the american people don't benefit and the economy doesn't benefit. and that's why the president has taken the position that he's taken. >> a republican coming to the white house this afternoon. you've said the administration isn't going to negotiate over the debt ceiling or the government shutdown. but republicans now say think have made this suggestion, offer of a short-term increase in the debt limit and if the president rejects that offer, we're back to square one. what do you expect from today's meeting if not some discussion -- >> the president has always said he's willing to talk about anything. what he will not do is pay a ransom, negotiate over their demands in exchange for congress doing its fundamental job, paying our bills, funding our government. and, yes, he looks forward to having a subset of house republicans here. our view, the reason we invited all members of congress to these meetings, it's often the case that he or others meet with leaders of the house and then find out that the decisions are being driven by other members of the ho

but the american economy continues to be a powerful force throughout the world. prudence demands that it be kept under some control. how, and how much control, continues to be the topic of lively debate. for economics usa, this is david schoumacher. captioning is made possible by the annenberg/cpb project captioning performed by the national captioning institute, inc. captions copyright 1986 educational film center nenberg media ♪ for information about this and other annenberg media programs call 1-800-learner and visit us at www.learner.org.

and the guy in the street know the to risk the american economy over this issue is ridiculous the problem is people can miscalculate because remember seventy two percent of americans are against doing this but fifty seven percent of the people who say they're with the tea party are for what's going on so if you're a tea party supporter and you look at your local numbers you say keep going which is of course a disaster for the country and indeed the worlds. much more government must now shut down until congress funds it again. and just four years time switzerland could become a big fan of social security and that time ever want in the country could be guaranteed a basic income to live on. with rum play video agency to follow the story beat on to reports now from. what we're seeing here in switzerland is a completely revolutionary outlook towards the social welfare system what's being proposed by a group of swiss citizens is a guaranteed minimum income now what that would mean is that every citizen whether working in whichever job or not at all would receive a set amount of money now in ord

head of the american economy and the american family, so we're ready to have that conversation. on all those different ideas. to see if we can reach commonsense solutions and the senate seems to be trying to move in that direction. we have yet to see what the senate would propose but what we're hearing our republican colleagues in the house are proposing flies not only in the face of what senate republicans are preparing to move forward with, with senate democrats, but it flies in the face of what the american people want and what our american economy needs. >> on the other side, reid and mcconnel are negotiating some type of deal, there's not been any sort of similar negotiations on the house side with speaker boehner and leader elosi. would people put forth those kinds of discussions on this side of the capitol? >> i think the traditions of the house and senate are somewhat different but i know there have been discussions with the -- by the speaker with the leader as well. it's not completely as you would indicate shut down in that rment. at the end of the day, mr. boehner has

us not jeopardize the american economy. it.s not heard let's not further hurt american families that have been put out of work as result of the government shutdown. i think most of us are here to let us exercise our right is what presented as for the people to vote to reopen our government and to not put our economy at this reckless approach that house republicans thing his puttingo take any number of american families in jeopardy. i think it has been made very economists, republican leaders, by regular families. two of our interest rates to rise dramatically. it would not only harm the economic recovery that we have seen were the last 3.5 years more than 7.5 million jobs were created. it would put at risk the family that just sent the child to school to pay for that education was student loans. would put at risk payment of social security benefits to those who are now retired and earned those benefits. this is 18 years old. a savings bond. a savings bond that my daughter olivia received when she was born. it was a gift for

virginia tochmond, see the impact it is having on families, and the american economy. a mother in her mid-30's with another daughter on her way. in threeer them cities. we have 25 employees. responsibilities running the company, a lot of the responsibility falls to her husband scott. >> i am the one arranging childcare or babysitting so she can be where she needs to be. adjustment took some time. >> it was not easy to get used to. >> i do think it changes the relationship when the woman is

