. recovery and demanding they do something to change that every just look at the issue from that perspective you may think china is to blame here but if you want and china have a very dynamic interconnected relationship and when you look at what the us is doing because a lot less clear who is the bad guy but it's two to tango there are two sides to that core and the only way to get out of this imbalance is to coordinate a process that is mutually beneficial both. an invalid. that has china the largest creditor nation on the globe. funding the us the largest debtor nation in the history of the world asking for the dollar to go down twenty percent against the chinese currency it's the you on essentially ass china who holds two point six trillion us dollars in its reserves to just lose a half trilli

and china what is the u.s. doing at the moment queen can do to it's not the queen elizabeth granted that the easing that is exporting there that all over the world cause an inflation inside the u.s. it's not it's going to be another bubble it's not going to so the u.s. problems and you have a undervaluing you one in china so these two hold the financial system all over the world by them. balls. they have to decide something in fact the rest of the world there are just mere spectators up they'll say ok john let's go follow up on what pepe has to say so the g. twenty is going to mean so on are going to watch the americans and the chinese throw mud at each other and that would be the very least of the problems. yes the currency issue which he's talking about is certainly a major one but the fact that they've expanded from the g eight to the g twenty the g twenty represents about two thirds of the world's population about ninety percent of the g.d.p. and about twenty percent of the trade so it is expanded it's cert

and china and the u.s. is in deep financial problems although clearly the election didn't seem to show that as a as a major issue where the the issue of the economic decline in the economic crisis was shown but not how to solve it. so that the g twenty can be a force if they can come together and decide on policies that they can then carry out ok if i go back to you horace i mean if if the united states doesn't like what comes out of the g. twenty which i kind of doubt because i still think they probably dominate the agenda it will just go on its own way irrespective of all the nice recommendations and patting on the back of the photo op and all of that it's not going to really change how the united states approaches the the international order expression the economic order and as i stressed early in the program i mean whatever smiles want to people want to put on the chinese are going to keep on doing what they're doing i mean really we see a huge divergence here at a photo op or everyone smiling. well let

yep, another china deal. not long after that, hezbollah, iranen -- iranian cruise missile knocked out an iranian ship. another gift from china. what's the response of the obama administration to all these transfers of weapons of mass destruction by chee in a to rogue nations? -- by china to rogue nations? there have been no penalties imposed. washington is again considering letting chinese rockets launch u.s. satellites. i guess they need to upgrade their system so they can pass even more updated weapons to their criminal buddies. china's increasingly aggressive and threatening foreign policy are matched at home by severe repression. millions of religious believers in china are facing increased, not decreased oppression. the resulis indiscriminate, wther they are christians, buddhists, muslims, the worst is meted out to falangong, who just practice yoga and meditation. they have been tortured, their organs have been cut out and sold to the highest bidders, many of whom are americans. this is the most ghoulish

that they haven't disappeared because china to threaten to ban exports and other posturing china is responsible for ninety seven percent of the available world's supply of these rare earths so japan is really really spooked by this and the u.s. should be too right so we know all about how shortages in the oil business can cause all kinds of you. nomic mayhem in the u.s. of course the oil shock of the seven days and then oil spiked up two hundred forty seven recently cause all kinds of mayhem so you're saying as commodities expert the same kind of thing happening in rare earths because so much of our new electronic world all the gizmos are made with these rare earths and china has a ninety seven percent of the of the market how did that happen well you know what it's a two fold here it is exactly like energy in many ways because here we are we're dependent on these metals for our future green technology in a hybrid cars like a shed the windmills etc in other technologies if we're going to ever get off this oil addiction which we're definitely dependent on right now we're going to nee

president obama hoped to pressure china to let the value of its currency rise: >> china spends enormous amounts of money intervening in the market to keep it undervalued. wolfgang coaster koester-- head of the risk management firm fireapps. >> right now, there is just a here with no real direction of how to solve it. >> reporter: that leaves u.s.neg 15%. strategist stephen wood thinks stocks will end the year near current levels. >> we're pretty comfortable for where the markets are right now. they are a little bit above our forecasts. earnings look good. corporate america looks fantastic. earnings are through the roof still. profitability is high. productivity is high. >> reporter: that's all good news, but if the chinese economy slows it would undoubtedly have an impact longer term hurting the u.s. economy and corporate profits. erika miller, "nightly business report," new york. >> susie: here are the stories in tonight's n.b.r. newswheel: as we reported, stock prices were down and so were treasury prices as the federal reserve kicked off a program to buy $600 billion in government se