who are dependent on the american economy? >> i think if i had to pinpoint the biggest danger in all of this, it goes as follows, for the last half of century, corporations, governments, and wealthy people around the world have parked significant portions of their wealth in the united states, whether it's a bank account in new york or real estate on 5th avenue, they did that because they believed the united states was a secure, stable, safe place relative to the rest of the world to park their wealth. and it has had an enormous impact on the well-being of the american economy. every one of those people looks at the united states in the worse economic crisis since the great depression with a government incapable of coping with that problem, and now unable to function even in the normal ways, they are all going to reconsider what they thought the united states was, and if we were helped on the way up, we are going to be in serious trouble if that money and wealth begins to be pulled out, because they, like the american people ar

reserve bank and the american economy as one giant hedge fund and he's absolutely correct the way that wall street washington and these large funds approach america is as a trade that is backed by one hundred twenty or one hundred thirty trillion dollars worth of debt and all that debt is traded every single day and the whole initiative here is why hedge funds work to try to squeak out profits and they don't really care who they hurt in the process remember america is run by what i call love is financial if you hottest who are basically suicide bankers and warren buffett of course is one of these suicide bankers in america from the outside of course looks like they're trying to commit financial suicide but that's what a that's what a financial geodes does or a suicide banker they blow themselves up for their cause in this case its market fundamentalism a belief in the profit not the profit but the lines the other the economy improving of there as well max so all we to believe that the economic indicators all suggest in the u.s. economy is on the yelp. well you look at a deal recently b

virginia tochmond, see the impact it is having on families, and the american economy. a mother in her mid-30's with another daughter on her way. in threeer them cities. we have 25 employees. responsibilities running the company, a lot of the responsibility falls to her husband scott. >> i am the one arranging childcare or babysitting so she can be where she needs to be. adjustment took some time. >> it was not easy to get used to. >> i do think it changes the relationship when the woman is earning more than the man. >> this is an example of a um is theeality that m breadwinner. in 1960 only about 11% of women were the primary providers. a recent poll put it at 40%, and all time high. she owns a small nursing business and works in number of jobs. >> there are always bills, always financial obligations. i am attached to my kids. it can become overwhelming, but i don't let it get the best of me. >> somehow she manages to produce a reality tv show on a local station. message, single mothers can make it on their own. >> these social shifts mean teaching kids the days of the

in the american economy from now on. i think trust is perhaps too strong a word they can certainly hope that the american economy recovers and we think that the u.s. is the only country that is going to get close to something like three percent growth next year so i think the fact that we can now put this behind is is a positive we can now look to is this bending business investment an improvement in consumer confidence which over time ought to help support the value of the u.s. dollar because we have to remember always that currency is a relative price you can't sell one currency without buying another currency is always relative prices and when you look around the world right now it's difficult for investors to decide what they would prefer rather than the u.s. dollar we can criticize the dollar on many many fronts and we can criticize america we could spend all day criticizing america but the fact is that it's difficult to see in the short term what the alternatives to the u.s. dollar actually are there is no doubt th

behalf of the american people and economy. he believe it is possible. and believes that a lot we're not there yet there not an agreement. there are indications in the last 24 hours that willingnd to explore the possibility. >> reporter: on a totally different subject [inaudible] by not giving the nobel peace prize -- ?awbl? >> let me say, first, that we'll be putting out a statement. i wanted to say that the president obama congratulates the organization for the prohibition of chemical weapons. the opc -- which reenforce the international community deployment ncial sprue birks again the use of chemical weapon. one of the president's highest priority is to prevent the proliferation or use of weapons of mass destruction. this award honors those who make it their life's work to advance this vital goal. since the establishment 16 years ago they stood at the forefront at the international community effort to verify mr. wilson eliminate some of the world's most dangerous weapon. it reenforces the trust and confidence they placed in

obviously the american dollar is the largest quantity of currency in the world the american economy still remains the largest in the world. the problem is the reality that the americans can't be trusted anymore whereas over the last fifty years or so the americans have been predictable they have kept to their laws they have. paid back all of their obligations this time around in reality america did default it defaulted on its obligations to its own people it defaulted on obligations it had made in law when it set up laws and. certain programs that needed to be funded seaquest ration actually didn't fund those laws so there was a default the problem for the rest of the world is that we have to create other structures we have to create them we can't look for them we have to train them and that's that's the that's the problem for today and what do you make of what richard just said america did not default it hasn't defaulted and i believe that even if it did not i'm sorry aguilar. if you. but a default and pins money which is money it's in it's a promise it's a promise that i will exchange t