the rise of economic freedom in china over recent years has been hugely beneficial to china and the rest of the world. i hope that in time this will lead to greater political openings. i am convinced that the best guarantor of political prosperity is for economic progress to go step in step together. >> it is all about laying foundations for now -- for new commercial partnerships. some are worried that he has not said more about specific human- rights cases in public. they're worried that he is ducking the hard questions with china. >> the french president has signed into law the bill to reform the country's pension system. the plan increases the retirement age from 60 to 62. it caused chaos across france with weeks of strikes and protests. officials in haiti have confirmed that 70 people are being treated for cholera in port-au-prince. they are concerned that the disease will spread massively following the earthquake and hurricane. singapore airlines says they are changing the engines on three of their jumbo airplanes after tests showed that they were stained with oil. the spokesman say

including your questions about health care and china, about human rights in china, about pollution. and also, about that one child policy, and what it means for girls and boys. but for now, we're back to new york with george stephanopoulos and the rest of the evening's news. george? >> thank you, diane. >>> we're going to begin here with that remarkable comeback for general motors. less than two years after bankruptcy and a government bailout, its cars are selling on main street and its new stock looks like a hit on wall street. today, the company issued the largest initial public stock offering in u.s. history. gm stock will start trading tomorrow at $33 a share. here's chris bury. >> reporter: today, in l.a., gm took the wraps off its hottest new models, just as wall street warmed up to a stock offering so big it may set a record. >> it's incredible levels of demand. we are seeing almost daily increases in how many shares are going to be selling. >> reporter: not bad for a car company that drove itself into a ditch less than two years ago. >> tonight, fallen titan. >> reporter: ba

if we're not careful only because nobody knows where china is nobody knows what china is fear mongering so wives where there is a lack of information with ignorance making people more susceptible to theories and some us politicians take advantage of it but a question they don't answer is it here will be able to remedy the country's economic difficulties or make americans more secure get a check on our take washington d.c. well u.s. foreign policy changed significantly during the george bush era especially following the nine eleven attacks though after staying out of the limelight since leaving office almost two years ago america's forty third president is now having his own say on his time in office it is memoir decision points he reveals his thoughts of the most historic and controversial parts of his reign he says he was shocked and angry with no weapons of mass destruction were ever found in iraq but nevertheless he believes the u.s. invasion of the country was right he also describes his lifelong problems with alcohol on the interrogation of terror suspects he says he personally app

to china. we share democratic heritage and yet embracing india is a little bit tough because we've also embraced pakistan, and they don't get along so well. so, you know, he's facing a conundrum that seems to me to be illustrative of a whole family of conundrums that are associated with what we've been talking about here, and i was just wondering what you think, how that's going to play out. >> those conundrums is us having to realize and following on what patrick said, it's not about the u.s. needing to find region regional anchors, it's really about those countries rising and deciding what role they want to play and, hopefully, there's some synergy there. but we're not really able to compel them as much. during the the period when the united states viewed india as its very important counterbalance to china emerge anything the region, india wasn't looking at china in that way. they were trying to boost trade and having all these summits with china where they would declare a multipolar world is

but it is in the and china. -- but it is india and china. india has demonstrated dollars to growth of the last several years. it is not depended as heavily on exports as china. you do not have whatever the benefits to china has in terms of growth. one of them is not democratization of information. one of the points that the president will emphasize in india is how we can work with this democracy to work in respect with open government and democratization of information, increase trade, increase cooperation with india and the security of the indian ocean, and support for the politicians in india who have been reforming the country at a rapid rate. the meeting in korea is the meeting of the g-20. so india is an important part of the g-20. you need to have partners within the g-20 to cooperate on certain items. we will work with india very closely in the g-20 on a whole range of things. then he will go to japan for an summit. -- aipac summit. the united states has not been playing as proactive their role in east asia as many countries would lik

if we're not careful here only because nobody knows where china is nobody knows what china is and the full that's a pretty harsh criticism of u.s. lawmakers but some of the active u.s. officials seem to have no difficulty selling anti chinese or anti any other country ideas in america considering more than thirty million adults in the u.s. came from a good well certainly a guy no you know there are some strong words there from billionaire mayor bloomberg but china is not the only country that the u.s. is picking on now is it. no well the u.s. has been trying to tame another big export of germany but germany was unapologetic and defended its right to engage us competitively as possible in international trade but as michael bloomberg said the u.s. should stop criticizing other countries for producing more and acts boarding more and get back to work going back to china there's a certain aspect that mr bloomberg finds especially hypocritical china is now making a big push into solar and other environmentally friendly energy technologies and surprisingly the attention it gets in the u.s. i