number one it's in the worst form, and number two, the american economy rmped up to produce armorment for the war, and they never got in anymore. we went in war in 1917 using mostly real weapons, for example, had tanks, hand grenades and so forth were bought from the british, but we had, at that point, what, by 1918, the largest arian norment in the world. largely after the end of the war, the government started producing contracts. and it's just like -- without warning. thousands of workers were -- a state like connecticut felt it because they had so many of these. at the very least, we need a tax credit so we can carry these in case they were ever needed again. in almost every case, remmington arms to you name it, tore down the fake tries, gutted them because they didn't want to carry the expense of them. the result was by the time you get to 1939 we have no industry so when the world breaks down in europe, we're in pitiful shape. the u.s. army is something like 28th in the world. it appearses they could have a battle to a group of boy scouts and nots much more. all of this coupled

economy, and harm to the american people. it is a complicated piece of turness within unfortunate attached to it. it is about authorizing the government to pay the bills that congress has incurred. not paying those bills, that would make us a deadbeat nation. that is something that i do not think any american reasonably would find acceptable. >> i understand that. you said the president has a number of concerns with the proposal from the house republicans. that sounds a negotiating. can we use that word? >> you can use any word you want to describe it. that is the beauty of the free press. -- doesthe call will it, they jay carney phone call? >> saying that we believe that conversations have been constructive, and the proposal that republicans from the house of put forward represents in part progress, it reflects where we are in this. that doesn't -- >> you do not want to the use that word. >> when it comes to raising the debt ceiling. >> back-and-forth is negotiating. >> we're listening and talking. [laughter] >> the presiden

the american economy and its hasrnational standing emerged on us. >> the american people are completely fed up with washington. at a moment when our economic recovery demands more jobs, more momentum, we've not yet another self-inflicted crisis that set our economy back. and for what? >> at least the new bipartisan budget committee met today with the aim of finding common ground on taxes and spending. good luck with that. >> i want to have a budget agreement that works for the country. i want to have a budget agreement that gets this that and deficit under control, that does right by future generations, and helps us grow the economy. >> washington is badly broken. thechecks and balances for u.s. system now look like vetoes and roadblocks. it sometimes set of america that the country is always going to hell but it never quite get there -- it never quite gets there. perhaps this deal is proof of that. there's another possibility that in just a few months time, we might go through this whole charade again. >> please, no. let's hope that we don't. where does the republican party go from her

american people and to the american economy. there are costs that have already been incurred because of shutdown, because of the flir take with default -- flirtation with default and they're not retrievable. o we ought to instead focus on making progress instead of creating all this unnecessary conflict. but whether or not, you know, this experience has -- will lead to different choices in the future is really a question for members of congress. >> on the last part, ted cruz, i know you guys don't like to comment on him directly. but him and whoever supports him, have they been -- do you think they've driven people apart? do you think there's any room for compromise you talked about moving forward from this? > again, completely legitimate questions. i think these are -- these are questions that can be best answered by republicans in both houses. the -- what we know is that the strategy that was pursued shut the government down, caused harm to the economy and to the american people. kept a lot of people out of work, has kept peop

and the guy in the street no the to risk the american economy over this issue is ridiculous the problem is people can miscalculate because remember seventy two percent of americans are against doing this but fifty seven percent of the people who say they're with the tea party are for what's going on so if you're a tea party supporter and you look at your local numbers you say keep going which is of course a disaster for the country and indeed the world. much of our government must now. shut down until congress funds of ago. you know make a decision to put cia contract of sand whistleblower edward snowden on the final list of nominees for the european human rights prize has received plaudits from people around the wild his form of also however is not among them and says he dreams of a somewhat different fate for snowden on his marina partner reports. well speaking at a washington post panel discussion on a cyber security former n.s.a. director general michael hayden joked about putting edward snowden on a list that has very little to do with human rights or honorable recognition america'

the collapse of the american economy sending shock waves across the globe ending with a financial crisis and recession worse than the two thousand and eight meltdown of the u.s. government shutdown is certainly taking its toll on the president's plans as well barack obama forced to cancel a trip to asia and missed two summits at the federal stop which was placed hundreds of thousands of workers on unpaid leave and it's costing the american economy at least three hundred million dollars every day it's in business and consumer confidence kenneth that levin from the city university of new york he says the crisis has actually been snowballing for years. between crisis there's a new normal in the economy and seems to be a new normal in our political system this isn't the first time that congress hasn't passed a budget by october first which was the deadline it's the twelve consecutive year that they failed to meet the deadline the only reason there hasn't been a shutdown for the last twelve years there's always been these temporary resolutions that the bill for a six week temporary resolution

of the american economy is sending shock waves across the globe ending with a financial crisis and recession worse than the two thousand and eight meltdown the u.s. government shutdown is taking its toll on the president's plans as well with barack obama forced a counsellor trip to asia and mr summits the federal stoppage has placed hundreds of thousands of y. of his own on paid leave it's costing the american economy at least three hundred million dollars every day business and consumer confidence that kindness leaving from the city university says the crisis. yeah. right this is a new normal in the economy and seems to be a new normal in our political system this isn't the first time that congress hasn't passed a budget by october first which was the deadline the twelve consecutive year that they failed to meet the deadline the only reason there hasn't been a shutdown for the last twelve years there's always been this temporary resolution that's the bill for a six week temporary resolution that the house speaker of the house john boehner is refusing to put before congress for a vote right

or for there are delays and reaching the compromise would mean for the american economy so this is the case for the u.s. economy this is the case for the global economy as well as for russia as we've seen before with similar cases in two thousand and eleven. certainly the main transmission mechanism is through will prices so pressure on commodities pressure on oil prices would signify essentially pressure on russia's economy and financial markets and then the other channel of course is capital outflows those may intensify further delays in reaching the compromise in the us to a place washington's position as the global economic and political elite are threatened this is certainly something that undermines. the the role of the u.s. and leading the world economy out of its current predicament and going forward of course the hope is that some sort of a working arrangement is worked out in the u.s. so that cases like that in the future are avoided well let's get more perspective now from robert she's chair of the european union think tank of the bruges group robert so if it did happen if t

collapse of the american economy sending shock waves across the world are ending with a financial crisis and recession worse than the two thousand and eight meltdown. the u.s. government shutdown is certainly taking its toll on the president's plans as well with barack obama forced to cancel a trip to asia and missed two summits the federal stop which was placed hundreds of thousands of workers on unpaid leave and it's costing the american economy at least three hundred million dollars every day i think business and consumer confidence that live in from the city university of new york he says the crisis has been snowballing for years. now between crisis is the new normal in the economy and seems to be a new normal in our political system this isn't the first time that congress hasn't passed a budget by october first which was the deadline it's the twelve consecutive year that they failed to meet the deadline the only reason there hasn't been a shutdown for the last twelve years there's always been these temporary resolutions that's the bill for a six week temporary resolution that the ho

american people and the american economy. i think he believes that that was the right position to take and continues to be the right position to take and he is very optimistic or hopeful that the agreement announced today can be moved through cook res so that we can get beyond these crises. i think it's fair to say as the president has said that what happened in 2011 was you know, created the precedent here that that was so important to avoid in 2013 and that the willingness at the time to try to to link the debt ceiling issue absolutely need for congress to ensure that america pays its bills around policy demands by the republicans did real harm. those i think are lessons we all learned. there's no question as we debated in the past, in previous years, you know, legislation to increase the debt ceiling has been attached to different bills and discussed within the context of budget and other policy negotiations but the concrete willingness toe default and threaten default is not something we had ever seen until 2011 and the e