it's more cost efficient to build machines in china when the customers are in china. no shipping costs. no import tariffs. a no-brainer. so how can you blame a company like caterpillar for watching its bottom line and making the moves that produce the best results? speaking of results, caterpillar's third quarter profits surging 96% year to date. 96%! we're a free trade country whose biggest competitor isn't. we trade freely with china and what do they do? they put a tariff on caterpillar's imports from america. they forbid american companies from bidding on chinese projects. but we let foreign companies, including chinese ones come here and outbid our own american companies. is it really free trade if it's not reciprocal? our relationship with china is one of the biggest reasons for the multitrillion-dollar hole in the bucket for investment here at home. it's the reason that's stopping reckless spending in washington is just a piece of a much larger puzzle. and it's the reason ignoring piles of u.s. dollars leaving our country to china and the banking system while fo

and china what is the u.s. doing at the moment queen q e two it's not the queen elizabeth cohen is it that the easing that is exporting their dad all over the world cause inflation inside the u.s. it's that it's going to be another bubble it's not going to so the us problems and you have a value you want in china so these two hold the financial system all over the world by the balls and it's them they have to decide something in fact the rest of the world they're just mirror spectators up they'll say ok john let's go to follow up on what pepe has to say so the g twenty is going to mean soln are going to watch the americans and the chinese throw mud at each other and that would be the very least of the problems. yes the currency issue which he's talking about is certainly a major one but the fact that they've expanded from the g eight to the g. twenty the g. twenty represents about two thirds of the world's population about ninety percent of the g.d.p. and about twenty percent of the trade so it is expanded it's

we'll focus on china. specifically on the military you around the recent investments that they've been make together in crease the military power. we'll talk about that coming up in the last hour of today's "washington journal". back to the question about whether or not there should be change in-house and senate leadership. norman is a democrat go. ahead. caller: hi. thanks for speaking to me. i'm a lib c liberal democrat. i think there should be no more earmarks but i think nancy pelosi should retire. she's way too far to the right. sold us out on the health care bill. environment and she hasn't wiped out for human rights in torture in guantanamo. she's really been a let down and with, rivalling leadership with her and president barack obama, the democrats are losing they're base. the democrats really need to stand for something. i'm a democrat all my life but this election i worked for a green for governor and the campaign of green for governor and socialist for congress and the campaign of an independen

china got some criticism as well. i was more that the united states and president obama had to defend the action of the feds. saying no, no it is not an intentional weak dollar policy. as a matter of fact maybe the dollar will respond. it was very interesting they all ganged up on united states rather than looking at china. china, second largest economy in the worm now currency many people think is really out of whack. nobody really knows if you have a true float where its going obviously would it go up. how far up? how long will it stay up? you read in the papers today inflation china is over 4%. they may have to hike interest rates a little bit to have free float what would that do to currency? probably make it stronger under normal conditions. they have an out they peg tight united states -- they peg it to the united states currency. they should have a float. i'm very much opposed to legislation, that is going through if they don't have a certain valuation, that 20% tariffs are going to be imposed on various import

and the more china celebrates the ten percent plus rise in its economic growth the more we see china vilified it's very important to see more progress by the major emerging economies with policymakers accusing the country of manipulating its currency to boost exports at the expense of the u.s. recovery and demanding they do something to change that every just look at the issue from that perspective you may think china is to blame here but you i think china have a very dynamic interconnected relationship and when you look at what the u.s. is doing because a lot less clear who is the bad guy but it's two to tango there are two sides of that core and the only way to get out of this imbalance is to coordinate a process that is mutually beneficial both. an imbalance that has china the largest creditor nation on the globe. funding the u.s. the largest debtor nation in the history of the world asking for the dollar to go down twenty percent against the chinese currency the yuan essentially as china who holds two point six trillion us dollars in its reserves to just lose a half trillion doll

. >>> and forward to china. a preview of our big trip. >>> and good evening, once again, from phoenix, arizona. we have spent the day here talking to students about the importance of journalism in america, and we begin tonight with a big american headline. a thunder bolt about the future of the u.s. postal service, and whether it can survive. today, a tidal wave of loss, $8.5 billion, even after all those layoffs. so, what happens now? will service be cut back right away? linsey davis has been looking for answers. linsey? >> reporter: diane, the post office is the biggest civilian employer after walmart, but apparently it's not too big to fail. the post office says without congressional action, it would be bankrupt by the end of next year. even after cutting more than 100,000 jobs, the postal service says it could lose $238 billion in the next ten years. >> we need changes to the way we operate. >> reporter: the problem, people just haven't sending letters. after all, you can send an e-mail and get a response be