>> it certainly would, piers, because the global economy, not just the american economy, depends on the full faith and credit of the united states government. on the treasury bill, the dollar, all would be brought into question if the debt ceiling is not lifted. and remember, this is not a debt ceiling that is lifted to pay more debts. this is to pay off and to pay the bills we already have that congress and the president have already incurred. so it would be the height of irresponsibility not to lift that debt ceiling. >> right, i heard warren buffet say in the end there will be extreme stupidity. but he said there is a really why you can't go with the debt ceiling or use it for political gain, let's watch what he said. >> it makes absolutely no sense to let it be used as a lever for other things. i mean, if you want to change the laws on abortion, immigration, you name it, tax laws, whatever, let that be a piece of legislation that people hammer out. but to tie it to something, well you break the promises of the united states government to people all over the world as well as to the u

of the american economy sending shock waves across the globe ending with a financial crisis and recession worse than the two thousand and eight recession but the u.s. government shutdown is taking its toll on the president's plans as well with barack obama forced to cancel a trip to asia and missed two summits at the federal stop which was placed hundreds of thousands of workers on paid leave it's costing the american economy at least three hundred million dollars every day hitting both business and consumer confidence kenneth livin from the city university of new york he says the crisis has actually been snowballing for years. between crisis there's a new normal in the economy and seems to be a new normal in our political system this isn't the first time that congress hasn't passed a budget by october first which was the deadline it's the twelve consecutive year that they failed to meet the deadline the only reason there hasn't been a shutdown for the last twelve years there's always been these temporary resolutions that's the bill for a six week temporary resolution that the house speak

. >> we hear some members pushed for the shutdown say they were doing it to save the american economy. but nothing has done more to undermine our -- [ technical difficulties ] -- >> hurt the american economy of course it has also hurt the deficit which is an irony of ironies, since the very members that were talking about their concerns contributed to the show down. >> and now that the government has reopened, and this threat to our economy is removed, all of us need to stop focusing on the lobbyists, and bloggers, and talking heads on radio, and focus on what the public sent us here to do. >> the participate was also talking about the legislative priorities that are come ing up. and he talked about immigration reform and the farm bill, which is really languishing, so the president said time to get back to work. dell? >> and libby the polls seem to indicate the american public is fed up with both the house and congress and not too happy about the white house either. are democrats avoiding gloating? >> they are for the most part. and any that are trying to get a positive spin on this i

before then, the american economy was showing signs of revival. that's what i talked to lloyd blankfein about when i sat down with him recently at the clinton global initiatives meeting here in new york. listen it. lloyd, when you look at the u.s. political system, it seems deadlocked, paralyzed, use whatever phrase one wants. the american economy seems to be coming back in a broad way. >> because it's pretty resilient. listen, the american economy, you're right, it's doing well and there's a lot of tail winds, energy, you can tick through the amount of tail winds that are happening. ultimately, it's the culture of the united states. we all had the same dealing with the consequences of the credit bubble. with the united states, we recapitalize the bank. nobody likes -- by the way, the aftermath was also hard. it got done. restructu restructured. accepted a higher unemployment rate. didn't make people keep the same employment as often happens in europe when you have that different balance between social interests and economic interests. did all of

the american economy. it is china which holds more than $1 trillion of u.s. debt that's growing increasingly concerned and more vocal over the american debt ceiling crisis. for his part, kerry attempted to quell those fears and apologized to american embassy workers in bali who are feeling the squeeze of the government shutdown. and coming up, the president spoke this afternoon. up next, speaker john boehner. we'll bring that to you live, straight ahead. [ male announcer ] this is claira. to prove to you that aleve is the better choice for her, she's agreed to give it up. that's today? [ male announcer ] we'll be with her all day to see how it goes. [ claira ] after the deliveries, i was okay. now the ciabatta is done and the pain is starting again. more pills? seriously? seriously. [ groans ] all these stops to take more pills can be a pain. can i get my aleve back? ♪ for my pain, i want my aleve. [ male announcer ] look for the easy-open red arthritis cap. >>> we're awaiting a statement from house spea