what japan wants to be less dependent on china. -- why japan wants to be less dependent on china. the orthodox church in georgia is growing at an amazing rate. so much so there is barely any space for new churches as the building's overflow with new members. one monk has decided to seek extra solitude on a rocky outcrop, which will soon be completely cut off from civilization. >> what does it take for a 55- year-old man to seek isolation on top of a rocket -- rock? to remove himself from everyday life? for this man, it was not his choice but to god -- but god's. he has been rebuilding this monastery, but he is not the first one to set foot on this rock. his predecessor died of here sheltering from the elements 500 years ago. his sacred bones are still treasured. "i want to stay here, close " he says. "i'm still waiting for the blessing from the head of the orthodox church. he told me to wait, but recently, the patriarch came here and blessed it. i do not think he is against the idea of me staying here anymore ." if he is allowed to stay here, he will be emulating the monks of gree

he says it was caused when computer routers in china belonging to china telecom began signaling to other computer routers on the internet that they could provide the quickest path between different computers. >> they, all of a sudden, began announcing the fact that they were an optimal path to about 15% of the destinations on the internet.çç that, in fact, they were a way to get to a large number of destinations on the internet, when, in fact, they were not. we've never seen that on this scale before, ever. >> suarez: joffe is senior vice- president and senior technologist at neustar, a global technology and communications company. he's also a computer security expert who consults for the u.s. government and industry. >> in the grand scheme of things, this was a seminal event. so this wasn't a minor security event, this wasn't a hiccup. 99.9% of the world didn't even think this could be done. engineers didn't even think about it. every one of them is now thinking about it day and night, what the effects would be on their networks and how they might use it, depending on whether they w

twenty to be a forum to continue to pressure china and to have you know more unified front against china asian currencies current account surplus countries. from from the rest of the world and what it actually ended up turning into was that the u.s. had to go in there. the tables were turned that the u.s. actually had to explain its own behavior to a whole host of countries and the chinese i think were pretty adept at turning this around and there were a lot of other countries who didn't mind actually turning the tables a little bit on the us and saying ok well why don't you guys explain what you're dealing with with the fed before and you're kind of see before you start kind of throwing stones at us. russians finance minister agrees that china should become more flexible of its monetary policy but says the changes shouldn't be rushed if you're interested to hear more about that we'll bring you a legacy could interview in about an hour's time and it's also online on our home page or t. dot com but here's a little taste of what he had to say. to good to keep well speaking of china it real

china operations are the day.

they're making them, in china. we're rebuilding china. >> if you were president, what would be different? >> i do things very strongly. i would tax china. they manipulate the currency. by manipulating the currency, it's very hard to compete with china. >> you tax china, they stop financing our debt, our economy collapses. >> we tax china, we will pay off the debt quickly. >> why would they go for it? >> it's us. we have the cards. we're the ones that are spending up a of this money in china. >> don't they have the cards because they're our bankers? >> i don't think so at all. i have had bankers over the years. i don't think bankers have the cards. >> how serious is this? you set up an exploratory committee in 1999 and decided not to run. >> in 1999, a group of people wanted me to run. i never wanted to run. and i wasn't a big believer in the independent party. i was lucky that i didn't do it. >> walk us through the whole process. what are the triggers that would get you into this race? >> would i rather be in the r

isn't talking about that's what they're talking about in china because when i go to china and talk to the officials there so we talk about is the u.s. hypocritical in its dealings with china when it doesn't even talk about quantitative easing well it's printing trillions of dollars the u.s. is benefited from what is in effect a double standard because of the dollar standard the u.s. debt is other people's asset when you. when you spend more than you. get than other countries end up with the dollars the united states is the only country which has run a balance of payments deficit and has not raised its interest rate has and has not raised its taxes now this is something that you also dealt with in your book super imperialism that the u.s. has been able to get other countries to finance its debt to centrally finance its wars that fifty percent of its discretionary budget is devoted to defense how has the u.s. maintained it happened largely by inertia after world war two the united states had most of the world's gold and by the one nine hundred fifty the united states said eighty percent

. >> but you can visit china >> yes, i have. and do so probably once a year. >> what are the goals of china's space program? >> china's space program, first and foremost, is aimed at support national economic development, providing farmers with agricultural weather predictions, providing railway ministry with maps of where to build things but the chinese are also interested in maintaining access to space in the event of conflict. >> how does it campaign to the united states from the point of view of military defense? during -- i'm told during the gulf war one, and the second gulf war, and during the kosovo, when we were in that theater, that our communications was 80% -- 80% dependant on satellites. and the russians, the russian about 70%t, similar on satellites. >> uh-huh. >> does this -- of course that means a great deal to a military planner. >> yes. >> the integration of the military grid with this unusual capability and would have been very helpful in the instance of katrina, by the way. >> uh-huh, uh-huh. >> and people are