of the american economy sending shock waves across the globe and doing with the financial crisis and recession was the two thousand and eight meltdown. the u.s. government shutdown is taking its toll on the president's plans as well was barack obama forced to cancel a trip to asia and mr summits the federal stoppage as place hundreds of thousands of workers on paid leave is costing the american economy at least three hundred million dollars every day hitting businesses and consumer confidence qantas leaving from the city university of new york says the crisis has been a bonding. between crisis there's a new normal in the economy and seems to be a new normal in our political system this isn't the first time that congress hasn't passed a budget by october first which was the deadline the twelve consecutive year that they failed to meet the deadline the only reason there hasn't been a shutdown for the last twelve years there's always been these temporary resolutions that the bill for a six week temporary resolution that the house speaker of the house john boehner is refusing to put befo

this is not to invent the. i think again, the fundamentals of the american economy or improving. you know, this program was at its diamond of risks to the economy seemed larger. it draws attention to something, but i don't think it is behind the american economy's improvement. lou: we will have to conclude there. i will give you the final word on it. it is interesting to see right now as to where we are in this economy suggesting to me at least a week, perhaps, need a little more evidence. i'm not sure how much we can rely on government reports of their shut down, but there we are. good to have you with us. please take a second to visit our social sites. find links to our facebook page. e-mail me. follow me on twitter. go to foxbusiness.com tonight for the latest on the government shut down and how government to the how the government shut down might affect the economy. up next, accused of some of benghazi. another major network cancels a hillary clinton project. they're called projects in the business. dear, right back. ♪ lou: breaking news following up a story we first brough

and how showdown will play with the american economy. that story this morning from the capitol. hello, rich. >> hello. it's played foo the american economy probably already affected your 401(k). take a look. u.s. markets down across the board closing last evening. the dow jones falling 128 points. nasdaq, s and p 10 points, all mostly, investors say because of fears of a shut down. the budget office says the affect does get worst longer you get into it. hundreds of thousands of federal workers are removed from the u.s. economy with millions perhaps billions in contract dollars, one investor says he's concerned about a prolonged fight. >> if this takes a long time gets into the debt limit fight which i happen to think is coming and that one is a different political construction, and more power in the house among republicans and caucus, this then gets pro longed we lose gdp at the rate of two tenths at 1% a month. >> that loss is something when looking back at 1995 and 1996 shut downs last shut down here you did have a loss in gdp final quarter of 95 and first quarter of 1996 but

american economy would send shock waves across the world ending with a financial crisis and recession worse than the two thousand and eight melt well the u.s. government shutdown is taking its toll on the president's plans as well with barack obama forced to cancel a trip to asia and missed two summits. the federal stoppages place hundreds of thousands of workers on unpaid leave and it's costing the american economy at least three hundred million dollars every day and one of the not essential services affected is the national space agency which is just celebrating its fiftieth anniversary george abbey he's a fellow in space policy at the baker institute of rice university he used to oversee the international space station for nasa says there will be consequences of this shutdown down the line. there are missions that are coming up in say four or five or six months fairly critical motions or missions that robotic flights are going to the planets they have launch windows that have to be maintained and if the workers are that working and being done and so there is going to be an effect o

and that's one of the tragedies of these past two weeks because before then the american economy was really showing impressive signs of revival. those positive signs are what i talked to goldman sachs' chairman and ceo lloyd blankfein about when he sat down with him recently at the clinton global initiatives annual meeting here in new york. listen in. lloyd, when you look at the u.s. political system, it seems deadlocked, paralyzed, use whatever phrase one wants, but the american economy seems to be coming back in a pretty broad way. >> because it's pretty resilient. and, listen, the american economy, you're right, it's going well and there's a lot of tailwinds, energy, you could tick through the amount of tailwinds that are happening, but i think ultimately it's the culture of the united states. we all have the same noise, the same dealing with the consequences of the credit bubble, but in the united states we recapitalized the bank. it was painful. people didn't like the way it was done. by the way, and the aftermath was also hard. but it got done. restructured, accepted a higher u

and the guy in the street know the to risk the american economy over this issue is ridiculous the problem is people can miscalculate because remember seventy two percent of americans are against doing this but fifty seven percent of the people who say they're with the tea party are for what's going on so if you're a tea party supporter and you look at your local numbers you say keep going which is of course a disaster for the country and indeed the world is. watching. our government must now shutdown until congress funds it again. and just for years times woodsmen could become a big can of social security and that time ever one of the country could be guaranteed a basic income to live on he teamed up with roughly beazer agency to follow the story its own of are now from bad. what we're seeing here in switzerland is a completely revolutionary outlook towards the social welfare system what's being proposed by a group of swiss citizens is a guaranteed minimum income now what that would mean is that every citizen whether working in which every job all not at all would receive a set amount of

>> it certainly would, piers, because the global economy, not just the american economy, depends on the full faith and credit of the united states government. on the treasury bill, the dollar, all would be brought into question if the debt ceiling is not lifted. and remember, this is not a debt ceiling that is lifted to pay more debts. this is to pay off and to pay the bills we already have that congress and the president have already incurred. so it would be the height of irresponsibility not to lift that debt ceiling. >> right, i heard warren buffet say in the end there will be extreme stupidity. but he said there is a really why you can't go with the debt ceiling or use it for political gain, let's watch what he said. >> it makes absolutely no sense to let it be used as a lever for other things. i mean, if you want to change the laws on abortion, immigration, you name it, tax laws, whatever, let that be a piece of hammer out. but to tie it to something, well you break the promises of the united states government to people all over the world as well as to the u.s. citizens just makes

this could fundamentally marge list america 234 the world economy if the american economy is treated this way. >> we heard the same thing about sequester. >> let me bring in david walker head of the government accountability office and ceo of comeback america initiative. how bad would be the? what would it mean, going over the debt? >> only god knows and god's not telling us. i will tell you this, it's way too much finger pointing and way too much hyping. article 4 of the 14th amendment of the constitution makes it clear that bondholders of u.s. debt are guaranteed. they're going to get paid. the question is who is not going to get paid on time and what kinds of penalties and interest will we have to pay because of the prompt payment act. i think the senate is going to reach a deal but is it going to be acceptable to the house. >> there are a number of how republicans who are running on defunding or delaying obama care and that's not going to happen. >> i think it was down right stupid for the conservatives in the house to be able to make obama care part of the cr. that was downright

everyone, from main street to wall street, knows that the weight of the american economy rests on the shoulders of our elected officials, and we're asking them to put the common good of our country before political partisanship and self-interest. how deeply has our nation sunk into the trenches of partisan politics that not only has the government of the strongest democracy in the world been shut down but is now facing the threat of an unprecedented default which will jeopardize our standing as a global economic leader? for the past years, our congress has been plagued by divisive politics that have reversed the recovery of our economy. this environment of brinksmanship has reached its boiling point, and the current threats of default are already resonating and creating signs of uncertainty in national and international markets. consumer confidence is now at an all year low while interest rates continue to climb and the ongoing gridlock is estimated to cost taxpayers almost $19 billion in extra interest. even foreign debt holders are demanding more collateral due to the uncertainty on

and the guy in the street no the to risk the american economy over this issue is ridiculous the problem is people can miscalculate because remember seventy two percent of americans are against doing this but fifty seven percent of the people who say they're with the. party are for what's going on so if you're a tea party supporter and you look at your local numbers you say keep going which is of course a disaster for the country and indeed the world the crisis has been now really voided multiple times in the possible so what would prevent it from happening again well i think that again human error i mean you know we're one hundred years out from world war i want to nobody can tell you why that war started exactly human beings make mistakes and the closer it gets to the deadline the more likely a mistake could be made the good news coming out of washington today is that those around john boehner speaker of the house are already saying if it comes to a boehner will go ahead and put something on the floor to avoid a default with democratic support and about ten to fifteen republicans this

american people and the american economy. i think he believes that that was the right position to take and continues to be the right position to take and he is very optimistic or hopeful that the agreement announced today can be moved through cook res so that we can get beyond these crises. i think it's fair to say as the president has said that what happened in 2011 was you know, created the precedent here that that was so importanto avoid in 2013 and that the willingness at the time to try to to link the debt ceiling issue absolutely need for congress to ensure that america pays its bills around policy demands by the republicans did real harm. those i think are lessons we all learned. there's no question as we debated in the past, in previous years, you know, legislation to increase the debt ceiling has been attached to different bills and discussed within the context of budget and other policy negotiations but the concrete willingness toe default and threaten default is not something we had ever seen until 2011 and the eco

. >> some members pushed for the shutdown say they were doing it to save the american economy. but nothing has done more to undermine our economy the past three years that the kind of tactics that create these manufactured crisis. >> while members of the gop spent their final days in battle attempting to kneecap staffers in their own congressional offices, this morning president obama did the very opposite. >> i've got a simple message for all the dedicated and patriotic workers who either worked without pay or forced off the job without pay these past few weeks, including most of my

adventures to destroy the american economy. they exact a horrible toll on the country. consumer confidence has been hurt. the shutdown has messed up the recovery. yet, we know in the end that he's going to go to the guys and say, look, i did everything i could to indulge your lunatic fantasies, but i have to go along with the responsible people at the end of the day. >> i also think we can't let boehner sort of -- i mean, i don't know if we're letting him off the hook, but it is his problem that the tea party has been indulged this far. he was the one that kept promising christmas day just one more fight away. i mean, therefore, is responsible for this. >> yes, yes. it is a failure of leadership. the speaker is supposed to lead the caucus. the caucus is not supposed to lead the speaker. to follow up on frank's point, we've been through this at least three times. the grand bargain in 2011, he couldn't deliver. plan b, his own plan b, he couldn't deliver. and now what happened yesterday, he couldn't deliver. and that's why every

doing harm to the economy and american people. that has been our position all along. and reiterating those points. it was to make clear that we see progress in the senate. we see in the senate process, the kind of bipartisan effort is the path to resolving these kinds of issues when it comes to these simple response bits that congress maintains, opening the government, funding it, making sure that congress pays its bills. and we hope that all of congress takes the appropriate action to ensure that they do not continue to inflict harm on the american economy. >> since you have been talking boehner, a n to senior administration official did not proactively raise the medical device issue is astoundingly dishonest and it was a senior administration fficial who proposed it. >> i have answered the question three times. there have been questions about that because republicans have been putting it on the table. what we have always said we have never ever proposed or agreed to pay ransom in exchange for opening the government. and the prop

says a collapse of the american economy would send shock waves across the globe ending with a financial crisis and recession worse than the two thousand and eight. us government shutdown is taking its toll on the president's plans as well with barack obama forced to cancel a trip to asia and miss two summits the federal stoppage has placed hundreds of thousands of workers on unpaid leave and it's costing the american economy at least three hundred billion dollars every day and one of the non essential services affected is the national space agency which has just celebrated its fiftieth anniversary joined live by george be used to oversee the international space station for nasa. tell us how is this shutdown affecting nasa as operations at the moment. well i think right at the moment those individuals that are supporting the international space station are continuing to work that control center in houston the johnson space center still is online and it is manned by a nasa flight controllers so that work is still going on and the crews that are going to be flying up to this race station i

economy, only do harm to the american people. apparently, according to a lot of republican commentators, does a lot of harm to the republican party. we need to get beyond this for the sake of the country. >> some of the big issues were talking about -- nsa, another revelation today that they are ,ollecting e-mail contact lists not just of foreigners, but of americans. how do you justify that? >> as you know, i'm not in a position to discuss specific tools or processes, but as you know, the national security agency is developing intelligence about the valid foreign intelligence targets such as terrorists, he went -- human traffickers, and drug smugglers. they are not interested in personal information about ordinary americans. they operate in accordance with rules either approved by the attorney general or the foreign intelligence surveillance court, designed to minimize the acquisition, use, and dissemination of any such information. here is topurpose discover and develop intelligence about foreign intelligence targets. that is t